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Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of ) File No. EB-10-IH-3794
CHICO LICENSE, L.L.C. ) NAL/Acct. No. 201132080033
Licensee of Station KNVN(TV), ) FRN No. 0001566009
Chico, California ) Facility ID No. 33745
)
)
ORDER
Adopted: July 7, 2011 Released: July 11, 2011
By the Chief, Enforcement Bureau:
1. In this Order, we adopt the attached Consent Decree entered into
between the Enforcement Bureau ("Bureau") and Chico License, L.L.C.
("Chico" or the "Licensee"). The Consent Decree terminates an
investigation by the Bureau against the Licensee for possible
violation of section 73.1216 of the Commission's Rules regarding
licensee-conducted contests.
2. The Bureau and the Licensee have negotiated the terms of the Consent
Decree that resolve this matter. A copy of the Consent Decree is
attached hereto and incorporated by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigation.
4. In the absence of material new evidence relating to this matter, we
conclude that our investigation raises no substantial or material
questions of fact as to whether the Licensee possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the
Communications Act of 1934, as amended, and sections 0.111 and 0.311
of the Commission's Rules, the Consent Decree attached to this Order
IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigation IS
TERMINATED.
7. IT IS FURTHER ORDERED that all third-party complaints against Chico
before the Bureau related to the above-captioned investigation as of
the date of this Consent Decree ARE DISMISSED.
8. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class certified mail, return receipt requested,
to Chico License, L.L.C., 308 8th Avenue East, Palmetto, Florida
34221, and to its counsel, Lee G. Petro, Esquire, Fletcher, Heald &
Hildreth, P.L.C., 1300 North 17th Street, Suite 1100, Arlington,
Virginia 22209.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
Before the
Federal Communications Commission
Washington, D.C. 20554
)
)
In the Matter of ) File No. EB-10-IH-3794
CHICO LICENSE, L.L.C. ) NAL/Acct. No. 201132080033
Licensee of Station KNVN(TV), ) FRN No. 0001566009
Chico, California ) Facility ID No. 33745
)
)
CONSENT DECREE
1. The Enforcement Bureau (the "Bureau") and Chico License, L.L.C.
("Chico" or the "Licensee"), by their authorized representatives, hereby
enter into this Consent Decree for the purpose of terminating the Bureau's
investigation into whether Chico violated section 73.1216 of the
Commission's Rules concerning licensee-conducted contests.
I. DEFINITIONS
2. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C.
S: 151 et seq.
b. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
c. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
d. "Complaints" mean the third party complaints received by or in the
possession of the Bureau, forming the basis for the Bureau's August 9,
2010, November 18, 2010, and January 11, 2011 Letters of Inquiry
regarding whether the Licensee violated the Commission's rules
concerning licensee-conducted contests.
e. "Compliance Plan" means the program described in this Consent Decree
at Paragraph 10.
f. "Effective Date" means the date on which the Commission releases the
Adopting Order.
g. "Investigation" means the investigation commenced by the Bureau's
August 9, 2010, November 18, 2010, and January 11, 2011 Letters of
Inquiry regarding whether the Licensee violated the Commission's rules
concerning licensee-conducted contests.
h. "Licensee" and "Chico" mean Chico License, L.L.C. and its
predecessors-in-interest and successors-in-interest.
i. "Licensee-Conducted Contest Rule" means 47 C.F.R. S: 73.1216.
j. "Order" or "Adopting Order" means an Order of the Commission adopting
the terms of this Consent Decree without change, addition, deletion,
or modification.
k. "Parties" means Chico and the Bureau, and each a "Party."
l. "Rules" mean the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
m. "Station" means television Station KNVN(TV), Chico, California
(Facility ID No. 33745).
II. BACKGROUND
3. Pursuant to the Licensee-Conducted Contest Rule, a licensee that
broadcasts or advertises information about a contest it conducts shall
fully and accurately disclose the material terms of the contest and
shall conduct the contest substantially as announced or advertised. In
addition, no contest description shall be false, misleading, or
deceptive with respect to any material term.
4. The Commission received complaints, dated June 18, 2010, and August
12, 2010 (the "Complaints"), alleging that the Station conducted a
contest in June 2010 that allegedly violated the Licensee-Conducted
Contest Rule. Specifically, the Complaints alleged that as part of a
"wedding" contest conducted by the Station together with Catamount
Broadcasting of Chico-Redding, Inc.'s television station KHSL-TV,
Chico, California, the Station failed to award the advertised wedding
prize to the winning couple, but instead awarded it to the runners-up.
5. The Bureau's Investigations and Hearings Division sent Letters of
Inquiry to the Licensee, dated August 9, 2010, November 18, 2010, and
January 11, 2011. The Licensee filed Responses on October 8, 2010,
December 20, 2010, and January 21, 2011. In the October 8th Response,
the Licensee explained that it conducted a contest in which couples
entered for the chance of a free wedding, with the winner determined
by an audience vote. Although the Station determined that there was a
winning couple and took steps to award them the prize, the Station
ultimately rescinded the prize and awarded it to another couple due
to public safety threats from a local gang aimed at the event, which
was publicized. The Licensee states that it could not award the prize
to the winning couple without risking public harm and so it awarded
the prize to another couple. Before the Investigation commenced, the
Licensee made efforts towards providing a substitute prize to the
original winners. The terms of this Consent Decree therefore reflect
the Bureau's consideration of the Licensee's pre-investigation
mitigation efforts and its prior history of compliance with Commission
rules.
