The issue on the table was narrow – a bill from Sen. Roy Blunt (R-MO) would protect joint sales agreements that were already in place when the FCC changed the rules last summer. But it led to a debate on broadcast consolidation in general.
The bill passed by a 14-10 vote.
Support and opposition to the bill broke down mostly along party lines with Republicans in favor and Democrats against.
Brian Schatz (D-HI) offered and withdrew an amendment. He said he agreed that it wasn’t fair to break up JSA entered into without FCC intervention retroactively, but was against broadcast consolidation in general and was concerned that the bill allowed the grandfathered JSAs to exist in perpetuity.
Cory Booker (D-NJ) added concerns about the lack of minority and females among the ranks of broadcast licensees.
Ranking Member Bill Nelson (D-FL) noted that the FCC provided for waivers of its no-JSA rule, and said that was fine – if a JSA really was benefitting a small broadcaster that otherwise might have a tough time surviving on its own, OK. But it should not be used as a way for a large television group to get around local ownership caps.
Blunt noted that the bill was narrow and protected only JSAs in existence prior to the FCC rule change.
“We can’t have the government allow something,” he said, then come back and say, well we’ve changed out mind. Businesses have made decisions and invested money based on the rules as they understood them, and the FCC can’t just blow that up.
Blunt said he would work with opponents of the bill to tweak it if necessary. As for the overarching issue of broadcast consolidation, he said he would welcome a debate on the topic.
Counting proxy votes, the bill carried by a 14-11 vote.
However, among those present, the vote was 8-8.
Subsequently it passed 14-10.
RBR+TVBR observation: This should pass as a matter of simple fairness, regardless of your opinion of JSAs. To put it simply, the government cannot change the speed limit on the a given road from 45 mph to 35 mph on June 25, 2015, then start giving tickets to people who went 40 mph on June 24, 2015.
The FCC was fully aware that companies were entering into JSAs and allowed them to go into effect.
Indeed, the FCC’s own style of broadcast oversight supports their legality.
A JSA is a form of Local Market Agreement or LMA. The FCC’s requirement is that the licensee maintain ultimate control over the station, deal with all regulatory matters and maintain its own managerial presence.
The FCC does not concern itself with advertising or programming matters.
A TBA, or time brokerage agreement, allows the licensee’s partner to program the station. This is much like using a network for programming.
A JSA allows the licensee’s partner to sell time on the station. This is much like using a sales rep.
Networks and sales rep firms are perfectly legal, and it is arguable that entering into a very similar arrangement with a single party isn’t much different.
Anyway, as the senators decided, it’s a debate for another day…
