**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | *  | Facility ID No. 54616        |
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| **A&L Broadcasting, Inc.**       | ** | NAL/Acct. No. MB20051810028  |
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| Licensee of Station WSQL(AM)     | *  | FRN: 0010039576              |
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| Brevard, North Carolina          | ** | File No. BR-20031219AAC      |
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**FORFEITURE ORDER**

**Adopted: January 10, 2007 Released: January 12, 2007**

By the Chief, Media Bureau:

# INTRODUCTION

1.  In this Forfeiture Order ("Order"), we issue a monetary forfeiture
    in the amount of two thousand one hundred dollars (\$2,100) to A&L
    Broadcasting, Inc. ("A&L"), licensee of Station WSQL(AM), Brevard,
    North Carolina (the "Station"), for its willful and repeated
    violation of Section 73.3539 of the Commission's Rules (the "Rules")
    and Section 301 of the Communications Act of 1934, as amended (the
    "Act"). [^1] The violations involve A&L's failure to have timely
    filed a license renewal application for the Station and its
    unauthorized operation of WSQL(AM) after its license for the Station
    had expired.

2.  On March 16, 2005, the Bureau issued a Notice of Apparent Liability
    for Forfeiture ("*NAL*") in the amount of six thousand dollars
    (\$6,000) to A&L.[^2] A&L filed a Request for Cancellation of the
    Forfeiture on April 12, 2005 (the "Request").

# BACKGROUND

3\. As noted in the *NAL*, WSQL(AM)'s license renewal application was
due on August 1, 2003, four months prior to the December 1, 2003,
license expiration date.[^3] A&L did not file the application until
December 19, 2003, nearly three weeks after the Station's license had
expired. On January 13, 2004, A&L requested a special temporary
authorization ("STA") to continue operation, pending consideration of
the license renewal application. This request was granted on January 26,
2004.[^4] The *NAL* concluded that A&L had violated Section 73.3539 of
the Rules and Section 301 of the Act and proposed the \$6,000
forfeiture.

4\. In its Request, A&L maintains that the proposed forfeiture should be
cancelled, asserting that the violations occurred as the result of an
"innocent mistake" because it had assumed the eight-year license period
began in 1997, when it acquired WSQL(AM). A&L also submits copies of its
2002, 2003, and 2004 federal income tax returns to establish its
inability to pay the proposed forfeiture.[^5]

# DISCUSSION

5\. Section 73.3539 of the Rules requires a broadcast licensee to file
its license renewal application four months before the license
expiration date. Moreover, Section 301 of the Act requires any person
operating apparatus for the transmission of communications by radio to
obtain a license under the provisions of the Act. It is undisputed that,
not only was A&L's renewal application untimely, it was filed nearly
three weeks after WSQL(AM)'s license had expired. Despite A&L's
assertion that the tardiness of renewal application was based upon an
"innocent mistake," we find that its violation of Section 73.3539 of the
Rules was willful and repeated.[^6]

6\. A&L's "innocent mistake" does not mitigate its violations. Licensees
are responsible for knowing and observing the rules affecting their
activities,[^7] including the timely submission of required forms.
Untimely renewal applications disrupt the orderly processing of renewal
applications in accordance with the staggered filing deadlines set forth
in Section 73.1020 of the Rules. Moreover, Section 301 of the Act sets
forth the general mandate that no person shall use or operate any
apparatus for the transmission of energy or communications or signals by
radio within the United States except under and in accordance with the
Act and in accordance with the terms of a license. A&L's violation not
only involved its untimely application for renewal of WSQL's license,
but also its unauthorized operation of a radio station for more than one
month after the Station's license had expired before it requested an STA
for continued operation, pending consideration of its untimely renewal
application.

7\. As noted in the *NAL*, the proposed forfeiture amount in this case
was determined in accordance with Section 503(b) of the Act,[^8] Section
1.80 of the Rules,[^9] and the Commission's *Forfeiture Policy
Statement.*[^10] In considering A&L's Request, Section 503(b) of the Act
requires that the Bureau 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.[^11]

8\. A&L also asserts that payment of the proposed \$6,000 forfeiture
would result in a substantial hardship. The Commission will not consider
reducing or canceling a forfeiture in response to a claim of inability
to pay unless the party against which the forfeiture is proposed
submits: (1) federal tax returns for the most recent three year period;
(2) financial statements prepared according to generally accepted
accounting principles; or (3) some other reliable and objective
documentation that accurately

reflected the party'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]