III. TERMS OF AGREEMENT
6. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Bureau by
incorporation of such provisions by reference in the Adopting Order
without change, addition, modification, or deletion.
7. Jurisdiction. The Licensee agrees that the Bureau has jurisdiction
over it and the matters contained in this Consent Decree and has the
authority to enter into and adopt this Consent Decree.
8. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the date on which the FCC releases the
Adopting Order. Upon release, the Adopting Order and this Consent
Decree shall have the same force and effect as any other Order of the
Bureau. Any violation of the Adopting Order or of the terms of this
Consent Decree shall constitute a separate violation of a Bureau
Order, entitling the Bureau to exercise any rights and remedies
attendant to the enforcement of a Commission Order.
9. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Bureau agrees to terminate its
investigation and dismiss the Complaints. In consideration for the
termination of said investigation and dismissal of the Complaints, the
Licensee agrees to the terms, conditions, and procedures contained
herein. The Bureau further agrees that, in the absence of new material
evidence, the Bureau will not use the facts developed in this
investigation through the Effective Date of the Consent
Decree, or the existence of this Consent Decree, to institute, on its own
motion, any new proceeding, formal or informal, or take any action on its
own motion against the Licensee concerning the matters that were the
subject of the investigation. The Bureau also agrees that it will not use
the facts developed in this investigation through the Effective Date of
this Consent Decree, or the existence of this Consent Decree, to institute
on its own motion any proceeding, formal or informal, or take any action
on its own motion against the Licensee with respect to the Licensee's
basic qualifications, including its character qualifications, to be a
Commission licensee.
10. Compliance Plan. For purposes of settling the matters set forth
herein, the Licensee agrees to create within thirty (30) days of the
Effective Date a Compliance Plan related to future compliance with
the Act, the Commission's Rules, and the Commission's Orders. The Plan
will include, at a minimum, the following components:
a. Memorandum. The Licensee shall prepare and distribute within thirty
(30) days of the Effective Date a memorandum to all Station employees
materially involved in the broadcast of programming explaining the
Commission's Licensee-Conducted Contest Rule and setting forth Station
procedures applicable to avoiding violations thereof. The memorandum shall
be updated and redistributed to all such Station employees within thirty
(30) days following any change to the Licensee-Conducted Contest Rule or
to the Licensee's procedures applicable to avoiding violations thereof.
b. Training. Following distribution of the aforesaid memorandum, and in
any event no later than sixty (60) days after the Effective Date, all
Station employees involved in the broadcast of programming or who assist
with any stage of planning and executing licensee-conducted contests shall
receive appropriate training with respect to compliance with the
Licensee-Conducted Contest Rule and Station procedures with respect
thereto. The Licensee shall conduct such training annually for the
aforementioned employees and shall also train new and reassigned employees
responsible for these activities within thirty (30) days of their assuming
these responsibilities.
c. Termination Date. Unless stated otherwise, the requirements of this
Compliance Plan will expire three (3) years after the Effective Date.
11. Compliance Reports. The Licensee will file compliance reports with the
Commission ninety (90) days after the Effective Date, twelve (12)
months after the Effective Date, twenty-four (24) months after the
Effective Date, and upon expiration of this Consent Decree, three (3)
years after the Effective Date. Each compliance report shall include a
compliance certificate from an officer, as an agent of the Licensee,
stating that the officer has personal knowledge that the Licensee: (i)
has established operating procedures intended to ensure compliance
with the terms and conditions of this Consent Decree and the
Licensee-Conducted Contest Rule, together with an accompanying
statement explaining the basis for the officer's certification; (ii)
has been utilizing those procedures since the previous Compliance
Report was submitted; and (iii) is not aware of any instances of
non-compliance. The certification must comply with section 1.16 of the
Commission's Rules and be subscribed to as true under penalty of
perjury in substantially the form set forth therein. If the officer
cannot provide the requisite certification, the officer, as an agent
of and on behalf of the Licensee, shall provide the Commission with a
detailed explanation of: (i) any instances of non-compliance with this
Consent Decree and the Licensee-Conducted Contest Rule; and (ii) the
steps that the Licensee has taken or will take to remedy each instance
of non-compliance and ensure future compliance, and the schedule on
which proposed remedial actions will be taken. All compliance reports
shall be submitted to the Chief, Investigations and Hearings Division,
Enforcement Bureau, Federal Communications Commission, Room 4-C330,
445 12th Street, S.W., Washington, D.C. 20554, with a copy submitted
electronically to Anjali K. Singh at Anjali.Singh@fcc.gov, and to
Melissa A. Marshall at Melissa.Marshall@fcc.gov.
