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



In the Matter of                )       
                                )       
Palouse Country, Inc.           )       File No. EB-01-ST-014
Licensee of KMAX (AM)           )       
Colfax, Washington              )       NAL/Acct.             No. 

200132980002
                                )


           NOTICE OF APPARENT LIABILITY FOR FORFEITURE



                                        Released: August 30, 2001 

By the District Director, Seattle Office, Enforcement Bureau:


                        I.   INTRODUCTION

     1.                          In  this   Notice  of   Apparent 
Liability for Forfeiture ("NAL"),  we find that Palouse  Country, 
Inc., licensee of  radio broadcast station  KMAX (AM) in  Colfax, 
Washington  has  apparently  violated   Section  503(b)  of   the 
Communications  Act  of  1934,  as  amended  (``Act'')1  and  has 
apparently   willfully   and    repeatedly   violated    Sections 
73.1400(a)(1)(ii), 73.1560(a), 73.1580, and 73.1870(c)(3) of  the 
Commission's Rules2  by operating  the station  without  required 
monitors, operating in  non-compliance with  the station  license 
regarding power, failing to perform periodic complete inspections 
of the transmitting system,  and failing to provide  verification 
that the station has been operating  as required by the Rules  or 
the station  authorization with  appropriate log  entries in  the 
station log. We conclude that Palouse Country, Inc. is apparently 
liable for  forfeiture  in the  amount  of ten  thousand  dollars 
($10,000).


                         II.  BACKGROUND

     2.   On January 12, 2001, the Commission's Seattle  District 
Office received  a case  referral from  the Enforcement  Bureau's 
Technical and  Public  Safety  Division  requesting  the  Seattle 
office investigate a complaint that  KMAX was not reducing  power 
at night as required.  Station KMAX is authorized to operate with 
nominal day-time  power of  10,000 watts  and nominal  night-time 
power of  280  watts.3   Station  KMAX's  license  specifies  the 
average hours of sunrise and sunset for January as 7:30 a.m.  and 
4:30 p.m., respectively.

     3.   On January 17 and 18,  2001, an agent from the  Seattle 

Field Office monitored  the on-air  signal of KMAX  radio on  the 

frequency of 840 KHz near Colfax, Washington.  During the  period 

of approximately  3:45  p.m. on  January  17th to  8:30  a.m.  on 

January 18th,  no power  level changes  occurred.  At  all  times 

throughout the monitoring period, the field strength measurements 

taken by the Seattle Field  Office agent indicated that KMAX  was 

operating with an output power of approximately three times  that 

authorized.  Between 4:30 p.m. on  January 17th and 7:30 a.m.  on 

January 18th, when night-time operation at 280 watts was required 

by  the   station   authorization,  KMAX   was   operating   with 

approximately 790 watts  of power.  Operation  with 790 watts  is 

the equivalent of 282% of the authorized 280 watts.

     4.   On January 18,  2001, at approximately  9:00 a.m.,  the 

Seattle agent  performed  a  broadcast  inspection  of  the  KMAX 

broadcast station at 840 Fairview Road, Colfax, Washington.   The 

only station  logs available  for inspection  were EAS  logs  and 

program logs.  The  program logs  provided for  a checkmark  when 

power levels were changed.   There were no checkmarks  indicating 

power level changes on either January 17 or January 18, 2001.  To 

the extent any  power level  changes were made,  the station  log 

indicated the station  used April's sunrise  and sunset  schedule 

rather than January's.

     5.   The inspection also  revealed that  the remote  control 

system did not provide meter readings of the transmitter  system.  

It was  determined the  remote control  portions of  the  control 

equipment were  not  hooked  up.  The  high/low  power  switching 

system did function correctly.   However, during the  inspection, 

the requisite metering capability was not available to  determine 

the transmitter's output power by the direct method.  The station 

operator, Mr. Rob Hauser, requested that the FCC let the  station 

engineer, Mr.  Steve  Franko,  make  power  measurements  of  the 

transmitter and file a written report to the Seattle office.   On 

January 24, 2001, the Seattle Field Office received a report from 

Mr. Franko  stating  that tests  conducted  on January  22,  2001 

indicated  that  at  the  low  (night-time)  power  setting   the 

transmitter was operating at 790 watts.  

