FEDERAL COMMUNICATIONS COMMISSION August 15.2012 .JULIUS GENACHOWSKI CHAIRMAN The Iionorable James M. InholC nited tales Senate 205 Russell Senate Office Building Washington. D.C. 20510 Dear Senator Inhofe: Thank you lor your leller concerning the ability of noncommercial educational broadcast stations to air messages on behalf of for-pro lit entities. I appreciate your interest in this maller and have directed the Chief of the Media l3ureau's Office of Communications and Industry Inl-ormation to respond. I am pleased to provide the enclosed correspondence discussing this maller. If you have any additional qucstions or need further assistance. please do not hesitate to contact me. Julius Genacho\\ski Enclosure 445 12TH STREET S.W. WASHINGTON. D.C. 20554 • 202·4 I 8'1000 Federal Communications Commission Washington, D.C. 20554 August 15. 2012 IN REPLY REFER TO: CN-1200893 The Honorable James M. Inhofe United States Senate 205 Russell Senate OfFicc Building Washington, D.C. 20510 Dear Senator Inhofe: Thank you for your letter concerning the policies and rules governing the ability of noncommercial educational (NCE) broadcast stations to air commcrcial messages on bchalf of for-profit entities. I appreciate learning your views on this important matter. The Communications Act prohibits all public broadcast stations from airing commercial advcrtisements, defined as messages which are intended "to promote any service, facility, or product offered by any person who is engaged in such offcring for profit." The Commission's corresponding rules also state that NCE stations may not broadcast promotional announcements on behalf of for-profit entities in exchange for the receipt of consideration to the licensee, its principals, or employees. At the same time, NCE stations, including independent and rcligious programmcrs, are pcrmitted to engage in "enhanced underwriting" that allows NCE stations to acknowledge and identify contributors on air. Such acknowledgements may include slogans and value-neutral descriptions of the contributors' products and services, but may not promote or make qualitative or comparative statements regarding contributors. On a related topic, the Commission recently adopted a Notice of Proposed RuLemokillg to solicit public comment on whether and under what circumstances to allow all NCE broadcast stations to allocate up to one percent of their annual broadcast time to conduct on-air fundraising activities for the benefit of charities and other third-party nonprofit organizations. The Notice specifically invites commcnt regarding the classes of NCE stations that may engage in fundraising, the types of nonprofit entities that may benefit from the fundraising, and the First Amendment implications of establishing eligibility criteria for stations and fundraising rccipients. The period for the submission of public comments is scheduled to close on August 21, 2012, and a copy of your letter will be included in the record of the proceeding. Page 2-The Honorable James M. lnhofe I trust this information is helpful, and please do not hesitate to conlact me if I can be of further assistance. Sincerely, ~\{~~C ~.~~ Michael S. Perko Chief, Office of Communications and Industry Information Media Bureau