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                           Before the
                Federal Communications Commission
                      Washington, DC 20554


In the Matter of                 )
                                )
SAGA COMMUNICATIONS              )    File No. EB-01-IH-0230
OF NEW ENGLAND, INC.             )    NAL Account No. 
                                )    20043208000014
Licensee of Station WLZX(FM),    )    Facility ID No. 46963
Northampton, Massachusetts       )    FRN No. 0002749406
                                )
and                              )
                                )
WESTERN MASS RADIO COMPANY       )
                                )    Facility ID No. 25906
Licensee of Station WRNX(FM),    )    FRN No. 0003763935
Amherst, Massachusetts           )



           NOTICE OF APPARENT LIABILITY FOR FORFEITURE

   Adopted:  February 17, 2004          Released:  February 19, 
2004

By the Chief, Enforcement Bureau:

                        I.   INTRODUCTION

     1.   In this  Notice of  Apparent Liability  for  Forfeiture 
(``NAL''), we find that, on January 25, 2001, Saga Communications 
of New England,  Inc. (``Saga''), licensee  of Station  WLZX(FM), 
Northampton, Massachusetts, apparently willfully violated section 
73.1206 of the Commission's rules by recording and broadcasting a 
telephone conversation  without first  notifying a  party to  the 
call of its intention  to do so.1  Based  upon our review of  the 
facts and  circumstances  in  this  case,  and  for  the  reasons 
discussed below, we conclude that Saga is apparently liable for a 
monetary forfeiture  in  the  amount  of  Four  Thousand  Dollars 
($4,000.00).  Further, we deny a complaint filed by Saga  against 
Western Mass  Radio Company  (``Western''), licensee  of  Station 
WRNX(FM),  Amherst,  Massachusetts,   for  abuse  of   Commission 
processes and  attempted unauthorized  transfer of  control,  and 
dismiss  Saga's  request  for  a  revocation  proceeding  against 
Western.  

                         II.  BACKGROUND

          II.A.1.   The  Commission  received  a  complaint  from 
               Western alleging that, on  January 25, 2001,  Saga 
               broadcast a telephone conversation between Station 
               WLZX(FM) radio personality Christopher Laursen and 
               Station WRNX(FM)  radio personality  Dave  Sears.2  
               According to the complaint, Mr. Laursen called Mr. 
               Sears and pretended  to be a  WRNX listener.   Mr. 
               Laursen asked  Mr.  Sears whether  WRNX(FM)  radio 
               personality and  News  Director Kelsey  Flynn  was 
               ``hot''  and  if  she  was  a  ``lesbo.''3    This 
               conversation was  broadcast on  Station  WLZX(FM).  
               The complaint alleged that, while Station WLZX(FM) 
               General Manager and  Saga Vice-President  Lawrence 
               Goldberg later contacted Western President  Thomas 
               G. Davis to  apologize for  the incident,  Western 
               felt that a private apology was inadequate.4  In a 
               January 29,  2001, electronic  message from  ``Tom 
               Davis, Western Mass  Radio'' to  ``Sean Davey  and 
               Larry  Goldberg,  Saga  Communications,''  Western 
               offered to settle the matter if Saga agreed to the 
               following:   (1)  Mr.   Laursen  would  record   a 
               message, written by Mr. Davis, apologizing for Mr. 
               Laursen's actions, which would be aired on Station 
               WLZX(FM) five times in  one day at times  selected 
               by Mr. Davis;  (2) Mr. Laursen  would not  discuss 
               the incident on  the air at  any time, other  than 
               during the recorded  message of  apology; (3)  the 
               apology would be signed and published in the Daily 
               Hampshire Gazette and  Union News  three times  in 
               clear view; (4) Saga  would donate $1,000.00 to  a 
               charity of Kelsey Flynn's choice, and the donation 
               would  be  announced  in  the  apology.5   Western 
               informed Saga  that  ``[y]ou  certainly  have  the 
               right to decline, in which case we will place  the 
               issue in the hands  of the FCC  and allow them  to 
               take it to its ultimate resolution, whatever  that 
               may be.''6    

          II.A.2.   After reviewing  the complaint,  we issued  a 
               letter of inquiry to  Saga. We asked the  licensee 
               whether Station  WLZX(FM) had  recorded and  later 
               replayed such  a  conversation between  a  Station 
               WLZX(FM) radio personality and a Station  WRNX(FM) 
               radio personality.  We also asked whether  Station 
               WLZX(FM)  personnel  had   provided  the   Station 
               WRNX(FM) radio personality prior notification that 
               Station WLZX(FM) intended to record and  broadcast 
               the conversation.  Additionally, we asked Saga  to 
               provide any  other  pertinent details  that  would 
               explain or clarify the matter.7  

