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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

   In the Matter of The L.R. Radio Group, Inc. Licensee of Station KPIR
   Granbury, Texas ) ) ) ) ) ) ) File No.: EB-11-DL-0014 NAL/Acct. No.:
   201232500004 FRN: 0018390310 Facility ID No.: 30195




                          MEMORANDUM OPINION AND ORDER

   Adopted: January 23, 2014 Released: January 23, 2014

   By the Chief, Enforcement Bureau:

   I. INTRODUCTION

    1. In this Memorandum Opinion and Order, issued pursuant to Section 405
       of the Communications Act of 1934, as amended (Act),^ and Section
       1.106 of the Commission's rules (Rules),^ we grant, in part, and deny,
       in part, the petition for reconsideration (Petition) ^ filed by The
       L.R. Radio Group, Inc. (L&R).^ L&R seeks reconsideration of the
       Forfeiture Order issued by the Enforcement Bureau's South Central
       Region in this proceeding.^ The Forfeiture Order imposed a monetary
       forfeiture in the amount of eight thousand dollars ($8,000) against
       L&R for willfully and repeatedly violating Section 73.3526 of the
       Rules, by failing to make available a complete public inspection
       file.^ Based on L&R's established inability to pay the forfeiture, and
       consistent with Commission precedent, we reduce the amount to two
       thousand eight hundred seventy five dollars ($2,875).

   II. BACKGROUND

    2. In its Petition, L&R requests reduction or rescission of the
       forfeiture based on its inability to pay.^ Specifically, L&R states
       that it only owns a stand-alone AM station in a small town and is
       operating at a net loss.^ Alternatively, L&R requests to pay the
       forfeiture in monthly installments of $500.^

   III. DISCUSSION

    3. Petitions for reconsideration are granted only in limited
       circumstances. Reconsideration is appropriate only where the
       petitioner either demonstrates a material error or omission in the
       underlying order, raises additional facts not known or not existing
       until after the petitioner's last opportunity to present such matters,
       or the Commission determines that consideration of the facts is
       required in the public interest.^ The latter is the case here.
       Although L&R could have requested a reduction based on inability to
       pay in response to the NAL, because Section 503(b)(2)(E) of the Act^
       directs us to consider a violator's ability to pay when determining a
       forfeiture penalty, we conclude the public interest requires us to
       evaluate L&R's petition at this time.

    4. When faced with claims alleging an inability to pay, the Commission
       has determined that, in general, gross income or revenues are the best
       indicator of an individual or entity's ability to pay a forfeiture.^
       Based on the financial documents provided by L&R, we find that there
       is a sufficient basis to reduce (but not cancel) the forfeiture to
       $2,875.^ We caution L&R, however, that a party's inability to pay is
       only one factor in our forfeiture calculation analysis, and is not
       dispositive.^ In this regard, 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 L&R's financial
       circumstances. We therefore grant, in part, and deny, in part, L&R's
       Petition.

   IV. ORDERING CLAUSES

    5. Accordingly, IT IS ORDERED, pursuant to Section 405 of the
       Communications Act of 1934, as amended,^ and Section 1.106 of the
       Commission's rules,^ that the petition for reconsideration filed by
       The L.R. Radio Group, Inc. IS GRANTED IN PART AND DENIED IN PART.

    6. IT IS ALSO 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,^ The L.R. Radio Group, Inc. IS
       LIABLE FOR A MONETARY FORFEITURE in the amount of two thousand eight
       hundred seventy five dollars ($2,875) for violations of Section
       73.3526 of the Act.^

    7. 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 Memorandum Opinion and 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.^  The L.R. Radio Group, Inc.
       shall send electronic notification of payment to SCR-Response@fcc.gov
       on the date said payment is made. 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.

    8. 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,
       [1]ARINQUIRIES@fcc.gov.

    9. IT IS FURTHER ORDERED that this Memorandum Opinion and Order shall be
       sent by both First Class Mail and Certified Mail, Return Receipt
       Requested, to The L.R. Radio Group, Inc.at 1620 Weatherford Highway,
       Granbury, Texas 76048 and to its counsel, Anne Goodwin Crump,
       Fletcher, Heald & Hildreth, 1300 North 17^th Street, 11^th Floor,
       Arlington, VA 22209.

