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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                     )                                
                                                                      
     In the Matter of                )                                
                                                                      
     Spirit Broadcasting, Inc.       )   File Number: EB-10-NF-0020   
                                                                      
     Licensee of Station WGTM (AM)   )   NAL/Acct. No.: 201132640003  
                                                                      
     Wilson, North Carolina          )   FRN: 0009359811              
                                                                      
     Facility ID # 61929             )                                
                                                                      
                                     )                                


             NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

   Adopted: July 18, 2011 Released: July 18, 2011

   By the Resident Agent, Norfolk Office, South Central Region, Enforcement
   Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture and Order ("NAL"),
       we find that Spirit Broadcasting, Inc., ("Spirit"), licensee of
       Station WGTM(AM), in Wilson, North Carolina, apparently willfully and
       repeatedly violated sections 11.35, 73.49, and 73.3526 of the
       Commission's rules ("Rules") by failing to: (1) maintain operational
       Emergency Alert System ("EAS") equipment; (2) enclose an antenna
       tower, having radio frequency potential at the base, within an
       effectively locked fence; and (3) maintain and make available a public
       inspection file. We conclude that Spirit is apparently liable for a
       forfeiture in the amount of twenty-five  thousand dollars ($25,000).
       We further order Spirit to submit a sworn statement certifying that it
       is currently in compliance with sections 11.35, 73.49, and 73.3526 of
       the Rules.

   II. BACKGROUND

    2. On March 8 and March 10, 2010, in response to a complaint, an agent
       from the Enforcement Bureau's Norfolk Office visited Station WGTM's
       unattended transmitter site in Rock Ridge, North Carolina. On both
       dates, the agent observed that the base fence for one of the antennas
       of Station WGTM's four-antenna array, antenna structure number
       1010779, which had radio frequency potential at the base, was unlocked
       and in disrepair. The agent also observed that there was no perimeter
       fence around the Station WGTM property.

    3. On March 8, 2010, an agent from the Norfolk Office, accompanied by the
       station's general manager/President of Spirit, also conducted an
       inspection of the main studio for Station WGTM at 520 Ward Boulevard
       in Wilson, North Carolina. The agent conducted the inspection during
       regular business hours and when the station was in operation. The
       agent observed that Station WGTM did not have an installed, functional
       EAS system and had no documentation, logs, or records showing that EAS
       equipment had ever been installed at the main studio or that any EAS
       weekly or monthly tests had ever been sent or received. In response to
       a request to inspect the station's public inspection file, the general
       manager was

   unable to produce or make available the station's public inspection file
   or any of the required contents of the file.

    4. In a response to a Letter of Inquiry from the Commission, Spirit
       stated that during the inspection on March 8, 2010: (1) they were in
       the midst of a move from Ward Boulevard to a new main studio on Martin
       Luther King Parkway; (2) the EAS equipment and public inspection file
       were in transit; (3) unbeknownst to the general manager, one of the
       engineers had the EAS equipment in his possession and it needed
       repair; (4) that the public inspection file is now available at the
       Martin Luther King Parkway main studio; (5) that the EAS unit is now
       installed at the Martin Luther King Parkway main studio; (6) that it
       is unknown when the fence first became unlocked, (7) that the base
       fence has been fixed twice since the inspection due to vandalism, and
       (8) that the fence has generally been checked once a week since March
       2010. In a subsequent response, Spirit added that the EAS equipment
       was installed at the Martin Luther King Parkway main studio on June
       10, 2010. Spirit also provided a copy of an invoice which indicates
       EAS equipment was "set up" at an unspecified location on April 18,
       2010. Spirit stated it would provide a supplement from its engineer
       clarifying when its EAS equipment became defective, was removed for
       repair, and was re-installed,  but the supplement was never submitted.

   III. DISCUSSION

    5. Section 503(b) of the Communications Act of 1934, as amended ("Act"),
       provides that any person who willfully or repeatedly fails to comply
       substantially with the terms and conditions of any license, or
       willfully or repeatedly 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. Section
       312(f)(1) of the Act defines willful as the "conscious and deliberate
       commission or omission of [any] act, irrespective of any intent to
       violate" the law. The legislative history to section 312(f)(1) of the
       Act clarifies that this definition of willful applies to both section
       312 and 503(b) of the Act and the Commission has so interpreted the
       term in the section 503(b) context. The Commission may also assess

   a forfeiture for violations that are merely repeated, and not willful. 
   "Repeated" means that the act was committed or omitted more than once, or
   lasts more than one day.