          II.A.3.   Before Saga responded  to the  LOI, on  March 
               13, 2001,  it filed  a complaint  against  Western 
               alleging  extortion,   blackmail  and   abuse   of 
               process, as  well  as  an  attempted  unauthorized 
               transfer of control.8   Saga claimed that  Western 
               had attempted to blackmail Saga by demanding money 
               and free airtime under  a threat of informing  the 
               Commission of Saga's violation of the Commission's 
               rules.9   Saga  also  claimed  that  accommodating 
               Western's requests that it read a written  apology 
               over the air as well  as not discuss the  incident 
               on-air  amounted  to  an  attempted   unauthorized 
               transfer of  control,  which would  have  required 
               Saga to  abdicate  control  of  ``basic  operating 
               policies'' in violation of  section 310(d) of  the 
               Communications  Act  of   1934  as  amended   (the 
               ``Act'').10  Saga  requests  that  the  Commission 
               initiate an  enforcement proceeding  and issue  an 
               order to  show  cause  under Section  312  of  the 
               Act,11 and  that  Saga  be made  a  party  to  the 
               revocation proceeding.12  

          II.A.4.   In its  March 15,  2001, LOI  Response,  Saga 
               admitted that  Station WLZX(FM)  aired a  recorded 
               conversation between Mr. Laursen and Mr. Sears  on 
               January 25,  2001,  without obtaining  Mr.  Sears' 
               permission,13 but  that it  subsequently made  Mr. 
               Laursen  aware  of  the  requirements  of  section 
               73.1206 of the  Commission's rules.  Saga  further 
               stated that  Mr.  Laursen  knew it  was  wrong  to 
               record his telephone  conversation with Mr.  Sears 
               and broadcast  it without  Mr. Sears'  permission, 
               and that Mr. Laursen's actions were ``conceived on 
               the spur of  the moment, without  approval of  any 
               Saga management  personnel.''14   Saga  maintained 
               that it suspended Mr. Laursen and his co-host  for 
               a week without pay after  Saga had learned of  the 
               incident, and further provided its employees  with 
               a list of Commission rules, with which it required 
               all   employees    to   familiarize    themselves.  
               According to Saga, Western  refused to accept  its 
               private apology for the incident, instead  sending 
               Saga the electronic  mail message  with what  Saga 
               refers  to   as   ``a   list   of   non-negotiable 
               demands.''15   

          II.A.5.   In its  March 20,  2001,  reply to  the  Saga 
               Complaint and LOI Response,16 Western stated  that 
               Saga admits, first, that Station WLZX(FM) recorded 
               and broadcast the conversation between Mr. Laursen 
               and Mr. Sears without notifying Mr. Sears that the 
               conversation was being  recorded and  going to  be 
               broadcast and, second, that Saga and its employee, 
               Mr.   Laursen,   knew   the   Commission's   rules 
               prohibited such conduct.17  According to  Western, 
               Saga's Complaint was ``so groundless,  unwarranted 
               in law or fact, and so flagrantly contrived ... as 
               to warrant sanctions against [Saga] for  frivolous 
               pleading.''18 The electronic mail message, Western 
               contended, ``merely  recite[d]  the  terms  for  a 
               proposed settlement  of  Western  Mass'  grievance 
               against Saga for  what Saga [  ] admit[ed] was  an 
               indefensible   violation   of   the   Commission's 
               rules.''19  Western maintained that to assert that 
               its proposed settlement constituted an ``attempted 
               unauthorized    transfer    of    control''    was 
               ``hyperbolic  and  silly,''  and  the   settlement 
               clearly stated that  Saga had a  right to  decline 
               Western's offer.  Western stated  that it was  not 
               an abuse of process, blackmail or extortion for  a 
               victim of wrongdoing  to approach the  perpetrator 
               seeking restitution, and if refused, to pursue his 
               remedies  at  law.20    The  broadcast   licensee, 
               according to Western,  was ultimately  responsible 
               for exercising  control  and  oversight  over  its 
               employees  and,  therefore,  was  liable  for  its 
               employee's violation  of  section 73.1206  of  the 
               Commission rules.21