   FEDERAL COMMUNICATIONS COMMISSION

   P. Michele Ellison

   Chief, Enforcement Bureau

   ^ 47 U.S.C. S 405.

   ^ 47 C.F.R. S 1.106.

   ^ See Letter from Anne Goodwin Crump, Counsel for The L.R. Radio Group,
   Inc., to Federal Communications Commissioner (Oct. 26, 2012) (on file in
   EB-11-DL-0014) (Petition).

   ^ See The L.R. Radio Group, Inc., Forfeiture Order, 27 FCC Rcd 11260 (Enf.
   Bur. 2012) (Forfeiture Order), aff'g, Notice of Apparent Liability, 27 FCC
   Rcd 977 (Enf. Bur. 2012) (NAL).

   ^ 47 C.F.R. S 73.3526.

   ^ See Petition, supra note 3.

   ^ Id. at 1-2.

   ^ Id. at 2.

   ^ See 47 C.F.R. S 1.106(c); EZ Sacramento, Inc., Memorandum Opinion and
   Order, 15 FCC Rcd 18257, 18257, para. 2 (Enf. Bur. 2000) (citing WWIZ,
   Inc., Memorandum Opinion and Order, 37 FCC 685, 686 (1964), aff'd sub.
   nom. Lorain Journal Co. v. FCC, 351 F.2d 824 (D.C. Cir. 1965), cert.
   denied, 383 U.S. 967 (1966)). See, e.g., Ely Radio, LLC, Memorandum
   Opinion and Order, 27 FCC Rcd 7608, 7610, para. 6 (Enf. Bur. 2012)
   (providing standard of review for petitions for reconsideration).

   ^ 47 U.S.C. S 503(b)(2)(E); see also 47 C.F.R. S 1.80(b)(8).

   ^ See Local Long Distance, Inc., Forfeiture Order, 16 FCC Rcd 24385 (Enf.
   Bur. 2000) (forfeiture not deemed excessive where it represented
   approximately 7.9 percent of the violator's gross revenues); Hoosier
   Broad. Corp., Forfeiture Order, 15 FCC Rcd 8640 (Enf. Bur. 2002)
   (forfeiture not deemed excessive where it represented approximately 7.6
   percent of the violator's gross revenues).

   ^ This forfeiture amount falls within the percentage range that the
   Commission has previously found acceptable. See supra para. 4, note 11. If
   L&R finds it financially infeasible to make full payment of this amount
   within 30 days, it can request an installment plan, as described in
   paragraph 8, infra, of this Memorandum Opinion and Order.

   ^ 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).

   ^ See, e.g., Whisler Fleurinor, Forfeiture Order, 28 FCC Rcd 1087 (Enf.
   Bur. 2013) (affirming $25,000 forfeiture and rejecting inability to pay
   claim because violator was previously afforded a reduction based on
   inability to pay, but later committed the same violation). Accord Kevin W.
   Bondy, Forfeiture Order, 26 FCC Rcd 7840 (Enf. Bur. 2011) (holding that
   violator's repeated acts of malicious and intentional interference
   outweigh evidence concerning his ability to pay claim), aff'd, Memorandum
   Opinion and Order, 28 FCC Rcd 1170 (Enf. Bur. 2013) aff'd File No.
   EB-09-LA-0026, Memorandum Opinion and Order, DA 13-2411, 2013 WL 6705802
   (Enf. Bur. Dec. 19, 2013); Hodson Broadcasting Corp., Forfeiture Order, 24
   FCC Rcd 13699 (Enf. Bur. 2009) (holding that permittee's continued
   unauthorized operation outweighed its inability to pay claim).

   ^ See 47 U.S.C. S 405.

   ^ See 47 C.F.R. S 1.106.

   ^ 47 U.S.C. S 503(b); 47 C.F.R. SS 0.111, 0.311, 1.80(f)(4).

   ^ 47 C.F.R. S 73.3526.

   ^ 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 14-74

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   Federal Communications Commission DA 14-74

References

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   1. mailto:ARINQUIRIES@fcc.gov