Click here for Microsoft Word Version
Click here for Consent Decree
********************************************************
NOTICE
********************************************************
This document was converted from
WordPerfect or Word to ASCII Text format.
Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.
All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.
Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.
If you need the complete document, download the
Word or WordPerfect version or Adobe Acrobat version, if available.
*****************************************************************
Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
In the Matter of ) File No. x18ed0002
)
KANZA, Inc. ) Ref. Facility ID
#42384
) KRLI(FM), Malta Bend, MO
ORDER
Adopted: March 23, 2000 Released: March
24, 2000
By the Chief, Enforcement Bureau:
1. In this Order, we adopt a Consent Decree
terminating an investigation into whether KANZA, Inc.
(``KANZA'') complied with Section 310(d) of the
Communications Act of 1934, as amended (the ``Act''), 47
U.S.C. § 310(d)1 and the Commission's time brokerage
policies.
2. On October 22, 1999, the Chief, Mass Media Bureau,
released a Notice of Apparent Liability (``NAL''), DA 99-
2259. The NAL determined that it appeared KANZA, not the
licensee of record, Miles Carter, controlled KRLI(FM), Malta
Bend, Missouri. The Bureau asserted that it appeared that:
1) KRLI had no employees; 2) KRLI was operated in
conjunction with KANZA stations KAOL(AM), KNZU(FM) and
WHB(AM) out of a common main studio location; 3) KANZA
employed Miles Carter; and 4) KANZA directly paid for
various KRLI expenses, including property insurance on
station equipment, utilities, telephone, news programming,
promotions/advertisements, and maintenance of station
equipment. After considering the circumstances in light of
the Commission's Forfeiture Policy Statement,2 which
provides a base forfeiture of $8,000 for an unauthorized
transfer of control, the Chief, Mass Media Bureau, proposed
a forfeiture of $8,000. In addition, the Chief, Mass Media
Bureau, directed that the parties submit within 30 days of
the date of the NAL a plan to come into compliance with the
Commission's rules and policies concerning control.
3. On November 22, 1999, KANZA filed a response to the
NAL, in which it contended that its involvement with KRLI
was no more extensive than what had been found legal in
other time brokerage cases. Nevertheless, KANZA also
submitted an ``Amended and Restated Time Brokerage
Agreement'' (``Amended Agreement'') dated November 16,
1999.3 The Amended Agreement revised a Time Brokerage
Agreement between KANZA and Miles Carter, which had been
entered into on October 17, 1996, shortly before KRLI
commenced broadcasting. Among other things, the Amended
Agreement provides that, except for expenses related to
programming created and provided by KANZA, Miles Carter
shall be responsible for paying all direct operating costs
of the station. In addition, the Amended Agreement provides
that Miles Carter shall employ at KRLI a general manager and
any other personnel required by the Commission's rules and
policies.
4. The staff and KANZA have negotiated the terms of a
Consent Decree that would terminate this proceeding. A copy
of the Consent Decree is attached hereto and incorporated by
reference.
5. We have reviewed the terms of the Consent Decree
and evaluated the facts before us. We believe that the
public interest would be served by approving the Consent
Decree and terminating this proceeding.
6. Accordingly, IT IS ORDERED, pursuant to Sections
4(i) and 4(j) of the Communications Act of 1934, as amended,
47 U.S.C §§ 154(i) and 154(j), and the authority delegated
in Sections 0.111 and 0.311of the Commission's rules, 47
C.F.R. §§ 0.111 and 0.311, that the attached Consent Decree
is hereby ADOPTED.4
7. IT IS FURTHER ORDERED that the above captioned
forfeiture proceeding IS TERMINATED.
FEDERAL COMMUNICATIONS COMMISSION
David H. Solomon
Chief, Enforcement Bureau
_________________________
1 See also 47 C.F.R. § 73.3540.
2 12 FCC Rcd 17087 (1997), recon. denied, FCC 99-407,
released December 28, 1999.
3 A companion Notice of Apparent Liability, DA 99-2258,
released October 22, 1999, was sent to Miles Carter. By
letter dated November 22, 1999, Miles Carter advised, inter
alia, that he had resigned from KANZA's employ and had paid
the forfeiture.
4 In this regard, the voluntary contribution referenced in
the Consent Decree shall be paid by a check or money order
drawn to the order of the Federal Communications Commission.
Reference should be made on the check or money order to
``Acct. No. x18ed0002.'' The remittance is to be paid to:
Forfeiture Collection Section, Finance Branch, Federal
Communications Commission, P.O. Box 73482, Chicago, Illinois
60673-7482.