' PUBLIC NOTICE Federal Communications Commission 445 12th Street S.W. News media information 202 I 418-0500 nv: 1-888-835-5322 Washington, D.C. 20554 Internet http://www.fcc.gov ftp.fcc.gov DA-13-1524

Before the Federal Communications Commission AM 1020, Inc., FM 103, Inc., Clifford H. Washington, D.C. 20554 Bowman, Receiver - Stations: WRIX, Facility ID 1216t WRIX-FM, Facility ID PUBLIC NOTICE 21830- Request for waiver and deferral of FY 2011 and FY 2012 regulatory fees. Dismissed Released: July 8, 2013 and Denied (May 6, 2013) [See 47 U.S.C. §159(c)(2); 47 C.F.R. §§ 1.1164(e), 1.1166(c), FEE DECISIONS OF THE MANAGING 1.1910)] DIRECTOR AVAILABLE TO THE PUBLIC Bruno Goodworth Network, Inc., - Stations The Managing Director is responsible for fee decisions WBGN-CD, WWLM-CA, WMVH-CA, in response to requests for waiver or deferral of fees as WKHU-CA, WJPW-CA, WVTX-CA, well as other pleadings associated with the fee WNNB-CD WJMB-CD, WEMW -CD, collection process. A public notice of these fee WPCP-CD, and WWKH-CA -Request for decisions is published in the FCC record. waiver of FY 2011 regulatory fees. Denied (April4, 2013) [See 47 C.F.R § l.1166(c))] The decisions are placed in General Docket 86-285 and are available for public inspection. A copy of the Charles W. Dowdy, Debtor-In-Possession decision is also placed in the appropriate docket, if one Stations: WJSH-FM, WTGG-FM, WAKH­ exists. FM, WAKK-AM, WAPF-FM, WFCG-FM, WAZA-FM, WBKN-FM, WMJU-FM, and The following Managing Director fee decisions are WKJN-FM- Request for waiver and released for public information: deferment of FY 20 12 regulatory fees. Dismissed and Denied (March 20, 2013) [See 47 U.S.C. §159(c)(2); 47 C.F.R. §§ l.1164(e), AKMA Broadcasting Network, Inc., ASA l.1166(c), 1.1910)] Broadcasting, Inc., and AMKA Broadcast Network, Inc.- Request for waiver of the penalties Communications Xchange, LLC - Request for late payment of Fiscal Year (FY) 2012 regulatory for deferment of FY 2011 regulatory fee. fees. Denied (May 6, 2013) [See 47 U.S.C. § Dismissed and Denied (January 9, 2013) [See 159(c)(l); 47 C.F.R. §§ 1.1164(c))] 47 C.F.R. § 1.1166)] \ Federal Communications Commission DA-13-1524

Cornell Blakely -Station: WKMG 1520AM Lunex Telecom, Inc. - Request for waiver of Request for waiver and deferral of the license renewal the penalties for late payment of Fiscal Year of fee and the required FY 20 10 and FY 20 11 regulatory FY 2010, FY 2011, and FY 2012 regulatory fees Dismissed (April 8, 2013) [See 47 C.P.R.§§ fees.Denied (March 27, 2013) [See; 47 U.S.C. l.l118(b), 1.1119, l.l164(e), l.1166(c)) § 159(c)(l ); 47 C.P.R.§ 1.1164)]

Discussion Radio, Inc.- Stations: WDIS-AM Mattoon Broadcasting Company - Stations: Request for waiver and deferment of FY 2011 and FY WLBH, and WLBH-FM- Request for 2012 regulatory fees. Dismissed and Denied (April 8, waiver of FY 2012 regulatory fees. Dismissed 2013) [See 47 U.S.C. § 159(c)(l), 31. § U.S.C. § and Denied (February 1, 2013) [See 47 U.S.C. 3717,47C.F.R. §§ 1.1164, 1.1166)] § 159(c)(l), 31 U.S.C. § 3717,47 C.P.R.§ 1.1166)] FiberTower Corp., Debtor-in-Possession (FiberTower DIP) - Request for waiver for a waiver Meridian Communications of Idaho, Inc. - or deferral of application fees. Granted (March 5, Station: 950306KF - Request for waiver and 2013) [See 47 C.P.R.§ l.lll9(a) & (c))] refund of FY 2011 regulatory fee. Granted (January 29, 2013) [See 47 C.P.R. §§ JF Broadcasting, LLC ·Stations: KWSD, KAUN­ 1.1160(a)(3), 1.1166, 73.3598(b)(2))] LP, and KCWS-LP - Request for deferment of FY 2012 regulatory fee. Granted (March 27, 2013) [See North Shore Broadcasting Co., Inc. Debtor­ 47 C.P.R.§§ 1.1164, l.l166(c))] In-Possession - Stations: WHMD-FM, WFPR-AM, and WYLK-FM - Request for KGY, Inc.- Stations: KGY (AM) and KGY (FM), waiver and deferral of the FY 2012 regulatory and Auxiliaries: KOL728, KPJ440, KPK463, fees. Dismissed and Denied (March 20, 20 13) WME 986- Request for waiver of FY 2012 [See 47 U.S.C. § 159(c)(2); 47 C.P.R.§§ regulatory fee. Dismissed and Denied (March 27, l.1164(e), l.1166(c), 1.1910)] 2013) [See 47 CFR § l.l166(c))] Oak Grove Holdings Corp - Request for Krush Communications, LLC- Request for waiver waiver of the statutory penalty, interest and of the penalties for late payment of FY 2010 and FY penalty charges for FY 2010, 2011 and 2012 2012 regulatory fees. Denied (May 6, 2013) [See 47 regulatory fees. Dismissed and Denied U.S.C. § 159(c)(l); 47 C.P.R.§§ 1.1164(c), 1.1914)] (January 15, 2013) [47 U.S.C. § 159(c)(1), 31 U.S.C. § 3717,47 C.P.R.§ 1.1166)] LD Telecommunications, Inc.- Request for waiver of the penalties and charges for late payment of FY Spiderphone.com, Inc.- Request for waiver 2011 and FY 2012 regulatory fees. Denied (May 6, of the penalties for late payment of FY 2010 2013) [See 47 U.S.C. § 159(c)(l); 47 C.P.R.§§ FY 2011 and 2012 regulatory fees. Dismissed 1.1164(c), 1.1914)] and Denied (March 20, 2013) [See 47 U.S.C. § 159(c)(l), 31 U.S.C. § 3717,47 C.P.R.§§ LS Media, Inc. Stations: KWLS - Request for 1.1164, 1.1166)]\ waiver of the penalties and charges for late payment of FY 2011 regulatory fee. Denied (April 4, 2013) Southern TV Corporation - Stations: [See 47 V.S.C. § 159(c)(l), 31 U.S.C. § 3717, 47 WGSA-DT, W41CR, WGSA-CA, WGCW­ C.P.R. § 1.1166)] LP, W25CQ, W32BJ, and WMU487- Request for deferral and waiver of FY 20 12 regulatory fees. Denied (January 29, 2013) [See 47 C.P.R.§ 1.1166(c))] Federal Communications Commission DA-13-1524

Trout Creek-Heron-Noxon TV District - Stations: KOSOZ-D, KlOQH-D, K12QT-D- Request for refund of FY 20 II regulatory fees. Denied (February I3, 20I3) [See 47 U.S.C. § I59(h)(l), 47 C.F.R. § l.II62(b) & (c))]

The Roberts Companies: Roberts Broadcasting Company, Roberts Radio Broadcasting, LLC, Roberts Broadcasting Company of Jackson, MS, LLC, Roberts Broadcasting Company of Evansville, IN, LLC,- Roberts Broadcasting Company of Columbia, SC, LLC - Stations: WRBU, WZRB, E040380, DDWAZE-TV, WRBJ, WAZE-LP, WIKY-LP, WJPS-LP, WLP205 WLP206, E002006368 -Request for waiver or reduction and refund of FY 20 II regulatory fees. Denied (November 8, 20I2) [See 47 C.F.R. §§ l.II60(a)(3), l.II66)]

Three Amigo's Broadcasting, Inc.,- Station: WGBJ - Request for waiver of FY 20 II regulatory fee. Dismissed and Denied (January 9, 2013) [See 47 U.S.C. §159(c)(2); 47 C.F.R. §§ 1.1I64(e), l.ll66(c), 1.1910)] ! I I , j \_(J 1 FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. 20554 APR 4 20t3

OFFICE OF MANAGING DIRECTOR

Debra Goodworth Bruno Goodworth Network, Inc. 975 Greentree Road Pittsburgh, PA 15220

Re: Waiver Request (Financial Hardship; 47 C.F.R. § 1.1166(c)) Licensee/Applicant: Bruno Goodworth Network, Inc. Stations: WBGN-CD, WWLM-CA, WMVH-CA, .WKHU-CA, WJPW-CA, WVTX-CA, WNNB-CD, WJMB-CD, WEMW-CD, WPCP-CD, and WWKH-CA Fee: Fiscal Year (FY) 2011 Regulatory Fees Date Request Filed: Sep. 13, 2011 (Rec'd) Sep. 21, 2011 Fee Control No.: RROG 11-00013895 Total Regulatory Fees: $4,345.00 Total25% Late Payment Penalties: $1,086.25 Cost of collection: $ · 50.00 Interest (1%) $ 82.55 Penalties (6%) $ 495.33 Total Due: $5,976.58

Dear Ms. Goodworth:

This responds to Licensee's Request1 for a waiver of the required Fiscal Year (FY) 2011 regulatory fees, which were due September 16, 2011.2 Our records reveal that Licensee did not pay the $4,345.00 FY 2011 regulatory fees for Stations WBGN-CD, WWLM-CA, WMVH-CA, WKHU-CA, WJPW-CA, WVTX-CA, WNNB-CE, WJMB-CD, WEMW-CD, WPCP-CD, and WWKH-CA;3 however,Licensee submitted a Petition4 to defer payment until after a ruling on

1 In the matter of: Waiver of Regulatory Fee for FY 2011 of Bruno Goodworth Network, Inc Licensee ofWBGN­ CD, et al. (Sep. 13, 201l)(rec'd Sep. 21, 2011) (Request). 2 See FY 2011 Regulatory Fees Due No Later Than September 14,2011, Eastern Time, Public Notice, DA 11-1420 (Aug. 17, 2011); FY 2011 Regulatory Fee Deadline Is Extended To 11:59 PM ET, September 16, 2011, Public Notice, DA 11-1559 (Sep. 15, 2011). 3 Our records show that Station WWKH-CA had a broadcast facility license on or before October I, 2010; therefore, a fee is due. See In the Matter of Assessment and Collection of Regulatory Fees for Fiscal YC(ar 2011, Report and . Order, 26 FCC Red 10812, 10824,135 (2011). We note that licensee's request for Special Temporary Authority (STA) for silent status to convert to digital does not establish an exemption. See FCC File STA BLSTA- 20111 107ADM ("LICENSEE IS ... CONVERTING ITS LPTV NETWORK, INCLUDING WWKH-CA, TO the Request. Unfortunately, the Commission received Licensee's Petition and Request on September 21, 2011. Because a document is filed with the Commission upon its receipt at the location designated by the Commission,5 Licensee's submission were filed five days late. For the reasons discussed, below, we dismiss the Petition, deny the Request, and re~uire immediate payment of the regulatory fees plus the accrued 25% late payment penalties and charges required by 31 U.S.C. § 3717.

Licensee petitioned for deferral of payment of the fees because it has "neither the funds on hand nor access to credit with which to pay its regulatory fees, even if those fees are ultimately refunded."7 Licensee asserts the Petition is in the public interest because it is a "very _ small, S Corporation" with a "negative income for the entire year 201 0."8 It asserts it sustained "broadcast operations only because of continued loans to the corporation by the owners," and that it applied its revenue to "short term operating expenses ... leaving it no funds with which to pay its regulatory fees."9 Moreover, Licensee's "poor financial condition has caused it to fall into a 'slow pay' credit status."1°Finally, Licensee asserts that if it "lets itself be forced off the air it would immediately lose the small off-air viewer audience ... as well as its most desirable programming formats, which are coveted by other television licensees in its market."II In support of its Petition, Licensee provided only a copy of its Internal Revenue Service (IRS) Form 1120S, U.S. Income Tax Return for an S Corporation for Tax Year 2010 (Form 1020S), prepared on August 25, 2011. Licensee's Form 10208 reports a business loss resulting from deductions taken for depreciation, certain line items under other deductions ("professional fees" and "telephone & internet") and other costs ("professional services").

In its separate Request to waive the payment of the fees, Licensee asserts it operates "a network of Low Power Television stations ... that cover the entire Pittsburgh A.D.I. and the adjacent Steubenville, OH-Wheeling, WV television market."12 Licensee states that its stations "are not carried on either the main cable system: or received by satellite ... but [its] programming feed is carried on Pittsburgh's growing [Verizon] FIOS system."13 Further, Licensee asserts that in 2010 it had a negative cash flow because it serves "only the unwired televisions in its

DIGITAL. ... LICENSEE WISHES TO TERMINATE THE ANALOG OPERATION ... INCLUDING WWKH­ CA AND BEGIN CONSTRUCTING DIGITAL STATIONS IN THEIR PLACE. LICENSEE EXPECTS TO COMPLETE THAT PROCESS OVER THE NEXT 12 MONTHS.") and FCC File STA BLSTA-20101014AAG ("THIS FACILITY HAS NOT YET COMPLETED CONSTRUCTION OF ITS DIGITAL FACILITY, WHICH IS ONGOING. WE EXPECT TO COMPLETE THAT PROCESS IN THE NEXT SIX MONTHS .... WE WOULD LIKE TO RETAIN THE ANALOG AUTHORIZATION AS AN EMERGENCY BACKUP ... "). 4 In the Matter of: Petition for Deferral of Payment of Regulatory Fees Until After a Ruling on Petitioner's Regulatory Fee Waiver Request for 2011, WBGN-CD, eta/. (Sep. 13, 2011) (rec'd Sep. 21, 2011)(Petition). 5 47 C.P.R. § 1.7 ("pleadings and other documents are considered to be filed with the Commission upon their receipt at the location designated by the Commission."). 6 47 U.S.C. § 159(c)(l). 7 Petition at 1. g !d. 9 Id at2. 10 ld. 11 Id. 12 Request at 2. 13 !d. at 3.

2 market."14 Licensee claims it could not both pay the FY 2011 regulatory fees and meet its weekly payroll, 15 and it "would be forced to lay off [its] 5 full and part-time employees."16 Indeed, Licensee asserts that the owners who manage station WBGN are uncompensated for "many of their expenses ... and did not receive any dividends or profit distributions. "17 The documentary support Licensee provided with its Request is the same Form 10208 used with the Petition.

