**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

+----------------------------------+---+------------------------------+
| In the Matter of                 | * | File No. EB-02-IH-0819-AHB   |
|                                  | * |                              |
| **AMERICAN FAMILY ASSOCIATION**  | ) | NAL/Acct. No. 200432080203   |
|                                  | * |                              |
| Licensee of Station KBMP(FM),    | * | FRN 0005025911               |
|                                  |   |                              |
| Enterprise, Kansas               | * | Facility ID No. 91037        |
|                                  | * |                              |
|                                  | ) |                              |
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|                                  | ) |                              |
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|                                  | ) |                              |
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|                                  | ) |                              |
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|                                  |   |                              |
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|                                  | ) |                              |
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+----------------------------------+---+------------------------------+

**NOTICE OF APPARENT LIABILITY FOR FORFEITURE**

**Adopted: July 27, 2004 Released: July 28, 2004**

By the Chief, Enforcement Bureau:

**I. INTRODUCTION**

1\. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
that American Family Association ("AFA"), licensee of non-commercial
radio Station KBMP(FM), Enterprise, Kansas, apparently violated the main
studio rule by willfully and repeatedly failing to meet the location
requirements set forth in section 73.1125(a) of the Commission's rules,
and by willfully and repeatedly failing to maintain a meaningful
management and staff presence at its main studio.[^1] We also find that
AFA apparently failed to comply with a Bureau order by failing to
respond fully to a Bureau inquiry that directed AFA to produce certain
information concerning the main studio of Station KBMP(FM). Based on our
review of the facts and circumstances of this case, we find that AFA is
apparently liable for a forfeiture of ten thousand dollars (\$10,000)
for violations of the main studio rule at Station KBMP(FM) and for
failing to respond fully to a Bureau order.

**II. BACKGROUND**

2\. AFA acquired the construction permit for unbuilt Station KBMP(FM)
from Solid Rock Broadcasting, Inc. in August of 1999.[^2] By letter
dated June 21, 2001, AFA requested a waiver of the Commission's main
studio rule, 47 C.F.R. § 73.1125, to co-locate the main studio of
KBMP(FM) with that of its co-owned Station KCFN(FM), Wichita, Kansas.
AFA supplemented this request by letters dated August 16, 2001, and May
1, 2002. AFA placed Station KBMP(FM) into operation on March 6, 2002,
submitting a covering license application that same day.[^3] Six months
later, by letter dated September 5, 2002, AFA requested expedited
processing of its main studio waiver request. In that letter, signed by
Patrick J. Vaughn in his capacity as General Counsel of AFA, AFA stated:

> KBMP-FM has been on the air since March 6, 2002, but American Family
> Association, Inc. (AFA) has been unable to comply with the Main Studio
> staffing requirements. AFA requests expedited processing of its Main
> Studio waiver request before we are hit with forfeitures.[^4]

3\. Upon receiving this letter, the Media Bureau staff telephoned Mr.
Vaughn, asking him to explain his statement in his September 5 letter
about not complying with the main studio rule. By letter dated October
1, 2002, Mr. Vaughn stated:

> Prior to building KBMP, AFA operated a translator in Enterprise, KS,
> with the First Christian Church of Enterprise serving as the
> translator's local sponsor. Joe Minnick, a member of First Christian
> Church, working as a volunteer prepared local public service spots to
> run at the top on the hour on the translator. In the planning for KBMP
> we anticipated that Mr. Minnick would coordinate other volunteers to
> staff the main studio. However, Mr. Minnick has moved. First Christian
> Church continues to act as our local sponsor and pays the tower rent,
> but without Mr. Minnick they are unable to muster sufficient
> volunteers to cover the "meaningful presence" requirement. Therefore,
> AFA has requested **expedited processing** of this request for a main
> studio waiver.[^5]

4\. By letter dated October 31, 2002, the Audio Division of the Media
Bureau of the Commission granted AFA's waiver request, "without
prejudice to whatever action, if any, the Commission deems appropriate
in light of AFA's apparent violation of the Commission's main studio
requirements."[^6] The Media Bureau referred the matter to the
Enforcement Bureau for possible enforcement action.

