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BR910320YA  X,- x  hh@) BRH910320YL x` `  hh@)  X-For renewal of licenses of hh@)  X-Stations WESA(AM)/WESAFM @)  X -Charleroi, Pennsylvania hh@)  I. A. 1. a.(1)(a) i) a) 1..1..1..1..1..1..1.~  X - | MEMORANDUM OPINION AND ORDER ă  Xt - AND FORFEITURE ORDER ă  X/- Adopted: July 15, 1997  Released: July 24, 1997  X- By the Commission:  X- T ă   X- xJI. INTRODUCTION ă x " X`- ` S"x1.` ` The Commission has before it for consideration: (i) our decision in In re  XI- xApplications of Farr Communications, Inc., 11 FCC Rcd 7262 (1996) ("Farr") and (ii) a  xRequest for Remission or Mitigation of Forfeiture filed by Farr Communications, Inc. ("FCI"),  X- xlicensee of WESA(AM)/WESAFM. In Farr, the Commission granted renewal of the licenses,  xsubject to reporting conditions and a Notice of Apparent Liability for forfeiture in the amount  xof $15,000. For the reasons that follow, we deny FCI's Request for Remission or Mitigation of Forfeiture and issue a forfeiture order in the amount of $15,000.  X-  X-  xfII. BACKGROUND ă  Xz!- ` px2.` ` In Farr, we found no substantial and material questions of fact sufficient to  xwarrant a hearing. In addition, we found no evidence that FCI, the licensee of stations  x<WESA(AM)/WESAFM, had engaged in discrimination. Accordingly, we granted renewal of the  x stations' licenses. However, we concluded that the licensee's EEO efforts were inadequate  xbecause the stations failed to contact recruitment sources for 70% of their 20 fulltime vacancies"%0*&&WW $"  xand recruited only one minority for one vacancy. In addition, the licensee failed to maintain  xadequate records for meaningful selfassessment, in accordance with 47 C.F.R.  73.2080.  xAlthough we granted renewal, in light of the EEO deficiencies, we imposed reporting conditions and a Notice of Apparent Liability ("NAL") for $15,000.  X- xIII. DISCUSSION ă  X_- ` x3.` ` Once a Notice of Apparent Liability for Forfeiture has been issued, the respondent  xmust show in writing why a forfeiture penalty should not be imposed, why it should be reduced  xor, in the alternative, pay the forfeiture. Any showing by the respondent must include a detailed factual statement and such documentation and affidavits as may be pertinent. 47 C.F.R.  1.80(f)(3).  X - ` x4.` ` First, FCI contends that the Commission incorrectly concluded that the Pittsburgh  x Metropolitan Statistical Area ("MSA") was the applicable labor force. FCI asserts that the  xCharleroi, Pennsylvania, market, the location of the stations, is served by neither convenient  xpublic transportation to Pittsburgh nor convenient roads to Pittsburgh and should, therefore, be  xviewed as an alternative labor force. FCI submitted various newspaper articles describing the  x/poor condition of the roads between Pittsburgh and Charleroi, and therefore contends that  xCharleroi should not be considered as a part of the Pittsburgh MSA. Attachment A of FCI's  X4- x.supplemental data consists of: (1) the May 2026, 1996, issue of The Real Estate Quarterly and  X- x(2) the June 14, 1996, issue of The Valley Independent. Both articles discuss the need for the  xdevelopment of the Mon/Fayette Expressway and the Southern Beltway within the Pennsylvania Turnpike.  X- ` x5.` ` We note that a similar argument was made by the licensee in the renewal  xproceeding and, thus, was considered in reaching our decision. In certain instances, we will  xevaluate a station's EEO efforts by reference to alternative labor force data if the licensee shows  X|- xthat the MSA labor force is not applicable to its circumstances. See Farr, 11 FCC Rcd at 7269  Xe- xK(discussion of alternative labor force test).  Even if Attachment A of FCI's submission adequately  xdemonstrated commuting difficulties from the areas of minority concentration to the station, it  xkwould not, standing alone, evidence impediments to attracting minority employees from the  xPittsburgh MSA. Since the licensee did not document all of its referrals, applicants, or  xinterviews, it is unable to show that its recruitment efforts directed at the MSA minority labor  X- xforce were fruitless. Farr, 11 FCC Rcd at 7269. A licensee must show that "despite extensive  x<recruitment involving use of minority referral sources, it was unable to obtain qualified applicants  X - xfrom areas of minority concentration in the MSA..." National Capital Christian Broadcasting,  X!- xInc., 3 FCC Rcd 1919, 1920 (1988). Thus, we affirm our earlier ruling that the Pittsburgh MSA is the appropriate labor force. "#0*$$WWG""Ԍ X- ` ax6.` ` Second, FCI argues that since the current owners, who were two of the five  xshareholders and owners at the time of the EEO violations, did not manage the daytoday  xoperations of the stations, FCI should not be held liable for the deficient EEO practices of its  X- xstations prior to September 1989.v  yO4- x-#X\  P6G;qP#э An Application for Transfer of Control, Form 315, [File Nos. BTC930910GH and BTCH930910GI] was filed  yO- xon September 10, 1993, approved on July 14, 1994, and consummated on July 1, 1996. Our decision in In re  yO- xwApplications of Farr Communications, Inc., 11 FCC Rcd 7262 (1996) was released on June 13, 1996. The license term  yO-at issue in this case extends from 1985 to 1991. FCI remains the licensee of stations WESA(AM)/WESAFM. v We disagree. Rita Resick and Richard Stafford