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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Federal Communications Commission Washington, D.C. 20554 Released: June 3, 1997 CERTIFIED MAIL - RETURN RECEIPT REQUESTED Jasas Corporation Licensee, WBDC-TV 2121 Wisconsin Avenue, N.W., #350 Washington, DC 20007 Dear Licensee: This letter constitutes a NOTICE OF APPARENT LIABILITY FOR FORFEITURE in the amount of one hundred fifteen thousand dollars ($115,000) pursuant to Section 503(b) of the Communications Act of 1934, as amended, 47 U.S.C. 503(b), for repeated violations of the Commission's rule limiting the amount of commercial matter that may be aired during children's programming. In addition, WBDC-TV will be subject to reporting conditions during its next license term. In the Children's Television Act of 1990, Pub. L. No. 101-437, 104 Stat. 996-1000, codified at 47 U.S.C. Sections 303a, 303b and 394, Congress directed the Commission to adopt rules, interalia, limiting the amount of commercial matter that television stations may air during children's programming, and to consider in its review of television license renewals the extent to which the licensee has complied with such commercial limits. Pursuant to this statutory mandate, the Commission adopted Section 73.670 of the Rules, 47 C.F.R. 73.670, which limits the amount of commercial matter which may be aired during children's programming to 10.5 minutes per clock hour on weekends and 12 minutes per clock hour on weekdays. The Commission also reaffirmed and clarified its long-standing policy that the entire duration of "a program associated with a product, in which commercials for that product are aired" (a "program-length commercial") would be counted as commercial matter for the purpose of the children's television commercial limits. Children's Television Programming, 6 FCC Rcd 2111, 2118, recon. granted in part, 6 FCC Rcd 5093, 5098 (1991). The commercial limits became effective on January 1, 1992. Children's Television Programming, 6 FCC Rcd 5529, 5530 (1991). On November 29, 1993, the Commission granted an application for assignment of license for Station WBDC-TV (formerly WFTY-TV), Washington, DC, from Channel 50, Inc. to Jasas Corporation ("Jasas")(BALCT-931116KF). Commission records indicate that that assignment was consummated on November 30, 1993. On June 3, 1996, Jasas filed an application for renewal of license (FCC Form 303-S) for station WBDC-TV (File No. BRCT-960603KZ). In response to Section III, Question 4 of that application you state that during the previous license term the station failed to comply with the limitations on commercial matter in children's programming specified in Section 73.670 of the Commission's Rules. Exhibit 3 to that application indicates that between November 30, 1993 (the date that Jasas Corporation consummated the assignment and became the licensee of the station), and March 29, 1996, WBDC-TV violated the children's television commercial limits on 450 occasions. Of these 450 violations, 45 were less than 30 seconds in duration; 168 were 30 seconds or longer but less than one minute in duration; 100 were one minute or longer but less than one minute and 30 seconds in duration; 46 were one minute and 30 seconds or longer but less than two minutes in duration; 69 were two minutes or longer but less than three minutes in duration; 20 were longer than three minutes in duration; and two were program-length commercials. With respect to these overages, you assert that, from the date of consummation of the assignment until September 24, 1994, "management services" provided by the former owners "included what appeared to be a two-step process verifying that the station had complied with" the children's television commercial limits; that on January 1, 1996, the station's traffic manager began a review of WBDC-TV's programming logs to confirm the station's compliance with the children's television commercial limits; that as a result of violations discovered in the course of that review, WBDC-TV conducted an audit of its logs back to January 1, 1992, and discovered the violations reported in its renewal application; that, until initiation of the January 1, 1996 review, "Jasas had no reason to doubt that th(e) children's compliance system was functioning properly"; and that "Jasas had employed reasonable methods to ensure compliance with the commercial limitations, but two different employees on whom Jasas relied to carry out those procedures simply failed to carry out their responsibilities." Finally, Jasas asserts that it has installed new equipment and established new procedures to ensure that the violations will not be repeated. WBDC-TV's record during the portion of its license term from November 30, 1993 through March 29, 1996, exceeding the Commission's commercial limits on children's television programming on 450 occasions constitutes a repeated violation of Section 73.670 of the Commission's rules. Accordingly, pursuant to Section 503(b) of the Communications Act, Jasas Corporation is hereby advised of its apparent liability for forfeiture in the amount of one hundred fifteen thousand dollars ($115,000) for its apparent repeated violation of Section 73.670 of the Commission's Rules. The amount specified was reached after consideration of the factors set forth in Section 503(b)(2) of the Communications Act, and, in particular, the following criteria: (1) the number of instances of commercial overages; (2) the length and nature of each such overage; (3) the period of time over which such overages occurred; (4) whether or not the licensee established an effective program to ensure compliance; and (5) the specific reasons that the licensee gives for the overages. These criteria are appropriate in analyzing violations of the commercial limits during children's programming, since they take into account, inter alia, "the nature, circumstances, extent, and gravity of the violation, and, with respect to the violator, the degree of culpability", as required under 503(b)(2)(D) of the Communications Act. See Clear Channel Television, Inc. (KTTU(TV)), 10 FCC Rcd 3773 (1995); Northstar Television of Erie, Inc. (WSEE-TV), 10 FCC Rcd 3779 (1995). The 450 occasions on which WBDC-TV exceeded the children's television commercial limits is an extraordinarily high number of violations. Indeed, this is the second highest number of violations of the children's television commercial limits reported since the limits became effective on January 1, 1992. Moreover, 235 of the overages were one minute or longer in duration; 89 of those were longer than two minutes in duration; 20 of those were longer than three minutes in duration; and two others were program-length commercials. Overages