9\. In general, a licensee's gross revenues are the best indicator of
its ability to pay a forfeiture.[^13] The Commission has found that the
staff's use of gross revenues is a reasonable and useful yardstick to
analyze a company's financial condition for forfeiture purposes.[^14] In
support of its Request for cancellation of the forfeiture, A&L submits
copies of its 2002, 2003 and 2004 federal income tax returns. We have
examined A&L's Request pursuant to the statutory factors above, and in
conjunction with the *Forfeiture Policy Statement*. As a result of our
review, we conclude that, while cancellation of the forfeiture is not
appropriate, reduction of the \$6,000 proposed forfeiture to \$2,100 is
warranted in this case.[^15]

#  {#section .unnumbered}

# ORDERING CLAUSES

10\. Accordingly, IT IS ORDERED, pursuant to Section 503(b) of the
Communications Act of 1934, as amended, and Sections 0.283 and 1.80 of
the Commission's Rules,[^16] that A&L Broadcasting, Inc. SHALL FORFEIT
to the United States the sum of \$2,100 for willfully and repeatedly
violating Section 73.3539 of the Commission's Rules and Section 301 of
the Communications Act of 1934, as amended.

11\. Payment of the forfeiture shall be made in the manner provided for
in Section 1.80 of the Commission\'s Rules within 30 days of the release
of this Forfeiture Order. If the forfeiture is not paid within the
period specified, the case may be referred to the Department of Justice
for collection pursuant to Section 504(a) of the Act.[^17] 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.
Requests for full payment under an installment plan should be sent to:
Associate Managing Director - Financial Operations, 445 12th St, SW,
Room 1-A625, Washington, DC 20554.[^18]

12\. IT IS FURTHER ORDERED, that copies of this Forfeiture Order shall
be sent by Certified Mail Return Receipt Requested and by First Class
Mail to A&L Broadcasting, Inc., P.O. Box 1240, Brevard, North Carolina,
27812, and to its counsel, Peter Gutmann, Esq., Womble, Carlyle,
Sandridge & Rice, PLLC, 7^th^ Floor, 1401 Eye Street, N.W., Washington,
DC 20005.

FEDERAL COMMUNICATIONS COMMISSION

Donna C. Gregg

> Chief, Media Bureau

[^1]: 47 C.F.R. § 73.3539; 47 U.S.C. § 301.

[^2]: *Letter to Peter Gutmann, Esq. from Peter Doyle*, *Chief, Audio
    Division*, reference 1800B3 (Mar. 16, 2005).

[^3]: *See* 47 C.F.R. §§ 73.1020, 73.3539(a).

[^4]: *Letter to Peter Gutmann, Esq*. *from Peter Doyle*, *Chief, Audio
    Division*, reference 1800B3-MFW (Jan. 26, 2004). A&L timely sought
    an extension of the STA on July 20, 2004; that STA extension request
    was dismissed as moot on February 14, 2006.

[^5]: A&L has asked for confidential treatment of the tax returns
    pursuant to 47 C.F.R. § 0.459. We grant its request.

[^6]: For purposes of Section 503(b) of the Act, 47 U.S.C. § 503(b), the
    term "willful" means the violator knew it was taking the action in
    question , irrespective of any intent to violate the Commission's
    rules.

[^7]: *See, e.g., In the Matter of Rego, Inc*., 16 FCC Rcd 16795, 16797
    (EB 2001).

[^8]: 47 U.S.C. § 503(b).

[^9]: 47 C.F.R. § 1.80.

[^10]: *See Forfeiture Policy Statement and Amendment of Section 1.80 of
    the Rules to Incorporate the Forfeiture Guidelines*, 12 FCC Rcd
    17087, 17100 (1997), ("*Forfeiture Policy Statement*"), *recon*.
    *denied*, 15 FCC Rcd 303 (1999); 47 C.F.R. § 1.80(b)(4), note to
    paragraph (b)(4), Section I.

[^11]: 47 U.S.C. § 503(b)(2)(D).

[^12]: *See Discussion Radio, Inc*., 19 FCC Rcd 7433, 7441 (2004).

[^13]: *See PJB Communications of Virginia, Inc*., 7 FCC Rcd 2088, 2089
    (1992).

[^14]: *Id*.

[^15]: *See PJB Communications of Virginia, Inc., supra* 7 FCC Rcd at
    2089 (forfeiture not deemed excessive where it represented
    approximately 2.02 percent of the violator's gross revenues);
    *Hoosier Broadcasting Corporation*, 15 FCC Rcd 8640, 8641 (EB 2002)
    (forfeiture not deemed excessive where it represented approximately
    7.6 percent of the violator's gross revenues); *Afton Communications
    Corp.*, 7 FCC Rcd 6741 (CCB 1992) (forfeiture not deemed excessive
    where it represented approximately 3.9 percent of the violator's
    gross revenues).

[^16]: 47 C.F.R. §§ 0.283, 1.80.

[^17]: 47 U.S.C. § 504(a).

[^18]: *See* 47 C.F.R. § 1.1914.