Patrick Sullivan (Assignor) and Lake Broadcasting, Inc. (Assignee), Application for Consent To Assignment of License of FM Translator Station W238CE, Montgomery, Alabama, 32733-32736 [2014-13266]

Download as PDF Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices II. Background wreier-aviles on DSK5TPTVN1PROD with NOTICES A. What action is the agency taking? EPA is requesting comments on a proposed stipulated injunction that, among other things, would reinstitute streamside no-spray buffer zones to protect endangered and threatened Pacific salmon and steelhead in California, Oregon, and Washington. The stipulated injunction would settle litigation brought against EPA by NCAP and others in U.S. District Court in Washington State. Like the original buffer zones, the limitations in this proposed stipulated injunction would be part of a court order but would not be enforceable as labeling requirements under FIFRA. To view the interactive map displaying the areas where the buffer zones apply, go to https:// www.epa.gov/espp/litstatus/wtc/ uselimitation.htm. The no-spray buffer zones will apply to the pesticides carbaryl, chlorpyrifos, diazinon, malathion, and methomyl. These buffer zones would remain in place until EPA implements any necessary protections for Pacific salmon and steelhead based on reinitiated consultations with NMFS. EPA is reevaluating these pesticides in connection with its current FIFRA registration review process and the proposed stipulated injunction would reinstate the buffers in the interim. The no-spray buffers in the proposed stipulated injunction extend 300 feet from salmon supporting waters for aerial applications of the 5 pesticides and 60 feet for ground applications. These same buffers are currently in place for 1,3-dichloropropene (1,3–D or telone), bromoxynil, diflubenzuron, fenbutatin oxide, prometryn, propargite, and racemic metolachlor that are still subject to the original injunction issued in 2004 in WTC, et al. v. EPA. The buffers for those 7 pesticides will remain in place until the completion of EPA’s current Endangered Species Act (ESA) consultations with NMFS. EPA will evaluate all comments received during the 30-day public comment period to determine whether all or part of the proposed stipulated injunction warrants reconsideration or revision. B. What is the agency’s authority for taking this action? On November 29, 2010, NCAP and other environmental groups and fishing interests filed a lawsuit in the Federal District Court for the Western District of Washington alleging that EPA failed to comply with ESA sections 7 and 9 (16 U.S.C. 1536 and 1538) with regard to the effects of 6 EPA-registered pesticides (carbaryl, carbofuran, chlorpyrifos, VerDate Mar<15>2010 13:59 Jun 05, 2014 Jkt 232001 diazinon, malathion, and methomyl) on 28 Pacific salmonid species that are listed as endangered or threatened under ESA (NCAP, et al., v. EPA, C10– 01919 (W.D. Wash.)). Subsequent to the filing of the case, all carbofuran end-use product registrations were cancelled, effectively leaving only 5 pesticides at issue in the litigation. On February 21, 2013, in Dow Agrosciences LLC v. NMFS, 707 F.3d 462 (4th Cir. 2013), the U.S. Court of Appeals for the 4th Circuit vacated the NMFS biological opinion addressing chlorpyrifos, diazinon, and malathion. Following that ruling, the plaintiffs in the NCAP v. EPA litigation supplemented their original complaint to assert that in the absence of a valid biological opinion, EPA had failed to complete consultation on those 3 pesticides. In the fall of 2013, the intervenors, CropLife America and other pesticide industry and pesticide user groups, filed a motion to dismiss both that claim and a claim that EPA’s registration of the pesticides was in violation of the ‘‘take’’ provisions of ESA section 9. On January 28, 2014, Judge Zilly denied intervenors’ motion to dismiss these claims. Subsequent to that ruling, the parties filed a stipulated motion to stay the NCAP v. EPA litigation to allow the parties to discuss the potential for settlement. EPA and the plaintiffs have reached a proposed agreement that would reinstitute the nospray buffers originally established in the WTC v. EPA litigation, as explained in Unit II.A., during the period that EPA develops new biological evaluations for salmonid species (which will be completed in connection with the development of EPA’s national FIFRA registration reviews for these pesticides). These buffer zones would remain in place until EPA implements any necessary protections for Pacific salmon and steelhead based on reinitiated consultations with NMFS. The agreement is embodied in the proposed stipulated injunction that is being made available for review and comment through this notice. In separate litigation, NCAP v. NMFS, C07–1791 (W.D. Wash.), NMFS has agreed to complete any consultation EPA reinitiates on chlorpyrifos, diazinon, and malathion by December 2017, and any consultation EPA reinitiates on carbaryl and methomyl by December 2018. These dates are intended to correspond with EPA’s FIFRA registration review schedule for these pesticides. The stipulated injunction would also require EPA to provide notice of the reinstitution of the no-spray buffers zones to numerous groups, including PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 32733 certified applicators, State and local governments, Federal agencies, user groups, extension services, and land grant universities in affected portions of California, Oregon, and Washington. It also requires EPA to provide certain information to the public and pesticide users through the EPA Web site, including maps that highlight the stream reaches where the buffer zones apply. With this document, EPA is opening a 30-day