Initial Settlement Proposal for Radio Payola: $10 Million

INITIAL SETTLEMENT PROPOSAL FOR RADIO PAYOLA: $10 MILLION
[SOURCE: USAToday, AUTHOR: Paul Davidson]
The nation's four largest radio broadcasters would make payments and other contributions valued at about $10 million under a proposed settlement of a year-long probe by the Federal Communications Commission into pay-for-play claims in the music industry. While the FCC's three Republicans generally have backed less-punitive terms, Democrats Jonathan Adelstein and Michael Copps have been pushing for tougher concessions. Under settlement terms proposed several weeks ago, the broadcasters would devote $7 million of airtime to independently produced music. The radio giants also would pay $3 million to a fund for the National Association of Broadcasters to provide training to member stations to stop payola. But some FCC officials are concerned that the agency doesn't have the authority to require such contributions. As a result, the original proposal was expected to be pulled Wednesday night. A new proposal is expected to require the broadcasters to pay a more traditional penalty of $10 million to $15 million to the U.S. Treasury. In addition, the companies would draft compliance plans detailing which practices are unacceptable. FCC Democrats worried the original proposal did not give the agency sufficient oversight.
http://www.usatoday.com/printedition/money/20070201/fcc01.art.htm