Federal Communications Commission Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of New World, L.L.C. Licensee of KZTD-AM Cabot, Arkansas Facility ID # 25861 ) ) ) ) ) ) ) ) ) File Numbers: EB-07-OR-061 NAL/Acct. No.: 200832620001 FRN: 0015736143 NOTICE OF APPARENT LIABILITY FOR FORFEITURE Released: October 26, 2007 By the District Director, New Orleans Office, South Central Region, Enforcement Bureau: I. INTRODUCTION 1. In this Notice of Apparent Liability for Forfeiture (“NAL”), we find that New World, L.L.C. (“New World”), licensee of station KZTD-AM serving Cabot, Arkansas, apparently willfully and repeatedly violated Section 73.3526 of the Commission's Rules (“Rules”)1 by failing to maintain and make available a complete public inspection file. We conclude, pursuant to Section 503(b) of the Communications Act of 1934, as amended (“Act”),2 that New World is apparently liable for a forfeiture in the amount of ten thousand dollars ($10,000). II. BACKGROUND 2. On July 17, 2007, in response to a complaint, agents from the Commission’s New Orleans Office of the Enforcement Bureau (“New Orleans Office”) inspected station KZTD-AM at its main studio in Cabot, Arkansas.3 Station KZTD-AM's General Manager, was present during the inspection. In response to a request made during normal business hours, the general manager was unable to produce any part of the station’s public inspection file. On August 8, 2007, an agent from the New Orleans Office spoke to the station’s owner, who was unsure of the status or location of the station’s public inspection file and who stated that the general manager was in the process of compiling the required documents. III. DISCUSSION 3. Section 503(b) of the 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. The term “willful” as used in Section 503(b) of the Act 1 47 C.F.R. § 73.3526. 2 47 U.S.C. § 503(b). 3 On June 11, 2007, an agent from the New Orleans Office informed station KZTD-AM’s owner that the Office had received a complaint of several violations at the station, including a public inspection file violation. Federal Communications Commission 2 has been interpreted to mean simply that the acts or omissions are committed knowingly.4 The term “repeated” means the commission or omission of such act more than once or for more than one day.5 4. Section 73.3526(a)(2) of the Rules requires broadcast stations to maintain for public inspection, a file containing materials listed in that section.6 Section 73.3526(c)(1) of the Rules states that the file shall be available for public inspection at any time during regular business hours.7 Section 73.3526(e) of the Rules specifies the material to be retained in the public inspection file.8 In response to a request made during regular business hours, station KZTD-AM’s general manager was unable to locate or make available any part of the station’s public inspection file. He was unable to find any evidence that the public inspection file had ever existed at the main studio. Subsequent to the inspection, the station’s owner was unable to provide information regarding the status or location of the station’s public inspection file. 5. Based on the evidence before us, we find that New World apparently willfully and repeatedly violated Section 73.3526 of the Rules by failing to maintain a complete public inspection file at its main studio and apparently willfully violated Section 73.3526 of the Rules by failing to make available the public inspection file upon request. 6. Pursuant to The Commission's Forfeiture Policy Statement and Amendment of Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines, (“Forfeiture Policy Statement”), and Section 1.80 of the Rules, the base forfeiture amount for public file violations is $10,000.9 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, and history of prior offenses, ability to pay, and other such matters as justice may require.10 Applying the Forfeiture Policy Statement, Section 1.80 of the Rules, and the statutory factors to the instant case, we conclude that New World is apparently liable for a $10,000 forfeiture. IV. ORDERING CLAUSES 7. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the Communications Act of 1934, as amended, and Sections 0.111, 0.311, 0.314 and 1.80 of the Commission's Rules, New World, L.L.C. is hereby NOTIFIED of this APPARENT LIABILITY FOR A FORFEITURE in the amount of ten thousand dollars ($10,000) for violation of Section 73.3526 of the Rules.11 4 Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which applies to violations for which forfeitures are assessed under Section 503(b) of the Act, provides that "[t]he term 'willful', when used with reference to the commission or omission of any act, means the conscious and deliberate commission or omission of such act, irrespective of any intent to violate any provision of this Act or any rule or regulation of the Commission authorized by this Act…." See Southern California Broadcasting Co., 6 FCC Rcd 4387 (1991). 5 Section 312(f)(2) of the Act, 47 U.S.C. § 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." 6 47 C.F.R. § 73.3526(a)(2). 7 47 C.F.R. § 73.3526(c)(1). 8 47 C.F.R. § 73.3526(e). 9 12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999); 47 C.F.R. §1.80. 10 47 U.S.C. § 503(b)(2)(E). 11 47 U.S.C. § 503(b), 47 C.F.R. §§ 0.111, 0.311, 0.314, 1.80, 73.3526. Federal Communications Commission 3 8. 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, New World, L.L.C. SHALL PAY the full amount of the proposed forfeiture or SHALL FILE a written statement seeking reduction or cancellation of the proposed forfeiture. 9. Payment of the forfeiture must be made by check or similar instrument, payable to the order of the Federal Communications Commission. The payment must include the NAL/Acct. No. and FRN No. referenced above. Payment by check or money order may be mailed to Federal Communications Commission, P.O. Box 358340, Pittsburgh, PA 15251-8340. Payment by overnight mail may be sent to Mellon Bank /LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA 15251. Payment by wire transfer may be made to ABA Number 043000261, receiving bank Mellon Bank, and account number 911-6106. 10. The response, if any, must be mailed to Federal Communications Commission, Enforcement Bureau, South Central Region, New Orleans Office, 2424 Edenborn Ave., Suite 460, Metairie, Louisiana, 70001, and must include the NAL/Acct. No. referenced in the caption. 11. 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. 12. Requests for payment of the full amount of this Notice of Apparent Liability for Forfeiture under an installment plan should be sent to: Associate Managing Director – Financial Operations, Room 1A625, 445 12th Street, S.W., Washington, D.C. 20554.12 13. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability for Forfeiture shall be sent by Certified Mail, Return Receipt Requested, and regular mail, to New World, L.L.C. at its address of record. FEDERAL COMMUNICATIONS COMMISSION Leroy Hall District Director New Orleans Office South Central Region Enforcement Bureau 12 See 47 C.F.R. § 1.1914.