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If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) Notice of Apparent Liability for Forfeiture of ) ) OSBORN ENTERTAINMENT ) File No. 920EF0041 ENTERPRISES CORPORATION ) ) Licensee of Microwave Station WNEU998, ) Atlanta, Georgia ) NOTICE OF APPARENT LIABILITY FOR FORFEITURE Adopted: September 20, 1999 Released: September 21, 1999 By the Chief, Enforcement and Consumer Information Division, Wireless Telecommunications Bureau: I. Introduction 1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find that Osborn Entertainment Enterprises Corporation ("OEEC"), licensee of Microwave Station WNEU998, Atlanta, Georgia, acquired control of Station WNEU998, without obtaining the requisite authority from the Commission, in apparent violation of Section 310(d) of the Communications Act of 1934, as amended ("Act"), former Section 101.53(a) of the Commission's Rules, and current Section 1.948 of the Commission's Rules. We conclude that OEEC is apparently liable for a forfeiture in the amount of six thousand dollars ($6,000). II. Background 2. The license for Station WNEU998 was originally issued to Osborn Sound & Communications of Georgia, Inc. ("OSCG") on December 12, 1989. The authorization was later renewed with an expiration date of November 24, 1999. As part of an intracorporate reorganization, OSCG dissolved on or about December 22, 1995, and its assets were merged into OEEC. Subsequently on February 20, 1997, Capstar Radio Broadcasting Partners, Inc. ("Capstar") acquired control of OEEC through a merger of its parent company into a Capstar subsidiary. 3. On March 5, 1999, approximately three and a half years after the dissolution of OSCG, OEEC brought this matter to the Commission's attention and filed a request for special temporary authority ("STA") to enable OEEC to continue to operate under the license for Station WNEU998. In addition to seeking an STA for Station WNEU998, which was granted on March 15, 1998, OEEC filed applications on March 18, 1999 for consent to assign and transfer the license of Station WNEU998. Those applications have since been granted. III. Discussion 4. Section 310(d) of the Act provides in pertinent part: No construction permit or Station license, or any rights thereunder, shall be transferred, assigned, or disposed of in any manner, voluntarily or involuntarily, directly or indirectly, or by transfer of control of any corporation holding such permit or license, to any person except upon application to the Commission and upon finding by the Commission that the public interest, convenience, and necessity will be served thereby. Similarly, Section 1.948 of the Commission's Rules (formerly Section 101.53), provides in pertinent part: Except as provided in this section, authorizations in the Wireless Radio Services may be assigned by the licensee to another party, voluntarily or involuntarily, directly or indirectly, or the control of a licensee holding such authorizations may be transferred, only upon application to and approval by the commission . . . ." 5. In the instant case, the evidence reveals that control of Station WNEU998 twice changed without prior Commission consent, in apparent contravention of Section 310(d) of the Act, and former Section 101.53, now Section 1.948, of the Commission's Rules. The first change occurred with the unauthorized assignment of the license on December 22, 1995, the date on which OSCG dissolved and OEEC assumed control of the license. The second change occurred with the unauthorized transfer of control on February 20, 1997, when Capstar acquired control of OEEC. In both instances, OEEC concedes that "by apparent oversight, no transfer application was filed with the Commission." Such inadvertence, however, does not establish a basis for relieving OEEC of its liability for failing to comply with statutory requirements and the Commission's rules. The Commission has held that an act or omission is "willful" if it is a conscious act or omission whether or not there is any intent to violate the rule. 6. Failure to obtain Commission consent to a transfer of control is a violation for which the Commission has long imposed monetary forfeitures. Each day of a continuing violation is considered a separate violation for purposes of computing a forfeiture. The Commission's Forfeiture Policy Statement, which became effective on October 14, 1997, provides that cases arising from facts that occurred prior to the effective date of the Forfeiture Policy Statement shall be decided on a case-by-case basis. Because the violations in question began in 1995, we will determine the appropriate forfeiture using the case-by-case method. Section 503(b)(2)(D) of the Act requires that the Commission consider "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" when assessing a forfeiture. In Telecourier Communications Corp., 10 FCC Rcd 10014 (Wireless Tel. Bur. 1995), the Enforcement Division of the Wireless Telecommunications Bureau imposed a $2,500 forfeiture against a licensee that had engaged in a pro forma transfer of control of two public land mobile Stations. 7. We consider the instant case to be considerably more egregious than Telecourier because this case involves a substantial transfer of control, which occurred on February 20, 1997, when Capstar acquired control of OEEC. The failure to obtain consent for a substantial transfer of control warrants a forfeiture substantially more than the $2,500 forfeiture imposed in Telecourier. Indeed, we believe that it is appropriate to set the forfeiture amount for a substantial unauthorized transfer of control at $3,000. Moreover, the previous unauthorized assignment of the license, which occurred on December 22, 1995, is an aggravating factor. The repeated instances of unauthorized operation continued for a significant period of time. Notwithstanding these aggravating factors, we also recognize that OEEC voluntarily brought these matters to the Commission's attention and this mitigates the amount of the forfeiture. Taking into consideration these and all of the other factors required by Section 503(b)(2)(D) of the Act, we believe it appropriate to propose a total forfeiture against OEEC of six thousand dollars ($6,000). IV. Ordering Clauses 8. ACCORDINGLY, IT IS ORDERED, pursuant to Section 503(b) of the Communications Act of 1934, as amended, Section 1.80 of the Commission's Rules, and the authority delegated in Section 0.331 of the Commission's Rules, Osborn Entertainment Enterprises Corporation is hereby NOTIFIED of its APPARENT LIABILITY FOR A FORFEITURE in the amount of six thousand dollars ($6,000) for willfully and repeatedly violating Section 310(d) of the Communications Act of 1934, as amended, and former Section 101.53 of the Commission's Rules, now Section 1.948 of the Commission's Rules. 9. IT IS FURTHER ORDERED, pursuant to Section 1.80 of the Commission's Rules, that within thirty days of the release of this Notice, Osborn Entertainment Enterprises Corporation SHALL PAY the full amount of the proposed forfeiture or SHALL FILE a written statement seeking reduction or cancellation of the proposed forfeiture. 10. IT IS FURTHER ORDERED that a copy of this Notice shall be sent by Certified Mail Return Receipt Requested to counsel for Osborn Entertainment Enterprises Corporation, Wiley, Rein & Fielding, 1776 K Street, N.W., Washington, D.C. 20006. FEDERAL COMMUNICATIONS COMMISSION Catherine W. Seidel Chief, Enforcement and Consumer Information Division Wireless Telecommunications Bureau