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

In the Matter of                )
                                )
American Family Association     )    File No. EB-02-KC-236
                                )    NAL/Acct. No. 200232560005
Licensee of Station KBKC-FM     )    FRN 0005-0259-11
Moberly, Missouri               )    
                                   

                  MEMORANDUM OPINION AND ORDER 

Adopted:  February 14, 2003             Released:   February  18, 
2003

By the Chief, Enforcement Bureau:

                        I.  INTRODUCTION

1.        In this Memorandum  Opinion and  Order (``Order''),  we 
  deny a  petition for reconsideration  filed by American  Family 
  Association (``AFA''),  licensee of  Station KBKC-FM,  Moberly, 
  Missouri, of  a Forfeiture  Order1 issued  in this  proceeding.  
  The  Forfeiture Order  issued a  $5,000 forfeiture  to AFA  for 
  operating  Station  KBKC  without  a  main  studio  in  willful 
  violation  of  Section   73.1125  of  the  Commission's   Rules 
  (``Rules'').2  

                         II.  BACKGROUND

2.        On April 8,  2002, an  FCC agent from  the Kansas  City 
  Office attempted  an inspection  of Station  KBKC-FM, which  is 
  licensed to AFA  in Moberly, Missouri.  Investigation  revealed 
  no listing for the station in the local telephone  directories.  
  The agent  went to the station's  transmitter site and found  a 
  sign  on the  tower with  the phone  number 662-844-8888.   The 
  agent called  this number and spoke  with two AFA employees  in 
  Tupelo,  Mississippi.  These  AFA employees  stated that  there 
  was  no main  studio for  KBKC and  that the  station's  public 
  inspection  file  was located  at  the  Little  Dixie  Regional 
  Library in Moberly.  The agent inspected the public  inspection 
  file and did  not find a grant of  a waiver of the main  studio 
  rule  for the  station in  the file.   A subsequent  search  of 
  Commission records  revealed that  AFA had not  been granted  a 
  waiver of the main studio rule for KBKC.  

3.        On May 28, 2002, the Kansas City Office issued a Notice 
  of Apparent  Liability for  Forfeiture (``NAL'')  for a  $7,000 
  forfeiture to  AFA for  apparently failing to  maintain a  main 
  studio for KBKC in willful violation of Section 73.1125 of  the 
  Rules.3  In its response  to the NAL, AFA acknowledged that  it 
  did not have either  a main studio for KBKC or a waiver of  the 
  main studio rule at  the time of the inspection, but  requested 
  cancellation of the  forfeiture or reduction of the  forfeiture 
  to a  lesser amount.  In the  Forfeiture Order, we reduced  the 
  forfeiture to $5,000 because AFA disclosed to Commission  staff 
  in February  2002 that  it was  operating KBKC  as a  satellite 
  station without a waiver  of the main studio rule; however,  we 
  rejected the other arguments advanced by AFA in support of  its 
  request for cancellation or reduction of the forfeiture.4

4.        In its petition  for reconsideration,  AFA argues  that 
  its  violation of  the main  studio rule  should be  considered 
  minor  because it  was in  fact  fulfilling its  local  service 
  obligation.   Specifically,   AFA  asserts  that   in  the   59 
  instances where it has previously been granted a waiver of  the 
  main studio rule, Commission staff has required  implementation 
  of certain  measures to ensure that  the station will meet  its 
  local  service  obligation,  including  (1)  adding  to   AFA's 
  advisory board  at least one resident  from the station's  city 
  of license  to provide recommendations  on community needs  and 
  programming;  (2)  soliciting  listeners'  opinions  every  six 
  months  regarding community  issues that  should be  addressed; 
  (3)  providing periodic  local programming  for the  community; 
  and (4) maintaining a toll-free number and a public  inspection 
  file  for  the   station  within  the  community  of   license.  
  According  to AFA,  all  of these  measures  were in  place  in 
  Moberly at the time  of the inspection.  AFA also asserts  that 
  imposition  of a  $5,000  forfeiture will  have  a  devastating 
  financial  effect  on KBKC,  which  is  a  small  noncommercial 
  educational   station    located   in   a   rural    community.  
  Furthermore,  AFA asserts  that it  has  a history  of  overall 
  compliance  with  the  Commission's  rules.   Based  on   these 
  factors, AFA  argues that the forfeiture  should be reduced  to 
  $500.  