In establishing a regulatory fee program, the Commission recognized that in certain instances, payment of a regulatory fee may impose an undue financial hardship upon a licensee. Such fees may be waived, reduced or deferred, but onll upon a showing of good cause and a fmding that the public interest will be served thereby. 1 The Commission has narrowly interpreted its waiver authority to require a showing of compelling and extraordinary circumstances that outweigh the public interest in recouping the Commission's regulatory costs. 19 Fee relief in the form of deferral of payment or a waiver may be granted based on asserted financial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public.20

Under 4 7 C.F .R. § 1.1166(c), "petitions for waiver of a regulatory fee must be accompanied by the required fee and FCC Form 159 .... Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by documentation ofthe financial hardship." In that regard, a "mere allegation of financial hardship ... does not automatically entitle [a petitioner] to a deferral of its obligation to pay regulatory fees; only a properly supported claim of financia). hardship will entitle the regulatee to a deferral. Accordingly, if a request for deferral is not supported by documentation of financial hardship, it will be denied, and an associated petition for waiver or reduction will be dismissed. A regulatee cannot delay payment on the theory that its deferral request triggered an automatic six-month extension of its obligation to pay."21 "[I]t [is] incumbent upon each regulatee to fully document its financial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public. "22

In reviewing a showing of financial hardship, the Commission relies on a range of financial documents including a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation of how calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or similar

14 !d. IS /d. 16 /d. 17 /d. 18 47 U.S. C. § 159(d); 47 C.F.R. § 1.1166 ("The fee ... may be waived ... in specific instances, on a case-by-case basis, where good cause is shown and where waiver ... of the fee would promote the public interest."). See also Implementation of Section 9 of the Communications Act, Assessment and Collection ofRegulatory Fees for Fiscal Year 1994, Report and Order, 9 FCC Red 5333, 5344 (1994), recon. denied, 10 FCC Red 12759 (1995). 19 9 FCC Red at 5344 ~ 29. 20 10 FCC Red at 12761-62 ~ 13. 21 In The Matter of Assessment and Collection of Regulatory Fees For Fiscal Year 2011, Report and Order, 26 FCC Red 10812, 10819, ~ 17 (2011). 22 /d. .

3 information. It is on this information that the Commission considers on a case-by-case basis whether the station lacks sufficient funds to pay the regulatory fee and maintain service to the public?3 Thus, for example, even if a station loses money, any funds paid to principals and deductions for depreciation or amortization are considered funds available to pay the fees.

· Licensee failed to establish grounds for deferral or a waiver of the fees, and we do not find compelling and extraordinary circumstances that outweigh the public interest in recouping the Commission's regulatory costs. First, Licensee did not sufficiently document either the Petition or the Request. Licensee's Form 10208 does not provide the range of financial information required to fully document its financial position and show how payment of the FY 2011 regulatory fees will adversely affect Licensee's ability to serve the public. Instead of only the Form 10208, Licensee should have provided additional relevant information mentioned above for 2010, 2011, and later periods.

Second, Licensee's documentation does not support its assertions in either the Petition or the Request, and those assertions raise several unanswered questions. For example, Licensee asserts its stations are in a large competitive broadcast market, but their success is hindered because its over-the-air broadcast service reaches the smaller and allegedly economically poorer audience that does not have cable or satellite. As a result, it cannot generate revenue and it has a negative cash flow. Indeed, Licensee asserts deferral is appropriate because it "has neither the funds on hand nor access to credit with which to pay its regulatory fees."24 Yet, License provided no supporting evidence that claim in either its Petition or its Form 11208. Similarly, Licensee did not sustain its assertion that "[o ]n a weekly basis the revenue [Licensee] receives is consumed completely meeting the network's payroll, leaving near nothing for [Licensee's] other short term operating costs. "25 Despite the absence of supporting evidence, Licensee concludes from such broad statements, that paying the re§ulatory fees on all the stations will force it to 'terminate its "5 full and part-time employees," 6 and cease service. The Form 10208 does not support that dire prediction; rather, and to the contrary, the Form 11208 demonstrates that the salaries and wages are about 41% of Licensee's income, and together with related operating expenses, i.e., utilities, tower rent and payroll fees, the total expenditure is 53% of income, far short of the amount to consume revenue. Plainly, more than the Form 11208 is necessary to support Licensee's claims that it (a) lacks funds to pay the fees when due, (b) consumes completely "on a weekly basis" revenue with its payroll expenses,27 or (c) is compelled to terminate its employees and cease operations, if it is required to pay the fees/8 which are 2.6% of the reported income. Hence, from the evidence Licensee supplied, it should not be forced to terminate its staff in order to pay its fees; rather, the more obvious conclusion is for Licensee to reduce reported deductions in other areas, and from that savings, pay the regulatory fees. Specifically, for example, Licensee reported a business income loss because, in part, it deducted

23 !d. 24 Petition at 1. 25 Request at 2. 26 Request at 3. 27 See Request at 3 (''weekly basis revenue ... consumed completely meeting ... payroll") and compare with Petition at 2 ("(d]iverting revenue it does receive from paying its monthly payroll, tower rent and utility bills to the payment of regulatory fees would work an extreme hardship"). 28 Request at 3.

4 for depreciation and compensation to officers, and claimed other deductions and other costs. 29 The details of those deductions warrant review for possible additional sources for payment of the regulatory fees. Furthermore, Licensee failed to explain the relevance of the assertion that it "making sales [is] limited or nearly impossible"30 because its service is not carried on cable or satellite providers, yet it is part of"Pittsburgh's growing [Verizon] FIOS system."31 In addition, Licensee did not provide relevant information about calendar year 2011, e.g., Licensee's financial situation during calendar year 2011 and whether Licensee's carriage on the FIOS system has brought or will bring change.

Finally, Licensee did not establish that payment of the fee would adversely affect the licensee's ability to serve the public. Information on Licensee's Form 1020S indicates that deductions taken for depreciation and compensation of officers are available to pay the regulatory fees. Consequently, Licensee did not establish evidence to support its prediction that the payment of the fees would result in an inability to fay its "weekly payroll. "32 Accordingly, under 47 C.P.R. § 1.1166(c), we dismiss the Petition,3 and because the fee was not paid in a timely manner, under 47 C.F.R. §§ 1.1164(c) and 1.1940, we assess a 25% penalty and the interest, penalties, and cost of collection.

Payment of$5,976.58, Licensee's FY 2011 regulatory fees, 25% penalties, and other charges is now due. That amount must be received, together with a Form 159 (copy enclosed), within 30 days of the date of this letter. If Licensee's full payment of that amount is not received by that date, we will assess additional interest and penalties from the date of this letter. and under the law,34 aPJ?ly debt collection procedures.35

Because Licensee is delinquent in a debt owed the United States, this provides notification that under 31 U.S.C. § 3711(g), without further notice, and usually within 180 days or less of delinquency, we will transfer the delinquent debt to Treasury, which will initiate collection action through private collection activities and assess additional charges. In addition, we may refer the debt to the Department of Justice, which may result in litigation and additional costs.

Moreover, under 31 U.S.C. § 3716, 31 C.P.R.§ 285.5, and 47 C.F.R. § 1.1912, some or all of the debt may be collected by non-centralized or centralized administrative 9ffset. Also, under 31 U.S.C. § 3711(e), this debt and Licensee's payment history will be reported to credit reporting information bureaus. Because we have furnished notice here, Licensee may not receive another notification of this process. Finally, Licensee will be red lighted36 until it pays the debt or

29 See Form 1120S, Statement, Other Deductions and Schedule A, Other Costs. 30 Request at 3. 31 Id. at3. 32 Jd. 33 26 FCC Red at 10819, ~ 17. 34 See47C.F.R. § 1.1901, etseq. 35 See 31 C.F.R. § 3717. 36 See 47 C.F.R. § 1.1910(b)(2) ("Action will be withheld on applications, including on a petition for reconsideration or any application for review of a fee determination, or request for authorization by any entity found to be delinquent in its debt to the Commission ...."); 47 C.F.R. § 1.1164(e)("Any pending or subsequently filed application submitted by a party will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee or an installment payment.").

5 makes other satisfactory arrangements.37 If you have any questions concerning this letter, please contact the Revenue and Receivables Operations Group at (202) 418-1995.

Sincerely, ~·rG

37 See 47 C.F.R. § 1.1914 ("If a debtor is fmancially unable to pay a debt in one lump sum, the Commission, in its sole discretion, may accept payment in regular installments.").

6 Recei~ed &Inspected SEP 21 Z011 Before the FCC Mall Room Federal Communications Commission Washington, DC 20554

In the Matter of: ) WBGN-CD 68405 Petition for Deferral of Payment of Regulatory ) WWLM-CA 267 Fees Until After a Ruling on Petitioner's ) WMVH-CA 68394 Regulatory Fee Waiver Request for 2011 ) WKHU-CA 68401 ) WJPW-CA 68407 ) WVTX-CA 68408 ) WNNB-CD 7622 ) WJMB-CD 68393 ) WEMW-CD 68396 ) WPCP-CD 68400

To: Steven VanRoekel, Managing Director

Petition for Deferral of2011 Regulatory Fees Until After a Ruling On Petitioner's Regulatory Fee Waiver Request for 2011

Pursuant to Section 1.1166(c) ofthe Rules and Regulations ofthe Federal

Communications Commission, Bruno Goodworth Network, Inc. ("Petitioner"), pro se, hereby requests waiver of the requirement that any petition for waiver of the annual regulatory fee be accompanied by the required fee. This waiver is requested because the Petitioner has neither the funds on hand nor access to credit with which to pay its regulatory fees, even if those fees are ultimately refunded. Instead, Petitioner respectfully requests that the payment of its regulatory fees for 2011 be deferred until after the Managing Director has considered and ruled on the

Request for Waiver ofRegulatory Fees for 2011 being filed simultaneously with the instant

Petition. This deferral is in the public interest for the reasons stated below.

Petitioner is a very small, S Corporation. As the U.S. Income Tax Return for an S

Corporation 2010 appended hereto documents, Petitioner had negative income for the entire year

2010. Petitioner was able to sustain its broadcast operations only because of continued loans to

1 the corporation by the owners. This continuing "capitalization" of Bruno Goodworth Network,

Inc., in and of itself has been a hardship for the owners, who have already invested a significant

amount of their personal savings in this venture with little prospect of return on their investment

or compensation for their exhaustive expenditure of time and energy trying to make this

broadcast venture profitable in spite of the hostile regulatory environment Low Power Television

continues to face.

Bruno Goodworth Network, Inc. had to immediately apply the revenue it did receive to its short term operating expenses in order to keep its broadcast operations going, leaving it with no funds with which to pay its regulatory fees. Diverting the revenue it does receive from paying its monthly payroll, tower rent and utility bills to the payment of regulatory fees would work an extreme hardship on Petitioner. It's utility companies and its tower lessors immediately threaten Petitioner with termination of service whenever a monthly payment is late, because

Petitioner's poor financial condition has caused it to fall into a "slow pay" credit status. As a result, its creditors are extremely intolerant of any missed or late payments and would terminate their services, forcing Petitioner to shut down. If the Petitioner, thus, lets itselfbe forced off the air it would immediately lose the small off-air viewer audience it has so painfully captured, as well as likely losing its most desirable programming formats, which are coveted by other television licensees in its market. The viewers losing Petitioner's uniquely acquired, independent programming are largely people that are dependent on off-air television service exclusively, because they cannot afford cable television. That lost service would not be , replaced, because the proposed contraction of the television band forecloses the possibility of a new LPTV broadcaster replacing Petitioner.

Petitioner respectfully requests that the payment of its regulatory fees be deferred.

2 Petitioner believes that its fee waiver request, also filed today, will likely be granted, making the

hardships caused by requiring payment to accompany said waiver request unnecessary and even

punitive. Furthermore, in the unlikely event that the fee waiver is denied, Petitioner will need a

significant period of time to make the programming format changes, achieve the reductions in

operating costs by laying off its employees, or even selling one or more of its facilities, in order

to raise the funds necessary to pay the fees. In that case, the fee deferral will allow the

Petitioner to continue providing its broadcast programming services (including children's

programming, locally produced, locally originated programming, and Emergency Alert Services)

to the off-air television dependent citizens now served by Petitioner's stations.

WHEREFORE, for the foregoing reasons,. Bruno Goodworth Network, Inc. respectfully

requests that the Commission defer payments of its 2011 Regulatory Fees until the Managing

Director has ruled on its 2011 Regulatory Fee Waiver Request or until such time as it achieves a

positive cash flow and can make that payment without having to suspend the transmission of its television programming.

Respectfully submitted,

Bruno Goodworth Network, Inc.

September 13,2011

Bruno Goodworth Network, Inc. 975 Greentree Road Pittsburgh, P A 15220

3 FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. 20554 MAY 6 2013

OFFICE OF MANAGING DIRECTOR

Darlene Agelatos Office Manager AKMA Broadcasting Network, Inc. 3338 Windchime Dr. W Clearwater, FL 33761

Re: Waiver Request (Late Payment Penalty; 47 U.S.C. § 159(c)(1); 47 C.F.R. §§ 1.1164(c)) Licensee/Applicants: AKMA Broadcasting Network, Inc., ASA Broadcasting, Inc., and AMKA Broadcast Network, Inc. · Station: N/A Fee: Fiscal Year (FY) 2012 Regulatory Fee Late Fee Date Request Filed: Oct. 4, 2012 Date Regulatory Fees Paid: Sep. 17, 2012 Fee Control No.: RROG-12-00014838

Dear Ms. Agelatos:

This responds to Licensee's Request1 for waiver of the penalties for late payment of Fiscal Year (FY) 2012 regulatory fees. For the reasons stated herein, we must deny the Request.

Under 47 U.S.C. § 159 and the Commission's implementing rules, we are required to · "assess and collect regulatory fees" to recover the costs of the Commission's regulatory activities,2 and when the required payment is received late or it is incomplete, to assess a penalty equal to "25 percent of the amount of the fee which was not paid in a timely manner."3 Specifically, "[a]ny late payment or insufficient payment of a regulatory fee, not excused by bank error, shall subject the regulatee to a 25 percent penalty of the amount of the fee ... which was not paid in a timely manner."4

1 Email from Sotirios Agelatos, [[email protected]] to ARlNQUIRIES,' ([email protected]), (Oct. 4, 2012)(Email), Letter from Darlene Agelatos, Office Manager,[email protected] to Stephen M. French, VMD Systems Integrators, OMD-Financial Operations [by facsimile transmission to 202-418-7869](0ct. 22, 20 12)(Request). 2 47 U.S.C. §159(a)(l); 47 C.F.R. § 1.1151. 3 47 U.S.C. §159(c)(l); 47 C.F.R § 1.1164. 4 47 C.F.R § l.l164. Each year, the Commission establishes the final day on which payment may be made before it is late, i.e., a deadline, after which the statutory late payment penalty required by 4 7 U.S.C. § 159(c)(l) and 47 C.F.R. § 1.1164 will be imposed, and interest, penalties, and chares of collection will accrue under 31 U.S.C. § 3717 and 47 C.F.R. § 1.1940. For FY 2012, the deadline for paying regulatory fees was September 13, 2012.5 Licensee's payment was not received and credited until September 17, 2012, thus Licensee failed to meet its obligations. Licensee states that "[it] thought filing date was September 30th ... it seems unfair that we had to pay 25% for being only four days late ... there should be a graduated percentage according to how late the filing was. "6 These assertions are not legal grounds or clear mitigating circumstances to waive collection of the penalty. The Commission has repeatedly held that "[l]icensees are expected to know and comply with the Commission's rules and regulations and will not be excused for violations thereof, absent clear mitigating circumstances."' The absence of a reminder notice is not an excuse. Indeed, beginning in 2009, the Commission provided ample notice that it would not be·sending paper pre-bills to regulatees.

On May 14, 2009, the Commission proposed to mandate electronic filing of regulatory fee information through the agency's Fee Filer system.8 The Commission explained that, "[c]onsistent with [its] proposal to require mandatory use of Fee Filer ... pre-bill information would be loaded into Fee Filer for viewing, but would not be mailed directly to the licensee via surface mail."9 On July 31, 2009, the Commission released its order adopting these proposals, 10 and notifying regulatees that "because all pre-bills will be loaded into Fee Filer, once Fee Filer becomes operational, this will be the signal by which licensees can view their pre-bill information online."11 Thereafter, the Commission issued a public notice informing regulatees that use of Fee Filer was mandatory in FY 2009 and that "regulatory fee bills will no longer be mailed to the regulatee,'but can be viewed by logging on the Fee Filer."12 Finally, on September 2, 2009, the Commission released a third public notice that "HARDCOPY BILLS WILL NO 13 LONGER BE MAILED BY THE FCC." .