5\. By letter dated November 13, 2003, the Investigations and Hearings
Division of the Commission's Enforcement Bureau sent a letter of inquiry
to Mr. Vaughn directing AFA to provide nine categories of information
and copies of all documents relevant to AFA's responses.[^7] The
categories of information included such matters as: the exact address of
all current and previous main studio locations for Station KBMP(FM) and
the date each studio location was established; all waiver requests and
waivers of the main studio rule for the station; for each main studio
address, the days of the week and the hours of the day during which that
studio was/is open to the public; a detailed description of the
technical production and transmission equipment and capacity maintained
at the main studio(s); the identity of each person employed at the
station's main studio and pertinent information about each person's
employment; and the local or toll-free telephone number maintained for
the station.[^8]

6\. By letter dated November 21, 2003, Mr. Vaughn provided the following
response, which was accompanied only by a copy of the October 31, 2002
letter granting AFA's waiver request:

> On October 31, 2002, the Commission granted a waiver of 47 C.F.R.
> Section 73.1125 for KBMP-FM, Enterprise, Kansas. A copy of the waiver
> is attached as Exhibit One.
>
> Toll-free telephone number (800) 705-4450 is posted at the KBMP-FM
> tower site.[^9]

**III. DISCUSSION**

7\. Under section 503(b)(1) of the Communications Act of 1934, as
amended (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 forfeiture penalty.[^10] 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.[^11] The
Commission will then issue a forfeiture if it finds by a preponderance
of the evidence that the person has willfully or repeatedly violated the
Act or a Commission rule.[^12] As described in greater detail below, we
conclude under this procedure that AFA is apparently liable for a
forfeiture in the amount of \$10,000. This \$10,000 forfeiture consists
of \$7,000 for AFA's apparent willful and repeated violations of the
main studio rule, the location and staffing requirements of which are
set forth in section 73.1125 of the Commission's rules and Commission
precedent, and \$3,000 for failing to respond fully to a Bureau order.

A.  **AFA Apparently Has Willfully and Repeatedly Failed to Meet the
    Location and Staffing Requirements of the Main Studio Rule.**

8\. The Commission promulgated the main studio rule to ensure that a
station's main studio serves the needs and interests of the residents of
the station's community of license.[^13] The Commission has long held
that a local presence is critical to fulfilling this function.[^14]
Thus, section 73.1125(a) of the Commission's rules requires that a
station's main studio either be placed (a) within a station's community
of license; (b) at any location within the principal community contour
of any AM, FM, or TV broadcast station licensed to the station's
community of license; or (c) within twenty-five (25) miles from the
reference coordinates of the center of its community of license.[^15] A
licensee must acquire written authorization before it places a main
studio at a location other than one specified in section
73.1125(a).[^16]

9\. For a main studio to fulfill its primary function, the Commission
has determined that a licensee must also "equip the main studio with
production and transmission facilities that meet applicable standards,
maintain continuous program transmission capability, and *maintain a
meaningful management and staff presence*."[^17] A meaningful management
and staff presence exposes stations to community activities, helps them
to identify community needs and interests and, consequently, helps them
meet their community service requirements.[^18] In *Jones Eastern II*,
the Commission defined a minimally acceptable meaningful management and
staff presence as full-time managerial and staff personnel and, though
the Commission stated that it did not require that management personnel
be "chained to the desk," it did require that such personnel report to
work at the main studio on a daily basis, spend a substantial amount of
time there, and use the station as a 'home base."[^19] To qualify as
managerial, the Commission stated that the employee should be
"authorized to make typical managerial decisions pertaining to
facilities, equipment, programming, sales and emergency
procedures."[^20]

10\. By AFA's own admission, the main studio for Station KBMP(FM) did
not meet the location requirements of section 73.1125(a) from March 6,
2002, when the station commenced operation, until October 31, 2002, when
AFA received a waiver of the main studio rule. The record shows that
this was a knowing violation by AFA, as AFA's request for expedited
processing sought action by the Commission's Media Bureau "before we are
hit with forfeitures."[^21] In this regard, we note that in 2002, AFA
was issued a forfeiture order in the amount of \$5,000 for operating
Station KBKC-FM, Moberly, Missouri, without a main studio.[^22] As in
this case, AFA had put that station on the air after filing a main
studio waiver request, but did not have a grant of that waiver when it
commenced operation of the station without a local main studio.

