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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of File No. EB-06-IH-2944
)
EMMIS AUSTIN RADIO BROADCASTING NAL/Acct. No. 201132080029
COMPANY, L.P. )
FRN No. 0003782273
Licensee of Station KROX-FM, Buda, )
Texas Facility ID No. 54659
)
)
ORDER
Adopted: July 21, 2011 Released: July 22, 2011
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Emmis Austin Radio
Broadcasting Company, L.P. (the "Licensee"). The Consent Decree terminates
an investigation by the Bureau against the Licensee for possible
violations of sections 317 and 507 of the Communications Act of 1934, as
amended (the "Act"), and section 73.1212 of the Commission's Rules,
regarding sponsorship identification.
2. The Bureau and the Licensee have negotiated the terms of a Consent
Decree that resolve this matter. A copy of the Consent Decree is attached
hereto and incorporated by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether the Licensee possesses the basic
qualifications, including those related to character, to hold or obtain
any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the
Communications Act of 1934, as amended, and sections 0.111 and 0.311 of
the Commission's Rules, the Consent Decree attached to this Order IS
ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that the third-party complaint against the
Licensee before the Bureau related to the
above-captioned-investigation as of the date of this Consent Decree IS
DISMISSED.
8. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent to by first-class, certified mail, return receipt
requested to Emmis Austin Radio Broadcasting Company, L.P., One Emmis
Plaza, 40 Monument Circle Suite 700, Indianapolis, Indiana 46204, and
to John E. Fiorini III, Wiley Rein LLP, 1776 K Street, NW, Washington,
D.C. 20006.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of File No. EB-06-IH-2944
)
EMMIS AUSTIN RADIO BROADCASTING NAL/Account No. 201132080029
COMPANY, L.P. )
FRN No. 0003782273
Licensee of Station KROX-FM, Buda, )
Texas Facility ID No. 54659
)
)
CONSENT DECREE
1. The Enforcement Bureau ("Bureau") and Emmis Austin Radio Broadcasting
Company, L.P. (the "Licensee"), by their authorized representatives,
hereby enter into this Consent Decree for the purpose of terminating
the Bureau's investigation into whether the Licensee violated the
Sponsorship Identification Laws, as defined below.
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. "Business Reforms" means the conduct and activities described in
Attachment B to this Consent Decree.
e. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
f. "Complaint" means the third-party complaint received by or in the
possession of the Bureau, forming the basis for the Bureau's April 26,
2007, and November 29, 2007, Letters of Inquiry, regarding whether the
Licensee violated the Commission's Sponsorship Identification Laws in
connection with its operation of the Station prior to the effective
date of the Adopting Order.
g. "Compliance Plan" means the program described in Attachment A to this
Consent Decree.
h. "Effective Date" means the date on which the Commission releases the
Adopting Order.
i. "Investigation" means the Bureau's investigation of the Complaint
alleging violations of the Sponsorship Identification Laws by the
Licensee.
j. "Licensee" means Emmis Austin Radio Broadcasting Company, L.P. and its
predecessors-in-interest and successors-in-interest as licensee of the
Station.
k. "Parties" means the Licensee and the Bureau.
l. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
m. "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."
n. "Station" means Station KROX-FM, Buda, Texas (Facility ID No. 54659).
II. BACKGROUND
3. On August 1, 2006, the Commission received the Complaint which alleged
that a program broadcast by the Station was involved in a payola
scheme. Specifically, the complainant alleges that the host of the
program received valuable consideration from: (a) a heavy metal music
store; (b) a venue where featured bands perform live; and (c) a
booking agent and a band manager. The complainant also alleges that
independent artists are unable to secure airplay unless they sponsor
events organized by the Station but directed or hosted by the host. On
April 26, 2007, and November 29, 2007, the Bureau issued Letters of
Inquiry to the Licensee concerning information in the Complaint. The
Licensee responded on June 28, 2007, July 17, 2007, and January 7,
2008.
