A Federal Government Shutdown Like No Other

- FCC's Response Stymies Stations' Compliance Efforts

The ongoing shutdown of the federal government resulting from a partisan dispute over Republicans' cuts to Medicaid and Affordable Care Act Funding is playing out far differently for broadcasters than previous shutdowns largely because the FCC shuttered many of its online systems that had remained available in prior shutdowns.

TAB's FCC legal counsel, Scott Flick with Pillsbury Winthrop Shaw Pittman, explains that the FCC has generally been less affected than most government agencies because it's not funded by taxpayer dollars but by regulatory fees paid by broadcasters and others regulated by the FCC.

However, because the FCC collects those fees in arrears - at the end of the fiscal year they fund rather than the beginning - the FCC must borrow operating funds from the federal government to operate and then repay that debt when regulatory fees are collected at the end of the fiscal year.

That's why the FCC is never able to extend its regulatory fee collection deadline beyond September 30, the last day of the federal fiscal year.

Because of timing differences and the fact that the FCC collects more in fees in a typical year than its actual operating costs, it has often been able to continue operating during a government shutdown, sometimes throughout the entire shutdown if its funds are ample and the shutdown short.

That's why the FCC's decision to close its online filing system came as a surprise.

Flick and his colleague Elizabeth Craig dissect what this means for stations' future regulatory obligations and enforcement actions and emphasize that those obligations continue in effect despite the shutdown and temporary unavailability of key FCC websites.

With state and local elections underway this week, how this all plays out for stations' political files is chief among immediate concerns.

"Unlike the base jumpers now parachuting from El Capitan with no (National Park Service) rangers in sight, FCC licensees must toe the line, even in the many instances where the FCC shutdown has made rule compliance even more difficult," they write.

READ FCC ENFORCEMENT MONITOR - THE GOVERNMENT SHUTDOWN EDITION

Questions? Contact Oscar Rodriguez or call (512) 322-9944.