Click here for Adobe Acrobat version
Click here for Microsoft Word version

Statement of Chairman Martin
Statement of Commissioner Copps
Statement of Commissioner Adelstein
Statement of Commissioner Tate
Statement of Commissioner McDowell

******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

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
Microsoft Word or Adobe Acrobat version.

*****************************************************************



                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

   In the Matter of )

   )

   CITADEL BROADCASTING CORP. ) File No. EB-06-IH-1108

   ) Acct. No. 200732080010

   ) FRN No. 0009019050

                                     ORDER

   Adopted: March 21, 2007 Released: April 13, 2007

   By the Commission: Chairman Martin and Commissioners Copps, Adelstein,
   Tate, and McDowell issuing separate statements.

   1. In this Order, we adopt the attached Consent Decree entered into
   between the Federal Communications Commission (the "Commission") and
   Citadel Broadcasting Corp. ("Citadel"). The Consent Decree terminates the
   investigations initiated by the Enforcement Bureau against Citadel as to
   whether Citadel and its direct and indirect subsidiaries that hold FCC
   authorizations may have violated the sponsorship identification
   requirements set forth in Sections 317 and 507 of the Communications Act
   of 1934, as amended (the "Act"), and Section 73.1212 of the Commission's
   rules.

   2. The Commission and Citadel have negotiated the terms of a Consent
   Decree, a copy of which is attached hereto and incorporated by reference.

   3. After reviewing the terms of the Consent Decree, we find that the
   public interest would be served by approving the Consent Decree and
   terminating all pending proceedings against Citadel relating to the
   investigation of whether it or any of its direct or indirect subsidiaries
   that hold FCC authorizations violated Sections 317 and 507 of the Act, and
   Section 73.1212 of the Commission's rules.

   4. Based on the record before us, we conclude that nothing in the record
   before us creates a substantial and material question of fact in regard to
   these matters as to whether Citadel and its direct or indirect
   subsidiaries that hold FCC authorizations possess the basic
   qualifications, including character qualifications, to hold or obtain any
   FCC licenses or authorizations.

   5. Accordingly, IT IS ORDERED, pursuant to Sections 4(i), 4(j), and 503(b)
   of the Communications Act of 1934, as amended, that the attached Consent
   Decree IS ADOPTED.

   6. IT IS FURTHER ORDERED that the Secretary SHALL SIGN the Consent Decree
   on behalf of the Commission.

   7. IT IS FURTHER ORDERED that all Enforcement Bureau investigations
   regarding possible violations by Citadel Broadcasting Corp. of 47 U.S.C.
   SS 317, 508 and 47 C.F.R. S 73.1212 ARE TERMINATED, and that all
   third-party complaints against Citadel for possible violations of the same
   pending before the Enforcement Bureau as of the date of the Consent Decree
   ARE DISMISSED WITH PREJUDICE.

   FEDERAL COMMUNICATIONS COMMISSION

   Marlene H. Dortch

   Secretary

                                 CONSENT DECREE

    1. The Federal Communications Commission and Citadel Broadcasting
       Corporation,  for itself and on behalf of its direct and indirect
       subsidiaries that hold FCC authorizations (collectively, the
       "Company"), hereby enter into this Consent Decree for the purpose of
       resolving and terminating certain investigations currently being
       conducted by, or pending before, the Commission relating to compliance
       with the Sponsorship Identification Laws, as defined below, by Company
       Stations.

    2. For purposes of this Consent Decree the following definitions shall
       apply:

   (a) "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
   S 151 et seq.;

   (b) "Adopting Order" means an order of the FCC adopting this Consent
   Decree, without any modifications adverse to Company or any Company
   Station;

   (c) "Bureau" means the FCC's Enforcement Bureau;

   (d) "Business Reforms" means the Company-wide conduct and activities
   described in Attachment B to this Consent Decree;

   (e) "Company Station" and "Company Stations" means one or more broadcast
   stations licensed to Company pursuant to authorizations issued by the FCC;

   (f) "Commission" or "FCC" means the Federal Communications Commission or
   its staff acting on delegated authority;

   (g) "Complaints" means third-party complaints which may have been received
   by, or in the possession of, the Commission or the Bureau, alleging
   violations of the Sponsorship Identification Laws by Company, by a Company
   Station or by any Company employee prior to the effective date of the
   Adopting Order;

   (h) "Compliance Plan" means that Company-wide program described in
   Attachment A to this Consent Decree;

   (i) "Effective Date" means the date on which the FCC releases the Adopting
   Order;

   (j) "Final Order" means the status of the Adopting Order after the period
   for administrative and judicial review has lapsed;

   (k) "Investigations" means any investigation of alleged violations of the
   Sponsorship Identification Laws by Company, any Company Station, or any
   Company employee;

   (l) "Parties" means Company and the Commission;

   (m) "Rules" means the Commission's regulations found in Title 47 of the
   Code of Federal Regulations; and

   (n) "Sponsorship Identification Laws" means, individually or collectively,
   47 U.S.C. S 317, 47 U.S.C. S 508, 47 C.F.R. S 73.1212, and/or any
   Commission policy relating to sponsorship identification or the practices
   commonly referred to as "payola" or "plugola."

   I. BACKGROUND

   3. The Commission and Company acknowledge that any proceedings that might
   result from the Investigations and/or the Complaints will be
   time-consuming and will require substantial expenditure of public and
   private resources.

