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                            Before the
                Federal Communications Commission
                      Washington, D.C. 20554


In the Matter of                  )          
                                 )               
HBC License Corporation           )     File No. EB-02-SD-157
                                 )         
Licensee of Station KHOT-FM       )         and
Paradise Valley, Arizona          )               
                                 )     File No. EB-02-SD-158
Licensee of Station KHOV-FM       )
Wickenburg, Arizona               )          NAL/Acct.       No.: 
                                 )    200332940001
                                 )     FRN: 000-494-6141

         NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                             Released:  
                                             November 29, 
                                             2002

By  the District  Director,  San  Diego Office,  Enforcement 
Bureau:

                           I.  INTRODUCTION


     1.   In   this  Notice   of   Apparent  Liability   for 
Forfeiture  ("NAL"), we  find that  HBC License  Corporation 
(``HBC''),  licensee  of   FM  Broadcast  stations  KHOT-FM, 
Paradise Valley,  Arizona and KHOV-FM,  Wickenburg, Arizona, 
has  apparently willfully  and repeatedly  violated Sections 
11.35(a), 11.35(c)  and 11.61  of the Commission's  Rules by 
failing  to  maintain  operational  Emergency  Alert  System 
("EAS")  encoder and  decoder  equipment and  by failing  to 
conduct and  log required EAS tests.1  We conclude, pursuant 
to  Section 503(b)  of the  Communications Act  of 1934,  as 
amended  (``Act''),2 that  HBC  is apparently  liable for  a 
forfeiture in the amount of eight thousand dollars ($8,000). 


                            II.  BACKGROUND

     2.   On May 6, 2002, an  Agent from the FCC's San Diego 
Office inspected stations KHOT-FM  and KHOV-FM at the shared 
main  studio facility  located  at 4745  N.  7th St.,  #140, 
Phoenix, Arizona.  The inspection  revealed that KHOT-FM and 
KHOV-FM share  common EAS  equipment, which  at the  time of 
inspection,  appeared to  be operational.   The Agent  noted 
that HBC maintained a single, continuous printout of the log 
for the  EAS equipment for  both KHOT-FM and  KHOV-FM.  This 
printout indicated that no EAS tests (sent or received) were 
conducted during the period  from September 14, 2001 through 
April 9, 2002.  Further, the printout indicated that the EAS 
unit  was not  operational from  September 17,  2001 through 
April 8, 2002.  There was  no written explanation of why the 
EAS tests were omitted or  any indication that the stations' 
chief operator or other  personnel attempted to identify the 
source of any problem with the EAS equipment.  

     3.    On May 28, 2002,  an official Notice of Violation 
was issued  to HBC for  failing to maintain  operational EAS 
equipment, for  failing to  receive and transmit  tests, and 
for  failing  to  conduct  weekly checks  of  the  station's 
records by the designated  chief operator from September 14, 
2001 though April 9, 2002.3

     4.     On June  27, 2002,  the FCC's  San Diego  office 
received a reply letter dated  June 26, 2002, from HBC.  The 
letter  included a  statement  from  HBC's designated  chief 
operator dated June  24, 2002.  In that  statement the chief 
operator  acknowledged the  violations and  delineated steps 
taken to prevent future EAS rule violations. 


                           III.  DISCUSSION

     5.  Section 503(b) of the Act provides that any person 
who willfully  or repeatedly  fails to  comply substantially 
with the terms  and conditions of any  license, or willfully 
or repeatedly fails to comply  with any of the provisions of 
the Act  or of any rule,  regulation or order issued  by the 
Commission  thereunder, shall  be  liable  for a  forfeiture 
penalty.4  The  term ``willful''  as used in  Section 503(b) 
has  been  interpreted  to  mean simply  that  the  acts  or 
omissions  are committed  knowingly, and  ``repeated'' means 
the commission or omission of the  act more than once or for 
more than one day.5 

     6.   The Rules provide that  every FM Broadcast station 
is part of the nationwide  EAS network and is categorized as 
a  participating  national  EAS source  unless  the  station 
affirmatively requests  authority to not  participate.6  The 
EAS provides  the President and state  and local governments 
with  the  capability  to provide  immediate  and  emergency 
communications  and  information  to  the  general  public.7  
State and local area  EAS plans identify sources responsible 
for coordinating carriage of  common emergency messages from 
agencies  such  as the  National  Weather  Service or  local 
emergency management officials.8
 
