Part 73, Subpart G, Section 73.858 is a regulation that addresses the attribution of LPFM station interests.
Attribution of LPFM station ownership
Attributable interests
The main definition of attribution of ownership for broadcast stations can be found in §73.3555 of the FCC Rules. As LPFM stations are limited to noncommercial educational entities, the ownership limits of §73.3555 do not apply. Ownership of the station's assets completely belong to the nonprofit organization itself and not any individual. No individual person "owns" an LPFM station. However, since an individual person can have ownership assets in a commercial broadcast station, those assets must be considered when determining attributable interest in an LPFM station license. In addition, officers and directors of a corporation that has a broadcast license may be considered to have a cognizable interest if broadcasting is the primary business of the company. The attribution can be waived if a showing is made that the duties and responsibilities of the officer or director are wholly unrelated to the broadcast license. This status should be reflected in the full-service station's biennial ownership report. The officers and directors of a sister corporation of a broadcast licensee shall not be attributed with ownership by virtue of such status.
Any individual with a voting stock interest amounting to 5 percent or more of the outstanding voting stock of a corporate broadcast licensee will be considered cognizable.
"Cognizable interest" means any interest, direct or indirect, that allows a person or entity to own, operate or control, or that otherwise provides an attributable interest in a broadcast station.
To put it more simply, an individual who is a director or an officer of an entity that owns a commercial or noncommercial (full-service and LPFM) broadcast station, or who has at least 5% of ownership interests with voting rights in a corporation that owns a broadcast station has an attributable interest and unless otherwise exempted by rule, is unable to be a board member of an LPFM station.
Recusal of broadcasting responsibility
Sometimes, a nonprofit organization where broadcasting is not their primary function may include board members from the local community that are officers or directors of corporations. If that corporation has broadcast licenses, then there is an attributable interest that prevents LPFM ownership. This roadblock can be worked around if the attributable interest is disclosed and that the board member recuses themselves from any matters affecting the LPFM station.
Chapters of larger organizations
If a national organization has any attributable interests in a broadcast license, a local chapter of that organization will not carry those same attributable interests as long as the local chapter is separately incorporated and has a distinct local presence and mission.
Parent and subsidiaries of LPFM corporations
A parent of subsidiary of a corporation that is an LPFM licensee that is a non-stock corporation (which nonprofits are as there are no individual owners) will be treated as having an attributable interest. The officers, directors and members of a non-stock corporation's governing body and of any parent or subsidiary entity will have such positional interests attributed to them.
Regulatory history
This rule was enacted in the 2000 LPFM Report and Order and has not been amended since.
Text of regulation 47 CFR §73.858
§ 73.858 Attribution of LPFM station interests.
Ownership and other interests in LPFM station permittees and licensees will be attributed to their holders and deemed cognizable for the purposes of §§ 73.855 and 73.860, in accordance with the provisions of § 73.3555, subject to the following exceptions:
(a) A director of an entity that holds an LPFM license will not have such interest treated as attributable if such director also holds an attributable interest in a broadcast licensee or other media entity but recuses himself or herself from any matters affecting the LPFM station.
(b) A local chapter of a national or other large organization shall not have the attributable interests of the national organization attributed to it provided that the local chapter is separately incorporated and has a distinct local presence and mission.
(c) A parent or subsidiary of a LPFM licensee or permittee that is a non-stock corporation will be treated as having an attributable interest in such corporation. The officers, directors, and members of a non-stock corporation's governing body and of any parent or subsidiary entity will have such positional interests attributed to them.