5 See FY 2012 Regulatory Fees due No Later Than September 13, 2012, Public Notice, DA 12-1295 (Aug. 13, """ 2012). . 6 Request. 7 See Sitka Broadcasting Co., Inc., 70 FCC 2d 2375, 2378 (1979), citing Lowndes County Broadcasting Co., 23 FCC 2d 91 (1970) and Emporium Broadcasting Co., 23 FCC 2d 868 (1970); see alsoNextGen Telephone (OMD, Apr. 22, 2010); lste~ Inc. (OMD, Apr. 22, 2010). 8 Assessment and Collection ofRegulatory Fees for Fiscal Year 2009, Notice ofProposed Rulemaking and Order, 24 FCC Red 5966, 5972, ~ 16 (2009). 9 I d. at 5973, ~ 20. . 10 Assessment and Collection ofRegulatory Fees for Fiscal Year 2009, Report and Order, 24 FCC Red 10301, 10307-09, ~~ 18-27 (2009) (FY 2009 Regulatory Fees NPRM). 11 I d. at10309, ~ 26. 12 Fee Filer Mandatory for FY 2009 Regulatory Fees, Public Notice, 24 FCC Red 10893 (Aug. 21, 2009). 13 Payment Methods and Procedures for Fiscal Year 2009 Regulatory Fees, Public Notice, 24 FCC Red 11513, 11514 (2009) (emphasis in original).

2 Similarly, the Commission's final order on the FY 2010 regulatory fees reaffirmed that regulatees should "checkO the Commission's website periodically beginning in July" in order to "ascertain the fee due date, and receive instructions on how to access Fee Filer, view their bill, and make a fee payment."14 This notification was part of the Commission's increased effort to notify licensees that hardcopy bills will no longer bemailed. 15

Every licensee is obliged to make the fee payment by the deadline. Although the Commission has waived late fees on a showing of good cause, neither the statute nor the Commission's regulations contemplates a waiver of or reduction in the late payment penalty based on the amount of time after the deadline within which the regulatee satisfies its payment obligations; indeed, the penalty for late payment applies even to situations where the deadline is missed by a short period oftime.16 The penalty required by 47 U.S.C. § 159(c)(l) and charges required by 31 U.S.C. § 3717 are not limited to situations where the failure to pay was knowing or willful. If the penalty it is to be waived, it is "only in the most extraordinary circumstances,"17 which Licensee did not establish. Thus, we must deny the Request.

If Licensee has any questions concerning this matter, please call the Revenue & Receivables Operations Group at (202) 418-1995. ·

Sincerely,

.. ~MarkSiePhCDS Chief Financial Officer

14 Assessment and Collection ofR~gulatory Fees for Fiscal Year 2010, Report and Order, 25 FCC Red 9278,9291, , 37 (2010). 15 See Assessment and Collection ofRegulatory Fees for Fiscal Year 2010, Notice ofProposed Rulemaking, 25 FCC Red 3918, 3923,, 12 (2010). 16 SeeXO Communications, LLC (OMD, Nov. 10, 2010). 17 McLeodUSA Telecommunications Services, Inc., Memorandum Opinion and Order, 19 FCC Red 6587, 6589 (2004) (denying the request for waiver of25 percent penalty).

3 Page 1 '• . Stephen French

.from: sotirios agelatos [[email protected]] Sent: Thursday, October 04, 2012 2:50AM To: ARINQUIRIES Subject: regulatory fees

Dear Sir or Madam:

This letter is in reference to the 25% penalty added on to the regulatory fees. I am writing in regards to three licens that I had filed the regulatory fees. Since the FCC does not send notices, unfortunately; I thought the filing date was September 30th and when I checked the FCC website realized we were late ...... filed on September 17 .... .it seems un that we had to pay 25% for being only four days late ..... there should be a graduated percentage according to how la1 the filing was...... according to the present system, whether one is late one day or 365 days the penalty is the same. Also, it would be beneficial if the FCC would notifY licensees of pending renewals and fees due. Since the FCC is infonned oflicensee's emails, this warning/reminder would be helpful. If you check our records, we have never been late in filing these fees ... therefore, we would appreciate your consideration in reducing these fees and issuing a credit.

The following are the three licensees: 1. AKMA Broadcast Network --facility #685----late fees ---$475 2. ASA Broadcasting, Inc.-- facility# 2918 ---late fees ---$475 3. AMKA Broadcast Network, Inc. ---facility #2130 ----late fees $96.25

Yours truly,

Darlene Agelatos Office Manager [email protected]

10/22/2012 ... ·FROM , ! AGELAT@S. FAX NO. 7277719569 Oct. 22 2012 05:20PM P1

October 22, 2012

Stephen M. French VMD Systems Integrators OMD -·Financial Operations Fax: 202-418-7869

RE: Regulatory Fees

Mr. French:

This letter is in regards to email we had sent to the FCC on October 4, 2012 and that you bad responded to on October 4. 201 ?.. On the oneina1 email we had requested that~ consideration be made in regards to imposing penalty and fines for late filing of regulatory fees. In that correspondence we had informed you that we were only four days late and it seemed unfair that the same penalty is imposed on one that is late one day or 365 days. We had suggested that the penalty should not be the same and that it should be graduated according to the lateness of the· filing. You had requested in your October 4, 2012 :further infonnation regarding our stations and proof of fees paid.

Enclosed with this letter are copies of our 159 remittance which indicates FRN for each station and credit card statement indicating amounts paid for each station. These are the licensees in question:

1. AKMA Broadcasting Network, Inc.-FRN # 0000017533 --filing fee: $1900 + late fee $475 =total paid= $2375 2. ASA Broadcasting, Inc. -FRN # 0000017558 --~filing fee: $1900 +late fee $475 '""total paid- $23 75 3. AMKA Broadcast Network, Inc. ·-FRN # 0000017574- filing fee $385 +late fee $96.25 = $481.25

Copy of credit card statement paid by Sotirios Agelatos enclosed. We would appreciate your consideration in reducing these fees and issuing a credit. Thank you for your attention to this matter.

Youm~

Darlene Agelatos Office Manager :[email protected] (email) 727-458-5329 (cell) 727- 771 - 9569 (phone) Enc. 5 FEDERAL COMMUNICATIONS COMMISSION Washington, 0. C. 20554 MAY 6 2013

OFRCEOF MANAGING DIRECTC(R

David Tillotson Attorney at Law 4606 Charleston Terrace, NW Washington, DC 20007-1911

Re: Waiver and Deferral of Regulatory Fee (Receivership; 47 U.S.C. §159(c)(2); 47 C.P.R. §§ 1.1164(e), 1.1166(c), 1.1910) Licensees/Applicant: AM 1020, Inc., FM 103, Inc., Clifford· H. Bowman, Receiver FRN:0006441588 Stations: WRIX, Facility ID 1216, WRIX-FM, Facility ID 21830 Fiscal Year (FY) 2010, FY 2011, and FY 2012 Regulatory Fees Fee Control No.: RROG-11-00014472 FY 2010 Fees AM 1020, Inc. $2,002.94 FM 103, Inc: $1,966.78 FY 2011 Fees AM 1020, Inc. $1,949.74 FM 103, Inc. $1,818.72 FY 2012 Fees AM 1020, Inc. $1;906.25 FM 103, Inc. $2,437.50 Total $12,081.93

Dear Counsel:

This responds to Licensees' Request1 to cancel two delinquent bills for Fiscal Year (FY) 2011 regulatory fees and to waive payment of FY 2012 regulatory fees on the grounds that the licenses are under the control of a receiver who "lacks the means to pay the bills."2 We include in our discussion the affect of Licensees' unpaid delinquent FY 2010 regulatory fees on the Request. For the reasons set forth below, we dismiss and deny the Request.

1 Letter from David Tillotson, Attorney at Law, 4606 Charleston Terrace, N.W., Washington, DC 20007-1911 to Mr. David Robbins, Managing Director, FCC, 455 Twelfth St., S.W., Washington, DC 20554 (Aug. 2, 2012)(filed Aug. 9, 2012) (Request). Attached to the Request is a copy of Small v. Bryant, No.: 12-CP-04-01965 (S.C. C.P. 2012), Order Appointing Receiver, Jun. 12,2012 (Receivership Order or Order). 2 /d. at 1. David Tillotson, Esq. 2

The Commission's requirements to obtain a waiver from paying the required regulatory fees are well established; an applicant must show extraordinary and compelling circumstances that outweigh the public interest in recouping the Commission's regulatory costs.3 Fee relief may be granted based on a "sufficient showing of financial hardship."4 In such matters, "[m]ere allegations or documentation of financial loss, standing alone," do not suffice and "it [is] incumbent upon each regulatee to fully document its fmancial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public."5 Thus, in order to establish a basis for waiver predicated on financial need, the regulatee must provide financial documents including, e.g., a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation of how calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or siffiilar information. On this information, the Commission considers on a case-by-case basis whether the licensee met the standard to show the station lacks sufficient funds to pay the regulatory fee and maintain service to the public. 6 Before analyzing Licensees' Request under this standard, we discuss other procedural matters.

First, we dismiss that portion of the Request seeking cancellation of the FY 2011 regulatory fees because Licensee failed to demonstrate a basis in the Commission's procedures for that relief or, in the alternative, for debt compromise. Next, we are required to dismiss the entire Request because Licensees are delinquent in paying the FY 2010 and FY 2011 regulatory fees. 7 Furthermore, and in the alternative, we dismiss and deny the Request because Licensees . failed to meet our procedural requirements. Finally, Licensees failed to meet their burden of establishing both financial hardship and extraordinary and compelling circumstances that outweigh the public interest in recouping the Commission's regulatory costs.8 We discuss each matter in turn.

3 Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Red 5333, 5344,, 29 (1994), recon. denied, 10 FCC Red 12759 (1995); In The Matter of Phoenix Broadcasting, Inc. Stations KSWD and KPFN Seward, Alaska, Memorandum Opinion and Order, 18 FCC Red 26464, 26446, ,, 5-6 (2003) ("Fee relief may be granted based on asserted financial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public .... [I]n the absence of a docmnented showing of insufficient funds to pay the regulatory fees, [applicant] has not made a compelling showing that overrides the public interest in the Commission's · recouping the costs of its regulatory activities."). , 4 Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Memorandum Opinion and Order, 10 FCC Red 12759, 12761-62,, 13 (1995) (FY 1994 MO&O) 5 Id. 6 Id. 7 47 C.F.R. §§ 1.1164(e)("Any pending or subsequently filed application ... will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee .... "), 1.1166(c)("Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to fmancial hardship, supported by documentation of the financial hardship."), 1.1910; In The Matter Of Assessment And Collection Of Regulatory Fees For Fiscal Year 2010, Report and Order, 25 FCC Red 9278, 9297-98,54 (20 I 0) ("A late payment penalty of 25 percent of the unpaid amount of the required regulatory fee will be assessed on the first day following the deadline date for filing of these fees. Failure to pay regulatory fees and!or any late penalty will subject regulatees to sanctions, including those set forth in section 1.1910 of the Commission's Rules and in the Debt Collection Improvement Act of 1996 ('DCIA')"). · 8 Report and Order, 9 FCC Red 5333, 5344,, 29; In The Matter of Phoenix Broadcasting, Inc. Stations KSWD and KPFN Seward, Alaska, Memorandum Opinion andOrder, 18 FCC Red 26464, 26446; n 5-6 {2003) (''Fee relief David Tillotson, Esq. 3

Licensees requests that we cancel demands for payment of the delinquent FY 2011 regulatory fees on both stations.9 We cannot do this. Licensees failed to identify any Commission rule permitting such action or to present any factual basis for cancellation. Without a clear statutory basis, we have no authority to forgive Licensees' indebtedness or to waive recovery of the amounts owed. 10 Moreover, if we construe this portion of Licensees' Request as seeking relief based on an error, it fails without evidence that the debts11 are improper. Indeed, Licensees do not deny either that the debts are valid and due or that they are responsible for payment. As such, Licensees do not present a valid and proper challenge to the validity of the demand for payment of the regulatory fees. 12 Accordingly, we dismiss that portion of the Request seeking cancellation. In the alternative, if we construe Licensees' Request as seeking compromise, it must comply with our procedures set forth at 47 C.F.R § 1.1915. That rule permits a licensee to request compromise properly "submitted in writing with full justification of the offer and [that] address[es] the bases for compromise at 31 CFR 902.2. Debtors will provide full financial information to support any request for compromise based on the debtor's inability to pay the debt." However, because Licensees failed to provide the required written justification and full financial information, they failed to meet the required standard for a proper submission.. It is fatally defective, thus we dismiss that portion of Licensees' Request that seeks to cancel the debts.

Next, our records show that Licensees are delinquent in paying the FY 2010 and FY 2011 regulatory fees. For FY 2010, payment was due no later than August 31, 2010,13 and for FY 2011, the deadline for paying regulatory fees was September 16,2011.14 Because these debts are delinquent, Licensees are subject to sanctions, including those set forth at 47 U.S.C. · §159(c)(2),15 47 C.F.R §§ 1.1164, 1.1166,16 and 1.1910 (the Commission's red light rule), and may be granted based on asserted fmancial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public .... [I]n the absence of a documented showing of insufficient funds to pay the regulatory fees, [applicant] has not made a compelling showing that overrides the fublic interest in the Commission's recouping the costs of its regulatory activities."). Request at 1. 10 See 61 Comp. Gen. 471 (1988). 11 Bill #R11R021829 ($1,949.74) and Bill #R11R021830 ($1,818.72). 12 See 47 C.F.R. § 1.1167(a) ("A challenge to a determination that a party is delinquent in paying a standard regulatory fee must be accompanied by suitable proof that the fee had been paid or waived (deferred from payment during the period in question), or by the required regulatory payment and any assessed penalty payment (see § 1.1164(c) of this subpart)."). 13 See FY 2010 Regulatory Fees Due No Later Than August 31,2010, Eastern Time, Public Notice, DA 10-1451 (Aug. 9, 2010). 14 See FY 2011 Regulatory Fees Due No Later Than September 14,2011, Eastern Time, Public Notice, DA 11-1420 (Aug. 17, 2011); FY 2011 Regulatory Fee Deadline Is Extended To 11:59 PM ET, September 16,2011, Public Notice, DA 11-1559 (Sep. 15, 2011). 15 47 U.S. C. § 159(c)(2)("The Commission may dismiss any application or other filing for failure to pay in a timely manner any fee or penalty under this section."). 16 4 7 C.F .R. §§ 1.1164(e) ("Any pending or subsequently filed application submitted by a party will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee or an installment payment."), 1.1166(c)("Petitions for waiver of a regulatory fee must be accompanied by the required fee and FCC Form 159. Submitted fees will be returned if a waiver is granted. Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by documentation of the financial hardship."), and 1.1910. David Tillotson, Esq. 4

the Debt Collection Improvement Act of 1996 (DCIA). 17 The appointment of a Receiver does not change the result, thus we are required to dismiss Licensees' Request. This is the end of the matter, and we need not go further. Even so, as a courtesy, we discuss the content of the Request.