     6.   On March 1,  2001, the Seattle  Field Office issued  an 

Official Notice of Violation (NOV) to broadcast station KMAX (AM) 

for operating the station day and  night with an output power  of 

approximately  790  watts,  failing  to  provide  remote  control 

metering of the transmission  system, failing to maintain  weekly 

verification of proper station operation, and failing to maintain 

a station log.

     7.   On April 2, 2001, the  Seattle Field Office received  a 

response to  the  NOV from  Palouse  Country, Inc.,  licensee  of 

station KMAX (AM), dated March 28, 2001.  In the response letter, 

Mr. Robert  Hauser, President  of Palouse  Country, Inc.,  stated 

that the Mosley remote control unit was now installed, that  KMAX 

now conducted regular inspections of it's transmission system and 

all required monitors  to ensure proper  station operation,  that 

KMAX now  maintained the  proper station  operating log  and  the 

chief operator was instructed to make the requisite weekly review 

to ensure checks and inspections are done.


                      III.      DISCUSSION


     8.   Section 503(b) of the Act provides that any person  who 

willfully or repeatedly  fails to comply  substantially with  the 

terms and conditions of any license, or fails to comply with  any 

of the provisions of the Act or of any rule, regulation or  order 

issued by  the  Commission  thereunder, shall  be  liable  for  a 

forfeiture penalty.   The term  ``willful''  as used  in  Section 

503(b) has  been interpreted  to  mean simply  that the  acts  or 

omissions are committed knowingly. 4  It is not pertinent whether 

or not the licensee's  act or omissions  are intended to  violate 

the law. 

     9.   The Commission's  Rules  state that  each  licensee  is 

responsible for maintaining and  operating its broadcast  station 

in a  manner  which complies  with  the technical  rules  and  in 

accordance with the terms of the station license.5 Remote control 

systems  must  provide  sufficient  transmission  monitoring  and 

control capability  to  ensure  compliance with  the  rules.6  AM 

stations are required to maintain antenna input power as near  as 

practicable to the authorized antenna input power.7 In  addition, 

licensees must  conduct  periodic  complete  inspections  of  the 

transmitting systems and all  required monitors to ensure  proper 

station operation,8 and must review station records at least once 

a week to determine if required entries are being made  correctly 

and verify that the station has been operating as required by the 

Commission's rules and the station's authorization.9

     10.  Based on  the  evidence  before us,  we  find  that  on 

January 17  and  18, 2001,  Palouse  Country, Inc.,  licensee  of 

station KMAX  (AM)  willfully and  repeatedly  violated  Sections 

73.1350(a), 73.1400(a)(1)(ii), and 73.1560(a) of the Commission's 

Rules when  it operated  station  KMAX(AM) with  excessive  power 

during the  night  time  mode in  contravention  of  its  station 

authorization and  failed to  connect remote  control systems  to 

provide transmitter  monitoring capability  to ensure  compliance 

with the  station authorization.   We further  find that  Palouse 

Country, Inc., willfully and repeatedly violated section  73.1580 

and 73.1870(c)(3) of  the Commission's  Rules by  its failure  to 

conduct required inspections of  the transmitting and  monitoring 

sytems to ensure proper station  operation and failure to  review 

station records  and verify  that the  station was  operating  as 

required by the Commission's Rules and station authorization.  

