• History• How did government get involved in regulation?– Wireless Ship Act (1910): • Large at-sea vessels must be equipped with wireless sets– Radio Act of 1912: • Post-Titanic regulation said radio operators hadto get license from Secretary of Commerce andassigned frequencies and hours of operation toprevent interference at sea– 1920s: • Spectrum interference; change was needed• Justification• Scarcity Theory (Original justification): – electromagnetic spectrum is limited and a national resource; government reserves the right to impose obligations & regulations on those allowed to broadcast (traditional rationale)• Pervasive Presence Theory (Later; used in Carlin case): – TV and radio so pervasive and potentially intrusive that the public is entitled to someprotection from unwanted or offensive messages (recent rationale)• History• 1927 Radio Act: – Principles of scarcity theory• Spectrum is publicly owned, not private• Stations to operate in the public interest• Government censorship is prohibited• Federal Radio Commission (FRC) createdto grant licenses, make rules subject to judicial review• FRC eliminates interference problem - strengthens idea of the “public interest”• History• Communications Act of 1934– Expanded FRC from 5 to 7 members– Renamed, “Federal Communications Commission”– Expands jurisdiction to include wireless and telephone– Bulk of 1927 legislation included and strengthened in Title III of the Communications Act– Found as part of Title 47 of the U.S. Code of Federal Regulations• History– Important sections of the CA of 1934• Section 301: Spectrum users must be licensed• Section 312: Federal candidates must have access to facilities• Section 315: Equal Time section is important• Section 326: FCC prohibited from censoring radio & TV content– Remains flexible and influential basis of broadcasting law • History• Most notable revisions to the CA of 1934– Public Broadcasting Act of 1967– Cable TV Act of 1984 & 1992– Telecommunications Act of 1996• History• Cable Regulation & the FCC– 1950s: FCC does not initially regulate – 1960s: pressure from broadcasters adds regulations; slows cable growth – 1970s: pressure from Cable wins favorable legislation– 1980s & 90s: consumer issues; new distribution platforms (satellite; telephone; Internet)• Telecommunications Act of 1996– The most significant piece of electronic legislation in more than 60 years• Intent - create competition between cable & phone companies• Liberalized rules covering local and national ownership of broadcast stations• Created 8-year, license renewals for both radio& TV • Required new TV sets to carry “V-Chip”: parental access control• Regulatory Forces: 8 Key Components• Federal Communications Commission• Congress (Legislative Branch)• Courts (Judiciary Branch)• The Whitehouse (Executive Branch)• Industry Lobbyist• The Public• State & Local Government• The Marketplace• Regulatory Forces: 8 Key Components1. Federal Communications Commission• 5 Commissioners: Presidential appointment, Senate-confirmed• No more than 3 from any one political party • The Federal Communications Commission• Regulatory Forces: 8 Key Components1. Federal Communications Commission• 5 Commissioners: Presidential appointment, Senate-confirmed• No more than 3 from any political party • The 5 Commissioners are served by the following bureaus:– Consumer and Government Affairs Bureau:– Enforcement Bureau– Wireless Telecommunications Bureau– Wireline Competition Bureau– Media Bureau (most important): oversees FM, AM radio, broadcast TV cable and satellite services• The FCC is a major force in the creation of electronic media policy• Policy Division• Conducts proceedings concerning broadcast, cable. • Conducts proceedings related to DBS • Satellite Home Viewer Improvement Act• Local channel availability (Dish, DirecTV)• Among it’s more significant functions are the oversight and implementation of rulesdealing with:– Political Broadcasting– Employment Opportunity (EEO)– Children’s TV • Recent hot topics– Closed Captioning Rules for IP-Delivered Clips– Sports Blackout Rules– Joint Sales Agreement, Shared Services Agreement Rules• The Role of the FCC: Policymaking• The Role of the FCC: Policymaking• The Role of the FCC: Policymaking• The Role of the FCC: Policymaking• The Role of the FCC: Policymaking• The Role of the FCC: Policymaking• The Role of the FCCGrants licenses for broadcast stations • Licensee qualifications and requirements:– Individuals must be a U.S. citizen, Companiesfree from foreign control (25 percent cap on foreign interest is the base rule, but may be exceeded if deemed in the public interest)– Applicant must show financial and technical strengths– Must propose EEO plan• The Role of the FCC• License renewal– Radio/TV station renewals up every 8 years– Scrutiny: Has station operated in the “public interest”?• The Role of the FCC: License RenewalCompeting Applications/Petitions to deny• Renewal Expectancy - an incumbent station will win out over a rival if past service is good• Forfeitures (Fines) and Due Process• Notice of Inquiry (NOI)• Sanctions– Letters to a station’s file– Fines• Maximum FCC forfeiture– $350,000 per occurrence– $3.3 million single continuing violation• Can be appealed on statutory or constitutional grounds•– Short-term license renewal: 6 months - 2 years• Allows FCC to see if past deficiencies have been corrected– Refusal or revocation of licenses: rare• Stations in Chicago & San Francisco havebeen denied renewals for misrepresentation• Ongoing Enforcement• FCC depends on complaints to monitor stations• In general, the FCC enforcement isfocused on certain areas. – technical operation• Proper tower lighting and painting• EAS Operation – compliance with EEO requirements– Indecency issues have come under increasing scrutiny over the last number of years.• Forfeitures (Fines) and Due Process• Adjudication– Summary Decisions– Hearings before ALJ's• Appeals – Judicial Route• Self-Monitoring:Public File Contents• Latest Construction Permit or License Application• Latest License Renewal Application• Ownership Reports• Annual Employment Reports• EEO Model Program if required• The Public and