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

In the Matter of                        )         
Hispanic Broadcast System, Inc.                        )    File 
No. EB-04-IH-0381
Licensee of Noncommercial Educational Station )   NAL/Acct.   No. 
WQQZ(FM), Clermont, Florida                       )    FRN  0006-

                        FORFEITURE ORDER

     Adopted:  July 5, 2005                       Released:  July 
6, 2005  

By the Chief, Enforcement Bureau:

     1.   In this Forfeiture Order ("Order") we issue a  monetary 
          forfeiture  in the  amount  of eight  thousand  dollars 
          ($8,000) to Hispanic Broadcast System, Inc.  (``HBS''), 
          licensee   of   noncommercial   educational   broadcast 
          station WQQZ(FM),  Clermont, Florida,  for the  willful 
          and repeated  broadcast of advertisements in  violation 
          of section 399B  of the Communications Act of 1934,  as 
          amended  (the  ``Act''),1  section  73.503(d)  of   the 
          Commission's rules (``underwriting rules'').2    

     2.   In our  Notice  of Apparent  Liability  for  Forfeiture 
(``NAL''), we proposed  a monetary  forfeiture in  the amount  of 
$10,000 to HBS  for its  apparent violation  of the  underwriting 
rules through  its broadcast  of two  underwriting  announcements 
that impermissibly promoted  for-profit entities a  total of  288 
times from May 31 through June  27, 2004.3  In its response,  HBS 
requests cancellation or reduction  of the proposed  forfeiture.4  
HBS  does  not  dispute  that  Station  WQQZ(FM)  broadcast   the 
underwriting announcements on the  dates indicated, or that  they 
were impermissibly promotional, as specified in the NAL, but asks 
that we consider the fact that this is its first such violation.5  
HBS also  contends that  it  has implemented  programming  format 
changes that will  prevent the reoccurrence  of such  violations, 
and that such changes will likely ensure material compliance with 
the Commission's underwriting  rules.6  Further, citing  business 
losses, HBS claims that  payment of the  forfeiture would pose  a 
financial hardship.7  

     3.   We find that no mitigation is warranted on the basis of 
HBS's alleged correction of  the violations.  The Commission  has 
long held that  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  In support  of 
its claim that it  is unable to pay,  HBS provides its  financial 
statements for the four recent years, 2000 through 2003.  We have 
reviewed that  information  and find  that  it does  not  warrant 
cancellation or reduction of the  forfeiture amount on the  basis 
of inability to pay.  

     4.   The Commission has determined  that a licensee's  gross 
revenues are the best yardsticks  for determining its ability  to 
pay9 and that  net-loss experience  does not, in  the absence  of 
other mitigating factors, demonstrate  a licensee's inability  to 
pay.10 In this  case, the proposed  forfeiture represents a  very 
modest percentage of HBS's gross revenues averaged over its  four 
most recent tax years, one that is comparable to instances  where 
the forfeiture amounts  were not  reduced on the  basis of  being 
excessive.11   Although   HBS  claims   that  it   has   incurred 
substantial net  losses during  recent years,  we note  that  its 
losses appear to exceed its gross receipts only in 2000 and 2001, 
which, due  to  their  remoteness  in time,  appear  to  be  less 
probative of  its present  ability to  pay than  its more  recent 
years. 12  In this connection, we find it significant that  HBS's 
financial information  from  2002  and  2003  demonstrate  either 
profits or losses that do not exceed gross receipts.13  Moreover, 
apart from providing  its financial statements,  HBS has  neither 
submitted, nor cited to, any other evidence supporting its  claim 
of financial  hardship.14  However,  in recognition  of the  fact 
that HBS  has maintained  heretofore  a good  overall  compliance 
record, we will reduce the forfeiture from $10,000 to $8,000.15    
     5.   Accordingly, IT IS  ORDERED THAT,  pursuant to  section 
503(b) of the Act16, and sections 0.111, 0.311 and 1.80(f)(4)  of 
the Commission's  rules,17 Hispanic  Broadcast System,  Inc.   IS 
LIABLE FOR A MONETARY FORFEITURE in the amount of eight  thousand 
dollars ($8,000)  for  its  willful  and  repeated  broadcast  of 
advertisements  in  violation   of  section   73.503(d)  of   the 
Commission's rules and section 399B of the Act.

     6.   Payment of the  forfeiture must 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.18  
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.   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. 20554.19

     7.        IT IS FURTHER  ORDERED THAT a  copy of this  Order 
shall be  sent by  first class  mail and  certified mail,  return 
receipt requested, to Hispanic  Broadcast System, Inc., P.O.  Box 
1553, Quebradillas, Puerto Rico 00678, and to its counsel,  James 
L. Oyster, Esq., 108 Oyster Lane, Castleton, Virginia 22716-2839.


