Home Login RADIO ONLINE RSS Facebook
Advertisement

NAB Submits Comments to FCC Over Fee Increases for Radio


NAB
NAB

The National Association of Broadcasters (NAB) submitted comments on Friday to the FCC in response to the Commission's Notice of Proposed Rulemaking concerning regulatory fees for Fiscal Year 2019. NAB claims the NPRM proposes "extraordinary" regulatory fee increases for radio stations for Fiscal Year 2019, while providing little or no explanation. The trade association says that the agency has a checkered history when it comes to clearly explaining the basis for its collection of regulatory fees.

In 2012, the Government Accountability Office concluded that the FCC's regulatory fee process lacked transparency and reported a lack of information in FCC regulatory fee notices. Unfortunately, NAB says the current NPRM suffers from the same confounding flaws. Instead, the NPRM offers only conclusory statements about the Commission's operations and its allocations of regulatory expenses. What bits of information the Commission has provided are left unexplained and, if anything, appear to contradict other publicly available Commission data.

As a result, NAB writes, "Commenters responsible for paying these taxes for regulation are left with no ability to provide meaningful input in this proceeding because the Commission has withheld or obscured the basis for its proposals. We urge the Commission to immediately provide further information to allow stakeholders to constructively participate in this proceeding. Without such data, the comment process is virtually worthless."

NAB is urging the Commission to take this opportunity to reconsider the basis on which it determines which entities are subject to regulatory fees. The Commission is not bound to collect regulatory fees solely from licensees. Under the current as well as proposed framework, however, the trade group claims licensees subsidize companies -- including well-funded competitors -- who benefit from the Commission's activities but do not contribute towards their funding.

These regulatory free riders leverage Commission proceedings and the hard and ongoing work of Commission staff to develop profitable business models without contributing regulatory fees. By expanding the base of contributors, the Commission can significantly lower the regulatory taxes currently paid by some licensees while making its collection as a whole more accurately reflect the work of the Commission and those who benefit from that work NAB said.

With a roughly $17 million increase in budget for the 2019 fiscal year, the Consolidated Appropriations Act of 2018 states the Commission must either raise the regulatory fees for at least some categories of payors -- or expand the base of contributors. However, while the overall budget is expanding by a modest 5.3 percent, NAB claims the impact on the radio industry is more severe, with regulatory fee increases of 18-20 percent for most stations.

"The NPRM provides no coherent explanation for the steep and disproportionate increase directed to radio licensees," NAB wrote. "Absent additional information, commenters cannot reasonably provide meaningful feedback in response to the NPRM."

Advertisement

Latest Radio Stories

BIA Names Michael Guerity VP of Market Intelligence
Michael Guerity
Michael Guerity
BIA Advisory Services has appointed Michael Guerity as Vice President of Market Intelligence & Strategic Communications, a newly created leadership post designed to strengthen the company's market forecasting, strategic insights and industry engagement efforts. In the role, Guerity will oversee strategic More

104.3 The Score Extends Chicago Bulls Radio Rights Deal
Chicago Bulls
Chicago Bulls
Audacy and the Chicago Bulls have agreed to a multi-year extension of their multiplatform broadcast partnership, ensuring that WSCR-FM (104.3 The Score) remains the flagship radio home of Bulls basketball. Under the renewed agreement, The Score will continue to air all Chicago Bulls regular season and More

James Koh Joins 97.1 The Fan Los Angeles for Evenings
James Koh
James Koh
All Sports KNX-FM (97.1 The Fan) Los Angeles has added "The James Koh Show" to its weekday lineup, with the veteran broadcaster taking over the station's evening slot from 6-10pm PT. Koh joins the recently launched Sports outlet as it continues to build out its on-air roster. The updated weekday schedule More
Advertisement

BFOA Adds Gelman, Clarke to Board of Directors
Michael Gelman and Tim Clarke
Michael Gelman and Tim Clarke
The Broadcasters Foundation of America (BFOA) has elected two veteran media executives, Michael Gelman and Tim Clarke, to its board of directors. Gelman serves as Executive Producer of Live with Kelly & Mark and is widely recognized as one of television's most influential producers. His career spans More

Clay Travis & Buck Sexton Mark Five Years on Air
Clay Travis & Buck Sexton
Clay Travis & Buck Sexton
Premiere Networks is celebrating the fifth anniversary of The Clay Travis & Buck Sexton Show, which launched nationwide on June 21, 2021 airing from 2-3pm ET. The syndicated program, hosted by Clay Travis and Buck Sexton, succeeded the late Rush Limbaugh in the midday block he More

WBA Hall of Fame Adds Four New Inductees
Wisconsin Broadcasters Association (WBA)
Wisconsin Broadcasters Association (WBA)
The Wisconsin Broadcasters Association (WBA) inducted four broadcasting leaders into the Wisconsin Broadcasters Hall of Fame on Thursday during its Summer Conference at the Grand Geneva Resort in Lake Geneva. The newest Hall of Fame members are Dave Magnum, founder of Magnum Media and a key figure in More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement