LPFM stations can be assigned for consideration equal to what the original licensee paid for any equipment or construction costs that the assignee will benefit from post-transaction. However, this consideration cannot include periodic operating charges like rent, leases, salaries, utilities, music licensing fees, etc. Applications should provide a detailed schedule of items, including their names, model numbers, sources, and actual costs paid.
Transferring Ownership or Control of an LPFM Station to Another Organization: Is It Possible?
The process of selling or transferring control of an LPFM (Low-Power FM) station to a different organization is a query that frequently arises in the context of LPFM station ownership and operation. This question delves into the complexities of LPFM station regulations and the options available for organizations seeking to change ownership or control.
Understanding LPFM Stations
Low-Power FM stations are unique in their mission and focus on serving local communities. They operate under specific regulatory guidelines set by the Federal Communications Commission (FCC) to ensure that they remain community-oriented and non-commercial in nature. These regulations play a crucial role in determining the possibilities and limitations surrounding station ownership transfers.
Transferring Ownership or Control
Transferring ownership or control of an LPFM station to a different organization is indeed possible, but it involves adherence to a set of rules and procedures outlined by the FCC. The process typically includes the following steps:
1. Complying with FCC Regulations: Organizations seeking to transfer ownership or control must ensure that they comply with all FCC rules and regulations governing LPFM stations. These rules are designed to safeguard the station’s community-focused mission.
2. Finding an Eligible Organization: The FCC allows LPFM stations to be owned and operated by nonprofit organizations, educational institutions, or governmental entities. To transfer ownership or control, the acquiring organization must fall into one of these eligible categories.
3. License Transfer Application: The current owner of the LPFM station (the assignor) and the acquiring organization (the assignee) must jointly file an application with the FCC for the transfer of control or ownership. This application must provide detailed information about the parties involved and the reasons for the transfer.
4. Public Notice: The FCC typically requires public notice of the proposed transfer. This notice serves to inform the community about the change and allows for public input or objections.
5. FCC Approval: Once the application is submitted, the FCC reviews it to ensure that it complies with all relevant regulations. If approved, the FCC will grant consent for the transfer to proceed.
6. Transition Period: During the transfer process, there may be a transition period where the assigning organization continues to operate the station until the FCC approves the transfer officially.
Determining Eligibility for Assignment
An LPFM station license or construction permit can be assigned to another organization under specific circumstances. These circumstances include:
- Unbuilt Station with 18 Months Elapsed: If the station was never constructed, and at least 18 months have passed since the original construction permit was granted, an assignment may be possible.
- Station On-Air for Less than 4 Years: If the station has been built and has been on the air for less than 4 years (excluding silent periods), it may be eligible for assignment provided it meets the requirements of §73.865.
- Station On-Air for at Least 4 Years: If the station has been constructed and has been on the air for at least 4 years (excluding silent periods), assignment is generally permitted.
Singleton Criteria for Assignment
For unbuilt construction permits and constructed stations on the air for less than 4 years, assignment pursuant to §73.865 is typically possible under the following singleton conditions:
- There were no competing applications during the original filing window.
- Competing applicants were either dismissed or modified their facility to eliminate competition.
- The station made a modification during the remediation period after the filing window that cleared it from competing applications.
- The FCC used the point system to dismiss other lower-scoring applicants, and the assignee must qualify for the same number of points as the current licensee during the filing window.
- The original application was granted in an involuntary time share group, and the assignee must qualify for the same number of points and have a local community presence date older than the “youngest” organization in the time share group.
Application Requirements
LPFM station assignment applications must include a statement explaining how the licensee qualifies for assignment under §73.865 of the rules.
Consideration and Limitations
LPFM stations can be assigned for consideration equal to what the original licensee paid for any equipment or construction costs that the assignee will benefit from post-transaction. However, this consideration cannot include periodic operating charges like rent, leases, salaries, utilities, music licensing fees, etc. Applications should provide a detailed schedule of items, including their names, model numbers, sources, and actual costs paid.
Conclusion
In conclusion, it is possible to sell or transfer control of an LPFM station to a different organization, but it must be done in accordance with FCC regulations and guidelines. The process involves careful planning, compliance with eligibility requirements, and the submission of a formal application to the FCC. It’s essential for all parties involved to be aware of the regulatory framework governing LPFM stations to ensure a smooth and legally compliant transfer of ownership or control. By adhering to these regulations, organizations can make changes in station ownership or control while preserving the station’s commitment to serving its local community.
It’s important to note that LPFM stations can be transferred for consideration based on the equipment’s original cost and construction expenses borne by the initial licensee. The transaction price cannot include ongoing operational charges such as rent, salaries, utilities, etc. Applications must provide a schedule detailing the item’s name, model number, source, and actual cost paid.
Lastly, LPFM stations cannot be sold for profit. Their transfer must adhere to the guidelines and principles outlined within the regulations. The emphasis remains on preserving the non-commercial and community-focused nature of LPFM broadcasting.