   4. In order to conserve such resources, to insure continued compliance by
   Company with the Sponsorship Identification Laws, and to effectuate
   business reforms in the broadcasting and music industry, the Commission
   and Company are entering into this Consent Decree in consideration of the
   mutual commitments made herein.

   II. AGREEMENT

    5. The Parties agree that the provisions of this Consent Decree shall be
       subject to approval by the Commission by incorporation of such
       provisions by reference in an Adopting Order.

    6. The Parties agree that this Consent Decree shall become effective on
       the date on which the FCC releases the Adopting Order. Upon release,
       the Adopting Order and this Consent Decree shall have the same force
       and effect as any other orders of the Commission and any violation of
       the terms of this Consent Decree shall constitute a violation of a
       Commission order, entitling the Commission to exercise any rights and
       remedies attendant to the enforcement of a Commission order.

    7. Company agrees that the Commission has jurisdiction over the matters
       contained in this Consent Decree and the authority to enter into and
       adopt this Consent Decree.

    8. As part of the Adopting Order, the Commission shall terminate all
       Investigations and shall dismiss the Complaints with prejudice. From
       and after the Effective Date, the Commission shall not, either on its
       own motion, in response to any petition to deny or other third-party
       complaint or objection, or in response to any request from any other
       federal, state or local agency, initiate any inquiries,
       investigations, forfeiture proceedings, hearings, or other sanctions
       or actions against Company or any Company Station, with respect to
       any pending or future application to which Company is a party
       (including, without limitation, any application for a new station, for
       renewal of license, for assignment of license, or for transfer of
       control), or any Company employee, based in whole or in part on (i)
       the Investigations; (ii) the Complaints, (iii) any other similar
       investigations or complaints alleging a violation by Company, any
       Company Station, or any current or former Company employee of the
       Sponsorship Identification Laws occurring prior to the Effective Date,
       (iv) the allegations contained in any of the foregoing, (v) the
       underlying facts or conduct that relate to any of the foregoing, or
       (vi) any act or omission of Company or any Company employee occurring
       prior to the Effective Date and relating to any of the foregoing.
       Without limitation to the foregoing, the FCC shall not (a) use the
       facts of this Consent Decree, the Investigations, the Complaints, any
       other similar complaints alleging violation by any Company Station of
       the Sponsorship Identification Laws with respect to any broadcast
       occurring prior to the Effective Date, or the underlying facts,
       behavior, or broadcasts that relate to any of the foregoing, for any
       purpose relating to Company, any Company Station, or any Company
       employee, (b) on its own motion provide any information within its
       possession in connection with any of the foregoing to any other
       federal, state or local agency, or request any such agency to
       investigate or pursue enforcement action with respect thereto, and (c)
       shall treat all such matters as null and void for all purposes.

    9. Company has had in place policies and procedures to deter employees
       from engaging in conduct that violates the Sponsorship Identification
       Laws, but is willing to adopt a new plan in an effort to enhance the
       effectiveness of Company's efforts. Accordingly, Company is in the
       process of implementing, new, more expansive, Company-wide Business
       Reforms and a Compliance Plan designed to help insure that the conduct
       and broadcasts by Company, Company Stations or its employees will not
       violate the Sponsorship Identification Laws. Summaries of the Business
       Reforms and the Compliance Plan are set forth in Attachments B and A
       hereto, respectively. Company agrees to implement the Business Reforms
       and the Compliance Plan within 60 days of the Effective Date and to
       keep such Business Reforms and Compliance Plan in effect for three (3)
       years after the Effective Date. In the event that Company wishes to
       revise any material aspect of the Business Reforms or the Compliance
       Plan, Company will provide the Commission advance written notice of
       the proposed changes.  Company may implement such changes if the
       Commission does not object to them within 30 days of their submission
       by Company.

   10. Company will make a voluntary contribution to the United States
       Treasury in the amount of Two Million Dollars ($2,000,000) within
       thirty (30) days after the Order adopting this Consent Decree has
       become a Final Order. Company will make this contribution without
       further protest or recourse, by check or similar instrument, payable
       to the order of the Federal Communications Commission, P.O. Box
       358340, Pittsburgh, PA 15251-8340. Payment by overnight mail may be
       sent to Mellon Bank /LB 358340, 500 Ross Street, Room 1540670,
       Pittsburgh, PA 15251. Payment by wire transfer may be made to ABA
       Number 043000261, receiving bank Mellon Bank, and account number
       911-6106. The payment should reference Acct. No. 200732080010 and FRN
       # 0009019050.

   11. Company waives any and all rights it may have to seek administrative
       or judicial reconsideration, review, appeal or stay, or to otherwise
       challenge or contest the validity of this Consent Decree and the
       Adopting Order, provided no modifications are made to the Consent
       Decree adverse to Company or any Company Station. If the Commission,
       or the United States acting on its behalf, brings a judicial action to
       enforce the terms of the Adopting Order or this Consent Decree, or
       both, Company will not contest the validity of this Consent Decree or
       of the Adopting Order, and will waive any statutory right to a trial
       de novo. If Company brings a judicial action to enforce the terms of
       the Adopting Order or this Consent Decree, or both, the Commission
       will not contest the validity of this Consent Decree or the Adopting
       Order.

