The Federal Communications Commission has released its proposed Fiscal Year 2024 regulatory fees and is asking for public input on its proposals. Comments are due July 15, 2024, and reply comments are due July 29, 2024.
The FCC wants to collect over $390 million in fees, an increase of over 14% from 2023. The FCC is asking for comments on, among other things, the calculation of television broadcaster regulatory fees; ending the presumption that dark and silent broadcast stations are experiencing financial hardship that justifies waiving their regulatory fees; and ending temporary relief measures that were implemented in response to COVID-19.
Full-Service Television Broadcasters
The FCC is proposing to use the same population-based fee system it has used in recent years. The FCC calculates the annual fee for each TV station based on the population count within the station’s projected noise-limited service contour (NLSC). This year, the FCC is proposing a factor of $.006598 per population served, meaning a station’s FY 2024 regulatory fee would be based on the population it serves multiplied by $.006598. For FY 2023, the FCC used a factor of $.007799.
AM/FM Broadcast Stations
For the second consecutive year, the FCC is proposing to decrease fees for AM and FM broadcast radio stations. This year’s decrease is approximately 6%. Radio stations that serve a population of less than 10,000 would pay between $350 and $700 depending on service and class, while radio stations serving a population of 6,000,000 or more would pay between $10,000 and $20,000.
Non-Operating Broadcast Stations
The FCC is proposing to end the presumption that dark and silent stations have experienced financial hardship that merits a waiver of regulatory fees without the licensee submitting evidence of actual hardship. The FCC notes that there are reasons stations go dark other than financial hardship, and believes a decision about waiving regulatory fees should be made on a case-by-case basis.
Space and Earth Stations
The FCC is seeking comments on proposed changes to the methodology that would be used for assessing space and earth station regulatory fees, pending the outcome of the ongoing Space and Earth Station Regulatory Fees NPRM proceeding. Under the FCC’s proposals, as before, only Transmit/Receive and Transmit-only earth stations will pay regulatory fees.
Temporary COVID-19 Relief Measures
During the COVID-19 pandemic and through FY 2023, the FCC granted temporary relief to regulatory fee payors that had experienced financial hardship due to the pandemic. The FCC wants to end these measures in FY 2024. This would have several effects. The FCC would no longer accept requests for waiver, reduction or deferral of regulatory fees filed by payors that have a “red light” status for delinquent fees, until full payment of the delinquent debt. It would also mean the FCC could again require downpayments from payors who seek installment payment plans for regulatory fee debt, and could charge debtors higher interest rates. Payors who seek reduction or deferral relief would be required to submit all required financial information at the time of their requests, as was the case before COVID-19.
If you have questions about the proposed fees and changes, or would like to file comments about the proposed fees, contact an attorney in our Media Practice Group.
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