                       III.     DISCUSSION

     A.  Saga's  Apparent Violation  of  Section 73.1206  of  the 
Commission's Rules

     7.   Under section 503(b)(1) of the Act, 22  any person  who 
is determined by the Commission  to have willfully or  repeatedly 
failed to  comply with  any provision  of the  Act or  any  rule, 
regulation, or order issued by the Commission shall be liable  to 
the United States for a monetary forfeiture penalty.  In order to 
impose such a  forfeiture penalty,  the Commission  must issue  a 
notice of apparent  liability, the notice  must be received,  and 
the person against whom the notice  has been issued must have  an 
opportunity to show, in writing,  why no such forfeiture  penalty 
should be imposed.23  The Commission will then issue a forfeiture 
if it finds by  a preponderance of the  evidence that the  person 
has violated the Act or a Commission rule.24  As we set forth  in 
greater detail below, we conclude  under this standard that  Saga 
is apparently liable  for a forfeiture  for its apparent  willful 
violation of section 73.1206 of the Commission's rules. 

          III.A.1.  Section 73.1206  of  the  Commission's  rules 
               provides, in pertinent part:

     Before recording a telephone conversation for broadcast 
     . . . a licensee shall inform any party to the call  of 
     the licensee's intention to broadcast the conversation, 
     except where such party is aware, or may be presumed to 
     be aware from  the circumstances  of the  conversation, 
     that it is  being or  likely will  be broadcast.   Such 
     awareness is  presumed to  exist  only when  the  other 
     party to the call is associated with the station  (such 
     as [sic] employee or part-time reporter), or where  the 
     other party originates the call and it is obvious  that 
     it is in connection with a program in which the station 
     customarily broadcasts telephone conversations.

Thus, section 73.1206 requires licensees to so notify parties  to 
a telephone call  before it initiates  recordings for  broadcast.  
The  Commission  has  stated  that  ``[t]he  recording  of   such 
conversation with  the intention  of  informing the  other  party 
later -- whether during the conversation or after it is completed 
but before it is broadcast -- does not comply with the Rule . . . 
.''25  The  rule reflects  the Commission's  longstanding  belief 
that prior  notification  is essential  to  protect  individuals' 
legitimate expectation of privacy, as  well as to preserve  their 
dignity  by  avoidance  of  nonconsensual  broadcasts  of   their 
conversations.26   Thus, the Commission  has held that the  prior 
notification   requirement   ensures   the   protection   of   an 
individual's ``right to answer the telephone without having  [his 
or her]  voice  or statements  transmitted  to the  public  by  a 
broadcast station'' live  or by recording  for delayed  airing.27  
Applying   this   reasoning,    the   Commission   has    defined 
``conversations'' broadly, ``to include any word or words  spoken 
during  the  telephone  call,''  and  specifically  has  rejected 
arguments that ``utterances made  by parties called in  answering 
the phone''  are not  subject to  the rule's  prior  notification 
requirement.28

     9.Based upon the information before us, it appears that,  on 
January 25,  2001, Saga  broadcast the  conversation between  Mr. 
Laursen and Mr. Sears, without  providing Mr. Sears prior  notice 
that Saga intended to record  and later air the conversation,  in 
apparent willful violation of section 73.1206 of the Commission's 
rules.  In  light  of  this apparent  violation,  we  believe  it 
appropriate that  Saga be  assessed a  monetary forfeiture.   The 
Commission's Forfeiture Policy Statement  sets a base  forfeiture 
amount of $4,000.00 for the unauthorized broadcast of a telephone 
conversation29 and provides that base forfeitures may be adjusted 
based upon  consideration of  the factors  enumerated in  section 
503(b)(2)(D) of  the Act30  and  1.80(a)(4) of  the  Commission's 
rules,31 which include ``the  nature, circumstances, extent,  and 
gravity of the violation . . . and the degree of culpability, any 
history of prior offenses, ability to pay, and such other matters 
as  justice  may  require.''32      Based  upon  the  facts   and 
circumstances presented here, in particular because this  appears 
to be an isolated violation,  we find the base forfeiture  amount 
of Four Thousand Dollars ($4,000.00) to be appropriate.   