comment period on the proposed stipulated injunction. EPA will review any comments received during the 30-day public comment period to determine whether all or part of the proposed stipulated injunction warrants reconsideration or revision. If EPA determines that any part of the proposed stipulated injunction merits reconsideration or revision, EPA will contact the plaintiffs concerning this matter and the proposed stipulated injunction will not be submitted to the Court until EPA and plaintiffs reach agreement on any such changes. If EPA determines that the proposed stipulated injunction does not need to be reconsidered or revised, the proposed stipulated injunction will be submitted to the Court and shall become effective upon ratification by the Court. Once the stipulated injunction is ratified by the Court, EPA will post on its Web site at https://www.epa.gov/pesticides a notice indicating the stipulated injunction has been so entered. List of Subjects Environmental protection, Endangered species. Dated: June 2, 2014. Jack Housenger, Director, Office of Pesticide Programs. [FR Doc. 2014–13212 Filed 6–3–14; 4:15 pm] BILLING CODE 6560–50–P FEDERAL COMMUNICATIONS COMMISSION [MB Docket No. 14–82; DA 14–703] Patrick Sullivan (Assignor) and Lake Broadcasting, Inc. (Assignee), Application for Consent To Assignment of License of FM Translator Station W238CE, Montgomery, Alabama Federal Communications Commission. ACTION: Notice. AGENCY: This document commences a hearing to determine whether the application of Patrick Sullivan (Sullivan), licensee of FM Translator SUMMARY: E:\FR\FM\06JNN1.SGM 06JNN1 32734 Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices wreier-aviles on DSK5TPTVN1PROD with NOTICES Station W238CE, Montgomery, Alabama, to assign the W238CE license to Lake Broadcasting, Inc. (LBI), File No. BALFT–20120523ABY (Assignment Application), should be granted. The hearing will include issues regarding whether LBI’s sole shareholder, Michael S. Rice (Rice), is qualified to be a Commission licensee, based on prior proceedings in which authorizations held by companies owned by Rice were revoked based on Rice’s felony convictions, and on misrepresentations and lack of candor by Rice and his companies. DATES: Persons desiring to participate as parties in the hearing shall file a petition for leave to intervene not later than July 7, 2014. ADDRESSES: Please file documents with the Office of the Secretary, Federal Communications Commission, 445 12th Street SW., Washington, DC 20554. Each document that is filed in this proceeding must display on the front page the document number of this hearing, ‘‘MB Docket No. 14–82.’’ FOR FURTHER INFORMATION CONTACT: Gary Schonman, Special Counsel, Enforcement Bureau, (202) 418–1420. SUPPLEMENTARY INFORMATION: This is a summary of the Hearing Designation Order (Order), DA 14–703, adopted May 23, 2014, and released May 23, 2014. The full text of the Order is available for inspection and copying during regular business hours in the FCC Reference Center, 445 12th Street SW., Room CY– A257, Portals II, Washington, DC 20554, and may also be purchased from the Commission’s copy contractor, BCPI, Inc., Portals II, 445 12th Street SW., Room CY–B402, Washington, DC 20554. Customers may contact BCPI, Inc. via their Web site, https://www.bcpi.com, or call 1–800–378–3160. This document is available in alternative formats (computer diskette, large print, audio record, and Braille). Persons with disabilities who need documents in these formats may contact the FCC by email: FCC504@fcc.gov or phone: 202– 418–0530 or TTY: 202–418–0432. Summary of the Hearing Designation Order 1. This Order commences a hearing proceeding before an Administrative Law Judge to determine whether the application of Sullivan for Consent to Assignment of the License of FM Translator Station W238CE, Montgomery, Alabama (Station), to LBI (Assignment Application) should be granted. LBI’s president, director, and sole shareholder, Rice, is a convicted felon who previously held radio station authorizations, through LBI and other VerDate Mar<15>2010 13:59 Jun 05, 2014 Jkt 232001 entities, which were revoked on the basis of Rice’s felony convictions and misrepresentation to and lack of candor before the Commission.1 Significant and material questions exist as to whether, on the basis of Rice’s criminal convictions and misrepresentations, Rice and, hence, LBI possess the basic character qualifications to hold the Station authorization. Because the Media Bureau (Bureau) is unable to make a determination on the record currently before it that grant of the Assignment Application would serve the public interest, convenience and necessity, it designates the Assignment Application for hearing. 2. On July 5, 1994, Rice was convicted of four felony counts of sodomy, six felony counts of deviate sexual assault in the first degree, and two felony counts of deviate sexual assault in the second degree, involving five children. Rice was sentenced to a total of 84 years in prison, which ran concurrently, thus he was incarcerated for just over five years, and was released from prison in December 1999. At the time of his 1994 conviction, Rice held a 67.5 percent ownership interest in LBI; he subsequently became and remains the owner of all issued shares of LBI’s stock. 3. By Order to Show Cause and Notice of Apparent Liability, the Commission directed LBI and two other Rice-owned broadcast companies to show cause why their licenses and construction permits should not be revoked. Following a full and complete evidentiary hearing, the Presiding Administrative Law Judge concluded that Rice’s felony convictions and his companies’ misrepresentation and lack of candor constituted independent grounds for disqualification of the licensees and revocation of their authorizations. The conclusions reached in the Initial Decision were affirmed through all administrative and judicial appeals. 