    6. Every broadcast station is part of the nationwide EAS network and is
       categorized as a participating national EAS source unless the station
       affirmatively requests authority to refrain from participation, and
       that request is approved by the Commission. The EAS enables the
       President and state and local governments to provide immediate and
       emergency communications and information to the general public.  State
       and local area plans identify local primary sources responsible for
       coordinating carriage of common emergency messages from sources such
       as the National Weather Service or local emergency management
       officials.  Required monthly and weekly tests originate from EAS Local
       or State Primary sources and must be retransmitted by the
       participating station. As the nation's emergency warning system, the
       Emergency Alert System is critical to public safety, and we recognize
       the vital role that broadcasters play in ensuring its success. The
       Commission takes seriously any violations of the Rules implementing
       the EAS and expects full compliance from its licensees.

    7. Section 11.35(a) of the Rules requires all broadcast stations to
       ensure that EAS encoders, EAS decoders, and attention signal
       generating and receiving equipment are installed and operational so
       that the monitoring and transmitting functions are available during
       the times the station is in operation. On March 8, 2010, an agent from
       the Norfolk Office observed Station WGTM operate without any EAS
       equipment installed at its main studio. Spirit presented no evidence
       that Station WGTM ever had operational EAS equipment or had ever sent
       or received any EAS weekly or monthly tests. During the inspection,
       the general manager stated that she was not sure when the EAS
       equipment had been removed. The general manager later asserted in
       writing that the EAS equipment had been removed for repair by the
       station's engineer and was in transit for a move to the Martin Luther
       King Parkway main studio during the inspection, but failed to provide
       evidence of when the equipment became defective and was removed from
       service and to clarify when the equipment was re-installed. The
       general manager did not mention the move from the Ward Boulevard main
       studio to the Martin Luther King Parkway main studio during the
       inspection. Because Spirit consciously operated its station and was
       without EAS equipment for more than one day,  we find that the
       apparent violations were willful and repeated. Therefore, based on the
       evidence before us, we find that Spirit apparently willfully and
       repeatedly violated section 11.35 of the Rules by failing to install
       operational EAS equipment.

    8. Section 73.49 of the Rules requires that antenna towers having radio
       frequency potential at the base must be enclosed within effective
       locked fences or other enclosures. On March 8, 2010 and March 10,
       2010, when the station was in operation, an agent from the Norfolk
       Office observed that the gate to the base fence surrounding Spirit's
       antenna structure number 1010779 was opened and not locked. The agent
       also observed that there was no perimeter property fence for the
       property. Spirit states that it does not know when the fence first
       became damaged and unlocked and was not regularly inspecting the fence
       prior to the inspection. Therefore, based on the evidence before us,
       we find that Spirit apparently willfully and repeatedly violated
       section 73.49 of the Rules by failing to enclose an antenna tower with
       radio frequency potential at the base within an effective locked
       fence.

    9. Section 73.3526 of the Rules states that "[e]very permittee or
       licensee of an AM, FM, TV or a Class A station in the commercial
       broadcast services shall maintain a public inspection file containing
       the material" set forth in this section.  The public inspection file
       must be maintained at the main studio of the station and must be
       available for public inspection at any time during regular business
       hours. In response to a request during regular business hours on March
       8, 2010, at its Ward Boulevard main studio, Station WGTM was unable to
       make its public inspection file or any of the required contents of the
       file available. During the inspection, the station's general manager
       stated that she was not sure where the public inspection file was
       located. She made no mention at that time that the station was
       relocating its main studio. Later, in the First LOI Response, the
       general manager asserted that the public inspection file was in
       transit for a move to a new Martin Luther King Parkway main studio at
       the time of the inspection, The general manager admitted, however,
       that at the time of the March 8 inspection, the Martin Luther King
       Parkway main studio was not operational. Under these circumstances,
       Spirit's actions would still constitute a violation of section
       73.3526. That section requires that the public file be made available
       for public inspection at the station's main studio, which at the time
       of the inspection was located on Ward Boulevard. Moreover, Spirit made
       no indication to the agent during the inspection that its public file
       was available at another location; rather, as noted above, the
       station's general manager stated that she did not know where the file
       was located. Thus, based on the evidence before us, we find that
       Spirit apparently willfully and repeatedly violated section 73.3526 of
       the Rules by failing to maintain a public inspection file at its main
       studio and apparently willfully failed to make available its public
       inspection file upon request.

   10. Pursuant to the Commission's Forfeiture Policy Statement and section
       1.80 of the Rules, the base forfeiture amount for EAS equipment not
       installed or operational is $8,000, for AM tower fencing is $7,000,
       and for violation of public file rules is $10,000. In assessing the
       monetary forfeiture amount, we must also take into account the
       statutory factors set forth in section 503(b)(2)(E) of the Act, which
       include the nature, circumstances, extent, and gravity of the
       violations, 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. Applying the Forfeiture Policy
       Statement, section 1.80 of the Rules, and the statutory factors to the
       instant case, we conclude that Spirit is apparently liable for a total
       forfeiture of $25,000, consisting of $8,000 for its EAS violations;
       $7,000 for its AM tower fencing violations; and $10,000 for its public
       inspection file violations.

   11. We direct Spirit to submit a statement signed under penalty of perjury
       by an officer or director of Spirit stating that: (1) it has installed
       operational EAS equipment in its main studio in compliance with
       section 11.35 of the Rules; (2) the base fence surrounding Station
       WGTM(AM)'s antenna structure number 1010779 is locked and effective,
       in compliance with section 73.49 of the Rules; and (3) a complete
       public inspection file is available at Station WGTM(AM)'s main studio.
       This statement must be provided to the Norfolk Office at the address
       listed in paragraph 16 within thirty days after the release date of
       this NAL.

   IV. ORDERING CLAUSES

   12. Accordingly, IT IS ORDERED that, pursuant to section 503(b) of the
       Communications Act of 1934, as amended, and sections 0.111, 0.204,
       0.311, 0.314, and 1.80 of the Commission's Rules, Spirit Broadcasting,
       Inc., is hereby NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE
       in the amount of twenty-five thousand dollars ($25,000) for violations
       of sections 11.35, 73.49, and 73.3526 of the Rules.

   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 for Forfeiture and Order, Spirit
       Broadcasting, 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. IT IS FURTHER ORDERED that Spirit Broadcasting, Inc. SHALL SUBMIT a
       sworn statement as described in paragraph 11 to the Norfolk Office
       within thirty days after the release date of this Notice of Apparent
       Liability for Forfeiture and Order.

   15. Payment of the forfeiture must be made by credit card, check or
       similar instrument, payable to the order of the Federal Communications
       Commission. The payment must include the 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 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.   If you have questions regarding payment
       procedures, please contact the Financial Operations Group Help Desk at
       1-877-480-3201 or Email: ARINQUIRIES@fcc.gov. Spirit Broadcasting Inc.
       shall send electronic notification on the date said payment is made to
       SCR-Response@fcc.gov.

   16. The written statement seeking reduction or cancellation of the
       proposed forfeiture, if any, must include a detailed factual statement
       supported by appropriate documentation and affidavits pursuant to
       sections 1.80(f)(3) and 1.16 of the Rules. The written statement must
       be mailed to Federal Communications Commission, Enforcement Bureau,
       South Central  Region, Norfolk Office, 1457 Mount Pleasant Road Suite
       113, Chesapeake VA 23322 and must include the NAL/Acct. No. referenced
       in the caption. Spirit also shall email the written response to 
       SCR-Response@fcc.gov.

   17. 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.

   18. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture and Order shall be sent by both Certified Mail, Return
       Receipt Requested, and regular mail, to Spirit Broadcasting, Inc. at
       P.O. Box 3837, Wilson, NC 27895.

   FEDERAL COMMUNICATIONS COMMISSION

   Luther Bolden

   Resident Agent

   Norfolk Office

   South Central Region

   Enforcement Bureau

   47 C.F.R. S:S: 11.35, 73.49, 73.3526.

   Id.

   Letter from Luther Bolden, Resident Agent, Norfolk Office, to Spirit
   Broadcasting, Inc., dated August 25, 2010.

   See Letter from Celestine Willis, President, Spirit Broadcasting, Inc., to
   Luther Bolden, Resident Agent, Norfolk Office, dated September 13, 2010
   ("First LOI Response").

