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CRS Radio Holding, Inc

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Released: June 2, 2011

Federal Communications Commission

DA 11-978

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
)
CRS Radio Holding Inc.
)
File No. EB-08-NF-0101
Licensee of Radio Station WFBX(AM)
)
NAL/Acct. No. 201132640002
Spring Lake, North Carolina
)
FRN 0004202685
Facility ID: 19875
)
)

NOTICE OF APPARENT LIABILITY FOR FORFEITURE AND ORDER

Adopted: June 1, 2011
Released: June 2, 2011
By Resident Agent, Norfolk Office, South Central Region, Enforcement Bureau:

I.

INTRODUCTION

1.
In this Notice of Apparent Liability for Forfeiture and Order ("NAL"), we find that CRS
Radio Holding Inc. ("CRS"),1 licensee of Station WFBX (AM), in Spring Lake North Carolina, apparently
willfully violated section 11.35 of the Commission's rules ("Rules")2 by failing to ensure that emergency
alert system ("EAS") equipment was operational. We conclude that CRS is apparently liable for a forfeiture
in the amount of eight thousand dollars ($8,000) and direct the company to submit a statement signed
under penalty of perjury by an officer or director stating that Station WFBX(AM) currently has
operational EAS equipment installed as required pursuant to section 11.35.

II.

BACKGROUND

2.
On October 28, 2008, in response to a complaint that the station had been without
operational EAS equipment for more than a year, an agent from the Enforcement Bureau's Norfolk Office
("Norfolk Office") inspected Station WFBX's main studio in Fayetteville, North Carolina. Station WFBX's
main studio was co-located with the main studio for co-owned Station WFAY. The agent observed that
Station WFBX did not have any EAS equipment located in the room which contained the station's control
equipment. Moreover, the EAS equipment for Station WFAY was not operational, because it was turned
off and was not connected to an antenna. None of the staff at Station WFBX could produce any EAS logs3
or other evidence that any weekly or monthly EAS tests had been sent or received. Staff members for
Station WFAY and Station WFBX stated that both stations had been without EAS equipment since the
stations relocated to the current main studio. Stations WFBX and WFAY notified the Commission in letters


1 At the time of the inspection, WCIE-AM, INC. was listed as the licensee for Station WFBX. See file number BL-
20040831ACQ. After the inspection, the name of the licensee for Station WFBX was changed to CRS Radio
Holding Inc. The change was administrative; ownership of Station WFBX did not change. CRS Radio Holding Inc.
is currently listed as the licensee for Station WFBX. See file number BL-20040831ACQ.
2 47 C.F.R. 11.35.
3 See 47 C.F.R. 11.35 (requiring EAS participants to log when EAS equipment is removed for repair and restored
to service and to keep records when EAS tests are failed to be received).

Federal Communications Commission

DA 11-978

dated May 14, 2008 that their studio locations had changed to the current main studio in Fayetteville.4

III.

DISCUSSION

3.
Section 503(b) of the Communications Act of 1934, as amended ("Act"),5 provides that any
person who willfully or repeatedly fails to comply substantially with the terms and conditions of any license,
or willfully or repeatedly fails to comply with any of the provisions of the Act or of any rule, regulation or
order issued by the Commission thereunder, shall be liable for a forfeiture penalty. 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.6 The legislative history to section 312(f)(1) of the Act clarifies that this definition
of willful applies to both section 312 and 503(b) of the Act7 and the Commission has so interpreted the term
in the section 503(b) context.8 The Commission may also assess a forfeiture for violations that are merely
repeated, and not willful.9 The term "repeated" means the commission or omission of such act more than
once or for more than one day.10
4.
Section 11.35 of the Rules states that "Broadcast stations... are responsible for ensuring that
EAS Encoders, EAS Decoders and Attention Signal generating and receiving equipment used as part of the
EAS are installed so that the monitoring and transmitting functions are available during the times the
stations and systems are in operation..."11 On October 28, 2008, an agent from the Norfolk Office observed
that Station WFBX did not have any operational EAS equipment installed when the station was in
operation. The station also did not have any EAS logs indicating when EAS equipment was installed or
removed or any records that any EAS tests had been sent or received. Staff members from Stations WFAY
and WFBX said that both stations had been without operational EAS equipment since the studios relocated
to their current location. Station WFBX relocated to the current main studio before May 14, 2008. Because
CRS consciously operated Station WFBX without EAS equipment for more than one day, we find the
apparent violations to be willful and repeated. Based on the evidence before us, we find that CRS
apparently willfully and repeatedly violated section 11.35 of the Rules by failing to install operational EAS
equipment while the station was in operation.


