On April 29, 2016, the FCC’s Enforcement Bureau entered into a Consent Decree with St. George Cable, Inc., resolving the Enforcement Bureau’s investigation into whether St. George (the “operator”) violated numerous FCC rules.  Under the terms of the Consent Decree, the operator will implement a comprehensive compliance plan and pay a $2,500 civil penalty.  However, if the FCC finds that the operator fails to comply with the FCC’s EAS rules, cable signal leakage rules or cable registration rules during the next three years, the operator will pay a further civil penalty of $234,000.

The Consent Decree resolved the Enforcement Bureau’s investigation into whether the operator violated four distinct FCC rules.  In particular, the Enforcement Bureau alleged that the operator failed to:

(i)            Install and maintain operational Emergency Alert System (“EAS”) equipment.  The FCC’s EAS rules require all EAS participants, including cable operators, to ensure that EAS encoders, EAS decoders, and attention signal generating and receiving equipment are installed so that the monitoring and transmitting functions are available during the times the systems are in operation.

(ii)           Operate its cable system within required signal leakage limits.  The FCC’s cable signal leakage rules seek to control emissions that could cause cable systems to interfere with aviation frequencies, and require cable systems to file annual signal leakage reports with the FCC (Form 320).  Moreover, in the event that the cable system causes harmful interference, and the interference cannot be promptly eliminated, these rules require the cable system to suspend its operations immediately.

(iii)          Register its cable system with the FCC.  The FCC’s cable registration rules require cable operators to submit a registration statement with the FCC (Form 322) for each distinct service area before beginning operation in the community.

(iv)          Immediately suspend operations as directed by an Enforcement Bureau order and resume operations only with written authorization.

In light of this Consent Decree, the Enforcement Bureau’s stated intent to more vigorously enforce cable consumer protection requirements, and the upcoming online public file obligations, all cable operators should review their internal policies and procedures to ensure compliance with FCC rules.

If you have any questions about the EAS rules, cable signal leakage rules or community registration rules, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com or Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

It’s that Time Again – Election Season is Here  

Get Ready With Our Political Advertising Primer

With an intense primary election season upon us and the general November election looming, cable operators have begun to receive requests from candidates for advertising time.  Federal law and FCC regulations govern the rates and terms for candidate advertising and require certain records to be kept. 

This election season will likely be the first to occur under the FCC’s forthcoming online public inspection file requirements (currently under review at the Office of Management and Budget (“OMB”) – the rules will become effective thirty days after announcement of OMB approval by the FCC).  All cable systems with more than 1,000 subscribers must maintain a political advertising file (as detailed below).  Once political files are posted and maintained online in the FCC’s public database, public interest groups and members of the public will be able to more easily access cable system advertising records and confirm compliance with this recordkeeping requirement.  Moreover, cable operators will also be required to make back-up copies of their political file documents so that they can be produced if the FCC online database is unavailable.  Operators may meet this back-up requirement by periodically downloading a mirror copy of their online public file, including the political file, or by maintaining a local back-up of the political file.

Key provisions of the FCC’s political advertising regulations include:

• Cable operators are not obligated to provide political candidates access to cable systems.  If a cable operator permits “use” of its system by a legally qualified candidate, it must afford "equal opportunities to all other candidates for that office."

• Candidate appearances on a bona fide newscast, bona fide news interview, bona fide news documentary (if the appearance of the candidate is incidental to the subject of the documentary), or on-the-spot coverage of bona fide news events (including political conventions) do not trigger the equal opportunity requirements.

• For candidate advertising – except for periods before a primary, general, or special election – the system shall charge no more than the rates for comparable use of the system by commercial advertisers.  Discounts and other terms offered to commercial advertisers must be disclosed and offered to political advertisers.

• During the 45 days before a primary, and the 60 days before a general or special election, the cable system may charge legally qualified candidates for public office no more than the “lowest unit charge” for advertising time.  The “lowest unit charge” is the amount that the system charges “its most favored commercial advertisers for the same classes and amounts of time for the same periods.”  In calculating the lowest unit charge, cable operators must take into account any practices offered to commercial advertisers that enhance the value of advertising spots, such as bonus spots, time-sensitive make goods, and preemption priorities. 

• Cable systems providing political advertising must maintain a political advertising file containing all candidate requests for time and the disposition of those requests.  Any records maintained in the file must be kept for two years.  Cable systems must maintain a political advertising file even if the cable system contracts with a 3^rd party for local advertisement insertion services. 

If you have questions about political advertising or public inspection files in general, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.