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

In the Matter of                 )
                                )
AMFM RADIO LICENSES, L.L.C.      )    File No. 99050522
                                )    NAL/Acct. No. 200132080003
Licensee of Station WKQI(FM)     )    Facility ID# 6592
Detroit, Michigan                )    JJS
                                )

           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted: October 11, 2000            Released:   October   12, 

2000                                     

By the Chief, Enforcement Bureau:

                        I.   INTRODUCTION

     1.   In this Notice of Apparent Liability for Forfeiture, we 
find  AMFM  Licenses,  L.L.C.  (``AMFM''),  licensee  of  Station 
WKQI(FM), Detroit, Michigan, apparently  liable for a  forfeiture 
in the amount of four  thousand dollars ($4,000) for a  violation 
of Section  317(a)(1)  of  the Communications  Act  of  1934,  as 
amended, 47  U.S.C.    317(a)(1), and  Section  73.1212  of  the 
Commission's  rules,  47   C.F.R.     73.1212,  which   requires 
licensees, among other things, to make sponsorship identification 
announcements whenever a station broadcasts matter in return  for 
money, service, or  other valuable consideration.   We find  that 
AMFM broadcast a record, ``On A Day Like Today'' by Bryan  Adams, 
in consideration for Mr. Adams' agreement to appear at a  concert 
sponsored by  the station,  without airing  required  sponsorship 
identification announcements. 

                         II.  BACKGROUND

     2.   On February 2, 1998, John Madison, Sr., the Senior Vice 
President Regional  Operations for  Chancellor Media  Corporation 
(``Chancellor''),  the  parent  corporation  of  the   licensee,1 
invited other  Chancellor  executives  and  representatives  from 
record labels  to  discuss  ways that  record  labels  could  use 
Chancellor stations  to  better introduce  and  promote  records.  
Following that meeting, which took place in New York in  February 
1998,  Chancellor  and  Mercury  Records  developed  a  marketing 
campaign for Shania Twain to market her as a Top 40 artist.   The 
campaign included sixty second artist profile spots featuring the 
artist speaking about her  music, excerpts from  her song, and  a 
``retail tag'' informing listeners where they could purchase  her 
CD.  Chancellor viewed that campaign to be highly successful.

     3.   Following the Shania  Twain campaign, Chancellor  began 
marketing these types of campaigns to record labels.  In June  or 
July 1998, representatives of A&M Records played ``On a Day  Like 
Today,'' a  song  by  Bryan  Adams, to  John  Ivey,  the  Program 
Director  at  Chancellor  station  WXKS,  Boston,  Massachusetts.  
Subsequently, on July 15, 1998, A&M representatives met with  Mr. 
Madison and Bev Tilden, Chancellor's Vice President of Marketing, 
to discuss a marketing campaign for that song.  After a couple of 
months of negotiations, on September 23, 1998, Chancellor and A&M 
entered into  an  agreement.   Under  the  agreement,  A&M  would 
purchase commercials on ten Chancellor stations (including  WKQI-
FM), make Mr. Adams available for live concerts in various cities 
with Chancellor stations, and provide CDs, airfare, and seats for 
contests. In return, the Chancellor  stations agreed to run  live 
and  recorded   announcements,  liners,   promos,  and   contests 
promoting the new Bryan Adams  song. The stations also agreed  to 
provide hotel accommodations and spending money for the contests.  
In  the   written  agreement,   Chancellor  did   not  make   any 
representations concerning playing the Adams single.

     4.   On November 10, 1998, Morty Wiggins of A&M Records sent 
a letter to  Chuck Armstrong of  Chancellor canceling Mr.  Adams' 
appearance at a concert in Dallas.  On the afternoon of  November 
11, Mr.  Wiggins called  John Bassanelli,  Chancellor's  Managing 
Director, to  say that  Mr.  Adams would  not perform  at  WKQI's 
concert because the cancellation of  the Dallas show had made  it 
prohibitively expensive for Mr. Adams to  be on the road for  the 
December 9,  1998 Detroit  show.   According to  Chancellor,  Tom 
O'Brien, the  station's Program  Director, ``was  frantic at  the 
prospect of  a concert  cancellation''  because the  station  had 
promoted the concert, secured a  venue, and booked other acts  to 
appear with Mr. Adams.  Mr. O'Brien then made ``various  promises 
and concessions'' in the  hope of saving  the concert.  Later  on 
November 11, 1998, Mr. Bassanelli  wrote a letter to Mr.  Wiggins 
stating ``Per  Tom  O'Brien,  the stations  will  commit  to  the 
following  items  in  return   for  a  firm  and   non-cancelable 
performance by Bryan Adams:

     1.  Immediate increase of  spins of the current  single 
     `On A Day Like Today' to a minimum of 25 times per week 
     through the week ending December 26.  The station  will 
     guarantee and  fair  and even  [sic]  rotation  through 
     critical day parts.

