Click here for Microsoft Word Version

This document was converted from
WordPerfect or Word to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Word or WordPerfect version or Adobe Acrobat version (above).


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

In the Matter of                   )
Mike Morrison                      )                   File   No.  

3880 Nowlin Road                   )    
Kennesaw, GA 30144                 )         NAL/Acct.        No.  


                         FORFEITURE ORDER

Adopted:   January 25, 2001             Released:    January  29, 


By the Chief, Enforcement Bureau:

                        I.  INTRODUCTION

     1.   In  this  Forfeiture  Order  (``Order''),  we  issue  a 
monetary  forfeiture  in  the  amount  of  two  thousand  dollars 
($2,000) against  Mike  Morrison, d/b/a  Morrison  Sales  Company 
(``Morrison'') for violating  Section 302  of the  Communications 
Act of  1934, as  amended (``Act'')1  by marketing  non-compliant 
devices for use in the FM broadcast band.   The noted  violations 
involve the sale of at least 12 FM transmitters that exceeded the 
field strength limitations  prescribed by Section  15.239 of  the 
Commission's Rules  (``the  Rules'')  2  for  non-licensed,  low-
powered transmitters.

     2.   On October  11,  2000,  the District  Director  of  the 
Atlanta, Georgia,  Field  Office (``Atlanta  Office'')  issued  a 
Notice of  Apparent Liability  for  Forfeiture (``NAL'')  in  the 
amount of  two thousand  dollars ($2,000).3   Morrison filed  his 
response on November 1, 2000.

                         II.  BACKGROUND

     3.   On September 28, 1999,  agents from the Atlanta  Office 
began an  investigation  into  the  marketing  of  low  power  FM 
transmitters following news reports about such transmitters.  The 
agents found  eleven  SKY-2000  FM  transmitters  that  had  been 
distributed  by  Skywave  Electronics  (``Skywave''),   Rockford, 
Illinois, and  sold  by Morrison.   Field  strength  measurements 
taken  during   the   investigation  showed   that   the   eleven 
transmitters exceeded the level  authorized by Section 15.239  of 
the Rules.

     4.    On September 28, 1999, during an inspection of a  SKY-
2000 FM transmitter  and on  October 15, 1999,  during an  office 
interview,  the  agents  verbally  warned  Morrison  against  the 
marketing of  noncompliant low  power devices.   On November  25, 
1999, the Atlanta  Office issued Morrison  an Official Notice  of 
Violation for  violation of  Section 302  of the  Act  (marketing 
noncompliant devices).   In his  response  to the  NOV,  Morrison 
asserted his intention to comply with Section 302.  

     5.   On August 16,  2000, an agent  from the Atlanta  Office 
inspected a SKY-2000 FM transmitter operating at the  Chick-fil-A 
restaurant in Marietta, Georgia (``Chick-fil-A''), and found that 
the transmitter's field strength exceeded the level authorized by 
Section  15.239  of  the   Rules  for  non-licensed   low-powered 
transmitters.  The owner of  Chick-fil-A stated that he  acquired 
the SKY-2000 FM transmitter from Morrison in May 2000.

     6.   In his response  to the NAL,  Morrison asserts that  he 
``gave'' the restaurant an ``older'' SKY-2000 FM transmitter  and 
charged ``only for production  work . . .  on a monthly  basis.''  
Morrison also asserts  that does  not have the  apparatus or  the 
technical ability to determine whether the devices he markets are 
compliant and  contends  that  he  should  be  able  to  rely  on 
Skywave's representation that its devices are compliant.

                        III.  DISCUSSION

     7.   As  the  NAL  explicitly  states,  the  Atlanta  Office 
assessed  the  proposed  forfeiture   amount  in  this  case   in 
accordance with  Section 503  of the  Act,4 Section  1.80 of  the 
Rules,5 and  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) (``Policy Statement'').  Section 503(b) of the 
Act  requires  that,  in   examining  Morrison's  response,   the 
Commission 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 other such matters as justice may require.6

     8.   Section 302  of the  Act provides,  in pertinent  part, 
that:  ``No person shall  . . . sell  . . . devices  . . .  which 
fail to comply with the regulations promulgated pursuant to  this 
section.''   Section   15.239  of   the  Rules7   specifies   the 
permissible field  strength  level for  non-licensed  low-powered 
transmitters which operate in the 88-108 MHz FM broadcast band.