4 See Letters from Todd A. Steiner, Counsel for CRS Radio Holding Inc., to Marlene H. Dortch, Secretary, Federal
Communications Commission, dated May 14, 2008.
5 47 U.S.C. 503(b).
6 47 U.S.C. 312(f)(1).
7 H.R. Rep. No. 97-765, 97th Cong. 2d Sess. 51 (1982) ("This provision [inserted in section 312] defines the terms
`willful' and `repeated' for purposes of section 312, and for any other relevant section of the act (e.g., section
503).... As defined ... `willful' means that the licensee knew that he was doing the act in question, regardless of
whether there was an intent to violate the law. `Repeated' means more than once, or where the act is continuous, for
more than one day. Whether an act is considered to be `continuous' would depend upon the circumstances in each
case. The definitions are intended primarily to clarify the language in sections 312 and 503, and are consistent with
the Commission's application of those terms ...").
8 See, e.g., Application for Review of Southern California Broadcasting Co., Memorandum Opinion and Order, 6
FCC Rcd 4387, 4388 (1991) recon. denied, 7 FCC Rcd 3454 (1992) ("Southern California Broadcasting Co.").
9 See, e.g., Callais Cablevision, Inc., Notice of Apparent Liability for Monetary Forfeiture, 16 FCC Rcd 1359, 1362
10 (2001) ("Callais Cablevision, Inc.") (proposing a forfeiture for, inter alia, a cable television operator's repeated
signal leakage).
10 Section 312(f)(2) of the Act, 47 U.S.C. 312(f)(2), which also applies to violations for which forfeitures are
assessed under section 503(b) of the Act, provides that "[t]he term 'repeated', when used with reference to the
commission or omission of any act, means the commission or omission of such act more than once or, if such
commission or omission is continuous, for more than one day."
11 47 C.F.R. 11.35.
2

Federal Communications Commission

DA 11-978

5.
Pursuant to the Commission's Forfeiture Policy Statement and section 1.80 of the Rules,
the base forfeiture amount for EAS equipment not installed or not operational is $8,000.12 In assessing the
monetary forfeiture amount, we must also take into account the statutory factors set forth in section
503(b)(2)(E) of the Act, which include the nature, circumstances, extent, and gravity of the violations, and
with respect to the violator, the degree of culpability, and history of prior offenses, ability to pay, and other
such matters as justice may require.13 Applying the Forfeiture Policy Statement, section 1.80 of the Rules,
and the statutory factors to the instant case, we conclude that CRS is apparently liable for a total forfeiture of
$8,000.
6.
We direct CRS Radio to submit a statement signed under penalty of perjury by an officer
or director of CRS Radio stating that it currently has operational EAS equipment installed for Station
WFBX(AM) as required pursuant to section 11.35 of the Rules. This statement must be provided to the
Norfolk Office at the address listed in paragraph 11 within thirty days of the release date of this Notice of
Apparent Liability for Forfeiture and Order.

IV.

ORDERING CLAUSES

7.
Accordingly, IT IS ORDERED that, pursuant to section 503(b) of the Communications
Act of 1934, as amended, and sections 0.111, 0.204, 0.311, 0.314 and 1.80 of the Commission's Rules, CRS
Radio Holding Inc. is hereby

NOTIFIED

of this

APPARENT LIABILITY FOR A FORFEITURE

in
the amount of eight thousand dollars ($8,000) for violation of section 11.35 of the Rules.14
8.