4. On May 23, 2012, Sullivan filed the Assignment Application, which was accepted for filing May 24, 2012. Sullivan and LBI acknowledge Rice’s criminal history, but argue that Rice is now qualified to be a Commission licensee because he has been sufficiently rehabilitated. The Assignment Application was opposed by Child Protect, a Children’s Advocacy Center serving Montgomery and surrounding Alabama counties, which 1 See Contemporary Media, Inc., Initial Decision, 12 FCC Rcd 14254 (ALJ 1997) (CMI ID); Contemporary Media, Inc., Decision, 13 FCC Rcd 14437 (1998) (CMI Decision), recon. denied, Order, 14 FCC Rcd 8790 (1999), aff’d sub nom., Contemporary Media, Inc. v. FCC, 214 F.3d 187 (D.C. Cir. 2000) (Contemporary Media), cert. denied, 532 U.S. 920, 121 S.Ct. 1355 (2001). PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 filed a December 20, 2012, informal objection. 5. Under Commission policy regarding character qualifications nonFCC misconduct, including evidence of any felony conviction, may raise a substantial and material question of fact concerning a licensee’s character. Conviction of certain felonies involving misconduct so egregious as to shock the conscience and evoke almost universal disapprobation might constitute prima facie evidence that the applicant lacks the traits of reliability and/or truthfulness necessary to be a licensee. The U.S. Court of Appeals for the District of Columbia Circuit opined that sexual offenses involving minors fall into this category. (Contemporary Media, 214 F.3d at 193) 6. The Bureau finds that substantial and material questions remain regarding whether Rice has been sufficiently rehabilitated and, therefore, is qualified to hold the Station’s license. First, although Rice was convicted more than a decade ago, the ten-year period that the Commission generally considers as relevant to character considerations has no bearing on whether the underlying allegations of misconduct can be proved or disproved where, as here, there are felony convictions, adverse character determinations, and license revocations that are not subject to retrial in this hearing. Without other compelling evidence of rehabilitation, a rote application of the Commission’s general ten-year time limitation policy would not serve the public interest in this instance. 7. The Bureau’s review of the materials submitted in support of the Assignment Application leads it to conclude that the testimonials therein are of limited probative value. For example, while LBI avers that the State of Missouri has ‘‘fully restored’’ Rice to his rights as a citizen, as evidence of his full rehabilitation, it neither defines ‘‘full restoration of rights,’’ nor mentions Rice’s required inclusion on an official Sex Offender Registry as a consequence of his conviction. LBI further provides a two-page letter, dated October 31, 2011, from Wayne A. Stillings, M.D. (Stillings), Rice’s psychiatrist for the last 20 years, attached to which is Stillings’s eight-page Declaration, executed May 17, 2001, more than ten years prior to the letter. Stillings states that Rice’s conduct that led to his criminal convictions was the result of a combination of psychiatric illnesses that are physiological in nature, and that Rice could not control his conduct and was unaware of these illnesses prior to commencing treatment in 1991. Stillings states that each of Rice’s disorders has E:\FR\FM\06JNN1.SGM 06JNN1 wreier-aviles on DSK5TPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices been in remission for approximately ten years, and that there is no reason to anticipate that any of Rice’s disorders will again become active as long as Rice continues to take his prescribed medications and to pursue the appropriate therapy. The Bureau finds, however, that Stillings’s testimony substantially contradicts the record in this case, or is beyond the scope of expert medical testimony, setting forth conclusions of law rather than of medicine or psychiatry. Moreover, the declaration’s age raises questions regarding its probative value. 8. Additionally, the materials submitted do not deal in any meaningful way with Rice’s lack of candor and misrepresentation regarding his participation in the management and operation of his stations following his arrest, the second independent ground underlying the revocation of LBI’s prior authorizations. Misrepresentation and lack of candor are sufficient grounds for revocation of licenses, and were cited as separate and independent grounds for revoking the Rice Companies’ authorizations. (CMI Decision, 13 FCC Rcd at 14459) However, LBI’s rehabilitation showing is almost exclusively devoted to Rice’s criminal convictions. Any determination regarding Rice’s or LBI’s qualifications to be a Commission licensee must evaluate Rice’s candor and truthfulness before the Commission. The Application does not present a sufficient record on which to make that determination. The four letters submitted on Rice’s behalf consist either of vague platitudes concerning Rice’s honesty, his positions with non-broadcast associations, and his personal kindness, or speak only of Rice’s technical expertise as a broadcaster. Such statements shed little light on Rice’s character as a potential Commission licensee, particularly given that there is no indication that the declarants are aware of the details of Rice’s background or his prior criminal acts, and could therefore speak to his rehabilitation from those past acts. The Bureau is unable to find on the basis of these letters that Rice possesses the requisite good character to become a Commission licensee. 