Before the

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | * | File No. EB-02-IH-0696       |
|                                  | * |                              |
| **NEW NORTHWEST BROADCASTERS,    | ) | NAL/Acct. No. 200432080161   |
| L.L.C**.                         | * |                              |
|                                  | * | FRN \# 0003799814            |
| Licensee of Stations KEGX(FM),   |   |                              |
| KIOK(FM), KALE(AM), Richland,    | * | Facility ID Nos. 53140,      |
| Washington, KNLT(FM), Walla      | * | 12455, 63359, 35717, 53139   |
| Walla, Washington, and KTCR(AM), | ) |                              |
| Kennewick, Washington[^1]        | * |                              |
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+----------------------------------+---+------------------------------+

**NOTICE OF APPARENT LIABILITY FOR FORFEITURE**

**Adopted:** **May 24, 2004 Released:** **May 25, 2004**

By the Chief, Enforcement Bureau:

**I. INTRODUCTION**

1\. In this *Notice of Apparent Liability for Forfeiture ("NAL")*, we
find New Northwest Broadcasters, L.L.C. ("NNB"), licensee of Stations
KEGX(FM) KIOK(FM), KALE(AM), Richland, Washington, KNLT(FM), Walla
Walla, Washington, and KTCR(AM), Kennewick, Washington, apparently
liable for a monetary forfeiture in the amount of Four Thousand Dollars
(\$4,000) for a violation of section 73.1216 of the Commission's
rules.[^2] That rule requires a broadcast licensee to conduct its
contests substantially as announced or advertised. We find that NNB
broadcast contests in which it awarded prizes to callers who did not
satisfy its pre-announced contest rule parameters.

**II. BACKGROUND**

2\. The Commission received a confidential complaint dated July 31,
2002, alleging that NNB, time-broker of Station KUJ-FM, Walla Walla,
Washington, had engaged in "rampant rigging of contests" there.[^3]
According to the complaint, the station's on-air announcers were
instructed by NNB's managers to award contest prizes "to women that
sound\[ed\] over the age of 18," even where the announced contest rules
specified that the ninety-ninth caller would win the applicable
prize.[^4]

3\. On November 15, 2002, the Investigations and Hearings Division of
the Enforcement Bureau sent a letter of inquiry to NNB.[^5] NNB
responded by letter dated December 23, 2002.[^6] In its response, NNB
denied that its stations and its employees, including NNB's Operations
Manager, and an announcer, violated the applicable statutory and
regulatory requirements.[^7]

**III. DISCUSSION**

4\. *Applicable Statutory and Regulatory Requirements.* Section 508 of
the Act prohibits a licensee from knowingly deceiving the public by
engaging "in any artifice or scheme for the purpose of prearranging or
predetermining in whole or in part the outcome of a purportedly bona
fide contest . . . of chance."[^8] Thus, section 73.1216 of the
Commission's rules requires a broadcast licensee to conduct
station-sponsored contests "substantially as announced or advertised,"
and to disclose fully and accurately the "material terms" of such
contests.[^9] Material terms, among other things, include any
eligibility restrictions, means of selection of winners, and
instructions regarding entry and participation.[^10]

5\. With respect to the contest-rigging allegation, NNB has represented
that its stations, except for KALE(AM) and KTCR(AM), have conducted
various station-sponsored grand and minor prize contests, typified by
call-in parameters (*i.e.,* contests awarded to designated numbered
callers).[^11] As an example, NNB provided a transcript of a typical
contest announcement.[^12] NNB contends that the parameters of and the
procedures for such station-sponsored contests were established and
implemented by its stations' program directors and disc jockeys.[^13]
NNB maintains that its employees did not rig contest results, and that
its stations conducted contests and awarded prizes consistent with the
announcements and in accordance with the applicable statutory and
regulatory requirements.[^14] NNB acknowledged, however, that, in its
investigation into the allegations, it discovered that, in a few
incidents in which call volume fell short of the announced designated
numbered callers, prizes had been awarded to the next eligible
callers.[^15] NNB maintained that these incidents were isolated and were
attributable to insufficient call volume \-- not from any desire to
favor any type of contestant, adult female or otherwise.[^16] NNB
advised that it took corrective action, by informing its disc jockeys
that, in the event of insufficient call volume, they should announce a
lower number level and award the prize accordingly.[^17]

