[BC] LPFM Operations

[Black, Mike]

Actually, what comes to mind is FCC staff comments and at least a half a
dozen communications attorneys that have stated that selling blocks of
time on a non-commercial station can call into jeopardy the
non-commercial nature of the station's service. They cite the
communications act, section 399B

(a) For purposes of this section, the term "advertisement" means any
message or other programming material which is broadcast or otherwise
transmitted in exchange for any remuneration, and which is intended -- 

(1) to promote any service, facility, or product offered by any person
who is engaged in such offering for profit;
(2) to express the views of any person with respect to any matter of
public importance or interest;
(3) to support or oppose any candidate for public office. 

In the case of buying a block of time, their argument is that it is
programming material (THE PROGRAM) in exchange for cash, and it actually
falls under option 2, possibly option 1, if they are hawking books too
much or there is a for profit business owned by the non-profit. 

I can not imagine any noncommercial station wanting to put their license
at risk for selling air time in return for airing a program. In
addition, there is some concern of the example you gave of a nonprofit
group sponsoring a concert and buying air time to air the concert. The
Isothermal College ruling raised issues on for-profit promoters and
artists and their relationships. Again, based on accepted practice and
our attorney's opinion, I would not do it.

>>WHOA horsey....there's no such option on an NCE or 
>>LPFM....commercial continuity is illegal period.

Actually, this is incorrect. You can run commercial continuity for 501c3
organizations, complete with all the trimming. HOWEVER, you and they
will likely have to pay tax on the announcements. This is not an FCC
matter, but an IRS matter. I would stay away from them as it causes too
much confusion and can irritate your listeners. In addition, the FCC has
stated that if your underwriting announcements in terms of length,
sound, and quantity call into question the nature of your noncommercial
service, then they can take action.

>>Sidebar, I heard of an NCE FM that is being LMA'd.  Now you 
>>might want to raise your eyebrows on that.  But, I surmise 
>>that if they meet the ownership presence rule, and the other 
>>entity is nonprofit providing a noncommercial educational 
>>agenda, it would pass muster.

It actually does pass muster, in the latter way you describe. I know of
quite a few that do this legally. Some small, some big. Minnesota Public
Radio was doing this with a station in California. However, a case could
be made for a commercial entity running an LMA of a non-commercial
station, if it did so within the rules. I am not sure if that is being
done, but I could see it in a couple of ways, such as a commercial
classical outlet running a non-com station with a classical format or
someone like Salem running a non-com religious station, both keeping the
commercial part of the business out of the other stations. 

As for a program producer underwriting his own show, I would be very
careful if it were a business person that was producing a show that they
would not take liberties, or a preacher that decided to get a little to
loose with his program, turning into an on air appeal. The words
conflict of interest come to mind. Almost as bad a Phillip Morris
sponsoring Don't Smoke PSAs or programs. 

To be honest, I would rather keep the station well above board, then put
it at risk for a few bucks and the potential of listeners leaving or
losing their trust in what you are doing. 

Mike Black
Geneva, NY