     2.  Guaranteed immediate  add (out of  the box) of  the 
     next release with a minimum 15 spins per week for  five 
     (5) weeks.''

The station also agreed to move the concert date to December  13, 
1998 and  to  provide a  station  appearance at  a  local  record 
retailer of A&M's or Mr. Adams' choosing.

     5.   After November 11, the station  played ``On A Day  Like 
Today'' considerably more often and at more favorable times  than 
prior to that date.   From November 5  through November 11,  WKQI 
played the record  13 times, and  over half of  those plays  were 
between midnight and 6:00 a.m.  From November 12 through November 
18, the station  played the  record 29  times, and  over half  of 
those plays  were between  7:00 a.m.  and 7:00  p.m.  Except  for 
Saturday, November  28  and  Saturday, December  5,  the  station 
played ``On A Day Like Today''  at least three times a day  every 
day from November 11 through  December 13.  See January 18,  2000 
Response to Letter of Inquiry,  Exhibit 11.  The station did  not 
air any  sponsorship identification  announcements in  connection 
with the playing of the  record.  After the concert, the  station 
only played ``On A Day Like  Today'' nine more times (during  the 
period from December 14 through December 21).   The station never 
played the  ``next  release''  referred to  in  the  November  11 
letter.

     6.   According to AMFM, Messrs.  Bassanelli and O'Brien  did 
not  consult  with  the  Chancellor  Legal  Department,   outside 
counsel, or  more senior  Chancellor executives  before  reaching 
their  agreement  with   A&M.   On  December   23,  1998,   after 
publication of newspaper articles reporting on the  relationships 
between record  companies  and  radio station  groups,  Jimmy  de 
Castro, Chancellor's Chief Operating  Officer, sent a  memorandum 
to all Chancellor Radio Group employees stating ``our promotional 
packages do not and may not include increased airplay as part  of 
the deal.  We do NOT  accept `pay for play' arrangements  (either 
direct or indirect) and we do NOT make airplay decisions based on 
the sale of these packages.''

                      III.      DISCUSSION

     7.   Section 317(a)(1) of the Act provides:

     All matter broadcast by any radio station for which any 
     money,  service  or  other  valuable  consideration  is 
     directly or indirectly paid, or promised to or  charged 
     or accepted by, the  station so broadcasting, from  any 
     person, shall, at the time the same is so broadcast, be 
     announced as paid for or furnished, as the case may be, 
     by  such  person:  Provided,  That  "service  or  other 
     valuable consideration" shall  not include any  service 
     or property furnished  without charge or  at a  nominal 
     charge for use on, or  in connection with, a  broadcast 
     unless it  is  so  furnished in  consideration  for  an 
     identification in a broadcast  of any person,  product, 
     service,   trademark,   or   brand   name   beyond   an 
     identification which is reasonably  related to the  use 
     of such service or property on the broadcast.

Similarly, Section 73.1212(a) of the Commission's rules provides, 
in pertinent part:

     When a broadcast station transmits any matter for which 
     money, service,  or  other  valuable  consideration  is 
     either directly or indirectly  paid or promised to,  or 
     charged or accepted  by such station,  the station,  at 
     the time of the broadcast, shall announce:

     (1)  That  such  matter  is  sponsored,  paid  for,  or 
     furnished, either in whole or in part, and

     (2) By whom or on  whose behalf such consideration  was 
     supplied. . . .

     8.   In this case, AMFM apparently violated those provisions 
by not airing sponsorship identification announcements during the 
times it played ``On A Day Like Today'' pursuant to the station's 
November 11 agreement  with A&M Records.   Under that  agreement, 
the station agreed, among other things, to increase the number of 
times it would play  the record in return  for ``a firm and  non-
cancelable performance by Bryan Adams'' at the station's concert. 