9. With regard to Child Protect’s Informal Objection, so considered because it was untimely filed (see 47 CFR 73.3584(a)), the above discussion addresses Child Protect’s first concern regarding Rice’s past criminal convictions and potential rehabilitation. The Bureau finds, however, that Child Protect does not set forth facts sufficient to raise a substantial and material question of fact regarding Rice’s alleged control over Station WRZB(AM), VerDate Mar<15>2010 13:59 Jun 05, 2014 Jkt 232001 Wetumpka, Alabama. Rice’s company CMI programs WRZB(AM) pursuant to a Local Marketing Agreement (LMA). Child Protect does not set forth specific facts, supported by the affidavit of a person with personal knowledge, demonstrating that WRZB(AM)’s licensee abrogated its ultimate responsibility for essential station functions. Child Protect therefore does not make out a prima facie case of any statutory or rule violation, and the Bureau declines to designate this issue. 10. In light of the foregoing, the Bureau believes that there remain substantial and material questions of fact as to whether Rice, and therefore LBI, possesses the requisite character qualifications to be a Commission licensee. Having examined all of the record evidence regarding Rice’s character and finding it lacking in probative value, and given the seriousness of the criminal behavior in which Rice engaged, the Bureau believes that a hearing before an Administrative Law Judge is warranted. Such a hearing will provide the best forum to evaluate whether Rice has been rehabilitated to an extent that the Commission is fully confident Rice will refrain from engaging in the kind of behavior for which he was convicted; Rice and/or LBI can be relied upon to be truthful, candid, and forthcoming in their dealings with the Commission; and Rice and/or LBI will comply in all other respects with the Commission’s Rules, regulations, and policies. Consequently, appropriate issues will be designated for hearing. 11. Accordingly, it is ordered that, pursuant to section 309(e) of the Communications Act of 1934, as amended, 47 U.S.C. 309(e), the Assignment Application, File No. BALFT–20120523ABY, is designated for hearing in a proceeding before an FCC Administrative Law Judge, at a time and place to be specified in a subsequent Order, upon the following issues: (a) To determine the effects, if any, of Michael S. Rice’s felony convictions on his qualifications and/or the qualifications of Lake Broadcasting, Inc., to be a Commission licensee; (b) To determine the effects, if any, of the misrepresentation and lack of candor by Michael S. Rice’s broadcast companies on his qualifications and/or the qualifications of Lake Broadcasting, Inc., to be a Commission licensee; (c) To determine, in light of the evidence adduced pursuant to the foregoing issues, whether Michael S. Rice and/or Lake Broadcasting, Inc., is qualified to be a Commission licensee; and (d) To determine, in light of the evidence adduced pursuant to the foregoing PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 32735 issues, whether the captioned Application for consent to the assignment of license for Station W238CE should be granted. 12. It is further ordered that to avail themselves of the opportunity to be heard and the right to present evidence at a hearing in these proceedings, pursuant to § 1.221 of the Commission’s rules, Lake Broadcasting, Inc., and Patrick Sullivan, in person or by their attorneys, shall file, within 20 days of the mailing of this Hearing Designation Order, written appearances in triplicate stating their respective intentions to appear on the date fixed for hearing and to present evidence on the issues specified in this Hearing Designation Order. 13. It is further ordered, pursuant to § 1.221 of the Commission’s rules, that if Lake Broadcasting, Inc., or Patrick Sullivan fails to file a written appearance within the time specified above, or has not filed prior to the expiration of that time a petition to dismiss without prejudice, or a petition to accept, for good cause shown, such written appearance beyond expiration of said 20 days, the Presiding Administrative Law Judge shall expeditiously dismiss the captioned application with prejudice for failure to prosecute. 14. It is further ordered that the Chief, Enforcement Bureau, is made a party to this proceeding without the need to file a written appearance. 15. It is further ordered, that a copy of each document filed in this proceeding subsequent to the date of adoption of this Hearing Designation Order shall be served on the counsel of record appearing on behalf of the Chief, Enforcement Bureau. Parties may inquire as to the identity of such counsel by calling the Investigations & Hearings Division of the Enforcement Bureau at (202) 418–1420. Such service copy shall be addressed to the named counsel of record, Investigations & Hearings Division, Enforcement Bureau, Federal Communications Commission, 445 12th Street SW., Washington, DC 20554. 16. It is further ordered, that the Presiding Administrative Law Judge shall not, in the context of this hearing proceeding, relitigate any of the findings of fact and/or conclusions of law contained in any order or opinion relating to the state court proceeding in which Michael S. Rice was determined to be a convicted felon or in any order or opinion relating to the Commission proceeding in which Michael S. Rice and/or the broadcast companies in which he held an interest were E:\FR\FM\06JNN1.SGM 06JNN1 wreier-aviles on DSK5TPTVN1PROD with NOTICES 32736 Federal Register / Vol. 79, No. 109 / Friday, June 6, 2014 / Notices previously determined to be unqualified. 