     9.   It is undisputed that  Morrison transferred a  SKY-2000 
FM transmitter which did not comply with the field strength level 
specified by  Section 15.329  of the  Rules to  Chick-fil-A.   We 
reject Morrison's claim  that he ``gave''  rather than sold  that 
transmitter to Chick-fil-A.  First, Morrison is engaged in a for-
profit business  and clearly  received a  pecuniary benefit  from 
transferring  the   SKY-2000  FM   transmitter  to   Chick-fil-A.  
Furthermore, the  owner of  Chick-fil-A  stated to  a  Commission 
agent that he acquired the SKY-2000  FM transmitter as part of  a 
package arrangement  for which  he  paid approximately  $900  and 
which also included monthly programming ``updates'' for one  year 
at no  additional  cost ($25  per  month after  one  year).   The 
transaction between Morrison and Chick-fil-A clearly  constituted 
a sale. 

     10.   It  is Morrison's  responsibility to  ensure that  the 
radio frequency devices  he sells  are compliant  with the  field 
strength level specified by the Rules.  At the time Morrison sold 
the SKY-2000 FM transmitter to Chick-fil-A, he knew that  Skywave 
had distributed  eleven  noncompliant  SKY-2000  FM  transmitters 
which  Skywave  claimed  were  compliant.   Morrison,  therefore, 
should  have  known   that  he  could   not  rely  on   Skywave's 
representations of compliance.  It was essential for Morrison  to 
independently determine whether the  SKY-2000 FM transmitter  was 
compliant before selling it to Chick-fil-A but he did not do  so.   
Since Morrison  could  have  engaged  a  contractor  to  make  an 
independent determination,  his  assertion  that  he  lacked  the 
necessary apparatus and the  technical ability cannot excuse  his 
failure to make an independent determination.

     11.    We conclude that there is no basis for rescission  or 
mitigation of the proposed monetary forfeiture and that $2,000 is 
the proper amount.

                      IV.  ORDERING CLAUSES

     12.   Accordingly, IT IS  ORDERED THAT, pursuant to  Section 
503(b) of the Act,8 and  Sections 0.111, 0.311 and 1.80(f)(4)  of 
the Rules,9 Mike Morrison IS LIABLE FOR A MONETARY FORFEITURE  in 
the amount  $2,000 for  willfully  and repeatedly  violating  the 
provisions of Section 302 of the Act, which prohibits the sale of 
noncompliant radio frequency devices.
     13.   Payment of the forfeiture shall be made in the  manner 
provided for in Section 1.80  of the Commission's Rules10  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.11  Payment  shall  be made  by  mailing a  check  or 
similar  instrument,  payable  to   the  order  of  the   Federal 
Communications  Commission,   to   the   Federal   Communications 
Commission, P.O. Box  73482, Chicago,  Illinois 60673-7482.   The 
payment should note the NAL/Acct. No. referenced above.  Requests 
for full payment  under an  installment plan should  be sent  to: 
Chief, Credit and Debt Management Center, 445 12th Street,  S.W., 
Washington, D.C. 20554.12

     14.       IT IS FURTHER  ORDERED that a  copy of this  Order 
shall be sent by Certified Mail Return Receipt Requested to  Mike 
Morrison at 3880 Nowlin Road, Kennesaw, GA 30144.


                         David H. Solomon
                         Chief, Enforcement Bureau

     1 47 U.S.C.  302a.

     2 47 C.F.R. 15.239.

     3 Notice  of  Apparent  Liability  for  Forfeiture,  NAL/No. 
X3248003 (Enf. Bur., Atlanta Office, released May 9, 2000).

     4  47 U.S.C.  503(b).

     5 47 C.F.R.  1.80.

6    6 47 U.S.C.  503(b)(2)(D).

     7 47 C.F.R. 15.239.

     8 47 U.S.C.  503(b).

     9 47 C.F.R.  0.111, 0.311, 1.80(f)(4).

     10 47 C.F.R.  1.80.

     11 47 U.S.C.  504(a).

     12 See 47 C.F.R.  1.1914.