******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In re Applications of ) ) Journal Broadcast Group, Inc. )File Nos. BR-970130YN )BRH-970130YM For Renewal of Licenses for )BRH-970130YL Stations KOSR(AM)/KEZO-FM/KKCD(FM), ) Omaha, Nebraska ) MEMORANDUM OPINION AND ORDER AND NOTICE OF APPARENT LIABILITY Adopted: October 7, 1997 Released: October 17, 1997 By the Commission: I. INTRODUCTION 1. The Commission has before it for consideration: (i) the license renewal applications of Journal Broadcast Group, Inc. for Stations KOSR(AM)/KEZO-FM/KKCD(FM), Omaha, Nebraska; and (ii) the licensee's response to a staff letter of inquiry. II. DISCUSSION 2. Section 73.2080 of the Commission's Rules, 47 C.F.R.  73.2080, requires that a broadcast licensee refrain from employment discrimination and establish and maintain an Equal Employment Opportunity ("EEO") program reflecting positive and continuing efforts to recruit and promote qualified women and minorities. When evaluating EEO performance, the Commission focuses on the licensee's efforts to recruit and promote qualified women and minorities and the licensee's ongoing assessment of its EEO efforts. Such an assessment enables the licensee to take corrective action if qualified women and minorities are not present in the applicant and interview pools. The Commission also focuses on any evidence of discrimination by the licensee. See Section 73.2080(a), (b), and (c) of the Commission's Rules, 47 C.F.R.  73.2080(a), (b), and (c). 3. Review of the licensee's 1997 EEO Program Report and inquiry response reveals that KOSR(AM)/KEZO-FM/KKCD(FM) had 38 full-time hiring opportunities, 29 for upper-level positions, during the period between February 1, 1995 and June 1, 1997. The licensee could document recruitment only with respect to 26 vacancies (19 upper-level). The licensee could not document recruitment with respect to 12 of the 16 vacancies which were filled during the period between February 1, 1995 and December 31, 1995, when the stations were managed by a "hold-over" General Manager following the assignment of the stations to the licensee. The licensee explains that while the sources on its job referral list were routinely contacted with announcements of new job openings during 1995, no applicant flow records were retained for 12 of the 16 vacancies filled that year. The licensee indicates that when a new General Manager was hired in January 1996, new procedures were instituted to ensure that applicant flow data are maintained for all job openings. Nevertheless, because the licensee was unable to document recruitment for the 12 vacancies and there is no basis for excusing this failure of documentation, we are unable to credit its efforts for those vacancies. See Act III Broadcasting of Nashville, Inc., 11 FCC Rcd 1172 (1995); Emmis AM License Corporation of Indianapolis, FCC 97-278 (released August 13, 1997). 4. With respect to the 26 vacancies (19 upper-level) for which recruitment was documented, the licensee indicates that it recruited using all of the sources on its job referral list, which includes 11 minority/female sources, three minority sources and one female source, plus local newspapers and radio advertisements. The licensee reports that the stations received a total of 505 applicants for the 38 vacancies, including 389 applicants for the 29 upper-level vacancies. The licensee was unable to identify the race or ethnic origin of 301 applicants (59.9%), including 225 (57.7%) of the 390 applicants who applied after January 1996, when the licensee instituted new procedures to ensure that applicant flow data are maintained. However, the data which the licensee did provide indicate that it attracted 16 minority applicants overall (3.2%) and 13 minority applicants for upper-level vacancies (3.3%). The licensee interviewed a total of 159 applicants, including nine minorities (5.7%); of that total, 118 applicants, including six minorities (5.1%), were interviewed for upper-level vacancies. Minorities were present in 11 (32.4%) of 34 applicant pools overall, and eight (32%) of 25 upper-level applicant pools. Minorities were present in eight (23.5%) interview pools overall, and five (20%) upper-level interview pools. The licensee was able to identify the referral source for only 97 applicants (19.2%) and 49 interviewees (30.8%). In addition, the licensee could identify the referral source for only one minority applicant/interviewee. The licensee reports that it hired six minorities, including four minorities for upper-level positions. 