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Before the
Federal Communications Commission
Washington, D.C. 20554
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In the Matter of
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WORD OF GOD FELLOWSHIP, INC. File Nos. EB-04-IH-0018
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AKA COMMUNITY TELEVISION EDUCATORS, and EB-04-IH-0140
INC. )
FRN 0001843697
Licensee of Noncommercial Educational )
Television Station KRMT(TV), Denver, Account No. 200932080016
Colorado )
Facility ID No. 20476
COMMUNITY TELEVISION EDUCATORS OF )
TEXAS, INC. FRN 0008713059
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Licensee of Noncommercial Educational Account No. 200932080016
Television Station KLTJ(TV), Galveston, )
Texas Facility ID No. 24436
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COMMUNITY TELEVISION EDUCATORS OF DFW, FRN 0009436411
INC. )
Account No. 200932080016
Licensee of Noncommercial Educational )
Television Station KDTN(TV), Denton, Facility ID No. 49326
Texas )
FRN 0008358970
EDUCATIONAL BROADCASTING CORPORATION )
Account No. 200932080016
Licensee of Noncommercial Educational )
Television Station KKAP(TV), Little Facility ID No. 58267
Rock, Arkansas )
FRN 0008778565
EDUCATIONAL PUBLIC TV CORPORATION )
Account No. 200932080016
Licensee of Noncommercial Educational )
Television Station WYDN(TV), Worcester, Facility ID No. 18783
Massachusetts )
FRN 0008980682
COMMUNITY TELEVISION EDUCATORS, INC. )
Account No. 200932080016
Licensee of Noncommercial Educational )
Television Station KDTP(TV), Holbrook, Facility ID No. 83491
Arizona )
FRN 0009659400
HO'ONA'AUAO COMMUNITY TV, INC. )
Account No. 200932080016
Licensee of Noncommercial Educational )
Television Station KWBN(TV), Honolulu, Facility ID No. 27425
Hawaii )
FRN 0008778623
PUGET SOUND EDUCATIONAL TV, INC. )
Account No. 200932080016
Licensee of Noncommercial Educational )
Television Station KWDK(TV), Tacoma, Facility ID No. 35419
Washington )
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CONSENT DECREE
1. The Enforcement Bureau ("Bureau") and Word of God Fellowship, Inc.,
also known as Community Television Educators, Inc.; Community Television
Educators of Texas, Inc.; Community Television Educators of DFW, Inc.;
Educational Broadcasting Corporation; Educational Public TV Corporation;
Community Television Educators, Inc.; Ho'ona'auao Community TV, Inc.; and
Puget Sound Educational TV, Inc. (each of which does business as Daystar
Television Network) (collectively, "Daystar"), by their authorized
representatives, hereby enter into this Consent Decree for the purpose of
terminating the Enforcement Bureau's investigation into whether Daystar
violated Section 399B of the Communications Act of 1934, as amended, and
Section 73.621(e) of the Commission's Rules, in connection with the
broadcast by Daystar of underwriting acknowledgments over its
noncommercial educational Stations KLTJ(TV), Galveston, Texas; KDTN(TV),
Denton, Texas; KRMT(TV), Denver, Colorado; KKAP(TV), Little Rock,
Arkansas; WYDN(TV), Worcester, Massachusetts; KDTP(TV), Holbrook, Arizona;
KWBN(TV), Honolulu, Hawaii; and KWDK(TV), Tacoma, Washington.
I. DEFINITIONS
2. For the 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 by the Bureau adopting the terms of
this Consent Decree without change, addition, deletion, or
modification.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
e. "Complaint" means a third-party complaint alleging violations of the
Commission's Underwriting Laws, dated October 10 and December 18,
2003, that may have been received by, or is in the possession of, the
Commission or Bureau.
f. "Compliance Plan" means the program described in this Consent Decree
at paragraph 9.
g. "Daystar" means Word of God Fellowship, Inc., also known as Community
Television Educators, Inc.; Community Television Educators of Texas,
Inc.; Community Television Educators of DFW, Inc.; Educational
Broadcasting Corporation; Educational Public TV Corporation; Community
Television Educators, Inc.; Ho'ona'auao Community TV, Inc.; and Puget
Sound Educational TV, Inc. (each of which does business as Daystar
Television Network) and its predecessors-in-interest and
successors-in-interest. Daystar" means Word of God Fellowship, Inc.,
also known as Community Television Educators, Inc.; Community
Television Educators of Texas, Inc.; Community Television Educators of
DFW, Inc.; Educational Broadcasting Corporation; Educational Public TV
Corporation; Community Television Educators, Inc.; Ho'ona'auao
Community TV, Inc.; and Puget Sound Educational TV, Inc. (each of
which does business as Daystar Television Network) and its
predecessors-in-interest and successors-in-interest.
