Click here for Adobe Acrobat version
Click here for Microsoft Word version
******************************************************** 
                      NOTICE
********************************************************

This document was converted from Microsoft Word.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Microsoft Word or Adobe Acrobat version.

*****************************************************************




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


In the Matter of                )
                                )
Chester P. Coleman              )      File Number: EB-03-AN-091
c/o American Radio Brokers,     )                   EB-03-AN-092
Inc.
San Francisco, CA               )
                                )     NAL/Acct. No: 200532780003
Licensee of Broadcast           )                FRN: 0005037585
Stations
   KAXX, AM, Facility ID        )
53491, 1020 kHz
   Community of License -       )
Eagle River, Alaska
                                )
   KADX, FM, Facility ID        )
10770, 94.7 MHz
   Community of License -       )
Houston, Alaska
                                )


           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                      Released: December 10, 2004

By the Resident Agent, Anchorage Resident Agent Office, Western 
Region, Enforcement Bureau:

I.   INTRODUCTION

     1.   In this Notice of Apparent Liability for Forfeiture 
(``NAL''), we find Chester P. Coleman, c/o American Radio 
Brokers, Inc. (``Coleman''), San Francisco, California, licensee 
of stations KAXX (AM),1 Eagle River, Alaska, and KADX(FM),2 
Houston, Alaska, apparently willfully and repeatedly violated 
Sections 73.1125(a) and (e), 73.1740(a)(1) and 73.1745(b) of the 
Commission's Rules (``Rules'').3 Specifically, we find Coleman 
apparently liable for failing to maintain main studios, local or 
toll-free telephone numbers, and minimum operating schedules, for 
KAXX and KADX, and for departing, without authorization, from the 
terms of the stations' authorizations.  We conclude, pursuant to 
Section 503(b) of the Communications Act of 1934, as amended 
(``the Act''),4 that Coleman is apparently liable for a 
forfeiture in the amount of twenty-four thousand dollars 
($24,000.00).
II.  BACKGROUND
     2.   On October 15, 2002, Anchorage agents attempted to 
contact staff at the main studio location for stations KAXX and 
KADX, located at 2509 Eide Street, Anchorage.  The building's 
directory indicated that the radio stations offices were located 
in Suites 5 and 6.  The agents found the studio locked and 
unoccupied but heard music from within the office.  The agents 
attempted to contact the stations, but the main studio telephone 
number listed for the stations was reported as out of service by 
the local telephone system.  Later, on October 16, 2002, an 
Anchorage agent attempted to monitor the broadcasts for both KAXX 
and KADX but found both stations off the air.
     3.   On December 12, 2002, an Anchorage agent revisited the 
KAXX/KADX main studio location, but found the studio locked, 
unoccupied and dark.  The agent contacted the owner of the 
property who indicated that the suites were leased by Chester 
Coleman, and that Coleman was about two months delinquent in his 
rent.
     4.    On January 22, 2003, the Commission's Media Bureau 
granted Coleman's request for special temporary authority 
(``STA'') for both KAXX and KADX to remain silent for a period of 
90 days.5  On July 28, 2003, the Media Bureau subsequently 
granted a second STA request which permitted KAXX and KADX to 
remain silent until October 25, 2003.6  Both the January STA and 
the July STA notified Coleman that the ``...stations' silent 
status does not suspend the licensee's obligation to comply with 
all other relevant Commission rules....'' 7  According to the 
filings submitted by Coleman to the FCC and reflected in the FCC 
database, KAXX and KADX were back on the air as of October 22, 
2003.
     5.   On December 10 and 11, 2003, the Anchorage agents 
monitored KAXX and KADX, but found no broadcast signal for either 
station.  The agents then attempted to visit the main studio for 
the stations located at 2509 Eide Street, Anchorage, but found no 
main studio at that location.  They also found that the prior 
phone number was disconnected.  No other main studio and no other 
phone number for KAXX or KADX was listed in any of the local area 
phone books nor could the agents find any toll-free number listed 
for KAXX and KADX.
     6.   Further investigation in February of 2004 by the agents 
revealed that the lease on the main studio space had been 
terminated as of June 30, 2003, that all of the equipment had 
been removed (purportedly by station personnel) on or before June 
30, 2003, that the power company had terminated service to the 
stations and their broadcast tower in October of 2002, and that 
Coleman's state business license has expired on December 31, 
2002.  
     7.   In July of 2004, the Anchorage agents again attempted 
to ascertain the status of stations KAXX and KADX.  The agents 
detected no signal for either station, found no main studio, no 
staff, no local or toll free number for either station, and that 
the electricity to the broadcast tower remained disconnected.  In 
a letter dated November 17, 2004, Coleman informed the Commission 
that both KAXX and KADX were back on the air.  On November 27, 
2004, monitoring by an Anchorage agent confirmed that both 
stations had resumed broadcasting.
III.      DISCUSSION
     8.   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.  The term ``willful'' 
as used in Section 503(b) is interpreted to mean simply that the 
acts or omissions are committed knowingly.8  The term 
``repeated'' means the commission or omission of such act more 
than once or for more than one day.9
     9.   Section 73.1125(a) of the Rules requires the licensee 
of  a broadcast station to maintain a main 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 Section 73.208(a)(1).10   In addition, 
the station's main studio must serve the needs and interests of 
the residents of the station's community of license. To fulfill 
this function, a station must, among other things, maintain a 
meaningful managerial and staff presence at its main studio.11   
The Commission has defined a minimally acceptable ``meaningful 
presence'' as a full-time managerial and full-time staff 
personnel.  In addition, there must be ``management and staff 
presence'' on a full-time basis during normal business hours to 
be considered ``meaningful.'' 12  Although management personnel 
need not be ``chained to their desks'' during normal business 
hours, they must ``report to work at the main studio on a daily 
basis, spend a substantial amount of time there and use the 
studio as a home base. 13   Between October 15, 2002, and June 