5. Regarding self-assessment, the licensee indicates in its inquiry response that it was dissatisfied with the hold-over General Manager's minority recruitment efforts and results during 1995. Consequently, when the new General Manager was hired in January 1996, the licensee implemented a number of new efforts to improve minority recruitment. Specifically, the licensee states that it has participated in an annual job fair sponsored by the Urban League of Nebraska for the past two years. Additionally, the licensee states that it co-sponsored a job fair with other Omaha broadcasters and the Radio Advertising Bureau at the University of Nebraska-Omaha. The licensee reports that this job fair generated approximately 115 referrals, of whom 25% were minorities. However, our review of the licensee's inquiry response reveals that none of the minority referrals from the job fairs were considered in connection with the full-time vacancies filled during the review period. The licensee also asserts that it has developed a minority internship program for students at area colleges, universities and vocational- technical schools, which is scheduled to begin in the fall of 1997; that it has established the practice of encouraging employees to refer minorities, which has resulted in the hiring of a Black account executive, a Black traffic assistant and an Hispanic sales assistant; and that it has added an urban black-formatted radio station to its list of recruitment sources. 6. After reviewing the record before us, we conclude that there are no substantial and material questions of fact warranting designation for hearing. See Astroline Communications Co. Ltd. Partnership v. FCC, 857 F.2d 1556 (D.C. Cir. 1988). Moreover, there is no evidence that the licensee engaged in employment discrimination. The licensee recruited, interviewed and hired minorities during the license term. Therefore, because the licensee is otherwise qualified, renewal of the licenses is in the public interest. 7. We recognize that the licensee has made positive efforts to self-assess and improve its EEO program since January 1996. In particular, we note that job fairs and minority internships can be good sources of minority applicants, and we encourage the licensee to continue its efforts in these areas. Nevertheless, we find the licensee's EEO efforts since acquiring these stations to be inadequate. The licensee failed to document and establish recruitment efforts for 12 (31.6%) of 38 vacancies during the review period. With regard to the 26 vacancies for which recruitment was documented, 22 of which were filled after the licensee began to make efforts to improve its EEO program, the licensee's recruitment efforts were largely unproductive in eliciting minority applicants. The licensee's records showed that only 16 (3.2%) of its 505 applicants and nine (5.7%) of its 159 interviewees were minorities. Minorities were shown to be present in only 11 (32.4%) applicant pools and eight (23.5%) interview pools. Although the licensee received numerous minority referrals from the job fair which it co- sponsored with the Radio Advertising Bureau, none of these minority referrals were considered in connection with the full-time vacancies filled during the review period. Furthermore, while the licensee asserts that it instituted new procedures in January 1996 to ensure that recruitment data are maintained for all job openings, the licensee's recruitment records are still largely incomplete. The licensee was unable to identify the race or ethnic origin of 225 (57.7%) of the applicants who applied after the new procedures were instituted. In addition, the licensee could identify the referral source for only 97 (19.2%) applicants and 49 (30.8%) interviewees. Without these data, the licensee was unable to engage in meaningful self-assessment as required by our EEO Rule, 47 C.F.R.  73.2080. 8. We believe that the record of Stations KOSR(AM)/KEZO-FM/KKCD(FM) is similar to that of WPMI(TV), Mobile, Alabama, in Clear Channel Television, Inc., 11 FCC Rcd 4077 (1996). In that case, the licensee failed to document recruitment for 12 (32.4%) of 37 hiring opportunities. For those vacancies where recruitment was documented, the licensee's recruitment efforts were largely unsuccessful in attracting qualified minority applicants. Only 4.3% of the station's applicants and 17% of the station's interviewees were minorities. Minorities were present in only 12 (32.4%) of 37 applicant and 11 (29.4%) of 37 interview pools. The licensee also failed to engage in meaningful self-assessment of its EEO program. We accordingly renewed the license for WPMI(TV) subject to reporting conditions and issued a Notice of Apparent Liability in the amount of $10,000. 