11\. AFA likewise admits that it failed to maintain a meaningful staff
or management presence at a location within Enterprise, Kansas, within
the Station KBMP(FM) principal community contour or within twenty-five
miles from the reference coordinates of Enterprise, Kansas during the
period from March 6, 2002 to October 31, 2002.[^23]

> **B. AFA Apparently Has Willfully Failed to Respond in Full to a
> Bureau Order.**

12\. Section 403 of the Act authorizes the Commission to institute on
its own motion any inquiry into, *inter alia*, any matter relating to
the enforcement of the Act or the Commission's rules.[^24] Section
308(b) provides that the Commission "may require from an applicant or
licensee further written statements of fact during the license term. . .
."[^25] Pursuant to that and other authority,[^26] the Bureau ordered
AFA to provide certain information. AFA did not do so. A party cannot
pick and choose which portions of the directives in a Bureau inquiry
letter require a response.[^27] However, that is the course of action
taken by AFA, through its General Counsel, Mr. Vaughn, in his letter of
November 21, 2003. Out of nine categories of information and documents
the Enforcement Bureau's letter dated November 13, 2003 directed AFA to
provide, Mr. Vaughn responded to two while offering no explanation for
not responding to the other categories.[^28]

**C. Proposed Action**

13\. Section 503(b) of the Act and section 1.80(a) of the Commission's
rules both state that any person who willfully or repeatedly fails to
comply with the provisions of the Act, the rules or Commission orders
shall be liable for a forfeiture penalty.[^29] The Commission's
*Forfeiture Policy Statement* sets a base forfeiture amount of \$7,000
for violation of the main studio rule.[^30] The *Forfeiture Policy
Statement* sets forth a base forfeiture amount of \$4,000 for failure to
respond to Commission communications.[^31] The *Forfeiture Policy
Statement* also specifies that the Commission shall adjust a forfeiture
based upon consideration of the factors enumerated in section
503(b)(2)(D) of the Act, such as "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 such
other matters as justice may require."[^32]

14\. It appears that, from at least March 6, 2002, and continuing up to
October 31, 2002, AFA willfully and repeatedly violated the main studio
rule, by failing to locate the Station KBMP(FM) main studio at a place
in accordance with section 73.1125(a), and by failing to maintain a
meaningful local management and staff presence. The deliberate and
knowing violation of this rule by a party that has previously been
assessed a forfeiture for violating the rule under similar circumstances
warrants (at the very least) the full \$7,000 forfeiture proposed here.

15\. Likewise, it appears that AFA willfully violated a Bureau order by
failing to respond in full to the Enforcement Bureau's letter of inquiry
of November 13, 2003. Instead of providing the nine categories of
information and providing relevant documents for all categories as
directed by the Bureau's inquiry (or explaining why requested
information in particular categories was not available), AFA, through
its General Counsel, only responded to two categories of information and
only provided a relevant document within the scope of those two
categories. Because AFA did submit a partial response, the \$4,000 base
amount for such misconduct will be reduced to \$3,000.

16\. Accordingly, applying the *Forfeiture Policy Statement* and the
statutory factors to this case, we conclude that AFA is apparently
liable for a \$10,000 forfeiture, for violating the Commission's main
studio rule and failing to respond in full to a Bureau order.

**IV. ORDERING CLAUSES**

17\. ACCORDINGLY, IT IS ORDERED THAT, pursuant to section 503(b) of the
Communications Act of 1934, as amended, 47 U.S.C. § 503(b), and section
1.80 of the Commission's rules, 47 C.F.R. § 1.80, American Family
Association, is hereby NOTIFIED of its APPARENT LIABILITY FOR FORFEITURE
in the amount of ten thousand dollars (\$10,000) for willfully and
repeatedly violating the Commission's main studio rule and for failing
to respond fully to a Bureau order.

