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                         Before the
              Federal Communications Commission
                   Washington, D.C. 20554

In the Matter of                  )
DAYSTAR PUBLIC RADIO, INC.        )   EB-01-IH-0484
                                 )   Facility #9714
Licensee of Noncommercial         )
Educational Station WKSG(FM),     )
Cedar Creek, Florida              )


     Adopted:  July 3, 2002                  Released:  July 
8, 2002

By the Chief, Investigations and Hearings Division, 
Enforcement Bureau:

                       I. Introduction

     1.   In this  Order, we admonish Daystar  Public Radio, 
Inc.  (``Daystar''), licensee  of noncommercial  educational 
station  WKSG(FM), Cedar  Creek,  Florida, for  broadcasting 
advertisements and  conducting impermissible  fundraising in 
violation of Section 399B of the Communications Act of 1934, 
as  amended (``the  Act''), 47  U.S.C. §  399b, and  Section 
73.503  of  the  Commission's  rules, 47  C.F.R.  §  73.503.  
Daystar  responded to  our April  30, 2002,  inquiry by  its 
submission filed  May 17, 2002.  We  have carefully reviewed 
the record, including Daystar's  response, and conclude that 
the  licensee  has  violated  the  pertinent  statutory  and 
Commission underwriting  rule provisions.  While  we believe 
that no monetary sanction is warranted at this time, we find 
that an  admonishment is necessary to  redress the statutory 
and rule violations.  

                       II.  Background

     2.   Advertisements are  defined by the Act  as program 
material broadcast  "in exchange  for any  remuneration" and 
intended to  "promote any service, facility,  or product" of 
for-profit entities.   47 U.S.C. §399b(a).  As  noted above, 
noncommercial   educational  stations   may  not   broadcast 
advertisements.    Although   contributors   of   funds   to 
noncommercial stations may  receive on-air acknowledgements, 
the Commission  has held  that such acknowledgements  may be 
made  for  identification  purposes  only,  and  should  not 
promote the contributors' products, services, or business.  

     3.   Specifically, such  announcements may  not contain 
comparative or qualitative  descriptions, price information, 
calls to action, or inducements to buy, sell, rent or lease.  
See Public  Notice, In the  Matter of the  Commission Policy 
Concerning   the   Noncommercial   Nature   of   Educational 
Broadcasting  Stations (1986),  republished, 7  FCC Rcd  827 
(1992) (``Public Notice'').  At  the same time, however, the 
Commission has acknowledged that it is at times difficult to 
distinguish between language that promotes versus that which 
merely identifies the underwriter.  Consequently, it expects 
only that licensees exercise reasonable, good-faith judgment 
in this area.  See Xavier University, 5 FCC Rcd 4920 (1990).

     4.   In addition, the Commission has narrowly construed 
what  constitutes permissible  fundraising on  noncommercial 
stations.  Specifically,  the Commission  has held  that, in 
the  absence   of  a  waiver,  noncommercial   stations  are 
prohibited  from conducting  any fundraising  activity which 
substantially alters or suspends  regular programming and is 
designed  to raise  support for  any entity  other than  the 
station  itself,   and  for  purposes  other   than  station 
operations.    See   Commission    Policy   Concerning   the 
Noncommercial  Nature of  Educational Broadcasting  Stations 
(``Policy Statement''),  90 FCC  2d 895, 907  (1982), recon. 
granted,  97   FCC  2d   255,  264-65  (1984);   Ohio  State 
University, 38 RR 2d 22 (1976).

                      III.  Discussion

     5.   The key  facts in  this case  are not  in dispute.  
Daystar admits that the station broadcast the five sponsored 
announcements  described in  our letter  of inquiry  and set 
forth in the attached transcript; that the sponsors are for-
profit  entities; and  that  it  received consideration  for 
airing the messages.  The  station also acknowledges that it 
broadcast a  seventeen-minute interview with  the proprietor 
of for-profit EZ Access Transporters, Inc., during which the 
station announcer  solicited investment funds to  assist the 
newly  founded  company in  producing  its  product, the  EZ 
Tilter  Platform.  Moreover,  Daystar acknowledges  that the 
announcements, ``as  a whole,''  do not comply  with Section 
399B of the  Act, and the pertinent  Commission policies and 
rules.  It  also states that the  interview ``violate[s] FCC 
policies.''  Daystar contends that it assumed its management 
``better understood''  the appropriate ``parameters  of `on-
air  acknowledgments' ''  and was  disappointed to  discover 
management's grasp  of this issue was  faulty.  The licensee 
asserts that it has since taken steps to ensure underwriting 
rule   compliance   by    revising   the   station's   donor 
acknowledgment policy and practice.  It also states that the 
fundraising  interview  ``would  never get  by  the  present 
criteria of WKSG policies.''

     6.   We    find   that    the   subject    underwriting 
announcements exceed the bounds of what is permissible under 
Section  399B of  the  Act, and  the Commission's  pertinent 
rules  and   policies,  in   light  of   the  ``good-faith'' 
discretion  afforded  licensees  under  Xavier,  supra.   In 
addition,  we find  that  Daystar  engaged in  impermissible 
fundraising through the  seventeen-minute interview with the 
proprietor  of  for-profit  EZ  Access  Transporters,  Inc., 
during  which  the  station announcer  solicited  investment 
funds to assist  the newly founded company  in producing its 
product, the  EZ Tilter Platform.   In this regard,  we note 
that   the  fact   that   the  licensee   did  not   receive 
consideration from  broadcasting these fundraising  pleas is 
not  relevant to  the  question of  whether the  fundraising 
appeal itself  was appropriate.   Solicitations of  the type 
conducted here are prohibited. 
                      IV.  Ordering Clauses

     7.   In  view  of the  foregoing,  we  conclude that  a 
sanction is  appropriate.  Accordingly,  IT IS  ORDERED that 
Daystar  Public  Radio,   Inc.,  licensee  of  noncommercial 
educational  station  WKSG(FM),  Cedar  Creek,  Florida,  IS 
ADMONISHED   for   broadcasting   advertisements   and   for 
conducting impermissible fundraising in violation of Section 
399B of the Act, 47 U.S.C. § 399B, and Section 73.503 of the 
Commission's rules, 47 C.F.R. § 73.503.

