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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of
)
New World, L.L.C. File Numbers: EB-07-OR-061
)
Licensee of KZTD-AM NAL/Acct. No.: 200832620001
)
Cabot, Arkansas FRN: 0015736143
)
Facility ID # 25861
)
)
FORFEITURE ORDER
Adopted: September 11, 2008 Released: September 15, 2008
By the Regional Director, South Central Region, Enforcement Bureau:
I. INTRODUCTION
1. In this Forfeiture Order ("Order"), we issue a monetary forfeiture in
the amount of one thousand dollars ($1,000) to New World, L.L.C. ("New
World"), licensee of station KZTD-AM serving Cabot, Arkansas, for
willful and repeated violation of Section 73.3526 of the Commission's
Rules ("Rules"). The noted violation involves New World's failure to
maintain and make available a public inspection file.
II. BACKGROUND
2. On July 17, 2007, in response to a complaint, agents from the
Commission's New Orleans Office of the Enforcement Bureau ("New
Orleans Office") inspected station KZTD-AM at its main studio in
Cabot, Arkansas. Station KZTD-AM's General Manager, was present
during the inspection. In response to a request made during normal
business hours, the general manager was unable to produce any part of
the station's public inspection file. On August 8, 2007, an agent from
the New Orleans Office spoke to the station's owner, who was unsure of
the status or location of the station's public inspection file and who
stated that the general manager was in the process of compiling the
required documents.
3. On October 6, 2007, the New Orleans Office issued a Notice of Apparent
Liability for Forfeiture to New World in the amount of ten thousand
dollars ($10,000) for the apparent willful and repeated violation of
Section 73.3526 of the Rules. New World submitted a response to the
NAL requesting a reduction or cancellation of the proposed forfeiture.
III. DISCUSSION
4. The proposed forfeiture amount in this case was assessed in accordance
with Section 503(b) of the Communications Act of 1934, as amended
("Act'), Section 1.80 of the Rules, 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) ("Forfeiture Policy Statement"). In
examining New World's response, Section 503(b) of the Act requires
that 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.
5. Section 73.3526(a)(2) of the Rules requires broadcast stations to
maintain for public inspection, a file containing materials listed in
that section. Section 73.3526(c)(1) of the Rules states that the file
shall be available for public inspection at any time during regular
business hours. Section 73.3526(e) of the Rules specifies the material
to be retained in the public inspection file. In response to a request
made during regular business hours, station KZTD-AM's general manager
was unable to locate or make available any part of the station's
public inspection file. He was unable to find any evidence that the
public inspection file had ever existed at the main studio. Subsequent
to the inspection, the station's owner was unable to provide
information regarding the status or location of the station's public
inspection file.
6. Thus, based on the evidence before us, we find that New World
willfully and repeatedly violated Section 73.3526 of the Rules by
failing to maintain a public inspection file and willfully violated
Section 73.2526 of the Rules by failing to make available a public
inspection file.
7. New World requests reduction or cancellation of the forfeiture because
it claims it only became the licensee for the station on February 2,
2007. However, New World was the licensee of the station for over five
months before the agents' inspection and had ample time in which to
assemble its public inspection file. Accordingly, we deny New World's
request to cancel or reduce its forfeiture on these grounds.
8. Finally, New World requests reduction or cancellation of its
forfeiture, because it asserts imposition of the forfeiture would pose
a financial hardship. The Commission has determined that, in general,
an entity's gross revenues are the best indicator of its ability to
pay a forfeiture. After examining the financial documentation
submitted by New World, we agree and reduce the forfeiture to $1,000
based on its demonstrated inability to pay.
9. We have examined New World's response to the NAL pursuant to the
statutory factors above, and in conjunction with the Forfeiture Policy
Statement. As a result of our review, we conclude that New World
willfully and repeatedly violated Section 73.3526 of the Rules by
failing to maintain and make available a public inspection file.
However, we reduce the forfeiture for this violation to $1,000, based
on New World's demonstrated inability to pay.
IV. ORDERING CLAUSES
10. Accordingly, IT IS 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, New World, L.L.C. IS LIABLE FOR
A MONETARY FORFEITURE in the amount of one thousand dollars ($1,000)
for violation of Section 73.3526 of the Rules.
