Preventing Illegal Radio Abuse Through Enforcement Act Annual Report to Congress January 24, 2023 The Commission submits this report in accordance with its obligations under the Preventing Illegal Radio Abuse Through Enforcement Act (PIRATE Act or Act).1 Section 511(c) of the PIRATE Act requires the Commission, not later than one year after enactment and annually thereafter, to submit to the Committee on Commerce, Science, and Transportation of the U.S. Senate and the Committee on Energy and Commerce of the U.S. House of Representatives (together, the Committees) a report on (a) implementation of the PIRATE Act, and (b) the associated enforcement activities for the previous fiscal year.2 Accordingly, we are submitting this third annual PIRATE Act report to the Committees. Background. Pirate radio broadcasting is the unauthorized transmission of radio frequency signals on the frequencies in or adjacent to the FM and AM radio bands. Pirate radio causes a number of harms, including causing harmful interference to licensed radio station signals and not transmitting public safety emergency alert messages. Enforcement against pirate radio broadcasters has proven difficult historically. To enhance enforcement capabilities, Congress enacted the PIRATE Act on January 24, 2020. The PIRATE Act: • Increases the maximum monetary penalties for pirate radio operators, to $100,000 for a single act of violation, up to a total of $2 million;3 • Grants the FCC additional enforcement authority over property owners and managers that permit pirate radio stations to operate from their property; • Requires the Commission to conduct annual enforcement “sweeps” of pirate radio in five markets, with additional follow-up within six months of the sweeps; • Requires the Commission to build a database of pirate radio stations; and • Requires the Commission to submit an annual report to Congress on the implementation of the PIRATE Act. Consistent with the Commission’s first and second PIRATE Act reports (Jan. 4, 2021, Jan. 24, 2022), through mid-FY2022, the Commission’s implementation of the PIRATE Act had been limited by two events beyond the agency’s control: (1) lack of funding to implement the PIRATE Act,4 and (2) the coronavirus (COVID-19) pandemic, which struck shortly after Congress passed the PIRATE Act. The COVID-19 pandemic significantly limited the Commission’s ability to conduct in-person investigations, 1 Preventing Illegal Radio Abuse Through Enforcement Act, Pub. L. No. 116-109, 134 Stat. 3 (2020) (codified at 47 U.S.C. § 511). 2 47 U.S.C. § 511(c). 3 Per the inflation adjustments that apply to all Commission statutory maximum forfeiture, these maximums are now $115,802 and $2,316,034. See 47 CFR 1.80(b)(6); Amendment of Section 1.80(b) of the Commission’s Rules, Adjustment of Civil Monetary Penalties to Reflect Inflation, Order, DA 22-1356, 2022 WL 18023008, at *5 (EB Dec. 23, 2022); see also, Annual Adjustment of Civil Monetary Penalties to Reflect Inflation, 88 Fed. Reg. 783 (Jan. 5, 2023) (setting January 15, 2023, as the effective date for the increases). 4 The Congressional Budget Office and the Commission both estimated that it would cost $11 million for the Commission to implement the Act. Congressional Budget Office, Cost Estimate, S. 1228, PIRATE Act, (June 7, 2019), https://www.cbo.gov/system/files/2019-06/s1228.pdf (CBO Estimate); Federal Communications Commission Budget Request for FY2021: Hearing Before the Subcommittee on Financial Services and General Government, House Committee on Appropriations, 3 (Statement of Ajit Pai, Chairman, Federal Communications Commission), https://docs.fcc.gov/public/attachments/DOC-363663A1.pdf. including the required pirate radio investigations.5 Last year’s PIRATE Act report noted that, as the Commission’s pandemic response became less restrictive, the Commission anticipated using its additional flexibility to return to undertaking more investigations in 2022. On March 15, 2022, the Consolidated Appropriations Act, 2022 was signed into law.6 It appropriated $5 million to the FCC to implement the PIRATE Act. Having received this funding, the Commission developed an implementation plan focused on the following areas: consistent with the Commission’s FY22 appropriation, hiring additional staff to implement the PIRATE Act, with an emphasis on hiring Field Agents in or near offices where concentrated enforcement activity (sweeps) will occur; purchasing or preparing to purchase additional investigative vehicles (when they become available) and equipment for the additional Field Agents; developing the public-facing database of pirate radio stations as mandated by the PIRATE Act; and initiating the mandated enforcement sweeps.7 Hiring. To date, the Commission has posted six full-time positions – five Field Agents and one Field Counsel, with additional hires planned for the future. Equipment Purchasing. Commission staff has continued to develop additional customized mobile direction-finding (MDFX) investigative vehicles for the additional Field Agent hires to enable them to carry out their investigative responsibilities. The Commission is prepared to purchase six vehicles to support the additional staff that will be hired (five initial hires, with additional Field Agents toward the end of FY2023). Purchase of the additional six vehicles has been delayed, however, until a GSA purchasing window opens. Until the additional purchases can be completed, the Commission will temporarily retain older, existing vehicles in its fleet that were scheduled to be excessed. Commission staff has also begun to purchase and develop investigative tools that will be integrated into the new MDFX vehicles after they are purchased when the GSA purchasing window opens. We have also purchased other equipment used by new Field Agents. Pirate radio station and licensed radio station public-facing database. The database was deployed on the FCC’s website on January 23, 2023. Pirate sweeps. The PIRATE Act requires the Commission to conduct enforcement “sweeps” annually in the five markets with the most pirate radio operations. Commission staff has reviewed pirate radio complaints in order to identify the current top five markets with the most pirate radio operations. The Commission developed a plan for pirate sweeps, which was initiated in the fourth quarter of 2022. Enforcement against property owners and property managers. The PIRATE Act granted the Commission authority to pursue enforcement sanctions against any party that willingly and knowingly “suffers to be done,” or allows, pirate radio activities. This grant of authority provides the Commission with the ability to take enforcement action against property owners and property managers that, after receiving notice of pirate radio transmissions emanating from properties that they own or control, continue to allow such activity. FCC Enforcement Bureau Field staff have issued notices to inform property owners and property managers of apparent pirate radio broadcasts from their property and to 5 Specifically, in its initial response to the pandemic, the Commission adopted a policy whereby Field Agent investigators were only authorized to “perform critical, mission essential functions that cannot be performed remotely.” https://www.fcc.gov/coronavirus (last visited Jan. 18, 2023). Mandatory telework was lifted on December 1, 2021, but most agency employees continue on telework status, consistent with the “maximum telework” policy now in effect. 6 Public Law No. 117-103. 7 The FCC implementation plan also recommended that the Commission assess its initial pirate sweep for to determine if additional outreach would be effective in reducing pirate radio operations. 2 describe the potential consequences to the property owner or manager if such activity does not cease. In FY2022, the Bureau issued 21 such notices. Because pirate radio stations often cease operating for a period of time but then return, the Bureau will continue to monitor the properties for which notices were provided and will initiate enforcement action where appropriate. With this Report, the Commission satisfies the obligation pursuant to section 2 of the PIRATE Act to submit a report to Congress on (a) implementation of the PIRATE Act and (b) the associated enforcement activities for the previous fiscal year.8 8 47 U.S.C. § 511(c). 3