     B.  Saga's Complaint Against Western

     10.       The  Commission  has  stated  that  ``[a]buse   of 
process is  a  broad  concept that  includes  use  of  Commission 
processes to achieve a result  that the process was not  intended 
to achieve, or  use of that  process to subvert  the purpose  the 
process   was    intended   to    achieve.''33    In    Character 
Qualifications,  the  Commission   further  defined  ``abuse   of 
process''  as   ``serious  willful   misconduct  which   directly 
threatens   the   integrity   of   the   Commission's   licensing 
processes.''34  Western's proposed settlement did not involve the 
Commission's  licensing  processes.    To  this  extent,   Saga's 
reliance on Home Service Broadcasting Corp. is misplaced.35  More 
importantly, the purpose of  this NAL is  ``to inform a  licensee 
that  [it]  has  failed  to  abide  by  the  provisions  of   the 
Commission's  rules.''36   By   filing  its  complaint,   Western 
contributed to the Commission's enforcement scheme.37

     11.       Western's  actions  further   do  not   constitute 
blackmail.38  Even  were we  to have  jurisdiction to  adjudicate 
this allegation, the facts indicate that Western simply sought  a 
private  resolution  of  its  grievance.   The  record  does  not 
indicate that Western threatened to file a complaint for its  own 
benefit,  monetary  or  otherwise.   With  respect  to  Western's 
request that  Saga  contribute to  a  charity of  Kelsey  Flynn's 
choice, Western  appears  only to  have  sought redress  for  the 
damage done by  statements potentially  impugning its  employee's 
sexual orientation.

     12.  Saga's claim that Western attempted to acquire  control 
of Station  WLZX(FM) is  likewise  without merit.   In  assessing 
whether an  unauthorized transfer  of control  has occurred,  the 
Commission looks at whether a licensee continues to have ultimate 
control over a station's programming, personnel, and  finances.39  
Proposing that Saga broadcast a public apology five times on  one 
day, and  that  Saga take  steps  to prevent  its  employee  from 
further insulting Western's radio personality does not constitute 
an attempt  to  control the  ``basic  operating policies  of  the 
station,'' as Saga maintains.40  

     13.  The Commission  does not  recognize a  formal right  to 
seek revocation of a license,41  but rather treats such  requests 
as informal requests for action  pursuant to section 1.41 of  the 
Commission's  rules.42   Saga   claims  that  Western's   actions 
``evidence[] a lack of fitness to be a Commission licensee''  and 
therefore the Commission should  initiate a proceeding  requiring 
Western to show cause why its license for WRNX(FM) should not  be 
revoked.43  Because we  reject Saga's claims,  Saga's request  to 
initiate a revocation proceeding is dismissed as moot.  

                      IV.  ORDERING CLAUSES

     14.  Accordingly, IT IS  ORDERED THAT,  pursuant to  section 
503(b) of the Act,44  and sections 0.111, 0.311  and 1.80 of  the 
Commission's rules,45 Saga Communications  of New England,  Inc., 
licensee of  Station  WLZX(FM),  Northampton,  Massachusetts,  is 
hereby NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the 
amount of Four Thousand Dollars ($4,000) for apparently willfully 
violating section 73.1206  of the Commission's  rules on  January 
25, 2001.46

     15.  IT IS FURTHER ORDERED THAT, pursuant to Section 1.80 of 
the rules,47 within thirty (30)  days of this NOTICE OF  APPARENT 
LIABILITY, Saga Communications of New England, Inc. SHALL PAY the 
full amount of the  proposed forfeiture or  SHALL FILE a  written 
statement seeking  reduction  or  cancellation  of  the  proposed 
forfeiture.  Payment of the forfeiture  may be made by mailing  a 
check or similar instrument, payable to the order of the  Federal 
Communications  Commission,  to  Forfeiture  Collection  Section, 
Finance  Branch,  Federal  Communications  Commission,  P.O.  Box 
73482, Chicago, Illinois  60673-7482.  The  payment must  include 
the FCC Registration Number (FRN) referenced above and also  must 
note the NAL/Acct. No. referenced above.

     16.  Requests for payment of the full amount of this  Notice 
of Apparent Liability  under an installment  plan should be  sent 
to: Chief,  Revenue and  Receivables Operations  Group, 445  12th 
Street, S.W., Washington, D.C. 20554.48 

     17.  Accordingly,  IT  IS  ORDERED  THAT  the  complaint  of 
Western Mass Radio Company  filed against Saga Communications  of 
New England,  Inc., licensee  of Station  WLZX(FM),  Northampton, 
Massachusetts, is GRANTED.