17. It is further ordered, that, in accordance with section 309(e) of the Communications Act of 1934, as amended, the burdens of proceeding with the introduction of evidence and of proof with respect to all issues designated herein SHALL BE upon the parties to the captioned application. 18. It is further ordered that, given the very serious questions that exist as to whether Michael S. Rice and/or Lake Broadcasting, Inc. is qualified to hold a Commission license and operate a radio facility in the public interest, the Presiding Administrative Law Judge shall, to the fullest extent possible, ensure that each of the issues designated herein is thoroughly explored and his Initial Decision is predicated on a full and complete evidentiary record. 19. It is further ordered, that the parties to the captioned application shall, pursuant to section 311(a)(2) of the Communications Act of 1934, as amended, 47 U.S.C. 311(a)(2), and § 73.3594 of the Commission’s rules, 47 CFR 73.3594, GIVE NOTICE of the hearing within the time and in the manner prescribed in such Rule, and shall advise the Commission of the publication of such notice as required by § 73.3594(g) of the Commission’s rules, 47 CFR 73.3594(g). 20. It is further ordered that the December 20, 2012, letter filing of Child Protect is dismissed as a Petition to Deny. It is further ordered that the December 20, 2012, letter filing of Child Protect is denied as an Informal Objection as to the allegations therein regarding an unlawful transfer of control of station WRZB(AM) to Contemporary Media, Inc. and/or Michael S. Rice. 21. It is further ordered that copies of this Hearing Designation Order shall be sent via Certified Mail, Return Receipt Requested, and by regular first class mail to the following: Jerold L. Jacobs, Esq., Law Offices of Jerold L. Jacobs, 1629 K Street NW., Suite 300, Washington, DC 20006 (Attorney for Patrick Sullivan and Lake Broadcasting, Inc.); Patrick Sullivan, 22932 Abrolat Road, Wright City, MO 63390; Lake Broadcasting, Inc., P.O. Box 1268, St. Peters, MO 63376; Jannah M. Bailey, Executive Director, Child Protect, 935 S. Perry Street, Montgomery, AL 36104. Federal Communications Commission. William T. Lake, Chief, Media Bureau. [FR Doc. 2014–13266 Filed 6–5–14; 8:45 am] BILLING CODE 6712–01–P VerDate Mar<15>2010 13:59 Jun 05, 2014 Jkt 232001 FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License Reissuances The Commission gives notice that the following Ocean Transportation Intermediary licenses have been reissued pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C. 40101). License No.: 020911N. Name: Cargois Inc. dba SV Logis Inc. Address: 10700 Seymour Avenue, Franklin Park, IL 60131. Date Reissued: October 29, 2013. License No.: 023291N. Name: BK Logistics Corp. Address: 19500 S. Rancho Way, Suite 103, Rancho Dominguez, CA 90220. Date Reissued: May 7, 2014. Sandra L. Kusumoto, Director, Bureau of Certification and Licensing. [FR Doc. 2014–13216 Filed 6–5–14; 8:45 am] BILLING CODE 6730–01–P FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License Revocations and Terminations The Commission gives notice that the following Ocean Transportation Intermediary licenses have been revoked or terminated for the reason indicated pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C. 40101) effective on the date shown. License No.: 001758F. Name: Rebel Forwarding, Inc. Address: 2100 South Alameda Street, Long Beach, CA 90221. Date Revoked: May 1, 2014. Reason: Failed to maintain a valid bond. License No.: 2405F. Name: Guadalupe L. De Leon dba Espinoza Forwarding. Address: 40 Meadow Lea Drive, Houston, TX 77022. Date Revoked: May 1, 2014. Reason: Failed to maintain a valid bond. License No.: 14383F. Name: Technical Consulting Shipping, Inc. dba T.C. Shipping, Inc. Address: 19407 Park Row, Suite 195, Houston, TX 77084. Date Revoked: May 5, 2014. Reason: Failed to maintain a valid bond. License No.: 016887NF. Name: Itochu Automobile America Inc. Address: 33533 W. 12 Mile Road, Suite 300, Farmington Hills, MI 48331. Date Revoked: May 15, 2014. PO 00000 Frm 00046 Fmt 4703 Sfmt 4703 Reason: Voluntary surrender of license. License No.: 018403N. Name: ITS International Container Lines Inc. Address: 108 South Franklin Avenue, Suite 8, Valley Stream, NY 11580 Date Revoked: May 13, 2014. Reason: Voluntary surrender of license. License No.: 019421F. Name: Logistics NW LLC. Address: 4370 NE. Halsey Street, Suite 228, Portland, OR 97213. Date Revoked: May 9, 2014. Reason: Failed to maintain a valid bond. License No.: 021753NF. Name: BC Worldwide Logistics, Inc. Address: 12006 Scarlet Oak Trail, Conroe, TX 77385. Date Revoked: May 5, 2014. Reason: Failed to maintain valid bonds. License No.: 022366NF. Name: High Cube, LLC. Address: 469 North Central Avenue, Upland, CA 91786. Date Revoked: May 15, 2014. Reason: Voluntary surrender of license. License No.: 022573NF. Name: International First Service USA, Inc. dba Global Wine Logistics, Inc. Address: 197 Route 18 South, Suite 3000, East Brunswick, NJ 08816. Date Revoked: May 3, 2014. Reason: Failed to maintain valid bonds. License No.: 022575N. Name: JDI Shipping LLC. Address: 42840 Christy Street, Suite 231, Fremont, CA 94538. Date Revoked: April 30, 2014. Reason: Failed to maintain a valid bond. License No.: 022638NF. Name: Guardian International, Inc. Address: 3728 Lake Avenue, Fort Wayne, IN 46805. Date Revoked: May 10, 2014. Reason: Failed to maintain valid bonds. License No.: 022840NF. Name: Yang Kee Logistics USA Inc. Address: 880 Apollo Street, Suite 101, El Segundo, CA 90245. Date Revoked: May 1, 2014. Reason: Voluntary surrender of license. License No.: 023291F. Name: BK Logistics Corp. Address: 19500 S. Rancho Way, Suite 103, Rancho Dominguez, CA 90220. Date Revoked: May 7, 2014. E:\FR\FM\06JNN1.SGM 06JNN1

