iHeartMedia 2007 Annual Report Download - page 29

radio/television cross-ownership, television LMAs and JSAs, grandfathering of existing television LMAs and waivers regarding certain of our
radio/television combinations will no longer apply to us.
We may be adversely affected by new statutes dealing with indecency
Provisions of federal law regulate the broadcast of obscene, indecent, or profane material. The FCC has substantially increased its
monetary penalties for violations of these regulations. Congressional legislation enacted in 2006 provides the FCC with authority to impose
fines of up to $325,000 per violation for the broadcast of such material. We therefore face increased costs in the form of fines for indecency
violations, and cannot predict whether Congress will consider or adopt further legislation in this area.
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ntitrust 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 United States Department of Justice (“DOJ”), the Federal Trade Commission (“FTC”) 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 1996 Act, 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.
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nvironmental, 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
United States federal, state and local regulations have a significant impact on the outdoor advertising industry and our outdoor
advertising business. One of the seminal laws was the HBA, which regulates outdoor advertising on the 306,000 miles of Federal-Aid Primary,
Interstate and National Highway Systems (controlled roads). The HBA regulates the size and location 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. Construction, repair, maintenance, lighting, upgrading, height, size, spacing and the location of billboards and the
use of new technologies for changing displays, such as digital displays, are regulated by federal, state and local governments. From time to
time, states and municipalities have prohibited or significantly limited the construction of new outdoor advertising structures and also permitted
non-conforming structures to be rebuilt by third parties. 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.
From time to time, certain state and local governments and third parties have attempted to force the removal of our displays under
various state and local laws, including condemnation and amortization. Amortization is the attempted forced removal of legal but non-
conforming billboards (billboards which conformed with applicable zoning regulations when built, but which do not conform to current zoning
regulations) or the commercial advertising placed on such billboards after a period of years. Pursuant to this concept, the governmental body
asserts that just compensation is earned by continued operation of the billboard over time. Amortization is prohibited along all controlled roads
and generally prohibited along non-controlled roads. Amortization has, however, been upheld along non-controlled roads in limited instances
where provided by state and local law. Other regulations limit our ability to rebuild, replace, repair, maintain and upgrade non-conforming
displays. 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. Although we believe that the number of our billboards that may be
subject to removal based on alleged
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