6\. In this case, it appears that NNB violated section 73.1216 of the
Commission's rules by not conducting at least one of its contests
substantially as announced. NNB admits that its station announcers, in a
few instances, awarded prizes to call-in contestants who did not meet
the contests' announced parameters and requirements. Licensees, as
public trustees, have the affirmative obligation to prevent the
broadcast of false, misleading or deceptive contest announcements,[^18]
and for conducting their contests substantially as announced.[^19]
Although NNB later took remedial actions to correct the conduct of its
contests prospectively, these actions do not absolve it from liability
and the proposed forfeiture penalty.[^20]

**V. FORFEITURE**

7\. Under section 503(b)(1) of the Act, 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.[^21] 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.[^22] 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.[^23] As we set forth
in greater detail below, we conclude under this standard that NNB is
apparently liable for a forfeiture for its apparent willful violation of
section 73.1216 of the Commission's rules.

8\. Based upon the evidence before us, we find that NNB apparently
willfully[^24] violated section 73.1216 of the Commission's rules. The
Commission's *Forfeiture Policy Statement* sets a base forfeiture amount
of \$4,000 for failure to conduct a station contest substantially as
announced.[^25] In assessing the monetary forfeiture amount, we must
take into account the statutory factors set forth in Section
503(b)(2)(D) of the Act,[^26] which include 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. After considering
the record, the factors contained in section 503(b)(2)(D) of the Act, 47
U.S.C. § 503(b)(2)(D), and the *Forfeiture Policy Statement*, we believe
that a \$4,000 forfeiture is appropriate in this case.

**V. ORDERING CLAUSES**

9\. ACCORDINGLY, IT IS ORDERED, pursuant to section 503(b) of the
Communications Act of 1934, as amended,[^27] and sections 0.111, 0.311,
and 1.80 of the Commission's rules,[^28] that New Northwest
Broadcasters, L.L.C. is hereby NOTIFIED of its APPARENT LIABILITY FOR
FORFEITURE in the amount of Four Thousand Dollars (\$4,000) for
willfully violating section 73.1216 of the Commission's rules.

10\. IT IS FURTHER ORDERED, pursuant to section 1.80 of the Commission's
rules, that within thirty (30) days of the release of this Notice, New
Northwest Broadcasters, 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.

11\. Payment of the forfeiture may be made by mailing a check or similar
instrument, payable to the order of the Federal Communications
Commission, to the 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 should note the NAL/Acct. No. referenced
above.

12\. The response, if any, must be mailed to William Davenport, Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 445 12^th^ Street, S.W, Room 3-B433,
Washington, D.C. 20554 and MUST INCLUDE the NAL/Acct. No. referenced
above.

13\. The Commission will not consider reducing or canceling a forfeiture
in response to a claim of inability to pay unless the respondent
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 respondent'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.

14\. 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.[^29]

15\. 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 NNB qualifies as a small entity and if it wishes to be treated as a
small entity for tracking purposes, it should so certify to us within
thirty (30) days of this NAL, either in its response to the NAL or in a
separate filing to be sent to the Investigations and Hearings Division.
NNB's certification should indicate whether it, including its 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. NNB's response or failure to respond to this question will have no
effect on its rights and responsibilities pursuant to Section 503(b) of
the Communications Act. If NNB has questions regarding any of the
information contained in Attachment A, please contact OCBO at (202)
418-0990.

16\. IT IS FURTHER ORDERED that a copy of this Notice shall be sent, by
Certified Mail/Return Receipt Requested, to New Northwest Broadcasters,
L.L.C., 15405 S.E. 37^th^ Street, Suite 130, Bellevue, Washington 98006,
and to its counsel, M. Anne Swanson, Esq., Dow Lohnes & Albertson, 1200
New Hampshire Avenue, N.W., Suite 800, Washington, D.C. 20036-6802.