were  xpresident and secretary of FCI, respectively, and as wife and husband owned 45.3% of shares  X- xboth before and after the transfer of control. Moreover, even if the daytoday operations of the  xstations involved misconduct of FCI's employees instead of shareholders it is well established that  xa corporation must be responsible for the FCCrelated misconduct occasioned by the actions of  xits employees in the course of their broadcast employment. "Merely standing back and waiting  xMfor disaster to strike or for the Commission to become aware of it will not insulate corporate  X - x.owners from the consequences of misconduct." Policy Regarding Character Qualifications in  X - xBroadcast Licensing, 102 FCC 2d 1179, 1197 (1986).X  yOd- x#X\  P6G;qP#э Accord In re Applications of Petroleum V. Nasby Corp., 10 FCC Rcd 6029, recon. granted in part, 10 FCC Rcd  x9964 (Rev. Bd. 1995) (wrongdoer's misconduct not necessarily attributable to licensee where, unlike here, misconduct unrelated to operation of station).  When a licensee delegates supervision  xover the operation of a station it must be held responsible under the concept of "respondeat  xsuperior". It is only by holding the licensee responsible that there can be any reasonable  X - xassurance of station operation in the public interest. See In re Application of Walton  X -Broadcasting, Inc., 78 FCC 2d 857, 866 (1980).  Xy- ` `x7.` ` Additionally, FCI's argument that it is being treated inconsistently by different  Xb- xbranches of the Commission is without basis. Specifically, FCI argues that it is arbitrary for the  xFCC to hold the licensee, for EEO purposes, to a geographic area that does not correspond to its  xjprotected service contour. However, the Commission looks to the MSA in which the station's  X- xcommunity of license is located to determine the relevant labor force for EEO purposes. A  x>particular MSA is determined by the Office of Management and Budget. If a station is not  xlicensed to a community located within an MSA, the Commission looks to the labor force  X- xstatistics for the county in which the community is located. See In re Applications of Sunshine  X- xWireless Co., Inc., 11 FCC Rcd 14290, 14293 (1996).X01Í ÍX01Í ÍX  yOB - x#X\  P6G;qP#э#X\  P6G;qP# The Commission is currently reviewing its policy for use of alternative labor force data. Streamlining  xBroadcast EEO Rule and Policies, Vacating the EEO Forfeiture Policy Statement and Amending Section 1.80 of the  yO!-Commission's Rules To Include EEO Forfeiture Guidelines, 11 FCC Rcd 5154, 5170 (1996).  However, the relevant labor force is not  xsynonymous with the community of license. Thus, contrary to Farr's suggestion, a Commission  xruling with respect to the area within which a licensee will be protected from interference has" 0*$$WW"  xyno bearing upon the relevant labor force for EEO purposes. Moreover, FCI's argument that the  X- x/Commission's decision in Farr polarized the community along racial lines is not a mitigating  X- xfactor. We are unpersuaded that a reduction is warranted because White local residents allegedly  xbelieve the NAL here was imposed because the licensee did not hire Blacks. The alleged  xconcern is based on a misinterpretation of our EEO Rule and its application in this case and is in any event irrelevant to our determination. Such error cannot serve as a mitigating factor.  X_- `  x8.` ` Lastly, the licensee states that it is unable to bear the financial hardship that the  xforfeiture would impose. However, the licensee's showing does not demonstrate an inability to  xpay. In support of such a showing, licensees are asked to submit data which include a profit and  X - xloss statement. (See attachment to Notice of Apparent Liability.) The data must not be older  xthan one year from their submission and must include payments to principals. If the licensee is  X - x.a corporation, the statement must be signed by an officer. The data submitted by the licensee  xydo not include a profit and loss statement. Rather, they consist of what appear to be cash flow  xprojections. For example, the last date shown actually postdates the submission. Furthermore,  x=the submission is not signed by an officer and the only indication of payments to principals is  xa W2 Form for one principal only. Even if we were to read the data provided in the light most  Xy- x\favorable to the licensee, arguendo, we would conclude that the licensee has not shown an  xinability to pay. The statements rely on projected noncash expenses of depreciation and  xamortization in excess of $30,000. Such allowances are not actual expenditures which affect the  xlicensee's cash availability in any negative way. Deducting them from the claimed losses leaves sufficient funds for payment of the forfeiture.  X- x|IV. CONCLUSION ă  X- ` x9.` ` After reviewing the record before us we find that a remission or reduction of the  x<forfeiture amount is not warranted. Therefore, for the reasons stated above, we issue a forfeiture order in the amount of $15,000.  Xe- x5V. ORDERING CLAUSES ă  X7- ` ~ 1..1..1..1..1..1..1. 1. a. i.(1)(a)(i) 1) a)~x10.` ` Accordingly, IT IS ORDERED that Farr Communications, Inc.'s Request for  X - xRemission or Mitigation of Forfeiture of the amount specified in In re Applications of Farr  X -Communications, Inc., 11 FCC Rcd 7262 (1996) is DENIED .  X - ` X` hp x (#%'0*,.8135@8: