It’s not even $1,000 in value, but it is nevertheless a fine. It’s been issued to the owner of a South Dakota low-power TV station as a penalty for unauthorized operation and its tardiness in filing a license to cover for the station serving Sioux Falls.
And, it marks a sizable reduction from a January proposed fine issued by Barbara Kreisman, a bit of a victory for the licensee.
The forfeiture order, released June 1 by the Commission’s Video Division of the Media Bureau, sees Chuck Poppen-controlled Central Plains Media through his G.I.G. Inc. being asked to pay $750 to the FCC for being late in filing his license to cover
application for KCPO-LP in Sioux Falls, S.D. That tardiness meant KCPO engaged in unauthorized operations.
With the station’s license renewal at stake, Kreisman, the FCC Video Division Chief, agreed to renew KCPO’s license for two years — but only after G.I.G. wrote a check for $6,500 to resolve its transgressions.
As is the case with every proposed fine, those asked to pay it can seek a reduction or cancellation of the fine if they are fiscally unable to pay it.
On March 7, Poppen did just that, and filed a response to the FCC’s NALF in which it did not dispute that it had violated FCC Rules. But, he claimed an inability to pay the $6,500 fine and submitted FY 2020, 2021 and 2022 tax returns to boost his claim.
How did Kreisman respond? “While these returns show the station did have gross revenues, we find the forfeiture in this case would constitute an excessive percentage of the station’s gross revenue.”
She then explained that, in considering claims of financial hardship, the range of forfeitures that the Commission has deemed reasonable generally average about five percent of the violator’s gross annual income and have not exceeded eight percent, although a forfeiture equal to five percent of gross revenues has been found to be excessive where a licensee operated at a significant loss.
Inability to pay is just one factor, however, as Kreisman noted that G.I.G.’s violations occurred over an extended period of time; unauthorized operation lasted more than two years, she said. A pattern of failing to fully reply to Video Division inquiries also played a role in the decision-making process. That latter point was assailed by Kreisman, explaining that it resulted in “an extensive delay” in resolving the investigation, creating an undue burden on Division staff and resources.
Thus, the $750 fine — reduced from $6,500 — was deemed appropriate.
