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Noncommercial Educational Stations 903
F.C.C. 70-487
BEFORE THE
FEDERAL COMMUNICATIONS COMMISSION
Wasnineron, D.C. 20554
In the Matter of
AMENDMENT oF Tuose Provisions or Part 73
or THE Commission’s Runes Watcu De-
scrIBE AND Detimir THe Nature or Nox-
COMMERCIAL, EpucationaL FM AnD FELE-
VISION BROADCAST Service, AND RELATED
Marrers. (Secs. 73.503 ann 73.621) J
MEMORANDUM OPINION AND ORDER
(Adopted May 6, 1970)
BY THE COMMISSION : COMMISSIONER BARTLEY DISSENTING AND ISSUING
A STATEMENT; COMMISSIONER Rozert E. LEE ABSENT; COMMIS-
SIONER JOHNSON CONCURRING IN THE RESULT.
1. Because the rules relating to financial support of noncommercial
educational FM and television stations were adopted at different times
and in different language, licensees have experienced difficulties in
interpreting them. Moreover, a certain lack of specificity has made it
difficult for many educational licensees to know just what types of
financial support they could accept, what broadcast acknowledgment
of support is permissible and, finally, what identification announce-
ments are required under our sponsorship identification rules.
2, These interpretations of Commission policy and rules present
issues of importance; since on the one hand they affect the financial
support of educational broadcast stations, and on the other hand they
pertain to the public’s right to know by whom it is being persuaded.
At the same time they affect the essential noncommercial character of
these services which permits them to fulfill the unique and important
role in our society which they do. ;
3. Confusion has resulted from differing language in section 73.503
(c), which describes noncommercial educational FM service, and
section 73.621(e) which describes noncommercial educational tele-
vision service. Although the language of the FM section is more sweep-
ing, it makes no reference to a station’s responsibilities for sponsorship
identification. At the same time the FM rule is more permissive with
regard to the furnishing of program material and the payment of line
charges than is the television rule (which permits payment of line
charges only by another station or network).
4, There was never any intent to exempt noncommercial educational
FM broadcast stations from the provisions of section 317 of the Com-
munications Act to the extent that they would be applicable to a non-
commercial service, such as with regard to the furnishing of program
22 F.O.C. 2d
904 Federal Communications Commission Reports
materials or the payment of line charges. At the same time, for the
sake of clarity and efficient administration, the noncommercial educa-
tional character of the two services should be described in the same way
in both rules; and there is no reason why the payment of line charges
should not be permitted in the case of noncommercial educational tele. -
vision stations to the same extent permitted in the case of noncom-
mercial FM broadcast stations.
5. In addition, experience has demonstrated the need for interpreta-
tive language which will give guidance to noncommercial educational
licensees in their determination of the types of language permitted as
acknowledgment of a donation of programing materials or costs, and,
conversely, what language is required for the proper identification of
one who has made such a donation. Similar guidance is needed in the
matter of the frequency of such announcements. Finally, we believe
that we are called upon to clarify and interpret the provisions which
permi! the furnishing of programs or programs costs. The question has
een raised as to whether such costs should include not only those in-
volved in the actual production of a program, but in addition a pro-
portionate share of the operating expenses of the station which are
required in order to make the program available to the public on their
receiving sets. We believe that they should, and that the rule should be
amended to make this clear.
6. We are amending the provisions of section 73.503, which describe
and delimit the nature of the noncommercial educational FM broad-
cast service, to conform to the like provisions of section 78.621 relating
to noncommercial educational television stations. At the same time we
are amending both sections so as to clarify the requirements of sponsor-
ship identification, acknowledgment of donations and the frequency
of such announcements, and so as to provide for the inclusion of station
operating costs within the permissible underwriting program costs
which may be donated to a noncommercial educational station.
7, Authority for the adoption of the amendments herein adopted is
contained in sections 4(i), 303 (a), (b), and (r), and 317 of the
Communications Act of 1934 as amended.