   12. Company takes seriously its responsibilities as a licensee to operate
       Company Stations in the public interest and to abide by FCC rules and
       policies, and its management has had in place policies and procedures
       that are designed to ensure compliance with those rules and policies.
       Despite these efforts, Company admits, solely for the purpose of this
       Consent Decree and for FCC civil enforcement purposes, and in express
       reliance on the provisions of Paragraph 8 hereof, and for no other
       purpose or to other effect, that Company has conducted an internal
       investigation with respect to the matters subject to the
       Investigations and Complaints, and Company's policies and practices
       with respect to the Sponsorship Identification Laws can be improved so
       as to further enhance the prospects for Company-wide compliance. By
       entering into this Consent Decree, Company makes no admission of
       liability or violation of any law, regulation or policy.

   13. In the event that this Consent Decree is rendered invalid in any court
       of competent jurisdiction, it shall become null and void and may not
       be used in any manner in any legal proceeding.

   14. Company hereby agrees to waive any claims it may otherwise have under
       the Equal Access to Justice Act, 5 U.S.C. S 504 and 47 C.F.R. S 1.1501
       et seq., relating to the matters addressed in this Consent Decree.

   15. Each party represents and warrants to the other that it has full power
       and authority to enter into this Consent Decree.

   16. This Consent Decree may be executed in any number of counterparts
       (including by facsimile), each of which, when so executed and
       delivered, shall be an original, and all of which counterparts
       together shall constitute one and the same fully executed instrument.

   FEDERAL COMMUNICATIONS COMMISSION

   By: ________________________________

   Marlene H. Dortch, Secretary

   Date:

   CITADEL BROADCASTING CORPORATION

   (For itself and on behalf of its direct and indirect subsidiaries)

   By: _________________________________
   Jacquelyn J. Orr, General Counsel and Vice President

   Date:

                                 ATTACHMENT  A

                            Company  Compliance Plan

   Company has developed, and is implementing, a Company-wide Compliance Plan
   for the purpose of furthering compliance with the Sponsorship
   Identification Laws and adherence to the Business Reforms set forth on
   Attachment B. The Compliance Plan consists of the following components:

   1.  Commitment to High Standards on Pay-for-Play; Annual Report.

   A. Commitment to High Standards on Pay-for-Play. Company commits to
   enforcing high standards with respect to the Sponsorship Identification
   Laws to avoid violations and the appearance of impropriety in the area of
   music selection.

   B. Annual Report. The Compliance Officer, as defined below,  shall submit
   annual reports to Company's Board of Directors and the Commission
   concerning Company's compliance with this Agreement and with the Business
   Reforms for a period of three years from the effective date of this
   Agreement.

   2. Training of Programming Personnel. Company will conduct appropriate
   training of its employees who are on-air talent and/or materially
   participate in the on-air broadcast of program material or in the making
   of programming decisions and their supervisory employees ("Programming
   Personnel") in the accompanying Business Reforms and the Sponsorship
   Identification Laws, including the FCC's interpretation of such statutes
   and regulations regarding payola and related issues. Such training will be
   provided to all current Company Programming Personnel within 60 days of
   the Effective Date. The training will be provided to all new Company
   Programming Personnel promptly after they commence their duties. Refresher
   training will be provided to all employees described above at least once
   every twelve months.

   3. Compliance Officer and Market-Level Compliance Contacts.

   A. Compliance Officer. Within 45 days of the Effective Date, Company shall
   designate a Compliance Officer, whose responsibility shall be to seek to
   ensure Company's compliance with the Business Reforms attached to this
   Consent Order and with the Sponsorship Identification Laws through the
   following duties: (a) the implementation, effectuation, and supervision of
   the training program with regard to the Business Reforms and the
   Sponsorship Identification Laws for all Company Programming Personnel; (b)
   being accessible by telephone and/or e-mail to any Company employee who
   seeks advice on compliance with the Business Reforms and the Sponsorship
   Identification Laws or who wishes to report potential violations of such
   policies and laws; (c) the development and implementation of procedures
   designed to ensure Company's continuing compliance with the Business
   Reforms and the Sponsorship Identification Laws; (d) monitoring Company's
   compliance with the Business Reforms and the Sponsorship Identification
   Laws; (e) reporting on a quarterly basis to the General Counsel of Company
   regarding compliance of Company Stations and employees with the Business
   Reforms and the Sponsorship Identification Laws; (f) reporting on an
   annual basis to Company's Board of Directors and the Commission concerning
   the compliance of the Company Stations with the Business Reforms and the
   Sponsorship Identification Laws; and (g) such other activities as the
   Compliance Officer deems necessary or appropriate to carry out his or her
   duties.

   B. Market-Level Compliance Contacts. Within 45 days of the Effective Date,
   Company shall designate a Compliance Contact for each market in which
   there is a Company station that plays new music. The market-level
   Compliance Contact shall work in conjunction with the Company Compliance
   Officer in the implementation and monitoring of the Business Reforms in
   such market.

   4. Database and Hotline.

   A. Database. Company shall maintain all documentation of expenditures
   required by this Agreement in the database(s) or in hard copy for a period
   of not less than three (3) years. The database(s) shall be available for
   inspection by the Commission upon request.

   B. Hotline. Company Compliance Officer shall maintain a hotline for
   employees to call the Compliance Officer to obtain advice on compliance
   with the Business Reforms, and report violations of the Business Reforms.

   5. Contractual Agreements. Company will ensure that all contractual
   agreements with respect to Programming Personnel include a contractual
   clause relating to compliance with the Sponsorship Identification Laws.

