[BC] Re: LPFM Operations

[Black, Mike]

1) NCE's and LPFM's have the same underwriter rules.
Agree

2) They are forbidden from broadcasting commercial material.
As defined by the FCC, they can not air commercials for a for-profit
entity. However, they are allowed to do so for non-profits, if they
choose, with some tradeoffs. 

3) Not only can they sell airtime, they can sell their whole 
station (not LPFM's, just NCE's).
Disagree. NCE's and LPFM's can not sell their station. And, according to
the FCC, can not sell airtime. They air announcements that acknowledge
donations to the station and must air announcements of legitimate
program support. In addition, point me to the rules that do not treat
NCE and LPFM stations the same in this regard.

4) Enhanced Underwriter Announcements are not commercials.
By the FCC's definition, Enhanced underwriting can include 
"logograms or slogans which identify and do not promote, location
information, value neutral descriptions of a product line or service,
and  brand and trade names and product or service listings." This is for
underwriting by for-profit businesses. However, all of the fines or
citations have been to stations that exceeded the FCC's guidelines. 

5) Sermons are not commercials.
I will pass on this, as I have very strong opinions of the way certain
over the air ministries are operated and conducted, and what they do
with the money. However, a case can be made that they express a
viewpoint. Thus, if you pay to place a sermon on the radio, it is a
commercial. A sermon length paid commercial, whether the Family Rosary,
or the 700 Club.

6) Gift offers to entice a donation are not commercials.
Agree, if by a non-profit. Sad to say, it reduces your tax write off by
the value of the gift. 

7) NCE stations get in trouble with the FCC over content, 
not price.
Not sure what you mean here by "price". Once again, the Commission, in
its own words, is concerned of the "Nature of Noncommercial Educational
Broadcasting". The content of announcements that contain "price" are an
issue, just as much if the station is operated in such a manner as to
question its overall noncommercial status. The FCC has stated if an
underwriting sounds like a commercial, though the language is ok, such
as music beds or sfx, then it is actionable. 

8) If they take in more revenue than their cost of 
operation, they may not distribute it among the officers and 
directors.
Agree