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

In the Matter of                  )
                                 )
Richard A. & Joann R. Peterson,   )         File No. EB-05-SD-175
Joint Tenants                     )
                                 )                 NAL/Acct. No: 
Licensee of Station KBSZ(AM)      )                  200632940001 
Wickenburg, Arizona               )
Facility ID #11217                              FRN: 0007-7068-64


           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                                                                                                     
Released:  November 18, 2005

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

I.   INTRODUCTION

     1.1.      In this Notice of Apparent Liability for 
Forfeiture (``NAL''), we find that Richard A. & Joann R. 
Peterson, Joint Tenants (``Petersons''), licensees of AM 
Broadcast Radio station KBSZ in Wickenburg, Arizona, apparently 
willfully and repeatedly violated Section 11.35 of the 
Commission's Rules (``Rules''),1 by failing to ensure the 
operational readiness of KBSZ(AM)'s Emergency Alert System 
(``EAS'') equipment.  We conclude, pursuant to Section 503(b) of 
the Communications Act of 1934, as amended (``Act'')2, that the 
Petersons are apparently liable for a forfeiture in the amount 
of eight thousand dollars ($8,000).

II.  BACKGROUND

     1.2.      On August 10, 2005, an agent from the Enforcement 
Bureau's San Diego Office conducted an inspection at the main 
studio of KBSZ(AM) located at 340 W. Wickenburg Way, Wickenburg, 
Arizona.  The agent observed that there was no EAS equipment at 
their studio.  The agent asked Mr. Peterson the status of the 
station's EAS equipment and Mr. Peterson stated that the station 
did not have any EAS equipment installed at the studio or at the 
transmitter site.  He also stated that his contract engineer 
advised him that he needed EAS equipment for KBSZ(AM).  Mr. 
Peterson told the agent that KBSZ(AM) was once owned by Circle S 
Broadcasting, Co., Inc. and was once co-located with radio 
station KSWG(FM), also licensed to Wickenburg, Arizona.3  All 
EAS tests received and transmitted by KSWG(FM) are aired on 
KBSZ(AM) via a studio-to-transmitter link and all EAS records 
are maintained by KSWG(FM), according to Mr. Peterson.  The San 
Diego agent observed that KBSZ(AM) maintained no EAS logs and 
had no way to monitor any EAS alerts at its station. The agent 
then contacted KSWG(FM) by telephone and requested that KSWG(FM) 
conduct an EAS weekly test.  The agent monitored station 
KBSZ(AM) and noted that the EAS test signal from KSWG(FM) was 
being relayed. 

     1.3.      On August 18, 2005, the San Diego agent contacted 
the KSWG(FM) general manager.  The general manager told the 
agent that KSWG(FM) did not have any agreement with KBSZ(AM) to 
continue sharing EAS equipment since KBSZ(AM) was sold to the 
Petersons in 2001.  The general manager also told the agent that 
he was not aware that KSWG(FM) continued to share its EAS 
equipment with KBSZ(AM) and stated he would have this practice 
discontinued.  

     1.4.      On August 19, 2005, the San Diego agent spoke with 
KBSZ(AM)'s contract engineer.  The engineer acknowledged that he 
had advised the Petersons that EAS equipment should be installed 
at the KBSZ(AM) studio. The engineer also told the agent that he 
was advised by Mr. Peterson that KBSZ(AM) was sharing EAS 
equipment with KSWG(FM) and that all the required EAS tests were 
being received and transmitted via KSWG(FM).
  
     1.5.      A review of the Commission's records shows that 
Circle S Broadcasting Company, Inc. (``Circle S'') is the 
current licensee of KSWG(FM).  Circle S was the licensee of 
KBSZ(AM) until July 16, 1997, when the KBSZ(AM) license was 
assigned to SBD Broadcasting, Inc. (``SBD'').4  On July 9, 2001, 
the KBSZ(AM) license was assigned from SBD to the Petersons.5

III.      DISCUSSION

     1.6.      Section 503(b) of the Act provides that any person 
who willfully fails to comply substantially with the terms and 
conditions of any license, or willfully 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) has been interpreted to mean simply that the acts or 
omissions are committed knowingly.6  The term ``repeated'' means 
the commission or omission of such act more than once or for 
more than one day.7

     1.7.      The Rules provide that every AM and 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.8  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.9  State and local area plans 
identify local primary sources responsible for coordinating 
carriage of common emergency messages from sources such as the 
National Weather Service or local emergency management 
officials.10  Required monthly and weekly tests originate from 
EAS Local or State Primary sources and must be retransmitted by 
the participating station

     1.8.      Section 11.35 of the Rules requires all broadcast 
stations to ensure that EAS encoders, EAS decoders and attention 
signal generating and receiving equipment is installed and 
operational so that the monitoring and transmitting functions 
are available during the times the station is in operation.  
Broadcast stations must also determine the cause of any failure 
to receive required monthly and weekly EAS tests, and must 
indicate in the station's log why any required tests were not 
received and when defective equipment is removed and restored to 
service.11  

     1.9.      Section 11.61(a)(1) and (2) of the Rules requires 
broadcast stations to (a) receive monthly EAS tests from 
designated local primary 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.12  The requirement that stations monitor, receive and 
retransmit the required EAS tests ensures the operational 
integrity of the EAS system in the event of an actual disaster.  
Appropriate entries must be made in the broadcast station log as 
specified in Sections 73.1820 and 73.1840, indicating reasons 
why any tests were not received or transmitted.13

     1.10.     Section 11.51(j) of the Rules states that 
broadcast stations that are co-owned and co-located with a 
combined studio or control facility may provide EAS for the 
combined stations with one EAS encoder.14  Section 11.51(j), 
however, does not contemplate stations that are co-located, but 
not co-owned, sharing EAS equipment.15  In the present case, 
KBSZ(AM) and KSWG(FM) are not currently co-owned or co-located.  
Therefore, KBSZ(AM) is required to install EAS equipment.

