FCC May Stiffen Character Rules for Licenses

The chairman of the Federal Communications Commission has ordered a staff study to consider tougher character standards for persons with broadcast licenses.

The action by Alfred C. Sikes, appointed FCC chairman last year by President Bush, could reverse the weakening of the agency’s so-called character standards that occurred during the Reagan Administration.

Sikes’ decision was disclosed in a letter to Rep. John D. Dingell (D-Mich.), chairman of the House Energy and Commerce Committee. Dingell’s office released a copy of the letter Wednesday.

Federal law requires the commission to consider issues of character and lawfulness when awarding licenses for television or radio stations or when deciding whether a broadcaster can retain a license. The reasoning is that because a license constitutes a monopoly, broadcasters should be held to a high standard of conduct.

But in recent years the FCC has relaxed its standards and adopted regulations that strictly limit the types of crimes and conduct that can be considered in determining fitness. For instance, the policy excludes consideration of crimes not related to the FCC, including murder. Nor does the policy consider civil consent decrees.

In his letter to Dingell, Sikes was blunt in saying he does not endorse the current attitude reflected in a policy statement adopted by the FCC in 1986.

“There is no scarcity of law-abiding citizens interested in being broadcast licensees,” Sikes wrote. “Consequently, in my view current or prospective broadcast licensees should be held to a higher standard than is reflected in the current policy statement.”

Sikes, a Republican and former broadcast executive, said he has instructed the agency’s staff to reexamine current policy immediately.

In December, Dingell had asked Sikes if he intended to review the FCC policy on character, expressing particular concern that current policy would allow persons convicted of drug-related offenses to receive or retain broadcast licenses. Sikes replied that federal law requires that anyone convicted of a drug offense be denied federal benefits, which include an FCC license.

Dingell called Sikes’ statement reaffirming the doctrine that broadcasters should be held to a higher standard “a refreshing change.”

“His commitment to thoroughly reexamining that policy goes a long way toward restoring my confidence in the FCC’s judgment and willingness to regulate in the public interest,” the congressman said.

Andrew J. Schwartzman, executive director of the Media Access Project, a public interest law firm in Washington associated with consumer activist Ralph Nader, said Sikes’ willingness to consider modifying the character standards “signals a potentially fundamental change in philosophical direction.

“The character policy reflects a regulator’s attitude about whether or not broadcasters will be treated as special,” Schwartzman explained.

Along with heralding possible long-term changes, a return to a tougher standard could affect several broadcast licenses under dispute at the FCC, according to several communications lawyers.

In one, GAF Corp., which owns a radio station in New York, was recently convicted of stock manipulation. Under existing policy, the FCC probably would not consider the conviction in deciding whether GAF should retain the station. A tougher policy could change that.

In another pending case, Tele-Communications Inc., the nation’s largest cable operator, has applied for a license to broadcast programming by satellite. But two groups have opposed the license, claiming that TCI’s conviction on antitrust charges in Missouri should disqualify the company.