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Federal Communications Commission
Washington, D.C. 20554
In the Matter of ) File Number EB-03-KC-131
The Moody Bible Institute of ) NAL/Acct. No. 200432560002
Licensee of FM Broadcast Station ) FRN 0006-7913-54
KMDY, Keokuk, Iowa )
NOTICE OF APPARENT LIABILITY FOR FORFEITURE
By the Enforcement Bureau, Kansas City Office:
1. In this Notice of Apparent Liability for
Forfeiture (``NAL''), we find The Moody Bible Institute of
Chicago (``Moody''), licensee of radio station KMDY, Keokuk,
Iowa, apparently liable for a forfeiture in the amount of
ten thousand dollars ($10,000.00) for willful and repeated
violation of Section 73.1125(a) of the Commission's Rules
(``Rules'') and willful violation of Section 73.3527(c) of
the Rules.1 Specifically, we find The Moody Bible Institute
of Chicago apparently liable for failing to maintain full
time management presence at its main studio and failing to
make available a complete public inspection file.
2. On June 23, 2003, an agent from the FCC,
Enforcement Bureau, Kansas City Office (``Kansas City
Office''), inspected the main studio of FM broadcast radio
station KMDY, Keokuk, Iowa. The only station personnel
present and on duty at the time the inspection began was Ms.
Shirley Brobston, secretary. The station manager, Al
Miller, was not on duty at the time the inspection began.
Ms. Brobston telephoned Mr. Miller at home. Mr. Miller
arrived at the station after the inspection had begun. Mr.
Miller stated he had been off-duty at home. During the
inspection, station personnel could not produce a station
license, current station ownership report or copy of the
public and broadcasting procedural manual. The most current
ownership report in the public file was dated August 24,
1998. In addition, the issues-programs listing, dated April
1, 2003, did not contain all required elements, namely, the
document did not contain the duration of the programming, a
description of what was aired, or the time it was aired.
3. On July 15, 2003, the Kansas City Office issued a
Letter of Inquiry (``LOI'') to Moody to obtain additional
information pertaining to the EAS, chief operator, main
studio and public file violations detected during the
4. On August 29, 2003, Moody submitted a reply to the
LOI. The reply stated the studio is open to the public
Monday through Friday from 9am to 5pm. The letter stated
that at the time of inspection, the staff at KMDY consisted
of Al Miller, full time station manager, a full time
secretary (who is also the full time church secretary), Tim
Pfeifer, contract engineer, and six part time
clerical/secretary volunteers. The reply stated that a new
full time station manager and chief engineer had been hired
since the time of inspection. Concerning the public file,
the reply stated the public file was located in the main
studio and that it was complete. However, the response
later stated that the station license had not been forwarded
to KMDY from its Chicago headquarters and was not in the
file at the time of inspection. The reply included a copy
of the latest ownership report, dated January 30, 2003, and
a copy of the second quarter issues-programs listing. The
issues-programs listing did not include the time the
programs aired. The reply made no mention of the Public and
Broadcasting procedural manual that was not available at the
time of inspection.
5. On September 4, 2003, the Kansas City Office
issued a second LOI to Moody to clarify certain issues
pertaining to the EAS, chief operator, main studio and
public file violations and subsequent responses by the
6. On October 3, 2003, Moody submitted a response to
the second LOI. Concerning the main studio staffing, the
response stated that station manager Al Miller averaged 10-
15 hours per week between the transmitter site and studio on
behalf of KMDY, and about 10-15 hours each week on call
outside the studio, 7 days a week. The reply further stated
that the station secretary Shirley Brobston worked 30 hours
per week at the studio. The reply stated that both Mr.
Miller and Ms. Brobston were unpaid volunteers. Concerning
the chief operator, the reply indicated Tim Pfeifer had
worked an average of 2-3 hours per week during the 12 weeks
prior to the inspection. However, in another section of the
letter, the reply stated that Mr. Pfeifer was chief operator
until January 2003 at which time Al Miller took over those
duties. Concerning the public file, the response stated
that Moody could not explain why the current ownership
report was not located in the public file folder labeled
ownership reports. The reply stated the issues-programs
listing inadvertently omitted the information on the time of
day of the broadcasts listed.
7. In addition to the written response provided by
Moody to the second LOI, the licensee provided requested
documentation pertaining to training and instruction given
to Al Miller concerning his duties. This information
included an email dated January 12, 2001 from Mr. David P.
Woodworth, Moody, and a set of guidelines dated January 2001
from Moody attorney Jeff Southmayd. These documents stated
the office should be staffed for a standard 40 hour week,
Monday through Friday, and that such staffing should include
``at least one management-type person and one staff-type
person on duty during regular office hours.'' The
documentation further recommended ``a minimum of two
management type people'' and that they should try to locate
two other management type volunteers. The guidelines stated
that the station authorization should be readily available
at the primary transmitter control point. Item 11 of the
guidelines, under the title ``Public File'' it states: The
Public File .... should be organized... and should contain:
... c) Ownership Report: ... f) The Public and Broadcasting
- A Procedural Manual.... G) Quarterly Issues/programs
Lists: Every three months beginning January 10 each year for
the preceding calendar quarter, list the programs along with
the time, date and duration of each program on community
issues given significant treatment.''
8. Section 73.1125(a) of the Rules states that each
AM, FM, or TV broadcast station shall maintain a studio at
one of the following locations: (1) within the station's
community of license; (2) at any location within the
principal community contour of any AM, FM, or TV broadcast
station licensed to the station's community of license; or
(3) within twenty-five miles from the reference coordinates
of the center of its community of license as described in
§73.208(a)(1). In adopting the main studio rules, the
Commission stated that the station's main studio must have
the capability to serve the needs and interests of the
residents of the station's community of license.2 To
fulfill this function, a station must, among other things,
maintain a meaningful presence at its main studio.3 The
Commission has defined a minimally acceptable ``meaningful
presence'' as full-time managerial and full-time staff
personnel.4 The licensee need not have the same staff
person and manager at the studio, as long as there was
management and staff presence there during normal business
hours.5 Although management personnel need not be ``chained
to their desks'' during normal business hours, they must
``report at the main studio on a daily basis, spend a
substantial amount of time there and ... use the studio as a
home base.''6 Station KMDY broadcasts 24 hours a day, 7
days a week with audio provided via satellite from the Moody
Bible Network. On June 23, 2003, and the 12 week period
prior to that date, the licensee maintained one volunteer
manager who worked an average of 10-15 hours per week
between the studio and transmitter site and on call an
additional 10-15 hours on average, 7 days a week. At the
time the inspection began, the manager was off-duty at his
home. The station's secretary, who also serves as the
church secretary, was the only station personnel present.
In addition to the manager and secretary, the licensee
stated Tim Pfeifer was the KMDY chief operator. While a
chief operator may be considered management personnel,
statements by the licensee and station manager indicate Mr.
Pfeifer had not worked for the station for several months
prior to the inspection. While the licensee did maintain
sufficient administrative staff to fulfill the full time
obligation, Moody did not provide a full time management
presence during the hours the studio was open to the public.
According to documentation provided in response to the
second LOI, Moody was aware of the requirement to maintain a
full time managerial presence. Moody communicated this
guidance to KMDY management in January 2001. Therefore, the
violation was willful. In addition, this violation occurred
for at least 12 weeks prior to the inspection; therefore,
the violation is repeated/continuous.
9. Section 73.3527(a) of the Rules7 requires non-
commercial FM broadcast stations to maintain for public
inspection a file containing the material specified in
paragraphs (e)(1) through (e)(11) of the same section.
Section 73.3527(c) of the Rules requires the licensee to
make the public file available for public inspection any
time during regular business hours. On June 23, 2003,
during regular business hours, Moody failed to make
available a complete file for public inspection. The
station's manager could not find the station license,
current ownership report, the Public and Broadcasting
Procedural Manual, or a complete issues-programs listing.
The licensee admitted the license was not in the file and
could not explain why the current ownership report was not
in the file folder labeled for ownership reports. Though
Moody states some documents may have been physically in or
near the file at the time of inspection, the station manager
could not find the missing documents.
10. Based on the evidence before us, we find Moody
willfully8 and repeatedly9 violated Section 73.1125(a) of
the Rules by failing to maintain a full time managerial
presence at station KMDY and we find that Moody willfully
violated Section 73.3527(c) by failing to make available for
public inspection during regular business hours the complete
public inspection file.
11. Pursuant to Section 1.80(b)(4) of the Rules,10 the
base forfeiture amount for violation of main studio rules is
$7,000.00 and the base forfeiture amount for violation of
the public file rules is $10,000.00. 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 Communications Act of 1934, as amended (``Act''), which
include 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 other such matters as justice may require.11 In
reviewing the history of this licensee, we find at least
five Notices of Violation issued to Moody owned stations
since 1999. We also note the failure to maintain a
management presence was a continuous violation. However,
the licensee did maintain some part time management presence
and did have a public file with some required documents.
