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Federal Communications Commission
Washington, D.C. 20554
In the Matter of )
) File No. EB-01-DT-415
KYS Inc. )
Sandusky Bay Marine Towing ) FRN: 0006-0042-20
Sandusky, Ohio ) NAL/Acct. No.
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
By the District Director, Detroit Office, Enforcement Bureau:
1. In this Notice of Apparent Liability for Forfeiture
("NAL"), we find that KYS Inc., Sandusky Bay Marine Towing (``KYS
Inc.'') has apparently violated the Great Lakes Agreement
(``GLA'')1 and Sections 80.953(a) and 80.953(b) of the
Commission's Rules2 (the ``Rules'') as a result of their vessel,
the ``Recovery'', navigating the Great Lakes without having
obtained the annual GLA inspection and certification of their
marine VHF radiotelephone equipment. We conclude that KYS Inc.
is apparently liable for a forfeiture in the amount of two
thousand two hundred dollars ($2,200).
2. The GLA requires, among other things, that all vessels
65 feet or over in length (20 meters), most towing vessels, and
vessels carrying more than six passengers for hire be equipped
with a marine VHF radiotelephone installation when navigated on
the Great Lakes. The GLA is intended to promote safety of life
and property on the Great Lakes by means of radio and requires
the radiotelephone installation be inspected and certified at
least once every thirteen months. The inspection of GLA subject
vessels may be performed by the holder of an FCC General
Radiotelephone Operator License, GMDSS Radio Maintainer's
License, Second Class Radiotelegraph Operator's Certificate or
First Class Radiotelegraph Operator's Certificate.
3. On June 29, 2001, an FCC agent from the Detroit Office
conducted random inspections of vessels subject to the GLA in
Sandusky, Ohio to determine whether GLA inspections were being
conducted and certified. The agent inspected the ``Recovery''
and determined that the vessel did not have a current GLA safety
inspection and certification. The agent also determined that
that the vessel had navigated the waters of the Great Lakes as a
towing vessel. As a follow up to this, copies of ship station
logs were requested and received on July 2, 2001. A subsequent
review of these logs indicated that the ``Recovery'' had
navigated on at least June 10, 11, 19, and 24, 2001, without a
valid GLA certification.
4. On July 26, 2001, the Detroit District Director issued
an Official Notice of Violation (``NOV'') to KYS Inc., Sandusky
Bay Marine Towing, 603 42nd Street, Sandusky, Ohio 44870, for
failure to have their vessel ``Recovery'' inspected under the
provisions of the GLA. The Detroit Office received a response
from KYS Inc. on August 20, 2001, in which they admitted to the
violations. The correspondence also indicated that future
correspondence be sent to 39 Cedar Point Road, Sandusky, Ohio
5. In order to promote the safety of life and property on
the Great Lakes, the Great Lakes Agreement and Sections 80.953(a)
and 80.953(b) of the Rules require that vessels subject to the
GLA have the radiotelephone installation inspected and certified
6. Based on the evidence before us, we find that KYS Inc.
has violated the Great Lakes Agreement and Sections 80.953(a) and
80.953(b) of the Commission's Rules as a result of their vessel
the ``Recovery'' having navigated the Great Lakes on June 10, 11,
19 and 24, 2001 without having had their radiotelephone
installation inspected and certified as required by the Great
Lakes Agreement. The Commission's Forfeiture Policy Statement
and Amendment of Section 1.80 of the Rules to Incorporate the
Forfeiture Guidelines, 12 FCC Rcd 17087, 17113 (1997), recon.
denied, 15 FCC Rcd 303(1999) (``Forfeiture Policy Statement'')3,
sets the statutory maximum amount forfeiture at five hundred
fifty dollars ($550) per day for violating the Great Lakes
Agreement. In assessing the monetary forfeiture amount, we must
take into account the downward adjustment factors set forth in
Section 1.80 of the Rules for non-Section 503 forfeitures, which
include minor violations, good faith or voluntary disclosure,
history of overall compliance, and inability to pay. While this
is not a minor violation, the record reveals that KYS Inc. has an
overall history of compliance and showed good faith surrounding
the violations by the voluntary disclosure of information;
however, the violations are egregious. Applying the Policy
Statement and the adjustment criteria to the instant case, we
believe that a two thousand two hundred dollar ($2,200) monetary
forfeiture is warranted.
IV. Ordering Clauses
7. Accordingly, IT IS ORDERED THAT, pursuant to Section
506(a) of the Act4 and Sections 0.111, 0.311 and 1.80 of the
Rules5, KYS Inc. Sandusky Bay Marine Towing is hereby NOTIFIED of
this APPARENT LIABILITY FOR A FORFEITURE in the amount of two
thousand two hundred dollars ($2,200) for willfully violating the
Great Lakes Agreement and Sections 80.953(a) and 80.953(b) of the
8. 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, KYS Inc., Sandusky Bay Marine
Towing SHALL PAY the full amount of the proposed forfeiture or
SHALL FILE a written statement seeking reduction or cancellation
of the proposed forfeiture.
9. 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 should note the
NAL/Acct. No. 200232360003.
10. The response, if any, must be mailed to Federal
Communications Commission, Enforcement Bureau, Technical and
Public Safety Division, 445 12th Street, S.W., Washington, D.C.
20554 and MUST INCLUDE THE NAL/Acct. No. 200232360003.
11. 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
12. 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, S.W., Washington, D.C. 20554.6
13. IT IS FURTHER ORDERED THAT a copy of this NOTICE OF
APPARENT LIABILITY shall be sent by Certified Mail, Return
Receipt Requested, to KYS Inc., Sandusky Bay Marine Towing, 603
42nd Street, Sandusky, Ohio 44870 and Certified Mail, Return
Receipt Requested, to Sandusky Bay Marine Towing, 39 Cedar Point
Road, Sandusky, Ohio 44870.
James A. Bridgewater
1 Agreement Between Canada and the United States for the
Promotion of Safety on the Great Lakes by Means of Radio T.I.A.S.
7837, amended T.I.A.S. 9352 (Great Lakes Agreement).
2 47 C.F.R. §§ 80.953(a), and 80.953(b).
347 C.F.R. § 1.80.
4 47 U.S.C. § 507(a).
5 47 C.F.R. §§ 0.111, 0.311, and 1.80.
6 See 47 C.F.R. § 1.1914.