people and say this would be-it is perfectly all right and there is no problem whatever to use this disclaimer. You do not have to put a big signboard up there saying paid political broadcast, all you have to do is just say, ladies and gentlemen, this is a program paid for by Senator Long to express his political views. Is that all right?

Mr. RAWSON. That is all right. That is fine. That is necessary under the statute.

The CHAIRMAN. To identify who pays for it?

Mr. RAWSON. That is correct, paid for by Senator Long.

The CHAIRMAN. You do not even have to say it is a political program?

Mr. RAWSON. No, he does not have to mention that. It is pretty obvious that it is going to be a political broadcast.

The CHAIRMAN. Not necessarily. You cannot tell. I might talk about something else.

Mr. RAWSON. This is all that is necessary.

The CHAIRMAN. Thank you very much. If I can get a letter from you to that effect, I will contact the station and tell them. Meanwhile, I will struggle along with that skull and crossbones.

Mr. RAWSON. I think the State associations are gradually educating the licensees in this regard.

The CHAIRMAN. Thank you so much.

I take it that you will think about it and see if you can give us some further views on what we could, if we wanted to, do about the problem of unauthorized broadcasts in behalf of the candidate.

Mr. GREENBURG. Mr. Chairman, I would certainly say that we will do our best to aid the committee in this respect. I will say that I think that at least part of this is a little bit out of the area of our primary expertise in this respect. But we certainly will provide the committee with whatever assistance we can in this regard. (The information referred to follows:)

SPONSORSHIP IDENTIFICATION REQUIREMENTS FOR POLITICAL BROADCASTS

The basis for the identification requirements is Section 317 of the Communications Act as implemented by the Commission's Rules. Attached is a copy of the Commission's Public Notice of May 6, 1963, which contains Section 317, the Commission's Rules and several interpretations of that Section.

With respect to your inquiry concerning sponsorship identification of political broadcasts, there is no statutory requirement nor Commission rule which requires a station to broadcast a "disclaimer" or make an announcement that "this is a paid political broadcast." In fact, standing alone, such announcements do not constitute compliance with the statute and the sponsorship identification rules. What is required is that an identification be broadcast which will fully and fairly disclose the identity of the person or persons by whom or in whose behalf payment is made. (See interpretation 33, (p. 455) in the attached Public Notice.) Further, in the case of television the identification may be aural, visual or both. The responsibility for determining whether the identification is aural or visual rests with the licensee. (See interpretation 34 (p. 455) in the Public Notice.)

PUBLIC NOTICE, FEDERAL COMMUNICATIONS COMMISSION, MAY 6, 1963

APPLICABILITY OF SPONSORSHIP IDENTIFICATION RULES

With the development of broadcast service along private commercial lines, meaningful government regulation of the various broadcast media has from an early date embraced the principle that listeners are entitled to know by whom they are being persuaded. Thus, as far back as the Radio Act of 1927 and continuing with section 317 of the Communications Act of 1934 there has been an unvarying requirement that all matter broadcast by any station for a valuable consideration is to be announced as paid for or furnished, and by whom.

On September 13, 1950, a bill (S. 1898) was signed into law amending section 217 of the Act to redefine the situations in which broadcast licensees must make

sorship identification announcements. In addition, the new law (Public Lav -752) added a new section 508 to the Act requiring disclosure by persons other tan broadcast licensees who provide or receive valuable consideration for the inclusion of any matter in a program intended for broadcast, the persons to whom section 508 relates had previously not been directly subject to any previous provisions of the Act. Subsection (e) of the revised section 317 directs the Commission to prescribe appropriate rules and regulations to implement the Congressional intent expressed in the new wording of section 317. In adopting the new legislation, the Congress also set forth a series of twenty-seven examples to illustrate the intended effect of the proviso clause in amended section 317(a). By Report and Order adopted May 1, 1963, in Docket No. 14094, the Commission promulgated revised sponsorship identification rules so as to implement amended section 317. There follows hereafter the amended section 317, new section 508, the Commission's revised rules and thirty-six illustrative interpretations including the twenty-seven examples mentioned above.