   6. FCC Enforcement Actions. If a Company Station receives a Notice of
   Apparent Liability, Order or similar Commission document proposing a
   forfeiture and/or contemplating license non-renewal or revocation as a
   result of a violation of the Sponsorship Identification Laws occurring
   after the effective date of the Consent Decree, the following steps will
   be taken:

   A. Each employee accused of violating, the Sponsorship Identification Laws
   will be suspended and an investigation will immediately be undertaken;

   B. Each such employee will be required to undergo remedial training on
   Business Reforms and the Sponsorship Identification Laws and satisfy the
   Compliance Officer and Company Station management that he or she
   understands such regulations and policies before resuming his or her
   duties.

   C. If a Notice of Apparent Liability, Forfeiture Order, Order or similar
   document assessing or proposing a forfeiture, denying a renewal
   application and/or revoking a license issued by the FCC is finally
   adjudicated and Company is finally found to have violated the Sponsorship
   Identification Laws that results in such action by the Commission, the
   employee(s) materially involved in the violation or violations that are
   the subject of such Commission or Bureau action will be subject to further
   disciplinary action, up to and including termination.

                                 ATTACHMENT B

                            Company Business Reforms

   Company has implemented and is implementing on a Company-wide basis,
   certain business reforms for the purpose of furthering compliance with the
   Sponsorship Identification Laws. To the extent not already undertaken,
   within 60 days of the Effective Date of the Consent Decree to which this
   statement is attached, Company shall implement and adhere to the following
   practices ("Business Reforms").

   1. Prohibited Activity.

    A. Record Label and Record Label Employees. Neither Company, any Company
       Station, nor any Company employee (collectively, "Company Parties")
       shall solicit, receive, or accept cash or any other item of value from
       a Record Label or Record Label employee in, or as part of, an
       exchange, agreement, or understanding to provide or increase airplay
       of music provided by any Record Label, except as expressly permitted
       under P 2, below, and provided that all such activity complies with
       applicable Sponsorship Identification Laws. As used in these Business
       Reforms, the term "Record Label" means (a) any entity that
       manufactures or distributes audio recordings of music, (b) any artist
       under contract to a Record Label (an "Artist"), and (c) any
       representative of the Record Label or an Artist, including independent
       promoters.

    B. Independent Music Promoters. Company Parties shall not accept any item
       of value from an independent music promoter, unless that promoter
       certifies in writing to Company that no compensation to the promoter
       from a Record Label is based upon airplay.

   2. Permissible Restricted Activity. Company Parties may engage in the
   following activities with Record Labels, subject in each case to
   compliance with the Sponsorship Identification Laws and the following
   restrictions, and to adherence with the disclosure and documentation
   requirements set forth in P 3 below.

   A. Contests or Giveaways: Company Parties may solicit, receive and accept
   items of value, including but not limited to promotional items, gift
   cards, CDs, gift certificates, concert tickets, airfare, hotel rooms,
   vouchers and cash, from Record Labels to give away on the air, at a
   Company Station event or promotion, or for the benefit of charity, to
   persons or entities other than Company employees (or members of their
   immediate families or households). Contest rules and on-air announcements
   relating to such contests shall clearly indicate the value of the prize(s)
   as required by FCC rules and identify the Record Label as the provider of
   the prize(s) to be awarded.

   B. Advertising: Company Parties may solicit, receive and accept payment
   (in cash or other items of value) from Record Labels for on-air
   advertising, provided that the announcement clearly identifies the Record
   Label as the sponsor of the advertisement.

   C. Other Commercial Transactions: Company Parties may enter into
   commercial transactions with Record Labels pursuant to which a Company and
   a Record Label may license, sell or otherwise agree to distribute or
   promote the Record Labels' Artists, songs or records.

   D. Artist Appearances and Performances: Company Parties may arrange for
   Artists to appear or perform at events or interviews, including under
   circumstances where a Record Label has subsidized reasonable costs related
   to the appearance, performance or interview. Company Stations' on-air
   announcements of an Artist's performance that is subsidized in any part by
   the Record Label shall indicate clearly that the Artist's appearance is
   sponsored by the Record Label. The broadcast on a Company Station of all
   or a portion of the Artist's live performance at the event is permitted,
   provided that any such broadcast complies with the Sponsorship
   Identification Laws.

   E. Nominal Consideration: Company Parties may solicit, receive and accept
   the following items of value from Record Labels for use by a Company
   Station:

   (i) CDs and other promotional items of nominal value. A Company Station
   may solicit, receive and accept from Record Labels: (A) electronic copies
   of songs and up to 20 copies of the same CD to familiarize Company
   employees with recordings; (B) electronic copies of recordings for posting
   on Company Station websites to familiarize visitors to such websites with
   the Artists' recordings, and (C) promotional items intended for the
   personal use of Company Parties, if the value of each such individual item
   does not exceed $25, such as T-shirts, key chains, coffee mugs, baseball
   hats, posters, pens and bumper stickers.

   (ii) Concert tickets. A Company Station may solicit, receive and accept up
   to 20 tickets (which may include associated backstage or "VIP"-type
   passes) for a single-day concert, for each day of a multi-day concert,
   and/or to an industry event to be used by Company employees to familiarize
   them with the performing Artists. Tickets provided by Record Labels for
   Company employees who are working at the concert and/or industry event
   (e.g., technicians, on-air talent, promotions staff, etc.) shall be
   subject to the disclosure and documentation provisions of P 3, below, but
   shall not be counted towards the 20 ticket limit.

