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

In the Matter of                  )
                                 )
JONES COLLEGE                     )   EB-03-IH-0160
                                 )   Facility #31936
Licensee of Noncommercial         )
Educational Station WKTZ-FM,      )
Jacksonville, Florida             )


                MEMORANDUM OPINION AND ORDER

     Adopted:  November 26, 2003                  Released: 
December 1, 2003

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

                       I. Introduction

     1.   In   this  Order,   we   admonish  Jones   College 
(``Jones''), licensee  of noncommercial  educational station 
WKTZ-FM,    Jacksonville,    Florida,    for    broadcasting 
advertisements  in   violation  of   Section  399B   of  the 
Communications Act  of 1934, as amended  (``the Act''),1 and 
Section  73.503 of  the Commission's  rules.2  Based  on our 
review  of the  facts  and circumstances  of  this case,  we 
conclude  that  the  licensee  has  violated  the  pertinent 
statutory  and  Commission   underwriting  rule  provisions.  
Although we  believe that no monetary  sanction is warranted 
at  this  time based  on  the  licensee's prior  unblemished 
record and  other factors, 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.3 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.4     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.5  
                      III.  Discussion

     4.   The   Underwriting  Announcements.    We  received 
recorded  evidence  of   numerous  announcements,  allegedly 
broadcast  by WKTZ-FM  on March  1, 2003,  that appeared  to 
promote the  products or  services of  presumably for-profit 
entities.6  By  inquiry letter dated September  25, 2003, we 
asked Jones  to comment on  announcements made on  behalf of 
underwriters that included Chuck Nolan Cadillac, Annabelle's 
Home Furnishings  gallery, Donovan  Heat & Air,  Count Basie 
Orchestra, and Windsor Park Golf Club.7  These announcements 
are alleged  to contravene  the statute, as  implemented and 
interpreted  by applicable  Commission rules,  precedent and 
policy.8

     5.   In its  October 15,  2003, response,  Jones admits 
that the  announcements were aired by  WKTZ-FM, but contends 
that  it ``cannot  confirm  or deny''  that the  transcripts 
reflect the announcements  ``exactly as broadcast.''9  Jones 
maintains that the announcements  were contained in a weekly 
two-hour  program  called   ``Swingtime''  provided  to  the 
station by  programmer Norm  Vincent, who prepares  the show 
for  air.10  Jones  contends  that it  pays  nothing to  Mr. 
Vincent for the  program, and that it  receives nothing from 
him or  the underwriters  mentioned in  the announcements.11  
Jones argues  that because the underwriters  are sponsors of 
the ``Swingtime'' show, but not station WKTZ-FM, and because 
no consideration was exchanged  between the underwriters and 
the  station for  the broadcast  of the  announcements, they 
could not  be deemed to be  ``advertisements'' prohibited by 
section  399B  of  the  Act.12   Jones  further  represents, 
however, that,  upon consultation with counsel,  Mr. Vincent 
has ``truncate[d]'' the  underwriting announcements in order 
to ensure  future underwriting  rule compliance,13  and that 
the  station has  instituted internal  procedures to  ensure 
more ``consistent,'' rather than  ``periodic'' review of its 
broadcast underwriting announcements.14

     6.   We  find  that  all of  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,  for the 
reason  that they  encourage or  invite business  patronage, 
make  references  to  discounted  or  low-cost  services  or 
products,  or   otherwise  depict  the  underwriters   in  a 
comparative and qualitative manner.15  Although underwriting 
announcements may  identify underwriters and  their products 
or services, they may not promote them.16  We reject Jones's 
argument that  because the  station received no  payment for 
the broadcast of the announcements, they could not be deemed 
to be ``advertisements,'' as a  matter of law, under section 
399B  of the  Act.  Remuneration  of consideration  has been 
construed to  include various forms.17  In  this case, Jones 
indicates that the  station did not pay Mr.  Vincent for the 
right  to   broadcast  the  ``Swingtime''   program.18   The 
``consideration'' received  by the station  for broadcasting 
the announcements  thus appears to have  been the producer's 
agreement  to allow  the station  to air  the  ``Swingtime'' 
program  free  of  charge.19  Consequently,  we  reject  any 
suggestion that  Jones' broadcast  of the  announcements was 
permissible under section 399B of the Act.

