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Federal Communications Commission
Washington, D.C. 20554
In the Matter of The L.R. Radio Group, Inc. Licensee of Station KPIR
Granbury, Texas ) ) ) ) ) ) ) File No.: EB-11-DL-0014 NAL/Acct. No.:
201232500004 FRN: 0018390310 Facility ID No.: 30195
MEMORANDUM OPINION AND ORDER
Adopted: January 23, 2014 Released: January 23, 2014
By the Chief, Enforcement Bureau:
1. In this Memorandum Opinion and Order, issued pursuant to Section 405
of the Communications Act of 1934, as amended (Act),^ and Section
1.106 of the Commission's rules (Rules),^ we grant, in part, and deny,
in part, the petition for reconsideration (Petition) ^ filed by The
L.R. Radio Group, Inc. (L&R).^ L&R seeks reconsideration of the
Forfeiture Order issued by the Enforcement Bureau's South Central
Region in this proceeding.^ The Forfeiture Order imposed a monetary
forfeiture in the amount of eight thousand dollars ($8,000) against
L&R for willfully and repeatedly violating Section 73.3526 of the
Rules, by failing to make available a complete public inspection
file.^ Based on L&R's established inability to pay the forfeiture, and
consistent with Commission precedent, we reduce the amount to two
thousand eight hundred seventy five dollars ($2,875).
2. In its Petition, L&R requests reduction or rescission of the
forfeiture based on its inability to pay.^ Specifically, L&R states
that it only owns a stand-alone AM station in a small town and is
operating at a net loss.^ Alternatively, L&R requests to pay the
forfeiture in monthly installments of $500.^
3. Petitions for reconsideration are granted only in limited
circumstances. Reconsideration is appropriate only where the
petitioner either demonstrates a material error or omission in the
underlying order, raises additional facts not known or not existing
until after the petitioner's last opportunity to present such matters,
or the Commission determines that consideration of the facts is
required in the public interest.^ The latter is the case here.
Although L&R could have requested a reduction based on inability to
pay in response to the NAL, because Section 503(b)(2)(E) of the Act^
directs us to consider a violator's ability to pay when determining a
forfeiture penalty, we conclude the public interest requires us to
evaluate L&R's petition at this time.
4. When faced with claims alleging an inability to pay, the Commission
has determined that, in general, gross income or revenues are the best
indicator of an individual or entity's ability to pay a forfeiture.^
Based on the financial documents provided by L&R, we find that there
is a sufficient basis to reduce (but not cancel) the forfeiture to
$2,875.^ We caution L&R, however, that a party's inability to pay is
only one factor in our forfeiture calculation analysis, and is not
dispositive.^ In this regard, we have previously rejected inability to
pay claims in cases of repeated or otherwise egregious violations.^
Therefore, future violations of this kind may result in significantly
higher forfeitures that may not be reduced due to L&R's financial
circumstances. We therefore grant, in part, and deny, in part, L&R's
IV. ORDERING CLAUSES
5. Accordingly, IT IS ORDERED, pursuant to Section 405 of the
Communications Act of 1934, as amended,^ and Section 1.106 of the
Commission's rules,^ that the petition for reconsideration filed by
The L.R. Radio Group, Inc. IS GRANTED IN PART AND DENIED IN PART.
6. IT IS ALSO ORDERED that, pursuant to Section 503(b) of the
Communications Act of 1934, as amended, and Sections 0.111, 0.311, and
1.80(f)(4) of the Commission's rules,^ The L.R. Radio Group, Inc. IS
LIABLE FOR A MONETARY FORFEITURE in the amount of two thousand eight
hundred seventy five dollars ($2,875) for violations of Section
73.3526 of the Act.^
7. Payment of the forfeiture shall be made in the manner provided for in
Section 1.80 of the Rules within thirty (30) calendar days after the
release date of this Memorandum Opinion and Order.^ If the forfeiture
is not paid within the period specified, the case may be referred to
the U.S. Department of Justice for enforcement of the forfeiture
pursuant to Section 504(a) of the Act.^ The L.R. Radio Group, Inc.
shall send electronic notification of payment to SCR-Response@fcc.gov
on the date said payment is made. The payment must be made by check or
similar instrument, wire transfer, or credit card, and must include
the NAL/Account Number and FRN referenced above. Regardless of the
form of payment, a completed FCC Form 159 (Remittance Advice) must be
submitted.^ When completing the FCC Form 159, enter the Account Number
in block number 23A (call sign/other ID) and enter the letters "FORF"
in block number 24A (payment type code). Below are additional
instructions you should follow based on the form of payment you
* Payment by check or money order must be made payable to the order of
the Federal Communications Commission. Such payments (along with the
completed Form 159) must be mailed to Federal Communications
Commission, P.O. Box 979088, St. Louis, MO 63197-9000, or sent
via overnight mail to U.S. Bank - Government Lockbox #979088,
SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101.
* Payment by wire transfer must be made to ABA Number 021030004,
receiving bank TREAS/NYC, and Account Number 27000001. To complete
the wire transfer and ensure appropriate crediting of the wired funds,
a completed Form 159 must be faxed to U.S. Bank at (314) 418-4232 on
the same business day the wire transfer is initiated.
