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

In the Matter of                )
                                )       File No. EB-01-ST-014
Palouse Country, Inc.           )    
                                )       NAL/Acct.             No. 

Licensee of Station KMAX(AM)   )     
                                )       FRN 0001-5660-74
Colfax, Washington             ) 

                        FORFEITURE ORDER

     Adopted:  January 2, 2002          Released:    January   4, 

By the Chief, Enforcement Bureau:

                        I.  INTRODUCTION

     1.   In  this  Forfeiture  Order  (``Order''),  we  issue  a 
monetary forfeiture  in  the  amount of  eight  thousand  dollars 
($8,000) to  Palouse  Country, Inc.  (``Palouse''),  licensee  of 
Station KMAX(AM), for willful violation of the following Sections 
of the Commission's Rules ("Rules"): 73.1400(a)(1)(ii) (operating 
KMAX(AM)  without  required  monitors);  73.1560(a)  (failure  to 
operate in compliance with the station license regarding  power); 
73.1580 (failure to perform periodic complete inspections of  the 
transmitting  system);  and  73.1870(c)(3)  (failure  to  provide 
verification that the station has  been operating as required  by 
the Rules  or the  station  authorization by  making  appropriate 
entries into the station log).1

                         II.  BACKGROUND

     2.   On January  12,  2001, the  FCC's  Seattle,  Washington 
District Office ("Seattle Office") received information from  the 
Enforcement  Bureau's  Technical   and  Public  Safety   Division 
indicating that  KMAX(AM) was not reducing its power at night  as 
required.  On January 17 and 18, 2001, an agent from the  Seattle 
Office monitored  the  on-air  signal  of  KMAX(AM),  took  field 
strength measurements, and conducted  an inspection of  KMAX(AM), 
all of  which resulted  in the  discovery of  the  aforementioned 
violations.  On  March  1, 2001,  the  District Director  of  the 
Seattle Office issued a Notice  of Violation ("NOV") to  Palouse.  
On March 28,  2001, Palouse submitted  a response to  the NOV  in 
which it claimed to have corrected the violations.  Palouse  also 
requested the Commission to consider its past operational history 
and good faith efforts to correct the violations.  On August  30, 
2001, the District Director of the Seattle Office issued a Notice 
of Apparent Liability for Forfeiture  ("NAL")2 to Palouse in  the 
amount of $10,000.  On October 5, 2001, Palouse filed a  response 
to the  NAL.3  In  its  response, Palouse  does not  dispute  the 
violations.  Rather, it  asserts that payment  of the  forfeiture 
amount would cause severe hardship. 

                                        III. DISCUSSION

     3.   Although other  factors  can be  considered,  the  best 
indication of a company's ability  to pay a forfeiture amount  is 
its gross  receipts.4   In  support of  its  claim  of  financial 
hardship, Palouse  has submitted  financial  data for  the  years 
1999,  2000,  and  two  months  of  2001.   After  reviewing  the 
financial data  submitted,  we  find  no  evidence  in  Palouse's 
response that  would support  a hardship-based  reduction of  the 
forfeiture amount.  The proposed forfeiture amount of $10,000  is 
not excessive in light of Palouse's gross revenues.  Further,  we 
note  that  although  Palouse   claims  to  have  corrected   the 
violations, its remedial  actions, while commendable,  are not  a 
mitigating factor.5  However, after considering Palouse's overall 
history of compliance  with the Commission's  Rules, we  conclude 
that it is appropriate to  reduce the forfeiture from $10,000  to 

                      IV.  ORDERING CLAUSES

     4.   Accordingly, IT IS  ORDERED THAT,  pursuant to  Section 
503(b) of the Communications Act of 1934, as amended  (``Act''),6 
and Sections 0.111, 0.311 and  1.80(f)(4) of the Rules,7  Palouse 
Country, Inc. IS LIABLE FOR  A MONETARY FORFEITURE in the  amount 
of  eight  thousand  dollars  ($8,000)  for  violating   Sections 
73.1400(a)(1)(ii), 73.1560(a), 73.1580, and 73.1870(c)(3) of  the 

     5.   Payment of the forfeiture shall  be made in the  manner 
provided for in Section 1.80 of the Rules,8 within 30 days of the 
release of this Order.  If the forfeiture is not paid within  the 
period specified, the case may  be referred to the Department  of 
Justice for collection  pursuant to Section  504(a) of the  Act.9  
Payment shall be made by  mailing a check or similar  instrument, 
payable to the order of the "Federal Communications  Commission," 
to  the  Federal  Communications  Commission,  P.O.  Box   73482, 
Chicago, Illinois 60673-7482.  The payment should note  NAL/Acct. 
No.  200132980002,  and  FRN  0001-5660-74.   Requests  for  full 
payment under  an  installment plan  should  be sent  to:  Chief, 
Revenue and Receivables Group, 445 12th Street, S.W., Washington, 
D.C. 20554.10

     6.   IT IS FURTHER ORDERED that, a copy of this Order  shall 
be sent by Certified Mail Return Receipt Requested to counsel for 
Palouse Country, Inc., Jerrold Miller,  Esq. at Miller &  Miller, 
P.C., 1990 M Street, NW, Washington, DC 20036.


                         David H. Solomon
Chief, Enforcement Bureau


  1    47 C.F.R.   73.1400(a)(1)(ii), 73.1560(a), 73.1580,  and 

  2   Notice of Apparent Liability for Forfeiture, NAL/Acct.  No. 
200132980002 (Enf.  Bur.,  Seattle Office,  released  August  30, 

  3    Palouse's response to the NAL was untimely.  See 47 C.F.R. 
 1.80(f)(3).   Nevertheless,  we address  herein  the  arguments 
raised in the response.

  4    See PJB Communications of Virginia, Inc., 7 FCC Rcd  2088, 
2089 (1992). 

  5    See American  InfoAge, LLC,  16 FCC Rcd  16185 (Enf.  Bur. 
2001), citing Station KGVL, Inc., 42 FCC 2d 258, 259 (1973).

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

  7    47 C.F.R.  0.111, 0.311, 1.80(f)(4).

  8    47 C.F.R. ' 1.80. 

  9    47 U.S.C.  504(a).

  10   See 47 C.F.R.  1.1914.