30, 2003, the site held out by Coleman as the main studio 
location for both KAXX and KADX had no public access and no staff 
presence.  After June 30, 2003, agents were unable to find any 
evidence that a main studio existed for either of the stations.  
The January 2003 STA notified Coleman that KAXX and KADX were 
required to comply with all relevant Commission rules.  
Nevertheless, during the term of the STA, Coleman did not 
maintain the requisite main studio for either station.  Then, 
subsequent to the expiration of the STA on October 23, 2003, and 
through at least July of 2004, no main studio existed for KAXX 
and KADX within the station's community of license; at any 
location within the station's principal community contours or 
within twenty-five miles from the reference coordinates of the 
center of the station's communities of license.  Coleman knew of 
the requirement to maintain a main studio.  Therefore, the 
failure to maintain a main studio for the stations was willful.  
The violation occurred on more than one day, therefore, it was 
repeated.
     10.  Section 73.1125(e) requires every broadcast station to 
maintain a local or a toll-free telephone number in its community 
of license.14   As of October 15, 2002, the main studio telephone 
number for both KAXX and KADX was out of service.  Between 
January 2003 and July 2004, no listings of a local or toll-free 
number for either station could be located.  The January 2003 STA 
notified Coleman that KAXX and KADX were required to comply with 
all relevant Commission rules.  Therefore, the failure to 
maintain local or toll-free telephone numbers for the stations 
was willful.  The violation occurred on more than one day, 
therefore, it was repeated. 
     11.  Section 73.1740(a)(1) of the Commission's Rules,15 
states, in part, that all commercial AM and FM broadcast stations 
are required to operate not less than two-thirds of the total 
hours they are authorized to operate between 6 a.m. and 6 p.m. 
local time and two-thirds of the total hours they are authorized 
to operate between 6 p.m. and midnight, local time, each day of 
the week except Sunday.  Section 73.1745(b) of the Commission's 
Rules,16 states, in part, that any unauthorized departure from an 
operating schedule which is required to be filed with the FCC in 
Washington, DC, will be considered as a violation of a material 
term of the license.  Beginning October 16, 2002, and continuing 
through at least July 23, 2004, KAXX and KADX departed from their 
authorized operating schedules and failed to operate for the 
minimal amount of hours required by their authorizations and 
Section 73.1740.  Between January 22, 2003, and April 23, 2003, 
and between July 28, 2003, and October 25, 2003, the silent 
status of KAXX and KADX was sanctioned by Commission STA's.  The 
stations' failure to operate at all other times, including after 
October 25, 2003, was not.  Because of the STA's, Coleman was 
aware of the requirement to resume minimum broadcast operations 
in accordance with the stations' operating schedule after October 
25, 2003.  Consequently, his failure to do so was willful.  The 
violation occurred for more than one day, therefore, it was 
repeated.
     12.  Based on the evidence before us, we find Coleman 
willfully and repeatedly violated Sections 73.1125(a) and (e), 
73.1740(a)(1) and 73.1745(b) of the Rules by failing to maintain 
main studios, local or toll-free telephone numbers, and minimum 
operating schedules, for both KAXX and KADX, and for departing, 
without authorization, from the terms of the stations' 
authorizations.  
     13.  Pursuant to The Commission's Forfeiture Policy 
Statement and Amendment of Section 1.80 of the Rules to 
Incorporate the Forfeiture Guidelines, (``Forfeiture Policy 
Statement''), and Section 1.80 of the Rules, the base forfeiture 
amount for failing to maintain a main studio and a toll-free 
phone numbers is $7,000 per station, total for this violation is 
$14,000 and; for failing to maintain a minimum broadcast schedule 
and unauthorized discontinuance of operation is $5000 per 
station, total for this violation is $10,000.17  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.18  Applying the 
Forfeiture Policy Statement, Section 1.80, and the statutory 
factors, a $24,000 forfeiture is warranted.
IV.  ORDERING CLAUSES
     14.  Accordingly, IT IS ORDERED, pursuant to Section 503(b) 
of the Act, and Sections 0.111, 0.311 and 1.80 of the Rules, that 
Chester P. Coleman c/o American Radio Brokers, Inc. is hereby 
NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the 
amount of twenty-four thousand dollars ($24,000) for willful and 
repeated violation of Sections 73.1125(a) and (e), 73.1740(a)(1) 
and 73.1745(b) of the Rules by failing to maintain, in both 
stations cases, a main studio, a minimum operating schedule and 
unauthorized departure from the terms of the station 
authorizations. 19
     15.  IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of 
the Rules, within thirty days of the release date of this Notice 
of Apparent Liability for Forfeiture, Chester P. Coleman c/o 
American Radio Brokers, Inc. SHALL PAY the full amount of the 
proposed forfeiture or SHALL FILE a written statement seeking 
reduction or cancellation of the proposed forfeiture.
     16.  Payment of the forfeiture must be made by check or 
similar instrument, payable to the order of the Federal 
Communications Commission.  The payment must include the 
NAL/Acct. No. and FRN No. referenced above.  Payment by check or 
money order may be mailed to Forfeiture Collection Section, 
Finance Branch, Federal Communications Commission, P.O. Box 
73482, Chicago, Illinois 60673-7482.  Payment by overnight mail 
may be sent to Bank One/LB 73482, 525 West Monroe, 8th Floor 
Mailroom, Chicago, IL 60661.   Payment by wire transfer may be 
made to ABA Number 071000013, receiving bank Bank One, and 
account number 1165259.
     17.  The response, if any, must be mailed to Federal 
Communications Commission, Enforcement Bureau, Western Region, 
Anchorage Resident Agent Office, P.O. Box 221849, Anchorage, 
Alaska 99522-1849 and must include the NAL/Acct. No. referenced 
in the caption. 
     18.  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.
     19.  Requests for payment of the full amount of this Notice 
of Apparent Liability for Forfeiture under an installment plan 
should be sent to: Chief, Revenue and Receivables Operations 
Group, 445 12th Street, S.W., Washington, D.C. 20554.20     20.  IT IS FURTHER ORDERED THAT a copy of this NAL shall be 
sent by regular mail and Certified Mail Return Receipt Requested 
to: Chester P. Coleman c/o American Radio Brokers, Inc., 1255 
Post Street, Suite 1011, San Francisco, CA 94109; Chester P. 
Coleman c/o American Radio Brokers, Inc., 1255 Post Street, Suite 
1023, San Francisco, CA 94109.

