NEWSReport No. GN 96-2        GENERAL ACTION           January 31, 1996 

FCC GRANTED MINORITY COMMUNICATIONS INC.'S APPLICATION FOR A NEW
            NONCOMMERCIAL STATION, KUCB-FM, IN DES MOINES, IOWA

     The FCC denied Iowa Acorn Broadcasting Corp.'s (Acorn) and Black Economic
Development's (Center) applications for review and dismissed Minority Communications
Inc.'s (Minority) contingent application for review, thereby affirming the Review Board's
denial of Center's renewal application and grant of Minority's application for a new
noncommercial educational FM station in Des Moines, Iowa. 

     Despite the conviction of Center's President in Federal court for impersonation of an
attorney and for conspiracy, racketeering, and embezzlement, Center failed to report this fact,
as required, in its renewal application for KUCB-FM.  The Administrative Law Judge (ALJ)
and the Review Board found this omission be intentional.  Furthermore, the ALJ and the
Board agreed that evidence taken during this hearing showed that Center had engaged in a
"cover up" concerning its President's misconduct and that Center's witnesses lacked candor in
their testimony.  Based on these circumstances, Center's renewal application was denied. 
Center argues that the mistaken response in its renewal application was a product of
ignorance, that there is no substantial evidence for any other conclusion, and that such
carelessness without an intent or motive to mislead should not be grounds for disqualification. 
Center also contends that it did not have a full opportunity to recognize the prejudgment bias
of the ALJ and the Mass Media Bureau.  Finally, Center claims that the Board failed to
consider the unique role played by its minority-owned education station in the Des Moines'
community.

     With respect to Acorn, during the hearing, Acorn showed that Affiliated Media
Foundation Movement (AMFM) agreed to obtain financing for Acorn, that AMFM obtained a
commitment letter from the U.S. Trust for a loan of up to $700,000, and that Acorn needs a
total of $155,355 to finance its proposed station.  The ALJ and the Board concluded that
Acorn is not financially qualified because the $700,000 loan proposal shows that there has
been no meeting of minds on the applicant's financial needs, because U.S. Trust's
commitment is contingent on AMFM's continued participation in the venture and
management of the station, whereas Acorn's application proposes no management role for
AMFM, and because U.S. Trust's proposal is also contingent on obtaining approval from
potential investors without a showing that they have expressed a willingness to participate.



                                  (over)

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     Action by the Commission January 26, 1996, by Order (FCC 96-32).  Chairman
Hundt, Commissioners Quello, Barrett, Ness and Chong.

                                  - FCC -

     News Media contact: Kara Palamaras at (202) 418-0500.