FEDERAL COMMUNICATIONS COMMISSION

David H. Solomon

Chief, Enforcement Bureau

October 2002

**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***                     |                                     |
+--------------------------------+-------------------------------------+
| Cable Systems                  | Special Size Standard --            |
|                                |                                     |
|                                | **Small Cable Company** has 400,000 |
|                                | Subscribers Nationwide or Fewer     |
+--------------------------------+-------------------------------------+
| Cable and Other Program        | \$12.5 Million in Annual Receipts   |
| Distribution                   | or Less                             |
+--------------------------------+-------------------------------------+
| Open Video Systems             |                                     |
+--------------------------------+-------------------------------------+
| ***Common Carrier Services and |                                     |
| Related Entities***            |                                     |
+--------------------------------+-------------------------------------+
| Wireline Carriers and Service  | 1,500 Employees or Fewer            |
| providers                      |                                     |
+--------------------------------+-------------------------------------+
| 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        | \$12.5 Million in Annual Receipts   |
| Stations                       | 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 -- Phase | Auction special size standard -     |
| 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             | 1,500 Employees or Fewer            |
| Communications Services        |                                     |
| (Blocks A, B, D, and E)        |                                     |
+--------------------------------+-------------------------------------+
| Broadband Personal             | Auction special size standard -     |
| Communications Services (Block |                                     |
| C)                             | **Small Business** is \$40M or less |
|                                | 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      | 1,500 Employees or Fewer            |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Fixed Microwave Services       |                                     |
+--------------------------------+-------------------------------------+
| Public Safety Radio Services   | **Small Business** is 1,500         |
|                                | employees or less                   |
|                                |                                     |
|                                | **Small Government Entities** has   |
|                                | population of less than 50,000      |
|                                | persons                             |
+--------------------------------+-------------------------------------+
| Wireless Telephony and Paging  | 1,500 Employees or Fewer            |
| and Messaging                  |                                     |
+--------------------------------+-------------------------------------+
| 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                 |                                     |
+--------------------------------+-------------------------------------+
| Multipoint Distribution        | Auction special size standard       |
| Service                        | (1996) --                           |
|                                |                                     |
|                                | **Small Business** is \$40M or less |
|                                | average annual gross revenues for   |
|                                | three preceding calendar years      |
|                                |                                     |
|                                | Prior to Auction --                 |
|                                |                                     |
|                                | **Small Business** has annual       |
|                                | revenue of \$12.5M or less          |
+--------------------------------+-------------------------------------+
| Multichannel Multipoint        | \$12.5 Million in Annual Receipts   |
| Distribution Service           | or Less                             |
+--------------------------------+-------------------------------------+
| Instructional Television Fixed |                                     |
| Service                        |                                     |
+--------------------------------+-------------------------------------+
| Local Multipoint Distribution  | Auction special size standard       |
| Service                        | (1998) --                           |
|                                |                                     |
|                                | **Small Business** is \$40M or less |
|                                | average annual gross revenues for   |
|                                | three preceding years               |
|                                |                                     |
|                                | **Very Small Business** is average  |
|                                | gross revenues of \$15M or less for |
|                                | the preceding three years           |
+--------------------------------+-------------------------------------+
| 218-219 MHZ Service            | First Auction special size standard |
|                                | (1994) --                           |
|                                |                                     |
|                                | **Small Business** is an entity     |
|                                | that, together with its affiliates, |
|                                | has no more than a \$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       | \$12.5 Million in Annual Receipts   |
| Television Systems             | 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           | 750 Employees or Fewer              |
| Broadcasting and Wireless      |                                     |
| Communications Equipment       |                                     |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Audio and Video Equipment      |                                     |
| Manufacturers                  |                                     |
+--------------------------------+-------------------------------------+
| Telephone Apparatus            | 1,000 Employees or Fewer            |
| Manufacturers (Except          |                                     |
| 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]: New Northwest Broadcasters, L.L.C. also time-brokers Station
    KUJ-FM, Walla Walla, Washington. Station KUJ-FM is licensed to
    Alexandria Communications.

