The Federal Communications Commission has settled on a reduced civil penalty in a Consent Decree with WorthRome, LLC, the licensee of KVHZ-AM in Wasilla, AK, and its associated FM translator, K296FP in Willow Creek.
Initially, the Media Bureau proposed a $7,000 fine against WorthRome for violating several sections of the FCC’s rules, including reducing daytime power, limiting operating hours, and discontinuing operations without FCC notification or authorization. Additionally, WorthRome was found to be in violation for originating programming on K296FP, while KVHZ was off-air.
However, WorthRome submitted financial records to claim an inability to pay the full penalty amount. While the FCC usually considers a licensee’s gross revenues as an indicator of their ability to pay a forfeiture, they also take into account other financial factors, such as net losses. In this case, the Media Bureau noted that WorthRome’s stations only generated enough revenue to cover 73% and 71% of their operating expenses in 2021 and 2022, respectively.
Considering these financial hardships and WorthRome’s efforts to replace a malfunctioning transmitter, the FCC decided to reduce the civil penalty to $4,000. This amount will be suspended unless the Commission finds within the next three years that WorthRome misled them about its financial status.