     7.   The Rules require FM Broadcast stations to ensure 
that EAS  equipment, such  as encoders,  decoders, attention 
signal generators  and receivers,  is installed so  that the 
monitoring and  transmitting functions are  available during 
the times whenever the station  is in operation.9  The Rules 
also require  FM Broadcast stations to:  (a) receive monthly 
EAS  tests from  designated EAS  sources and  retransmit the 
monthly  test  within 60  minutes  of  its receipt  and  (b) 
conduct tests of the EAS header  and EOM codes at least once 
a week at random days and times.10

     8.  As required by Section 11.61 of the Rules, monthly 
EAS  tests  must  be  retransmitted  within  60  minutes  of 
receipt, weekly EAS tests be  conducted at least once a week 
at random times  and all EAS tests  received and transmitted 
must be logged in the station's records.  Section 73.1820(a) 
of the Rules provides, in part, that entries must be made in 
the station  log either manually  by a person  designated by 
the licensee  who is  in actual  charge of  the transmitting 
apparatus  or by  automatic  devices.11   This rule  section 
further provides that all stations  must enter each test and 
activation of the  EAS pursuant to the  requirements of Part 
11 of the  Rules and the EAS  Operating Handbook.12 Stations 
may  keep EAS  data in  a special  EAS log  maintained at  a 
convenient location; however, this  log is considered a part 
of the station log. 

     9.  The shared EAS log for KHOT-FM and KHOV-FM indicated 
that  the  EAS equipment  was  not  operational for  over  6 
months,  and  that personnel  for  both  stations failed  to 
conduct  or  log  a  single  transmitted  or  received  test 
(monthly or weekly) from any  source from September 14, 2001 
through  April 9,  2002.   The  log also  revealed that  the 
designated chief operator did  not conduct the weekly review 
of the station's log.

     10.  Based on the evidence, we find that HBC willfully 
and  repeatedly violated  Sections  11.35 and  11.61 of  the 
Rules by  failing to maintain operational  EAS equipment and 
failing to comply with EAS testing and logging requirements.  
The  base   forfeiture  amount   set  by   The  Commission's 
Forfeiture Policy Statement and Amendment of Section 1.80 of 
the   Rules  to   Incorporate  the   Forfeiture  Guidelines, 
(``Forfeiture Policy Statement''),13 and Section 1.80 of the 
Rules,14 for  EAS equipment not installed  or operational is 
$8,000.   In assessing  the monetary  forfeiture amount,  we 
must also take into account  the statutory factors set forth 
in  Section  503(b)(2)(D)  of  the Act,  which  include  the 
nature,   circumstances,   extent,   and  gravity   of   the 
violation(s), and  with respect to the  violator, the degree 
of culpability,  and history  of prior offenses,  ability to 
pay, and other such matters as justice may require. Applying 
the Forfeiture Policy Statement and the statutory factors to 
the instant case, an $8,000 forfeiture is warranted.
 
                    IV.  ORDERING CLAUSES

     11.     Accordingly, IT IS ORDERED THAT, pursuant to 
Section  503(b)  of  the  Communications  Act  of  1934,  as 
amended,15  and  Sections  0.111,  0.311  and  1.80  of  the 
Commission's Rules,  HBC is  hereby NOTIFIED of  an APPARENT 
LIABILITY FOR A  FORFEITURE in the amount  of eight thousand 
dollars  ($8000)   for  violations  of   Sections  11.35(a), 
11.35(c) and 11.61 of the Rules.16 

     12.   IT IS FURTHER ORDERED THAT, pursuant to Section 
1.80 of  the Commission's Rules,  within thirty days  of the 
release date of this NOTICE OF APPARENT LIABILITY, HBC SHALL 
PAY the full amount of the proposed forfeiture or SHALL FILE 
a written statement seeking reduction or cancellation of the 
proposed forfeiture.

     13. Payment of the forfeiture may be made by mailing a 
check or  similar instrument,  payable to  the order  of the 
Federal   Communications  Commission,   to  the   Forfeiture 
Collection Section,  Finance Branch,  Federal Communications 
Commission,  P.O. Box  73482, Chicago,  Illinois 60673-7482.  
The payment  must include the FCC  Registration Number (FRN) 
and the NAL/Acct. No. referenced in the caption.

