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                )            
                                )       
Blue Skies Broadcasting Corporation  )       File  No.  EB-02-SD-
075
KSKT-CA                         )
                                )       NAL/Acct.             No. 
200232940006
                                )
San Marcos, CA                  )       FRN 0003-7774-06         

                        FORFEITURE ORDER 

Adopted:  July 18, 2003                 Released:  July 22, 2003 

By the Chief, Enforcement Bureau:

                        I.  INTRODUCTION

     1.   In  this  Forfeiture  Order  (``Order''),  we  issue  a 
        monetary forfeiture in the  amount of one thousand  eight 
        hundred  dollars  ($1,800)  to  Blue  Skies  Broadcasting 
        Corporation (``Blue Skies''),  for willful violations  of 
        Sections 11.35(a)  and  73.1125(c)  of  the  Commission's 
        Rules (``Rules'').1   The noted  violations involve  Blue 
        Skies' failure  to have  an operational  Emergency  Alert 
        System (``EAS'')  installed, and  its failure  to have  a 
        main studio  within  the  predicted Grade  B  contour  of 
        station KSKT-CA. 2

     2.   On  July  31,   2002,  the   Commission's  San   Diego, 
        California, Field Office (``San Diego Office'') issued  a 
        Notice of Apparent Liability for Forfeiture (``NAL'')  to 
        Blue Skies  for a  forfeiture in  the amount  of  fifteen 
        thousand  dollars  ($15,000).3   Blue  Skies  filed   its 
        response to the NAL on September 3, 2002.

                         II.  BACKGROUND

     3.   Blue Skies  is  the  licensee  of  Class  A  Television 
        Broadcast station KSKT-CA.   On March 6,  2002, an  agent 
        from the San  Diego Office planned  to conduct a  routine 
        inspection of the EAS  equipment for station KSKT-CA  but 
        could  not  find  a  local  telephone  number  or  studio 
        address for that station.    On March 8, 2002, the  agent 
        placed a  telephone  call  to a  number  listed  in  Blue 
        Skies' most recent  application and spoke  to Mr.  Robert 
        Ruiz, the president of Blue Skies.  Mr. Ruiz stated  that 
        Blue  Skies  closed  the  main  studio  for  KSKT-CA   in 
        December  2001 for  financial  reasons  and  removed  the 
        station's EAS equipment from service at the same time.

     4.   On April 12,  2002, agents  from the  San Diego  Office 
        inspected  the  transmitter  site  for  station  KSKT-CA.    
        They  observed  that  the  station's  EAS  equipment  was 
        installed  but   was   not  capable   of   receiving   or 
        transmitting the required  weekly and  monthly EAS  tests 
        and, therefore, was not fully operational.

     5.   On July 31, 2002, the San Diego Office issued a NAL for 
        a forfeiture in the amount  of $15,000 to Blue Skies  for 
        failure to have operational  EAS equipment installed  and 
        failure to have a main studio within the predicted  grade 
        B contour  of station  KSKT-CA.  In  its response,  filed 
        September 3, 2002, Blue  Skies admits that it closed  its 
        main studio for  financial reasons  and that  it did  not 
        have  fully  operational  EAS  equipment.   Blue   Skies, 
        however, seeks cancellation or reduction of the  proposed 
        monetary forfeiture.   Blue  Skies states  that  its  EAS 
        equipment  is now  fully  operational  and  that  it  has 
        ``arranged'' to have a  main studio at 2230 Micro  Place, 
        Escondido,  California, a  location  it  believes  to  be 
        within KSKT-CA's  Grade  B contour.   Blue  Skies  argues 
        that the full forfeiture amount of $15,000 should not  be 
        imposed because its violations are not as significant  as 
        those of stations  which have never  had main studios  or 
        EAS equipment.  Blue  Skies also argues  that payment  of 
        the proposed  forfeiture  amount of  $15,000 would  be  a 
        financial hardship.

     6.   On March 4 and July 11, 2003, agents from the San Diego 
        office traveled  to Escondido,  California, to  determine 
        whether station KSKT-CA has  a main studio at 2230  Micro 
        Place.  On both  occasions, the agents  found that  there 
        is no main studio at that location.