[^2]: 47 C.F.R. § 73.1216.

[^3]: *See* Confidential Complaint dated July 31, 2002 at 2
    ("*Complaint*").

[^4]: *Id*.

[^5]: *See* Letter from Charles W. Kelley, Chief, Investigations and
    Hearings Division, Enforcement Bureau, Federal Communications
    Commission to NNB, dated November 15, 2002 ("*LOI*").

[^6]: *See* Letter from Trila Bumstead, Chief Financial Officer, NNB, to
    Charles W. Kelley, Chief, Investigations and Hearings Division,
    Enforcement Bureau, dated December 23, 2002 ("*Response*").

[^7]: *Id*.

[^8]: 47 U.S.C. § 509.

[^9]: 47 C.F.R. § 73.1216 specifically provides that a licensee that
    broadcasts or advertises information about a contest it conducts
    shall fully and accurately disclose the material terms of the
    contest, and shall conduct the contest substantially as announced or
    advertised. No contest description shall be false, misleading or
    deceptive with respect to any material term.

[^10]: *See* 47 C.F.R. § 73.1216, notes 1(b) and 2. Note 1 to that rule
    provides that the material terms of the contest include "the extent,
    nature and value of prizes" and "the basis for valuation of the
    prizes." Note 2 to the rule states:

    In general, the time and manner of disclosure of the material terms
    of a contest are within the licensee's discretion. However, the
    obligation to disclose the material terms arises at the time the
    audience is first told how to enter or participate and continues
    thereafter. The material terms should be disclosed periodically by
    announcements broadcast on the station conducting the contest, but
    need not be enumerated each time an announcement is sufficient. In
    addition to the required broadcast announcements, disclosure of
    material terms may be made in a non-broadcast manner.

[^11]: *See Response* at 4.

[^12]: *Id.* at Exhibit E.

[^13]: *Id.* at 6.

[^14]: *Id.* at 7.

[^15]: *Id.*

[^16]: *Id.*

[^17]: *Id.*

[^18]: *WMJX, Inc.*, 48 RR 2d 1339, 1355 (1981); Report and Order*,
    Rules Relating to Licensee-Conducted Contests,* 60 FCC 2d 1072
    (1976).

[^19]: *In re Headliner Radio, Inc. (KSXY-FM)*, 8 FCC Rcd 2962 (MMB
    1993); *In re Lincoln Dellar*, 8 FCC Rcd 2582, 2585 (MMB-ASD 1993)
    (where the cancellation of a pre-announced contest violated the
    pertinent Commission rule because the contest was not then conducted
    "substantially as announced").

[^20]: *See* *AT&T Wireless Services, Inc.*, 17 FCC Rcd 21866, 21871
    (2002); *see also* *Station KVGL, Inc*., 42 FCC 2d 258, 259 (1973).

[^21]: 47 U.S.C. § 503(b)(1)(B); 47 C.F.R. § 1.80(a)(1); s*ee 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, 97^th^ 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.

[^22]: 47 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).

[^23]: *See, e.g., SBC Communications, Inc.,* Apparent Liability for
    Forfeiture, Forfeiture Order, 17 FCC Rcd 7589, 7591, ¶ 4 (2002)
    (forfeiture paid).

[^24]: Section 312(f)(1) of the Act, 47 U.S.C. § 312(f)(1), which
    applies to 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 ...." *See Southern California Broadcasting Co.*, 6 FCC Rcd
    4387 (1991).

[^25]: *The 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*"*);* 47 C.F.R. § 1.80(b).

[^26]: 47 U.S.C. § 503(b)(2)(D).

[^27]: 47 U.S.C. § 503(b).

[^28]: 47 C.F.R. §§ 0.111, 0.311 and 1.80.

[^29]: *See* 47 C.F.R. § 1.1914.