Next, we consider Licensees' petition to waive payment of regulatory fees on the grounds of financial hardship. They assert, "the reason for [the] request is that the two licensee entities were placed in receivership due to their inability to pay their debts and, accordingly, the licensees do not have the fmancial means to pay FY 2012 regulatory fees or the bills for FY 2011 fees." 18 There are multiple problems with Licensees' Request, which we discuss in turn.

First, Licensees failed to support their assertions of fact that (a) the receiver was appointed because of inability to pay debts and (b) the Receivership Order establishes the absence of financial means to pay the FY 2011 and FY 2012 regulatory fees. 19 Licensees provided only a copy of the Receivership Order, which, for the reasons that follow, is insufficient supporting evidence.

Under South Carolina law, a Receiver may be appointed for one or more of five · reasons.20 Here, the Receiver was appointed "to hold and manage business assets during the pendency of[the lawsuit] and for a final judgment for the amount due on a promissory note with enforcement of the security interest of the Plaintiff against the business assets [that are the] subject matter of [the law suit]."21 The Receivership Order shows as predicate facts that the plaintiff sold to defendant "Stock in the [Licensees'] Corporations ... for ... $1,200,000.00 [payable in $50,000.000 cash and a promissory note of$1,150,000.00]," and that $952,534.81, plus accumulated interest remained unpaid?2 Moreover, the Receivership Order acknowledges that the rights of the parties, including the defendant, remain unsettled as to "title or equity in and to the Stock, the License and the assets of the Corporations."23 These findings in the Order do not establish that the Receiver was appointed because of multiple defaults in obligations to creditors or financial hardship. Thus, rather than demonstrating defaults of "debt obligations" suggesting multiple defaults to multiple creditors, and financial inability to pay the FY 2011 and FY 2012 regulatory fees, the Order shows a Receiver was appointed for the different purpose ''to protect the interests of the parties to [a pending lawsuit] and the creditors of the business and to 24 protect the ongoing nature of the business." .

17 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996). 18 Request at 1. Licensees assert "the entities have been in default in their debt obligations since March 2010, [and] that the licensee entities are fmancial[ly] unable to pay FY 2012 regulatory fees and that they were fmancially unable to pay FY 2011 regulatory fees." 19 !d. at 2. 20 S.C. Code§ 15-65-10. Appointment of receiver. 21 Receivership Order at 1-2. See S.C. Code § 15-65-10(1) ("Before judgment, on the application of either party, when he establishes an apparent right to property which is the subject of the action and which is in the possession of an adverse party and the property, or its rents and profits, are in danger of being lost or materially injured or tmparre. . d .....") 22 !d. at 3-4. 23 !d. at4. 24 ld. at4. David Tillotson, Esq. 5

. Next, Licensees failed to present the required evidence of financial hardship. The Receivership Order shows the plaintiff in the associated lawsuit sought pendent lite relief to permit a Receiver to hold and manage assets of an ongoing business during the pendency of the lawsuit. That petition was not filed because the corporations "ha[d] been dissolved, [are] insolvent or in imminent danger of insolvency or ha[d] forfeited [their] corporate rights. "25 Rather than show evidence of insolvency, the content of the Receivership Order shows the underlying matter involves a suit to enforce the terms of a promissory note. Defendant made an initial payment of $50,000.00 and re~ular monthly payments until it "failed to pay the ... installment due on March 15, 2010." 6 Thus, plaintiff-Licensees received 49 payments totaling $371,905.10; and then plaintiff"fund[ed] the financial operations of the radio stations[, after which plaintiff] caused Phillips Media, LLC to assume operation of the radio stations. "27 Because Licensees failed to provide either an accounting of the payments received or any required relevant financial documentation, 28 we are unable to reach a determination that Licensee's are experiencing financial hardship.

Furthermore, Licensees failed to provide evidence of the Receiver's financial capabilities to pay fees, which is a necessary component in a claim of financial hardship, or to explain the legal authority excusing Receiver from complying with the Order to pay fees, which include FCC regulatory fees. Specifically, the Receiver was appointed to "protect the ongoing nature of the business,"29 account for all financial records and accounts, receive possession of all real and personal property and "disburse such funds as may be required ... for the maintenance and upkeep of the groperty ... including ... fees and other expenses ... for ... the operation of the business .... "3 Licensees failed to provide the documentation or the reason why it did not comply with those requirements. Without documentation of financial hardship, we are required to dismiss.31

Finally, Licensees failed to demonstrate how, in the light of the current national financial climate, the public interest is served by waiving the fee and charges. In certain instances, evidence of Receivership related to financial hardship may be a relevant fact;32 however, a copy of only a court order does not establish "extraordinary and compelling circumstances justifying a waiver when balanced against the public interest in reimbursing the Commission for its costs as reflected in the statutory fee provisions."33 The pendente lite Receivership Order establishes neither financial inability to pay the regulatory fees nor the public interest showing. Accordingly, we deny the Request.

25 S.C. Code§ 15-65-10(4). 26 Receivership Order at 3. 27 !d. at4. 28 47 C.F.R. § 1.1166(c). 29 !d. 30 !d. at 5. 31 47 C.F.R. § 1.1166(c). 32 See I d. at 12762, ~ 14 ("[W]here a bankruptcy trustee, receiver, or debtor in possession is negotiating a possible transfer of a license, the regulatory fee could act as an impediment to the negotiations and the transfer of the station to a new licensee."). 33 Assessment and Collection of Regulatory Fees for Fiscal Year 2003, Notice ofProposed Rulemaking, 18 FCC Red 6085,6090,1 11 (2003); FY 1994 MO&O, 10 FCC Red at 12761, ~ 12. David Tillotson, Esq. 6

Payment of $12,081.93 is now due. That amount must be received, together with a Form 159 (copy enclosed), within 30 days of the date of this letter.34 If Licensee's full payment of that amount is not received by that date, we will assess additional interest and penalties from the date 35 36 of this letter, and under the law, apply debt collection procedures. · · Because Licensee is delinquent in a debt owed the United States, this provides notification that under 31 U.S.C. § 3711(g), without further notice, and usually within 180 days or less of delinquency,. we will transfer the delinquent debt to Treasury, which will initiate collection action through private collection activities and assess additional charges. In addition, we may refer the debt to the Department of Justice, which may result in litigation and additional costs.

Moreover, under 31 U.S.C. § 3716, 31 C.F.R. § 285.5, and 47 C.F.R. § 1.1912, some or all of the debt may be collected by non-centralized or centralized administrative offset. Also, under 31 U.S.C. § 371l(e), this debt and Licensee's payment history will be reported to credit reporting information bureaus. Because we have furnished notice here, Licensee may not receive another notification of this process. Finally, Licensee will be red lighted37 until it pays the debt or ·makes other satisfactory arrangements.38Ifyou have any questions concerning this letter, please contact the Revenue and Receivables Operations Group at (202) 418-1995.

34 See 47 C.F .R. § 1.1167 (b) ("The filing of a petition for reconsideration or an application for review of a fee determination will not relieve licensees from the requirement that full and proper payment of the underlying fee payment be submitted, as required by the Commission's action, or delegated action, on a request for waiver, reduction or deferment."). 35 See 47 C.F.R. § 1.1901, et seq. 36 See 31 C.F.R. § 3717. 37 See 47 CF.R. § 1.1910(b)(2) ("Action will be withheld on applications, including on a petition for reconsideration or any application for review of a fee determination, or request for authorization by any entity found to be delinquent in its debt to the Commission ...."); 47 C.F.R. § 1.1164(e)("Any pending or subsequently filed application submitted by a party will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee or an installment payment."). · 38 See 47 C.F.R. § 1.1914 ("If a debtor is fmancially unable to pay a debt in one lump sum, the Commission, in its sole discretion, may accept payment in regular installments."). Incoming Communication Tracking - Entry Screen

Letters Sent Tracking Number II,. -----~--~~--!1ml !Date R~elved !L ~ 8/1/2012! 2day 0 30 day 0 File Number IL... ----~-···"·~--J loate Filed II ___ JUJLZQW 60 day 0 !Date Completed !L~~-- __j _ 60 day (2) 0 General Information I

Source ~~-~--~-~------~-----.J Call Sign [~.~---~--~--~.J Program Regulatory Fee .... ______FCC Code 1 I I [ ..•. ·····-··-· ·-·---·-····---····· ·-··-· Communication Type (WgjY.§LQfJM~~--~-~--··J FCC Code 2 I~ -· -~--~---··· ----·-~·· --~-~J Bureau IQ:I1Q_____ ~·~----J Licensing System t ·········-··· ··- ''"" ·-· ,,,,. --··-' ,., .' ... Secondary Bureau Wavier t. !Q.,Q.Q_; Amount

Applicant/Contact Information I

FRN t...... ····-······-~-~' Applicant Name kliff..Q!1!.!iJ3Jm'l!!i!lL.~. ·--· ...... ·-- ___ ... ____ 1 Address 1 l~t§.QQ._Q~r~_gQil~In!~-~Lli\'Y. Address 2 I City, State Zip ~""fyv,.._g-~-~~L-119!-t-on-.-.. --.-•••-.--.--.--"!Jii""D~C~------.."'"'\'_: I200.QZ~191I

Contact Name IDavid Tillotson _____ j Additional FRN 1~~--···---~-----·~~----.. -_j

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Assigned To POC lshelia Foster I ,.,,,,.., Outcome L-~-··. ~...... J RE Request for Waiver of Reg. Fees Filer ID o'

4606 Charleston Terrace, N.W. Tel: (202) 625-6241 Washington, DC 20007-1911 Fax: (202) 965-2018 Email [email protected] August 2, 2012

Mr. David Robbins Managing Director Federal Communications Commission 445 Twelfth Street, SW Washington, DC 20554

Re: Request for Waiver or Regulatory Fees

Dear Mr. Robbins:

I am writing on behalf of Clifford H. Bowman, the court appointed receiver of the assets of AM 1020, Inc., licensee of Station WRIX, Facility ID 1216, Homeland Park, SC, and FM 103, Inc., licensee of Stations WANS, Facility ID 21829, and Station WRIX-FM, Facility ID 21830, Homea Path and Anderson, SC, to request that (i) these stations be exempted from the obligation to pay FY 2012 regulatory fees and (ii) the bills that were sent to FM 103, Inc. for delinquent FY 2011 Regulatory Fees and late payment penalties (Bill #R11R021829 for $1,949.74 and Bill #R11R021830 for $1,818.72) be canaelied: The reason for this request is that the,two licensee entities were placed in receivership due to their inability to pay their debts and, accordingly, the licensees do not have the financial means to pay FY 2012 regulatory fees or the bills for FY 2011 fees.

Applications for consent to involuntary assignments of the licenses for WRIX, WRIX-FM and WANS have been filed with the Commission. As the Receiver lacks the means to pay the bills for 2011 Regulatory Fees or the FY 2012 that will be due in September, these applications and anticipated long form applications to assign the licenses from the Receiver to a new permanent licensee cannot be acted upon unless and until the above-referenced bills are canceled and the FY 2012 fees are waived.

A copy of the Court Order appointing Mr. Bowman Receiver of the assets of the two licensee entities is attached hereto. Mr. David Robbins Page2 This Order reflects that the licensee entities initially defaulted in their obligations to make payments to their principal creditor in March of 2010, that the licensees made no payments to their principal creditor after that date, and that in addition to the substantial amounts owed their principal creditor the Internal Revenue Service and the South Carolina Department of Revenue may have claims against the licensee entities and liens on their assets.

The facts that the licensee entities are in receivership and that the Court Order placing them in receivership reflects that the entities have been in default in their debt obligations since March 2010, establishes that the licensee entities are financially unable to pay FY 2012 regulatory fees and that they were financially unable to pay FY 2011 regulatory fees. Accordingly, grant of the waivers requested herein is warranted

Finally, it is requested that my letter dated July 30, 2012 requesting that the FY 2011 and FY 2012 regulatory fees for the stations referred to above be waived which contained certain errors be dismissed.

Courtesy Copy: Paul Cascio, Esq. (via email) c: Clifford H. Bowman, Receiver FEDERAL COMMUNICATIONS COMMISSION • • Washington, D. C. 20554 MAR 2 0 2013 OFFICE OF MANAGING DIRECTOR

Alister Watt Charles W. Dowdy, Debtor-in-Possession Post Office Box 30 Magnolia, MS 39652

Re: Waiver of Regulatory Fee (Bankruptcy; 47 U.S.C. §159(c)(2); 47 C.F.R. §§ 1.1164(e), 1.1166(c), 1.1910) Licensee/Applicant: Charles W. Dowdy, Debtor-In­ Possession FRN:0007557234 Stations: WJSH-FM, WTGG-FM, WAKH-FM, W AKK­ AM, W APF-FM, WFCG-FM, W AZA-FM, WBKN-FM, WMJU-FM, and WKJN-FM Fiscal Year (FY) 2012 Regulatory Fee: $10,400.00 FY 2012 Penalty: $2,600.00 Fee Control No.: RROG-12-00014740

Dear Mt. Watt:

This responds to Licensee's Request1 for a waiver and deferral of the Fiscal Year (FY) 2012 regulatory fees. As discussed below, we dismiss Licensee's Request because it is incomplete2 and it fails to conform to our standards, and as a result, Licensee became a delinquent debtor when it did not pay the required fees. 3 In the alternative, we deny the Request because Licensee fails to meet its burden of establishing both financial hardship and extraordinary and compelling circumstances that outweigh the public interest in recouping the Commission's regulatory costs. 4

1 Letter from Alister Watt, Charles W. Dowdy, Debtor-in-Possession, PO Box 30, Magnolia, MS 39652 to Marlene H. Dortch, Secretary, FCC, Attn: Office of the Managing Director, Regulatory Fee Waiver/Reduction Request, 445 12th St., SW, Washington, DC 20554 (Sep. 12, 2012) (Request). 2 47 C.F.R. § 1.1166(c)("Waiverrequests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by documentation of the fmancial hardship."). · 3 47 C.F.R. §§ 1.1164(e)("Any pending or subsequently filed application ... will be dismissed ifthat party is determined to be delinquent in paying a standard regulatory fee ...."), 1.1910; In The Matter Of Assessment And Collection Of Regulatory Fees For Fiscal Year 2010, Report and Order, 25 FCC Red 9278, 9297-98 ~54 (2010) ("A late payment penalty of25 percent of the unpaid ainount of the required regulatory fee will be assessed on the frrst day following the deadline date for filing of these fees. Failure to pay regulatory fees and/or any late penalty will subject regulatees to sanctions, including those set forth in section 1.1910 of the Commission's Rules and in the Debt Collection Improvement Act of 1996 ('DCIA')"). 4 Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Red 5333, 5344, ~ 29 (1994), recon. denied, 10 FCC Red 12759 (1995); In The Matter of Phoenix Broadcasting, Inc. Stations KSWD and KPFN Seward, Alaska, Memorandum Opinion and Licensee asserts simply it "is in Chapter II restructuring ... and is therefore financially unable to pay the 20I2 FCC Regulatory Fees." Licensee's supporting documentation is a single page ''Notice of Bankruptcy Case Filing case number I1-03329. "5 However, this does not support either a petition for deferral of payment or a request for a waiver of the fee.

The consequences for failing to follow our rule are serious. Because Licensee's petition for deferral6 is incomplete and it fails to conform to our standards, and because Licensee has not yet paid the fees, 7 it is delinquent. Thus, the 25% late payment penalty applies. Furthermore, because of the delinquency, Licensee is subject to sanctions, including those set forth at 4 7 8 U.S.C. § I59(c)(2) , 47 C.F.R. §§ l.II64, l.I166, and l.I9IO (the Commission's red light rule), and the Debt Collection Improvement Act of I996 (DCIA).9 Hence, under the law, we are required to dismiss the Request. In the alternative, we deny the Request on separate grounds.