   (iii) Modest personal gifts for life event, professional achievement and
   holidays, or gifts commemorating achievement by Company or a Record Label.
   Company employees may receive and accept reasonable gifts from a Record
   Label commemorating life events, professional achievements and holidays. A
   "reasonable" gift is one whose value the employee has no reason to believe
   is greater than $150. An example of a life event would include a birthday,
   wedding or the birth of a child. An example of a professional event would
   be a job promotion or the winning of a music industry award. A Company
   Station may receive and accept from a Record Label gifts that commemorate
   achievements of Company, the Company Station, the Record Label, or the
   Record Label's Artists. An example of such a gift would be a plaque
   commemorating an Artist's achieving "gold record" level sales.

   (iv) Meals and entertainment. Company employees may receive and accept
   meals and entertainment in an amount not to exceed $150 per person, per
   event, provided that the event is attended by a Record Label employee and
   has a legitimate business purpose, and any payment is consistent with the
   value of the meal or entertainment. Company employees may receive and
   accept meals and entertainment from a Record Label in an amount that
   exceeds $150 per person, provided that the event is attended by a Record
   Label employee, has a legitimate business purpose, and is approved in
   writing by the Compliance Officer, as provided in the accompanying
   Compliance Plan. A Company employee may also receive and accept meals and
   entertainment from a Record Label for the benefit of his/her spouse or
   "significant other" accompanying the employee at such occasion, consistent
   with and subject to the limitations of this provision.

   (v) Travel and lodging expenses. A Company Station may receive and accept
   from a Record Label reasonable travel and lodging expenses for Company
   employees to attend live performances or appearances by Artists for the
   purpose of familiarizing such employees with a Record Label's Artists. A
   Company Station may also receive and accept from a Record Label reasonable
   travel and lodging expenses to industry events if the Company Station
   provides, to the satisfaction and approval of the Compliance Officer, a
   legitimate business purpose underlying the Record Label's payment of such
   expenses. Each Company Station shall be limited to 20 such trips annually,
   to be allocated among Company employees at the discretion of the Company
   Station. For purposes of these Business Reforms, "reasonable travel and
   lodging expenses" means commercial airfare (coach class), train or car
   service and a sufficient number of nights lodging to accomplish the
   intended business purpose. All travel and lodging expenditures must be
   approved in advance and in writing by the Compliance Officer. A Company
   employee may also receive and accept meals and entertainment during such
   trips, consistent with and subject to P 2E(iv), above.

   F. Nothing herein shall prohibit a natural increase in airplay of an
   Artist's music during the period surrounding, and coincident with (i) a
   contest or giveaway that promotes that Artist and (ii) the Artist's
   appearance or performance at an event, provided that, to the extent the
   increase in airplay results from an agreement or understanding with the
   Record Label or Artist, such increased airplay shall comply with the
   Sponsorship Identification Laws.

   3. Mandatory Documentation. Company shall record and document all activity
   set forth in P 2 as follows:

   A. Database record of items of value received from a Record Label. Company
   shall establish and maintain one or more databases (collectively, the
   "Database") containing a record identifying all items of value received by
   each Company Station or Company employee from Record Labels (exclusive of
   Artist performances and commercial transactions with Record Labels), and
   the disposition of such items shall be recorded as follows. In the case of
   each item of value that exceeds $25 in value (on an individual per item
   basis) intended to be awarded in a contest or given away by a Company
   Station, the Database shall record the date and manner of disposition and
   recipient of each such item. Items received for use by a Company Station
   or its employees (such as CDs for review by station employees and concert
   tickets) shall be so recorded. Items in excess of $25  received by Company
   or Company employees personally or in connection with business-related
   meals, entertainment and travel shall be recorded in the Database
   separately.

   B. Contests or Giveaways. In addition to the documentation maintained in
   the Database in each instance where Company solicits, receives or accepts
   an item of value from a Record Label to give away on the air, Company
   shall (i) verify in writing to the Record Label that the contest prize(s)
   will not be given away to an employee of a Company Station (or to members
   of their immediate families or households); and (ii) for each item of
   value given away that exceeds the monetary reporting threshold established
   by the Internal Revenue Service, maintain a record verifying that a
   contest winner has been selected, including the full name and address of
   the recipient of the prize, and provide this information, in writing, to
   the Record Label upon request.

   C. Advertising by Record Labels. All advertising by Record Labels shall be
   subject to a written agreement and recorded in one or more separate
   databases.

                                  STATEMENT OF

                            CHAIRMAN KEVIN J. MARTIN

   Re: CBS Radio, Inc., File No. EB-06-IH-1109, Order

   Re: Citadel Broadcasting Corp., File No. EB-06-IH-1108, Order

   Re: Clear Channel Communications, Inc., File Nos. EB-05-IH-0059,
   EB-05-IH-0144, Order

   Re: Entercom Communications Corp., File No. EB-05-IH-0033, Order

   The Commission has longstanding rules prohibiting payola. These rules
   serve the important purpose of ensuring that the listening public knows
   when someone is seeking to influence them or the types of music that they
   hear on the radio. As I have said before, the Commission will not tolerate
   non-compliance with its rules.