18\. IT IS FURTHER ORDERED THAT, pursuant to section 1.80 of the
Commission's rules, 47 C.F.R. § 1.80, within thirty (30) days of the
release of this NOTICE OF APPARENT LIABILITY, American Family
Association SHALL PAY the full amount of the proposed forfeiture or
SHALL FILE a written statement seeking reduction or cancellation of the
proposed forfeiture.

19\. Payment of the forfeiture may be made by mailing a check or similar
instrument, payable to the order of the Federal Communications
Commission. Such remittance should be made to the Forfeiture Collection
Section, Finance Branch, Federal Communications Commission, P.O. Box
73482, Chicago, Illinois 60673-7482. The payment should note the
NAL/Acct. No. and FRN No. referenced above.

20\. The response, if any, to this NOTICE OF APPARENT LIABILITY, must be
mailed to William H. Davenport, Chief, Investigations and Hearings
Division, Enforcement Bureau, Federal Communications Commission, 445
12^th^ Street, S.W., Room 4-C321, Washington DC 20554 and MUST INCLUDE
the NAL/Acct. No. referenced above.

21\. 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.

22\. Requests for payment of the full amount of this Notice of Apparent
Liability under an installment plan should be sent to: Chief, Credit and
Management Center, 445 12th Street, S.W., Washington, D.C. 20554.[^33]

23\. Under the Small Business Paperwork Relief Act of 2002, Pub.L.No.
107-198, 116 Stat. 729 (June 28, 2002), the Commission is engaged in a
two-year tracking process regarding the size of entities involved in
forfeitures. If AFA qualifies as a small entity and wishes to be treated
as a small entity for tracking purposes, please so certify to us within
30 days of this NAL, either in AFA's response to the NAL or in a
separate filing to be sent to the Investigations and Hearings Division,
Enforcement Bureau, 445 12^th^ Street, S.W., Washington, D.C. 20554.
AFA's certification should indicate whether AFA, including its parent
entity and its subsidiaries (if any), meets one of the definitions set
forth in the list in Attachment A of this NAL. This information will be
used for tracking purposes only. AFA's 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 of 1934, as
amended. If AFA has any questions regarding any of the information
contained in Attachment A, please contact the Commission's Office of
Communications Business Opportunities at (202) 418-0990.

24\. IT IS FURTHER ORDERED that a copy of this NOTICE OF APPARENT
LIABILITY shall be sent, by Certified Mail/Return Receipt Requested, to
Patrick J. Vaughn, General Counsel, American Family Association, P.O.
Drawer 2440, Tupelo, MS 38803.

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***                     |                                     |
+--------------------------------+-------------------------------------+
| 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]: *See* 47 C.F.R. § 73.1125(a); *see also Main Studio and Program
    Origination Rules*, 2 FCC Rcd 3215 (1987), *clarified* 3 FCC Rcd
    5024 (1988); *Jones Eastern of Outer Banks, Inc. ("Jones Eastern
    I")*, 6 FCC Rcd 3615 (1991), *clarified* 7 FCC Rcd 6800 (1992)
    *("Jones Eastern II")*.

[^2]: *See* FCC File No. BAPED-990514EA, granted July 13, 1999, with a
    consummation date of August 17, 1999.

[^3]: *See* FCC File No. BAPED-990514EA.

[^4]: Letter from Patrick J. Vaughn to Marlene H. Dortch, Secretary of
    the Commission, dated September 5, 2002.

[^5]: Letter from Patrick J. Vaughn to Marlene H. Dortch, dated October
    1, 2002 (emphasis in original).

[^6]: Letter from Peter H. Doyle, Chief, Audio Division of Commission's
    Media Bureau, to Patrick J. Vaughn, dated October 31, 2002.

[^7]: Letter from William D. Freedman, Deputy Chief, Investigations and
    Hearings Division of Commission's Enforcement Bureau, to Patrick J.
    Vaughn, dated November 13, 2003.

[^8]: *Id.* at 3-4.