Section 317 reads as follows:

"SEC. 317. (a) (1) All matter broadcast by any radio station for which any money, service or other valuable consideration is directly or indirectly paid, or promised to or charged or accepted by, the station so broadcasting, from any person, shall, at the time the same is so broadcast, be announced as paid for or furnished, as the case may be, by such person: Provided, That 'service or other valuable consideration' shall not include any service or property furnished without charge or at a nominal charge for use on, or in connection with, a broadcast unless it is so furnished in consideration for an identification in a broadcast of any person, product, service, trademark, or brand name beyond an identification which is reasonably related to the use of such service or property on the broadcast. "(2) Nothing in this section shall preclude the Commission from requiring that an appropriate announcement shall be made at the time of the broadcast in the case of any political program or any program involving the discussion of any controversial issue for which any films, records, transcriptions, talent, scripts, or other material or service of any kind have been furnished, without charge or at a nominal charge, directly or indirectly, as an inducement to the broadcast of such program.

"(b) In any case where a report has been made to a radio station as required by section 508 of this Act, of circumstances which would have required an announcement under this section had the consideration been received by such radio station, an appropriate announcement shall be made by such radio station.

"(c) The licensee of each radio station shall exercise reasonable diligence to obtain from its employees, and from other persons with whom it deals directly in connection with any program or program matter for broadcast, information to enable such licensee to make the announcement required by this section.

"(d) The Commission may waive the requirement of an announcement as provided in this section in any case or class of cases with respect to which it determines that the public interest, convenience or necessity does not require the broadcasting of such announcement.

"(e) The Commission shall prescribe appropriate rules and regulations to carry out the provisions of this section."

“SEC. 508. (a) Subject to subsection (d), any employee of a radio station who accepts or agrees to accept from any person (other than such station) or any person (other than such station) who pays or agrees to pay such employee, any money, service or other valuable consideration for the broadcast of any matter over such station shall, in advance of such broadcast, disclose the fact of such acceptance or agreement to such station.

"(b) Subject to subsection (d), any person who, in connection with the production or preparation of any program or program matter which is intended for broadcasting over any radio station, accepts or agrees to accept, or pays or agrees to pay, any money, service or other valuable consideration for the inclusion of any matter as a part of such program or program matter, shall, in advance of such broadcast, disclose the fact of such acceptance or payment or agreement to the payee's employer, or to the person for whom such program or program matter is being produced or to the licensee of such station over which such program broadcast.

"(c) Subject to subsection (d), any person who supplies to any other person any program or program matter which is intended for broadcasting over any radio

station shall, in advance of such broadcast, disclose to such other person any information of which he has knowledge, or which has been disclosed to him, as to any money, service or other valuable consideration which any person has paid or accepted, or has agreed to pay or accept, for the inclusion of any matter as a part of such program or program matter.

"(d) The provisions of this section requiring the disclosure of information shall not apply in any case where, because of a waiver made by the Commission under section 317(d), an announcement is not required to be made under section 317... "(e) The inclusion in the program of the announcement required by section 317 shall constitute the disclosure required by this section.

"(f) The term 'service or other valuable consideration' as used in this section shall not include any service or property furnished without charge or at a nominal charge for use on, or in connection with, a broadcast, or for use on a program which is intended for broadcasting over any radio station, unless it is so furnished in consideration for an identification in such broadcast or in such program of any person, product, service, trademark, or brand name beyond an identification which is reasonably related to the use of such service or property in such broadcast or such program.

"(g) Any person who violates any provision of this section shall for each such violation, be fined not more than $10,000 or imprisoned not more than one year, or both."

