iHeartMedia 2007 Annual Report Download - page 25

Other. The FCC has adopted rules on children’s television programming pursuant to the Children’s Television Act of 1990 and rules
requiring closed captioning of television programming. The FCC has also taken steps to implement digital television broadcasting in the United
States. Furthermore, the 1996 Act contains a number of provisions related to television violence. We cannot predict the effect of the FCC’s
present rules or future actions on our television broadcasting operations.
Finally, Congress and the FCC from time to time consider, and may in the future adopt, new laws, regulations and policies regarding a
wide variety of other matters that could affect, directly or indirectly, the operation and ownership of our broadcast properties. In addition to the
changes and proposed changes noted above, such matters have included, for example, spectrum use fees, political advertising rates and
potential restrictions on the advertising of certain products such as beer and wine. Other matters that could affect our broadcast properties
include technological innovations and developments generally affecting competition in the mass communications industry, such as direct
broadcast satellite service, the continued establishment of wireless cable systems and low power television stations, “streaming” of audio and
video programming via the Internet, digital television and radio technologies, the establishment of a low power FM radio service and possible
telephone company participation in the provision of video programming service.
The foregoing is a brief summary of certain provisions of the Communications Act, the 1996 Act and specific regulations and policies of
the FCC thereunder. This description does not purport to be comprehensive and reference should be made to the Communications Act, the
1996 Act, the FCC’s rules and the public notices and rulings of the FCC for further information concerning the nature and extent of federal
regulation of broadcast stations. Proposals for additional or revised regulations and requirements are pending before and are being considered
by Congress and federal regulatory agencies from time to time. Also, various of the foregoing matters are now, or may become, the subject of
court litigation, and we cannot predict the outcome of any such litigation or its impact on our broadcasting business.
R
egulation of our Americas and International Outdoor Advertising Businesses
The outdoor advertising industry in the United States is subject to governmental regulation at the federal, state and local levels. These
regulations may include, among others, restrictions on the construction, repair, maintenance, lighting, upgrading, height, size, spacing and
location of and, in some instances, content of advertising copy being displayed on outdoor advertising structures. In addition, the outdoor
advertising industry outside of the United States is subject to certain foreign governmental regulation.
Domestically, in recent years, outdoor advertising has become the subject of targeted state and municipal taxes and fees. These laws may
affect prevailing competitive conditions in our markets in a variety of ways. Such laws may reduce our expansion opportunities, or may
increase or reduce competitive pressure from other members of the outdoor advertising industry. No assurance can be given that existing or
future laws or regulations, and the enforcement thereof, will not materially and adversely affect the outdoor advertising industry. However, we
contest laws and regulations that we believe unlawfully restrict our constitutional or other legal rights and may adversely impact the growth of
our outdoor advertising business.
Federal law, principally the Highway Beautification Act, or HBA, regulates outdoor advertising on Federal-Aid Primary and Interstate
and National Highway Systems roads within the United States (“controlled roads”). The HBA regulates the size and placement of billboards,
requires the development of state standards, mandates a state’s compliance program, promotes the expeditious removal of illegal signs and
requires just compensation for takings.
To satisfy the HBA’s requirements, all states have passed billboard control statutes and regulations which regulate, among other things,
construction, repair, maintenance, lighting, height, size, spacing and the placement of outdoor advertising structures. We are not aware of any
state which has passed control statutes and regulations less restrictive than the prevailing federal requirements, including the requirement that
an owner remove any non-grandfathered non-compliant signs along controlled roads, at the owner’s expense and without compensation. Local
governments generally also include billboard control as part of their zoning laws and building codes regulating those items described above and
include similar provisions regarding the removal of non-grandfathered structures that do not comply with certain of the local requirements.
As part of their billboard control laws, state and local governments regulate the construction of new signs. Some jurisdictions prohibit
new construction, some jurisdictions allow new construction only to replace existing structures and some jurisdictions allow new construction
subject to the various restrictions discussed above. In certain jurisdictions, restrictive regulations also limit our ability to relocate, rebuild,
repair, maintain, upgrade, modify, or replace existing legal non-conforming billboards.
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