of this nature and magnitude mean that children have been subjected to commercial matter greatly in excess of the limits contemplated by Congress when it enacted the Children's Television Act of 1990. Further, the violations considered here occurred frequently and routinely from November 30, 1993, when Jasas began its operation of the station, until March 29, 1996, an exceptionally long period of two years and four months. With regard to whether WBDC-TV had established an effective program to ensure compliance with the children's television commercial limits, Jasas asserts that it "had employed reasonable methods to ensure compliance with the commercial limitations...." However, prior to the review of WBDC-TV's programming logs conducted on January 1, 1996, Jasas does not cite a single policy established, procedure implemented or action taken to determine whether WBDC-TV was in compliance with the children's television commercial limits, or to establish policies and procedures to ensure such compliance. It appears that Jasas merely assumed that the previous licensee's "compliance system was functioning properly". Further, Jasas' effort to place responsibility for the violations on the previous licensee must be rejected in view of the facts that (i) Jasas became responsible for all station operations and compliance with all Commission rules and policies on November 30, 1993; (ii) the violations continued undetected and unabated from September 27, 1994, when the former owners ceased providing "management services", until January 1, 1996, when the program log review was initiated, a period of fifteen months; and (iii) even after January 1, 1996, when Jasas became aware of the substantial inadequacy of the station's then-existing compliance monitoring program, the violations continued undiminished for another three months, until March 29, 1996. Finally, the fact that WBDC-TV may have implemented policies and procedures to prevent violations of the Commission's children's television rules and policies after March 29, 1996, does not relieve Jasas of responsibility or liability for the extraordinarily high number of violations which had already occurred during its operation of the station. International Broadcasting Corp., 19 FCC 2d 793, 794 (1969); KEVN, Inc., 8 FCC Rcd 5077, 5078 (1993); R&R Media Corporation (WTWS(TV)), 9 FCC Rcd 1715, 1716 (1994); Mountain States Broadcasting, Inc. (KMSB-TV), 9 FCC Rcd 2545, 2546 (1994); WHP Television, L.P., 10 FCC Rcd 4979, 4980 (1995). Consideration of all of these factors warrants a forfeiture in the above-specified amount of $115,000. Cf., KTTU(TV), supra 10 FCC Rcd at 3774 ($125,000 forfeiture for 581 violations); Stainless Broadcasting Co. (WICZ-TV), 10 FCC Rcd 9961 (1995)($110,000 forfeiture for 376 violations). Given the breadth of the violations in this case and the substantial failure of the licensee to establish effective monitoring and compliance procedures, we believe that an additional remedial measure is warranted in order to ensure that Station WBDC-TV complies with our limitations on commercials during children's programming in the future. Accordingly, we will impose reporting conditions. In Stainless (WICZ-TV), id., reporting conditions were imposed where the licensee established policies and procedures which prevented subsequent violations immediately after it discovered that it had committed 376 violations over a period of 22 months. The facts in the instant case are more egregious, in that WBDC-TV committed 450 violations over a period of 28 months, including 29 violations committed during a three-month period after it had discovered that its compliance program was substantially inadequate. Therefore, during its next license term, WBDC- TV will be required to report to the Commission, on a quarterly basis, whether it has complied with our limits on commercial matter during children's programming. Moreover, any noncompliance will have to be described in detail. Notwithstanding the substantial nature of the violations at issue here and the severity with which we regard them, we do not believe that these violations constitute an impediment to grant of the application for renewal of license for Station WBDC-TV. There is no suggestion that the licensee has acted in bad faith and we do not believe the violations reflect a deliberate disregard for Commission requirements. Rather, these violations reflect the licensee's failure to confirm or take prompt measures to ensure compliance with the children's television commercial limitations. Therefore, we find Jasas qualified to remain a Commission licensee and conclude that grant of the instant application would serve the public interest, convenience and necessity. Accordingly, the license renewal application of Jasas Corporation, for Station WBDC-TV, Washington, DC, File No. BRCT-960603KZ, IS HEREBY GRANTED for a term to expire on October 1, 2004, subject to the condition that: Station WBDC-TV shall submit to the Commission an original and one copy of the following information within thirty (30) days after the end of each calendar quarter during its next license term: (a) A statement certifying whether the licensee has complied with the limits on commercial matter as set forth in 47 C.F.R.  73.670. (b) A list of each segment of programming, 5 minutes or more in duration, designed for children 12 years old and under and broadcast during the license period which contained commercial matter in excess of the limits set forth in 47 C.F.R.  73.670. For each such programming segment so listed, indicate the length of the segment, the amount of the commercial matter contained therein, and an explanation of why the limits were exceeded. With respect to this forfeiture proceeding, you are afforded a period of thirty (30) days from the date of this letter "to show, in writing, why a forfeiture penalty should not be imposed or should be reduced, or to pay the forfeiture. Any showing as to why the forfeiture should not be imposed or should be reduced shall include a detailed factual statement and such documentation and affidavits as may be pertinent." Section 1.80(f)(3) of the Commission's Rules, 47 C.F.R. 1.80(f)(3). Other relevant provisions of Section 1.80(f)(3) of the Commission's Rules are summarized in the attachment to this letter. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary Enclosures cc: Frank R. Jazzo, Esq. kwbdcfr3.rel MSolberg/dsb/vsd/MMB n:\msolberg\kwbdcfr3.rel cc address: Jasas Corporation Licensee, WBDC-TV c/o Frank R. Jazzo, Esq. Fletcher, Heald & Hildreth 11th Floor 1300 North 17th Street Rosslyn, VA 22209-3801 $// JASAS CORP., WBDC-TV (Washington, DC) FCC 97-190 //$ $/ 300.503(b) FORFEITURES (NAL) /$ $/ 73.670 COMMERCIAL LIMITS ON CHILDREN'S PROGRAMS /$