* Payment by credit card must be made by providing the required credit
card information on FCC Form 159 and signing and dating the Form 159
to authorize the credit card payment. The completed Form 159 must then
be mailed to Federal Communications Commission, P.O. Box 979088, St.
Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank -
Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St.
Louis, MO 63101.
8. Any request for making full payment over time under an installment
plan should be sent to: Chief Financial Officer--Financial
Operations, Federal Communications Commission, 445 12th Street, S.W.,
Room 1-A625, Washington, D.C. 20554.^ If you have questions
regarding payment procedures, please contact the Financial Operations
Group Help Desk by phone, 1-877-480-3201, or by e-mail,
9. IT IS FURTHER ORDERED that this Memorandum Opinion and Order shall be
sent by both First Class Mail and Certified Mail, Return Receipt
Requested, to The L.R. Radio Group, Inc.at 1620 Weatherford Highway,
Granbury, Texas 76048 and to its counsel, Anne Goodwin Crump,
Fletcher, Heald & Hildreth, 1300 North 17^th Street, 11^th Floor,
Arlington, VA 22209.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
^ 47 U.S.C. S 405.
^ 47 C.F.R. S 1.106.
^ See Letter from Anne Goodwin Crump, Counsel for The L.R. Radio Group,
Inc., to Federal Communications Commissioner (Oct. 26, 2012) (on file in
^ See The L.R. Radio Group, Inc., Forfeiture Order, 27 FCC Rcd 11260 (Enf.
Bur. 2012) (Forfeiture Order), aff'g, Notice of Apparent Liability, 27 FCC
Rcd 977 (Enf. Bur. 2012) (NAL).
^ 47 C.F.R. S 73.3526.
^ See Petition, supra note 3.
^ Id. at 1-2.
^ Id. at 2.
^ See 47 C.F.R. S 1.106(c); EZ Sacramento, Inc., Memorandum Opinion and
Order, 15 FCC Rcd 18257, 18257, para. 2 (Enf. Bur. 2000) (citing WWIZ,
Inc., Memorandum Opinion and Order, 37 FCC 685, 686 (1964), aff'd sub.
nom. Lorain Journal Co. v. FCC, 351 F.2d 824 (D.C. Cir. 1965), cert.
denied, 383 U.S. 967 (1966)). See, e.g., Ely Radio, LLC, Memorandum
Opinion and Order, 27 FCC Rcd 7608, 7610, para. 6 (Enf. Bur. 2012)
(providing standard of review for petitions for reconsideration).
^ 47 U.S.C. S 503(b)(2)(E); see also 47 C.F.R. S 1.80(b)(8).
^ See Local Long Distance, Inc., Forfeiture Order, 16 FCC Rcd 24385 (Enf.
Bur. 2000) (forfeiture not deemed excessive where it represented
approximately 7.9 percent of the violator's gross revenues); Hoosier
Broad. Corp., Forfeiture Order, 15 FCC Rcd 8640 (Enf. Bur. 2002)
(forfeiture not deemed excessive where it represented approximately 7.6
percent of the violator's gross revenues).
^ This forfeiture amount falls within the percentage range that the
Commission has previously found acceptable. See supra para. 4, note 11. If
L&R finds it financially infeasible to make full payment of this amount
within 30 days, it can request an installment plan, as described in
paragraph 8, infra, of this Memorandum Opinion and Order.
^ See 47 U.S.C. S 503(b)(2)(E) (requiring Commission to 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 such other matters as justice may require).
^ See, e.g., Whisler Fleurinor, Forfeiture Order, 28 FCC Rcd 1087 (Enf.
Bur. 2013) (affirming $25,000 forfeiture and rejecting inability to pay
claim because violator was previously afforded a reduction based on
inability to pay, but later committed the same violation). Accord Kevin W.
Bondy, Forfeiture Order, 26 FCC Rcd 7840 (Enf. Bur. 2011) (holding that
violator's repeated acts of malicious and intentional interference
outweigh evidence concerning his ability to pay claim), aff'd, Memorandum
Opinion and Order, 28 FCC Rcd 1170 (Enf. Bur. 2013) aff'd File No.
EB-09-LA-0026, Memorandum Opinion and Order, DA 13-2411, 2013 WL 6705802
(Enf. Bur. Dec. 19, 2013); Hodson Broadcasting Corp., Forfeiture Order, 24
FCC Rcd 13699 (Enf. Bur. 2009) (holding that permittee's continued
unauthorized operation outweighed its inability to pay claim).
^ See 47 U.S.C. S 405.
^ See 47 C.F.R. S 1.106.
^ 47 U.S.C. S 503(b); 47 C.F.R. SS 0.111, 0.311, 1.80(f)(4).
^ 47 C.F.R. S 73.3526.
^ 47 C.F.R. S 1.80.
^ 47 U.S.C. S 504(a).
^ An FCC Form 159 and detailed instructions for completing the form may be
obtained at http://www.fcc.gov/Forms/Form159/159.pdf.
^ See 47 C.F.R. S 1.1914.
Federal Communications Commission DA 14-74
Federal Communications Commission DA 14-74