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Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
In the Matter of ) File No. x18ed0002
)
KANZA, Inc. ) Ref. Facility ID
#42384
) KRLI(FM), Malta Bend, MO
CONSENT DECREE
1. The Enforcement Bureau of the Federal
Communications Commission (the ``Commission'') and KANZA,
Inc. (``KANZA'') hereby enter into this Consent Decree for
the purpose of terminating a forfeiture proceeding arising
from questions related to KANZA's possible assumption of
control of Station KRLI(FM), Malta Bend, Missouri, which is
licensed to Miles Carter.
Background
2. On October 22, 1999, the Chief, Mass Media Bureau
(``Chief, MMB''), released a Notice of Apparent Liability
(``NAL''), DA 99-2259. The Chief, MMB, determined that it
appeared KANZA, not the licensee of record, Miles Carter,
controlled KRLI(FM), Malta Bend, Missouri. The NAL noted
that: 1) KRLI had no employees; 2) KRLI was operated in
conjunction with KANZA stations KAOL(AM), KNZU(FM) and
WHB(AM) out of a common main studio location; 3) KANZA
employed Miles Carter; and 4) KANZA directly paid for
various KRLI expenses. After considering the circumstances
in light of the Commission's Forfeiture Policy Statement,
the Chief, MMB, proposed a forfeiture of $8,000. In
addition, the Chief, MMB, directed that the parties submit
within 30 days of the date of the NAL a plan to come into
compliance with the Commission's rules and policies
concerning control.
3. On November 22, 1999, KANZA submitted an ``Amended
and Restated Time Brokerage Agreement'' (``Amended
Agreement'') and reported that Miles Carter had resigned
from KANZA, effective November 16, 1999. The Amended
Agreement revised a Time Brokerage Agreement between KANZA
and Miles Carter, which had been entered into on October 17,
1996, shortly before KRLI commenced broadcasting. Among
other things, the Amended Agreement provides that, except
for expenses related to programming created and provided by
KANZA, Miles Carter shall be responsible for paying all
direct operating costs of the station. The Amended
Agreement further provides that Miles Carter shall employ at
KRLI a general manager and any other personnel required by
the Commission's rules and policies.
Definitions
4. For purposes of this Consent Decree, the following
definitions shall apply:
(a) The ``Commission'' means the Federal
Communications Commission.
(b) The ``Bureau'' means the Enforcement Bureau of the
Commission.
(c) KANZA means KANZA, Inc. and its successors and
assigns to the extent that they remain a party to
the Amended Agreement referenced herein.
(d) ``Order'' means the Bureau's order adopting this
Consent Decree.
(e) ``Amended Agreement'' means the November 16, 1999,
Amended and Restated Time Brokerage Agreement,
between KANZA and Miles Carter, licensee of Station
KRLI(FM), Malta Bend, Missouri, a copy of which was
submitted to the Commission on November 22, 1999, by
KANZA.
(f) ``NAL'' means the Notice of Apparent Liability, DA
99-2259, released October 22, 1999, signed by the
Chief, Mass Media Bureau.
(g) The ``Act'' means the Communications Act of 1934,
as amended, 47 U.S.C. §§ 151 et seq.
Agreement
5. KANZA acknowledges and agrees that the Commission
has jurisdiction over the matters referenced in this Consent
Decree and that the Bureau has the authority to enter into
and adopt this Consent Decree.
6. KANZA and the Bureau acknowledge and agree that
this Consent Decree does not constitute either an
adjudication on the merits or a factual or legal finding or
determination, regarding any violation of Section 310(d) of
the Act, 47 U.S.C. § 310(d), that may have been committed
with respect to KANZA's involvement in the construction and
operation of Station KRLI(FM), Malta Bend, Missouri, prior
to November 16, 1999. KANZA and the Bureau acknowledge and
agree that this Consent Decree is for settlement purposes
only and that by agreeing to this Consent Decree, KANZA does
not admit any violation set forth in the NAL. Indeed, KANZA
expressly denies any such violation.
6. KANZA and the Bureau acknowledge and agree that
this Consent Decree shall constitute a final settlement
between them.
7. In express reliance on the covenants and
representations contained herein, the Bureau shall terminate
the forfeiture proceeding commenced by the NAL at such time
as the Bureau adopts this Consent Decree.
8. KANZA promises to adhere to the Amended Agreement,
which, on its face, is consistent with the Commission's
rules and policies regarding time brokerage agreements.
KANZA further promises to alter the Amended Agreement in
accordance with paragraph 11.5 thereof if the Commission's
rules and policies regarding time brokerage agreements
change and thereby render any part of the Amended Agreement
illegal. In the event such alteration cannot be
effectuated, KANZA promises to terminate the Amended
Agreement in accordance with paragraph 11.5 thereof.
9. KANZA shall make a voluntary contribution to the
United States Treasury in the amount of five thousand
dollars ($5,000) within 10 days after the Order adopting
this Consent Decree is no longer subject to reconsideration,
appeal or review in accordance with the Act and the
Commission's rules.
10. KANZA 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 Order adopts the Consent Decree
without modification.
11. The effectiveness of this Consent Decree is
expressly contingent upon issuance of the Order, provided
the Order adopts the Consent Decree without modification.
12. In the event any court of competent jurisdiction
renders this Consent Decree invalid, the Consent Decree
shall become null and void and may not be used in any manner
in any legal proceeding.
13. If the Commission, or the United States on behalf
of the Commission, brings a judicial action to enforce the
terms of the Order adopting this Consent Decree, neither
KANZA nor the Commission will contest the validity of the
Consent Decree or Order, and KANZA will waive any statutory
right to a trial de novo.
14. KANZA agrees to waive any claims it may otherwise
have under the Equal Access to Justice Act, 5 U.S.C. § 504
and 47 C.F.R. §§ 1.1501 et seq.
15. Any violation of the Consent Decree or the Order
adopting this Consent Decree will constitute a separate
violation of a Commission order, entitling the Commission to
exercise any rights and remedies attendant to the
enforcement of a Commission order.
16. Any provision of this Consent Decree affected by
or inconsistent with any subsequent rule or order adopted by
the Commission will be superseded by such Commission rule or
order.
17. This Consent Decree may be signed in counterparts.
FEDERAL COMMUNICATIONS COMMISSION
ENFORCEMENT BUREAU
By: __________________________ ____________
David H. Solomon Date
Chief, Enforcement Bureau
KANZA, Inc.
By: _________________________ ____________
Michael L. Carter Date
President