     9.   AMFM argues  that while  the  station made  an  airplay 
commitment,  ``because  the  concert  was  already  promised   in 
connection  with  the   promotion  as   originally  planned,   no 
additional consideration was given by Adams or A&M in return  for 
the commitment on airplay.''  See May 27, 1999 Response to Letter 
of Inquiry, p.  4.  We reject  that argument as  contrary to  the 
language of the agreements, as well as the language and intent of 
the rule.  The original agreement between Chancellor and A&M only 
provided that the Detroit concert  was a ``pending'' concert,  as 
opposed to  the  ``firm''  concerts  in  Boston,  New  York,  and 
Orlando.  In contrast,  when the station  agreed to increase  the 
number of  times  it would  play  ``On  A Day  Like  Today,''  it 
received, in return, a ``firm and non-cancelable performance'' by 
Mr. Adams.  Thus, AMFM clearly received an additional benefit  in 
return for the promised airplay.  Moreover, AMFM's statement that 
Mr. O'Brien ``made various promises  and concessions in the  hope 
of saving the concert'' further demonstrates that his  commitment 
to play the record  more often was part  of the consideration  he 
was offering in  return for  the concert.   Moreover, subject  to 
exceptions that are not pertinent here, Section 73.1212  requires 
sponsorship  identification   announcements   whenever   ``money, 
service, or other  valuable consideration is  either directly  or 
indirectly paid or promised to, or charged to or accepted by such 
station . . .  .''  That broad  language clearly encompasses  the 
agreement  between  the  station  and  A&M.   Since  the  station 
received the consideration  of a ``firm''  concert in return  for 
playing ``On A Day  Like Today,'' and since  the station did  not 
air sponsorship identification announcements  when it played  the 
song, the station apparently violated Section 317 of the Act  and 
Section 73.1212 of the Commission's rules.

     10.   Section 503(b) of the Communications Act, 47 U.S.C.   
503(b), and Section 1.80(a) of the Commission's rules, 47  C.F.R. 
 1.80(a), both state that any person who willfully or repeatedly 
fails to comply with the provisions of the Communications Act  or 
the Commission's rules shall be liable for a forfeiture  penalty.  
For purposes of Section 503(b),  the term ``willful'' means  that 
the  violator  knew  it  was  taking  the  action  in   question, 
irrespective of  any intent  to violate  the Commission's  rules.  
See Southern California Broadcasting Co., 6 FCC Rcd 4387  (1991).  
Furthermore, a continuing violation  is ``repeated'' if it  lasts 
more than one day.  Id., 6 FCC Rcd at 4388.

     11.   The Commission's  Forfeiture Policy  Statement sets  a 
base forfeiture amount of  $4,000 for sponsorship  identification 
violations.2  After considering the record and all of the factors 
contained in  Section  503(b)(2)(D)  of  the  Act,  47  U.S.C.   
503(b)(2)(D), and the Forfeiture  Policy Statement, we believe  a 
$4,000 forfeiture is appropriate in this case.

                      IV.  ORDERING CLAUSES

     12.  ACCORDINGLY, IT  IS ORDERED  THAT pursuant  to  Section 
503(b) of  the  Communications  Act  of  1934,  as  amended,  and 
Sections 0.111, 0.311 and 1.80  of the Commission's rules,3  AMFM 
is hereby NOTIFIED  of its APPARENT  LIABILITY FOR FORFEITURE  in 
the amount of  four thousand dollars  ($4,000) for willfully  and 
repeatedly violating Section 73.1212 of the Commission's rules.

     13.  IT IS FURTHER ORDERED, pursuant to Section 1.80 of  the 
Commission's rules, that  within thirty  days of  the release  of 
this Notice, AMFM SHALL PAY to the United States the full  amount 
of the  proposed forfeiture  or SHALL  FILE a  written  statement 
seeking reduction or cancellation of the proposed forfeiture.

     14.  Payment of the  forfeiture may be  made by credit  card 
through the  Commission's Credit  and Debt  Management Center  at 
(202) 418-1995  or  by mailing  a  check or  similar  instrument, 
payable to the order of the Federal Communications Commission, to 
the  Forfeiture  Collection  Section,  Finance  Branch,   Federal 
Communications Commission,  P.O.  Box  73482,  Chicago,  Illinois 
60673-7482.  The payment should note the NAL/Acct. No. referenced 
above.

     15.  The response,  if any,  must be  mailed to  Charles  W. 
Kelley, Chief, Investigations and Hearings Division,  Enforcement 
Bureau, Federal Communications Commission, 445 12th Street,  S.W, 
Room 3-B443, Washington DC 20554 and MUST INCLUDE the file number 
listed above.     16.   IT IS FURTHER ORDERED that a copy of this Notice shall 
be sent, by  Certified Mail/Return Receipt  Requested, to  AMFM's 
counsel,  Eric  L.  Bernthal,   Esq.,  Latham  &  Watkins,   1001 
Pennsylvania Avenue, N.W., Suite 1300, Washington, DC 20004-2505.


          FEDERAL COMMUNICATIONS COMMISSION



          David H. Solomon
          Chief, Enforcement Bureau
_________________________

1  Chancellor is now named AMFM, Inc.  Since the corporation was 
known as Chancellor during the time of the events in question, we 
will refer to the corporation as Chancellor.

2  The Commission's Forfeiture Policy Statement and Amendment of 
Section 1.80 of the Commission's Rules, 12 FCC Rcd 17087, 17114 
(1997), recon. denied 15 FCC Rcd 303 (1999); 47 C.F.R.  1.80(b).

3  47 C.F.R.  0.111, 0.311 and 1.80.