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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                            )                                
                                                                             
                                            )                                
     In the Matter of                                                        
                                            )   File No.: EB-11-DL-0058      
     PBI, LLC                                                                
                                            )   NAL/Acct. No.: 201232500005  
     Licensee of Stations KDDD(AM) and                                       
     KDDD-FM,                               )   Facility ID No.: 74311       
                                                                             
     Dumas, TX                              )   FRN: 0015162472              
                                                                             
                                            )                                
                                                                             
                                            )                                



             NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

   Adopted: July 5, 2012  Released: July 5, 2012

   By the District Director, Dallas Office, South Central Region, Enforcement
   Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture and Order (NAL),
       we find that PBI, LLC, licensee of Stations KDDD(AM) and KDDD-FM, in
       Dumas, Texas (PBI), apparently willfully and repeatedly violated
       Section 11.35(a) of the Commission's rules (Rules), by failing to
       maintain operational emergency alert system (EAS) equipment and
       failing to keep records indicating why EAS tests were not received. We
       conclude that PBI, LLC is apparently liable for a forfeiture in the
       amount of eight thousand dollars ($8,000). In addition, we direct PBI
       to submit, no later than thirty (30) calendar days from the date of
       this NAL, a statement signed under penalty of perjury that it is in
       compliance with Section 11.35(a) of the Rules.

   II. BACKGROUND

    2. On August 16, 2011, agents from the Enforcement Bureau's Dallas Office
       (Dallas Office) inspected the main studio of co-located and co-owned
       Stations KDDD(AM) and KDDD-FM and observed that the Stations' EAS
       system was not fully operational. Although the EAS system was able to
       transmit EAS tests, it was unable to receive tests. After a failed
       demonstration of the EAS equipment's ability to receive any monitoring
       source, PBI's owner stated that there was a problem with the antenna.
       According to the Stations' EAS logs, the last EAS test was received on
       October 30, 2008, and there were no entries or explanations in the
       logs for any missing received tests.

   III. DISCUSSION

    3. 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 Sections 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.  The term "repeated" means the commission or omission
       of such act more than once or for more than one day. 

     A. Failure to Maintain Operational Readiness of Emergency Alert System
        Equipment

    4. 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 the 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 the 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 the 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.

    5. Section 11.35(a) of the Rules states that all "EAS Participants are
       responsible for ensuring that EAS Encoders, EAS Decoders and Attention
       Signal generating and receiving equipment used as part of the EAS are
       installed so that the monitoring and transmitting functions are
       available during the times the stations and systems are in operation.
       Additionally, EAS Participants must determine the cause of any failure
       to receive the required tests or activations specified in S:
       11.61(a)(1) and (a)(2). Appropriate entries indicating reasons why any
       tests were not received must be made in the broadcast station log."

    6. On August 16, 2011, agents from the Dallas Office inspected the EAS
       equipment for co-located and co-owned Stations KDDD(AM) and KDDD-FM
       and observed that the equipment was unable to receive tests or a
       monitoring source. The most recent received test in the Stations' EAS
       logs was October 20, 2008, and there was no other evidence of a more
       recent received EAS test. PBI also failed to make entries in any log
       explaining why EAS tests were not received after October 20, 2008. 
       Based on the evidence before us, we find that PBI apparently willfully
       and repeatedly violated Section 11.35(a) of the Rules by failing to
       ensure the operational readiness of the EAS equipment for Stations
       KDDD(AM) and KDDD-FM EAS and failing to explain in station logs why
       EAS tests were not received.

     A. Proposed Forfeiture Amount and Reporting Requirement

    7. Pursuant to the Commission's Forfeiture Policy Statement and Section
       1.80 of the Rules, the base forfeiture amount for EAS equipment not
       operational is $8,000. 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 PBI 
       is apparently liable for a total forfeiture in the amount of $8,000,
       which is consistent with other recent cases involving similar facts.

    8. We further order PBI to submit a written statement pursuant to Section
       1.16 of the Rules signed under penalty of perjury by PBI stating  that
       the EAS equipment for Stations KDDD(AM) and KDDD-FM is fully
       operational. This statement must be provided to the Dallas Office at
       the address listed in paragraph 14 within thirty (30) calendar days of
       the release of this NAL.

   IV. ORDERING CLAUSES

    9. 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, PBI, LLC is hereby
       NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the amount of
       eight  thousand dollars ($8,000) for violations of Section 11.35(a) of
       the Rules.

   10. IT IS FURTHER ORDERED that, pursuant to Section 1.80 of the
       Commission's rules, within thirty (30) calendar days of the release
       date of this Notice of Apparent Liability for Forfeiture and Order,
       PBI, LLC, SHALL PAY the full amount of the proposed forfeiture or
       SHALL FILE a written statement seeking reduction or cancellation of
       the proposed forfeiture.