Agencies

FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 79, Number 109 (Friday, June 6, 2014)]
[Notices]
[Pages 32733-32736]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13266]

=======================================================================
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FEDERAL COMMUNICATIONS COMMISSION

[MB Docket No. 14-82; DA 14-703]

Patrick Sullivan (Assignor) and Lake Broadcasting, Inc.
(Assignee), Application for Consent To Assignment of License of FM
Translator Station W238CE, Montgomery, Alabama

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This document commences a hearing to determine whether the
application of Patrick Sullivan (Sullivan), licensee of FM Translator

[[Page 32734]]

Station W238CE, Montgomery, Alabama, to assign the W238CE license to
Lake Broadcasting, Inc. (LBI), File No. BALFT-20120523ABY (Assignment
Application), should be granted. The hearing will include issues
regarding whether LBI's sole shareholder, Michael S. Rice (Rice), is
qualified to be a Commission licensee, based on prior proceedings in
which authorizations held by companies owned by Rice were revoked based
on Rice's felony convictions, and on misrepresentations and lack of
candor by Rice and his companies.

DATES: Persons desiring to participate as parties in the hearing shall
file a petition for leave to intervene not later than July 7, 2014.

ADDRESSES: Please file documents with the Office of the Secretary,
Federal Communications Commission, 445 12th Street SW., Washington, DC
20554. Each document that is filed in this proceeding must display on
the front page the document number of this hearing, ``MB Docket No. 14-
82.''

FOR FURTHER INFORMATION CONTACT: Gary Schonman, Special Counsel,
Enforcement Bureau, (202) 418-1420.

SUPPLEMENTARY INFORMATION: This is a summary of the Hearing Designation
Order (Order), DA 14-703, adopted May 23, 2014, and released May 23,
2014. The full text of the Order is available for inspection and
copying during regular business hours in the FCC Reference Center, 445
12th Street SW., Room CY-A257, Portals II, Washington, DC 20554, and
may also be purchased from the Commission's copy contractor, BCPI,
Inc., Portals II, 445 12th Street SW., Room CY-B402, Washington, DC
20554. Customers may contact BCPI, Inc. via their Web site, https://www.bcpi.com, or call 1-800-378-3160. This document is available in
alternative formats (computer diskette, large print, audio record, and
Braille). Persons with disabilities who need documents in these formats
may contact the FCC by email: FCC504@fcc.gov or phone: 202-418-0530 or
TTY: 202-418-0432.

Summary of the Hearing Designation Order

1. This Order commences a hearing proceeding before an
Administrative Law Judge to determine whether the application of
Sullivan for Consent to Assignment of the License of FM Translator
Station W238CE, Montgomery, Alabama (Station), to LBI (Assignment
Application) should be granted. LBI's president, director, and sole
shareholder, Rice, is a convicted felon who previously held radio
station authorizations, through LBI and other entities, which were
revoked on the basis of Rice's felony convictions and misrepresentation
to and lack of candor before the Commission.\1\ Significant and
material questions exist as to whether, on the basis of Rice's criminal
convictions and misrepresentations, Rice and, hence, LBI possess the
basic character qualifications to hold the Station authorization.
Because the Media Bureau (Bureau) is unable to make a determination on
the record currently before it that grant of the Assignment Application
would serve the public interest, convenience and necessity, it
designates the Assignment Application for hearing.
---------------------------------------------------------------------------

\1\ See Contemporary Media, Inc., Initial Decision, 12 FCC Rcd
14254 (ALJ 1997) (CMI ID); Contemporary Media, Inc., Decision, 13
FCC Rcd 14437 (1998) (CMI Decision), recon. denied, Order, 14 FCC
Rcd 8790 (1999), aff'd sub nom., Contemporary Media, Inc. v. FCC,
214 F.3d 187 (D.C. Cir. 2000) (Contemporary Media), cert. denied,
532 U.S. 920, 121 S.Ct. 1355 (2001).
---------------------------------------------------------------------------