IT IS FURTHER ORDERED

that, pursuant to section 1.80 of the Commission's Rules
within thirty days of the release date of this Notice of Apparent Liability for Forfeiture and Order, CRS
Radio Holding Inc.

SHALL PAY

the full amount of the proposed forfeiture or

SHALL FILE

a written
statement seeking reduction or cancellation of the proposed forfeiture.
9.

IT IS FURTHER ORDERED

that, within fifteen days of the release date of this Notice
of Apparent Liability for Forfeiture and Order, CRS Radio Holding Inc.

SHALL SUBMIT

a sworn
statement as described in paragraph 6 to the Norfolk Office listed below.
10.
Payment of the forfeiture must be made by credit card, check or similar instrument,
payable to the order of the Federal Communications Commission. The payment must include the
Account Number and FRN Number referenced above. Payment by check or money order may be mailed
to Federal Communications Commission, P.O. Box 979088, St. Louis, MO 63197-9000. Payment by
overnight mail may be sent to U.S. Bank Government Lockbox #979088, SL-MO-C2-GL, 1005
Convention Plaza, St. Louis, MO 63101. Payment by wire transfer may be made to ABA Number
021030004, receiving bank TREAS/NYC, and account number 27000001. For payment by credit card,
an FCC Form 159 (Remittance Advice) must be submitted. When completing the FCC Form 159, enter
the NAL/Account number in block number 23A (call sign/other ID), and enter the letters "FORF" in
block number 24A (payment type code). Requests for full payment under an installment plan should be
sent to: Chief Financial Officer -- Financial Operations, 445 12th Street, S.W., Room 1-A625,
Washington, D.C. 20554.8 If you have questions regarding payment procedures, please contact the
Financial Operations Group Help Desk at 1-877-480-3201 or Email: ARINQUIRIES@fcc.gov. If


12 The Commission's Forfeiture Policy Statement and Amendment of Section 1.80 of the Rules to Incorporate the
Forfeiture Guidelines
, Report and Order, 12 FCC Rcd 17087 (1997) ("Forfeiture Policy Statement"), recon. denied,
15 FCC Rcd 303 (1999); 47 C.F.R. 1.80.
13 47 U.S.C. 503(b)(2)(E).
14 47 U.S.C. 503(b), 47 C.F.R. 0.111, 0.204, 0.311, 0.314, 1.80, 11.35.
8 See 47 C.F.R. 1.1914.
3

Federal Communications Commission

DA 11-978

payment is made, CRS will send electronic notification on the date said payment is made to SCR-
Response@fcc.gov.
11.
The written statement seeking reduction or cancellation of the proposed forfeiture, if any,
must include a detailed factual statement supported by appropriate documentation and affidavits pursuant
to sections 1.80(f)(3) and 1.16 of the Rules. Mail the written statement to Federal Communications
Commission, Enforcement Bureau, South Central Region, Norfolk Office; 1457 Mount Pleasant Road
Suite 113; Chesapeake VA 23322 and include the NAL/Acct. No. referenced in the caption. CRS also shall
email the written response to SCR-Response@fcc.gov.
12.
The Commission will not consider reducing or canceling a forfeiture in response to a claim
of inability to pay unless the petitioner submits: (1) federal tax returns for the most recent three-year period;
(2) financial statements prepared according to generally accepted accounting practices ("GAAP"); or (3)
some other reliable and objective documentation that accurately reflects the petitioner's current financial
status. Any claim of inability to pay must specifically identify the basis for the claim by reference to the
financial documentation submitted.
13.

IT IS FURTHER ORDERED

that a copy of this Notice of Apparent Liability for
Forfeiture and Order shall be sent by both Certified Mail, Return Receipt Requested, and regular mail, to
CRS Radio Holding Inc C/O Putbrese Hunsaker & Trent, P.C.; 200 South Church Street; Woodstock,
Virginia 22664.
FEDERAL COMMUNICATIONS COMMISSION
Joseph P Husnay, Resident Agent
Norfolk Office
South Central Region
Enforcement Bureau
4

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