In establishing a regulatory fee program, the Commission recognized that in certain instances, payment of a regulatory fee may impose an undue financial hardship upon a licensee, and it may be waived, reduced, or deferred upon a showing of good cause and a finding that the public interest will be served thereby.10 The Commission has narrowly interpreted its waiver authority to require a showing of extraordinary and compelling circumstances that outweigh the public interest in recouping the Commission's regulatory costs. 11 Fee relief may be granted based on a "sufficient showing of financial hardship."12 In such matters, however, "[m]ere allegations or documentation of financial loss, standing alone," do not suffice and "it [is] incumbent upon each regulatee to fully document its financial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public."13 Thus, in order to establish a basis for waiver predicated on financial need, the regulatee must provide financial documents

Order, 18 FCC Red 26464,26446, ~~5-6 (2003) ("Fee relief may be granted based on asserted fmancial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public .... [I]n the absence of a documented showing of insufficient funds to pay the regulatory fees, [applicant] has not made a compelling showing that overrides the public interest in the Commission's recouping the costs of its regulatory activities."). 5 In the Matter ofCharles W. Dowdy, U.S. Bankruptcy Court, S.D. MS, No. 11-03329 (REG). 6 47 C.F.R. § 1.116(j(c). 7 FY 2012 Regulatory Fees Due No Later Than September 13,2012, Eastern Time (ET), Public Notice, DA 12-1295 (Aug. 13, 2012) . .s 47 U.S.C. § 159(c)(2)("The Commission may dismiss any application or other filing for failure to pay in a timely manner any fee or penalty under this section."). 9 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996). 10 47 U.S.C. §159(d); 47 C.F.R. § 1.1166. See also Implementation ofSection9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Red 5333,5344 (1994), recon. denied, 10 FCC Red 12759 (1995). 11 9 FCC Red at 5344 ~ 29; In The Matter of Phoenix Broadcasting, Inc. Stations KSWD and KPFN Seward, Alaska, Memorandum Opinion and Order, 18 FCC Red. 26464,26446,,5-6 (2003) ("Fee relief may be granted based on asserted fmancial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public .... [I]n the absence of a doclimented showing of insufficient funds to pay the regulatory fees, [applicant] has not made a compelling showing that overrides the public interest in the Commission's recouping the costs of its regulatory activities."). 12 Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Memorandum Opinion and Order, 10 FCC Red 12759, 12761-"62, 1[13 (1995) (FY 1994 MO&O). uu .

2 including, e.g., a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation of how calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or similar information. On this information, the Commission considers on a case-by-case basis whether the licensee met the standard to show the station lacks sufficient ~ds to pay the regulatory fee and maintain service to the public.14

We consider a licensee's bankruptcy to be a relevant fact; 15 however, "in some circumstances a significant question may exist as to whether bankruptcy represents extraordinary and compelling circumstances justifying a waiver when balanced against the public interest in reimbursing the Commission for its costs as reflected in the statutory fee provisions."16 The primacy of the standard remains, the applicant must present "extraordinary and compelling circumstances showing that a waiver ... would override the public interest" in collecting the fee. 17 Thus, even in petitions where a bankruptcy proceeding is asserted as the basis for relief, we analyze the facts of each case to determine whether the applicant has satisfied both prongs of the Commission's standard, financial hardship and extraordinary18 and compelling circumstances19 showing waiver is justified. 20

Licensee failed to establish financial hardship and extraordinary and compelling circumstances that outweigh the public interest in recouping the Commission's regulatory costs. Licensee, the debtor-in-possession, asserts financial hardship based on a bankruptcy proceeding, but rather than furnishing full documentation of that proceeding related to the Chapter 11 reorganization, Licensee provided only limited information showing that on September 22, 2011, Licensee's predecessor entity filed for bankruptcy under Chapter 11 of the United States Bankruptcy Court in the Southern District of Mississippi. Without more useful documentation, we are left to speculate on the extent to which that bankruptcy proceeding changed the financial circumstances. Instead of a summary sheet, Licensee should have furnished us with a detailed submission establishing its current financial picture, e.g., a cash flow and the court's guidance21 on allowable administrative expenses. Furthermore, Licensee shollld have provided an explanation why the regulatory fees are not payable under 11 U.S. C. § 503 as administrative expenses for the benefit of the estate. Plainly, Licensee failed to demonstrate the existence of financial hardship, to establish "the impact of the regulatory fee [on the Licensee's] ability to

14 Id. 15 See Id at 12762, ~ 14 ("[W]here a bankruptcy trustee, receiver, or debtor in possession is negotiating a possible transfer of a license, the regulatory fee could act as an impediment to the negotiations and the transfer of the station to a new licensee."). 16 Assessment and Collection of Regulatory Fees for Fiscal Year 2003, Notice ofProposed Rulemaking, 18 FCC Red 6085, 6090, , 11 (2003). 17 FY 1994 MO&O, 10 FCC Red at 12761, ~ 12. 18 Black's Law Dictionary (9th ed. 2009)(extraordinary-"a highly unusual set of facts that are not commonly associated with a particular thing or evenf'). 19 Id. (compelling-"something so great that irreparable harm or injustice would result ifnotmef'). 20 In the Matter of Assessment and Collection ofRegulatory Fees for Fiscal Year 2003, Report and Order, 18 FCC Red 15985, 15989-90, ~~ 11, 13, 14 (2003). 21 Licensee did not submit relevant court documents authorizing or appointing a debtor-in-possession or trustee, court authorization permitting expenditure in the ordinary course of business, monthly or period operating reports, and fmancial reports and related financial documentation.

3 serve the public,"22 and to show how, in light of the current national financial climate, the public interest will be served by waiving the fee and charges.

When, as here, Licensee failed in its duty to clarify its position with the Commission23 and to maintain the accuracy and completeness of its application,24 we will not speculate about the substance of the information that might fill in the gaps. Accordingly, we deny Licensee's Request.

Payment of$10,400.00 for the FY 2012 regulatory fees and penalties are now due, and must be filed together with a Form FCC 159 (copy enclosed) within 30 days from the date of this letter to avoid accruing interest and applicable additional penalties required by 31 U.S.C. § 3 717. If you have any questions concerning this matter, please contact the Revenue & Receivables Operations Group at (202) 418-1995.

Enclosure

22 FY 1994 MO&O, 10 FCC Red at 12762,, 13. 23 Bartholdi Cable Co. Inc. v FCC, 114 F3d 274, 280 (DC Cir. 1997)(The Commission '"need not sift pleadings and documents' to identify arguments that are not 'stated with clarity' by a petitioner. It is the petitioner that has the burden of clarifying its petition before the agency."). . 24 47 C:'F.R. § 1.65 ("Each applicant is responsible for the continuing accuracy and completeness of information furnished in a pending application ... whenever the information furnished . . . is no longer substantially accurate and complete in all significant respects, the applicant shall as promptly as possible and in any event within 30 days, unless good cause is shown, amend or request the amendment of the application so as to furnish such additional or corrected information as may be appropriate.).

4 Received & Inspected Charles W. Dowdy, Debtor-in-Possession PO BOX 30 SEP 12 2012 Magnolia, MS 39652 Fcc Mail Room

Marlene H. Dortch, Secretary Federal Communications Commission Attn: Office ofthe Managing Director, Regulatory Fee Waiver/Reduction Request 445 12th Street, S.W., Room TW-B204 Washington, DC 20554 00:213:1/3? 3 tJ& .Zt!lt:>~ 9<711.,/ September 5, 2012

By Certified Mail

Petition To Waive And Defer Payment Due To Financial Hardship

Dear Ms Dortch,

Charles W. Dowdy, Debtor-In-Possession is currently recovering from Hurricane Isaac, is in Chapter 11 restructuring resulting from the after effects of Hurricane Katrina and is therefore financially unable to pay the 2012 FCC Regulatory Fees. I therefore request that you waive and defer payment of these fees due to financial hardship.

The devastation of hurricane Katrina widely affected the economy throughout the South. We experienced an intense downturn in the local labor market, as well as a general recession in the wake of the local battered economy. With large amounts of debt and poor economic conditions, Charles W. Dowdy had no choice but to seek the protection of the United States Bankruptcy Courts. Only now, in 2012 are we starting to see any recovery in advertising revenue.

This recovery has now been stopped abruptly by the after effects of Hurricane Isaac. Our stations in Louisiana and Mississippi are in the geographic areas most affected by Hurricane Isaac: St Tammany and Tangipahoa Parishes in Louisiana, and Pike and Lincoln Counties in Mississippi . While we were successful in keeping our signals on the air during and after the storm to provide a much needed public service, the additional manpower and engineering expense we incurred put a further strain on our limited cash on hand. Cash receipts slowed before the storm as our customers prepared for the storm and have now virtually stopped as businesses start to re-open and manage their own cash flow problems. We will never recoup the cash flow we have lost in August and September due to the storm.

Paying the 2012 FCC Regulatory Fees would create an extreme financial hardship on continuing operations. I therefore request that you waive and defer payment of these fees due to financial hardship.

Sincerely,

·Alister Watt Senior Vice President Charles W. Dowdy, Debtor-In-Possession

Attached: Certificate of Chapter 11 filing

List of Stations WJSH-FM WTGG-FM WAKH-FM WAKK-AM WAPF-FM WFCG-FM WAZA-FM WBKN-FM WMJU-FM WKJN-FM FEDERAL COMMUNICATIONS COMMISSION Washi'!gton, D. C. 20554 JAN 0 9 2013 OFFICE OF MANAGING DIRECTOR

Oscar J. Williams Communications Xchange, LLC 3550 W. Busch Blvd., Suite 180 Tampa, FL 33618

Re: Regulatory Fee Deferral (47 C.P.R. § 1.1166) Licensee: Communications Xchange, LLC Station: N/A FRN:0007759129 Fee: Fiscal Year (FY) 2011 Regulatory Fee Date Filed: Mar. 15, 2012 Fee Control No.: RROG-11-00014222 Regulatory Fee (FY 2011): $1,201.00 25% Late Payment Penalty: $300.25 Charge of Collection: $50.00 Interest (1% to 1117/2013): $20.01 Penalties (6% to 1/17/2013): $120.07 Total as of 1117/2013: $1,691.33

Dear Mr. Williams:

This responds to Licensee's Request1 to defer payment of the delinquent Fiscal Year (FY) 2011 regulatory fees. 2 Because, as our records reflect, Licensee remains delinquent in paying the FY 2011 fee, we must dismiss and, for the additional reasons discussed below, deny Licensee's Request. Licensee must pay $1,691.33, immediately.

Failure to pay the required regulatory fee and any late penalty subjects the licensee to sanctions, including the Commission's red light rule3 and the procedures set forth in the Debt Collection Improvement Act of 1996 (DCIA).4 Under our rules, we withhold action on any application or request for benefits filed by anyone who is delinquent in any non-tax debt (including a delinquent regulatory fee) owed to the Commission. Ultimately, we will dismiss that application or other request, if the licensee or regulatee does not make payment or other. satisfactory arrangement for payment of the underlying delinquent debt. 5 Because Licensee is

1 Email from Oscar J. Williams, ([email protected]) to ARINQUIRES ([email protected])(Mar. 15, 2012)(Request). 2 See FY 2011 Regulatory Fees Due No Later Than September 14, 2011, Eastern Time, Public Notice, DA 11-1420 (Aug. 17, 2011); FY 2011 Regulatory Fee Deadline Is Extended To 11:59 PM ET, September 16,2011, Public Notice, DA 11-1559 (Sep. 15, 2011). 3 See 47 C.P.R. § 1.1910. 4 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996). 5 See 47 C.P.R.§§ 1.1164(e) & (f)(5), 1.1910. '

delinquent in paying a non-tax debt, we dismiss the Request, 6 and on separate alternative grounds, we deny Licensee's Request.

Licensee seeks a deferral "until March 31,2011 [sic] for [it] to resolve th[e] matter"7 because Licensee "changed ownership last year[, and t]he person who would normally handle this has retired and [Licensee is] unable to reach him until next week[, which is the week of March 19 through 23, 2012]."8

Payment may be deferred only where the request is based ·on properly supported financial hardship. Licensee did not base its Request on financial hardship, thus it failed to assert a valid ground. 9 Moreover, the requested ''brief extension of time" until March 31, 2012, passed without Licensee either making payment or contacting the Commission. As we discuss, below, the Request fails to meet our standards.

Our rule set forth at 47 C.F.R. § 1.1166 provides in relevant part,

The fees established by sections 1.1152 through 1.1156 maybe waived, reduced or deferred in specific instances, on a case-by-case basis, where good cause is shown and where waiver, reduction or deferral of the fee would promote the public interest. * * *

(b) Deferrals of fees, if granted, will be for a designated period of time not to exceed six months.

(c) ... Waiver requests tha~ do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by documentation of the fmancial hardship.

Our rule is clear; the mere allegation of fmancial hardship does not automatically entitle a licensee to a deferral of its obligation to pay regulatory fees. Only a properly supported claim of . financial hardship provides the basis for deferral. A regulatee cannot delay payment on the theof6 that its deferral request triggered an automatic six-month extension of its obligation to pay. 1 A request for additional time to contact a former employee is insufficient.

6 47 C.F.R § 1.1166(c)(Petitions for waiver of a regulatory fee must be accompanied by the required fee and FCC Form 159. Submitted fees will be returned if a waiver is granted. Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to fmancial hardship, supported by documentation of the financial hardship.); 47 U.S. C.§ 159(c)(2); 47 C.F.R § 1.1164(e) ("Any pending or subsequently filed application submitted by a party will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee or an installment payment."). 7 Request. 8 Id. 9 See Bartholdi Cable Co., Inc. v. FCC, 114 F.3d 274, 280 (D.C. Cir. 1997) (''petitioner ... has the 'burden of clarifying its position' before the agency."). See also 47 C.F.R. § 1.16 (An applicant is responsible for the continuing accuracy and completeness of information furnished.). 10 In the Matter of Assessment and Collection ofRegulatory Fees for Fiscal Year 2011, Notice ofProposed Rulemaking, 26 FCC Red 7068, 7073,, 10 (2011); In the Matter of Assessment and Collection of Regulatory Fees for· Fiscal Year 2011, Report and Order, 26 FCC Red 10812, 10819,,17 (2011).

2 A fee may be waived, reduced or deferred, but only upon a showing of good cause and a finding that the public interest will be served thereby. 11 The Commission has narrowly interpreted its waiver authority to require a showing of compelling and extraordinary circumstances that outweigh the public interest in recouping the Commission's regulatory costs.12 Fee relief may be granted based on asserted financial hardship, but only upon a documented showing that payment of the fee will adversely affect the licensee's ability to serve the public. 13 "Mere allegations or documentation of financial loss, standing alone," do not suffice and "it [is] incumbent upon each regulatee to fully document its fmancial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public."14 In reviewing a showing of financial hardship, the Commission relies on a range of financial documents including a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation ofhow calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or similar information. It is on this information that the Commission considers on a case-by-case basis whether the station lacks sufficient funds to pay the regulatory fee and maintain service to the public.15 Licensee failed to meet these standards, 16 so we must deny the Request. ·

Communications Xchange, LLC is delinquent in paying its regulatory fee and the accrued charges. Full payment of$1,691.33 is due now, and it must be received before January 17, 2013. If full payment of that amount is not received by that date, additional interest. penalties, and charges required by 31 U.S.C. § 3717(e) will continue to accrue. Furthermore, under the law, 17 the Commission will initiate collection proceedings against Licensee. If you have any questions concerning this letter, please contact the Revenue and Receivables Operations Group at (202) 418-1995.