                      III.      DISCUSSION

     7.   The forfeiture  amount in  this  case was  assessed  in 
        accordance with Section 503(b) of the Communications  Act 
        of 1934,  as  amended  (``Act''),4 Section  1.80  of  the 
        Rules,5 and The Commission's Forfeiture Policy  Statement 
        and  Amendment   of  Section   1.80  of   the  Rules   to 
        Incorporate the Forfeiture Guidelines,  12 FCC Rcd  17087 
        (1997), recon. denied,  15 FCC Rcd  303 (1999)  (``Policy 
        Statement'').   In  examining   Blue  Skies's   response, 
        Section 503(b) of  the Act requires  that the  Commission 
        take into account 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.6

     8.   Section 11.35(a) of the  Rules requires that  broadcast 
        stations  have   operational  EAS   equipment.    Section 
        73.1125(c) of the Rules requires that broadcast  stations 
        maintain a  main studio  within the  station's  predicted 
        Grade  B contour.   On  the  basis  of  the  FCC  agents' 
        investigation and  Blue  Skies' admissions,  we  conclude 
        that  Blue   Skies   violated   Sections   11.35(a)   and 
        73.1125(c)  of  the  Rules.   In  view  of  Blue   Skies' 
        statement that it  closed its main  studio for  financial 
        reasons and  removed its  EAS equipment  from service  at 
        the same time,  we find  that Blue  Skies' violations  of 
        Sections  11.35(a)  and  73.1125(c)  of  the  Rules  were 
        willful.

     9.   Blue Skies argues  that the full  forfeiture amount  of 
        $15,000 should not be imposed because its violations  are 
        not as significant as  those of stations which never  had 
        main studios or EAS equipment.  Blue Skies'  deliberately 
        closed its  main  studio and  removed its  EAS  equipment 
        from service.  The  main studio  violation has  continued 
        for more  than 18  months following  the closure  and  is 
        still uncorrected (as of July 11, 2003).  Blue Skies  did 
        not take  any  steps  to make  its  EAS  equipment  fully 
        operational until  after our  inspection of  its  station 
        facilities.  The fact that  there may be licensees  whose 
        violations are  even more  significant than  Blue  Skies' 
        violations does  not  mitigate the  seriousness  of  Blue 
        Skies' violations.7

     10.  To the  extent that  Blue Skies  now has  operable  EAS 
        equipment, no  mitigation is  warranted on  the basis  of 
        its  correction of  the  violation.   As  the  Commission 
        stated in Seawest  Yacht Brokers,  9 FCC  Rcd 6099,  6099 
        (1994),  ``corrective   action   taken   to   come   into 
        compliance with Commission rules  or policy is  expected, 
        and does not  nullify or mitigate  any prior  forfeitures 
        or violations.''8

     11.  Blue Skies also contends  that payment of the  proposed 
        forfeiture  amount  of  $15,000  would  be  a   financial 
        hardship.  In  support  of this  contention,  Blue  Skies 
        submits copies of  its 2000 and  2001 federal income  tax 
        returns  and other  information.   Upon  review  of  this 
        financial documentation, we conclude that the  forfeiture 
        amount should be reduced to $1,800.

     12.  We have  examined  Blue  Skies'  response  to  the  NAL 
        pursuant  to  the   statutory  factors   above,  and   in 
        conjunction with  the  Policy Statement  as well.   As  a 
        result  of  our  review,  we  conclude  that  Blue  Skies 
        willfully violated  Sections 11.35(a)  and 73.1125(c)  of 
        the Rules.  We  find that,  while there is  no basis  for 
        cancellation  of  the  proposed  monetary  forfeiture,  a 
        reduction  to  $1,800  is  warranted  on  the  basis   of 
        financial hardship.