Section 3.119 of the Commission's rules, relating to standard broadcast stations, reads as follows:

"§3.119 Sponsored programs, announcement of. (a) When a standard broadcast station transmits any matter for which money, services, or other valuable consideration is either directly or indirectly paid or promised to, or charged or received by, such station, the station shall broadcast an announcement that such matter is sponsored, paid for, or furnished, either in whole or in part, and by whom or on whose behalf such consideration was supplied: Provided, however, That 'service or other valuable consideration' shall not include any service or property furnished without charge or at a nominal charge for use on, or in connection with, a broadcast unless it is so furnished in consideration for an identification in a broadcast of any person, product, service, trademark, or brand name beyond an identification which is reasonably related to the use of such service or property on the broadcast.

(b) The licensee of each standard broadcast station shall exercise reasonable diligence to obtain from its employees, and from other persons with whom it deals directly in connection with any program matter for broadcast, information to enable such licensee to make the announcement required by this section.

"(c) In any case where a report (concerning the providing or accepting of valuable consideration by any person for inclusion of any matter in a program intended for broadcasting) has been made to a standard broadcast station, as required by section 508 of the Communications Act of 1934, as amended, of circumstances which would have required an announcement under this section had the consideration been received by such standard broadcast station, an appropriate announcement shall be made by such station.

"(d) In the case of any political program or any program involving the discussion of public controversial issues for which any records, transcriptions, talent, scripts, or other material or services of any kind are furnished, either directly or indirectly, to a station as an inducement to the broadcasting of such program, an announcement shall be made both at the beginning and conclusion of such program on which such material or services are used that such records, transcriptions, talent, scripts, or other material or services have been furnished to such station in connection with the broadcasting of such program: Provided, however, That only one such announcement need be made in the case of any such program of 5 minutes' duration or less, which announcement may be made either at the beginning or conclusion of the program.

"(e) The announcement required by this section shall fully and fairly disclose the true identity of the person or persons by whom or in whose behalf such payment is made or promised, or from whom or in whose behalf such services or other valuable consideration is received, or by whom the material or services referred to in paragraph (d) of this section are furnished. Where an agent or other person contracts or otherwise makes arrangements with a station on behalf of another, and such fact is known to the station, the announcement shall disclose the identity of the person or persons in whose behalf such agent is acting instead of the name of such agent.

"(f) In the case of any program, other than a program advertising commercial products or services, which is sponsored, paid for or furnished, either in whole or in part, or for which material or services referred to in paragraph (d) of this section are furnished, by a corporation, committee, association or other unincorporated group, the announcement required by this section shall disclose the name of such corportion, committee, association or other unincorporated group. In each such case the station shall require that a list of the chief executive officers or members of the executive committee or of the board of directors of the corporation, committee, association or other unincorporated group shall be made available for public inspection at the studios or general offices of one of the standard broadcast stations carrying the program in each community in which the program is broadcast.

"(g) In the case of broadcast matter advertising commercial products or services, an announcement stating the sponsor's corporate or trade name, or the name of the sponsor's product, when it is clear that the mention of the name of the product constitutes a sponsorship identification, shall be deemed sufficient for the purposes of this section and only one such announcement need be made at any time during the course of the program.

(h) Commission interpretations in connection with the foregoing rules may be found in the Commission's Public Notice entitled 'Applicability or Sponsorship Identification Rules' and such supplements thereto as are issued from time to time."

Sections 3.289 (FM broadcast stations), 3.654 (television broadcast stations) and 3.789 (international broadcast stations) contain the same provisions as §3.119, above. Section 3.654 contains the following additional subsection:

"(e) The announcements required by section 317(b) of the Communications Act of 1934, as amended, are waived with respect to feature motion picture films produced initially and primarily for theatre exhibition."

(NOTE: The waiver heretofore granted by the Commission in its Report and Order of November 21, 1960 (FCC 60-1369), continues to apply to programs filmed or recorded on or before June 20, 1963.)

The following are illustrative interpretations of section 317 and the Commission's rules. Interpretations 1 to 27, inclusive are incorporated without change from House Report 1800 (86th Congress, 2d Session):

(Clerk's note: Deleted material was made a part of the official files of the committee.)

