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

In the Matter of                 )
K.I.D.S. - TV6                   )    File No. 99100489
                                )    NAL/Acct. No. 20013208005
Licensee of Low Power            )    Facility #63149
Television Station               )    JWS
K06MU, Big Bear Lake,            )


   Adopted:  October 18, 2000           Released:   October   20, 

By the Chief, Enforcement Bureau:

                        I.   INTRODUCTION

     1.   In this Notice of Apparent Liability for Forfeiture, we 
find that  K.I.D.S.  -  TV6, licensee  of  low  power  television 
station K06MU, Big Bear Lake, California, has apparently violated 
Section 310(d)  of the  Communications Act  of 1934,  as  amended 
(``Act''), 47  U.S.C.   310(d), and  Section 73.3540(a)  of  the 
Commission's rules, 47  C.F.R.  73.3540(a),  by transferring  de 
facto control  of  the  K06MU  license  without  obtaining  prior 
Commission  approval.   We  conclude  that  K.I.D.S.  -  TV6   is 
apparently  liable  for   an  eight   thousand  dollar   ($8,000) 

                         II.  BACKGROUND

     2.   The Enforcement  Bureau received  a complaint  alleging 
that K.I.D.S.  -  TV6 had  sold  the license  for  K06MU  without 
obtaining Commission approval.  As a result of that complaint, on 
January  31,  2000,  the   Chief,  Investigations  and   Hearings 
Division, sent a letter of  inquiry to K.I.D.S. - TV6.   Although 
K.I.D.S. - TV6  did not respond  to the letter  of inquiry,  Bear 
Valley  Broadcasting,  Inc.   (``Bear  Valley''),  the   proposed 
assignee of  the K06MU  license, filed  a response  on March  23, 
2000.  The staff then sent  two additional letters of inquiry  to 
Bear Valley.

     3.   The staff's  investigation revealed  that on  September 
17, 1999,  K.I.D.S.  -  TV61  and Bear  Valley  entered  into  an 
agreement to sell  the K06MU  license and  station facilities  to 
Bear Valley.  On September 19,  1999, those parties also  entered 
into an  ``Interim  Management  Agreement.''   The  term  of  the 
agreement was through November 30, 1999, but Bear Valley has  the 
right to  ``extend the  term for  such time  as is  necessary  to 
obtain the approval'' for the  assignment of the license to  Bear 
Valley.  Under  the agreement,  Bear Valley  acquired ``full  and 
complete power and exclusive authority  to conduct, on behalf  of 
[the licensee], all  business operations and  transactions on  or 
pertaining to''  K06MU.  The  agreement also  provided that  Bear 
Valley (1) receives all  monies derived from station  operations, 
except for  certain  insurance benefits,  (2)  has the  right  to 
establish all policies for the television station, (3) can employ 
personnel for  the operation  of the  station, and  (4) can  make 
whatever changes to the station's  property or equipment that  it 
deems appropriate.  Bear Valley also assumed any loss that  might 
result  from  the  station's  operation  during  the   management 
agreement.  K.I.D.S. - TV6 may terminate the management agreement 
only if  Bear  Valley  files  for  bankruptcy  or  is  placed  in 
receivership,  or  if  Bear  Valley  defaults  on  any   material 
provision of the agreement, and  the default is not cured  within 
60 days or such longer period as is reasonable.

     4.   Bear Valley states that under the management agreement, 
its principal Robert Cartwright controls the station's  financial 
records and  books, pays  the station's  operating expenses,  and 
establishes the station's  management.  Mr.  Cartwright and  Bear 
Valley principal  Jacque P.  Montero  interview, hire,  and  fire 
station personnel, establish station management, and maintain the 
programming format (which is the  same format used by K.I.D.S.  - 
TV6).  Bear  Valley  pays a  contract  engineer to  maintain  the 
station's facilities.