   11. IT IS FURTHER ORDERED that PBI, LLC, SHALL SUBMIT a written statement,
       as described in paragraph 8, within thirty (30) calendar days of the
       release date of this Notice of Apparent Liability for Forfeiture and
       Order. The statement must be mailed to Federal Communications
       Commission, Enforcement Bureau, South Central Region, Dallas Office,
       9330 LBJ Freeway, Suite 1170, Dallas, TX, 75243. PBI, LLC shall also
       e-mail the written statement to SCR-Response@fcc.gov.

   12. Payment of the forfeiture must be made by check or similar instrument,
       wire transfer, or credit card, and must include the NAL/Account number
       and FRN referenced above. PBI, LLC shall send electronic notification
       of payment to SCR-Response@fcc.gov on the date said payment is made.
       Regardless of the form of payment, a completed FCC Form 159
       (Remittance Advice) must be submitted. When completing the FCC Form
       159, enter the Account Number in block number 23A (call sign/other ID)
       and enter the letters "FORF" in block number 24A (payment type
       code).   Below are additional instructions you should follow based on
       the form of payment you select:

     * Payment by check or money order must be made payable to the order of
       the Federal Communications Commission.  Such payments (along with the
       completed Form 159) must be mailed to Federal Communications
       Commission, P.O. Box 979088, St. Louis, MO 63197-9000, or sent
       via overnight mail to U.S. Bank - Government Lockbox #979088,
       SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101. 

     * Payment by wire transfer must be made to ABA Number 021030004,
       receiving bank TREAS/NYC, and Account Number 27000001.  To complete
       the wire transfer and ensure appropriate crediting of the wired funds,
       a completed Form 159 must be faxed to U.S. Bank at (314) 418-4232 on
       the same business day the wire transfer is initiated. 

     * Payment by credit card must be made by providing the required credit
       card information on FCC Form 159 and signing and dating the Form 159
       to authorize the credit card payment. The completed Form 159 must then
       be mailed to Federal Communications Commission, P.O. Box 979088, St.
       Louis, MO 63197-9000, or sent via overnight mail to U.S. Bank -
       Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St.
       Louis, MO 63101. 

   13. Any request for full payment under an installment plan should be sent
       to:  Chief Financial Officer-Financial Operations, Federal
       Communications Commission, 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 by
       phone, 1-877-480-3201, or by e-mail, ARINQUIRIES@fcc.gov.

   14. 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 1.16 and 1.80(f)(3) of the Rules. Mail the written statement
       to Federal Communications Commission, Enforcement Bureau, South
       Central Region, Dallas Office, 9330 LBJ Freeway, Suite 1170, Dallas,
       TX, 75243, and include the NAL/Acct. No. referenced in the caption.
       PBI, LLC also shall email the written response to
       SCR-Response@fcc.gov.

   15. 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.

   16. 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 First Class Mail to PBI, LLC at P.O. Box 396,
       Dumas, TX 79029.

   FEDERAL COMMUNICATIONS COMMISSION

   James D. Wells

   District Director

   Dallas Office

   South Central Region

   Enforcement Bureau

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

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

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

   H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 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), recons. denied,
   7 FCC Rcd 3454 (1992).

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

   Section 312(f)(2) of the Act, 47 U.S.C. S: 312(f)(2), which also applies
   to violations for which forfeitures are assessed under Section 503(b) of
   the Act, provides that "[t]he 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." See Callais Cablevision, Inc., 16 FCC Rcd  at
   1362.

   47 C.F.R. S:S: 11.11, 11.19, 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: 11.21.

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

   See 47 C.F.R. S: 11.51(l) (allowing co-owned and co-located stations to
   provide EAS transmitting requirements with one EAS encoder).

   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), recons. denied, 15
   FCC Rcd 303 (1999); 47 C.F.R. S: 1.80.

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

   See, e.g., Upper Peninsula Communications Inc., Forfeiture Order, DA
   12-750, 2012 WL 1702799 (Enf. Bur. rel. May 14, 2012) (imposing $8,000
   forfeiture for failing to install EAS equipment); Walter M. Czura, Notice
   of Apparent Liability for Forfeiture and Order, 27 FCC Rcd 2285 (Enf. Bur.
   2012) (proposing $8,000 forfeiture for failing to maintain functioning EAS
   equipment); SCI Cable, Inc., Notice of Apparent Liability for Forfeiture
   and Order, 26 FCC Rcd 12927 (Enf. Bur. 2011) (proposing $8,000 forfeiture
   for failing to install EAS equipment); Spirit Broadcasting, Inc., Notice
   of Apparent Liability for Forfeiture and Order, 26 FCC Rcd 10212 (Enf.
   Bur. 2011) (proposing $8,000 forfeiture for failing to install EAS
   equipment).

   47 C.F.R. S: 1.16.

   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(a).

   An FCC Form 159 and detailed instructions for completing the form may be
   obtained at http://www.fcc.gov/Forms/Form159/159.pdf.

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

   47 C.F.R. S:S: 1.16, 1.80(f)(3).

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission DA 12-1080

                                       2

   Federal Communications Commission DA 12-1080