     8.   IT  IS  FURTHER  ORDERED   that  a  copy  of  this 
Memorandum  Opinion and  Order shall  be sent,  by Certified 
Mail --  Return Receipt Requested, to  Daystar Public Radio, 
Inc., 1403 Indian River Avenue, Titusville, Florida, 32780.


                         Charles W. Kelley
                         Chief, Investigations  and Hearings 
                         Enforcement Bureau



The   following  text   was  transcribed   from  audio-taped 
recordings  of   underwriting  announcements   broadcast  on 
WKSG(FM), Cedar Creek, Florida, on July 30, 2001:

1.   Precision  Air   Heating  and  Air   Conditioning   (60 

For every  system purchased,  Precision Air Heating  and Air 
Conditioning will  donate $100.00  to the  Bullet-Proof Vest 
Fund, Inc., a not-for-profit  corporation.  Donations may be 
made at any one of the eleven locations of Sun Trust Bank. . 
. .  Again, thank you to Dave Leonard at Precision Air, home 
of  the   ``Trane  Home   Heating  and   Cooling  Systems.''  
Precision Air  focuses on  service, and  when you  call, you 
will speak to a live service representative, 24 hours a day, 
seven days  a week.   That's Precision  Air Heating  and Air 
Conditioning, 3330 S.E. 58th Avenue. . . .  The phone number 
is 352-624-4000.  That's 624-4000.   And when you call, they 
haul.  AC decision? Call Precision.

2.   Lord's Gym  (90 seconds.) 

Why settle for  being merely physically fit when  you can be 
spiritually  fit as  well?   At Lord's  Gym,  we believe  in 
giving you  the tools you need  to be the person  you always 
knew you could be.  It's  more than the recumbent bikes, the 
elliptical    trainers,     and    stair-steppers.     We're 
revolutionizing  the  fitness  industry with  our  Christian 
fitness center, right here in north central Florida.  

Lord's  Gym  is  more  than  you expect.   We  adhere  to  a 
different  and, we  feel, more  complete vision  of what  it 
means to be  ``in shape.''  The staff at Lord's  Gym is here 
to help you.  Our personal trainers offer comprehensive one-
on-one training  sessions, and they look  forward to helping 
you maximize your potential¾inside and out.  

And don't forget Kid's Power.  The exercise program just for 
kids, aged  6-12.  It's  a circuit training  workout.  Kid's 
Power is  a comprehensive fitness program  for children aged 
6-12  years  old.   Non-competitive games,  activities,  are 
implemented in a fast-paced 45-minute  class.  As many as 20 
children can participate in  Kid's Power.  It's Kid's Power, 
growing  strong together,  at Lord's  Gym.  Located  at 2467 
S.W. 27th Avenue, in the Shady Oaks Plaza.  The phone number 
at Lord's Gym is 352-629-7757.

3.   All-County Plumbing  (45 seconds.)  

I  want  to  say  thank  you to  my  friends  at  All-County 
Plumbing. . . .  The entire crew out there is just something 
special.   All-County   Plumbing  specializes   in  repairs, 
remodels, new construction, 24-hour service, sewer and drain 
cleaning.  They are Marion  County's premier drain surgeons.  
That's  right¾you call  them  at  687-0806.  687-0806.   You 
call¾they come.  They'll be  wearing the white heats because 
they're good guys.  And you  know, good guys always wear the 
white hats.

4.   Sears Hearing-Aid Center  (90 seconds.)

[We] would  like to say  thank you to the  Sears Hearing-Aid 
Center for their continued  support of Daystar Radio.  Sears 
Hearing-Aid Center is located in  the sears Store in Paddock 
Mall in Ocala, Florida.  Sears Hearing-Aid Center offers the 
Miracle  Ear Hearing-Aid  System.  Miracle  Ear has  been in 
business  since 1947  offering unparalleled  service to  the 
hearing impaired for over  half a century. Sears Hearing-Aid 
Center  is  a  family-owned and  operated  business  priding 
itself on its professional  and personal one-on-one service.  
And  let  me say  that  excellence  is not  expensive,  it's 
priceless.  Ricky  and Deidre Richardson along  with Ricky's 
twin brother  Dicky promise that  they will make  your visit 
and testing an  absolutely pleasant experience.  Guaranteed.  
It's the Sears Hearing-Aid Center  in the Sears Store in the 
Paddock Mall in  Ocala, Florida.  The phone  number in Ocala 
is 352-237-1665.

5.   Hiers-Baxley Funeral Services  (90 seconds.)

Honor to  those you love  is the highest priority  of Hiers-
Baxley  Funeral Services.   Understanding  and guidance  are 
essential  tools   of  the  Hiers-Baxley   Funeral  Services 
professional  staff.   Hiers-Baxley  Funeral Services  is  a 
place of family.  We are  proud to be Marion County's oldest 
business still in operation.   The Hiers and Baxley families 
have  given our  company  the strength  to  remain the  only 
independent  funeral  service   provider  in  north  central 
Florida, who offers your family complete funeral, crematory, 
and   advance-planning   services.    Hiers-Baxley   Funeral 
Services  has  been serving  families  since  1885 and  will 
continue  to do  so for  generations to  come.  Hiers-Baxley 
Funeral Services - when trust matters most.