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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

   In the Matter of Blue Skies Broadcasting Corporation Licensee of Broadcast
   Station KSKT-CA San Marcos, California ) ) ) ) ) ) ) File No.:
   EB-10-SD-0102 NAL/Acct. No.: 201132940005 FRN: 0003777406 Facility ID No.:
   58927




                                FORFEITURE ORDER

   Adopted: November 20, 2013 Released: November 21, 2013

   By the Regional Director, Western Region, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Forfeiture Order, we issue a monetary forfeiture in the amount
       of five hundred dollars ($500) to Blue Skies Broadcasting Corporation
       (Blue Skies), licensee of Station KSKT-CA, in San Marcos, California,
       for willfully and repeatedly violating Section 73.3526(e)(11)(i)  of
       the Commission's rules (Rules), which requires broadcast stations to
       maintain complete issues/programs lists in their public inspection
       files.^ The noted violations involve Blue Skies' failure to maintain
       multiple issues/programs lists in the Station KSKT-CA public
       inspection file. In addition, no later than thirty (30) calendar days
       from the date of this Forfeiture Order, Blue Skies must submit a
       statement signed under penalty of perjury that the Station KSKT-CA
       public inspection file is in compliance with Section 73.3526 of the
       Rules.

   II. BACKGROUND

    2. On June 22, 2010, agents from the Enforcement Bureau's San Diego
       Office (San Diego Office) conducted an inspection with personnel of
       Station KSKT-CA at the station's main studio in Escondido, California.
       The agents reviewed the materials in Station KSKT-CA's public
       inspection file and found that the file was missing 34 quarterly TV
       issues/programs lists - all quarterly TV issues/programs lists since
       the Commission granted Station KSKT-CA's license on August 9, 2001.^
       On March 3, 2011, the San Diego Office issued a letter of inquiry
       (LOI) to Blue Skies requesting information on the status of Station
       KSKT-CA's public inspection file and for a list of documents currently
       in the file.^ On March 21, 2011, the San Diego Office received a reply
       to the LOI from Blue Skies' President.^ In its LOI Response,  Blue
       Skies listed the documents currently in the Station KSKT-CA public
       inspection file.^ That list did not include any quarterly
       issues/programs lists.

    3. On May 26, 2011, the San Diego Office issued a Notice of Apparent
       Liability for Forfeiture (NAL) in the amount of $14,000 to Blue Skies
       for failing to maintain a complete public inspection file.^ Blue Skies
       responded to the NAL on June 10, 2011.^ In its NAL Response, Blue
       Skies argues that the proposed forfeiture amount is out of proportion
       to the seriousness of the violation^ and excessive compared to
       forfeitures proposed in similar cases.^ Blue Skies also claims that it
       lacks the ability to pay the proposed forfeiture and provides tax
       returns to support its claim.^

   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.^ In examining Blue Skies' NAL 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.^ We consider Blue Skies' NAL Response in light of these
       statutory factors and find that reduction of the forfeiture is
       warranted for the reasons discussed below.

    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 specifies that the
       file shall be available for public inspection at any time during
       regular business hours.^ Section 73.3526(e)(11)(i) of the Rules
       requires Class A and commercial TV licensees to place in their public
       inspection file for each calendar quarter a list of programs that have
       provided the station's most significant treatment of community issues
       during the preceding three month period.^ This list is known as the
       "TV issues/programs list."^ Copies of the issues/programs list must be
       retained in the public inspection file until final action has been
       taken on the station's next license renewal application.^ On June 22,
       2010, San Diego agents reviewed Station KSKT-CA's public inspection
       file and found that it was missing 34 quarterly TV issues/programs
       lists. As evidenced by its LOI Response,  Blue Skies took no action
       subsequent to the inspection to ensure that the required quarterly TV
       issues/programs lists were available in the Station KSKT-CA public
       inspection file.