11. Payment of the forfeiture shall be made in the manner provided for in
Section 1.80 of the Rules 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. Payment of the forfeiture must be made
by check or similar instrument, payable to the order of the Federal
Communications Commission. The payment must include the NAL/Account
Number and FRN Number referenced above. Payment by check or money
order may be mailed to Federal Communications Commission, P.O. Box
979088, St. Louis, MO 63197-9000. Payment by overnight mail may be
sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005
Convention Plaza, St. Louis, MO 63101. Payment[s] by wire transfer may
be made to ABA Number 021030004, receiving bank TREAS/NYC, and account
number 27000001. For payment by credit card, an FCC Form 159
(Remittance Advice) must be submitted. When completing the FCC Form
159, enter the NAL/Account number in block number 23A (call sign/other
ID), and enter the letters "FORF" in block number 24A (payment type
code). Requests for full payment under an installment plan should be
sent to: Chief Financial Officer -- Financial Operations, 445 12th
Street, S.W., Room 1-A625, Washington, D.C. 20554. Please contact
the Financial Operations Group Help Desk at 1-877-480-3201 or Email:
ARINQUIRIES@fcc.gov with any questions regarding payment procedures.
New World will also send electronic notification on the date said
payment is made to SCR-Response@fcc.gov.
12. IT IS FURTHER ORDERED that a copy of this Order shall be sent by First
Class and Certified Mail Return Receipt Requested to New World, L.L.C.
at its address of record and to its counsel, Lee Petro, Fletcher,
Heald & Hildreth, P.L.C., 1300 North 17th Street, 11th Floor,
Arlington, VA 22209.
FEDERAL COMMUNICATIONS COMMISSION
Dennis P. Carlton
Regional Director, South Central Region
Enforcement Bureau
47 C.F.R. S: 73.3526.
On June 11, 2007, an agent from the New Orleans Office informed station
KZTD-AM's owner that the Office had received a complaint of several
violations at the station, including a public inspection file violation.
Notice of Apparent Liability for Forfeiture, NAL/Acct. No. 200832620001
(Enf. Bur., New Orleans Office, October 6, 2007) ("NAL").
47 U.S.C. S: 503(b).
47 C.F.R. S: 1.80.
47 U.S.C. S: 503(b)(2)(D).
47 C.F.R. S: 73.3526(a)(2).
47 C.F.R. S: 73.3526(c)(1).
47 C.F.R. S: 73.3526(e).
Section 312(f)(1) of the Act, 47 U.S.C. S: 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,' ... means the conscious and
deliberate commission or omission of such act, irrespective of any intent
to violate any provision of this Act or any rule or regulation of the
Commission authorized by this Act ...." See Southern California
Broadcasting Co., 6 FCC Rcd 4387 (1991).
As provided by 47 U.S.C. S: 312(f)(2), a continuous violation is
"repeated" if it continues for more than one day. The Conference Report
for Section 312(f)(2) indicates that Congress intended to apply this
definition to Section 503 of the Act as well as Section 312. See H.R. Rep.
97th Cong. 2d Sess. 51 (1982). See Southern California Broadcasting
Company, 6 FCC Rcd 4387, 4388 (1991) and Western Wireless Corporation, 18
FCC Rcd 10319 at fn. 56 (2003).
See WGUL-FM, Inc., Forfeiture Order, 14 FCC Rcd 6106 (Compl. & Inf. Bur.
1999), recon. denied 15 FCC Rcd 11163 (Enf. Bur., 2000), app. for rev.
denied in part, granted in part, 15 FCC Rcd 24366 (2000) (holding licensee
of two months responsible for public inspection file violation); Joy
Public Broadcasting Corporation, Inc., Forfeiture Order, 14 FCC Rcd 11326
(Compl. & Inf. Bur., 1999), recon. denied, 15 FCC Rcd 8575 (Enf. Bur.,
2000), recon. denied, 15 FCC Rcd 18255 (Enf. Bur., 2000), recon. granted
in part, 16 FCC Rcd 2283 (Enf. Bur,, 2001), recon. denied, 16 FCC Rcd 8415
(Enf. Bur., 2001), recon dismissed 16 FCC Rcd 11971(Enf. Bur., 2001)
(holding licensee of two months responsible for rule violations).
See PJB Communications of Virginia, Inc., 7 FCC Rcd 2088, 2089 (1992)
(forfeiture not deemed excessive where it represented approximately 2.02
percent of the violator's gross revenues); Local Long Distance, Inc., 16
FCC Rcd 24385 (2000) (forfeiture not deemed excessive where it represented
approximately 7.9 percent of the violator's gross revenues); Hoosier
Broadcasting Corporation, 15 FCC Rcd 8640 (2002) (forfeiture not deemed
excessive where it represented approximately 7.6 percent of the violator's
gross revenues).
47 U.S.C. S:S: 301, 503(b); 47 C.F.R. S:S: 0.111, 0.311, 1.80(f)(4),
73.3526.
47 U.S.C. S: 504(a).
Federal Communications Commission DA 08-2086
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Federal Communications Commission DA 08-2086