11 47 U.S.C. § 159(d); 47 C.F.R. § 1.1166. See also Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for Fiscal Year 1994, Report and Order, 9 FCC Red 5333, 5344 (1994), recon. denied, 10 FCC Red 12759 (1995). 12 9 FCC Red at 5344 1 29. 13 10 FCC Red at 12761-62 1 13. 14 !d. 15 !d. 16 Id. 17 See 47 C.F.R. § 1.1901, et seq.

3 Page I ot ' Stephen French

From: Oscar Williams [[email protected]] Sent: Thursday, March 15, 2012 10:10 AM To: ARINQUIRIES Subject: Account# 0007759129

We just receive this notice which was mailed to the address of Communication Xchange which we changed ownership last year. The person who would normally handle this has retired and we are unable to reach him until next week. We are therefore asking for a brief extension of time until March 31, 2011 for us to resolve this Demand Letter.

Oscar J. Williams Partner Zotera [email protected] 1-813-400-2677 ext 335 -Office 1-813-928-3031- Mobile

3/15/2012 ..

FEDERAL COMMUNICATIONS COMMISSION Washington, .D. C. 20554 APR, .. ZQf3 OFFICE OF MANAGING DIRECTOR

Thomas H. Pope, III Pope Hudgens Attorneys, P .A. 1508 College Street Post Office Box 190 Newberry,SC 29108

Re: Waiver and Deferral Request, Application Fee and Regulatory Fees (Financial Hardship; 47 C.F.R. §§ 1.1118(b), 1.1119, 1.1164(e), 1.1166(c)) Licensee/Applicant: Cornell Blakely Statioii:WKMG 1520 AM Fees: Application Fee and Fiscal Year (FY) 2010 and 2011 Regulatory Fees Date Filed: Oct. 4, 2011 (dated Sep. 27, 2011); Aug. 16, 2011 (dated Aug. 11, 2011) Fee Control No.: RROG-11-00013684, 11- 00013685, and 11-000140141 License Renewal Fee: Renewal Application Fee: $175.00 Regulatory Fees: FY 2010: $575.00 FY 2010 Penalty: $143.75 Charge of collection: $ 50.00 FY 2011: $600.00 Total Due: $1,543.75

Dear Counsel:

This responds to Licensee's four Requests, 2 for waiver and deferrai of the license renewal' fee and the required Fiscal Year (FY) 2010 and FY 2011 regulatory fees due for Station WKMG

1 Because facts common to all petitions for relief are dispositive, in this single decision, we resolve the three separate requests for relief that were captioned as follows, "Petition for Waiver and Deferral for License Renewal Fee," "Petition for Waiver and Deferral for Regulatory Fee," "Petition for Waiver and Deferral for License Renewal Fee for Year 2010," and "Petition for Waiver and Deferral for Regulatory Fee for Year 2010." 2 Letter from Thomas H. Pope ill, Pope & Hudgens Attorneys, P.A., 1508 College Street, P.O. Box 190, Newberry, SC 29108 to FCC, Attn: Mr. Mark Stevens, CFO, 445 12th St., S.W., Rm 1-A625, Washington, DC 20554 (Aug. 11, 2011) (Request I); Letter from Thomas H. Pope III, Pope & Hudgens Attorneys, P.A., 1508 College Street, P.O. Box 190, Newberry, SC 29108 to FCC, Attn: Mr. Mark Stevens, CFO, 445 12th St., S.W., Rm 1-A625, Washington, DC 20554 (Aug. 11, 2011) (Renewal Fee Waiver I); Letter from Thomas H. Pope, Pope &.Hudgens Attorneys, P.A. to FCC, Attn: Ms Ann Monahan. 445 12th St., S.W., Rm 1-A625, Washington, DC 20554 (Aug. 19, 2011); Letter from Thomas H. Pope, Pope & Hudgens Attorneys, P.A. to FCC, Attn: Mr. Mark Stevens, CFO- c/o Ms Ann Monahan. 445 12th St., S.W., Rm 1-A625, Washington, DC 20554 (Sep. 27, 2011)(Request II); Letter from Thomas H. Pope, Pope & Hudgens Attorneys, P.A. to FCC, Attn: Mr. Mark Stevens, CFO- c/o Ms Ann Monahan. 445 12th St., 1520AM. As discussed below, we are required to dismiss Licensee's Requests because Licensee is delinquent in paying other year's regulatory fees3 and the Requests are incomplete. 4

On February 2, 2010, Licensee requested a waiver of the FY 2009 regulatory fee on the grounds that the station had "very limited revenue" that was "approximately [equal to the] amount going out [for expenses]."5 Licensee asserted it had only one employee, its "equipment is very much outdated and the transmitter is over 40 years old." Moreover, Licensee asserts, the request was in the public interest, because Licensee's "minority-owned station" provides a service to significant minority population in the community.6 Our decision on that request was in error. Staff oversight failed to discover that at the time Licensee requested waiver of the FY 2009 regulatory fees, it was delinquent in paying fees that were due for FYs 2002, 2003, 2007, and · 2008. Thus, that request should have been dismissed, and Licensee should have paid the fee. Moreover, because Licensee was delinquent, the Commission should have withheld action on any other application.7 Instead, on September 10, 2010, we granted Licensee's request for "waiver of the regulatory fees for fiscal year 2009."8

On August 16, 2011, Licensee filed its Renewal Fee Waiver I petitioning the Commission for a waiver and deferral of the $17 5. 00 renewal fee and Request I petitioning the Commission for waiver and deferral of the required FY 2011 regulatory fee. Although Renewal Fee Waiver I and Request I are dated August 11, 2011, they were not filed with the Commission until August 16, 2011; the date on which they were received at the Commission's designated location.9 In these two petitions, Licensee presented substantially the same argument made on February 2, 2010, which we will not repeat. As financial documentation, Licensee provided a single copy of bank statements and cancelled checks for the period February 2011 through July 2011.

S.W., Rm 1-A625, Washington, DC 20554 (Sep. 27, 2011)(Renewa/ Fee Waiver II); Letter from Thomas H. Pope, Pope & Hudgens Attorneys, P .A. to FCC, Attn: Peter H. Doyle, Chief & Ann Monahan, Financial Management Specialist, 445 12th St., S. W., Washington, DC 20554 (Dec. 12, 2011) (collectively, the petitions are referred to as, Requests). 3 47 C.F.R §§ 1.1164(e)("Any pending or subsequently filed application ... will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee .... "), 1.1910; In The Matter Of Assessment And Collection Of Regulatory Fees For Fiscal Year 2010, Report and Order, 25 FCC Red 9278, 9297-98, 54 (2010) ("A late payment penalty of25 percent of the unpaid amount of the required regulatory fee will be assessed on the first day following the deadline date for filing of these fees. Failure to pay regulatory fees and/or any late penalty will subject regulatees to sanctions, including those set forth in section 1.1910 of the Commission's Rules and in the Debt Collection Improvement Act of 1996 ('DCIA')"). 4 47 C.F.R. § 1.1166(c)("Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by documentation of the fmancial hardship."). 5 Letter from Thomas H. Pope III, Pope & Hudgens Attorneys, P.A. to FCC, Office of the Managing Director, 445 12th St., S.W., Rm.l-A625, Washington, DC 20554 (Feb. 2, 2010). 6 Id. 7 47 C.F.R § 1.1910. 8 Letter from Mark. Stephens, Chief Financial Officer, FCC, Washington, DC 20554 to Thomas H. Pope III, Pope & Hudgens, 1508 College Street-P.O. Box 190, Newberrcy, SC 29108 (Sep. 10, 2010). 9 47 C.F.R § 1.7 ("pleadings and other documents are considered to be filed with the Commission upon their receipt at the location designated by the Commission.").

2 Thereafter, on October 4, 20II, Licensee filed an untimely Request II petitioning the Commission for waiver and deferral of the FY 2010 regulatory fee and Renewal Fee Waiver II petitioning for a "waiver of the FCC license renewal fee for Year 2010." There are two problems with these petitions. First, Renewal Fee Waiver II appears to be an erroneous or unnecessary submission. The application fee to renew a broadcast license is not an annual requirement, and the matters raised in the petition were raised in Licensee's Renewal Fee Waiver I, filed August I1, 20 II. Second, Request II was untimely because it was filed after August 3I, 20 I 0, 10 the date on which fees were due. As a result, Licensee was delinquent in paying the FY 20 I 0 regulatory fees before Request II was filed. Looking to the content, Licensee repeated the same assertions he made on February 2, 2010, and included copies of bank statements and cancelled checks for the period from January 2010 to December 20IO.

Licensee's frrst problem is that it is a delinquent debtor. Licensee is delinquent in paying FY 2002, 2003,2007, and 2008 regulatory fees, penalties, and the accrued, but unpaid interest, penalties, and charges of collection and the FY 20IO regulatory fee. As a result, we are compelled to dismiss.

The consequences of failing to pay delinquent debts are serious. First, Licensee remained delinquent in paying regulatory fees due for FY 2002,2003, 2007, and 2008; thus, under the law, 11 the Commission transferred these debts to the U.S. Department of the Treasury for collection. In addition, because Licensee failed to pay the required FY 201 0 regulatory fee when it was due, under 47 U.S.C. § 159(c)(1), a25% penalty was automatically applied. As a result, Licensee continues to owe the money, and he is subject to procedural sanctions, including those set fo$ at 47 U.S.C. § 159(c)(2)/2 47 C.P.R. §§ 1.1118, 1.1164, 1.1166, and 1.1910 (the Commission's red light rule), and the Debt Collection Improvement Act of 1996 (DCIA). 13 Plainly, we are required to dismiss all Requests. In the alternative, we deny the Requests on separate grounds. We note also that Licensee does not qualify for an exemption from the fees as set forth in our rule at 4 7 C.F .R. § 1.1162.

In establishing a regulatory fee program, the Commission recognized that in certain instances, payment of a regulatory fee may impose an undue financial hardship upon a licensee, and it may be waived, reduced, or deferred upon a showing of good cause and a fmding that the public interest will be served thereby. 14 The Commission has narrowly interpreted its waiver authority to require a showing of extraordinary and compelling circumstances that outweigh the public interest in recouping the Commission's regulatory costs.15 Fee relief may be granted based

1 °FY 2010 Regulatory Fees Due No Later Than August 31,2010, Eastern Time (ET), Pubic Notice, DA 10-1451, 25 FCC Red 10676 (Aug. 9, 2010). 11 31 U.S.C. § 3711; 31 U.S.C. § 285.12. 12 47 U.S.C. § 159(c)(2)("1P.e Commission may dismiss any application or other filing for failure to pay in a timely manner any fee or penalty under this section."). 13 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996). . 14 47 U.S.C. §159(d); 47 C.F.R § 1.1166. See also Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Red 5333, 5344 (1994), recon. denied, 10 FCC Red 12759 (1995). 15 9 FCC Red at 5344 t 29; In The Matter of Phoenix Broadcasting, Inc. Stations KSWD and KPFN Seward, Alaska, Memorandum Opinion and Order, 18 FCC Red 26464, 26446, tt 5-6 (2003) ("Fee relief may be granted based on asserted financial hardship, but only upon a documented showing that payment of the fee will adversely impact the

3 on a "sufficient showing of financial hardship."16 In such matters, however, "[m]ere allegations or documentation of financial loss, starlding alone," do not suffice and "it [is] incumbent upon each regulatee to fully document its financial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public."17 Thus, in order to establish a basis for waiver predicated on fmancial need, the regulatee must provide financial documents including, e.g., a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation of how calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or similar information. On this information, the Commission considers on a case-by-case basis whether the licensee met the standard to show the station lacks sufficient funds to pay the regulatory fee and maintain service to the public. 18 Under 4 7 C.F .R. § 1.1119(e) & (f), these requirements apply equally to a petition to waive and defer payment of an application fee on the grounds of financial hardship.

Licensee's Requests presented limited financial information in the form of bank statements and cancelled checks that depict relatively small financial transactions, but without providing any context to the documentary evidence, which is necessar~ to establish cash flows, identify income and expenses, and to demonstrate financial hardship. 1 Mere assertions fail to establish the existence of financial hardship or demonstrate extraordinary and compelling circumstances sufficient to outweigh the public interest in recouping the Commission's regulatory costs. In this case, Licensee's documentation fails to show that a waiver is warranted. The burden of proof rests with the petitione~ 0 to demonstrate that on "a.case-by-case" it has shown "good cause" and that the "waiver [of the required fee] would promote the public interest."21 Plainly, Licensee failed to provide sufficient financial information on which to make a determination.

Accordingly, without sufficient evidence offmancial hardship,22 we deny licensee's Requests for a waiver of the required regulatory fees and the waiver of the application fee.

Payment of $1,543.75, which is the total of (1) Licensee's unpaid application fee, (2) Licensee's FY 2010 regulatory fee plus the 25% penalty and administrative charge of collection, and (3) Licensee's FY 2011 regulatory fee. That amount must be received, together with a Form 159 (copy enclosed), within 30 days of the date of this letter. Moreover, as noted above, because

licensee's ability to serve the public .... [I]n the absence of a documented showing of insufficient funds to pay the regulatory fees, [applicant] has not made a compelling showing that overrides the public interest in the Commission's recouping the costs of its regulatory activities."). 16 Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Memorandum Opinion and Order, 10 FCC Red 12759, 12761-62,, 13 (1995) (FY 1994 MO&O). 17 Id. _Is Id. 19 Licensee failed to provide a balance sheet, a profit and loss statement, or a cash flow (or any of the information included in those documents). A relatively small monthly average checking account balance and a series of checks, with no information to identify the payee or to establish the reason for the payment fail to demonstrate Licensee's financial situation. We cannot speculate upon checks and bank statements whether or not a licensee is capable of gaying the required regulatory fee. 0 Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). . 21 47 C.F .R. §§ 1.1119, 1.1166; FYI 994 MO&O, 10 FCC Red at 12762, , 13. 22 !d.

4 Licensee is delinquent in paying the fees, until the full amount due is paid, we are required to withhold action on any application filed or pending by Licensee. 23 If full payment of that amount is not received by that date, additional interest, penalties, and charges required by 31 U.S.C. § 3717(e) will continue to accrue from the date of this letter. Furthermore, under the law/4 the Commission will initiate collection proceedings against Licensee. If you have any questions concerning this letter, please contact the Revenue and Receivables Operations Group at (202) 418-1995. .

Sincerely,

Mark tephens Chief Financial Officer

Enclosure

23 47 C.P.R.§ 1.1910. 24 See 47 C.P.R. § 1.1901, et seq.

5 \\,,. } ~~ a FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. 20554 APR a· , l0f3- OFACEOF MANAGING DIRECTOR

Dan Collier Discussion Radio, Inc. 100 Pond Street Norfolk, MA . 02056

Re: (Financial Hardship; 47 U.S.C. § 159(c)(l), 31 U.S.C. § 3717,47 C.F.R, §§ 1.1164, 1.1166) Licensee/Applicant: Discussion Radio, Inc. Station: WDIS-AM FRN:0006092571 Fees: Fiscal Year (FY) 2011 and 2012 Regulatory Fees Date Request Filed: Sep. 12, 2012 Fee Control No.: RROG-12-00014689 Regulatory Fees: $3,100.00 Late Payment Penalties: $ 775.00 Interest and Penalties: $ 109.62 Admin Charges: $ 50.00 Total Fees and charges: $4,034.62

Dear Mr. Collier:

This responds to Licensee's Request1 for waiver and deferment of the required Fiscal Years (FY) 2011 and 2012 regulatory fees due for Station WDIS-AM. Our records reflect that Licensee has not paid the FY 2011 and FY 2012 regulatory fees, the late payment penalties, and accrued interest, penalties, and charges for collection. For the reasons stated herein, we dismiss and deny Licensee's Request. To avoid additional charges, full payment of the above amount must be received within 30 days from the date of this letter.