9. KOSR(AM)/KEZO-FM/KKCD(FM) and WPMI(TV) have comparable staff sizes. KOSR(AM)/KEZO-FM/KKCD(FM) had an average of 42 full-time employees, while WPMI(TV) had an average of 40 full-time employees during the respective review periods. Additionally, the licensees of KOSR(AM)/KEZO-FM/KKCD(FM) and WPMI(TV) filled a similar number of vacancies (38 and 37, respectively) and were unable to document recruitment for a similar percentage of vacancies (31.6% and 32.4%, respectively). The licensees of KOSR(AM)/KEZO-FM/KKCD(FM) and WPMI(TV) also attracted a similar percentage of minority applicants (3.2% and 4.3%, respectively) and included minorities in the same percentage of applicant pools (32.4%). We acknowledge that the licensee of KOSR(AM)/KEZO-FM/KKCD(FM) has begun to make positive efforts to improve its EEO program. We also recognize that WPMI(TV) is located in an area with a significantly greater minority labor force (25.5% as compared to 10.2%). However, we note that WPMI(TV)'s recruitment efforts resulted in a greater percentage of minority interviewees (17% as compared to 5.7%) and a greater percentage of minority-inclusive interview pools (29.7% as compared to 23.5%). Moreover, the recordkeeping of KOSR(AM)/KEZO-FM/KKCD(FM) was substantially worse. In this regard, the licensee of KOSR(AM)/KEZO-FM/KKCD(FM) was unable to identify the race or ethnic origin of 61.1% of its applicants and was unable to identify the referral source for 80.8% of its applicants and 69.2% of its interviewees, shortcomings that greatly impeded the stations' ability to self-assess. In contrast, the recordkeeping of WPMI(TV) was complete for all vacancies for which recruitment was documented. As further evidence of its poor self-assessment, the licensee could identify the referral source of only one of its minority applicants/interviewees. In view of all of the foregoing factors and broadcasters' familiarity with our long-standing EEO Rule, we conclude that a Notice of Apparent Liability for a $10,000 forfeiture is warranted. Further, we impose reporting conditions in order to monitor the stations' recordkeeping and self-assessment efforts. III. CON CLUSION 10. Upon review of the record, we find that no hearing is warranted and that grant of the renewal applications for KOSR(AM)/KEZO-FM/KKCD(FM) is in the public interest. However, because the EEO efforts of KOSR(AM)/KEZO-FM/KKCD(FM) were deficient, we grant renewal subject to a Notice of Apparent Liability for $10,000. We also impose reporting conditions in order to monitor the stations' recordkeeping and self-assessment efforts. IV. ORDERING CLAUSES 11. ACCORDINGLY, IT IS ORDERED that the license renewal applications filed by Journal Broadcast Group, Inc. for Stations KOSR(AM)/KEZO-FM/KKCD(FM) ARE GRANTED subject to the EEO reporting conditions specified herein and, pursuant to Section 503 of the Communications Act of 1934, as amended, 47 U.S.C.  503, a NOTICE OF APPARENT LIABILITY FOR FORFEITURE in the amount of $10,000. 12. IT IS FURTHER ORDERED that the licensee of Stations KOSR(AM)/KEZO- FM/KKCD(FM) submit to the Commission an original and one copy of the following information on February 1, 1998, February 1, 1999, and February 1, 2000: (a) Two lists divided by full-time and part-time vacancies during the 12 months preceding January 1, 1998, for the first report, January 1, 1999, for the second report, and January 1, 2000, for the third report, indicating the job title and FCC job category of the position, the date of hire, the race or national origin, sex and the referral source of each applicant and interviewee for each vacancy and the race or national origin and sex of the person hired. These lists should also note which recruitment sources were contacted; (b) A list of employees as of the January 1, 1998, payroll period for the first report, January 1, 1999, payroll period for the second report, and January 1, 2000, payroll period for the third report, by job title and FCC job category indicating full-time or part-time status (ranked from highest paid classification), date of hire, sex and race or national origin; and (c) Details concerning the station's efforts to recruit minorities and women for each position filled during the 12 months preceding January 1, 1998, for the first report, January 1, 1999, for the second report, and January 1, 2000, for the third report, including identification of sources used and indicating whether any of the applicants declined actual offers of employment. In addition, the licensee may submit any relevant information with regard to the station's EEO performance and efforts thereunder. 13. The reports are to be filed with the Acting Secretary of the Commission for the attention of the Mass Media Bureau's EEO Branch. 14. IT IS FURTHER ORDERED that the Mass Media Bureau send copies of this Memorandum Opinion and Order and Notice of Apparent Liability by Certified Mail -- Return Receipt Requested -- to Journal Broadcast Group, Inc. 15. Regarding the forfeiture proceeding, the licensee of Stations KOSR(AM)/KEZO- FM/KKCD(FM) may take any of the actions set forth in Section 1.80 of the Commission's Rules, 47 C.F.R.  1.80, as summarized in the attachment to this Order. Any comments concerning ability to pay should include those financial items set forth in the attachment. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary