Federal Communications Commission DA 15-355
Before the
Federal Communications Commission
Washington, D.C. 20554
In re Applications
For Renewal of License for Station KTRT(FM),
Winthrop, Washington
NAL/Acct. No. MB-20 1541410024
FRN: 0011339116
Facility I.D. No. 164605
File No. BRH-20131118131G
and
For Consent to Assignment of License
From Tin Can Communications, LLC, Assignor,
To KTRT Radio, Inc., Assignee
File No. BALH-20131021A1E
ORDER
Adopted: March 31, 2015 Released: April 1, 2015
By the Chief, Media Bureau:
1. In this Order, we adopt the attached Consent Decree entered into by the Media Bureau
("Bureau") and KTRT Radio, Inc. ("KTRT Radio") with respect to Station KTRT(FM), Winthrop,
Washington ("Station"). The Consent Decree resolves issues arising from the Bureau's review of the
captioned applications (the "Applications") concerning an admitted unauthorized assignment of the
Station.
2. The Consent Decree stipulates that KTRT Radio violated Section 310(d) of the
Communications Act of 1934, as amended,' and Section 73354Ø2 of the Commission's Rules ("Rules"),
and provides, among other things, that it will make a two thousand five hundred dollar ($2,500) civil
penalty payment to the United States Treasury. A copy of the Consent Decree is attached hereto and
incorporated by reference.
3. After reviewing the tenns of the Consent Decree, we find that the public interest will be
served by its approval and by terminating all pending proceedings relating to the Bureau's consideration
of potential violations of the Rules disclosed in the Applications.
4. Based on the record before us, we conclude that nothing in that record creates a
substantial or material question of fact whether KTRT Radio possesses the basic qualifications, including
those relating to character, to be a Commission licensee.
5. ACCORDiNGLY, IT IS ORDERED that, pursuant to Section 4(i) of the
Communications Act of 1934, as amended,3 and by the authority delegated by Sections 0.61 and 0.283 of
'47 U.S.C. § 30 1(d).
2 C.F.R. § 73.3540.
47 U.S.C. § 154(i).
Federal Communications Commission DA 15-355
the Rules,4 the Consent Decree attached hereto IS ADOPTED.
6. IT IS FURTHER ORDERED that the investigation by the Media Bureau of the matters
noted above IS TERMINATED.
7. IT IS FURTHER ORDERED that copies of this Order shall be sent, by First Class and
Certified Mail-Return Receipt Requested, to KTRT Radio, Inc., P.O. Box 3008, Winthrop, WA 98862,
and to its counsel, Todd A. Steiner, Esq., Steiner Law Offices, PLC, P.O. Box 751, Woodstock, VA
22664.
FEDERAL COMMUNICATIONS COMMISSION
William T. Lake
Chief, Media Bureau
447 C.F.R. § 0.61, 0.283.
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Federal Communications Commission DA 15-355
CONSENT DECREE
Introduction
1. This Consent Decree for Station KTRT(FM), Winthrop, Washington, is entered into by
the Media Bureau of the Federal Communications Commission and KTRT Radio, Inc., by their
respective authorized representatives, for the purpose of resolving certain issues regarding
compliance with Section 301(d) of the Communications Act of 1934, as amended, and Section
73.3540 of the Commission's Rules, that have arisen in the Media Bureau's review of the
captioned applications for Station KTRT(FM), Winthrop, Washington.
II. Definitions
2. For the purposes of this Consent Decree, the following definitions shall apply:
(a) "Act" means the Communications Act of 1934, as amended, 47 U.S.C. §15l et seq.;
(b) "Assignment Application" means the FCC Form 314 for assignment of license of the
Station (File No. BALH-20131021AIE);
(c) "Bureau" means the Media Bureau of the Federal Communications Commission;
(d) "Commission" or "FCC" means the Federal Communications Commission;
(e) "Compliance Plan" means the compliance plan provided in the Appendix hereto;
(0 "Effective Date" means the date on which the Bureau releases the Order;
(g) "Investigation" means the Bureau's investigation of information contained in the
Assignment Application;
(h) "KTRT Radio" means KTRT Radio, Inc., the assignee and unapproved licensee of
the Station;
(i) "Order" means an order of the Bureau adopting this Consent Decree;
) "Parties" means KTRT Radio and the Bureau;
(k) "Renewal Application" means the FCC Form 303-S application for renewal of
license for the Station (File No. BRH-20 13111 8BIG);
(1) "Rules" means the Commission's regulations set forth in Title 47 of the Code of
Federal Regulations;
(m) "Station" means Station KTRT(FM), Winthrop, Washington (Facility ID No.
164605); and
(n) "TCC" means Tin Can Communications, LLC, the approved licensee and assignor of
the Station.
Federal Communications Commission DA 15-355
HI. Background
3. On August 26, 2005, the Commission granted TCC a license for the Station. On June 2,
2009, TCC engaged in a corporate transaction that resulted in the Station's license being held by KTRT
Radio rather than by TCC, without prior Commission consent.5 On October 21, 2013, the Assignment
Application disclosing the transaction was filed. According to Don R. Ashford, President of both TCC
and KTRT, Inc., the unauthorized transaction was due to his lack of knowledge of the Rules.6 In
preparation for filing the Station's Renewal Application, communications counsel infonned him that the
transaction violated the Act and the Rules due to the failure to seek and obtain Commission consent. Mr.
Ashford therefore filed the instant Assignment Application seeking Commission consent nunc pro tunc to
the assignment of license for the Station. On March 28, 2014, Mr. Ashford also submitted for the
Commission's consideration federal income tax records for the Station for the preceding four years (2009,
2010, 2011, and 2012); the returns revealed negative taxable income for each year.
4. Because of the issues identified in the Bureau's Investigation, the Parties have agreed to
enter into this Consent Decree to which KTRT Radio and the Bureau intend to be legally bound.
IV. Agreement
5. The Parties acknowledge that any proceeding that might result from the Investigation will
be time-consuming and will require the expenditure of public and private resources. In order to conserve
such resources and to promote future compliance by KTRT Radio with the Act and the Rules, the Parties
are entering into this Consent Decree in consideration of the mutual commitments made herein.
6. The Parties agree to be legally bound by the terms and conditions of this Consent Decree.
KTRT Radio and the Bureau each represents and warrants that its signatory is duly authorized to enter
into this Consent Decree on its behalf. KTRT Radio agrees that the Commission has jurisdiction over the
matters contained in this Consent Decree and the authority to enter and adopt this Consent Decree.
7. The Parties agree and acknowledge that this Consent Decree shall constitute a fmal
settlement between them concerning the Bureau's Investigation of the matters discussed herein. The
Bureau fmds that its Investigation raises no substantial and material questions of fact as to whether KTRT
Radio possesses the basic qualifications, including those relating to character, to be a Commission
licensee.
8. The Parties agree that this Consent Decree shall become effective on the Effective Date.
Upon the Effective Date, the Order and this Consent Decree shall have the same force and effect as any
other order of the Bureau. Any violation of the terms of this Consent Decree shall constitute a separate
violation of a Bureau order, entitling the Bureau or the Commission to exercise any rights and remedies
attendant to the enforcement of a Bureau order.
See Assignment Application, Exhibit 5. Specifically, TCC was 100% owned and controlled by RDR Partners,
which in turn was comprised of three general partners and co-managers: Don R. Ashford, Richard T. Mills, and
Ronald J. Lone. KTRT Radio is owned and controlled as follows (expressed as percentages of both voting rights
and equity): Don R. Ashford, Officer/Shareholder, 20.15%; Scott Rogers, Shareholder, 13.3%; Rick Dewbrey,
Shareholder, 13.3%; Rick LeDuc, Shareholder, 13.3%; Bruce Child, Shareholder, 13.3%; Paul Pinsky, Shareholder,
13.3%; and Laurel Canan, Shareholder, 13.3%.
6 See Don R. Ashford Letter, (undated), Assignment Application, Exhibit 1.
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Federal Communications Commission DA 15-355
9. As part of the Order, the Bureau shall terminate the Investigation. Additionally, the
Bureau shall grant the Assignment Application and the Renewal Application after the Effective Date,
provided that the following conditions have been met: (1) the civil penalty payment referenced in
Paragraph 12 below has been fully and timely satisfied; and (2) there are no issues that would preclude
grant of the Assignment Application and/or the Renewal Application. In the event that there are issues
that would preclude the grant of the Assignment Application and/or Renewal Application, the impacted
application will remain pending.
10. From and after the Effective Date, the Bureau shall not, either on its own motion or in
response to third-party objection, initiate any inquiries, investigations, forfeiture proceedings, hearings, or
other sanctions or actions against KTRT Radio, based in whole or in part on the Investigation. The
Bureau agrees that, in the absence of material new evidence, it will not, on its own motion, initiate or
recommend to the Commission, any new proceeding, formal or informal, regarding the matters discussed
in this Consent Decree, with regard to any violations of the Act, the Rules, or Commission policy, that
occurred prior to the Effective Date. The Bureau further agrees that, in the absence of material new
evidence, it will not use the facts developed in the Investigation prior to the Effective Date to initiate on
its own motion, or recommend to the Conmiission, any proceeding, formal or informal, or take any action
on its own motion against KTRT Radio with respect to its basic qualifications to own and operate the
Station. Nothing in this Consent Decree shall prevent the Bureau from instituting, or recommending to
the Commission, new investigations or enforcement proceedings against KTRT Radio, in the event of any
alleged future misconduct, for violation of this Consent Decree, or for violation of the Act or the Rules,
consistent with the provisions of this Consent Decree.
11. KTRT Radio stipulates that it violated Section 310(d) of the Act and Section 73.3540 of
the Rules by assignment of the Station license without prior Commission authorization.
12. The Bureau has reviewed the Station's financial showings as set forth in its federal
income tax records for the years 2009-2012. Based on these records, which demonstrate the Station's
limited fmancial resources, the Bureau has agreed to accept and KTRT Radio has agreed to make a civil
penalty payment to the United States Treasury in the amount of Two Thousand Five Hundred Dollars
($2,500) within thirty (30) calendar days after the Effective Date. KTRT Radio will also send electronic
notification of payment to Kim Varner at Kim.Varner@fcc.gov and Penelope Dade at
Penelope.Dade@fcc.gov on the date said payment is made. Such payment will be made, without further
protest or recourse to a trial de novo, by a check or similar instrument, wire transfer or credit card and
must include the Account Number and FRN referenced in the caption to the Order. Regardless of the
form of payment, a completed FCC Form 159 (Remittance Advice) must be submitted. When
completing the FCC Form 159, enter the Account Number in block number 23A (call sign/other ID)
and enter the letters "FORF" in block number 24A (payment type code). Below are additional
instructions that should be followed based on the form of payment selected:
• Payment by check or money order must be made payable to the order of the
Federal Communications Commission. Such payments (along with the completed Form
159) must be mailed to Federal Communications Commission, P.O. Box 979088, St.
Louis, MO 63 197-9000, or sent via overnight mail to U.S. Bank - Government Lockbox
#979088, SL-MO-C2- GL, 1005 Convention Plaza, St. Louis, MO 63101.
• Payment by wire transfer must be made to ABA Number 021030004, receiving bank
TREAS/NYC, and Account Number 27000001. To complete the wire transfer and ensure
appropriate crediting of the wired funds, a completed Form 159 must be faxed to U.S.
Bank at (314) 418-4232 on the same business day the wire transfer is initiated.
Federal Communications Commission DA 15-355
Payment by credit card must be made by providing the required credit card information
on FCC Form 159 and signing and dating the Form 159 to authorize the credit card
payment. The completed Form 159 must then be mailed to Federal Communications
Commission, P.O. Box 979088, St. Louis, MO 63 197-9000, or sent via overnight mail to
U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza,
St. Louis, MO 63101.
13. KTRT Radio represents that, in addition to existing policies, it has adopted, and is
currently in the process of implementing, and agrees to abide by the Compliance Plan for the purpose of
preventing future violations of the Act and of the Rules. A summary of the plan is set forth in the
Appendix. KTRT Radio agrees to the extent that it has not already done so, to implement the Compliance
Plan at the Station no later than thirty (30) days after the Effective Date and to keep such Compliance
Plan in effect for three (3) years after the Effective Date.
14. KTRT Radio agrees that it is required to comply with each individual condition of this
Consent Decree. Each specific condition is a separate condition of the Consent Decree as approved. To
the extent that KTRT Radio fails to satisfy any condition, in the absence of Commission alteration of the
condition, it will be deemed noncompliant and may be subject to possible enforcement action, including,
but not limited to, designation of the matter for hearing, letters of admonishment, or forfeitures.