    6. Blue Skies does not dispute that the quarterly issues/programs lists
       were missing from the Station KSKT-CA public inspection file as
       described above. Rather, Blue Skies argues that the proposed
       forfeiture amount is out of proportion to the seriousness of the
       violation and excessive compared to forfeitures proposed in similar
       cases.^ We find no merit to Blues Skies' arguments. The Commission has
       determined that forfeitures are appropriate in cases where
       issues/programs lists are missing from the public inspection file and
       underscored the seriousness of such violations, stating "[t]hese lists
       enable citizens to determine whether local broadcast facilities are
       assessing and addressing the uniquely local concerns and issues
       affecting the station's community of license."^ Contrary to Blues
       Skies' assertion,^ a proposed forfeiture of $14,000 for failing to
       make all or most of the issues/programs lists for a license term
       available for public inspection is consistent with current procedure
       and precedent.^

    7. Blue Skies also claims an inability to pay the proposed forfeiture and
       produces three years of tax forms to support its claim. With regard to
       an individual or entity's inability to pay claim, the Commission has
       determined that generally gross revenues are the best indicator of an
       ability to pay a forfeiture.^ Based on the financial documents
       provided by Blue Skies, we find sufficient basis to reduce the
       forfeiture to $500.^ However, we caution Blue Skies that a party's
       inability to pay is only one factor in our forfeiture calculation
       analysis, and is not dispositive.^ We have previously rejected
       inability to pay claims in cases of repeated or otherwise egregious
       violations.^ Therefore, future violations of this kind may result in
       significantly higher forfeitures that may not be reduced due to Blue
       Skies' financial circumstances.

    8. We have examined Blue Skies' NAL Response pursuant to the statutory
       factors above and in conjunction with the Forfeiture Policy Statement.
       As a result of our review, we conclude that Blue Skies willfully and
       repeatedly violated Section 73.3526(e)(11)(i) of the Rules.
       Considering the entire record and the factors listed above, we find
       that a forfeiture in the amount of $500 is warranted. We also note
       that Blue Skies did not indicate in its NAL  Response whether the
       public inspection file for Station KSKT-CA has come into compliance
       with the requirements of Section 73.3526(e)(11)(i) of the Rules. We
       therefore order Blue Skies to submit a written statement pursuant to
       Section 1.16 of the Rules^ signed under penalty of perjury by an
       officer or director of Blue Skies within thirty (30) calendar days of
       the release date of this Forfeiture Order  that Station KSKT-CA is now
       in compliance with Section 73.3526(e)(11)(i)  of the Rules. Continued
       failure to comply with this order may result in additional enforcement
       action, including monetary penalties.

   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(f)(4) of the Commission's Rules, Blue Skies
       Broadcasting Corporation IS LIABLE FOR A MONETARY FORFEITURE in the
       amount of five hundred dollars ($500) for willfully and repeatedly
       violating Section 73.3526(e)(11)(i) of the Commission's Rules.^

   10. IT IS FURTHER ORDERED that Blue Skies Broadcasting Corporation SHALL
       SUBMIT a written statement, as described in paragraph 8, within thirty
       (30) calendar days of the release date of this Forfeiture Order. The
       statement must be mailed to Federal Communications Commission,
       Enforcement Bureau, Western Region, San Diego Office, 4542 Ruffner
       Street - Suite 370, San Diego, CA 92111. Blue Skies Broadcasting
       Corporation shall also e-mail the written statement to
       WR-Response@fcc.gov.

   11. Payment of the forfeiture shall be made in the manner provided for in
       Section 1.80 of the Rules within thirty (30) calendar days after the
       release date of this Forfeiture Order.^  If the forfeiture is not paid
       within the period specified, the case may be referred to the U.S.
       Department of Justice for enforcement of the forfeiture pursuant to
       Section 504(a) of the Act.^  Blue Skies Broadcasting Corporation shall
       send electronic notification of payment to WR-Response@fcc.gov on the
       date said payment is made.