     14.   The response, if any, must be mailed to Federal 
Communications Commission, Enforcement Bureau, Technical and 
Public  Safety Division,  445 12th  Street, SW,  Washington, 
D.C. 20554 and must include  the NAL/Acct. No. referenced in 
the caption.

     15.     The Commission will not consider reducing or 
canceling a forfeiture  in response to a  claim of inability 
to  pay  unless the  petitioner  submits:   (1) federal  tax 
returns for the most recent three-year period; (2) financial 
statements   prepared   according  to   generally   accepted 
accounting practices (``GAAP''); or  (3) some other reliable 
and  objective documentation  that  accurately reflects  the 
petitioner's  current   financial  status.   Any   claim  of 
inability to  pay must  specifically identify the  basis for 
the  claim  by  reference  to  the  financial  documentation 
submitted.  

     16.   Requests for payment of the full amount of this 
Notice  of  Apparent  Liability under  an  installment  plan 
should  be   sent  to:    Chief,  Revenue   and  Receivables 
Operations  Group, 445  12th  Street,  SW, Washington,  D.C. 
20554.17

     17.   Under the Small Business Paperwork Relief Act of 
2002, Pub L. No. 107-198, 116 Stat. 729 (June 28, 2002), the 
FCC is engaged in a  two-year tracking process regarding the 
size of entities involved in forfeitures.  If you qualify as 
a small  entity and  if you  wish to be  treated as  a small 
entity for tracking purposes, please so certify to us within 
thirty (30) days of this NAL, either in your response to the 
NAL  or in  a  separate filing  to be  sent  to the  Federal 
Communications Commission,  Enforcement Bureau,  Technical & 
Public Safety Division.   Your certification should indicate 
whether   you,  including   your  parent   entity  and   its 
subsidiaries, meet one  of the definitions set  forth in the 
list provided by the FCC's Office of Communications Business 
Opportunities (``OCBO'')  set forth in Attachment  A of this 
Notice of Apparent Liability.  This information will be used 
for  tracking purposes  only.  Your  response or  failure to 
respond to this question will  have no effect on your rights 
and responsibilities pursuant to  Section 503(b) of the Act.  
If  you  have questions  regarding  any  of the  information 
contained in Attachment A, please contact OCBO at (202) 418-
0990.

     18. IT IS FURTHER ORDERED THAT a copy of this NOTICE OF 
APPARENT LIABILITY shall be sent  by Certified Mail - Return 
Receipt Requested, to HBC License Corporation, 3102 Oak Lawn 
Ave., Suite 215, Dallas, Texas 75219.


                              FEDERAL COMMUNICATIONS 
COMMISSION



                              William R. Zears Jr.
                              District Director, San Diego 
Office



Enc: FCC List of Small Entities
Attachment A

                                                October 2002


                 FCC List of Small Entities

   As described below, a ``small entity'' may be a small 
                       organization,
  a small governmental jurisdiction, or a small business.

(1)  Small Organization 
Any not-for-profit enterprise that is independently owned 
and operated and 
is not dominant in its field.

  
(2)  Small Governmental Jurisdiction
Governments of cities, counties, towns, townships, villages, 
school districts, or 
special districts, with a population of less than fifty 
thousand.


(3)  Small Business
Any business concern that is independently owned and 
operated and 
is not dominant in its field, and meets the pertinent size 
criterion described below.
  

       Industry Type          Description of Small Business 
                                     Size Standards
                 Cable Services or Systems
                             Special Size Standard - 
Cable Systems                 Small Cable Company has 400,000 
                             Subscribers Nationwide or Fewer
Cable and Other Program 
Distribution                      $12.5 Million in Annual 
                                    Receipts or Less

Open Video Systems 
        Common Carrier Services and Related Entities
Wireline Carriers and 
Service providers 
                                1,500 Employees or Fewer
Local Exchange Carriers, 
Competitive Access 
Providers, Interexchange 
Carriers, Operator Service 
Providers, Payphone 
Providers, and Resellers

Note:  With the exception of Cable Systems, all size 
standards are expressed in either millions of dollars or 
number of employees and are generally the average annual 
receipts or the average employment of a firm.  Directions 
for calculating average annual receipts and average 
employment of a firm can be found in 
13 C.F.R. 121.104 and 13 C.F.R.  121.106, respectively.