4. The Bureau and the Licensee acknowledge that any proceedings that
might result from the Investigation would be time-consuming and would
require substantial expenditure of public and private resources. In
order to conserve such resources and to ensure continued compliance by
the Licensee with the Sponsorship Identification Laws, the Bureau and
the Licensee are entering into this Consent Decree in consideration of
the mutual commitments made herein.
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. The Licensee 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 to dismiss the Complaint. In consideration for the
termination of said Investigation and dismissal of the Complaint, the
Licensee 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 the Licensee 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 the Licensee with respect to
the Licensee's basic qualifications, including its character
qualifications, to be a Commission licensee or to hold Commission
authorizations.
9. Compliance Plan and Business Reforms. For purposes of settling the
matters set forth herein, the Station agrees to implement and maintain
a Compliance Plan and Business Reforms related to future compliance
with the Act, the Commission's Rules, and the Commission's Orders.
Summaries of the Compliance Plan and Business Reforms are set forth in
Attachments A and B hereto, respectively. The Compliance Plan will
include, at a minimum, the components found in Attachment A to this
Consent Decree. The Station agrees to implement the Business Reforms
and the Compliance Plan within sixty (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 the
Station wishes to revise any material aspect of the Business Reforms
or the Compliance Plan, the Station will provide the Bureau advance
written notice of the proposed changes. The Station may implement such
changes if the Bureau does not object to them within thirty (30) days
of their submission by the Station.
10. Compliance Reports. The Station will file Compliance Reports with the
Commission ninety (90) days after the Effective Date, twelve (12)
months after the Effective Date, twenty-four (24) months after the
Effective Date, and upon expiration of this Consent Decree, three (3)
years after the Effective Date. Each Compliance Report shall include a
certification by the Compliance Officer, as an agent of and on behalf
of the Station, stating that the Compliance Officer has personal
knowledge that the Station: (i) has established operating procedures
intended to ensure compliance with the terms and conditions of this
Consent Decree and with the Sponsorship Identification Laws, together
with an accompanying statement explaining the basis for the Compliance
Officer's certification; (ii) has been utilizing those procedures
since the previous Compliance Report was submitted; and (iii) is not
aware of any instances of non-compliance. The certification must
comply with section 1.16 of the Rules and be subscribed to as true
under penalty of perjury in substantially the form set forth therein.
If the Compliance Officer cannot provide the requisite certification,
the Compliance Officer, as an agent of and on behalf of the Station,
shall provide the Commission with a detailed explanation of: (i) any
instances of non-compliance with this Consent Decree and the
Sponsorship Identification Laws; and (ii) the steps that the Station
has taken or will take to remedy each instance of non-compliance and
ensure future compliance, and the schedule on which proposed remedial
actions will be taken. All compliance reports shall be submitted to
the Chief, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, Room 4-C330, 445 12th Street, S.W.,
Washington, D.C. 20554, with a copy submitted electronically to Anjali
Singh at Anjali.Singh@fcc.gov and to Melissa Marshall at
Melissa.Marshall@fcc.gov.
11. Voluntary Contribution. The Licensee agrees that it will make a
voluntary contribution to the United States Treasury in the amount of
twelve thousand dollars ($12,000). The payment will be made within
fifteen (15) days after the period for administrative and judicial
review of the Adopting Order has lapsed. 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). The Licensee will also send
electronic notification on the date said payment is made to
Terry.Cavanaugh@fcc.gov, Jeffrey.Gee@fcc.gov, Anjali.Singh@fcc.gov,
and Melissa.Marshall@fcc.gov.
12. Waivers. The Licensee 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. The Licensee 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 the Licensee nor the Commission shall contest
the validity of the Consent Decree or the Adopting Order, and the
Licensee shall waive any statutory right to a trial de novo. The
Licensee 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. Invalidity. In the event that this Consent Decree in its entirety is
rendered invalid by any court of competent jurisdiction, it shall
become null and void and may not be used in any manner in any legal
proceeding.
14. 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 the Licensee does not expressly
consent), that provision will be superseded by such Commission rule or
Order.
15. Successors and Assigns. The Licensee agrees that the provisions of
this Consent Decree shall be binding on its successors, assigns, and
transferees.
16. 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 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, the Licensee 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.
17. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
18. 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.
19. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
20. 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.
FEDERAL COMMUNICATIONS COMMISSION
________________________________
P. Michele Ellison
Chief
Enforcement Bureau
________________________________
Date
EMMIS AUSTIN RADIO BROADCASTING COMPANY, L.P.
By: Radio Austin Management, L.L.C., its general partner
By: Emmis Operating Company, its manager
________________________________
J. Scott Enright
Executive Vice President and General Counsel
________________________________
Date
ATTACHMENT A
Compliance Plan
The Licensee has developed, and is implementing, a Compliance Plan at the
Station for the purpose of furthering compliance with the Sponsorship
Identification Laws and adherence to the Business Reforms set forth in
Attachment B. At a minimum, 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. The Station 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 the Licensee's Board of Directors and the
Licensee's Communications Counsel concerning the Station's
compliance with this Agreement and with the Business Reforms for a
period of three years from the Effective Date. The first such
report shall be submitted within sixty (60) days of the Effective
Date and additional reports will be submitted at least annually
thereafter. Each such report will cover the preceding 12-month
period and shall be submitted within thirty (30) calendar days
thereafter.
1. Training of Programming Personnel. The Station 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 Station
Programming Personnel within sixty (60) days of the Effective Date.
The training will be provided to all new Station Programming
Personnel within thirty (30) days after they commence their duties.
Refresher training will be provided to all employees described above
at least once every twelve months.
2. Compliance Officer. The Licensee has designated a Compliance Officer,
whose responsibility is to seek to ensure the Station'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 Station Programming Personnel; (b) being
accessible by telephone and/or e-mail to any Station 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 the Station's
continuing compliance with the Business Reforms and the Sponsorship
Identification Laws; (d) monitoring the Station's compliance with the
Business Reforms and the Sponsorship Identification Laws; (e)
reporting on an annual basis to the Station's Board of Directors
regarding compliance of the Station and employees with the Business
Reforms and the Sponsorship Identification Laws; and (f) such other
activities as the Compliance Officer deems necessary or appropriate
to carry out his or her duties.
3. Hotline. The Licensee shall maintain a direct-dial line for Station
employees through which they can reach the Compliance Officer to
obtain advice on compliance with, and report violations of, the
Sponsorship Identification Laws. The Licensee shall maintain a log of
all such calls, e-mails, meetings or other such employee inquiries,
providing for each, to the extent available: (i) the date of the
call, e-mail, meeting or other inquiry; (ii) the caller/inquiring
party and his or her job title with the Station; and (iii) the
disposition by the Compliance Officer and the date of such
disposition.
4. Database and Telephone Support
A. Database. The Station 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 Bureau
upon request.
B. Telephone Support. The Station Compliance Officer will be
available by telephone for Station employees to obtain advice
on compliance with the Business Reforms, and report violations
of the Business Reforms. Compliance Officer may also obtain
advice from Licensee Communications Counsel.
5. Contractual Agreements. The Station will ensure that all new
contractual agreements with respect to Programming Personnel include
a contractual obligation relating to compliance with the Sponsorship
Identification Laws.
6. FCC Enforcement Actions. If the 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 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 the Licensee 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
Business Reforms
The Licensee has implemented, and is implementing on a Station-wide basis,
certain business reforms for the purpose of furthering compliance with the
Sponsorship Identification Laws. To the extent not already undertaken,
within sixty (60) days of the Effective Date of the Consent Decree to
which this statement is attached, the Licensee shall implement and adhere
to the following practices ("Business Reforms").
1. Prohibited Activity.
A. Record Label and Record Label Employees. Neither the Station, nor
any Station employee (collectively, "Licensee 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. Licensee Parties shall not accept any item
of value from an independent music promoter, unless that promoter
certifies in writing to the Licensee that no compensation to the promoter
from a Record Label is based upon airplay.