   12. The payment must be made by check or similar instrument, wire
       transfer, or credit card, and must include the NAL/Account Number and
       FRN referenced above. 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 making full payment over time 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. IT IS FURTHER ORDERED that a copy of this Forfeiture Order shall be
   sent by both First Class Mail and Certified Mail, Return Receipt Requested
   to Blue Skies Broadcasting Corporation, 5220 Campo Road, Woodland Hills,
   California, 91364, and to Peter Tannenwald, Esquire, its counsel of
   record, at Fletcher, Heald & Hildreth, 1300 North 17^th Street, 11^th
   Floor, Arlington, Virginia 22209.

   FEDERAL COMMUNICATIONS COMMISSION

   Rebecca L. Dorch

   Regional Director, Western Region

   Enforcement Bureau

   ^ 47 C.F.R. S 73.3526(e)(11)(i).

   ^ See File No. BLTTA-20010712AAA, granted August 9, 2001. Blue Skies filed
   an application to renew the Station KSKT-CA license on August 9, 2006. See
   File No. BRTTA-20060809AAQ. That application is still pending.

   ^ See Letter of Inquiry from James T. Lyon, Acting District Director, San
   Diego Office, Western Region, FCC Enforcement Bureau, to Blue Skies
   Broadcasting Corporation (Mar. 3, 2011) (on file in EB-10-SD-0102) (LOI).

   ^ See Letter from Robert Ruiz, President, Blue Skies Broadcasting
   Corporation, to James T. Lyon, Acting District Director, San Diego Office,
   Western Region, FCC Enforcement Bureau (Mar. 21, 2011) (on file in
   EB-10-SD-0102) (LOI Response).

   ^ Id.

   ^ Blue Skies Broadcasting Corporation, Notice of Apparent Liability for
   Forfeiture and Order, 26 FCC Rcd 7698 (Enf. Bur. 2011) (NAL).

   ^ See Response of Blue Skies Broadcasting Corporation (June 10, 2011) (on
   file in EB-10-SD-0102) (NAL Response).

   ^ Id. at 2-4.

   ^ Id. at 4-6.

   ^ Id. at 1-2.

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

   ^ 47 C.F.R. S 1.80.

   ^ 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), recons. denied, 15 FCC Rcd 303 (1999)
   (Forfeiture Policy Statement).

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

   ^ 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)(11)(i).

   ^ Id.

   ^ Id.

   ^ NAL Response at 2-6. Blue Skies also states "[m]ore than five years ago
   [its attorney] filed a Petition for Rulemaking (RM-11322) proposing that
   the Public File Rules be abolished on the grounds they serve no useful
   purpose." Id. at 4. A review of Commission records shows that RM-11322 is
   entitled "Joint Petition for Rulemaking to Further Reform the
   International Settlements Policy, RM-11322 (filed by AT&T Inc., Sprint
   Nextel Corporation, and Verizon on Mar. 13, 2006). See Consumer &
   Governmental Affairs Bureau Reference Information Center Petition for
   Rulemakings Filed, Public Notice, Report No. 2764 (rel. Mar. 20, 2006). In
   any event, as the Commission has declined to abolish the public file
   rules, the Enforcement Bureau will continue to vigorously enforce them.

   ^ Lazer Licenses, LLC, Order on Review, 27 FCC Rcd 626, 629 (2012)
   (affirming an Enforcement Bureau order assessing forfeitures on three
   broadcast stations for failing to make available multiple issues/programs
   lists).