     13.  The agents' investigation on  July 11, 2003,  indicates 
        that, as  of that  date,  Blue Skies  still had  no  main 
        studio  and,  therefore,  continued  to  violate  Section 
        73.1125(c) of the  Rules even after  issuance of the  NAL 
        and Blue Skies'  promise to  ``arrange'' to  have a  main 
        studio.   Accordingly,  we  will  require,  pursuant   to 
        Section 308(b) of  the Act,9  that Blue  Skies report  to 
        the Enforcement  Bureau within  thirty (30)  days of  the 
        release of this Order  whether it has established a  main 
        studio as it  claims it plans  to do in  its response  to 
        the NAL.  If the report  indicates that Blue Skies has  a 
        main studio, it must  specify the main studio's  location 
        and  telephone  number.   Blue  Skies'  report  must   be 
        submitted in  the  form  of an  affidavit  signed  by  an 
        officer or  director  of  the licensee.   If  Blue  Skies 
        fails to submit such a report or we find that Blue  Skies 
        has not come into  compliance with our main studio  rule, 
        we will consider further appropriate enforcement action.



                        IV.  ORDERING CLAUSES

     14.  Accordingly, IT IS  ORDERED that,  pursuant to  Section 
        503(b)  of  the  Act,  and  Sections  0.111,  0.311   and 
        1.80(f)(4) of the  Rules,10 Blue  Skies IS  LIABLE FOR  A 
        MONETARY  FORFEITURE  in  the  amount  of  one   thousand 
        dollars  eight  hundred  ($1,800)  for  failure  to  have 
        operational EAS equipment installed and  failure to  have 
        a main  studio  within the  station's predicted  Grade  B 
        contour, in willful  violation of  Sections 11.35(a)  and 
        73.1125(c)  of the Rules.

     15.  IT IS ALSO ORDERED that, pursuant Section 308(b) of the 
        Act, Blue  Skies  must  submit the  report  described  in 
        Paragraph 13, above, within  30 days from the release  of 
        this  Order,   to  Federal   Communications   Commission, 
        Enforcement Bureau,  Spectrum Enforcement  Division,  445 
        12th  Street,  S.W.,  Room  7-A  820,  Washington,   D.C.  
        20554.

     16.  Payment of the forfeiture shall  be made in the  manner 
        provided for in Section 1.80 of the Rules 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.11  Payment may  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 
        reference NAL/Acct. No.  200232940006 and FRN  0003-7774-
        06.  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. 20554.12

     17.  IT IS FURTHER ORDERED that  copies of this Order  shall 
        be sent by  Certified Mail Return  Receipt Requested  and 
        by  First   Class  Mail   to  Blue   Skies   Broadcasting 
        Corporation, 5220 Campo  Road Woodland  Hills, CA  91364, 
        and  to  its  counsel,  Peter  Tannenwald,  Esq.,  Irwin, 
        Campbell & Tannenwald,  P.C., 1730  Rhode Island  Avenue, 
        N.W., Suite 200, Washington, D.C. 20036.

                              FEDERAL COMMUNICATIONS COMMISSION

                         


                              David H. Solomon
                              Chief, Enforcement Bureau
_________________________

  1 47 C.F.R.  11.35(a) and 73.1125(c). 

  2 The NAL also  alleged a violation of 47 C.F.R.  11.61.    We 
will not  address  this  allegation  in  this  Forfeiture  Order, 
because the NAL did not specify a forfeiture amount for violation 
of Section 11.61.

  3 Notice  of Apparent Liability  for Forfeiture, NAL/Acct.  No. 
200232940006 (Enf.  Bur., San  Diego  Office, released  July  31, 
2002).    

  4 47 U.S.C.  503(b).

  5 47 C.F.R.  1.80.

  6 47 U.S.C.  503(b)(2)(D).

  7 See,eg.,  Cornbelt Broadcasting  Co., 18 FCC  Rcd 6336  (Enf. 
Bur. 2003);  and Banjo  Communications Group,  Inc., 17  FCC  Rcd 
26101(Enf. Bur. 2002).

  8 See also Callais  Cablevision, Inc., 17 FCC Rcd 22626,  22629 
(2002); Radio Station KGVL, Inc., 42 FCC 2d 258, 259 (1973);  and 
Executive Broadcasting Corp., 3 FCC 2d 699, 700 (1966).

  9 47 U.S.C.  308(b)

  10 47 C.F.R.  0.111, 0.311, 1.80(f)(4).

  11 47 U.S.C.  504(a).

  12 See 47 C.F.R.  1.1914.