Considering the entire record and applying the factors
listed above, this case warrants a $10,000 forfeiture.
IV. ORDERING CLAUSES
12. Accordingly, IT IS ORDERED THAT, pursuant to
Section 503(b) of the Act,12 and Sections 0.111, 0.311 and
1.80 of the Rules,13 The Moody Bible Institute of Chicago is
hereby NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE
in the amount of ten thousand dollars ($10,000.00) for
willful and repeated violation of Section 73.1125(a) of the
Rules by failing to maintain a full time management presence
at its main studio and for willful violation of Section
73.3527(c) for failing to make available for public
inspection during regular business hours the complete public
13. IT IS FURTHER ORDERED THAT, pursuant to Section
1.80 of the Rules, within thirty days of the release date of
this NAL, The Moody Bible Institute of Chicago SHALL PAY the
full amount of the proposed forfeiture or SHALL FILE a
written statement seeking reduction or cancellation of the
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. and FRN referenced
above. Requests for payment of the full amount of this NAL
under an installment plan should be sent to: Chief, Revenue
and Receivables Operations Group, 445 12th Street, S.W.,
Washington, D.C. 20554.14
15. The response, if any, must be mailed to Federal
Communications Commission, Office of the Secretary, 445 12th
Street SW, Washington DC 20554, Attn: Enforcement Bureau-
Spectrum Enforcement Division and MUST INCLUDE THE NAL/Acct.
No. referenced above.
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
17. Under the Small Business Paperwork Relief Act of
2002, Pub L. No. 107-198, 116 Stat. 729 (June 28, 2002), the
FCC is engaged in a two-year tracking process regarding the
size of entities involved in forfeitures. If you qualify as
a small entity and if you wish to be treated as a small
entity for tracking purposes, please so certify to us within
thirty (30) days of this NAL, either in your response to the
NAL or in a separate filing to be sent to the Spectrum
Enforcement Division. Your certification should indicate
whether you, including your parent entity and its
subsidiaries, meet one of the definitions set forth in the
list provided by the FCC's Office of Communications Business
Opportunities (OCBO) set forth in Attachment A of this
Notice of Apparent Liability. This information will be used
for tracking purposes only. Your response or failure to
respond to this question will have no effect on your rights
and responsibilities pursuant to Section 503(b) of the
Communications Act. If you have questions regarding any of
the information contained in Attachment A, please contact
OCBO at (202) 418-0990.
18. IT IS FURTHER ORDERED THAT a copy of this NAL
shall be sent by regular mail and Certified Mail Return
Receipt Requested to The Moody Bible Institute of Chicago,
820 N. Lasalle Blvd., Chicago, IL 60610 with a copy to their
attorney, Jeffrey D. Southmayd, 1220 Nineteenth Street,
N.W., Suite 400, Washington, D.C. 20036.
FEDERAL COMMUNICATIONS COMMISSION
Robert C. McKinney
Kansas City Office, Enforcement
1 47 C.F.R. §§ 73.1125(a) and 73.3527(c).
2 Main Studio and Program Origination Rules, 2 FCC Rcd 3215,
3217-18 (1987), clarified, 3 FCC Rcd 5024, 5026 (1988).
4 Jones Eastern of the Outer Banks, Inc., 6 FCC Rcd 3615,
3616 (1991), clarified, 7 FCC Rcd 6800 (1992).
5 Id., 6 FCC Rcd at 3616 n.2; 7 FCC Rcd at 6800 n.4.
6 Id., 7 FCC Rcd at 6802.
7 47 C.F.R. § 73.3527(a).
8 Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which
applies to violations for which forfeitures are assessed
under 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 4387-88
9 The term ``repeated,'' when used with reference to the
commission or omission of any act, ``means the commission or
omission of such act more than once or, if such commission
or omission is continuous, for more than one day.'' 47
U.S.C. § 312(f)(2).
10 47 C.F.R. § 1.80(b)(4).
11 47 U.S.C. § 503(b)(2)(D).
12 47 U.S.C. § 503(b).
13 47 C.F.R. §§ 0.111, 0.311, 1.80.
14 See 47 C.F.R. § 1.1914.