          III.A.2.  IT IS FURTHER ORDERED  THAT the complaint  of 
               Saga Communications of New England, Inc., alleging 
               abuse  of   process,  blackmail,   and   attempted 
               acquisition of control of WLZX(FM) by Western Mass 
               Radio Company,  licensee of  Station WRNX(FM),  is 
               DENIED for the reasons  set forth herein, and  the 
               request  for  revocation  of  Station   WRNX(FM)'s 
               license is DISMISSED.

          III.A.3.  Under the Small Business Paperwork Relief Act 
               of 2002, Pub L. No.  107-198, 116 Stat. 729  (June 
               28, 2002),  the  FCC  is  engaged  in  a  two-year 
               tracking process  regarding the  size of  entities 
               involved in  forfeitures.   If you  qualify  as  a 
               small entity and if  you wish to  be treated as  a 
               small entity  for  tracking  purposes,  please  so 
               certify to us within thirty (30) days of this NAL, 
               either in  your  response  to  the  NAL  or  in  a 
               separate filing to be  sent to the  Investigations 
               and Hearings Division.  Your certification  should 
               indicate whether you, including your parent entity 
               and its subsidiaries, meet one of the  definitions 
               set forth in the list provided by the FCC's Office 
               of Communications  Business  Opportunities  (OCBO) 
               set forth  in  Attachment  A  of  this  Notice  of 
               Apparent Liability.  This information will be used 
               for tracking  purposes  only.   Your  response  or 
               failure to respond to  this question will have  no 
               effect  on   your  rights   and   responsibilities 
               pursuant to Section  503(b) of the  Communications 
               Act.  If you have  questions regarding any of  the 
               information  contained  in  Attachment  A,  please 
               contact OCBO at (202) 418-0990.

     20.  IT IS FURTHER  ORDERED THAT  a copy of  this NOTICE  OF 
APPARENT LIABILITY  shall  be sent  by  Certified Mail  -  Return 
Receipt Requested to Lawrence  D. Goldberg, Vice President,  Saga 
Communications  of   New  England,   Inc,  15   Hampton   Avenue, 
Northampton, Massachusetts 01060; its counsel, Gary S. Smithwick, 
Esquire, Smithwick  &  Belendiuk, P.C.,  5028  Wisconsin  Avenue, 
N.W.,  Suite  301,  Washington,  D.C.  20016;  Thomas  G.  Davis, 
President, Western Mass Radio  Company, 98 Lower Westfield  Road, 
Holyoke, Massachusetts, 01040; and its counsel, Erwin G. Krasnow, 
Esquire, Garvey Schubert Barer, Fifth Floor, 1000 Potomac Street, 
N.W., Washington, D.C. 20007-3501. 


                         FEDERAL COMMUNICATIONS COMMISSION



                         David H. Solomon
                         Chief, Enforcement Bureau













































                        Attachment A

                 FCC List of Small Entities

   As described below, a ``small entity'' may be a small 
                       organization,
  a small governmental jurisdiction, or a small business.

(1)  Small Organization 
Any not-for-profit enterprise that is independently owned 
and operated and 
is not dominant in its field.

  
(2)  Small Governmental Jurisdiction
Governments of cities, counties, towns, townships, villages, 
school districts, or 
special districts, with a population of less than fifty 
thousand.


(3)  Small Business
Any business concern that is independently owned and 
operated and 
is not dominant in its field, and meets the pertinent size 
criterion described below.
  

       Industry Type          Description of Small Business 
                                      Size Standards
                 Cable Services or Systems
                             Special Size Standard - 
Cable Systems                Small Cable Company has 400,000 
                             Subscribers Nationwide or Fewer
Cable and Other Program 
Distribution                     $12.5 Million in Annual 
                                     Receipts or Less

Open Video Systems 
        Common Carrier Services and Related Entities
Wireline Carriers and 
Service providers 
                                 1,500 Employees or Fewer
Local Exchange Carriers, 
Competitive Access 
Providers, Interexchange 
Carriers, Operator Service 
Providers, Payphone 
Providers, and Resellers


Note:  With the exception of Cable Systems, all size 
standards are expressed in either millions of dollars or 
number of employees and are generally the average annual 
receipts or the average employment of a firm.  Directions 
for calculating average annual receipts and average 
employment of a firm can be found in 
13 CFR 121.104 and 13 CFR 121.106, respectively.





