The FCC this week released its draft order proposing to eliminate the requirement that broadcasters file certain contracts relating to ownership and control with the Commission.
Instead, noted Washington, D.C., attorney David Oxenford of Wilkinson Barker Knauer LLP notes, the disclosure of these documents will be made simply by observing the current requirement that stations either make those documents available in the station’s online public file, or make available a list of the required documents in the online public file with the documents themselves provided within 7 days to anyone who requests them, including the FCC.
Certain other clarifications about the disclosure of such documents were contained in the draft order, which is expected to be adopted at the FCC meeting on October 23.
Among the documents that are required to be in the public file are those, Oxenford says, showing the governance of the license entity (e.g., articles of incorporation and bylaws); options and other documents related to future ownership rights; joint sales and time brokerage agreements; and television network affiliation agreements.
In the draft order, the FCC requires that such documents be included in the online public file (either in full or by inclusion on the list) within 30 days of execution, or within 30 days of any amendment or other modification of the agreement. If only a list of the documents is provided in the file, all the information that is required on an Ownership Report, where such documents are listed, would be required – including the name of the parties involved and the execution and expiration dates of the agreements.
The draft agreement also would allow the redaction of proprietary information from any of these documents. The rules had specifically allowed redactions in JSAs and time brokerage agreements, and many licensees assumed that general FCC provisions about protection of proprietary information also applied to other documents. This order would make that explicit.
If adopted, Oxenford notes, these rules would go into effect after approval of the Office of Management and Budget under the Paperwork Reduction Act, so the new rules may not be effective for several months.