                         FEDERAL COMMUNICATIONS COMMISSION



                         David J. Charlton
                         Resident Agent
                         Anchorage Resident Agent Office
                         Western Region
                         Enforcement Bureau



_________________________

1AM broadcast station, KAXX, Facility ID 53491, is a Class A 
facility, licensed to operate on 1020 kHz, omni-directional 
during daytime hours and directionally for nighttime hours with a 
directional array, serving the community of Eagle River, Alaska.

2FM broadcast station, KADX, Facility ID 10770, is a Class C2 
facility, licensed to operate on 94.7 MHz, serving the community 
of Houston, Alaska.

347 C.F.R.  73.1125(a),(e), 73.1740(a)(1) and 73.1745(b).

447 U.S.C.  503(b).
5See File Nos. BLSTA-20030113CV and BLSTA20021227ACE, granted 
January 22, 2003 (``January 2003 STA'').  In the January 2003 STA 
it was noted that Coleman stated that he lacked the funds to 
operate the stations but that these funds were committed to him 
pursuant to Commission approval of a settlement agreement with 
another entity.

6See File Nos. BLSTA20030724AHA and BLSTA20030724AGZ, granted 
July 28, 2003 (``July 2003 STA'').

7January 2003 STA at 2; July 2003 STA at 2.
8Section 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 (1991).

9Section 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 `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.''

1047 C.F.R.  73.1125(a).

11See Main Studio and Program Origination Rules, 2 FCC Rcd 3215, 
3217-18, clarified 3 FCC Rcd 5024, 5026 (1988).

12Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615, 3616 
n.6 (1991), clarified 7 FCC Rcd 6800 n.4 (1992).
13Id., 7 FCC Rcd at 6802.
1447 C.F.R.  73.1125(e).

1547 C.F.R.  73.1740(a)(1).

1647 C.F.R.  73.1745(b).

1712 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999); 
47 C.F.R.  1.80.

1847 U.S.C.  503(b)(2)(D).
1947 U.S.C.  503(b); 47 C.F.R.  0.111, 0.311, 1.80, 
73.1125(a),(e), 73.1740(a)(1) and 73.1745(b).

20See 47 C.F.R.  1.1914.