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Breaking News
Upcoming Lowest Unit Charge Period for Political Candidates Seeking "Uses" of Broadcast and Cable Facilities
August 24, 2006
LUC Period Begins: September 8, 2006
LUC Period Ends: November 7,2006 (Election Day)
This will serve as a reminder that, beginning on September 8, 2006, and continuing through the 60-day period until Election Day, every broadcast station and multichannel video programming distributor ("MVPD") is required to charge legally qualified candidates who "use" their facilities for political advertisements no more than the "lowest unit charge" ("LUC") available to its most favored commercial advertisers for the same class and amount of time for the same time period. This requirement applies to both federal and non-federal candidates, but not to ballot issue advertisements, "soft money" advertisements by a political party or advertisements from "Section 527" organizations. The FCC has previously indicated that broadcast stations and MVPDs that sell political time on Election Day must do so at their LUC rate. The FCC rules define a political "use" as any positive appearance of a legally qualified candidate by voice or image.
In addition, as you should be aware, the Bipartisan Campaign Reform Act of 2002 ("Reform Act") now requires a candidate for federal office to make a written certification to the station or MVPD, at the time the spot is purchased, that his or her political ad will not directly refer to another candidate for the same office unless that ad includes certain new sponsorship identification requirements (e.g., the candidate's statement of approval). This certification includes any reference to another candidate, not just a negative one. In the event that the ad actually broadcast does not adhere to these identification requirements, the federal candidate will forfeit all rights to the LUC for the remainder of the 60-day window.
September 8 is also the first day of the 60-day window during which "electioneering communications" may not be made by corporations and labor organizations. "Electioneering communications" include paid programming and free PSAs that refer to a clearly identified candidate for federal office, are targeted to the relevant electorate, and will reach 50,000 or more persons. (Programming covered by a "press exemption," i.e., news story, commentary or editorial, is not considered an "electioneering communication.") Note that Section 527 organizations are not subject to these restrictions and may sponsor political advertising during the upcoming window.
Should you have any specific questions regarding the LUC or the FCC's political advertising rules, please contact this office.