   In order to resolve the Commission's investigation into whether these
   license holders were violating applicable sponsorship identification laws,
   the four companies have agreed to implement various business reforms to
   ensure that their respective stations and employees do not violate the
   sponsorship identification laws in the future. They have also agreed to
   make significant contributions to the U.S. Treasury totaling $12.5
   million.

   Through this strong enforcement action that we take today, the Commission
   has provided clear guidance to licensees and sent a strong message that
   the practice of payola must stop for good.

                                  STATEMENT OF

                         COMMISSIONER MICHAEL J. COPPS



   Re: CBS Radio, Inc., File No. EB-06-IH-1109, Order

   Re; Citadel Broadcasting Corp., File No. EB-06-IH-1108, Order

   Re:  Clear Channel Communications, Inc., File Nos. EB-05-IH-0059,
   EB-05-IH-0144, Order

   Re: Entercom Communications Corp., File No. EB-05-IH-0033, Order



   Pay-for-play broadcasting cheats consumers, musicians and the law.  It
   denies consumers choice in what they hear, it deprives musicians of the
   exposure they need to survive and it is illegal.  It is also insidious,
   because just as soon as one payola hole is plugged, another is opened and
   the payola band plays on.  Today the Commission takes action against
   payola.  While not a lethal blow, this action makes real, tangible
   progress against unacceptable pay-for-play practices.  It opens some
   long-denied access for independent musicians who have faced tough times
   getting their songs on the airwaves in markets long dominated by
   pay-for-play.  And it is good news for listeners who have been drugged by
   years of standardized, homogenized music playlists.  Who knows, if this
   works well a listener driving coast-to-coast might actually hear some good
   local and regional music along the way instead of the same 20 songs.  Just
   as importantly, today's action--rightly implemented and monitored--can be
   good news for the radio business, putting it back in touch with the roots
   from which its earlier successes sprang.  These agreements remind us of
   the special community medium and artistic treasure that free, over-the-air
   radio can be.



   While we celebrate these efforts, we cannot forget what led us down this
   road.  How we got here--how we allowed music on free, over-the-air radio
   to be hijacked by a band of pay-for-play promoters--is a tale worth
   telling.  If I were to give this tale a title, I would call it "The Way
   the Music Died."  It didn't happen in a day or a month or a year.  But two
   culprits combined to all but slay local and independent music on the radio
   dial.



   First was payola itself.  Payola is by no means a recent arrival on the
   music scene.  From the days of Alan Freed the quid pro quo of cash for
   airplay has lurked behind commercial radio.  The times may have changed,
   but the basic mechanics of payola have not.  If an envelope stuffed with
   cash motivates what gets played, musical merit falls by the wayside.  When
   only artists represented by big labels can afford to play the game,
   independent and home-grown voices lose out.  Payola by itself is bad
   enough.



   But we put the pernicious effects of payola on steroids when we allow
   excessive consolidation among the licensees of our airwaves.  Here, then,
   is the second culprit: media concentration.  The Telecommunications Act of
   1996 eliminated the national radio cap, leading to a tremendous wave of
   consolidation in terrestrial radio.  The top ten radio conglomerates now
   control 2/3 of the total U.S. radio audience.  As a result, the payola
   kingmakers must grease only a relative handful of palms in order to get
   their anointed commercial artists on the air.  This makes an ugly
   situation uglier.  It makes for radio that sounds the same everywhere.  It
   is why in so many places the same handful of songs by the same small crop
   of artists is in heavy rotation, while local and independent voices never
   get a spin.  What a price we pay.  Musical genius in this country runs
   deep and wide.  But, by and large, our airwaves do not reflect it.
   Concentration of radio ownership has ushered in a new and especially
   challenging age of payola.  But don't just take my word for it.  As the
   American Federation of Television and Radio Artists puts it bluntly:
   "[b]ecause the radio industry is so consolidated, it is more difficult
   than ever for artists to get airplay on commercial radio."



   This is why I believe these agreements are a starting point, not an end.
   They address payola in some of its guises, but ignore the harms inflicted
   by consolidation.  And, sadly, they also fall short of acknowledging
   culpability.  Nonetheless, I remain optimistic that the progress made here
   is real.  So we will give this effort a play.  If, one year from now, we
   are hearing more independent voices on the radio, we'll know that the
   progress is real.  If, in one year, we are hearing more local musicians
   instead of the same slim crew of nationalized fare over and over again,
   we'll know we advanced the ball.  And if, in one year, we can say that
   free, over-the-air radio is the place to go for fresh new sounds and
   dynamic voices, we can all be proud of what we claim to have accomplished
   today.



   I intend to closely monitor what happens next.  I hope my colleagues will,
   too.  But what I really want to know is how consumers take the measure of
   these commitments.  So I urge listeners to contact the FCC.  Tell us how
   you think these commitments are being implemented.  Let us know if you're
   hearing more and better music.  We don't need a formal document from you,
   just e-mail us at fccinfo@fcc.gov (with "Payola" in the subject line) and
   tell us how you think it's going.



