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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554


                                           )                                
                                                                            
     In the Matter of                      )                                
                                                                            
     Broadcast House of the Pacific Inc.   )     File Number: EB-06-HL-074  
                                                                            
     Licensee of Station KNDI              )   NAL/Acct. No.: 200632860001  
                                                                            
     Honolulu, Hawaii                      )               FRN: 0003776671  
                                                                            
     Facility ID # 37065                   )                                
                                                                            
                                           )                                


                  NOTICE OF APPARENT LIABILITY FOR FORFEITURE

                                                     Released: August 9, 2006

   By the Resident Agent, Honolulu Office, Western Region, Enforcement
   Bureau:

   I. INTRODUCTION

    1. In this Notice of Apparent Liability for Forfeiture ("NAL"), we find
       that Broadcast House of the Pacific Inc. ("Broadcast House"), licensee
       of AM Broadcast Radio station KNDI, in Honolulu, Hawaii, apparently
       repeatedly violated Section 11.35(a)  of the Commission's Rules
       ("Rules") by failing to ensure the operational readiness of KNDI's
       Emergency Alert System ("EAS"). We conclude, pursuant to Section
       503(b) of the Communications Act of 1934, as amended ("Act"), that
       Broadcast House is apparently liable for a forfeiture in the amount of
       eight  thousand dollars ($8,000).

   II. BACKGROUND

    2. On May 1, 2006, and June 1, 2006, agents of the Enforcement Bureau's
       Honolulu Office conducted off air monitoring of radio station KNDI on
       1270 kHz, in Honolulu, Hawaii. On both days, KNDI did not retransmit
       the required monthly test ("RMT") transmitted by the Hawaii State
       Civil Defense at approximately 11:15AM HST.

    3. On June 14, 2006, agents of the Commission's Honolulu Office conducted
       an inspection at the main studio of KNDI located at 1734 South King
       Street, Honolulu, Hawaii. EAS equipment was installed but was not
       operational at the time of inspection. The operator on duty was not
       able to successfully generate a manually-initiated Required Weekly
       Test ("RWT"). The EAS receiver was only able to receive an audio
       signal from one of the two assigned monitoring sources. A review of
       the EAS log and printouts generated by the EAS Encoder/Decoder
       indicated that from April through June 2006, there were no RWTs
       received on channel one of the EAS equipment. EAS logs also indicated
       that no RMTs were retransmitted in April and May 2006. No entries were
       made by KNDI staff in the EAS log to identify the causes of these
       failures or what steps were taken to remedy any failures.

    4. On June 15, 2006, a Honolulu agent spoke with the KNDI contract
       engineer. The engineer indicated that he inspected the KNDI EAS
       equipment earlier that day and acknowledged that he found problems
       with the equipment. Specifically, he indicated that the EAS equipment
       had a faulty relay which prevented the unit from transmitting any
       tests. Also, the power cord for a portable radio that provided the
       audio source for channel one of the EAS equipment was found unplugged
       inside the rack, which resulted in no reception of the channel one
       monitoring source.

   III. DISCUSSION

    5. Section 503(b) of the Act 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. The term "willful" as used in Section 503(b) has been
       interpreted to mean simply that the acts or omissions are committed
       knowingly. The term "repeated" means the commission or omission of
       such act more than once or for more than one day.

    6. The Rules provide that every AM and FM broadcast station is part of
       the nationwide EAS network and is categorized as a participating
       national EAS source unless the station affirmatively requests
       authority to not participate. The EAS provides the President and state
       and local governments with the capability to provide immediate and
       emergency communications and information to the general public. State
       and local area plans identify local primary sources responsible for
       coordinating carriage of common emergency messages from sources such
       as the National Weather Service or local emergency management
       officials. Required monthly and weekly tests originate from EAS Local
       or State Primary sources and must be retransmitted by the
       participating station

    7. Section 11.35 of the Rules requires all broadcast stations to ensure
       that EAS encoders, EAS decoders and Attention Signal generating and
       receiving equipment is installed and operational so that the
       monitoring and transmitting functions are available during the times
       the station is in operation. Broadcast stations must also determine
       the cause of any failure to receive required monthly and weekly EAS
       tests, and must indicate in the station's log why any required tests
       were not received and when defective equipment is removed and restored
       to service.

    8. Section 11.52(d) of the Rules requires broadcast stations to monitor
       at least two EAS sources. The monitoring assignments of each broadcast
       station are specified in the State EAS Plan and FCC Mapbook. The
       requirement that stations monitor at least two EAS sources ensures
       redundancy of the EAS system in the event one of the sources fails.

    9. Section 11.61(a)(1) and (2) of the Rules requires broadcast stations
       to (a) receive monthly EAS tests from designated local primary EAS
       sources and retransmit the monthly test within 60 minutes of its
       receipt and (b) conduct tests of the EAS header and EOM codes at least
       once a week at random days and times.  The requirement that stations
       monitor, receive and retransmit the required EAS tests ensures the
       operational integrity of the EAS system in the event of an actual
       disaster. Appropriate entries must be made in the broadcast station
       log as specified in Sections 73.1820 and 73.1840, indicating reasons
       why any tests were not received or transmitted.