7. Permissible Restricted Activity. Licensee 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: Licensee 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 the Station event or
promotion, or for the benefit of charity, to persons or
entities other than Station 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: Licensee 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: Licensee Parties may enter into
commercial transactions with Record Labels pursuant to which
the Station 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: Licensee 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. The Station's 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
the 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: Licensee Parties may solicit, receive
and accept the following items of value from Record Labels for
use by the Station:
i. CDs and other promotional items of nominal value. The
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 Station employees with recordings;
(B) electronic copies of recordings for posting on the
Station's website to familiarize visitors to such websites
with the Artists' recordings; and (C) promotional items
intended for the personal use of Licensee 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. The 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 Station employees and, in the case of
a concert, an employee's spouse or "significant other," to
familiarize them with the performing Artists. Tickets
provided by Record Labels for Station 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 Station or a Record Label. Station
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. The Station may
receive and accept from a Record Label gifts that
commemorate achievements of the Licensee, the 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. Station 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. Station 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. The Station 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. The Station may receive and
accept from a Record Label reasonable travel and lodging
expenses for Station employees to attend live performances
or appearances by Artists for the purpose of familiarizing
such employees with a Record Label's Artists. The Station
may also receive and accept from a Record Label reasonable
travel and lodging expenses to industry events if the
Station provides, to the satisfaction and approval of the
Compliance Officer, a legitimate business purpose
underlying the Record Label's payment of such expenses. The
Station shall be limited to 20 such trips annually, to be
allocated among Station employees at the discretion of the
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 Station employee may also receive
and accept meals and entertainment during such trips,
consistent with and subject to P: 2.E.(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.
8. Mandatory Documentation. The Station shall record and document all
activity set forth in P: 2, above, as follows:
A. Database record of items of value received from a Record Label.
The Station shall establish and maintain one or more databases
(collectively, the "Database") containing a record identifying
items of value that exceed $25 (on an individual per item
basis) received by each Station 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 intended to be
awarded in a contest or given away by the Station, the Database
shall record the date and manner of disposition and recipient
of each such item. Items received for use by the Station or its
employees shall be so recorded. Items received by the Station
or Station employees personally or in connection with
business-related meals, entertainment and travel shall be
recorded in the Database separately. Notwithstanding the
foregoing, CDs having a per-item value in excess of $25 need
not be recorded unless received for contests or giveaways.
B. Contests or Giveaways. In addition to the documentation
maintained in the Database in each instance where the Station
solicits, receives or accepts an item from a Record Label to
give away on the air, and the value of such item exceeds the
monetary reporting threshold established by the Internal
Revenue Service, the Station shall 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.
See 47 U.S.C. S:S: 317, 508.
See 47 C.F.R. S: 73.1212.
See 47 U.S.C. S: 154(i).
See 47 C.F.R. S:S: 0.111, 0.311.
See Letter from Complainant to Investigations and Hearings Division,
Enforcement Bureau, Federal Communications Commission, received August 1,
2006 ("Complaint").
See Letter from Benigno E. Bartolome, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications Commission,
to Emmis Austin Radio Broadcasting Company, L.P., dated April 26, 2007;
Letter from Benigno E. Bartolome, Deputy Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications Commission,
to Emmis Austin Radio Broadcasting Company, L.P., dated November 29, 2007
("Letters of Inquiry").
See supra note 1.
See id.
See id.
See supra note 2.
See Letter from John E. Fiorini III, Attorney for Emmis Communications
Corporation, to Marlene H. Dortch, Secretary, Federal Communications
Commission, filed June 28, 2007; Letter from John E. Fiorini III, Attorney
for Emmis Communications Corporation, to Marlene H. Dortch, Secretary,
Federal Communications Commission, filed July 17, 2007; Letter from John
E. Fiorini III, Attorney for Emmis Communications Corporation, to Marlene
H. Dortch, Secretary, Federal Communications Commission, filed January 7,
2008.
See 47 C.F.R. S: 1.16.
Dollar amounts in this section may be adjusted for inflation based on the
Consumer Price Index.
Federal Communications Commission DA 11-888
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Federal Communications Commission DA 11-888
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