                   International Services
International Broadcast 
Stations
                                 $12.5 Million in Annual 
                                    Receipts or Less






International Public Fixed 
Radio (Public and Control 
Stations)
Fixed Satellite 
Transmit/Receive Earth 
Stations
Fixed Satellite Very Small 
Aperture Terminal Systems
Mobile Satellite Earth 
Stations
Radio Determination 
Satellite Earth Stations
Geostationary Space Stations
Non-Geostationary Space 
Stations
Direct Broadcast Satellites
Home Satellite Dish Service
                    Mass Media Services
Television Services

                             $12 Million in Annual Receipts 
                                         or Less
Low Power Television 
Services and Television 
Translator Stations
TV Auxiliary, Special 
Broadcast and Other Program 
Distribution Services
Radio Services
                              $6 Million in Annual Receipts 
                                         or Less
Radio Auxiliary, Special 
Broadcast and Other Program 
Distribution Services
Multipoint Distribution       Auction Special Size Standard -
Service                       Small Business is less than 
                             $40M in annual gross revenues 
                             for three preceding years
          Wireless and Commercial Mobile Services
Cellular Licensees
                                1,500 Employees or Fewer
220 MHz Radio Service - 
Phase I Licensees
220 MHz Radio Service -       Auction special size standard -
Phase II Licensees            Small Business is average gross 
                             revenues of $15M or less for 
                             the preceding three years 
                             (includes affiliates and 
                             controlling principals)
                             Very Small Business is average 
                             gross revenues of $3M or less 
                             for the preceding three years 
                             (includes affiliates and 
                             controlling principals)
700 MHZ Guard Band Licensees


Private and Common Carrier 
Paging
Broadband Personal 
Communications Services          1,500 Employees or Fewer
(Blocks A, B, D, and E)
Broadband Personal            Auction special size standard -
Communications Services       Small Business is $40M or less 
(Block C)                     in annual gross revenues for 
                             three previous calendar years
                             Very Small Business is average 
                             gross revenues of $15M or less 
                             for the preceding three 
                             calendar years (includes 
                             affiliates and persons or 
                             entities that hold interest in 
                             such entity and their 
                             affiliates)
Broadband Personal 
Communications Services 
(Block F)
Narrowband Personal 
Communications Services


Rural Radiotelephone Service     1,500 Employees or Fewer
Air-Ground Radiotelephone 
Service
800 MHz Specialized Mobile    Auction special size standard -
Radio                         Small Business is $15M or less 
                             average annual gross revenues 
                             for three preceding calendar 
                             years
900 MHz Specialized Mobile 
Radio
Private Land Mobile Radio        1,500 Employees or Fewer
Amateur Radio Service                       N/A
Aviation and Marine Radio 
Service                          1,500 Employees or Fewer
Fixed Microwave Services
                             Small Business is 1,500 
Public Safety Radio Services  employees or less
                             Small Government Entities has 
                             population of less than 50,000 
                             persons
Wireless Telephony and 
Paging and Messaging             1,500 Employees or Fewer
Personal Radio Services                     N/A
Offshore Radiotelephone          1,500 Employees or Fewer
Service
Wireless Communications       Small Business is $40M or less 
Services                      average annual gross revenues 
                             for three preceding years
                             Very Small Business is average 
                             gross revenues of $15M or less 
                             for the preceding three years 