   10. Monitoring by Honolulu agents, along with a review of the KNDI EAS
       logs, revealed that KNDI failed to retransmit the RMTs from April to
       June 2006. No entries were made in the KNDI EAS logs to identify the
       causes of those failures. An inspection of the KNDI EAS equipment
       revealed that the EAS receiver was able to receive an audio signal
       from only one of the two assigned monitoring sources. At the time of
       the inspection, KNDI personnel were unable to manually initiate a RWT.
       The station's engineer later confirmed to a Honolulu agent that the
       KNDI EAS equipment had a faulty relay switch which prevented the unit
       from transmitting any tests, and that the audio source for channel one
       of the EAS equipment was unplugged, which prevented the equipment from
       receiving a signal from one of its monitoring sources.

   11. Broadcast House's violation occurred on more than one day, therefore,
       the violation was repeated. Based on the evidence before us, we find
       that Broadcast House  apparently repeatedly violated Section 11.35(a)
       of the Rules by failing to ensure the operational readiness of the EAS
       equipment at KNDI.

   12. Pursuant to The Commission's Forfeiture Policy Statement and Amendment
       of Section 1.80 of the Rules to Incorporate the Forfeiture Guidelines,
       ("Forfeiture Policy Statement"), and Section 1.80 of the Rules, the
       base forfeiture amount for EAS equipment not operational is $8,000. In
       assessing the monetary forfeiture amount, we must also take into
       account the statutory factors set forth in Section 503(b)(2)(D) 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. Applying the Forfeiture Policy
       Statement, Section 1.80, and the statutory factors to the instant
       case, we conclude that Broadcast House is apparently liable for a
       $8,000 forfeiture.

   IV. ORDERING CLAUSES

   13. Accordingly, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended, and Sections 0.111, 0.311,
       0.314 and 1.80 of the Commission's Rules, Broadcast House of the
       Pacific Inc. is hereby NOTIFIED of this APPARENT LIABILITY FOR A
       FORFEITURE in the amount of eight  thousand dollars ($8,000) for
       violations of Section 11.35(a), of the Rules.

   14. 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, Broadcast House of the
       Pacific Inc. SHALL PAY the full amount of the proposed forfeiture or
       SHALL FILE a written statement seeking reduction or cancellation of
       the proposed forfeiture.

   15. Payment of the forfeiture must be made by check or similar instrument,
       payable to the order of the Federal Communications Commission.  The
       payment must include the NAL/Acct. No. and FRN No. referenced above.
       Payment by check or money order may be mailed to Federal
       Communications Commission, P.O. Box 358340, Pittsburgh, PA
       15251-8340.  Payment by overnight mail may be sent to Mellon
       Bank /LB 358340, 500 Ross Street, Room 1540670, Pittsburgh, PA
       15251.   Payment by wire transfer may be made to ABA Number 043000261,
       receiving bank Mellon Bank, and account number 911-6106.

   16. The response, if any, must be mailed to Federal Communications
       Commission, Enforcement Bureau, Western Region, Honolulu Office, P.O.
       Box 971030, Waipahu, Hawaii, 96797-1030 and must include the NAL/Acct.
       No. referenced in the caption.

   17. 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.

   18. Requests for payment of the full amount of this Notice of Apparent
       Liability for Forfeiture under an installment plan should be sent to:
       Associate Managing Director - Financial Operations, Room 1A625, 445
       12th Street, S.W., Washington, D.C. 20554.

   19. IT IS FURTHER ORDERED that a copy of this Notice of Apparent Liability
       for Forfeiture shall be sent by Certified Mail, Return Receipt
       Requested, and regular mail, to Broadcast House of the Pacific Inc.

   FEDERAL COMMUNICATIONS COMMISSION

   Ryan Hagihara

   Resident Agent

   Honolulu Office

   Western Region

   Enforcement Bureau

   47 C.F.R. S 11.35(a).

   47 U.S.C. S 503(b).

   Section 312(f)(1) of the Act, 47 U.S.C. S 312(f)(1), which applies to
   violations for which forfeitures are assessed under 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 or any rule or regulation of the Commission
   authorized by this Act...." See Southern California Broadcasting Co., 6
   FCC Rcd 4387 (1991).

   Section 312(f)(2) of the Act, 47 U.S.C. S 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."

   47 C.F.R. SS 11.11 and 11.41.

   47 C.F.R. SS 11.1 and 11.21.

   47 C.F.R. S 11.18. State EAS plans contain guidelines that must be
   followed by broadcast and cable personnel, emergency officials and
   National Weather Service personnel to activate the EAS for state and local
   emergency alerts. The state plans include the EAS header codes and
   messages to be transmitted by the primary state, local and relay EAS
   sources.

   47 C.F.R. S 11.35(a) and (b).

   The required monthly and weekly tests are required to conform to the
   procedures in the EAS Operational Handbook. See also, Amendment of Part 11
   of the Commission's Rules Regarding the Emergency Alert System, 17 FCC Rcd
   4055 (2002) (effective May 16, 2002, the required monthly EAS test must be
   retransmitted within 60 minutes of receipt).

   47 C.F.R. SS 73.1820 and 73.1840.

   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999); 47 C.F.R.
   S1.80.

   47 U.S.C. S 503(b)(2)(D).

   47 U.S.C. S 503(b), 47 C.F.R. SS 0.111, 0.311, 0.314, 1.80, 11.35(a).

   See 47 C.F.R. S 1.1914.

   (...continued from previous page)

                                                              (continued....)

   Federal Communications Commission

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   Federal Communications Commission