   In closing, let me note that this agency's payola work is built on the
   historic efforts of former New York State Attorney General Eliot Spitzer.
   We owe him a debt of gratitude for his path-breaking efforts to stomp out
   pay-for-play.  He awoke a new generation of music lovers to the persistent
   harms of payola and raised in listeners a belief that we can do better by
   our airwaves.  Let me also thank my colleagues, in particular Commissioner
   Jonathan Adelstein who pushed this matter front-and-center here and did
   yeoman's work to see these consent decrees through.  Finally, let me also
   thank musicians, other creative artists, independent companies and
   consumers across the land who helped us see the light and who suggested
   remedies to confront the problem.  I appeal for their continued vigilance
   to make sure that the commitments which have been made are carried out
   comprehensively and faithfully--and also to keep their watchful eyes open
   for any evidence of new pay-for-play practices designed to perpetuate a
   crime that never seems to go away.

                                  STATEMENT OF

                       COMMISSIONER JONATHAN S. ADELSTEIN

   Re: CBS Radio, Inc.,  File No. EB-06-IH-1109, Order

   Re: Citadel Broadcasting Corporation, File No. EB-06-1H-1108, Order

   Re: Clear Channel Communications, Inc., File Nos. EB-05-IH-0059 and
   EB-05-IH-0144, Order

   Re: Entercom Communications Corp., File No. EB-05-IH-0033, Order

   Today, a unified Commission sends a resounding message to the radio
   industry: payola, in any form, has no place in radio and will not be
   tolerated by the FCC. Payola deprives the listening public of the
   country's freshest music, denies local and independent artists a fair
   chance to get heard over the public airwaves, and saps the vitality of
   radio. In short, payola hurts musicians, the radio industry and the free
   flow of creative talent because music is chosen on the basis of who can
   pay the most - not who sounds the best.

   This agreement is a breakthrough and a milestone in the long fight against
   payola in this country. It ends an era of laissez faire pay-for-play and
   signals that the cops are back on the beat to enforce the law.

   The Consent Decrees and the private agreements between the broadcasters
   and the independent music community, particularly the American Association
   of Independent Music (A2IM) and Peter Gordon, represent the culmination of
   a series of lengthy negotiations among people who care deeply about the
   future of radio and the music industry. I personally appreciate the
   efforts made by the four companies which negotiated the Consent Decree
   with me in good-faith and displayed a genuine willingness to strengthen
   their relationships with local, unsigned and independent musicians. Each
   company's commitment to showcase the talent of local and independent
   artists for more than 4,000 hours indicates dedication to localism, music
   diversity, and the public interest.

   I am also thankful for the patience and support of my colleagues,
   specifically Chairman Martin for his leadership in initiating the
   investigation and securing significant monetary contributions,
   Commissioner Copps for sharing my insistence on meaningful oversight and
   business reform measures, and Commissioners Tate and McDowell for their
   interest in this issue.

   Today's historic settlement with four major broadcasters - CBS, Citadel,
   Clear Channel and Entercom -- is the first of several steps that the
   Commission will take to address the allegations of rampant violations of
   our sponsorship identification laws, specifically pay-for-play practices
   in the radio industry. I strongly encourage other broadcasters who are
   implicated or subject to license renewal holds for alleged sponsorship
   identification violations to enter into similar agreements with the
   Commission and the independent music community. Today's agreement is just
   the first wave of this investigation - more waves are coming.

   Since 1927, before the FCC was even created, Congress has maintained an
   unwavering requirement that broadcasters must announce who gives them
   valuable consideration to air anything. The federal sponsorship
   identification laws impose an unequivocal, legal obligation - up and down
   the chain of production and distribution - to disclose all forms of
   consideration. These rules are based on the basic principle that listeners
   and viewers are entitled to know who is seeking to persuade them so they
   can make up their own minds about the content.

   For years, I have been hearing from local and independent artists in
   different parts of the country that they could not get airplay on their
   local stations. And listeners have complained that that commercial radio
   sounded more and more homogenized and generic. As a huge fan of music and
   radio, I could not help notice that commercial radio - which was once a
   unifying force in local communities - had become increasingly like a
   coast-to-coast public address system, often devoid of soul, vitality, and
   local favor.

   Nearly every American music genre began with local artists getting played
   on local radio shows. Motown, grunge, Elvis and rock n' roll, hip hop,
   country, bluegrass, and the Nashville sound began as local music being
   promoted by local, independent musicians and labels on local radio. While
   each began in a different region of the United States, they all succeeded
   because they started getting heard on local radio and then broke out
   nationally and internationally. That path to success, and musical
   innovation, is hindered by payola since local artists without major
   financial backing get crowded out. American radio listeners are the first
   to suffer, but music lovers nationwide, and indeed all around the world,
   are deprived of new sounds when radio playlists become generic.
   Homogenization is good for milk, but bad for radio.

   Despite many allegations about widespread payola practices, the FCC had
   never investigated those claims, nor had we ever received credible
   evidence until then-Attorney General of New York State, Eliot Spitzer,
   launched a widespread investigation. He uncovered an arsenal of smoking
   guns, involving hundreds of radio stations - FCC licensees -- and the four
   major record labels. He aggressively pursued the problem and found vast
   numbers of potential violations of federal law.

   At my urging, the FCC launched a similar investigation and decided to
   focus first on the corporate practices of four large radio station groups
   - Clear Channel, CBS, Citadel and Entercom - concerning potential payola
   violations. The results of these investigations have enabled us to create
   a template for addressing other pending allegations and payola violations
   in the future.