39 GHz Service
                             Auction special size standard 
                             (1996) -
Multipoint Distribution       Small Business is $40M or less 
Service                       average annual gross revenues 
                             for three preceding calendar 
                             years
                             Prior to Auction -
                             Small Business has annual 
                             revenue of $12.5M or less
Multichannel Multipoint 
Distribution Service              $12.5 Million in Annual 
                                    Receipts or Less
Instructional Television 
Fixed Service
                             Auction special size standard 
                             (1998) -
Local Multipoint              Small Business is $40M or less 
Distribution Service          average annual gross revenues 
                             for three preceding years
                             Very Small Business is average 
                             gross revenues of $15M or less 
                             for the preceding three years 
                             First Auction special size 
                             standard (1994) -
                             Small Business is an entity 
                             that, together with its 
                             affiliates, has no more than a 
218-219 MHZ Service           $6M net worth and, after 
                             federal income taxes (excluding 
                             carryover losses) has no more 
                             than $2M in annual profits each 
                             year for the previous two years
                             New Standard - 
                             Small Business is average gross 
                             revenues of $15M or less for 
                             the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
                             Very Small Business is average 
                             gross revenues of $3M or less 
                             for the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
Satellite Master Antenna 
Television Systems                $12.5 Million in Annual 
                                    Receipts or Less
24 GHz - Incumbent Licensees     1,500 Employees or Fewer
24 GHz - Future Licensees     Small Business is average gross 
                             revenues of $15M or less for 
                             the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
                             Very Small Business is average 
                             gross revenues of $3M or less 
                             for the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
                       Miscellaneous
On-Line Information Services  $18 Million in Annual Receipts 
                                         or Less
Radio and Television 
Broadcasting and Wireless 
Communications Equipment          750 Employees or Fewer
Manufacturers
Audio and Video Equipment 
Manufacturers
Telephone Apparatus 
Manufacturers (Except            1,000 Employees or Fewer
Cellular)
Medical Implant Device            500 Employees or Fewer
Manufacturers
Hospitals                     $29 Million in Annual Receipts 
                                         or Less
Nursing Homes                     $11.5 Million in Annual 
                                    Receipts or Less
Hotels and Motels              $6 Million in Annual Receipts 
                                         or Less
Tower Owners                  (See Lessee's Type of Business)

_________________________

1 47 C.F.R.  11.35(a), 11.35(c) and 11.61.

2 47 U.S.C.  503(b).

3 47 C.F.R.  11.35, 11.61(a)(1) & 73.1870(c)(3).

4 47 U.S.C.  503(b).

5 Section 312(f)(1) of the Act, 47 U.S.C.  312(f)(1), which 
applies to violations for which forfeitures are assessed 
under Section 503(b) of the Act, provides that ``[t]he term 
`willful', when used with reference to the commission or 
omission of any act, means the conscious and deliberate 
commission or omission of such act, irrespective of any 
intent to violate any provision of this Act or any rule or 
regulation of the Commission authorized by this Act....'' 
See Southern California Broadcasting Co., 6 FCC Rcd 4387 
(1991).  Section 312(f)(1), which also applies to Section 
503(b), provides: ``[t]he term ``repeated'', when used with 
reference to the commission or omission of any act, means 
the commission or omission of such act more than once or, if 
such commission or omission is continuous, for more than one 
day.'' 

6 47 C.F.R.  11.11 & 11.41.

7 47 C.F.R.  11.1 & 11.21.

8 47 C.F.R.  11.18.   State EAS plans contain guidelines 
that must be followed by broadcast and cable personnel, 
emergency officials and National Weather Service personnel 
to activate the EAS for state and local emergency alerts.  
The state plans include the EAS header codes and messages to 
be transmitted by the primary state, local and relay EAS 
sources.

9 47 C.F.R.  11.35.

10 47 C.F.R.  11.61(a)(1)(v).  At the time of the 
violations, the Rules required monthly EAS tests to be 
retransmitted within 15 minutes of receipt of the required 
test message.  Effective May 16, 2002, the Rules were 
modified to require monthly EAS tests to be retransmitted 
within 60 minutes of receipt of the required monthly test 
message. Amendment of Part 11 of the Commission's Rules 
Regarding the Emergency Alert System, EB Docket No. 01-66, 
Report and Order, FCC 02-64 (Feb. 26, 2002); 67 Fed Reg 
18502 (April 16, 2002).

11 47 C.F.R.  73.1820(a).

12 47 C.F.R. Part 11.

13 12 FCC Rcd 17087 (1997), recon denied, 15 FCC Rcd 303 
(1999).

14 47 C.F.R.  1.80.

15 47 U.S.C.  503(b).

16 47 C.F.R.  0.111, 0.311, 1.80, 11.35(a), 11.35(c) and 
11.61.

17 See 47 C.F.R.  1.1914.