     1.11.     Since acquiring KBSZ(AM) in 2001, the Petersons 
have failed to install EAS equipment at the station.  Mr. 
Peterson acknowledged to a San Diego agent that he had been 
aware of this requirement since being advised by the station's 
contract engineer after the Petersons purchased the station.  
Therefore, the Petersons' violation is willful.  The violation 
occurred on more than one day, therefore, it is repeated.  Based 
on the evidence before us, we find that Richard A. & Joann R. 
Peterson, Joint Tenants, apparently willfully and repeatedly 
violated Section 11.35 of the Rules, by failing to ensure the 
operational readiness of KBSZ(AM)'s EAS equipment.

     1.12.     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(b)(4) of the Rules sets forth the base forfeiture 
amounts for various violations of the Commission's Rules.  The 
base forfeiture 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, and with 
respect to the violator, the degree of culpability, and any 
history of prior offenses, ability to pay, and other such 
matters as justice may require.''16  Applying the Forfeiture 
Policy Statement, Section 1.80 and the statutory factors, we 
conclude that the Petersons are apparently liable for a 
forfeiture in the amount of $8,000. 

IV.  ORDERING CLAUSES

     1.13.     Accordingly, IT IS ORDERED THAT, pursuant to 
Section 503(b) of the Communications Act of 1934, as amended, 
and Sections 0.111, 0.311 and 1.80 of the Commission's Rules, 
Richard A. & Joann R. Peterson, Joint Tenants, are hereby 
NOTIFIED of their APPARENT LIABILITY FOR A FORFEITURE in the 
amount of eight thousand dollars ($8,000) for violating Section 
11.35 of the Commission's Rules.17

     1.14.     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 for 
Forfeiture, Richard A. & Joann R. Peterson, Joint Tenants, SHALL 
PAY the full amount of the proposed forfeiture or SHALL FILE a 
written statement seeking reduction or cancellation of the 
proposed forfeiture.

     1.15.     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 bycheck or 
money order may be mailed to Federal Communications Commission, 
P.O. Box358340,Pittsburgh, PA 15251-8340. Payment by 
overnight mail may be sent toMellon Bank/LB358340,500 Ross 
Street, Room 1540670, Pittsburgh, PA 15251. Payment by wire 
transfer may be made to ABA Number043000261, receiving 
bankMellon Bank, and account number911-6106  

     1.16.     The response, if any, must be mailed to Federal 
Communications Commission, Enforcement Bureau, Western Region, 
San Diego Office, 4542 Ruffner Street, Suite 370, San Diego, 
California 92111 and must include the NAL/Acct. No. referenced 
above.

     17.    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.

     18.     Requests for payment of the full amount of this 
Notice of Apparent Liability for Forfeiture under an installment 
plan should be sent to: Associate Managing Director - Financial 
Operations, 445 12th Street, S.W., Room 1A625, Washington, D.C. 
20554.18

     19.     IT IS FURTHER ORDERED THAT this NOTICE OF APPARENT 
LIABILITY shall be sent, by Certified Mail, Return Receipt 
Requested to Richard A. & Joann R. Peterson, Joint Tenants, at 
their address of record.


                              FEDERAL COMMUNICATIONS COMMISSION



                              William R. Zears, Jr.
                              District Director
                              San Diego Office 
                              Western Region
                              Enforcement Bureau
_________________________

147 C.F.R.  11.35.
247 U.S.C.  503(b).
3KSWG(FM) is now located at 801 W. Wickenburg Way, Wickenburg, 
Arizona. 
4See File No. BAPL-19970602GE, granted July 16, 1997. 
5See File No. BAL-20010525ABU, granted July 9, 2001. 
6Section 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). 
7Section 312(f)(2) of the Act, 47 U.S.C.  312(f)(2), which also 
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.''
847 C.F.R.  11.11 and 11.41.
947 C.F.R.  11.1 and 11.21.
1047 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.
1147 C.F.R.  11.35(a) and (b).
12The required monthly and weekly tests are required to conform 
to the procedures in the EAS Operational Handbook.  See also, 
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) 
(effective May 16, 2002, the required monthly EAS test must be 
retransmitted within 60 minutes of receipt).
1347 C.F.R.  73.1820 and 73.1840.
1447 C.F.R.  11.51(j).
15Hull Broadcasting, Inc., 19 FCC Rcd 16710 (EB 2004). 
1647 U.S.C.  503(b)(2)(D).
1747 U.S.C.  503(b), 47 C.F.R.  0.111, 0.311, 1.80, 11.35.
18See 47 C.F.R.  1.1914.