                   International Services
International Broadcast 
Stations






                                 $12.5 Million in Annual 
                                     Receipts or Less
International Public Fixed 
Radio (Public and Control 
Stations)
Fixed Satellite 
Transmit/Receive Earth 
Stations
Fixed Satellite Very Small 
Aperture Terminal Systems
Mobile Satellite Earth 
Stations
Radio Determination 
Satellite Earth Stations
Geostationary Space Stations
Non-Geostationary Space 
Stations
Direct Broadcast Satellites
Home Satellite Dish Service
                    Mass Media Services
Television Services

                              $12 Million in Annual Receipts 
                                         or Less
Low Power Television 
Services and Television 
Translator Stations
TV Auxiliary, Special 
Broadcast and Other Program 
Distribution Services
Radio Services
                              $6 Million in Annual Receipts 
                                         or Less
Radio Auxiliary, Special 
Broadcast and Other Program 
Distribution Services
Multipoint Distribution      Auction Special Size Standard -
Service                      Small Business is less than 
                             $40M in annual gross revenues 
                             for three preceding years
          Wireless and Commercial Mobile Services
Cellular Licensees
                                 1,500 Employees or Fewer
220 MHz Radio Service - 
Phase I Licensees
220 MHz Radio Service -      Auction special size standard -
Phase II Licensees           Small Business is average gross 
                             revenues of $15M or less for 
                             the preceding three years 
                             (includes affiliates and 
                             controlling principals)
                             Very Small Business is average 
                             gross revenues of $3M or less 
                             for the preceding three years 
                             (includes affiliates and 
                             controlling principals)
700 MHZ Guard Band Licensees


Private and Common Carrier 
Paging
Broadband Personal 
Communications Services          1,500 Employees or Fewer
(Blocks A, B, D, and E)
Broadband Personal           Auction special size standard -
Communications Services      Small Business is $40M or less 
(Block C)                    in annual gross revenues for 
                             three previous calendar years
                             Very Small Business is average 
                             gross revenues of $15M or less 
                             for the preceding three 
                             calendar years (includes 
                             affiliates and persons or 
                             entities that hold interest in 
                             such entity and their 
                             affiliates)
Broadband Personal 
Communications Services 
(Block F)
Narrowband Personal 
Communications Services


Rural Radiotelephone Service     1,500 Employees or Fewer
Air-Ground Radiotelephone 
Service
800 MHz Specialized Mobile   Auction special size standard -
Radio                        Small Business is $15M or less 
                             average annual gross revenues 
                             for three preceding calendar 
                             years
900 MHz Specialized Mobile 
Radio
Private Land Mobile Radio        1,500 Employees or Fewer
Amateur Radio Service                      N/A
Aviation and Marine Radio 
Service                          1,500 Employees or Fewer
Fixed Microwave Services
                             Small Business is 1,500 
Public Safety Radio Services employees or less
                             Small Government Entities has 
                             population of less than 50,000 
                             persons
Wireless Telephony and 
Paging and Messaging             1,500 Employees or Fewer
Personal Radio Services                    N/A
Offshore Radiotelephone          1,500 Employees or Fewer
Service
Wireless Communications      Small Business is $40M or less 
Services                     average annual gross revenues 
                             for three preceding years
                             Very Small Business is average 
                             gross revenues of $15M or less 
                             for the preceding three years 