     7.   Finally,  Jones's reliance  on  its programmer  to 
supply the station with  program material that complies with 
Commission  underwriting  policy  does not  excuse  it  from 
liability  for  any  sanction   we  impose.   Licensees  are 
responsible for learning and complying with the statutes and 
rules administered  by the Commission,20 and  for monitoring 
the content of their  program material, from whatever source 
obtained, prior to airing it.21  However, in determining the 
appropriate sanction,  we will  take cognizance of  the fact 
that Jones itself did not produce the program in question.22  

     8.   Sanction.  In  view of the foregoing,  we conclude 
that  a sanction  is appropriate.   However, because  of the 
prior unblemished record of the  licensee, and the fact that 
the station itself did not produce the complained of program 
material,  we do  not believe  that a  monetary sanction  is 
necessary  to  redress  the  instant  rule  violations.   We 
instead conclude that an  admonishment is sufficient at this 
time.23   We   further  urge   the  licensee   to  implement 
procedures and practices  at its station to  ensure that its 
broadcast   underwriting  announcements   comply  with   the 
pertinent   statute,   Commission   rules,   and   precedent 
pertaining thereto.    

                      IV.  Ordering Clauses

     9.   Accordingly,  IT IS  ORDERED  that Jones  College, 
licensee  of  noncommercial   educational  station  WKTZ-FM, 
Jacksonville,  Florida,   IS  ADMONISHED   for  broadcasting 
advertisements 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.

     10.  IT IS FURTHER  ORDERED that a copy  of this Notice 
shall be  sent, by Certified Mail/Return  Receipt Requested, 
to Jones  College, 5353 Arlington  Expressway, Jacksonville, 
Florida  32211, and  to its  counsel, Christopher  D. Imlay, 
Esq., Booth,  Freret, Imlay &  Tepper, P.C., 14356  Cape May 
Road, Silver Spring, Maryland 20904-6011. 


                         FEDERAL COMMUNICATIONS COMMISSION


     
                         William D. Freedman
                         Deputy Chief
                         Investigations and Hearings 
                    Division
                         Enforcement Bureau
                         

Attachment

















                         ATTACHMENT

The   following  text   was  transcribed   from  audio-taped 
recordings of underwriting  announcements broadcast on WKTZ-
FM, Jacksonville, Florida, on March 1, 2003:

1.  Chuck Nolan Cadillac 

Well, as  I've mentioned,  we're here  because of  some very 
nice  people at  Chuck  Nolan  Cadillac.  Ninety-eight  plus 
years in the business.  They're going stronger than ever, my 
friends.  Chuck Nolan Cadillac  - over ninety-eight years of 
satisfying customers with friendly service and honest value.

Just think,  since 1905,  the Chuck  Nolan people  have been 
selling   and   servicing   America's   proudest   name   in 
automobiles.   It's called  the standard  by which  most all 
others  are  compared  for  sure.  There  are  many  reasons 
customers keep coming back year  after hear to this ten-time 
``Master Dealer.''  Why not find out for yourself.

You'll  find  the  goal  here  is to  serve  you,  and  that 
commitment really shows.   Customers consistently rank Chuck 
Nolan Cadillac  among the best  in the country in  sales and 
service.   So, whether  you decide  to lease  or buy,  Chuck 
Nolan's full-service  finance and insurance office  offers a 
broad range of financing offers.

You want  to know where  they are?  I'll tell  you.  They're 
out  there on  Southside Boulevard  so conveniently  located 
across from Tinseltown; 2/3 miles north of the Butler.

Chuck Nolan Cadillac:  They've been doing things right since 
1905.


2.   Annabelle's Home Furnishings Gallery  

You know, there's nothing quite  like a visit to Annabelle's 
Home Furnishings  Gallery in  Orange Park.   Especially this 
time of  year with  Spring just around  the corner  and one-
hundred-fifty  cartons of  new merchandise  from Annabelle's 
recent  trip to  market have  been unloaded  and await  your 
inspection!

And  that  includes  all  the  ``Lamp-Bergere''  styles  and 
fragrances.  ``Lamp-Bergere,'' the super-popular oil-burning 
lamp  that emits  wonderful  fragrances  while cleaning  and 
purifying the air.  Oh, leave  it to Annabelle to become the 
only dealer in Orange Park for this hot item.  Now there are 
classic styles, as well as the signature collections, museum 
pieces  and  fragrances.   Oh, so  many,  including  floral, 
fruit,  jasmine, exotic,  winter wood,  and so  many others.  
Now  at Annabelle's,  lots of  new colors  to brighten  your 
spirits, and neat  things like crystal baubles  that you can 
hang on a lampshade.  Or just place.  We call them ``jewelry 
for the home.''   Oh, and so much more.  So  allow plenty of 
browse time, my friends.  You'll love it.

Annabelle's  Home  Furnishings   Gallery  on  College  Drive 
immediately  off  Blanding  Boulevard  in  Orange  Park.   A 
special place always with something special for you.






3.  Donovan Heat & Air 

I  want to tell  you about  Donovan Heat  & Air--one  of the 
companies that  helps make  ``Swing Time'' possible.   It is 
Donovan Heat & Air.  

