[BC] LMAs - How Far Can They Go?

[Phil Alexander]

On 28 Jan 2006 at 6:17, Cowboy wrote:

> On Saturday 28 January 2006 01:58 am, Steve wrote:
> >
> >Thanks for the links Harold. I hope those in this group who might be able to answer my question will jump in. At this juncture it's  information that's very important not only for me but my group. At this point I believe the licensee has given away too much authority to the holders of the LMA. There are some other problems as well but I can get into those details once I get somewhat of a handle on the main question.
> 
>  I am not a lawyer, nor do I play one on radio.....
> 
>  The LMA's I have been involved with, short version :
>  The licensee remains responsible for the operation of the
>  radio station within the terms of its license, ( including EAS )
>  AND must maintain that "meaningful" presence.
>  Two people must be employees of the current licensee.
> 
>  The licensee isn't technically responsible for content, but that's
>  about where disavowing responsibility stops.

The issue is "Unauthorized Transfer of Control."

I know I found good guidance on the FCC website two or three years ago.

If you start with the references in 73.4267 to FCC Orders etc. this
will give you a good start, but I believe there is also other info
on the FCC site. Remember that the FCC generally calls it a "Time
Brokerage Agreement" rather than an LMA in most places. 

I remember the guidance calls it a gray area but suggest several thing
to avoid the appearance of transfer of control.

Some of the things I do recall are:

	Licensee maintains staff presence at the offices during normal
	business hours. Generally satisfied by one management person
	and one employee, both of whom are employed by the licensee.

	Licensee maintains technical operation of station, buys own
	equipment, provides for service of same and pays the bills.

	Licensee retains right to determine on air talent, and unrestricted
	right to terminate LMA/brokerage agreement.

	Licensee is fully responsible for public file etc. including 
	political file and programs and issues - a/k/a quarterly reports.

	Another thing that has come up since ... investigate EEO because
	a licensee cannot use the fact of the LMA to get around EEO
	requirements.

You really do need a communications lawyer to draw the LMA, and you
must have one. If the station is LMA'd you must have a copy of the
agreement in the public file (commercial terms redacted).

It is also a good idea to have a full "due diligence" report done on 
the station to make sure you aren't pouring sand down a rathole
unknowingly.


Phil Alexander, CSRE, AMD
Broadcast Engineering Services and Technology 
(a Div. of Advanced Parts Corporation) 
Ph. (317) 335-2065   FAX (317) 335-9037





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