39 GHz Service
                             Auction special size standard 
                             (1996) -
Multipoint Distribution      Small Business is $40M or less 
Service                      average annual gross revenues 
                             for three preceding calendar 
                             years
                             Prior to Auction -
                             Small Business has annual 
                             revenue of $12.5M or less
Multichannel Multipoint 
Distribution Service             $12.5 Million in Annual 
                                     Receipts or Less
Instructional Television 
Fixed Service
                             Auction special size standard 
                             (1998) -
Local Multipoint             Small Business is $40M or less 
Distribution Service         average annual gross revenues 
                             for three preceding years
                             Very Small Business is average 
                             gross revenues of $15M or less 
                             for the preceding three years 
                             First Auction special size 
                             standard (1994) -
                             Small Business is an entity 
                             that, together with its 
                             affiliates, has no more than a 
218-219 MHZ Service          $6M net worth and, after 
                             federal income taxes (excluding 
                             carryover losses) has no more 
                             than $2M in annual profits each 
                             year for the previous two years
                             New Standard - 
                             Small Business is average gross 
                             revenues of $15M or less for 
                             the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
                             Very Small Business is average 
                             gross revenues of $3M or less 
                             for the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
Satellite Master Antenna 
Television Systems               $12.5 Million in Annual 
                                     Receipts or Less
24 GHz - Incumbent Licensees     1,500 Employees or Fewer
24 GHz - Future Licensees    Small Business is average gross 
                             revenues of $15M or less for 
                             the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
                             Very Small Business is average 
                             gross revenues of $3M or less 
                             for the preceding three years 
                             (includes affiliates and 
                             persons or entities that hold 
                             interest in such entity and 
                             their affiliates)
                       Miscellaneous
On-Line Information Services  $18 Million in Annual Receipts 
                                         or Less
Radio and Television 
Broadcasting and Wireless 
Communications Equipment          750 Employees or Fewer
Manufacturers
Audio and Video Equipment 
Manufacturers
Telephone Apparatus 
Manufacturers (Except            1,000 Employees or Fewer
Cellular)
Medical Implant Device            500 Employees or Fewer
Manufacturers
Hospitals                     $29 Million in Annual Receipts 
                                         or Less
Nursing Homes                    $11.5 Million in Annual 
                                     Receipts or Less
Hotels and Motels             $6 Million in Annual Receipts 
                                         or Less
Tower Owners                 (See Lessee's Type of Business)









