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


In the Matter of                   )      File Number EB-03-KC-131
                                                             )
The Moody Bible Institute of       )    NAL/Acct. No. 200432560002
Chicago                            )
Licensee of FM Broadcast Station   )              FRN 0006-7913-54
KMDY, Keokuk, Iowa                 )
Chicago, Illinois

         NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                         Released: 2/13/2004

By the Enforcement Bureau, Kansas City Office:

                         I.  INTRODUCTION

     1.   In   this  Notice   of   Apparent  Liability   for 
Forfeiture (``NAL''),  we find The Moody  Bible Institute of 
Chicago (``Moody''), licensee of radio station KMDY, Keokuk, 
Iowa, apparently  liable for a  forfeiture in the  amount of 
ten thousand  dollars ($10,000.00) for willful  and repeated 
violation of  Section 73.1125(a)  of the  Commission's Rules 
(``Rules'') and  willful violation of Section  73.3527(c) of 
the Rules.1  Specifically, we find The Moody Bible Institute 
of Chicago  apparently liable  for failing to  maintain full 
time management presence  at its main studio  and failing to 
make available a complete public inspection file.

                         II.  BACKGROUND

     2.   On  June   23,  2003,  an  agent   from  the  FCC, 
Enforcement  Bureau,  Kansas   City  Office  (``Kansas  City 
Office''), inspected  the main studio of  FM broadcast radio 
station  KMDY, Keokuk,  Iowa.   The  only station  personnel 
present and on duty at the time the inspection began was Ms. 
Shirley  Brobston,  secretary.    The  station  manager,  Al 
Miller, was  not on duty  at the time the  inspection began.  
Ms.  Brobston telephoned  Mr.  Miller at  home.  Mr.  Miller 
arrived at the station after  the inspection had begun.  Mr. 
Miller  stated he  had been  off-duty at  home.  During  the 
inspection, station  personnel could  not produce  a station 
license,  current station  ownership report  or copy  of the 
public and broadcasting procedural manual.  The most current 
ownership report  in the  public file  was dated  August 24, 
1998.  In addition, the issues-programs listing, dated April 
1, 2003, did not contain  all required elements, namely, the 
document did not contain the  duration of the programming, a 
description of what was aired, or the time it was aired.  

     3.   On July 15, 2003, the  Kansas City Office issued a 
Letter of  Inquiry (``LOI'')  to Moody to  obtain additional 
information  pertaining to  the  EAS,  chief operator,  main 
studio  and  public  file  violations  detected  during  the 
inspection.

     4.   On August 29, 2003, Moody submitted a reply to the 
LOI.   The reply  stated the  studio is  open to  the public 
Monday through  Friday from 9am  to 5pm.  The  letter stated 
that at the time of  inspection, the staff at KMDY consisted 
of  Al  Miller,  full  time station  manager,  a  full  time 
secretary (who is also the  full time church secretary), Tim 
Pfeifer,    contract   engineer,    and   six    part   time 
clerical/secretary volunteers.  The reply  stated that a new 
full time station manager and  chief engineer had been hired 
since the  time of inspection.  Concerning  the public file, 
the reply  stated the  public file was  located in  the main 
studio  and that  it  was complete.   However, the  response 
later stated that the station license had not been forwarded 
to KMDY  from its  Chicago headquarters and  was not  in the 
file at the  time of inspection.  The reply  included a copy 
of the latest ownership report,  dated January 30, 2003, and 
a copy  of the second quarter  issues-programs listing.  The 
issues-programs  listing  did  not   include  the  time  the 
programs aired.  The reply made no mention of the Public and 
Broadcasting procedural manual that was not available at the 
time of inspection.

     5.   On  September  4,  2003, the  Kansas  City  Office 
issued  a second  LOI  to Moody  to  clarify certain  issues 
pertaining  to  the EAS,  chief  operator,  main studio  and 
public  file  violations  and subsequent  responses  by  the 
licensee.

     6.   On October 3, 2003,  Moody submitted a response to 
the second  LOI.  Concerning  the main studio  staffing, the 
response stated that station  manager Al Miller averaged 10-
15 hours per week between the transmitter site and studio on 
behalf  of KMDY,  and about  10-15 hours  each week  on call 
outside the studio, 7 days a week.  The reply further stated 
that the station secretary  Shirley Brobston worked 30 hours 
per  week at  the studio.   The reply  stated that  both Mr. 
Miller and Ms. Brobston  were unpaid volunteers.  Concerning 
the  chief operator,  the  reply indicated  Tim Pfeifer  had 
worked an average of 2-3 hours  per week during the 12 weeks 
prior to the inspection.  However, in another section of the 
letter, the reply stated that Mr. Pfeifer was chief operator 
until January 2003  at which time Al Miller  took over those 
duties.   Concerning the  public file,  the response  stated 
that  Moody  could not  explain  why  the current  ownership 
report was  not located  in the  public file  folder labeled 
ownership  reports.  The  reply  stated the  issues-programs 
listing inadvertently omitted the information on the time of 
day of the broadcasts listed.