   ^ Blue Skies cites to 15 Notices of Apparent Liability for Forfeiture
   (Notices) issued by the Media Bureau on October 8, 2003, each for $3000,
   concerning issues/programs list violations. We note that in each of these
   Notices, the issues/programs list violation was self-reported by the
   licensee, and that, unlike Blue Skies, the licensee had remedied the
   violation prior to the report to the Commission. See, e.g., Mel Wheeler,
   Inc., c/o Vincent A. Pepper, Esq.,  Notice of Apparent Liability for
   Forfeiture, 18 FCC Rcd 20215 (Med. Bur. 2003) (proposed forfeiture of
   $3,000 for self-reporting that three issues/programs lists were not timely
   placed in public inspection file); Kenneth E. Satten, Esq.,  Notice of
   Apparent Liability for Forfeiture, 18 FCC Rcd 20175 (Med. Bur. 2003)
   (proposed forfeiture of $3,000 for self-reporting that one issues/programs
   list was not timely placed in public inspection file); David Tillotson,
   Esq., Notice of Apparent Liability for Forfeiture, 18 FCC Rcd 20151 (Med.
   Bur. 2003) (proposed forfeiture of $3,000 for self-reporting that
   issues/programs lists were not timely placed in public inspection file).

   ^ See, e.g., Vision Latina Broadcasting, Inc., Notice of Apparent
   Liability for Forfeiture, 27 FCC Rcd 6258 (Enf. Bur. 2012) (proposing a
   $15,000 forfeiture for failing to make any issues/programs lists available
   for inspection); L. Stanley Wall, Notice of Apparent Liability for
   Forfeiture and Order, 26 FC Rcd 8506 (Enf. Bur. 2011) (proposing a $15,000
   forfeiture for failing to make all but one issues/programs list available
   for inspection). Blue Skies argues that the forfeiture amount proposed is
   inconsistent with the Enforcement Bureau's decision in Daniel D. Smith,
   Notice of Apparent Liability for Forfeiture, 25 FCC Rcd 15874 (Enf. Bur.
   2010) (Smith). NAL Response at 3. We disagree. In Smith, the station's
   public inspection file was missing five issues/programs lists and the
   Enforcement Bureau proposed a forfeiture of $4,000. In the instant case,
   Station KSKT-CA was missing 34 issues/programs lists, resulting in a
   proposed forfeiture of $14,000.

   ^ See PJB Communications of Virginia, Inc., Memorandum Opinion and Order,
   7 FCC Rcd 2088 (1992) (forfeiture not deemed excessive where it
   represented approximately 2.02 percent of the violator's gross revenues);
   Hoosier Broadcasting Corp.,  Memorandum Opinion and Order, 15 FCC Rcd 8640
   (2000) (forfeiture not deemed excessive where it represented approximately
   7.6 percent of the violator's gross revenues); Local Long Distance, Inc.,
   Order of Forfeiture, 15 FCC Rcd 24385 (2000) (forfeiture not deemed
   excessive where it represented approximately 7.9 percent of the violator's
   gross revenues).

   ^ This forfeiture amount falls within the percentage range that the
   Commission has previously found acceptable. See supra note 24.

   ^ See 47 U.S.C. S 503(b)(2)(E) (requiring Commission to 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 such other matters as justice may require).

   ^ Kevin W. Bondy, Forfeiture Order, 26 FCC Rcd 7840 (Enf. Bur. 2011)
   (holding that violator's repeated acts of malicious and intentional
   interference outweighed evidence concerning his ability to pay) (petition
   for reconsideration pending); Hodson Broadcasting Corp., Forfeiture Order,
   24 FCC Rcd 13699 (Enf. Bur. 2009) (holding that permittee's continued
   operation at variance with its construction permit constituted an
   intentional and continuous violation, which outweighed permittee's
   evidence concerning its ability to pay the proposed forfeitures).

   ^ 47 C.F.R. S 1.16.

   ^ 47 U.S.C. S 503(b), 47 C.F.R. SS 0.111, 0.204, 0.311, 0.314, 1.80(f)(4),
   73.3526(e)(11)(i).

   ^ 47 C.F.R. S 1.80.

   ^ 47 U.S.C. S 504(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.

   Federal Communications Commission DA 13-2214

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   Federal Communications Commission DA 13-2214