                         Kris Anne Monteith
                         Acting Chief, Enforcement Bureau


1 47 U.S.C.  399b.

2  47 C.F.R.  73.503(d).                                         

3 Hispanic Broadcast  System, Inc, Notice  of Apparent  Liability 
for Forfeiture, 20 FCC Rcd 2411 (Enf. Bur. 2005).

4 See Petition for Reconsideration of Forfeiture Order  submitted 
by HBS, to the  Chief, Enforcement Bureau,  dated March 9,  2005, 
and supplemented March 21, 2005 (collectively ``Response'').

5 See id.

6 See id. 

7 See id.  In  its response, HBS requested  also, pursuant to  47 
C.F.R.   0.459, that  the Commission  afford confidentiality  to 
certain proprietary financial information included therein.   Id.  
While we have  evaluated and compared  the financial  information 
that HBS  has  provided  against  relevant  Commission  precedent 
concerning alleged inability to pay,  the Order does not  discuss 
that information in  specific terms.  Consequently,  we need  not 
rule on HBS's request  at this time.  Until  we so rule, we  will 
honor  HBS's  request  for  confidential  treatment  of   certain 
internal documents and business information that it has  supplied 
to the Bureau during  the course of  this investigation.  See  47 
C.F.R.  0.459(d)(1); see also NAL , n. 4.

8 See Seawest Yacht Brokers, Notice of Forfeiture, 9 FCC Rcd 6099 
(1994); AT&T Wireless  Services, Inc., Forfeiture  Order, 17  FCC 
Rcd 21866, 21875  (2002); Callais  Cablevision, Inc.,  Forfeiture 
Order, 7 FCC Rcd 22626, 22629 (2002).

9 See PJB  Communications of Virginia,  Inc., Memorandum  Opinion 
and Order, 7 FCC Rcd 2088 (1992) (``PJB Communications''). 

10 See Independent Communications,  Inc., Memorandum Opinion  and 
Order and Forfeiture  Order, 14  FCC Rcd 9605,  9610 (1999);  PJB 
Communications, 7 FCC Rcd at 2089.

11 See  Alpha  Ambulance, Inc.,  Order,  19 FCC  Rcd  2547,  2548 
(2004), citing PJB Communications,  supra (forfeiture not  deemed 
excessive where it represented approximately 2.02 percent of  the 
violator's gross  revenues);  Hoosier  Broadcasting  Corporation, 
Memorandum Opinion and  Order 15  FCC Rcd 8640,  8641 (Enf.  Bur. 
2002) (forfeiture  not  deemed  excessive  where  it  represented 
approximately 7.6  percent  of the  violator's  gross  revenues); 
Local Long Distance, Inc., Order  on Reconsideration, 16 FCC  Rcd 
10023, 10025  (2001) (forfeiture  not deemed  excessive where  it 
represented approximately  7.9 percent  of the  violator's  gross 

12 See Response  at 1,  and associated balance  sheets; see  also 
Maria L. Salazar, Memorandum Opinion  and Order, 19 FCC Rcd  5050 
(2004) (where  recent financial  information showing  profit  was 
deemed more  reliable evidence  of current  ability to  pay  than 
older   information    demonstrating    loss),    petition    for 
reconsideration pending.

13 See id.

14 Cf. Rebus, Inc., Forfeiture Order, 16 FCC Rcd 2964 (Enf.  Bur. 
2001) (reduction from $8,000 to $1,000 warranted due to inability 
to pay where the station's loss of lease, substantial  relocation 
expenses,  and   other  mitigating   circumstances   demonstrated 
financial hardship); Delta  Radio, Memorandum  Opinion and  Order 
and Forfeiture  Order, 13  FCC Rcd  21708 (Mass  Med. Bur.  1998) 
(reduction from $7,500  to $5,000 warranted  due to inability  to 
pay  where  licensee  had  no  assets  or  insurance  to  replace 
transmitter tower lost during a storm).

15 See  47 C.F.R.   1.80(b)(4);  Pittman Broadcasting  Services, 
LLC, Forfeiture Order, 19 FCC Rcd 15320 (Enf. Bur. 2004). 

16 47 U.S.C.  503(b).

17 47 C.F.R.  0.111, 0.311, 1.80(f)(4).

18 47 U.S.C.  504(a).

19 See 47 C.F.R.  1.1914.