Many of  you are Donovan  Heat &  Air customers, and  I know 
you're  as satisfied  as  I am.   Donovan Heat  &  Air is  a 
company large  enough to provide customers  with competitive 
fair pricing for  major work, and certainly  small enough to 
provide the  kind of personal and  dedicated service family-
owned and operated companies are so well suited for.

Now, hopefully you won't need  Donovan Heat & Air's services 
often, other than those all-important preventive maintenance 
check-ups, but when you do you're going to get quick, honest 
and competent  work with no  overtime charges until  after 8 
p.m., including  Saturday.  Free major work  estimates and a 
ninety-day no-payment/no interest  finance plan available to 
you.  That's Donovan Heat & Air.

Here's the telephone  number:  223-4200.  223-4200.  Donovan 
Heat & Air.  A company for all seasons.


4.  Count Basie Orchestra 

Here's some good news for all  of you Count Basie fans.  The 
Count Basie Orchestra will be  here to perform in concert at 
the Jacksonville  University Terry concert  Hall, Wednesday, 
March 12th at 7:30 p.m.

Yes, the All-American big band  with several of the original 
Count's men.  They're coming to town, so mark your calendars 
now and call Pat Young  at 256-7371 for tickets.  That's Pat 
Young at 256-7371.

The  Basie  Orchestra  is   under  the  direction  of  noted 
trombonist and  leader Grover Mitchell.   They're considered 
the  best big  band  on tour,  and I  know  will provide  an 
exciting and memorable evening for all of us.  So before you 
forget, make  a note  to call Pat  Young for  tickets.  256-
7371.  256-7371.  March 12th at JU's Terry Concert Hall.

Count Basie  Orchestra:  timeless, priceless, and  still the 
genuine article.  This is one that you don't want to miss.   


5.  Windsor Park Golf Club 

Here's some  good news for  all you senior golfers,  who are 
looking  for your  game out  on the  right course.   And the 
course I'm  speaking about  of course,  is the  Windsor Park 
Golf Club.   The Windsor Park  Golf Club has a  senior bonus 
program which allows you to  play at a special reduced rate, 
including a cart, on any Tuesday right up until May 12th.

Now this  is an opportunity for  you to play and  enjoy this 
beautiful, challenging,  and Jacksonville's  only nationally 
rated golf course, for a special senior's rate.  Any Tuesday 
until May  12th.  So all  you have  to do is  call 223-GOLF.  
That's 223-GOLF  for details on this  senior's golf program, 
and arrange your tee time  for some world-class golf.  User-
friendly and  conveniently located.  Windsor Park  Golf Club 
on Hodges Boulevard between Beach and the Butler.

_________________________

1 47 U.S.C.  399b.

2 47 C.F.R.  73.503.

3 47 U.S.C. 399b(a).  

4 See In the Matter of Commission Policy Concerning the 
Noncommercial Nature of Educational Broadcasting Stations 
(1986), Public Notice, republished, 7 FCC Rcd 827 (1992) 
(``Public Notice'').
5
 See Xavier University, 5 FCC Rcd 4920 (1990).

6See Letter of James C. McKinney to Ralph Barlow, District 
Director, Enforcement Bureau, dated March 1, 2003  
(``Complaint Letter''). 

7See Letter of the Chief, Investigations and Hearings 
Division, Enforcement Bureau, to Jones College, dated 
September 25, 2003  (``LOI'').  

8See Complaint Letter. 

9 See Letter of Jones College, to the Chief, Investigations 
and Hearings Division, Enforcement Bureau, dated October 15, 
2003, at 2  (``Response'').

10Id.  

11Id.

12Id.
 
13 Id. at 3.  Jones did not indicate specifically how the 
text of the announcements was to be modified.

14 Id.

15LOI, exhibits A- E; Attachment.

16 See Public Notice, supra; Kosciusko Educational 
Broadcasting Foundation (WJTA(FM)), 5 FCC Rcd 7106 (MMB 
1990).

17 See, e.g., Fuqua Communications, Inc., 30 FCC 2d 94, 97 
(1971).

18 Response at 2.
 
19 See In re Window to the World Communications, Inc. 
(WTTW(TV)), DA 97-2535 (MMB December 3, 1997), forfeiture 
reduced, 15 FCC Rcd 10025 (EB 2000) (``WTTW''); Commission 
Policy Concerning the Noncommercial Nature of Educational 
Broadcast Stations, 90 FCC 2d 895, 911 (1982), recon., 97 
FCC 2d 255 (1984).

20 See, e.g. In the Matter of Rego, Inc., 16 FCC Rcd 16795, 
16797 (EB 2001), citing Gaffney Broadcasting, Inc., 23 FCC 
2d 912, 913 (1970). 

21 See WTTW, supra.

22 Id.

23 See Note to 47 C.F.R.  1.80(b)(4).