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

In the Matter of                 )
                                )
AMFM TEXAS LICENSES LIMITED      )    File No. 99050522
PARTNERSHIP                      )    NAL/Acct. No. 200132080004
                                )    Facility ID# 23084
Licensee of Station KHKS(FM)     )    JJS
Denton, Texas                    )

           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 Texas Licenses Limited Partnership (``AMFM''), licensee 
of Station  KHKS(FM),  Denton,  Texas, apparently  liable  for  a 
forfeiture in the  amount of four  thousand dollars ($4,000)  for 
violating Section 317(a)(1) of the Communications Act of 1934, as 
amended (``Act''), 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, 
as part of an agreement with A&M Records under which the  station 
received consideration without airing 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.  

     4.   Mr. John Cook, Vice President, Operations for KHKS(FM), 
recalls that he first received a copy of ``On A Day Like  Today'' 
in the late summer of 1998 with a note indicating that Bev Tilden 
liked the song.   Shortly afterwards,  Mr. Cook  received a  call 
from Tom Poleman, who was then the Program Director at Chancellor 
station WHTZ, asking  if Mr.  Cook had  heard the  single, if  he 
liked it, and if he was  interested in having Bryan Adams  appear 
at a  Christmas concert  for KHKS  listeners.  Mr.  Cook  recalls 
telling Mr. Poleman that while he did not think the song would be 
a hit, he would consider playing the song and having Bryan  Adams 
appear at the station's Christmas  concert. Mr. Cook claims  that 
he was indifferent  whether or  not Bryan Adams  would appear  at 
that concert.  Mr. Cook states that he did not think Mr.  Poleman 
was attempting to persuade him to  play the song by offering  Mr. 
Adams' appearance.

     5.   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 KHKS(FM)), make Mr. Adams available for  live 
concerts in various cities with Chancellor stations, and  provide 
CDs, airfare, and seats for contests. The agreement provided that 
KHKS(FM)  would  receive  $30,400.   In  return,  the  Chancellor 
stations would  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.  
The agreement  described the  Dallas concert  as ``Pending''  for 
December 12, as opposed to ``firm'' concerts in Boston, New York, 
and Orlando. 

     6.   Mr.  Cook  subsequently  received  a  call  from  Chuck 
Armstrong,   who   was   Chancellor's   Senior   Vice   President 
Entertainment/New Media.  According  to Mr.  Cook, Mr.  Armstrong 
told him that the ``strike'' date for ``On A Day Like Today'' was 
that day and that ``everyone'' was adding the song that day.  Mr. 
Cook declares that Mr. Armstrong told  him that he would have  to 
play the song 14 times a week. Mr. Cook stated that he added  the 
song to  the  station's  rotation ``due  to  this  pressure  from 
Armstrong.''  The  decision to  add the  song deviated  from  Mr. 
Cook's normal  selection  criteria.   The  station's  play  lists 
indicated that ``On A Day Like Today'' was added during the  week 
of September 28 to October 4, 1998.

     7.   In October 1998, A&M questioned Mr. Armstrong and  John 
Bassanelli,  Chancellor's  Managing   Director,  about  what   it 
believed to be insufficient airplay of ``On A Day Like Today'' on 
KHKS.  Messrs. Armstrong and  Bassanelli attempted to speak  with 
Mr. Cook,  but Mr.  Cook did  not return  their telephone  calls.  
Steve Rivers, Chancellor's Chief of Programming, then reached Mr. 
Cook and told him to follow through on his ``commitment'' to  the 
Bryan Adams campaign. Mr. Cook recalls that Mr. Rivers asked  him 
to give the song better day part visibility.  At some point,  Mr. 
Cook requested his staff to play the song during the day at least 
once a day.

     8.   On November 10, 1998, Morty Wiggins of A&M Records sent 
a letter to  Chuck Armstrong of  Chancellor canceling Mr.  Adams' 
appearance at the KHKS(FM) concert.  Brenda Adriance, the General 
Manager of KHKS(FM), told Mr. Cook that the concert was  canceled 
because of the lack of airplay of ``On A Day Like Today'' on  the 
station.

     9.   The station's play lists indicate that ``On A Day  Like 
Today'' was added during the week  of September 28 to October  4.  
From the period  of October 5  through November 1,  the song  was 
played seven times a week.  During the week of November 2 through 
8, the station played the song 12 times.  The following week, the 
song was played  11 times.  The  song was then  dropped from  the 
station's rotation. 

     10.   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

     11.  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. . . .

     12.  In this case, AMFM apparently violated those provisions 
by playing ``On  A Day  Like Today''  without airing  appropriate 
sponsorship  identification  announcements.   While  the  written 
agreement between Chancellor and A&M  did not mention airplay  of 
the song, under the specific circumstances involving KHKS(FM), we 
conclude that airplay of the record  became part of the quid  pro 
quo for the  consideration the station  received from A&M.   That 
conclusion is based upon Mr.  Cook's admission that he would  not 
have played ``On A  Day Like Today'' except  for the pressure  he 
received   from   Chancellor   Entertainment   management.    The 
management officials  clearly applied  that pressure  because  of 
their attempt  to  support  their  agreement  with  A&M.   Stated 
another way, but for the  existence of the agreement between  A&M 
and Chancellor,  and the  consideration the  station received  as 
part of that agreement, the station would not have played ``On  A 
Day Like Today.''   Accordingly, it appears  that the playing  of 
``On A  Day Like  Today''  was linked  to the  consideration  the 
station received  from  A&M.   Since  the  station  did  not  air 
sponsorship  identification  announcements  when  it  played  the 
record, it apparently violated Section 317 of the Act and Section 
73.1212 of our rules.

     13.   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.

     14.   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

     15.  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.

     16.  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.

     17.  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.

     18.  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.     19.  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.