1 Email from Dan Collier [[email protected]] to ARINQUIRIES (Sep. 12, 2012); Letter from Dan Collier, WDIS, 100 Pond St., Norfolk, MA 02056 to Marlene H. Dortch, Secretary, FCC, Attn: Office of the Managing Director, Regulatory Fee Waiver/Reduction Request, 445 12th St., S.W., Room TW-B204, Washington, DC 20554 (Sep. 12, 2012) (Request). For FY 2011, the deadline for paying regulatory fees was September 16, 2011.2 Licensee did not meet that deadline, and further, as of the date of the Request, Licensee remained delinquent in paying the FY 2011 regulatory fee and accrued charges.3 Thus, under 47 U.S. C. § 159(c)(2) and 47 C.F.R. § 1.1164(e), we must dismiss the Request. Moreover, as a delinquent debtor, Licensee is subject to sanctions, including those set forth at 47 C.F.R. § 1.1910 (our red lightrule)4 and the Debt Collection Improvement Act of 1996 (DCIA).5 Additionally, under 47 C.F.R. § 1.1166(c), other grounds exist for dismissal because Licensee failed to include with its Request the required supporting financial documentation. Finally, in the alternative, because Licensee's Request does not meet our standards, we dismiss. We discuss these matters, below.

Under 47 C.F.R. § 1.1166(c), because Licensee did not provide required documentation, we must dismiss. Licensee asserted that it was "prepared to provide evidence of the financial hardship that WDIS Licensee is experiencing," and that it included "records of revenue taken in [during the] summer,"6 Unfortunately, those records are missing, and Licensee failed in its duty to provide "documentation of financial hardship." But even if the summer's "records of revenue" had been attached, by their descriptive term, they represent only seasonal or partial year revenue information, which'does not establish the licensee's financial status7 or hardship. The burden of proof in demonstrating whether waiver is warranted rests with the petitioner, 8 and a petition submitted without sufficient supporting evidence must be dismissed.9

Even if the above circumstances did not require us to dismiss Licensee's Request, we would, nonetheless, deny it. In establishing a regulatory fee program, the·commission recognized that in certain instances, payment of a regulatory fee may impose an undue financial hardship upon a licens~e. Such fees may be waived, reduced or deferred, but only uRon a showing of good cause and a finding that the public interest will be served thereby. 0 The

2 See FY 2011 Regulatory Fees Due No Later Than September 14, 2011, Eastern Time, Public Notice, DA 11-1420 (Aug. 17, 2011 ); FY 2011 Regulatory Fee Deadline Is Extended To 11 :59 PM ET, September 16, 2011, Public Notice, DA 11-1559 (Sep. 15, 2011). 3 Under47 U.S.C. § 159(c), we are required to assess a25% late payment penalty, and under 31 U.S.C. § 3717, we must assess interest, penalties, and charges of collection. Charges under section 3717 continue to accrue until the full amount of the debt is paid. 4 Under 47 C.F.R. § 1.1910(b)(2), the Commission will withhold action on any application filed or pending. 5 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996). 6 Request. 7 As discussed below, a request must be fully documented; revenue reports do not meet that stai_ldard. 8 Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). 9 47 C.F .R. § 1.1166( c) ( "petitions for waiver of a regulatory fee must be accompanied by the required fee and FCC Form 159 .... Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to fmancial hardship, supported by documentation of the fmancial hardship."); In The Matter of Assessment and Collection ofRegulatory Fees For Fiscal Year 2011, Report and Order, 26 FCC Red 10812, 10819,1 17 (2011) (A "mere allegation of financial hardship ... does not automatically entitle [a petitioner] to a deferral of its obligation to pay regulatory fees; only a properly supported claim offmancial hardship will entitle the regulatee to a deferral. Accordingly, if a request for deferral is not supported by documentation of financial hardship, it will be denied, and an associated petition for waiver or reduction will be dismissed. A regulatee cannot delay payment on the theory that its deferral request triggered an automatic six-month extension of its obligation to f

2 Commission has narrowly interpreted its waiver authority to require a showing of compelling and extraordinary circumstances that outweigh the public interest in recouping the Commission's regulatory costs. 11 Fee relief may be granted based on asserted financial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public. 12 "Mere allegations or documentation offmancialloss, standing alone," do not suffice and "it [is] incumbent upon each regulatee to fully document its financial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public. " 13 In reviewing a showing of financial hardship, the Commission relies on a range of financial documents including a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation of how calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or similar information. It is on this information that the Commission considers on a case-by-case basis whether the station lacks sufficient funds to pay the regulatory fee and maintain service to the public.14 Thus, for example, even if a station loses money, any funds paid to principals and deductions for depreciation or amortization are considered funds available to pay the fees.

That required information was not provided; thus, without sufficient evidence of financial hardship, 15 Licensee failed in its obligation, and we deny the Request.

Payment of$4,034.62, Licensee's FY 2011 and FY 2012 regulatory fees, penalties, and accrued charges is now due. Full payment must be received, together with a Form 159 (copy enclosed), within 30 days of the date of this letter. If Licensee fails to pay the full amount due by that date, the debt is delinquent, and the statutory penalty of25% of the unpaid FY 2012 fee, 16 and interest and applicable additional penalties required by 31 U.S.C. § 3717 will accrue from the date of this letter. Moreover, under the law, 17 the Commission will initiate collection proceedings. If you have any questions concerning this letter, please contact the Revenue and Receivables Operations Group at (202) 418-1995.

Mark Stephens Chief Financial Officer

Enclosure

11 9 FCC Red at 5344,, 29. 12 10 FCC Red at 12761-62,, 13. 13 !d. 14 !d. 15 !d. 16 47 U.S.C. § 159(c)(l). See 9 FCC Red at 5346,, 35 ("the petitioner will have 30 days to [pay the fee] in order to avoid the assessment of penalty charges and the invocation of any other available remedy. The filing of a petition for reconsideration will not toll this 30-day period."). 17 See 47 C.P.R. § 1.1901, et seq.

3 .. .t'age 1 or _ Stephen French (J).~~r~jp~ ------From: [email protected] Sent: Wednesday, September 12, 2012 3:05 PM To: ARINQUIRIES Subject: Regulatory Fee 2011 2012 Attachments: FCC_LETIER.odt; Petition_for_Deferrell.odt; Petitio_for_Waiver.odt

Dear Sir or Madam:

I am contacting you regarding a request for a petition for waiver and petition for deferral of regulatory fees for WDIS-AM for 2011 and 2012. The request has also been sent by hard copy via the mail. Please see attachments.

Best regards, Dan Collier, WDIS Discussion Radio,lnc. FRN 0006-0925-71 WDIS-AM Norfolk, MA 02056

9/12/2012 WDIS 1170 AM AND WDISAM.COM TALK, INFORMATION AND LOCAL SPORTS

100 Pond Street Phone: 508-384-8255 Norfolk, MA 02056 Fax: 508-384-8255 Website WDISAM.COM E-Mail [email protected]

September 11, 2012

Marlene H. Dortch, Secretary Federal Communications Commission Attn: Office of the Managing Director, Regulatory Fee Waiver/Reduction Request 445 12111 Street, S.W. Room TW-8204 Wa~hington, D.C. 20554

Dear Sir or Madam:

I am contacting you on behlaf ofWDIS- AM in Norfolk, Mass. I am filing a petition with the FCC for a waiver on the 2011 and 2012 Regulatory Fees because the payment of these would be a true finanicial hardship for WDIS that could lead to a shut down of the radio station. I am also at this time filing a petition for deferrell of the fees.

Please contact with any questions concerning these petitions. I am prepared to provide evidence of the finanicial hardship that WDIS is experiencing. Enclosed are records of the revenue taken in by WDIS this summer. The records are exhibit A.

Thank you for your attention to this matter.

Best regards,

Dan Collier, WDIS WDIS 1170 AM AND WDISAM.COM TALK, INFORMATION AND LOCAL SPORTS

100 Pond Street Phone: 508-384-8255 Norfolk, MA 02056 Fax: 508-384-8255 Website WD.ISAM.COM E-Mail [email protected]

***PETITION FOR WAIVER***

WDIS-AM Discussion Radio, Inc. 100 Pond Street Norfolk, MA 02056 FRN 0006-0925-71

Petition for Waiver 2011 and 2012 Regulatory Fees due to Finanicial Hardship.

Daniel F. Collier for WDIS-AM Discussion Radio, Inc. WDIS 1170 AM AND WDISAM.COM TALK, INFORMATION AND LOCAL SPORTS

100 Pond Street Phone:508-384-8255 Norfolk, MA 02056 Fax: 508-384-8255 Website WDISAM.COM E-Mail [email protected]

*** PETITION FOR Deferral! ***

WDIS-AM Discussion Radio, Inc. 100 Pond Street Norfolk, MA 02056 FRN 0006-0925-71

Petition for Deferrekk 2011 and 2012 Regulatory Fees due to Finanicia! Hardship.

Daniel F. Collier for WDIS-AM Discussion Radio, Inc. FEDERAL COMMUNICATIONS COMMISSIQN Washington, 0. C. 20554

OFFICE OF MANAGING DIRECTOR March S, 2013

Thomas Jones, Esq. Willkie Farr & Gallagher 1875 K Street, NW Washington, DC 20006

Re: W~ver and defetral.of.Application Fees (47 C.F.R. § 1.1119(a)&(c})··!:~··. Licensees/Applicants: FiberTower-Corp., Debtor­ in-Possession (FiberTower DJP), et al. · Fee: Application Fees (ULS File Nos. 000535414 and 0005611101) Date Request Filed: Aug 16, 2012

, _ 1 _ .••• L.FeeCpPf:r9lN..p~:,~R;~2-00014558 . · .. · .· · · App)ication FC(e AJD.ount:. $196,550.00 . .- ::•:> ;~ ;<•: . ·L:. ~... : . -· . * Dear Mr. Jones:

This letter responds to Licensees? ,r~~est ~ted August 1~ 2012 (Request) 1 for a waiver or deferral of application fees in the amount of $239,450.00, which was subs.equently changed to $196,500.00, on the grounds of financial hardship. Our records indicate tltat:the application fees have not been paid;; ~()wever, Licensees petitioned for deferral. 2·For the reasons_ discussed below, we grant Licens~~' Request. - · · \. . ; . .f· !:_··:_.:! . Licensees assert that on July 17, 2012, FiberTowerCorporation .and certain subsidiaries, including FiberTower Spectrum Holdings LL~ (FTSH) an4.1F:~~~';J;~~~r N:etw9rk.Services Corp. (FTNS) filed voluntary petitions for Chafter 11-B~ptcy.prat~c\io~ in the U.S. Bankruptcy Court for the Northern District of Texas. The~;:.the .. ~~c;qq~lQD.tity~ ~~iberTower.DIP electronically fil[ed] Form 603 applications.,•. -~. ~'t~eelc..th~·pq~~~i,qg.'$i90~~o the assignment ... of the company's FCC licenses fro~.~h ~i9erCtpw~;~!Y·;!.o $at. entity as debtor in possession.'.4 Licensees supplemented. its Request-~th the FCCULS File Numbers (0005611101) and a list of applications for ~~~~nt. 5 Th~ ~e¢¢ tota1:9f:!he fees is $196,550.00. Licensees assert that the waiver~ of the appl,ic~on~e~~W,Qul

,-

I Letter from Thomas Jones, Esq., Willkie Fm & Gallagher, 1875 K s~ trn'. \yasbington, DC 20006, to David Robbins, Managing Director, FCC, 445 12111 St., SW, Wasbin~on, DC 20SS4{tiled Aug. 16._2012) (Request) . . 2 47 C.F.R. § l.lll9{c);. (Requ~ts for. deferral. of a fe_e_paymem for. fin~cial-~dibiP~ J?&:aecompanied by ~upporting.docume~o~)~,:·., !·;:.: !:~ j1,:· 'lilt .... ;: ..."::·:~: .. : . . · .• , ·.-,.,. ,,:;I.::,:,:!J!J:.;:~.;'!l.;.; ·;.: . :. . . · S~e.Request, Exhibitl. (~c S~JJ, ..S .. ~.~:~up:, No~ffi10J;)!~Wfif:9f:T~~ (t~s), ~ankruptcy .. Petition#: 12-44029.:.d.Inlll (filed: July 17; 2012); United States Banlcnip~Y.(;ou~.N'ortlie~ Dtstrict of Texas, Vobmtary Petition in re FiberTower Coip., with exhibitS;· dated 7/17/2012:).. rt(cr-:. !:;( '= '':·•"'· ~.;,~•i'-:; -,; 1~ · · 4 Request at L · · . . ' · . ·- · 5Email from Matthew Jones, Esq., Willkie Farr & Gallagher LLP, 1875 KStreet, NW, Washington, DC to Ann Monahan, FCC (Feb~28, 201~) . ,_. , ;,: ·, : ;. i .. , .... ' .. ,..-. , : ...... ' ..,.,. '· . "•, ·. ,:~•. ,.'1. ,·"• . ·~ .. : <: ~,;, .'!,, I 1(jt.~.~~~:••".-•. "~;uf: ,:..'~·/,l"'::,l•}!~'--~,.~.-· t ..,. :1(1,, •>

~ ' . . . t ~ I • • • ·, ·'.. • r , •••· ·1 WILLKIE FARR &GALLAGHER 1875 K Street, NW Washington, DC 20006

Tel: 202 303 1000 Fax: 202 303 2000

August 16, 2012

VIA HAND DELIVERY, EMAIL, AND ULS

Mr. David Robbins, Managing Director Office of the Managing Director Federal Communications Commission 445 12th Street SW, Room 1A625 Washington, DC 20554

Re: FiberTower Corporation, Debtor-in-Possession and various subsidiaries as debtors in possession; Applications for involuntary, proforma assignment ofwireless licenses; File Nos. 0005353411, 0005353414; Request for Fee Waiver and Deferral

Dear Mr. Robbins:

FiberTower Corporation, Debtor-in-Possession ("FiberTower DIP") hereby requests that the Commission waive the fee payment requirement in connection with applications for consent to assign various wireless licenses held by certain of its subsidiaries to those subsidiaries as debtors in possession. FiberTower DIP further requests that the Commission defer paymentofthe applicable fees pending resolution of this waiver request.

On July 17,2012, FiberTower Corporation and certain of its subsidiaries, including its wireless-licensee subsidiaries, FiberTower Spectrum Holdings LLC and FiberTower Network Services Corp., filed voluntary petitions under Chapter 11 ofthe United States Bankruptcy Code with the United States Bankruptcy Court for the Northern District of Texas. The voluntary petitions filed with the Bankruptcy Court are attached hereto. Concurrent with the filing of this fee waiver and deferral request, FiberTower DIP is electronically filing Form 603 applications with the Wireless Telecommunications Bureau to seek the Commission's consent to the assignment, as a result of the company's Chapter 11 bankruptcy filing, of the company's FCC licenses from each FiberTower entity to that entity as debtor in possession. The filing fees for these applications total $239,450.00.