     5.   On December 22,  1999, Chuck Foster,  the principal  of 
K.I.D.S. -  TV6, pled  guilty  in the  Superior Court,  State  of 
California, County of  San Bernardino,  to a  criminal charge  of 
felony insurance fraud.   See People  v. Chuck  Foster, Case  No. 
FVI009947.  Mr.  Foster was  incarcerated  in state  prison.   On 
February 9, 2000, Mr. Foster was sentenced to two years in prison 
(with credit for time previously served). Bear Valley  represents 
that prior to Mr. Foster's incarceration, Mr. Cartwright and  Mr. 
Foster discussed  the  station's  operations on  almost  a  daily 
basis.  As  of June  22, 2000,  Mr. Cartwright  had not  received 
permission to  visit  Mr. Foster  in  prison, although  they  had 
spoken on the telephone ``on  a number of occasions.''  See  Bear 
Valley June 23, 2000 Response to Letter of Inquiry, Response 3.

     6.   K.I.D.S. - TV6 and Bear Valley filed an application for 
the Commission's  consent to  assign the  K06MU license  to  Bear 
Valley on January  12, 2000 (File  No. BALTVL-20000112ABO).  That 
application remains pending.

                      III.      DISCUSSION

     7.        Section 310(d) of  the Act  provides in  pertinent 

     No . .  . station  license, or  any rights  thereunder, 
     shall be transferred, assigned,  or disposed of in  any 
     manner,  voluntarily  or  involuntarily,  directly   or 
     indirectly,  or   by  transfer   of  control   of   any 
     corporation holding such permit license, to any  person 
     except upon  application  to the  Commission  and  upon 
     finding by  the Commission  that the  public  interest, 
     convenience, and necessity will be served thereby.

Similarly, Section  73.3540(a)  of  the  Commission's  rules,  47 
C.F.R.  73.3540(a), provides, ``Prior consent of the FCC must be 
obtained for a voluntary assignment or transfer of control.''

     8.   We traditionally look beyond the legal title to whether 
a new entity or  individual has obtained  the right to  determine 
the basic  operating  policies  of the  station  in  ascertaining 
whether a transfer of control  has occurred.  See WHDH, Inc.,  17 
FCC 2d 856 (1969) aff'd sub nom. Greater Boston Television  Corp. 
v. FCC, 444 F.2d 841 (D.C. Cir. 1970) cert. denied, 403 U.S.  923 
(1971).  Specifically,  we  look  to  three  essential  areas  of 
station operation:  programming,  personnel and  finances.   See, 
e.g., Stereo  Broadcasters, Inc.,  87 FCC  2d 87  (1981),  recon. 
denied, 50 RR 2d  1346 (1982).  A  licensee may delegate  certain 
functions on a day-to-day basis to an agent or employee, but such 
delegation cannot  be  wholesale.   See,  e.g.,  Southwest  Texas 
Public Broadcasting Council, 85 FCC 2d 713, 715 (1981).  That is, 
those persons assigned a task must  be guided by policies set  by 
the permittee or licensee.  See David A. Davila, 6 FCC Rcd  2897, 
2899 (1991).  Moreover, the standards by which we measure control 
are equally applicable to situations involving ``time brokerage'' 
or ``management agreements.''  Choctaw Broadcasting  Corporation, 
12 FCC Rcd 8534, 8538 (1997).

     9.   In  this  case,   K.I.D.S.  -  TV6   appears  to   have 
transferred  de  facto  control   of  the  station  through   the 
management  agreement  with  Bear  Valley.   The  terms  of   the 
management agreement and the actual  conduct of the parties  show 
that Bear Valley has actually set station policies, as opposed to 
simply managing the station under Mr. Foster's direction.   Under 
the agreement,  Bear Valley  has ``full  and complete  power  and 
exclusive authority''  to operate  the station.   Moreover,  Bear 
Valley assumed  all  of the  financial  risks and  the  financial 
benefits from the operation of the station.  All of the station's 
employees are Bear  Valley's employees, and  Bear Valley has  the 
exclusive right to set personnel  policies for the station.   Mr. 
Foster appears to have no current role in the station's operation 
because he  is  incarcerated.  Under  these  circumstances,  Bear 
Valley appears  to have  acquired ultimate  control over  station 
operations without prior Commission approval.