     7.   In addition  to the  written response  provided by 
Moody  to the  second LOI,  the licensee  provided requested 
documentation pertaining  to training and  instruction given 
to  Al  Miller  concerning  his  duties.   This  information 
included an email  dated January 12, 2001 from  Mr. David P. 
Woodworth, Moody, and a set of guidelines dated January 2001 
from Moody attorney Jeff  Southmayd.  These documents stated 
the office  should be staffed  for a standard 40  hour week, 
Monday through Friday, and that such staffing should include 
``at  least one  management-type person  and one  staff-type 
person  on   duty  during   regular  office   hours.''   The 
documentation  further   recommended  ``a  minimum   of  two 
management type people'' and that  they should try to locate 
two other management type volunteers.  The guidelines stated 
that the  station authorization should be  readily available 
at the  primary transmitter control  point.  Item 11  of the 
guidelines, under the title  ``Public File'' it states:  The 
Public File .... should  be organized... and should contain:  
... c) Ownership Report: ...  f) The Public and Broadcasting 
-  A  Procedural  Manual....  G)  Quarterly  Issues/programs 
Lists: Every three months beginning January 10 each year for 
the preceding calendar quarter, list the programs along with 
the time,  date and  duration of  each program  on community 
issues given significant treatment.''

                      III.  DISCUSSION

     8.   Section 73.1125(a)  of the Rules states  that each 
AM, FM, or  TV broadcast station shall maintain  a studio at 
one  of the  following locations:  (1) within  the station's 
community  of  license;  (2)  at  any  location  within  the 
principal community contour  of any AM, FM,  or TV broadcast 
station licensed  to the station's community  of license; or 
(3) within twenty-five miles  from the reference coordinates 
of the  center of its  community of license as  described in 
73.208(a)(1).   In  adopting  the main  studio  rules,  the 
Commission stated  that the station's main  studio must have 
the  capability to  serve  the needs  and  interests of  the 
residents  of  the  station's  community  of  license.2   To 
fulfill this  function, a station must,  among other things, 
maintain  a meaningful  presence at  its main  studio.3  The 
Commission has  defined a minimally  acceptable ``meaningful 
presence''  as  full-time  managerial  and  full-time  staff 
personnel.4   The  licensee need  not  have  the same  staff 
person  and manager  at the  studio,  as long  as there  was 
management and  staff presence there during  normal business 
hours.5  Although management personnel need not be ``chained 
to  their desks''  during normal  business hours,  they must 
``report  at the  main  studio  on a  daily  basis, spend  a 
substantial amount of time there and ... use the studio as a 
home base.''6   Station KMDY  broadcasts 24  hours a  day, 7 
days a week with audio provided via satellite from the Moody 
Bible Network.   On June  23, 2003, and  the 12  week period 
prior to  that date,  the licensee maintained  one volunteer 
manager  who worked  an  average of  10-15   hours per  week 
between  the studio  and  transmitter site  and  on call  an 
additional 10-15  hours on average,  7 days a week.   At the 
time the inspection  began, the manager was  off-duty at his 
home.   The  station's secretary,  who  also  serves as  the 
church secretary,  was the  only station  personnel present.  
In  addition  to the  manager  and  secretary, the  licensee 
stated Tim  Pfeifer was  the KMDY  chief operator.   While a 
chief  operator  may  be  considered  management  personnel, 
statements by the licensee  and station manager indicate Mr. 
Pfeifer had  not worked for  the station for  several months 
prior  to the  inspection. While  the licensee  did maintain 
sufficient  administrative staff  to fulfill  the full  time 
obligation,  Moody did  not provide  a full  time management 
presence during the hours the studio was open to the public. 
According  to  documentation  provided in  response  to  the 
second LOI, Moody was aware of the requirement to maintain a 
full  time  managerial  presence.  Moody  communicated  this 
guidance to KMDY management in January 2001.  Therefore, the 
violation was willful.  In addition, this violation occurred 
for at  least 12 weeks  prior to the  inspection; therefore, 
the violation is repeated/continuous.
     9.   Section  73.3527(a) of  the  Rules7 requires  non-
commercial  FM broadcast  stations  to  maintain for  public 
inspection  a  file  containing the  material  specified  in 
paragraphs  (e)(1)  through  (e)(11) of  the  same  section.  
Section  73.3527(c) of  the Rules  requires the  licensee to 
make  the public  file available  for public  inspection any 
time  during  regular business  hours.   On  June 23,  2003, 
during  regular   business  hours,  Moody  failed   to  make 
available  a  complete  file  for  public  inspection.   The 
station's  manager  could  not  find  the  station  license, 
current  ownership  report,   the  Public  and  Broadcasting 
Procedural  Manual, or  a complete  issues-programs listing.  
The licensee  admitted the license  was not in the  file and 
could not explain  why the current ownership  report was not 
in the  file folder  labeled for ownership  reports.  Though 
Moody states some  documents may have been  physically in or 
near the file at the time of inspection, the station manager 
could not find the missing documents.