h. "Effective Date" means the date on which the Commission releases the
Adopting Order.
i. "Investigation" means the investigation commenced by the Bureau's
Letters of Inquiry dated February 20, 2004, May 28, 2004, July 16,
2008, September 14, 2004, and October 8, 2004, regarding whether
Daystar violated the Commission's Underwriting Laws in connection with
its operation of the Stations during the period May 2003 and August
2003.
j. "Parties" mean Daystar and the Bureau.
k. "Rules" mean the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
l. "Stations" mean Stations KLTJ(TV) Galveston, Texas (Facility ID No.
24436); KDTN(TV) Denton, Texas (Facility ID No. 49326); KRMT(TV),
Denver, Colorado (Facility ID No. 20476); KKAP(TV), Little Rock,
Arkansas (Facility ID No. 58267); WYDN(TV), Worcester, Massachusetts
(Facility ID No.18783); KDTP(TV), Holbrook, Arizona (Facility ID No.
83491); KWBN(TV), Honolulu, Hawaii (Facility ID No. 27425); and
KWDK(TV), Tacoma, Washington (Facility ID No.35419).
m. "Underwriting Laws" mean Section 399B of the Communications Act of
1934, 47 U.S.C. S: 399b, and Section 73.621 (e) of the Commission's
Rules, 47 C.F.R. S: 73.621 (e).
II. BACKGROUND
3. Pursuant to Section 399b(a) of the Act and Section 73.621(e) of the
Commission's Rules, advertisements are defined as program material
broadcast "in exchange for any remuneration" and intended to "promote
any service, facility, or product" of for-profit entities. Section
399b(b)(2) specifically provides that noncommercial educational
stations may not broadcast advertisements. Although contributors of
funds to such 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 businesses. The Commission has also limited the
sale or promotion of program-related goods or services aired by
noncommercial educational stations. The sale of program-related
materials offered by the noncommercial educational station or by other
not-for-profit entities is permissible, even if the station received
consideration for the broadcast. However, the sale of program-related
goods and services by for-profit program producers and suppliers is
prohibited: "(1) where the cost [of the good or service is] more than
nominal; or (2) where consideration has been received; and (3) where
the offering was designed to further the economic interest of the
offeror." In short, this limitation is intended to ensure that
announcements for program-related goods or services are made to
benefit the public interest rather than to raise profit for the
for-profit entity.
4. On February 20, May 28, July 16, September 14, and October 8, 2004,
the Bureau issued letters of inquiry ("LOI") to Daystar. These LOIs
directed Daystar, among other things, to submit sworn written
statements in response to questions relating to allegations that
Daystar had aired announcements and engaged in the sale of products in
violation of the Underwriting Laws. Daystar responded on March 17,
March 22, June 28, August 12, and November 8, 2004. The announcements
and sale of products appear to have violated the Underwriting Laws
because they have the appearance of exceeding the bounds of what is
permissible and within licensee discretion under the Act and pertinent
Commission precedent.
III. TERMS OF AGREEMENT
5. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau by
incorporation of such provisions by reference in the Adopting Order
without change, addition, modification, or deletion.
6. Jurisdiction. Daystar agrees that the Bureau has jurisdiction over it
and the matters contained in this Consent Decree and has the authority
to enter into and adopt this Consent Decree.
7. Effective Date; Violations. 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 Order of the
Bureau. Any violation of the Adopting Order or of the terms of this
Consent Decree shall constitute a separate violation of a Bureau
Order, entitling the Bureau to exercise any rights and remedies
attendant to the enforcement of a Commission Order.
8. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate its
Investigation and dismiss the Complaint. In consideration for the
termination of said Investigation and dismissal of the Complaint,
Daystar agrees to the terms, conditions, and procedures contained
herein. The Bureau further agrees that, in the absence of new material
evidence, the Bureau will not use the facts developed in this
Investigation through the Effective Date of the Consent Decree, or the
existence of this Consent Decree, to institute, on its own motion, any
new proceeding, formal or informal, or take any action on its own
motion against Daystar concerning the matters that were the subject of
the Investigation. The Bureau also agrees that it will not use the
facts developed in this Investigation through the Effective Date of
this Consent Decree, or the existence of this Consent Decree, to
institute on its own motion any proceeding, formal or informal, or
take any action on its own motion against Daystar with respect to
Daystar's basic qualifications, including its character
qualifications, to be a Commission licensee or to hold Commission
authorizations.
9. Compliance Plan. For purposes of settling the matters set forth
herein, Daystar agrees to maintain a Compliance Plan related to future
compliance with the Act, the Commission's Rules, and the Commission's
Orders. The Plan will include, at a minimum, the following components:
a. Daystar will continue to utilize a multi-level review procedure for
underwriting content to be aired on the Stations. In working with
prospective underwriters, the Daystar staff will continue to brief
potential donors on the Underwriting Laws, provide them with the current
Daystar Copy Guidelines, and work with them to fashion acceptable
language.
b. Daystar will continue to train employees on acceptable underwriting
content, including but not limited to, the Commission's rules regarding
the sale or promotion of program-related goods or services that complies
with the Underwriting Laws.
c. Daystar will make good faith efforts, with respect to nationally
distributed programming aired on the Stations, to obtain from the
distributors of such programming the copy for underwriting announcements
contained in such programming in advance of such programming's broadcast,
for the purposes of independently reviewing such copy for compliance with
the Underwriting Laws.
d. Termination Date. Unless stated otherwise, the requirements of the
Compliance Plan will expire three (3) years after the Effective Date.
10. Compliance Reports. Daystar will file compliance reports with the
Commission ninety days after the Effective Date, twelve months after the
Effective Date, twenty-four months after the Effective Date, and upon
expiration of this Consent Decree, three years after the Effective Date.
Each compliance report shall include a compliance certificate from an
officer, as an agent of Daystar, stating that the officer has personal
knowledge that Daystar has established and maintained on an ongoing basis
operating procedures intended to ensure compliance with this Consent
Decree, together with an accompanying statement explaining the basis for
the officer's compliance certification. Each compliance report will
describe any significant difficulties the Licensee has encountered during
the reporting period in ensuring compliance with the Underwriting Laws,
what steps it has taken to resolve those difficulties, and the success of
those steps in doing so. All compliance reports shall be submitted to the
Chief, Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12th Street, S.W., Room 4-C330, Washington,
D.C. 20554.
11. Voluntary Contribution. Daystar agrees that it will make a voluntary
contribution to the United States Treasury in the amount of seventeen
thousand five hundred dollars ($17,500.00). The payment in full will be
made within five (5) calendar days after the Effective Date of the
Adopting Order. The payment must be made by check or similar instrument,
payable to the order of the Federal Communications Commission. The payment
must include the NAL/Account Number and FRN Number referenced in the
caption to the Adopting Order. Payment by check or money order may be
mailed to Federal Communications Commission, P.O. Box 979088, St. Louis,
MO 63197-9000. Payment by overnight mail may be sent to U.S. Bank -
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis,
MO 63101. Payment by wire transfer may be made to ABA Number 021030004,
receiving bank TREAS/NYC, and account number 27000001. For payment by
credit card, an FCC Form 159 (Remittance Advice) must be submitted. When
completing the FCC Form 159, enter the NAL/Account number in block number
23A (call sign/other ID), and enter the letters "FORF" in block number 24A
(payment type code). Daystar will also send electronic notification on the
date said payment is made to Hillary.DeNigro@fcc.gov,
Ben.Bartolome@fcc.gov, Kenneth.Scheibel@fcc.gov, and
Anita.Patankar-Stoll@fcc.gov.
12. Waivers. Daystar 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
Order adopting this Consent Decree, provided the Commission issues an
Order adopting the Consent Decree without change, addition, modification,
or deletion. Daystar shall retain the right to challenge Commission
interpretation of the Consent Decree or any terms contained herein. If
either Party (or the United States on behalf of the Commission) brings a
judicial action to enforce the terms of the Adopting Order, neither
Daystar nor the Commission shall contest the validity of the Consent
Decree or the Adopting Order, and Daystar shall waive any statutory right
to a trial de novo. Daystar 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.
