iHeartMedia 2005 Annual Report Download - page 22

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previously nonattributable debt and equity interests in communications media to the FCC's multiple ownership
restrictions. These rules may limit our ability to expand our media holdings.
We May Be Adversely Affected By New Statutes Dealing With Indecency
Congress currently has under consideration legislation that addresses the FCC's enforcement of its rules
concerning the broadcast of obscene, indecent, or profane material. Potential changes to enhance the FCC's authority in
this area include the ability to impose substantially higher monetary penalties, consider violations to be "serious"
offenses in the context of license renewal applications, and, under certain circumstances, designate a license for hearing
to determine whether such license should be revoked. In the event that this or similar legislation is ultimately enacted
into law, we could face increased costs in the form of fines and a greater risk that we could lose one or more of our
broadcasting licenses.
Antitrust Regulations May Limit Future Acquisitions
Additional acquisitions by us of radio and television stations and outdoor advertising properties may require
antitrust review by federal antitrust agencies and may require review by foreign antitrust agencies under the antitrust
laws of foreign jurisdictions. We can give no assurances that the Department of Justice (“DOJ”) or the Federal Trade
Commission or foreign antitrust agencies will not seek to bar us from acquiring additional radio or television stations or
outdoor advertising properties in any market where we already have a significant position. Following passage of the
Telecommunications Act of 1996, the DOJ has become more aggressive in reviewing proposed acquisitions of radio
stations, particularly in instances where the proposed acquiror already owns one or more radio station properties in a
particular market and seeks to acquire another radio station in the same market. The DOJ has, in some cases, obtained
consent decrees requiring radio station divestitures in a particular market based on allegations that acquisitions would
lead to unacceptable concentration levels. The DOJ also actively reviews proposed acquisitions of outdoor advertising
properties. In addition, the antitrust laws of foreign jurisdictions will apply if we acquire international broadcasting
properties.
Environmental, Health, Safety and Land Use Laws and Regulations May Limit or Restrict Some of Our
Operations
As the owner or operator of various real properties and facilities, especially in our outdoor advertising
operations, we must comply with various foreign, federal, state and local environmental, health, safety and land use laws
and regulations. We and our properties are subject to such laws and regulations relating to the use, storage, disposal,
emission and release of hazardous and non-hazardous substances and employee health and safety as well as zoning
restrictions. Historically, we have not incurred significant expenditures to comply with these laws. However, additional
laws, which may be passed in the future, or a finding of a violation of or liability under existing laws, could require us to
make significant expenditures and otherwise limit or restrict some of our operations.
Government regulation of outdoor advertising may restrict our outdoor advertising operations
Changes in laws and regulations affecting outdoor advertising at any level of government, including laws of the
foreign jurisdictions in which we operate, could have a significant financial impact on us by requiring us to make
significant expenditures or otherwise limiting or restricting some of our operations.
U.S. federal, state and local regulations have had an impact on the outdoor advertising industry. One of the
seminal laws was The Highway Beautification Act of 1965 (HBA), which regulates outdoor advertising on the
306,000 miles of Federal-Aid Primary, Interstate and National Highway Systems roads. HBA regulates the locations of
billboards, mandates a state compliance program, requires the development of state standards, promotes the expeditious
removal of illegal signs, and requires just compensation for takings. Size, spacing and lighting are regulated by state and
local municipalities.
From time to time, certain state and local governments and third parties have attempted to force the removal of
displays not governed by the HBA under various state and local laws, including amortization. Amortization permits the
display owner to operate its display which does not meet current code requirements for a specified period of time, after
which it must remove or otherwise conform its display to the applicable regulations at its own cost without any
compensation. Several municipalities within our existing markets have adopted amortization ordinances. Other
regulations limit our ability to rebuild or replace nonconforming displays and require us to remove or modify displays
that are not in strict compliance with applicable laws. In addition, from time to time third parties or local governments
assert that we own or operate displays that either are not properly permitted or otherwise are not in strict compliance
with applicable law. Such regulations and allegations have not had a material impact on our results of operations to
date, but if we are increasingly unable to resolve such allegations or obtain acceptable arrangements in circumstances in
which our displays are subject to removal, modification or amortization, or if there occurs an increase in such
regulations or their enforcement, our results could suffer.