_________________________

1 47 C.F.R. § 73.1206.
2 See Letter from Thomas G. Davis, President, Western Mass  Radio 
Company,   to   Magalie    Roman   Salas,   Secretary,    Federal 
Communications Commission,  dated  February  1,  2001  (``Western 
Complaint''). 
3 Id. at 1.
4 Western Complaint at 2. 
5 Id. at 2, Attachment.
6 Id.
7 See Letter  from Charles W.  Kelley, Chief, Investigations  and 
Hearings Division,  Enforcement  Bureau,  Federal  Communications 
Commission, to Saga  Communications of New  England, Inc.,  dated 
February 14, 2001 (``LOI'').  
8 See  Letter from  Lawrence D.  Goldberg, Vice  President,  Saga 
Communications of  New England,  Inc.,  to Magalie  Roman  Salas, 
Secretary, Federal  Communications  Commission,  dated  March  8, 
2001. (``Saga Complaint''). 
9 See id. at 2-3.
10 See id. at 3-4; 47 U.S.C. § 310(d).
11 47 U.S.C. § 312
12 See Saga Complaint at 4.
13  See Letter  from Lawrence D.  Goldberg, Vice President,  Saga 
Communications of New England, Inc., to Charles W. Kelley, Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications   Commission,   dated    March   16,    2001(``LOI 
Response''); Declaration of Christopher  Laursen dated March  14, 
2001 provided therewith (``Laursen Declaration'').
14 Id. at 1; Laursen Declaration.
15 Id. at 2; Laursen Declaration.
16 See Letter from Erwin G. Krasnow, Verner, Liipfert,  Bernhard, 
McPherson and Hand, to  Charles W. Kelley, Chief,  Investigations 
and Hearings Division, Enforcement Bureau, Federal Communications 
Commission, dated March 20, 2001 (``Western Reply'').
17 Id. at 1.
18 Id. at 2.
19 Id.
20 Id. at 2-3.
21 Id. at 3.
22 47 U.S.C. § 503(b)(1)(B); 47 C.F.R. § 1.80(a)(1); see also  47 
U.S.C. § 503(b)(1)(D) (forfeitures for  violation of 14 U.S.C.  § 
1464).  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.   47 U.S.C.  § 
312(f)(1). 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, H.R.  Rep. No. 97-765,  97th 
Cong. 2d Sess. 51 (1982),  and the Commission has so  interpreted 
the term in the section  503(b) context.  See, e.g.,  Application 
for Review of  Southern California  Broadcasting Co.,  Memorandum 
Opinion and  Order,  6  FCC Rcd  4387,  4388  (1991)  (``Southern 
California Broadcasting Co.'').  The Commission may also assess a 
forfeiture for  violations  that  are merely  repeated,  and  not 
willful.  See,  e.g.,  Callais  Cablevision,  Inc.,  Grand  Isle, 
Louisiana, Notice of Apparent Liability for Monetary  Forfeiture, 
16 FCC Rcd 1359  (2001) (issuing a  Notice of Apparent  Liability 
for, inter alia,  a cable television  operator's repeated  signal 
leakage).  ``Repeated'' merely means  that the act was  committed 
or omitted more than once, or lasts more than one day.   Southern 
California Broadcasting  Co., 6  FCC Rcd  at 4388,  ¶ 5;  Callais 
Cablevision, Inc., 16 FCC Rcd at 1362, ¶ 9.    
23 47 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).
24 See, e.g.,  SBC Communications, Inc.,  Apparent Liability  for 
Forfeiture, Forfeiture Order, 17 FCC  Rcd 7589, 7591, ¶ 4  (2002) 
(forfeiture paid). 
25  Station-Initiated Telephone Calls  which Fail to Comply  with 
Section 73.1206 of the Rules, Public  Notice, 35 FCC 2d 940,  941 
(1972) (``1972 Public Notice'').  
26  See  Amendment  of  Section  1206:  Broadcast  of   Telephone 
Conversations, 3 FCC Rcd  5461, 5463-64 (1988) (``1988  Order''); 
1972 Public Notice, 35 FCC 2d at 941; Amendment of Part 73 of the 
Commission's Rules and Regulations with Respect to the  Broadcast 
of Telephone Conversations, 23  FCC 2d 1, 2  (1970); see also  EZ 
Sacramento, Inc. and Infinity  Broadcasting Corp. of  Washington, 
D.C.,  16  FCC  Rcd  4958,   4958  (2002)  (finding  that   prior 
notifications ``effectively cease'' when callers are put on hold, 
and that thus explicit notice must  be given if stations plan  to 
continue such broadcasts or  record such conversations for  later 
broadcasts); Heftel  Broadcasting-Contemporary, Inc.,  52 FCC  2d 
1005, 1006  (1975) (finding  that ``cash  call'' promotions  that 
simultaneously broadcast,  and award  prizes based  on,  parties' 
responses in  answering  the  telephone are  subject  to  section 
73.1206's prior notification requirement).  
27 1988 Order, 3 FCC Rcd at 5463.
28 Heftel  Broadcasting-Contemporary, Inc.,  52  FCC 2d  at  1006 
(emphasis added).
29 See Commission's Forfeiture Policy Statement and Amendment  of 
Section  1.80  of  the   Rules  to  Incorporate  the   Forfeiture 
Guidelines, 12 FCC Rcd 17087, 17113 (1997), recon. denied 15  FCC 
Rcd 303 (1999) (``Forfeiture Policy Statement'').
30 47 U.S.C. § 503(b)(2)(D).
31 47 C.F.R. § 1.80(a)(4).
32  Forfeiture Policy Statement, 12 FCC Rcd at 17100-01.
33  Ronald  Brasher,  15  FCC Rcd  16326,  16331  (2000)  (citing 
Broadcast Renewal Applicants, 3 FCC Rcd 5179, 5199 n.2 (1988)).
34   Policy  Regarding  Character  Qualifications  in   Broadcast 
Licensing, 102 FCC 2d 1179, 1211 (1986) (emphasis added).
35 Saga Complaint at 3,  citing Home Service Broadcasting  Corp., 
24 FCC 2d 192, 193 (Rev. Bd. 1970).  See, also, James Sliger,  70 
FCC 2d  1565 (Rev.  Bd. 1969)  (abuse of  process in  comparative 
renewal proceeding); K.O. Communications, Inc., 13 FCC Rcd  12765 
(WTB 1998) (abuse of process when ``strike pleading'' filed).

36 Duhamel Broadcasting Enterprises, 61 FCC 2d 365, 366 (1976).
37  Western's   settlement  proposal   did  not   undermine   the 
Commission's enforcement  scheme because  filing a  complaint  is 
voluntary, and  only  one  method of  initiating  an  enforcement 
proceeding.
38 Saga  cites to  18 U.S.C.  § 873,  which makes  it a  criminal 
offense to  demand any  money  or other  valuable thing  under  a 
threat of  informing,  or  as consideration  for  not  informing, 
against any violation of federal law.
39 See, e.g., Radio Moultrie, Inc., 17 FCC Rcd 24304 (2002).
40 See id. at 24306.
41 See, e.g., K.O. Communications, Inc., 13 FCC Rcd at 12775.
42 See id.; 47 C.F.R. § 1.41.
43 See Saga Complaint at 4.  
44 47 U.S.C. § 503(b).
45 47 C.F.R. § 0.111, 0.311 and 1.80.
46 47 C.F.R. § 73.1206
47 47 C.F.R. § 1.80.
48 47 C.F.R. § 1.1914.