"33. A station carries an announcement (or program) on behalf of a candidate for public office or on behalf of the proponents or opponents of a bond issue (or any other public controversial issue). At the conclusion thereof, the station broadcasts a 'disclaimer' or states that 'the preceding was a paid political announcement.' Such announcements per se do not demonstrate compliance with the sponsorship identification rules. The rules do not provide that either of the abovementioned types of announcements must be made, but they do provide in such situations that an identification be broadcast which will fully and fairly disclose the true identity of the person or persons by whom or in whose behalf payment was made. If payment is made by an agent, and the station has knowledge thereof, the announcement shall identify the person in whose hehalf such agent is acting. If the sponsor is a corporation, committee, association or other group, the required announcement shall contain the name of such group; moreover, the station broadcasting any matter on behalf of such group shall require that a list of the chief officers, members of the executive committee or members of the board of directors of the sponsoring organization be made available upon demand for public inspection at the studios or general offices of one of the stations in each community in which the program is broadcast. In the event of a network originated broadcast, the records required by the Commission's rules shall be made available upon demand for public inspection at the studios or general offices of the originating station.

“34. Must the required sponsorship announcement on television broadcasts be made by visual means in order for it to be an 'appropriate announcement' within the meaning of the Commission's rules?

"Not necessarily. The Commission's rule does not contain any provision stating whether aural or visual or both types of announcements are required. The purpose of the rule is to provide a full and fair disclosure of the facts of sponsorship, and responsibility for determining whether a visual or aural announcement is appropri

ate lies with the licensee. (See Commission telegram to Mr. Bert Combs, FCC Public Notice of April 9, 1959, Mimeo No. 71945.)

The CHAIRMAN. With regard to this matter of whether the station should be required to donate this time or whether the Government ought to pay for it, would you express your view as one involved on the regulatory end of the fairness and appropriateness with which Congress might or might not require that this time be given free? What are the considerations involved?

Mr. GREENBURG. Well, I think probably there are a number of considerations. Let me say that the Commission certainly has not taken any position on this particular question. I think it is primarily a judgment on the part of the Congress as to what it feels the obligations of radio and television broadcasters are and what the requirements of the public interest are.

The CHAIRMAN. In other words, from your point of view, it is a matter of our judgment as to what we think the public interest requirements and responsibilities of the station are? If we think it is their duty, we ought to make them do it and if we do not think it is their duty, we should not make them do it. Is that about what you are saying?

Mr. GREENBURG. Well, I think it is very largely a policy judgment. On the one hand, of course, these are licensees that are regulated and licensed by the Government. On the other hand, they are, of course, it is fully recognized, and rightly so, that they are commercial enterprises which, at least in their business dealings, are left largely free of Government regulations.

The CHAIRMAN. The stations that have the big listening audiences are making good money, I assume.

They are, are they not?

Mr. GREENBURG. Certainly a lot of stations are.

The CHAIRMAN. Do you control their rates for them or do you just let them use their own discretion?

Mr. GREENBURG. No, we do not control them.

The CHAIRMAN. Do you have the power to regulate their rates? Mr. GREENBURG. No, we do not; except in the very limited area we were talking about.

The CHAIRMAN. Except in the area of discrimination.
Mr. GREENBURG. That is right.

The CHAIRMAN. So the thought occurs to me, and this is not thinking in terms of a lawyer, but just a practical man trying to be fair about matters, I would have no compunction one way or the other about requiring some big station in Washington, New Orleans, or New York, making a lot of money up there, to donate the time free of charge to put these candidates on the air. I am talking about the President and his opponent. But it does upset me to think of some little station-I have known a lot of them that went broke. It does concern me to think about requiring that some little fellow who is losing money to give away more free time. He probably gives too much free time the way it is now. I wonder if that problem might exist somewhere else in the country? Are there any considerable number of television stations that are not making much money?

What is your guess?