     11.  The  Commission's  Forfeiture   Policy  Statement   and 

Amendment of  Section  1.80  of  the  Rules  to  Incorporate  the 

Forfeiture Guidelines  (``Forfeiture Policy  Statement''),10  set 

base forfeiture  amounts of  $4,000 for  exceeding power  limits, 

$3,000  for  violation  of   transmitter  control  and   metering 

requirements, $2,000 for failure to make required measurements or 

conduct required monitoring, and  $1,000 for failure to  maintain 

required records.  In assessing  the monetary forfeiture  amount, 

we must also take into account the statutory factors set forth in 

Section 503(b)(2)(D)  of  the  Act,  which  include  the  nature, 

circumstances, extent, and gravity of the violation(s), 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.11  Applying the Forfeiture Policy  Statement 

and statutory factors to the  instant case, a $10,000  forfeiture 

is warranted.

                      IV.  ORDERING CLAUSES

     12.  Accordingly, IT IS  ORDERED THAT,  pursuant to  Section 

503(b) of the  Act12 and Sections  0.111, 0.311 and  1.80 of  the 

Rules,13 Palouse  Country,  Inc.,  is hereby  NOTIFIED  of  their 

APPARENT LIABILITY FOR A FORFEITURE in the amount of ten thousand 

dollars  ($10,000)  for   violating  Section   73.1400(a)(1)(ii), 

73.1560(a), 73.1580, and 73.1870(c)(3) of the Rules.14

     13.  IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of 

the Commission's Rules, within thirty days of the release date of 

this NOTICE OF APPARENT  LIABILITY, Palouse Country, Inc.,  SHALL 

PAY the full amount  of the proposed forfeiture  or SHALL FILE  a 

written  statement  seeking  reduction  or  cancellation  of  the 

proposed forfeiture.

     14.  Payment of  the forfeiture  may be  made 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. 200132980002.

     15.  Any response  to this  NAL must  be mailed  to  Federal 

Communications  Commission,  Enforcement  Bureau,  Technical  and 

Public Safety Division, 445  12th Street, S.W., Washington,  D.C. 

20554 and MUST INCLUDE THE NAL/Acct. No. 200132980002.

     16.  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 

submitted.

     17.  Requests for payment of the full amount of this  Notice 

of Apparent Liability  under an installment  plan should be  sent 

to: Chief,  Revenue and  Receivable  Operations Group,  445  12th 

Street, S.W., Washington, D.C. 20554.15

     18.  IT IS FURTHER  ORDERED THAT  a copy of  this NOTICE  OF 

APPARENT LIABILITY shall be sent by Certified Mail Return Receipt 

Requested to Palouse  Country, Inc., 840  Fairview Road,  P.O.Box 

710, Colfax, Washington, 99111
                                        

                                FEDERAL COMMUNICATIONS COMMISSION




                                Dennis J. Anderson
                                District Director
                                Seattle Office    

_________________________

1 47 U.S.C.  503(b).
2 47 C.F.R.  73.1400(a)(1)(ii), 73.1560(a), 73.1580, and 
73.1870(c)(3).
3 Palouse Country, Inc., Station KMAX(AM) License File No. BL-
980803AC, granted November 9, 1998.
4 Section 312(f)(1) of the Act, 47 U.S.C.  312(f)(1), which 
applies to Section 503(b) of the Act, provides that ``[t]he term 
`willful', when used with reference to the commission or omission 
of any act, means the conscious and deliberate commission or 
omission of such act, irrespective of any intent to violate any 
provision of this Act ....''  See Southern California 
Broadcasting Co., 6 FCC Rcd 4387 (1991). 
5 47 C.F.R.  73.1350(a).
6 47 C.F.R.  73.1400(a)(1)(ii).
7 47 C.F.R.  73.1560(a).
8 47 C.F.R.  73.1580.
9 47 C.F.R.  73.1870(c)(3).
10 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) (``Forfeiture Policy Statement'').
11 47 U.S.C.  503(b)(2)(D). 
1247 U.S.C.  503(b). 
13 47 C.F.R.  0.111, 0.311, 1.80.
14 47 C.F.R.  73.1400(a)(1)(ii), 73.1560(a), 73.1580, and 
73.1870(c)(3).
15 See 47 C.F.R.  1.1914.