FCC Seeks Comment On Proposal to End Special Use FRN on Form 323
As expected, the FCC proposed to require broadcast licensees to report on its Form 323 a Social Security-based FCC Registration Number (FRN) for all attributable owners (CD Oct 24 p2). In a further notice of proposed rulemaking issued Thursday, the commission asked for comments on a plan to eliminate a “Special Use” FRN alternative to its standard FRN. The special-use FRN does not require attributable owners to submit a Social Security number in order to obtain one. It also asked for comment on keeping the special use FRN “solely in instances where the filer is unable to obtain” a standard FRN from attributable owners, the notice said (http://xrl.us/bn83sg).
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Commissioners Robert McDowell, Mignon Clyburn and Ajit Pai each issued separate statements on the notice. McDowell concurred and Pai approved in part and concurred in part. The FCC changed its broadcast ownership form in 2009, setting off opposition from the law firm Fletcher Heald, which twice filed for writs of mandamus with the U.S. Court of Appeals for the D.C. Circuit to block the new form from being adopted with the standard FRN requirement.
The commission “should have done this back in 2009,” said Harry Cole, a partner with Fletcher Heald, of the notice that was released Thursday. “The fact that it’s doing it now is three years late. But if it wants to ... [require FRNs on Form 323], this is the way to do it."
McDowell said he has concerns about “the possible unintended consequences of requiring all attributable interest holders to divulge sensitive information.” He said he’s always in favor of seeking public comment on proposals and recognizes the importance of collecting data to learn the extent of minority and female ownership of broadcast assets. Pai said it makes sense to ask the questions posed in the notice. “I am voting to concur in part because I have not yet reached any tentative conclusions as to how those questions should be answered."
Clyburn praised the notice. “This rule is one part of our larger mission to maintain up-to-date data that is necessary to properly analyze our country’s media market,” she said. An NAB spokesman said the trade association supports policies that lead to more women and minorities in senior management and ownership of broadcast properties. “We continue to have concerns that this specific proposal, however well intended, could actually discourage investment in local radio and TV stations,” he said.