13. Subsequent Rule or Order. The Parties agree that if any provision of
the Consent Decree conflicts with any subsequent rule or Order adopted by
the Commission (except an Order specifically intended to revise the terms
of this Consent Decree to which Daystar does not expressly consent) that
provision will be superseded by such Commission rule or Order.
14. Successors and Assigns. Daystar agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
15. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties. The
Parties further agree that this Consent Decree does not constitute either
an adjudication on the merits or a factual or legal finding or
determination regarding any compliance or noncompliance with the
requirements of the Act or the Commission's Rules and Orders. The Parties
agree that this Consent Decree is for settlement purposes only and that by
agreeing to this Consent Decree, Daystar does not admit or deny
noncompliance, violation or liability for violating the Act, the
Commission's Rules or Orders in connection with the matters that are the
subject of this Consent Decree.
16. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
17. Paragraph Headings. The headings of the Paragraphs in this Consent
Decree are inserted for convenience only and are not intended to affect
the meaning or interpretation of this Consent Decree.
18. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
19. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed and
delivered, shall be an original, and all of which counterparts together
shall constitute one and the same fully executed instrument.
________________________________
Kris Anne Monteith
Chief
Enforcement Bureau
________________________________
Date
________________________________
Marcus D. Lamb
President
Word of God Fellowship, Inc., aka Community Television Educators,
Inc.; Community Television Educators of Texas, Inc.; Community
Television Educators of DFW, Inc.; Educational Broadcasting
Corporation; Educational Public TV Corporation; Community Television
Educators, Inc.; Ho'ona'auao Community TV, Inc.; and Puget Sound
Educational TV, Inc.
________________________________
Date
See 47 U.S.C. S: 399b.
See 47 C.F.R. S: 73.621 (e).
See Letter from William D. Freedman, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, to EchoStar and Daystar, dated
February 20, 2004 ("February 20th LOI"); Letter from William D. Freedman,
Deputy Chief, Investigations and Hearings Division, Enforcement Bureau, to
Daystar, dated May 28, 2004 ("May 28th LOI"); Letter from William D.
Freedman, Deputy Chief, Investigations and Hearings Division, Enforcement
Bureau, to Daystar, dated July 16, 2004 ("July 16 LOI"); Letter from
William D. Freedman, Deputy Chief, Investigations and Hearings Division,
Enforcement Bureau, to Daystar, dated September 14, 2004 ("September 14th
LOI"); Letter from William D. Freedman, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, to EchoStar and Daystar, dated
October 8, 2004 ("Oct 8th LOI").
See 47 U.S.C. S: 399b.
See 47 U.S.C. S: 399b(a).
See 47 U.S.C. S: 399b(b)(2).
See Commission Policy Concerning the Noncommercial Nature of Educational
Broadcasting Stations, Public Notice (1986), republished, 7 FCC Rcd 827
(1992) ("Public Notice").
See Commission Policy Concerning the Noncommercial Nature of Educational
Broadcast Stations, Report and Notice of Proposed Rulemaking, 69 FCC 2d
200 (1978) ("First Report").
See Commission Policy Concerning the Noncommercial Nature of Educational
Broadcasting Stations, Memorandum Opinion and Order, 90 FCC 2d 895, 906 P:
20 (1982) ("1982 Policy Statement").
Id.; see also First Report, 69 FCC 2d at 210-11 P: 22 n.12.
See 1982 Policy Statement, 90 FCC 2d at 912 P: 28.
See Letters of Daystar to William D. Freedman, Deputy Chief,
Investigations and Hearings, Division, Enforcement Bureau, dated March 17
and 22, 2004 ("Daystar's March 17th Response and Daystar's March 22nd
Response"); Letter of Daystar to Kenneth M. Scheibel, Jr., Investigations
and Hearings Division, Enforcement Bureau, dated June 28, 2004 ("Daystar's
June 28th Response"); Letter of Daystar to Kenneth M. Scheibel, Jr.,
Investigations and Hearings Division, Enforcement Bureau, dated August 12,
2004 ("Daystar's August 12th Response"); Letter of Daysar to Kenneth M.
Scheibel, Jr., Investigations and Hearings Division, Enforcement Bureau,
dated November 8, 2004 ("Daystar's November 8th Response").
See Xavier University, Memorandum Opinion and Order, 5 FCC Rcd 4920
(1990).
See First Report, supra note 8.
Federal Communications Commission DA 08-2738
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Federal Communications Commission ________FCC 08-