Pursuant to Section 1.1119(a) of the Commission's rules, the Commission may waive or defer filing fees in specific instances where good cause is shown and where waiver or deferral of the fees would promote the public interest. This waiver and deferral request meets that standard. FiberTower DIP, as a debtor in possession in bankruptcy, has limited funds available for non-operational purposes and company management has a duty to safeguard the company's assets for the benefit of its

NEW YORK WASHINGTON, DC PARIS LONDON MILAN ROME FRANKFURT Mr. David Robbins Managing Director Page2 creditors. 1 The payment of FCC filing fees (even if those funds were ultimately returned after grant of a waiver) would further deplete the assets in the estate available to creditors and for the reorganized company's operations. Further, the assignment applications are merely pro forma in nature and require little processing by Commission staff.

The Commission has recently granted requests for waiver and deferral of fees under similar circumstances. For example, Xanadoo, LLC Debtor-in-Possession was granted a deferral and waiver of its application fees for the pro forma assignment of its microwave authorizations in connection with its entry into bankruptcy. 2

Therefore, FiberTower Corp. asserts that there is good cause to grant this request for waiver and deferral of its application fees and that such waiver and deferral is in the public interest.

Should you have any questions, please contact the undersigned.

Sincerely,

ower Corp.,

Enclosures

See Implementation ofSection 9 ofthe Communications Act, Memorandum Opinion and Order, 10 FCC Red. 12759, ~ 14 (1995) ("Evidence ofbankruptcy or receivership is sufficient to establish financial hardship [for good cause to waive of regulatory fees].").

2 See Letter from Mark Stephens, Chief Financial Officer, FCC, to Mary N. O'Connor, Counsel for Xanadoo, LLC Debtor-In-Possession (Aug. 3, 2011) (granting Xanadoo, LLC Debtor-In­ Possession's fee waiver and deferral request); Fee Decisions ofthe Managing Director Available to the Public, Public Notice, DA 12-98 (rel. Jan. 27, 2012). ...

FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. 20554 MAR 2 7 2013 OFFICE OF MANAGING DIRECTOR

Ms. Jayne Simpson JF Broadcasting, LLC Post Office Box 9609 Rapid City, SD 57709

Re: Deferral Request (Financial Hardship 47 C.F.R. §§ 1.1164, 1.1166(c)) Licensee/Applicant: JF Broadcasting, LLC Stations: KWSD, KAUN-LP, and KCWS-LP Fee: Fiscal Year (FY) 2012 Regulatory Fees Date Request Filed: Sep. 6, 2012 Fee Control No.: RROG-12-00014649 Regulatory Fee (FY 2012): $4,195.00

Dear Ms. Simpson:

This responds to Licensee's Request1 for "deferment of payment of Regulatory Fe[es] due to fmancial hardship." Licensee did not include a request to waive the above-referenced fees, which, according to our records, remain unpaid. Because the period of deferral has run, the fees are due and must be received within 30 days of the date of this letter.

Our rule at 4 7 C.F .R. § 1.1166 provides, in part, that "[d]eferrals of fees, if granted, will be for a designated period of time not to exceed six months" and that "a petition to defer payment due to financial hardship" must be " supported by documentation of the financial hardship."

Licensee's submitted an email with an electronic attachment including the Request and two one-page documents labeled Internal Revenue Service (IRS) Forms 1065 for calendar year 2010 and 2011 (enclosures). As we discuss, below, these enclosures are incomplete and do not satisfy our requirement to establish fmancial hardship.

1 Email from Jayne Simpson [[email protected]] to ARINQUIRIES (Sep. 6, 2012) (Request) (Enclosures: (1) Letter from James F. Simpson, President/CEO, JF Broadcasting, LLC, PO Box 9609, Rapid City, SD 57709 to FCC, Attn: Revenue and Receivables Operation Group, 455 12th Street, NW, Washington, DC 20554 (Sep. 6, 2012) with 2 encl. (A) IRS Form 1065, U.S. Return of Partnership Income, 2010, and (B) IRS Form 1065, U.S. Return of Partnership Income, 20 11. In establishing a regulatory fee program, the Commission recognized that in certain instances, payment of a regulatory fee might impose an undue financial hardship upon a licensee. Such fees may be waived, reduced or deferred, but only upon a showing of good cause and a fmding that the public interest will be served thereby.2 The Commission has narrowly interpreted its waiver authority to require a showing of compelling and extraordinary circumstances that outweigh the public interest i:u recouping the Commission's regulatory costs.3 Fee relief may be granted based on asserted financial hardship, but only upon a documented showing that payment of the fee will adversely affect the licensee's ability to serve the public.4 "Mere allegations or documentation of financial loss, standing alone," do not suffice and "it [is] incumbent upon each regulatee to fully document its financial position and show that it lacks sufficient funds to pay the regulatory fee and to maintain its service to the public."5 In reviewing a showing of financial hardship, the Commission relies on a range offmancial documents including a licensee's balance sheet and profit and loss statement (audited, if available), a cash flow projection for the next twelve months (with an explanation of how calculated), a list of their officers and their individual compensation, together with a list of their highest paid employees, other than officers, and the amount of their compensation, or similar information. It is on this information that the Commission considers on a case-by-case basis whether the station lacks sufficient funds to pay the regulatory fee and maintain service to the public. 6 Thus, for example, even if a station loses money, any funds paid to principals and deductions for depreciation or amortization are considered funds available to pay the fees.

Licensee has the burden of demonstrating that a waiver or deferral would override the public interest, as determined by Congress, that the government should be reimbursed for the Commission's regulatory action.7 To carry its burden, Licensee must present compelling and extraordinary circumstances that outweigh the public interest in recouping the Commission's regulatory costs.8 For the following reasons, we fmd that Licensee did not meet its obligation.

Licensee provided only the first page of the multi-page partnership income tax return, and thereby furnished incomplete copies of the IRS Form 1065 for tax years 2010 and 2011.9 Plainly, each form is incomplete without Schedule B (other information), Schedule K (Partners distributive share items), Deductions (Form 4562), Schedule L, Schedule M-1, or Schedule M-2. In addition, Licensee claimed certain amounts as deductions, but failed to elucidate the specific deductions for taxes and licenses, interest (described at the missing "statement 1"), depreciation (reported on Form 4562), and other deductions (described on "statement 2"). Finally, Licensee reported total assets in 2011 of$293,503, but failed to explain the valuation of those assets in the

2 47 U.S.C. §159(d); 47 C.F.R. § 1.1166. See also Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for Fiscal Year 1994, Report and Order, 9 FCC Red 5333, 5344 (1994), recon. denied, 10 FCC Red 12759 (1995). 3 9 FCC Red at 5344 1 29. 4 10 FCC Red at 12761-621 13. s !d. 6 !d. 7 !d. 8 See Bartholdi Cable Co., Inc. v. FCC, 114 F.3d 274, 280 (D.C. Cir. 1997) ("petitioner ... has the 'burden of clarifying its position' before the agency."). See also 47 C.F.R. § 1.16 (An applicant is responsible for the continuing accuracy and completeness of information furnished.). 9 Request, Encls A & B.

2 context of its bare assertion of financial hardship. Instead of the inconclusive information included with the Request, Licensee should have provided complete tax returns and relevant pertinent complete financial information, all of which are necessary to support a request to defer payment of the fees based on asserted financial hardship.

Licensee did not request a waiver of the Commission's rules, so we need not reach a decision on waiver; however, we note that a waiver is appropriate only if special circumstances warrant deviation from the general rule, and such deviation will serve the public interest. 10 In ·demonstrating whether a waiver is warranted, the burden of proof rests with the petitioner.11 Licensee asserted that its stations suffered fmancial hardship, but failed to present relevant and complete evidence to support fmancial hardship that meets the Commission's standard. 12

The period for deferral has run, thus payment of$4,195.00, Licensee's FY 2012 regulatory fees, is now due, and that amount must be received, together with a Form 159 (copy enclosed), within 30 days of the date of this letter. If Licensee's full payment of that amount is not received by that date, any unpaid portion of the debt will be delinquent from the date of this letter, 13 and on such amount we will assess the statutory penalty.of25% ofthe unpaid fee14 and other charges required by law, including interest, penalties, and charges of collection.15 If you have any questions concerning this letter, please contact the Revenue and Receivables Operations Group at (202) 418-1995.

~~S~~~c6SteiL6~~el~y·~~~~r----=~-::>~----- ___:::::==-- ChiefFinancial Officer

Enclosure

10 Northeast Cellular Telephone Co. v. FCC, 897 P.2d 1164, 1166 (D.C. Cir. 1990); 47 C.P.R. § 1.3. 11 Tucson Radio, Inc. v. FCC, 452 F.2d 1380, 1382 (D.C. Cir. 1971). . 12 47 C.P.R. § 1.1166; 10 FCC Red at 12761-62, 13 .. 13 If delinquent in paying any portion of the fee, Licensee will be subject to the provisions of 47 C.F.R. § 1.1910. 14 47 U.S.C. § 159(c)(l). See 9 FCC Red at 5346,, 35 ("the petitioner will have 30 days to [pay the fee] in order to avoid the assessment of penalty charges and the invocation of any other available remedy. The filing of a petition for reconsideration will not toll this 30-day period."). 15 31 U.S.C. § 3717(e); 31 C.F.R. § 901.9; 47 C.F.R. § 1.1940.

3 FEDERAL COMMUNICATIONS COMMISSION Washington, D. C. 20554 MAR 2 7 2013 OFFICE OF MANAGING DIRECTOR

Jennifer A. Kerry President, CEO KGY, Inc. 1700 Marine Drive, NE Olympia, WA 98507

Re: Waiver Request (Financial Hardship; 47 CFR 1.1166(c)) Licensee/Applicant: KGY, Inc. Stations: KGY(AM) and KGY(FM), and Auxiliaries: KOL728, KPJ440, KPK463, WME 986 Fee: Fiscal Year (FY) 2012 Regulatory Fees Date Filed: Sep. 4, 2012 Fee Control No.: RROG-12-00014679 Regulatory Fees and Penalties (FY 2012) Due: $6,143.75

Dear Ms. Kerry:

This responds to Licensee's Request, 1 for waiver of the required Fiscal Year (FY) 2012 regulatory fees due for Stations KGY(AM) and KGY(FM) and Auxiliaries KOL728, KPJ440, KPK463, and WME986. As discussed below, we dismiss Licensee's Request because it is incomplete2 and it fails to conform to our standards. Licensee became a delinquent debtor when it did not pay the required fees, and as a result, we must dismiss the Request. 3 In the alternative, we deny the Request because Licensee fails to meet its burden of establishing both financial . hardship and extraordinary and compelling circumstances that outweigh the public interest in

1 Letter from Jennifer A. Kerry, President/CEO, KGY, Inc. 1700 Marine Drive, NE, Olympia, WA Q8507 to Mr. David Robbins, Managing Director, Federal Communications Commission, 445 Twelfth St., SW, Washington, DC 20554 (Sep. 10, 2012) (Request), with 2 enclosures, (a) In the Matter of Estate of Barbara 0. Kerry, Deceased, Superior Ct of Washington, Thurston Cnty, Letters Testamentary, Case No.: 06-4-00101-4 (Feb. 22, 2011), In the Matter of Estate of Barbara 0. Kerry, Deceased, Superior Ct of Washington, Thurston Cnty, Order Appointing Successor Personal Representative (Feb. 17, ·2011 ). 2 47 C.P.R. § 1.1166(c)("Waiver requests that do not include the required fees or forms will be dismissed unless accompanied by a petition to defer payment due to financial hardship, supported by documentation of the financial hardship."). 3 47 C.F.R. §§ 1.1164(e)("Any pending or subsequently filed application ... will be dismissed if that party is determined to be delinquent in paying a standard regulatory fee .... "), 1.1910; In The Matter Of Assessment And Collection OfRegulatory Fees For Fiscal Year 2010, Report and Order, 25 FCC Red 9278,9297-98154 (2010) ("A late payment penalty of25 percent of the unpaid amount of the required regulatory fee will be assessed on the first day following the deadline date for filing of these fees. Failure to pay regulatory fees and/or any late penalty will subjectregulatees to sanctions, including those set forth in section 1.1910 of the Commission's Rules and in-the Debt Collection Improvement Act of 1996 ('DCIA')"). recouping the Commission's regulatory costs.4 Accordingly, payment of$6,143.75 for the regulatory fees and accrued charges are due. To avoid accrual of additional charges, payment must be received within 30 days of the date of this letter.

Licensee asserts that it "is in a very precarious fmancial position; close to the edge of filing for bankruptcy protection. "5 Licensee also asserts that the station has "posted losses of about, $50,000.00, annually[, which after 2006] increased to, $100,000.00, annually[, and] the company became indebted to creditors for about $225,000[, and that the station president] 6 personally loaned, $25,000.00." · Licensee's supporting documentation consists of the court orders ~ppointing Ms. Kerry as the personal representative of the estate and accepting the resignation of the prior personal representative. 7 These documents do not support either a petition for deferral of payment or a request for a waiver of the fee.

The consequences for failing to follow our rule are serious. Because Licensee's petition for deferral8 is incomflete and it 'does not conform to our standards, and qecause Licensee has not yet paid the fees, the amounts owed are delinquent. Thus, the 25% late payment penalty required by 47 U.S.C. § 159(c)(l) applies to each unpaid fee. Furthermore, because of the. delinquency, Licensee is subject to sanctions, including those set forth at 47 U.S.C. § 159(c)(2),10 47 C.F.R. §§ 1.1164, 1.1166, and 1.1910 (the Commission's red light rule), and the Debt Collection Improvement Act of 1996 (DCIA). 11 Under the law, we are required to dismiss the Request. In the alternative, we deny the Request on separate grounds.

In establishing a regulatory fee program, the Commission recognized that in certain instances, payment of a regulatory fee may impose an undue financial hardship upon a licensee, and it may be waived, reduced, or deferred upon a showing of good cause and a finding that the public interest will be served thereby. 12 The Commission has narrowly interpreted its waiver authority to require a showing of extraordinary and compelling circumstances that outweigh the

4 Implementation of Section 9 of the Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Red 5333, 5344,, 29 (1994), recon. denied, 10 FCC Red 12759 (1995); In The Matter of Phoenix Broadcasting, Inc. Stations KSWD and KPFN Seward, Alaska, Memorandum Opinion and Order, 18 FCC Red 26464, 26446, n 5-6 (2003) ("Fee relief may be granted based on asserted fmancial hardship, but only upon a documented showing that payment of the fee will adversely impact the licensee's ability to serve the public .... [I]n the absence of a documented showing of insufficient funds to pay the regulatory fees, [applicant] has not made a compelling showing that overrides the public interest in the Commission's recouping the costs of its regulatozy activities."). 5 Request at 1. 6 Id. 7 Request, encl. 8 47 C.P.R.§ 1.1166(c). 9 FY 2012 Regulatozy Fees Due No Later Than September 13, 2012, Eastern Time (ET), Public Notice, DA 12-1295 (Aug. 13, 2012). 10 47 U.S.C. § 159(c)(2)("The Commission may dismiss· any application or other filing for failure to pay in a timely manner any fee or penalty under this section."). 11 Public Law 104-134, llO Stat 1321, 1358 (Apr. 26, 1996). 12 47 U.S.C. §159(d); 47 C.F.R. § 1.1166. See also Implementation of Section 9 ofthe Communications Act, Assessment and Collection of Regulatory Fees for the 1994 Fiscal Year, Report and Order, 9 FCC Red 5333, 5344 (1994), recon. denied, 10 FCC Red 12759 (1995).

2