12. Voluntary Contribution. The Licensee agrees that it will make a
voluntary contribution to the United States Treasury in the amount of
three thousand dollars ($3,000). The payment will be made within ten
(10) calendar days after the Effective Date. The payment 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 in the caption to the Adopting Order.
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 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). The Licensee will also send
electronic notification on the date said payment is made to
Terry.Cavanaugh@fcc.gov, Anjali.Singh@fcc.gov, and to
Melissa.Marshall@fcc.gov.
13. Waivers. The Licensee waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Order adopting this Consent Decree, provided the Commission
issues an Order adopting the Consent Decree without change, addition,
modification, or deletion. The Licensee shall retain the right to
challenge Commission interpretation of the Consent Decree or any terms
contained herein. If either Party (or the United States on behalf of
the Commission) brings a judicial action to enforce the terms of the
Adopting Order, neither the Licensee nor the Commission shall contest
the validity of the Consent Decree or the Adopting Order, and the
Licensee shall waive any statutory right to a trial de novo. The
Licensee hereby agrees to waive any claims it may otherwise have under
the Equal Access to Justice Act, 5 U.S.C. S: 504 and 47 C.F.R. S:
1.1501 et seq., relating to the matters addressed in this Consent
Decree.
14. Invalidity. In the event that this Consent Decree in its entirety is
rendered invalid by any court of competent jurisdiction, it shall
become null and void and may not be used in any manner in any legal
proceeding.
15. Subsequent Rule or Order. The Parties agree that if any provision of
the Consent Decree conflicts with any subsequent rule or Order adopted
by the Commission (except an Order specifically intended to revise the
terms of this Consent Decree to which the Licensee does not expressly
consent) that provision will be superseded by such Commission rule or
Order.
16. Successors and Assigns. The Licensee agrees that the provisions of
this Consent Decree shall be binding on its successors, assigns, and
transferees.
17. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties. The
Parties further agree that this Consent Decree does not constitute
either an adjudication on the merits or a factual or legal finding or
determination regarding any compliance or noncompliance with the
requirements of the Act or the Commission's Rules and Orders. The
Parties agree that this Consent Decree is for settlement purposes only
and that by agreeing to this Consent Decree, the Licensee does not
admit or deny noncompliance, violation or liability for violating the
Act, the Commission's Rules or Orders in connection with the matters
that are the subject of this Consent Decree.
18. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
19. Paragraph Headings. The headings of the Paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
20. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
21. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed
and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed instrument.
________________________________
P. Michele Ellison
Chief
Enforcement Bureau
________________________________
Date
________________________________
William G. Evans
Managing Member
Chico License, L.L.C.
________________________________
Date
See 47 C.F.R. S: 73.1216.
See 47 U.S.C. S: 154(i).
See 47 C.F.R. S:S: 0.111, 0.311.
See 47 C.F.R. S: 73.1216.
See Complaint, FCC Form 2000A, 10-C00226476-1, submitted June 18,
2010; Complaint, FCC Form 2000E, 10-C00239258-1, submitted August 12,
2010.
See Letter from Anjali K. Singh, Acting Assistant Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, to Chico License, L.L.C., dated August 9,
2010; Letter from Anjali K. Singh, Acting Assistant Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, to Chico License, L.L.C., dated November
18, 2010; Letter from Anjali K. Singh, Assistant Chief, Investigations
and Hearings Division, Enforcement Bureau, Federal Communications
Commission, to Chico License, L.L.C., dated January 11, 2011. The
Bureau also provided the complainants the opportunity to reply to the
Licensee's responses to these letters, and in one instance, one
complainant submitted such a reply. See E-mail from Complainant to
Melissa Marshall, Attorney Advisor, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, and
Jeffrey J. Gee, Counsel for Chico License, L.L.C., dated January 6,
2011.
See supra note 3.
See 47 C.F.R. S: 73.1216.
See id.
See id.
See supra note 2.
The Bureau has also entered into a Consent Decree with Catamount
Broadcasting of Chico-Redding, Inc.
See supra note 2.
See supra note 3.
See Letter from Jeffrey J. Gee, Counsel for Chico License, L.L.C., to
Marlene H. Dortch, Secretary, Federal Communications Commission, dated
October 8, 2010 ("October 8th Response"); Letter from Jeffrey J. Gee,
Counsel for Chico License, L.L.C., to Marlene H. Dortch, Secretary,
Federal Communications Commission, dated December 20, 2010 ("December
20th Response"); Letter from Jeffrey J. Gee, Counsel for Chico
License, L.L.C., to Marlene H. Dortch, Secretary, Federal
Communications Commission, dated January 21, 2011 ("January 21st
Response").
See October 8th Response at 3.
See id. at 4-5.
See id. at 4-6.
See December 20th Response at 4-5; January 21st Response at 2-5. Chico
and Catamount Broadcasting of Chico-Redding, Inc. state that the
original winners have scheduled a substitute wedding date, and that
the licensees are paying the wedding expenses.
See 47 C.F.R. S: 1.16.
Federal Communications Commission DA 11-1145
2
Federal Communications Commission DA 11-1145
3