                      III.      DISCUSSION

5.        We reject AFA's argument that its violation of the main 
  studio rule should be considered a minor violation.  We do  not 
  believe  that  AFA's implementation  of  measures  required  by 
  Commission  staff  in other  prior  waiver  cases  renders  its 
  failure in this case either to maintain a main studio for  KBKC 
  in Moberly  or to seek a  main studio waiver  for KBKC a  minor 
  violation.  In any event, contrary to AFA's assertion, not  all 
  of these measures were  in place in Moberly at the time of  the 
  inspection.   In particular,  we  note that  the  phone  number 
  posted at  KBKC's transmitter  site, 662-844-8888,  was not  in 
  fact a toll-free number for Moberly residents.5    

6.        AFA also asserts that imposition of a $5,000 forfeiture 
  will have a devastating financial effect on KBKC.  However,  as 
  stated in  the NAL, 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;   or  (3)   some   other  reliable   and   objective 
  documentation   that  accurately   reflects  the   petitioner's 
  current   financial   status.   AFA   provided   no   financial 
  documentation in support of its assertion that the $5,000  will 
  impose a  financial hardship  on it  and therefore  we have  no 
  basis upon  which to analyze its  request for reduction of  the 
  forfeiture.  We  also note  that the  Commission has  concluded 
  that it  is appropriate to take  into account ``income  derived 
  from  other affiliated  operations, as  well as  the  financial 
  status  of  the station(s)  in  question''  in  determining  an 
  entity's  ability to  pay a  forfeiture.6  Thus,  in  assessing 
  AFA's financial hardship  claim, we would evaluate the  ability 
  of AFA to pay the forfeiture, rather than that of KBKC alone. 

7.        Finally, AFA asserts that it  has a history of  overall 
  compliance with the Commission's rules.  However, we note  that 
  in  March  2000,  the  Commission's  Columbia,  Maryland  Field 
  Office issued  a Notice of  Violation to AFA  for several  rule 
  violations   at   WARN-FM,   Culpeper,   Virginia,    including 
  violations of  the Emergency Alert  System (``EAS'') rules  and 
  operation of  WARN with transmitter output  power in excess  of 
  its  authorized power.7   In  addition, in  October  2002,  AFA 
  admitted that  it violated the public  inspection file rule  at 
  KAUF-FM, Kennett,  Missouri.8  In light  of these other  recent 
  rule violations, we are  not persuaded that a reduction of  the 
  forfeiture in  this case based on  AFA's history of  compliance 
  is warranted.

                      IV.  ORDERING CLAUSES

8.        Accordingly, IT IS  ORDERED that,  pursuant to  Section 
  1.106 of the Rules,9 the petition for reconsideration filed  by 
  American Family Association IS DENIED. 

9.        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  Communications  Act  of  1934,  as  amended.10  
  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. 200232560005 and FRN 0005-0259-11.  Requests  for 
  full  payment under  an installment  plan  should be  sent  to:  
  Chief,  Revenue  and Receivables  Operations  Group,  445  12th 
  Street, S.W., Washington, D.C. 20554.11
10.       IT IS FURTHER ORDERED that  a copy of this Order  shall 
  be sent by first  class mail and certified mail return  receipt 
  requested  to   Patrick  J.  Vaughn,   Esq.,  American   Family 
  Association, P.O. Drawer 2440, Tupelo, Mississippi 38803.

                         FEDERAL COMMUNICATIONS COMMISSION
                         


                         David H. Solomon
                         Chief, Enforcement Bureau
_________________________

  1  American Family  Association, 17  FCC Rcd  18135 (Enf.  Bur. 
2002).

  2 47 C.F.R.  73.1125.  

  3 Notice  of Apparent Liability  for Forfeiture, NAL/Acct.  No. 
200232560005 (Enf.  Bur., Kansas  City Office,  released May  28, 
2002).

  4 17 FCC Rcd at 18137.

  5  This  telephone  number  reaches  AFA  offices  in   Tupelo, 
Mississippi, which is approximately 523 miles away from  Moberly.  
Thus, it is clearly not a local telephone number either.  

  6 See KASA Radio  Hogar, Inc., 17 FCC Rcd 6256 (2002)  (quoting 
Emery Telephone,  13  FCC  Rcd  23854,  23859-60  (1998),  recon. 
denied, 15 FCC Rcd 7181 (1999)).  

  7 On March 21,  2000, the Columbia Office issued an NOV to  AFA 
for the  following  violations  at  WARN-FM:   Sections  11.52(d) 
(failure to monitor  two EAS sources),  11.61(b) (failure to  log 
EAS  tests  received),  73.1560(b)   (failure  to  maintain   the 
transmitter output power between 90%  and 105% of the  authorized 
power), and  73.1870(c)(3) (failure  to have  the chief  operator 
review the station logs at least  once each week to determine  if 
the required entries are made correctly).  File No. EB-99-CF-035.  
In its response  to this  NOV, submitted  on April  3, 2002,  AFA 
acknowledged that it violated these rules.

  8 On September 23,  2002, the Kansas City Office issued an  NAL 
for a  $9,000  forfeiture  to  AFA  for  violations  of  Sections 
11.35(a) (failure  to  maintain operational  EAS  equipment)  and 
73.3527(e)  (failure  to  maintain  all  required  items  in  the 
station's public file) at KAUF-FM.  Notice of Apparent  Liability 
for Forfeiture, NAL/Acct. No.  200232560027 (Enf. Bur.,  released 
September 23, 2002).  In  its response to  the NAL, AFA  disputes 
that it violated the  EAS rule, but admits  that it violated  the 
public inspection file rule.  We do not rely on the NAL here, but 
only the underlying facts.

  9 47 C.F.R.  1.106.

  10 47 U.S.C.  504(a).

  11 See 47 C.F.R.  1.1914.