FCC Backs Down on Two Broadcast Ownership Reporting Mandates
The FCC reversed recent mandates that two types of investors in all radio and TV stations report on their stakes in biennial forms, returning to past policy of exempting some from filing Form 323. The commission on Friday acceded to the part of the NAB’s petition for reconsideration that sought to again deem as non-attributable shareholders those who own a minority share of a company with a single owner of at least 50 percent. It also agreed that investors whose stakes would only be deemed attributable to them because of investments in other media properties won’t have to file the documents, which track race and gender of broadcast asset owners.
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A new rulemaking notice proposed to reinstate the two ownership reporting requirements and seeks comment on the hurdles to disclosing such information. “Will collection of race, ethnicity, and gender data on the holders of these two nonattributable interests further the Commission’s goals to obtain reliable data on the precise status of minority and female ownership?” the notice asked. “We seek comment specifically on NAB’s concern that the reporting requirement will deter investment in the broadcast industry by increasing investors’ administrative and financial burdens and by requiring disclosure of information that they would otherwise consider private.”
The NAB contended there was no warning in a notice that preceded the Form 323 rules that reporting requirements might be extended. “We acknowledge that our intention to impose the requirement was not explicitly stated and note that there were no comments specifically addressing the reporting of nonattributable interests in response to our question as to whether the scope of reporting should be expanded,” the regulator said. “We believe the better course is to issue a Further Notice to expressly invite additional comment on this issue.” Comments are due 30 days after the notice appears in the Federal Register, replies 15 days later.
Friday’s order, approved by FCC members, rejected the NAB’s request that it exempt sole proprietorships. “We also disagree that the biennial filing requirement places an undue burden on sole proprietors. At the outset, because these licensees each have only one principal, determination of the relevant information should be a simple process” and they “simply must recertify, once every two years that they have reviewed their current reports and that they are accurate.” The commission agreed with the United Church of Christ that the issue in deciding whether to toss the single proprietor rule was whether dated ownership information would be accurate, the ruling said. “We do not believe it would be.”
The NAB looks “forward to working with the commission to develop the least burdensome means of achieving our common goal of having accurate ownership information,” said a spokesman for the group. UCC representatives didn’t reply to messages seeking comment. The order appears to address many industry concerns about Form 323, though not all of them, said another industry official.
The commission also sought input on whether it shouldn’t collect the names and addresses as well as information on familial relationships and other media holdings of nonattributable investors. “Would data thus limited provide the Commission and outside researchers with sufficient information to conduct studies?” the notice asked. Some broadcasters raised privacy and other concerns with the Office of Management and Budget over the proposed Form 323 changes (CD Sept 22 p7). As of last week, the OMB hadn’t approved the form, so the Media Bureau delayed the deadline to file it (CD Oct 6 p15). OMB approval remains pending, a commission spokeswoman said.