Legislative Priorities

Direct-to-Consumer Advertising

During recent congressional deliberations about the structure of healthcare reform legislation, proposals have been discussed to eliminate the business expense deduction for the cost of pharmaceutical advertising. As Congress and the administration look for ways to pay for the overall cost of healthcare reform, the disallowance of an advertising deduction is a very strong possibility. Proposals to eliminate the business expense deduction for the cost of advertising prescription medications would impose undue restrictions on constitutionally protected commercial speech. Congress must understand the First Amendment issues raised by proposals to restrict commercial speech and refrain from passing legislation burdening the ability of advertiser-supported broadcast stations to continue serving their local communities, particularly during these challenging economic times.

FM Chips in Cell Phones

NAB continues to pursue several avenues for expanding the availability of FM service on cellular handsets, including direct discussions with cellular operators regarding market-based steps. NAB also works to educate Capitol Hill, the FCC and the Department of Homeland Security (DHS) on the benefits of deploying FM radio chips in cell phones as an effective response to the WARN Act of 2006, which directed commercial mobile service providers to voluntarily participate in an emergency warning system.

Performance Tax

Despite local radio stations contributing up to $2.4 billion annually in promotional benefits to record labels and artists every year, the recording industry continues to lobby Congress to levy a performance tax on local radio stations for the music they air to listeners for free. This performance tax could cost stations billions of dollars annually. Radio broadcasters must educate Congress on how this performance tax hurts listeners, local communities and radio stations in their home states.

Retransmission Consent

NAB remains a fierce advocate on Capitol Hill for local television stations’ rights to negotiate the terms of signal carriage. We are committed to preserving broadcasters’ opportunity to negotiate in a free marketplace for fair compensation. During the NAB State Leadership Conference in Washington, D.C., broadcasters can prepare for an anticipated 2010 policy debate and continue the advocacy campaign. We need to make sure all members of Congress understand the importance of this issue to their local broadcasters.