15. The Consent Decree will be binding on the Station's successors-in-interest and assigns, if
any. Additionally, any future application filed within three (3) years of the Effective Date to assign or
transfer control of the Station will include a statement executed by an authorized representative of the
proposed assignee or transferee consenting to assumption of the responsibilities and duties set forth in this
Consent Decree with regard to the Station.
16. KTRT Radio waives any and all rights that it may have to seek administrative or judicial
reconsideration, review, appeal or stay, or to otherwise challenge or contest the validity of this Consent
Decree and the Order, provided that the Order adopts the Consent Decree without change, addition or
modification.
17. KTRT Radio waives any claims that it may otherwise have under the Equal Access to
Justice Act, 5 U.S.C. § 504 and 47 C.F.R. § 1.1501 et seq., relating to the matters discussed in this
Consent Decree.
18. If any Party (or the United States on behalf of the FCC) brings a judicial action to enforce
the terms of the Order, none of the Parties shall contest the continuing validity of the Consent Decree or
the Order. KTRT Radio and the Bureau further agree that they will waive any statutory right to a trial de
novo with respect to any matter upon which the Order is based (provided in each case that the Order is
limited to adopting the Consent Decree without change, addition, or modification), and that they will
consent to a judgment incorporating the terms of this Consent Decree.
19. In the event that this Consent Decree is rendered invalid by any court of competent
jurisdiction, this Consent Decree shall become null and void and may not be used in any manner in any
legal proceeding.
20. This Consent Decree may be signed in counterparts and/or by telecopy and, when so
executed, the counterparts, taken together, will constitute a legally binding and enforceable instrument
whether executed by telecopy or by original signatures.
Federal Communications Commission DA 15-355
MEDIA BUREAU
FEDERAL COMMUNICATIONS COMMISSION
By:
William T. Lake, Chief
Date:
KTRT RADIO, INC.
By:
Don R. Ashford, President
Date:
)flD1* 1LJRW
Federal Communications Commission DA 15-355
APPENDIX
COMPLIANCE PLAN FOR STATION KTRT(FM)
KTRT Radio, or its successor-in-interest ("Licensee"), will institute the following procedures with regard
to Station KTRT(FM) to ensure compliance with the Commission's Rules and the Communications Act
of 1934, as amended. Unless otherwise provided, all terms defmed in the Consent Decree apply to this
Compliance Plan.
1. Within 30 days from the Effective Date of this Compliance Plan, Licensee will conduct
training for all Station employees and management on compliance with FCC Rules applicable to Station
operations. It will designate its Station Manager as a Compliance Officer responsible for responding to
Station employee questions and consulting with outside counsel familiar with communications law
regarding compliance matters. The Station will conduct refresher training for Station employees and
management at least once every twelve (12) months, and will train any new Station employee within five
(5) business days of commencement of his or her duties at the Station.
2. Licensee shall engage communications counsel on an ongoing basis to provide guidance
to the Station on Commission compliance issues, to provide regular updates and notices on developments
in communications law applicable to the Station and the Station's operations, and to review the Station's
applications and reports prior to filing with the Commission. In regard to the last matter, Licensee
recognizes and acknowledges that any and all information provided to the Commission must completely
and candidly set forth all relevant facts and circumstances, regardless of whether such submission may
disclose a violation of the Act or Rules.
3. Licensee shall maintain control of its programming, personnel, and fmances and shall for
a period of three years annually submit a sworn affidavit or declaration signed by the President of
Licensee, certif'ing that, since the commencement of this Compliance Plan or the filing of the last such
report, if any, Licensee has maintained such control and is in compliance with the Consent Decree. In the
event that the Licensee is unable to so certify, it will disclose the reasons therefore and indicate what steps
it has taken to render its operation of the Station in compliance with the Act, the Rules, and Commission
Policy. The affidavit or declaration is due on or before December 31 (but no earlier than December 1) of
each year and shall be served on Peter H. Doyle, Chief, Audio Division, Media Bureau, Federal
Communications Commission and e-mailed to him at Peter.Doyle@FCC.Gov.
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