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

In the Matter of                  )
ESI Companies Inc.                )     File Number EB-02-NF-109
1877 Vanderhorn Drive             )   NAL/Acct. No. 200332640003
Memphis, Tennessee  38134         )                  FRN 4245429

                                          Released: March 4, 2003
By the Enforcement Bureau, Norfolk Office:

                         I. INTRODUCTION

     1.In  this  Notice  of  Apparent  Liability  for  Forfeiture 
(?NAL?), we find ESI Companies Inc. (?ESI?), apparently liable for  a 
forfeiture in the  amount of ten  thousand dollars ($10,000)  for 
willful  and   repeated  violation   of   Section  301   of   the 
Communications Act of 1934, as amended (?Act?).1  Specifically,  we 
find ESI apparently liable for  the operation of a radio  station 
on   the   frequency   of   156.8050   MHz   without   Commission 

                         II. BACKGROUND
     2.On August 14,  2002, the FCC, Enforcement Bureau,  Norfolk 
Office (?Norfolk Office?) received a complaint about  transmissions 
that were hampering the U.S.  Coast Guard Auxiliary's ability  to 
monitor for  distress calls  from boaters  on the  marine  safety 
channel at 156.8000 MHz.  The complainant said that transmissions 
emanated from an area south  of Taylorsville, North Carolina,  on 
the frequency of  156.8050 MHz. This  frequency is in  a band  of 
frequencies  allocated   exclusively  for   maritime  use.    The 
complainant also  said that  the interfering  transmissions  were 
construction related and that the FCC did not license any station 
in the area for use of  156.8050 MHz.  The complainant also  sent 
the Norfolk Office  a detailed  log of  transmissions.  That  log 
mentioned the name ?Chris  Thompson? during transmissions noted  on 
July 24, 2002.  FCC license databases had no record of a  license 
issued for  the  use of  156.8050  MHz near  Taylorsville,  North 

     3.On  August 22,  2002, an  agent  from the  Norfolk  Office 
monitored the frequency 156.8050  MHz in the Taylorsville,  North 
Carolina  area.   The  agent  observed  communications  on   that 
frequency related to construction activities, and also heard  the 
name ?Chris? among others.   Using direction finding equipment  and 
investigative techniques, he determined that these  transmissions 
emanated from a construction  site located off  of Old Land  Fill 
Road (SR 1608) south of Taylorsville, North Carolina.  The  agent 
conducted  an  inspection  and  interviewed  ESI's   construction 
superintendant. The superintendant stated that ESI employees used 
a base station  radio and  six hand-held  radios as  part of  its 
construction business at the site; and that Chris Thompson was an 
ESI employee.  The agent made frequency measurements of the  base 
station and noted that it was  tuned to 156.8050 MHz.  ESI  holds 
licenses for business radio stations, but it is not authorized to 
transmit on 156.8050 MHz or any marine frequency.

     4.On October  21, 2002,  in response to  questions from  the 
Norfolk agent,  ESI wrote  that it  used the  wrong frequency  in 
Taylorsville, North  Carolina  and at  possible  other  locations 
across the country, but that it had corrected the violations. 

                         III. DISCUSSION

     5.Section  301 of  the  Act  sets forth  generally  that  no 
person shall use or operate any apparatus for the transmission of 
energy of communications  or signals by  radio within the  United 
States except under  and in accordance  with the Act  and with  a 
license.  On July 24, 2002, and on August 22, 2002, ESI  operated 
radio-transmitting equipment  on the  frequency of  156.8050  MHz 
without benefit of the required Commission authorization. 

     6.Based on  the evidence before us,  we find ESI  willfully2 
and repeatedly3  violated Section  301 of  the Act  by  operating 
radio transmission apparatus without a license. 

     7.Pursuant to  Section 1.80(b)(4)  of the  Rules,4 the  base 
forfeiture amount for  operating a station  without a license  is 
$10,000.  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, and with  respect to  the 
violator,  the  degree  of  culpability,  any  history  of  prior 
offenses, ability to pay, and  other such matters as justice  may 
require.5  In doing so,  we note that  ESI previously operated  a 
station without a license  on the frequency  of 156.800 MHz  near 
the East Mesa Detention  Facility, San Diego, California.   ESI's 
unlicensed operation occurred on July 2, 1999.  On July 14, 1999, 
the FCC San Diego  Office issued ESI  a warning about  unlicensed 
station operation.  Considering  the entire  record and  applying 
the  factors  listed   above,  this  case   warrants  a   $10,000 

                      IV. ORDERING CLAUSES

     8.Accordingly,  IT  IS ORDERED  THAT,  pursuant  to  Section 
503(b) of the  Act,6 and Sections  0.111, 0.311 and  1.80 of  the 
Rules,7 ESI is hereby NOTIFIED  of this APPARENT LIABILITY FOR  A 
FORFEITURE in the  amount of ten  thousand dollars ($10,000)  for 
willful and  repeated violation  of  Section 301  of the  Act  by 
operating radio transmission apparatus without a license. 

     9.IT IS  FURTHER ORDERED THAT, pursuant  to Section 1.80  of 
the Rules, within thirty  days of the release  date of this  NAL, 
ESI SHALL PAY the full amount of the proposed forfeiture or SHALL 
FILE a written statement seeking reduction or cancellation of the 
proposed forfeiture.

     10.  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. and FRN referenced above.  Requests for payment  of 
the full amount of this NAL  under an installment plan should  be 
sent to:  Chief, Revenue  and Receivables  Operations Group,  445 
12th Street, S.W., Washington, D.C. 20554.8

     11.  The  response,  if  any,  must  be  mailed  to  Federal 
Communications Commission,  Office  of the  Secretary,  445  12th 
Street   SW,    Washington    DC   20554,    Attn:    Enforcement 
Bureau-Technical & Public  Safety Division and  MUST INCLUDE  THE 
NAL/Acct. No. referenced above.  

     12.  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 

     13.  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  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  Communications  Act.   If  you  have   questions 
regarding any  of  the  information contained  in  Attachment  A, 
please contact OCBO at (202) 418-0990.

     14.   IT IS FURTHER ORDERED THAT a copy of this NAL shall be 
sent by regular mail and Certified Mail Return Receipt  Requested 
to ESI Companies Inc., 1877 Vanderhorn Drive, Memphis, TN, 38134.   


                         Joseph P. Husnay
                         Resident Agent, Norfolk Office, 
Enforcement Bureau

AttachmentESI Companies Inc 
1877 Vanderhorn Drive 
Memphis TN  38134

ESI Companies Inc
1877 Vanderhorn Drive 
Memphis TN  38134


1  47 U.S.C.  301.
2 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 . . . .?  See Southern California Broadcasting Co., 6 FCC 
Rcd 4387-88 (1991).

3 The 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.?  47 U.S.C.  312(f)(2).

4 47 C.F.R.  1.80(b)(4).

5 47 U.S.C.  503(b)(2)(D).

6 47 U.S.C.  503(b).

7 47 C.F.R.  0.111, 0.311, 1.80.

8 See 47 C.F.R.  1.1914.