8. The changes in the rules adopted herein are largely clarifying,
editorial, and interpretive in nature; the effect, insofar as the substance
of the rule is changed, is chiefly to relax existing restrictions on the
acceptance of contributions and (in television) payment of line
charges. Insofar as the new rule concerning educational FM stations
may appear to impose a new requirement of announcements as to the
furnishing of programs by others, it represents what the intent of the
Commission’s rules has been, and simply imposes on these stations the
same requirements which have long been applicable to commercial
stations. Accordingly, we find that the public proceedings normally
required by the Administrative Procedure Act. (5 U.S.C. 553 (a) and
(b) } ave unnecessary.
9. In view of the foregoing, /t is ordered. That effective June 17.
1970. sections 78.503 and 73.621 of the Commission’s rules and regula-
tions Are amended, as set forth in the attached appendix.
FEDERAL COMMUNICATIONS Commission,
Ben F. Warts, Secretary.
22 F.C.C. 2d
Noncommercial Educational Stations 905
APPENDIX
1. In section 73.508, paragraph (c) is amended and paragraph (d) is added to
read as follows:
§ 78.503 Licensing requirements and service.
* * * kd kd cl *
“(¢c) A noncommercial educational FM broadcast station may broadcast
programs produced by, or at the expense of, or furnished by persons other than
the licensee, if no other consideration than the furnishing of the program and
the costs incidental to its production and broadcast are received by the licensee.
The payment of line charges by another station, network, or someone other than
the licensee of a noncommercial educational FM broadcast station, or general
contributions to the operating costs of a station, shall not be considered as being
prohibited by this paragraph,
“(d) Bach station shall furnish a nonprofit and noncommercial broadcast
service. Noncommercial educational FM broadcast stations are subject to the
provisions of § 78.289 to the extent that they are applicable to the broadcast of
programs produced by, or at the expense of, or furnished by others; however, no
announcements promoting the sale of a product or service shall be broadcast in
connection with any program.”
Nore 1.--Announcements of the producing or furnishing.of programs or the
provision of funds for their production may be made no more than twice, at the
opening and at the close of any program. The person or organization furnishing
or producing the program shall be identified by name only, and no mention shail
be made of any product or service with which it may have a connection,
Nore 2,_Announcements of general contributions of a substantial nature which
make possible the broadcast of programs for part, or all, of the day’s schedule
may be made no more than three times during the brordeast day.
2, In section 73.621, paragraphs (d) and (e) are amended to read as follows:
“$ 73.621 Noncommercial educational stations.
* * * + * 4 *
“(d@) A noncommercial educational television station may broadcast programs
produced by or at the expense of, or furnished by persons other than the licensee,
if no other consideration than the furnishing of the program and the costs inci-
dental to is production and broadcast are received by the licensee. The payment of
line charges by another station, network, or someone other than the licensee of
a noncommercial educational television station, or general contributions to the
operating costs of a station, shall not be considered as being prohibited by this
paragraph.
“(e) Bach station shall furnish a nonprofit and noncommercial broadcast
service. However, noncommercial educational television stations shall be subject
to the provisions of § 73.654 to the extent that they are applicable to the broad-
cast of programs produced by, or at the expense of, or furnished by others, except
that no announcements (visual or aural) promoting the sale of a product or
service shall be broadcast in connection with any program: Provided, however,
That where a sponsor’s name or product appears on the visual image during the
course of a simultaneous or rebroadcast program either on the backdrop or in
Similar form, the portions of the program showing such information need not be
deleted.
Nors 1.—Announcements of the furnishing or producing of programs may be
made no more than twice, at the opening and at the close of any program. The
person or organization furnishing or producing the program shall be identified
by name only, and no mention shall be made of any product or service with which
it may have a connection.
Nors 2.—Announcements of general contributions of a substantial nature which
make possible the broadcast of programs for part, or all, of the day's schedule may
be made no more than three times during the broadcast day.
22 F.C.C. 2a
906 Federal Communications Commission Reports
DISSENTING STATEMENT or COMMISSIONER Rosert T. BARTLEY
I dissent. :
In my opinion, the provisions for: (a) Carriage of television pro-
grams without deletion of backdrop video advertising, and for (b)
recovery of station operating costs from program suppliers, may result
improperly in commercialization and exploitation of noncommercial
educational broadcast stations.
Also, I believe that the amendments should not have been adopted
without a rulemaking proceeding.
22 F.C.C. 2d