   While this settlement is not a panacea to all payola woes, it requires the
   implementation of certain meaningful reform measures that should change
   corporate practices and behavior. The companies commit to enforcing high
   standards with respect to the sponsorship identification laws to avoid
   violations and the appearance of impropriety in the process of music
   selection. Specifically, the companies commit to implement numerous
   safeguards, including commitments to:

     * maintain a database containing a record to identify all items from
       record labels that exceed 25 dollars;

     * maintain a company hotline for employees to call the Compliance
       Officer to obtain advice and report violations;

     * appoint a Corporate-level Compliance Officer who is responsible to
       ensure compliance with the Consent Order, and all sponsorship
       identification laws;

     * designate a Compliance Contact for each market; and

     * conduct annual training for all programming personnel and supervisors

   The corporate culture of radio should not encourage or promote the use of
   the major record labels to subsidize the operating costs of radio
   stations. That is why the Consent Decree limits the numbers of electronic
   copies of songs and concert tickets, and the permissible value of personal
   gifts, meal and entertainment, and travel and lodging expenses. Some
   dishonest employees may continue to take money "under the table." While
   you can outlaw theft, that doesn't mean stealing will stop. The good news
   is that station owners are agreeing to send a clear message that such
   practice will not be tolerated by first eliminating some of the more
   blatant and abusive practices in the industry.

   I believe that these compliance and business reform measures, which are
   consistent with the reform measures developed by the New York State
   Attorney General's office, will change behavior in certain respects.
   Sunshine is truly the best disinfectant. There is a compelling need for
   greater and more effective governmental oversight. The FCC should play a
   role in ensuring the industry has sufficient safeguards in place. In that
   regard, the companies are required to submit annual compliance reports to
   the Commission. Additionally and, perhaps, more important, the Consent
   Decree provides the Commission with the unequivocal authority to gain
   access to the databases upon request.

   I applaud the voluntary efforts of the broadcasters and the independent
   music community to develop a meaningful way to build and protect a healthy
   future for radio. With these efforts, more new music should surface on the
   airwaves, and our country's rich cultural diversity can continue to
   flourish and enrich the lives of everyone. I believe the good faith
   platform these reforms were built upon are sturdy and will develop over
   time, but the ultimate success of this initiative depends on the
   cooperation of a great number of people. This is a work-in-progress and
   will take considerable effort to fully realize. So, even as we take this
   critical step, I stand ready to help, whenever necessary, to ensure its
   ultimate success.

                                  STATEMENT OF

                        COMMISSIONER DEBORAH TAYLOR TATE

   Re: CBS Radio, Inc., File No. EB-06-IH-1109, Order

   Re: Citadel Broadcasting Corporation, File No. EB-06-IH-1108, Order

   Re: Clear Channel Communications, Inc., File Nos. EB-05-IH-0059,
   EB-05-IH-0144, Order

   Re: Entercom Communications Corp., File No. EB-05-IH-0033, Order

   Coming to the Commission, as I do, from Nashville, Tennessee - home to
   more than 80 record labels, 180 recording studios, and some 5,000 working
   union musicians - I have been particularly concerned by allegations that
   payola, or "pay for play," practices are prevalent in the commercial radio
   industry. I am pleased that, in consideration of the conclusion of our
   investigation into these allegations, each of the four companies has
   agreed to make significant contributions to the U.S. Treasury and
   committed to implement consequential business reforms to ensure full
   compliance with our rules.

   Artists and radio listeners should be even more pleased, however, by the
   voluntary, private agreement crafted by the companies and the American
   Association for Independent Music, a trade organization representing the
   independent music sector. Pursuant to this creative accord, born of good
   faith negotiations, the companies have agreed in principle to basic
   guidelines, "rules of the road" covering future interaction between their
   stations and record labels, which concentrate on equal access and
   transparency. They have also committed to provide 8,400 half-hour blocks
   of airtime to independent music, to the benefit of all. I challenge other
   radio companies to follow their example.

                                  STATEMENT OF

                        COMMISSIONER ROBERT M. MCDOWELL

   Re: CBS Radio, Inc., File No. EB-06-IH-1109, Order

   Re: Citadel Broadcasting Corporation, File No. EB-06-IH-1108, Order

   Re: Clear Channel Communications, Inc., File Nos. EB-05-IH-0059,
   EB-05-IH-0144, Order

   Re: Entercom Communications Corp., File No. EB-05-IH-0033, Order

   I am pleased to support these Orders, which adopt the consent decrees
   entered into between the Commission and each of the above companies. The
   Commission takes seriously its responsibility to enforce the law governing
   sponsorship identification. The allegations of payola being pervasive in
   the industry undermine public confidence in radio broadcasting and are of
   great concern to me. I am pleased that each company has agreed to
   implement a compliance plan and meaningful business reforms for the
   purpose of ensuring compliance with our rules. I am also pleased to hear
   that the companies have voluntarily committed to take additional actions,
   including collectively airing over 4,000 hours of programming featuring
   local and independent artists and endorsing rules of engagement regarding
   the interaction between their stations and record labels to improve the
   ability of new and emerging artists to have their music aired.

   I thank the Chairman and Commissioners Adelstein and Tate for their
   leadership on this issue.

   See 47 U.S.C. SS 317, 508.

   See 47 C.F.R. S 73.1212.

   See 47 U.S.C. SS 154(i), 154(j), 503(b).

   Dollar amounts in this section may be adjusted for inflation based on the
   Consumer Price Index.

                  Federal Communications Commission  FCC 07-28

                                       1

                                       1

                  Federal Communications Commission  FCC 07-28

                                       1

                                       1

                                       1