[BC] LMAs - How Far Can They Go?

[Bill Spry]

I've been wondering if stations can LMA their HD2 channels?


Thanks,

William J. Spry


----- Original Message ----- 
From: "Mike McCarthy" <Towers at mre.com>
To: "Broadcasters' Mailing List" <broadcast at radiolists.net>
Sent: Saturday, January 28, 2006 10:03 AM
Subject: Re: [BC] LMAs - How Far Can They Go?


> While the LMA rules are not very clear on EAS, another test of retention 
> of control is performance of EAS tests and maintenance of that equipment 
> as well as the DCO requirements.  I consider ownership of EAS equipment to 
> be part of the overall transmission system.
>
> While the LMA holder can schedule and execute the tests, the licensee 
> controls the equipment and the policies on it's operation.  The LMA holder 
> CAN make entries in the Station Log however.
>
> In LMA instances which I have been involved, the licensee demarc'd the 
> control/reasonability transition point from the LMA holder to the licensee 
> at the input point of the EAS box, which was the last thing other than the 
> protection pre-processor before the TX(s).  In this manner, it made it 
> really simple to permit a split facility where the LMA holder has control 
> of their own office/studio domain and the station simply monitors and 
> passes through the audio.  It can be as simple as a stand-alone rack 
> cabinet among all the others in a studio facility.  But if questioned, it 
> would show clearly the licensee defines the limits of the LMA in 
> operation.
>
> MM
>
> At 07:03 AM 1/28/2006 -0500, Phil Alexander wrote
>>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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>>
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