   Letter from Luther Bolden, Resident Agent, Norfolk Office, to Spirit
   Broadcasting, Inc., dated November 9, 2010.

   See Letter from Celestine Willis, President, Spirit Broadcasting, Inc., to
   Luther Bolden, Resident Agent, Norfolk Office, dated November 23, 2010
   ("Second LOI Response").

   Id. Spirit states the EAS was installed at the transmitter site on April
   18, 2010, but the invoice did not specify the installation location.

   Id.

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

   47 U.S.C. S: 312(f)(1).

   H.R. Conf. Rep. No. 97-765 at 51 (1982) ("This provision [inserted in
   section 312] defines the terms `willful' and `repeated' for purposes of
   section 312, and for any other relevant section of the act (e.g., section
   503) . . . . As defined[,] . . . `willful' means that the licensee knew
   that he was doing the act in question, regardless of whether there was an
   intent to violate the law. `Repeated' means more than once, or where the
   act is continuous, for more than one day. Whether an act is considered to
   be `continuous' would depend upon the circumstances in each case. The
   definitions are intended primarily to clarify the language in sections 312
   and 503, and are consistent with the Commission's application of those
   terms . . . .").

   See, e.g., Application for Review of Southern California Broadcasting Co.,
   Memorandum Opinion and Order, 6 FCC Rcd 4387, 4388 (1991) recon. denied, 7
   FCC Rcd 3454 (1992) ("Southern California Broadcasting Co.").

   See, e.g., Callais Cablevision, Inc., Notice of Apparent Liability for
   Monetary Forfeiture, 16 FCC Rcd 1359, 1362 P: 10 (2001) ("Callais
   Cablevision, Inc.") (proposing a forfeiture for, inter alia, a cable
   television operator's repeated signal leakage).

   Southern California Broadcasting Co., 6 FCC Rcd at 4388, P: 5; Callais
   Cablevision, Inc., 16 FCC Rcd at 1362, P: 9.

   47 C.F.R. S:S: 11.11, 11.41.

   47 C.F.R. S:S: 11.1, 11.21.

   47 C.F.R. S: 11.18.  State EAS plans contain guidelines that must be
   followed by broadcast and cable personnel, emergency officials and
   National Weather Service personnel to activate the EAS for state and local
   emergency alerts.  The state plans include the EAS header codes and
   messages to be transmitted by the primary state, local and relay EAS
   sources.

   47 C.F.R. S:11.35(a).

   See 47 C.F.R. S: 11.35(a) (requiring EAS Participants to make entries in
   the broadcast station log explaining why any EAS tests or activations were
   not received or sent).

   Section 11.35(b) of the Rules allows licensees to operate without
   defective EAS equipment pending its repair or replacement for 60 days
   without further FCC authority. Entries must be made in the broadcast
   station log showing the date and time the equipment was removed and
   restored to service. 47 C.F.R. S: 11.35(b). Because Spirit has no records
   of when its EAS equipment became defective or was removed for repair and
   has no evidence of having sent or received any EAS tests, Spirit has not
   shown that it was without effective EAS equipment pending its repair for
   less than 60 days.

   Spirit provided an unsigned invoice stating EAS equipment had been
   re-installed at an unspecified location on April 18, 2010, so Spirit may
   have been without operational equipment until at least April 18, 2010, but
   in any case it installed EAS equipment by June 10, 2010 at its new main
   studio. Second LOI Response at 2.

   47 C.F.R. S: 73.49

   First LOI Response at 4-5.

   47 C.F.R. S: 73.3526(a)(2).

   47 C.F.R. S: 73.3526(b).

   47 C.F.R. S: 73.3526(c).

   First LOI Response at 2.

   Id.

   The Commission's Forfeiture Policy Statement and Amendment of Section 1.80
   of the Rules to Incorporate the Forfeiture Guidelines, Report and Order,
   12 FCC Rcd 17087 (1997) ("Forfeiture Policy Statement"), recon. denied, 15
   FCC Rcd 303 (1999); 47 C.F.R. S: 1.80.

   47 U.S.C. S: 503(b)(2)(E).

   47 U.S.C. S: 503(b); 47 C.F.R. S:S: 0.111, 0.204, 0.311, 0.314, 1.80,
   11.35, 73.49, 73.3526.

   See 47 C.F.R. S:1.1914.

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission DA 11-1194

                                       6

   Federal Communications Commission DA 11-1194