FCC Sues Unlicensed Station to Collect Fine

This is unusual: the Federal Communications Commission has instigated a civil lawsuit in the Western District Court of Texas against Walter Olenick and M. Rae Nadler-Olenick, the proprietors of “Texas Liberty Radio,” which until late last year occupied 90.1 FM in Austin, Texas.

The facts are fairly clear: sometime in 2013, the FCC received a complaint about Texas Liberty Radio’s existence. That August, field agents from Houston traveled to Austin and found the station, measured its power, and confirmed it did not have a license. The recently-filed court documents contain some hand-written notes from field agents about the station, including the possible apartment it was broadcasting from, license plate numbers of cars in the parking lot, and notes on the station’s programming, which field agents noted included stuff from “Alex Jones” and “infowars.” Read More

PIRATE Act Sets Sail in House

In May, Rep. Leonard Lance (R-NJ) introduced the “Preventing Illegal Radio Abuse Through Enforcement Act,” otherwise known by the acronym PIRATE Act. The bill makes several changes to existing FCC regulations regarding unlicensed broadcasting:

1. The maximum monetary penalty that can be assessed for unlicensed broadcasting on the AM and FM bands is increased from an aggregate maximum of $100,000 to $2 million, and can be doled out in increments of $100,000 per day. These fines can be issued against the pirate broadcaster directly, or against any entity that “knowingly and intentionally facilitates pirate radio broadcasting.”

“Facilitates” is defined as “providing access to property (and improvements thereon) or providing physical goods or services, including providing housing, facilities, or financing, that directly aid pirate radio broadcasting.” This hearkens back to a historical precedent set by European laws in the 1960s that attempted to outlaw offshore pirate radio by making it illegal to supply and advertise on the station-ships and platforms operating in international waters. Read More

Now They Tell Us: FCC, Congress Rethinking Enforcement Drawdown?

Radio World revealed earlier this month that the acting chief of the Enforcement Bureau, Michael Carowitz, held a videoconference with members of the Bureau’s field-agent staff. The call revealed that the FCC’s downsizing of its enforcement resources has begun, with 11 field offices closed over the last several months (Anchorage, AK; Buffalo, NY; Detroit, MI; Houston, TX; Kansas City, MO; Norfolk, VA; Philadelphia, PA; San Diego, CA; Seattle, WA; Tampa, FL; and San Juan, PR) and 14 remaining open.

At present, that leaves just 34 field agents covering the entire country – this includes one of two roving “Tiger Teams” of agents organized to backstop the decimated staff in-residence. That’s almost a cut of half from the prior force of 60 that spanned the nation. It’s also important to keep in mind that these agents are responsible for enforcing all FCC regulations, not just the broadcast license requirement. Read More

iHeartMedia, Cumulus Go Debt-Offensive

How many ways can you keep debt at bay? Does non-payment sound like a viable option? Perhaps not if you’re just a mere flesh-and-blood human, but the corporate beast’s a special class.

Over at iHeartMedia, $250 million of the company’s $20+ billion debt came due last Thursday (December 15). In a surprise move, the company announced two days before that it would only be paying back just $192.9 million of these notes and foregoing the rest.

The reason? This debt constitutes money that various subsidiaries of iHeartMedia owe to each other. In addition, these particular debt instruments contain a provision that, should the total debt held between these entities fall below $500 million, it would trigger a “springing lien.” This is a fancy term for extra payments owed to debtors as an incentive for giving the conglomerate a nice line of credit.

By witholding $57.1 million of these payments, iHeartMedia’s total debt in this instance doesn’t fall below the threshold, and thus the company can avoid making the bonus-payments to creditors. To stymie any objection to this ploy, iHeart went to the friendly Bexar County, Texas courts and filed a flurry of paperwork last Monday (to give you an idea of how complex its debt structure is, there 11 petitions in all, involving six Clear Channel iHeart subsidiaries), asking a judge to declare this practice kosher. Read More

LPFM Expands…But Translators Still Dominate FM Crumbs

Last month the Pew Research Center published a short report on the growth of the LPFM radio service, following the conclusion of a 10-year legislative battle to expand it back to near the scope originally hoped by the FCC when it was first proposed in 1999-2000.

According to the report, since the passage of the Local Community Radio Act in 2011 and subequent filing windows for new LPFM construction permits, the number of licensed stations has nearly doubled, to more than 1,500 nationwide (including U.S territories and protectorates). Most states have more than 20 LPFM licensees, while California, Florida, and Texas clock in with the most (100+). Read More