     10.  Section 503(b) of the  Communications Act, 47 U.S.C.   
503(b), and Section 1.80(a) of the Commission's rules, 47  C.F.R. 
 1.80(a), each state that any person who willfully or repeatedly 
fails to comply with the provisions of the Communications Act  or 
the Commission's rules shall be liable for a forfeiture  penalty.  
For purposes of  Section 503(b)  of the  Communications Act,  the 
term ``willful'' means that the  violator knew it was taking  the 
action in question,  irrespective of  any intent  to violate  the 
Commission's rules.  See Southern California Broadcasting Co.,  6 
FCC Rcd  4387  (1991).  Furthermore, a  continuing  violation  is 
``repeated'' if it lasts  more than one day.   Id., 6 FCC Rcd  at 

     11.  The Commission's  Forfeiture  Policy Statement  sets  a 
base forfeiture amount of $8,000 for an unauthorized  substantial 
transfer  of   control.   The   Commission's  Forfeiture   Policy 
Statement and  Amendment  of  Section 1.80  of  the  Commission's 
Rules, 12 FCC Rcd 17087, 17113  (1997), recon. denied 15 FCC  Rcd 
303 (1999).  Currently,  there is  nothing before  us to  suggest 
that  the  base   amount  should  be   increased  or   decreased.  
Accordingly, we believe that a forfeiture of $8,000 forfeiture is 

                      IV.  ORDERING CLAUSES

     12.  ACCORDINGLY, IT IS ORDERED  pursuant to Section  503(b) 
of the  Communications  Act of  1934,  as amended,  47  U.S.C.   
503(b), and Sections  0.111, 0.311 and  1.80 of the  Commission's 
rules, 47 C.F.R.  0.111, 0.311 and 1.80, that K.I.D.S. - TV6 is 
amount of  eight  thousand  dollars ($8,000)  for  willfully  and 
repeatedly violating Section 310(d) of the Communications Act  of 
1934, as  amended  (``Act''), 47  U.S.C.   310(d),  and  Section 
73.3540(a) of the Commission's rules, 47 C.F.R.  73.3540(a).

     13.  IT IS FURTHER ORDERED, pursuant to Section 1.80 of  the 
Commission's rules, that  within thirty  days of  the release  of 
this Notice, K.I.D.S. -  TV6 SHALL PAY to  the United States  the 
full amount of the  proposed forfeiture or  SHALL FILE a  written 
statement seeking  reduction  or  cancellation  of  the  proposed 

     14.   Payment of the forfeiture  may be made by credit  card 
through the  Commission's Credit  and Debt  Management Center  at 
(202) 418-1995  or  by mailing  a  check or  similar  instrument, 
payable to the order of the Federal Communications Commission, to 
the  Forfeiture  Collection  Section,  Finance  Branch,   Federal 
Communications Commission,  P.O.  Box  73482,  Chicago,  Illinois 
60673-7482.  The payment should note the NAL/Acct. No. referenced 

     15.   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  (``GAAP''); 
or (3)  some  other  reliable and  objective  documentation  that 
accurately reflects  the petitioner's  current financial  status.  
Any claim  of inability  to pay  must specifically  identify  the 
basis for the claim by  reference to the financial  documentation 

     16.   Requests for payment of the full amount of this Notice 
of Apparent Liability  under an installment  plan should be  sent 
to: Chief, Credit  and Debt Management  Center, 445 12th  Street, 
S.W., Washington, D.C. 20554.  See 47 C.F.R.  1.1914.

     17.   The response,  if any,  must be mailed  to Charles  W. 
Kelley, Chief, Investigations and Hearings Division,  Enforcement 
Bureau, Federal Communications Commission, 445 12th Street,  S.W, 
Room 3-B443, Washington DC 20554 and MUST INCLUDE the file number 
listed above.

     18.   IT IS FURTHER ORDERED that a copy of this Notice shall 
be sent, by Certified Mail/Return Receipt Requested, to  K.I.D.S. 
- TV6, 41506 Big Bear Boulevard, Big Bear Lake, California 92315.


          David H. Solomon
          Chief, Enforcement Bureau

1  The seller was originally named ``American Sports Kids 
Association.'' The agreement was later amended to substitute 
K.I.D.S. - TV6 as the seller.