     10.  Based  on the  evidence before  us, we  find Moody 
willfully8  and repeatedly9  violated Section  73.1125(a) of 
the  Rules by  failing to  maintain a  full time  managerial 
presence at  station KMDY and  we find that  Moody willfully 
violated Section 73.3527(c) by failing to make available for 
public inspection during regular business hours the complete 
public inspection file.

     11.  Pursuant to Section 1.80(b)(4) of the Rules,10 the 
base forfeiture amount for violation of main studio rules is 
$7,000.00 and  the base  forfeiture amount for  violation of 
the  public  file rules  is  $10,000.00.   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 Communications Act of  1934, as amended (``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.11  In 
reviewing the  history of  this licensee,  we find  at least 
five  Notices of  Violation issued  to Moody  owned stations 
since  1999.   We  also  note  the  failure  to  maintain  a 
management  presence was  a continuous  violation.  However, 
the licensee did maintain some part time management presence 
and did  have a  public file  with some  required documents.  
Considering  the  entire  record and  applying  the  factors 
listed above, this case warrants a $10,000 forfeiture.

                      IV.  ORDERING CLAUSES

     12.  Accordingly,  IT  IS  ORDERED  THAT,  pursuant  to 
Section 503(b) of  the Act,12 and Sections  0.111, 0.311 and 
1.80 of the Rules,13 The Moody Bible Institute of Chicago is 
hereby NOTIFIED of this  APPARENT LIABILITY FOR A FORFEITURE 
in  the  amount of  ten  thousand  dollars ($10,000.00)  for 
willful and repeated violation  of Section 73.1125(a) of the 
Rules by failing to maintain a full time management presence 
at  its main  studio and  for willful  violation of  Section 
73.3527(c)  for   failing  to  make  available   for  public 
inspection during regular business hours the complete public 
inspection file.
     13.  IT IS  FURTHER ORDERED  THAT, pursuant  to Section 
1.80 of the Rules, within thirty days of the release date of 
this NAL, The Moody Bible Institute of Chicago SHALL PAY the 
full  amount of  the  proposed forfeiture  or  SHALL FILE  a 
written statement  seeking reduction or cancellation  of the 
proposed forfeiture.

     14.  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. 20554.14

     15.  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-
Spectrum Enforcement Division and MUST INCLUDE THE NAL/Acct. 
No. referenced above.  

     16.  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.

     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  Spectrum 
Enforcement  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.

     18.   IT  IS FURTHER  ORDERED THAT a  copy of  this NAL 
shall  be sent  by regular  mail and  Certified Mail  Return 
Receipt Requested  to The Moody Bible  Institute of Chicago, 
820 N. Lasalle Blvd., Chicago, IL 60610 with a copy to their 
attorney,  Jeffrey  D.  Southmayd, 1220  Nineteenth  Street, 
N.W., Suite 400, Washington, D.C.  20036.   


                         FEDERAL COMMUNICATIONS COMMISSION



                         Robert C. McKinney
                         Kansas  City   Office,  Enforcement 
Bureau


Attachment
_________________________

1 47 C.F.R.  73.1125(a) and 73.3527(c).

2 Main Studio and Program Origination Rules, 2 FCC Rcd 3215, 
3217-18 (1987), clarified, 3 FCC Rcd 5024, 5026 (1988).

3 Id.

4 Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615, 
3616 (1991), clarified, 7 FCC Rcd 6800 (1992).

5 Id., 6 FCC Rcd at 3616 n.2; 7 FCC Rcd at 6800 n.4.

6 Id., 7 FCC Rcd at 6802.

7 47 C.F.R.  73.3527(a).

8 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).

9 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).

10 47 C.F.R.  1.80(b)(4).

11 47 U.S.C.  503(b)(2)(D).

12 47 U.S.C.  503(b).

13 47 C.F.R.  0.111, 0.311, 1.80.

14 See 47 C.F.R.  1.1914.