[^9]: Letter from Patrick J. Vaughn to David Brown, Investigations and
    Hearings Division of Commission's Enforcement Bureau, dated November
    21, 2003.

[^10]: 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" 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.

[^11]: 47 U.S.C. § 503(b); 47 C.F.R. § 1.80(f).

[^12]: *See, e.g., SBC Communications, Inc*., *Apparent Liability for
    Forfeiture,* Forfeiture Order, 17 FCC Rcd 7589, 7591 ¶ 4 (2002). In
    *SBC Communications*, the Commission assessed a \$100,000 forfeiture
    against a carrier for its willful refusal to supply a sworn
    declaration in response to an Enforcement Bureau letter of inquiry.
    The Commission stated: "\[T\]he order here was squarely within the
    Commission's authority and, in any event, parties are required to
    comply with Commission orders even if they believe them to be
    outside the Commission's authority." *Id.* at ¶ 5.

[^13]: *Main Studio and Program Origination Rules*, Memorandum Opinion
    and Order on Reconsideration, 3 FCC Rcd at 5026 ¶ 23.

[^14]: *See, e.g., Main Studio and Program Origination Rules*, Report
    and Order, 2 FCC Rcd at 3217 ¶ 29.

[^15]: 47 C.F.R. § 73.1125(a).

[^16]: 47 C.F.R. § 73.1125(d)(2).

[^17]: *Main Studio and Program Origination Rules*, Memorandum Opinion
    and Order on Reconsideration, 3 FCC Rcd at 5026 ¶ 24 (emphasis
    added).

[^18]: *Id.*

[^19]: *Jones Eastern II*, 7 FCC Rcd at 6801-6802 ¶ 11.

[^20]: *Id.* at 6801 ¶ 10.

[^21]: Letter from Patrick J. Vaughn to Marlene Dortch, dated September
    5, 2002.

[^22]: *See American Family Association*, Forfeiture Order, 17 FCC Rcd
    18,135 (EB 2002), *recon. denied* 18 FCC Rcd 2413 (EB 2003).

[^23]: Letter from Patrick J. Vaughn to Marlene Dortch, dated September
    5, 2002*; see also* letter from Patrick J. Vaughn to Marlene Dortch,
    dated October 1, 2002.

[^24]: *See* 47 U.S.C. § 403.

[^25]: 47 U.S.C. § 308(b). *See also* 47 C.F.R. § 73.1015.

[^26]: *See* 47 U.S.C. § 154(i),(j).

[^27]: *See, e.g., SBC Communications, supra* note 12; *Radio Moultrie,
    Inc.*, Order to Show Cause and Notice of Opportunity for Hearing, 17
    FCC Rcd 24,304 (2002) (order to show cause to revoke license for,
    *inter alia*, failure to respond to Bureau inquiry letters); *World
    Communications Satellite Systems, Inc.*, Forfeiture Order, 19 FCC
    Rcd 2718 (EB 2004) (\$10,000 forfeiture for submitting a
    jurisdictional objection in lieu of a response to a Bureau inquiry
    letter).

[^28]: Mr. Vaughn's letter did include a sentence stating, "Please
    contact me if you have further questions regarding AFA's compliance
    with 47 C.F.R. Section 73.1125 at KBMP-FM, Enterprise, Kansas."
    Letter from Patrick J. Vaughn to David Brown, dated November 21,
    2003. However, that is no substitute for providing, for each
    category of information requested, either the information requested
    or an explanation as to why the information was not available.

[^29]: *See* 47 U.S.C. § 503(b); 47 C.F.R § 1.80.

[^30]: *The Commission's Forfeiture Policy Statement and Amendment of
    Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines*,
    12 FCC Rcd 17087, 17115 (1997), *recon. denied* 15 FCC Rcd 303
    (1999) (*Forfeiture Policy Statement);* 47 C.F.R. § 1.80(b).

[^31]: *Id.*

[^32]: 47 U.S.C. § 503(b)(2)(D). *See also Forfeiture Policy Statement*,
    12 FCC Rcd at 17100 ¶ 27.

[^33]: *See* 47 C.F.R. § 1.1914.