2. On July 5, 1994, Rice was convicted of four felony counts of
sodomy, six felony counts of deviate sexual assault in the first
degree, and two felony counts of deviate sexual assault in the second
degree, involving five children. Rice was sentenced to a total of 84
years in prison, which ran concurrently, thus he was incarcerated for
just over five years, and was released from prison in December 1999. At
the time of his 1994 conviction, Rice held a 67.5 percent ownership
interest in LBI; he subsequently became and remains the owner of all
issued shares of LBI's stock.
3. By Order to Show Cause and Notice of Apparent Liability, the
Commission directed LBI and two other Rice-owned broadcast companies to
show cause why their licenses and construction permits should not be
revoked. Following a full and complete evidentiary hearing, the
Presiding Administrative Law Judge concluded that Rice's felony
convictions and his companies' misrepresentation and lack of candor
constituted independent grounds for disqualification of the licensees
and revocation of their authorizations. The conclusions reached in the
Initial Decision were affirmed through all administrative and judicial
appeals.
4. On May 23, 2012, Sullivan filed the Assignment Application,
which was accepted for filing May 24, 2012. Sullivan and LBI
acknowledge Rice's criminal history, but argue that Rice is now
qualified to be a Commission licensee because he has been sufficiently
rehabilitated. The Assignment Application was opposed by Child Protect,
a Children's Advocacy Center serving Montgomery and surrounding Alabama
counties, which filed a December 20, 2012, informal objection.
5. Under Commission policy regarding character qualifications non-
FCC misconduct, including evidence of any felony conviction, may raise
a substantial and material question of fact concerning a licensee's
character. Conviction of certain felonies involving misconduct so
egregious as to shock the conscience and evoke almost universal
disapprobation might constitute prima facie evidence that the applicant
lacks the traits of reliability and/or truthfulness necessary to be a
licensee. The U.S. Court of Appeals for the District of Columbia
Circuit opined that sexual offenses involving minors fall into this
category. (Contemporary Media, 214 F.3d at 193)
6. The Bureau finds that substantial and material questions remain
regarding whether Rice has been sufficiently rehabilitated and,
therefore, is qualified to hold the Station's license. First, although
Rice was convicted more than a decade ago, the ten-year period that the
Commission generally considers as relevant to character considerations
has no bearing on whether the underlying allegations of misconduct can
be proved or disproved where, as here, there are felony convictions,
adverse character determinations, and license revocations that are not
subject to retrial in this hearing. Without other compelling evidence
of rehabilitation, a rote application of the Commission's general ten-
year time limitation policy would not serve the public interest in this
instance.
7. The Bureau's review of the materials submitted in support of the
Assignment Application leads it to conclude that the testimonials
therein are of limited probative value. For example, while LBI avers
that the State of Missouri has ``fully restored'' Rice to his rights as
a citizen, as evidence of his full rehabilitation, it neither defines
``full restoration of rights,'' nor mentions Rice's required inclusion
on an official Sex Offender Registry as a consequence of his
conviction. LBI further provides a two-page letter, dated October 31,
2011, from Wayne A. Stillings, M.D. (Stillings), Rice's psychiatrist
for the last 20 years, attached to which is Stillings's eight-page
Declaration, executed May 17, 2001, more than ten years prior to the
letter. Stillings states that Rice's conduct that led to his criminal
convictions was the result of a combination of psychiatric illnesses
that are physiological in nature, and that Rice could not control his
conduct and was unaware of these illnesses prior to commencing
treatment in 1991. Stillings states that each of Rice's disorders has

[[Page 32735]]

been in remission for approximately ten years, and that there is no
reason to anticipate that any of Rice's disorders will again become
active as long as Rice continues to take his prescribed medications and
to pursue the appropriate therapy. The Bureau finds, however, that
Stillings's testimony substantially contradicts the record in this
case, or is beyond the scope of expert medical testimony, setting forth
conclusions of law rather than of medicine or psychiatry. Moreover, the
declaration's age raises questions regarding its probative value.
8. Additionally, the materials submitted do not deal in any
meaningful way with Rice's lack of candor and misrepresentation
regarding his participation in the management and operation of his
stations following his arrest, the second independent ground underlying
the revocation of LBI's prior authorizations. Misrepresentation and
lack of candor are sufficient grounds for revocation of licenses, and
were cited as separate and independent grounds for revoking the Rice
Companies' authorizations. (CMI Decision, 13 FCC Rcd at 14459) However,
LBI's rehabilitation showing is almost exclusively devoted to Rice's
criminal convictions. Any determination regarding Rice's or LBI's
qualifications to be a Commission licensee must evaluate Rice's candor
and truthfulness before the Commission. The Application does not
present a sufficient record on which to make that determination. The
four letters submitted on Rice's behalf consist either of vague
platitudes concerning Rice's honesty, his positions with non-broadcast
associations, and his personal kindness, or speak only of Rice's
technical expertise as a broadcaster. Such statements shed little light
on Rice's character as a potential Commission licensee, particularly
given that there is no indication that the declarants are aware of the
details of Rice's background or his prior criminal acts, and could
therefore speak to his rehabilitation from those past acts. The Bureau
is unable to find on the basis of these letters that Rice possesses the
requisite good character to become a Commission licensee.
9. With regard to Child Protect's Informal Objection, so considered
because it was untimely filed (see 47 CFR 73.3584(a)), the above
discussion addresses Child Protect's first concern regarding Rice's
past criminal convictions and potential rehabilitation. The Bureau
finds, however, that Child Protect does not set forth facts sufficient
to raise a substantial and material question of fact regarding Rice's
alleged control over Station WRZB(AM), Wetumpka, Alabama. Rice's
company CMI programs WRZB(AM) pursuant to a Local Marketing Agreement
(LMA). Child Protect does not set forth specific facts, supported by
the affidavit of a person with personal knowledge, demonstrating that
WRZB(AM)'s licensee abrogated its ultimate responsibility for essential
station functions. Child Protect therefore does not make out a prima
facie case of any statutory or rule violation, and the Bureau declines
to designate this issue.
10. In light of the foregoing, the Bureau believes that there
remain substantial and material questions of fact as to whether Rice,
and therefore LBI, possesses the requisite character qualifications to
be a Commission licensee. Having examined all of the record evidence
regarding Rice's character and finding it lacking in probative value,
and given the seriousness of the criminal behavior in which Rice
engaged, the Bureau believes that a hearing before an Administrative
Law Judge is warranted. Such a hearing will provide the best forum to
evaluate whether Rice has been rehabilitated to an extent that the
Commission is fully confident Rice will refrain from engaging in the
kind of behavior for which he was convicted; Rice and/or LBI can be
relied upon to be truthful, candid, and forthcoming in their dealings
with the Commission; and Rice and/or LBI will comply in all other
respects with the Commission's Rules, regulations, and policies.
Consequently, appropriate issues will be designated for hearing.
11. Accordingly, it is ordered that, pursuant to section 309(e) of
the Communications Act of 1934, as amended, 47 U.S.C. 309(e), the
Assignment Application, File No. BALFT-20120523ABY, is designated for
hearing in a proceeding before an FCC Administrative Law Judge, at a
time and place to be specified in a subsequent Order, upon the
following issues: (a) To determine the effects, if any, of Michael S.
Rice's felony convictions on his qualifications and/or the
qualifications of Lake Broadcasting, Inc., to be a Commission licensee;
(b) To determine the effects, if any, of the misrepresentation and lack
of candor by Michael S. Rice's broadcast companies on his
qualifications and/or the qualifications of Lake Broadcasting, Inc., to
be a Commission licensee; (c) To determine, in light of the evidence
adduced pursuant to the foregoing issues, whether Michael S. Rice and/
or Lake Broadcasting, Inc., is qualified to be a Commission licensee;
and (d) To determine, in light of the evidence adduced pursuant to the
foregoing issues, whether the captioned Application for consent to the
assignment of license for Station W238CE should be granted.
12. It is further ordered that to avail themselves of the
opportunity to be heard and the right to present evidence at a hearing
in these proceedings, pursuant to Sec. 1.221 of the Commission's
rules, Lake Broadcasting, Inc., and Patrick Sullivan, in person or by
their attorneys, shall file, within 20 days of the mailing of this
Hearing Designation Order, written appearances in triplicate stating
their respective intentions to appear on the date fixed for hearing and
to present evidence on the issues specified in this Hearing Designation
Order.
13. It is further ordered, pursuant to Sec. 1.221 of the
Commission's rules, that if Lake Broadcasting, Inc., or Patrick
Sullivan fails to file a written appearance within the time specified
above, or has not filed prior to the expiration of that time a petition
to dismiss without prejudice, or a petition to accept, for good cause
shown, such written appearance beyond expiration of said 20 days, the
Presiding Administrative Law Judge shall expeditiously dismiss the
captioned application with prejudice for failure to prosecute.
14. It is further ordered that the Chief, Enforcement Bureau, is
made a party to this proceeding without the need to file a written
appearance.
15. It is further ordered, that a copy of each document filed in
this proceeding subsequent to the date of adoption of this Hearing
Designation Order shall be served on the counsel of record appearing on
behalf of the Chief, Enforcement Bureau. Parties may inquire as to the
identity of such counsel by calling the Investigations & Hearings
Division of the Enforcement Bureau at (202) 418-1420. Such service copy
shall be addressed to the named counsel of record, Investigations &
Hearings Division, Enforcement Bureau, Federal Communications
Commission, 445 12th Street SW., Washington, DC 20554.
16. It is further ordered, that the Presiding Administrative Law
Judge shall not, in the context of this hearing proceeding, relitigate
any of the findings of fact and/or conclusions of law contained in any
order or opinion relating to the state court proceeding in which
Michael S. Rice was determined to be a convicted felon or in any order
or opinion relating to the Commission proceeding in which Michael S.
Rice and/or the broadcast companies in which he held an interest were

