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$115,000 Underwriting Violation Fine Levied Against NCEs

The Cesar Chavez Foundation will pay $115,000, have a one-year moratorium on underwriting from for-profit entities and set up a compliance plan, under a consent decree the FCC announced Thursday. The agency said the settlement is the largest penalty for…

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violations of its underwriting rules. An Enforcement Bureau order said the foundation FM's KNAI Phoenix and KUFW Woodlake, California, broadcast announcements between August 2016 and March 2017 promoting goods or services of its financial contributors despite being noncommercial educational stations. NCEs can name underwriters but can't promote those underwriters' businesses, products or services. In a statement, the foundation said it “fully cooperated with the FCC and accepts its findings. This has been a learning experience for the organization and as we move forward in polarizing times we will continue being a voice for our community of one million daily listeners across 11 stations in four states.”