A $76,000 civil penalty assessed to the board of trustees of the University of Arkansas is part of an agreement ending a Federal Communications Commission investigation into radio announcements at two stations licensed to the UA board.
The announcements -- on KBPU, in De Queen, and KTYC, in Nashville -- violated FCC underwriting laws, according to a consent decree dated Tuesday. The FCC began investigating after receiving a complaint in 2016 that announcements "impermissibly promoted" products or services offered by the stations' for-profit underwriters.
The stations are managed by Cossatot Community College of the University of Arkansas, which is based in De Queen and has a satellite campus in Nashville. UA System spokesman Nate Hinkel said the penalty will be paid out of the community college's budget.
The agreement states that noncommercial educational broadcasters "cannot air commercial advertising."
FCC guidelines distinguish between permissible underwriter announcements and commercial advertising, noting that announcement cannot include price information, for example.
The restrictions aim to "protect the public's use and enjoyment of commercial-free broadcasts" and "provide a level playing field for the noncommercial broadcasters that obey the law and for the commercial broadcasters that are entitled to seek revenue from advertising," states the consent decree.
As part of the agreement, the UA trustees board "admits that it broadcast announcements that violated the Commission's underwriting laws," as well as agrees to put in place a five-year compliance plan.
In a statement, Hinkel said the community college "felt proactive steps were taken to be in compliance [with FCC underwriting standards] prior to the FCC's initial letter of inquiry," but that the consent decree minimizes expenses by avoiding "protracted litigation."
"The consent agreement will ultimately help strengthen procedures, practices and reporting that will ensure all of the broadcasting efforts on UA System campuses operate more efficiently and are fully compliant moving forward," Hinkel said.
The consent decree states that no other complaints were received regarding any other stations licensed to the UA System. The agreement cites a complaint submitted in 2016 by Bunyard Broadcasting Inc. and Arklatex Radio Inc. about the radio announcements.
Metro on 01/08/2020