[[Page 32736]]

previously determined to be unqualified.
17. It is further ordered, that, in accordance with section 309(e)
of the Communications Act of 1934, as amended, the burdens of
proceeding with the introduction of evidence and of proof with respect
to all issues designated herein SHALL BE upon the parties to the
captioned application.
18. It is further ordered that, given the very serious questions
that exist as to whether Michael S. Rice and/or Lake Broadcasting, Inc.
is qualified to hold a Commission license and operate a radio facility
in the public interest, the Presiding Administrative Law Judge shall,
to the fullest extent possible, ensure that each of the issues
designated herein is thoroughly explored and his Initial Decision is
predicated on a full and complete evidentiary record.
19. It is further ordered, that the parties to the captioned
application shall, pursuant to section 311(a)(2) of the Communications
Act of 1934, as amended, 47 U.S.C. 311(a)(2), and Sec. 73.3594 of the
Commission's rules, 47 CFR 73.3594, GIVE NOTICE of the hearing within
the time and in the manner prescribed in such Rule, and shall advise
the Commission of the publication of such notice as required by Sec.
73.3594(g) of the Commission's rules, 47 CFR 73.3594(g).
20. It is further ordered that the December 20, 2012, letter filing
of Child Protect is dismissed as a Petition to Deny. It is further
ordered that the December 20, 2012, letter filing of Child Protect is
denied as an Informal Objection as to the allegations therein regarding
an unlawful transfer of control of station WRZB(AM) to Contemporary
Media, Inc. and/or Michael S. Rice.
21. It is further ordered that copies of this Hearing Designation
Order shall be sent via Certified Mail, Return Receipt Requested, and
by regular first class mail to the following: Jerold L. Jacobs, Esq.,
Law Offices of Jerold L. Jacobs, 1629 K Street NW., Suite 300,
Washington, DC 20006 (Attorney for Patrick Sullivan and Lake
Broadcasting, Inc.); Patrick Sullivan, 22932 Abrolat Road, Wright City,
MO 63390; Lake Broadcasting, Inc., P.O. Box 1268, St. Peters, MO 63376;
Jannah M. Bailey, Executive Director, Child Protect, 935 S. Perry
Street, Montgomery, AL 36104.

Federal Communications Commission.
William T. Lake,
Chief, Media Bureau.
[FR Doc. 2014-13266 Filed 6-5-14; 8:45 am]
BILLING CODE 6712-01-P

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