After the close of a filing window, the FCC reviews all of the applications for new stations and major changes to existing LPFM stations to determine which applications conflict with other applications filed during the window. This is also referred to as being mutually exclusive or "MX". In LPFM, a conflict occurs when two applications on the same channel are less than 24 kilometers (14.9 miles) or when two applications on first-adjacent channels are less than 14 kilometers (8.7 miles) apart. The FCC will then divide all of the MX applications into separate groups based on the common conflicts each application has. The FCC will assign each group a group number and then release a list of mutually exclusive applications.
The FCC will offer an opportunity for LPFM applicants in each MX group to negotiate some form of a settlement between all applicants (called a universal settlement) or a partial settlement between a subset of applicants in the MX Group. The FCC will then assign a score to each LPFM application based on how they answered the point system questions on the application. The application also asks for a date when the organization started to operate as a local organization on a consistent basis. This will be used as the tie breaker. For the purposes of the FCC rules, an organization is "local" if they have their headquarters or a campus, or they have 75 percent of their board members reside within 10 miles (16.1 km) of the LPFM station if they are in media markets 1 through 50. In other areas, the distance is 20 miles (32.2 km).
More information about the processing of MX applications can be found in §73.872 of the rules.
Point system elements
| Name | Points | Description | Documentation Requirements |
|---|---|---|---|
| Established Community Presence | 1 point | For the past two consecutive years prior to filing, the applicant has been a local organization. Local is considered where the organization's headquarters is located, or where a campus of the organization is located or where 75 percent of the organization's board members are located within 10 miles (16.1 km) of the LPFM transmitting antenna if the location is within the top 50 media markets, 20 miles (32.2 km) elsewhere. | Documentation should include governance documents such as articles of incorporation or other documentation that shows evidence of a headquarters for over two years. Educational institutions can include course brochures in order to qualify a campus. For board member claims, the application should include information on length of residence of each board member. |
| Local Programming Origination | 1 point | The applicant must pledge to originate locally at least eight hours of programming per day. For purposes of this criterion, local origination is the production of programming by the licensee, within ten miles of the coordinates of the proposed transmitting antenna. Local origination includes licensee produced call-in shows, music selected and played by a disc jockey present on site, broadcasts of events at local schools, and broadcasts of musical performances at a local studio or festival, whether recorded or live. Local origination does not include the broadcast of repetitive or automated programs or time-shifted recordings of non-local programming whatever its source. In addition, local origination does not include a local program that has been broadcast twice, even if the licensee broadcasts the program on a different day or makes small variations in the program thereafter. | No specific documentation required. |
| Main Studio | 1 point | The applicant must pledge to maintain a publicly accessible main studio that has local program origination capability, is reachable by telephone, is staffed at least 20 hours per week between 7 a.m. and 10 p.m., and is located within 10 miles (16.1 km) of the proposed site for the transmitting antenna for applicants in the top 50 media markets and 20 miles (32.2 km) elsewhere. | On the application, the applicant claiming this point must include their proposed main studio address and telephone number. |
| Local Programming and Main Studio | 1 point | Also known as the "Bonus point", this point can be claimed if both the Local Programming Origination and Main Studio points are claimed. | No specific information beyond what is required for the Main Studio point claim is needed. |
| Diversity of Ownership | 1 point | The applicant holds no attributable interests in any other broadcast stations. This point can be claimed by most applicants except for those organizations that may already have an FM translator already licensed to them or in the case of educational institutions, the LPFM cross ownership with a full-service facility is permitted under the Student Station Rule. | Applicants with attributable interests may file a divestiture statement that indicates that prior to the LPFM station going on the air (program test), the applicant would have divested themselves from the other attributable interest. The construction permit will carry a condition as such. |
Aggregation of points
Applicants in the same MX group may reach a partial settlement with any other applicant to reach a time share agreement and then aggregate their points together. Only the applicants with the highest number of points (in most cases, 5 points) will be able to aggregate their points and only with other applicants with the same score. For example, if two 5-point applicants reach a time share agreement, then the points will be aggregated and each application would have 10 points.
Only 3 applicants can enter into a settlement like this thus keeping the maximum possible score at 15 points.
Tie breaker and involuntary timesharing
In the event that a tie remains, the next step depends on the number of applicants remaining in the MX Group with the same number of points.
4 or more tied applicants
If there is four or more tied applicants, the FCC will narrow the field down to three applicants by dismissing the applications of the applicants with the youngest local establishment dates until the number of tied MX applicants is reduced to three. The FCC will then follow the process shown below for the handling of 3 tied applicants.
2 or 3 tied applicants
When there are two or three applicants with the same number of points, the FCC will declare each of the tied applicants as tentative selectees and then rank them by their local establishment dates.
In the case of two tied applicants, the FCC will provide the applicant with the oldest local establishment date an opportunity to select one of two time slots, either 3:00 AM~2:59 PM or 3:00 PM~2:59 AM. That applicant will respond with their choice and then the other tied applicant will get the other chosen time slot.
In the case of three tied applicants, the FCC will provide the applicant with the oldest local establishment date an opportunity to select one of three time slots, either 2:00 AM~9:59 AM, 10:00 AM~5:59 PM or 6:00 PM~1:59 PM. The applicant will respond with their choice. The FCC will then provide the applicant with the second oldest local establishment date with a choice of the two remaining time slots. That applicant will respond with their choice and then the applicant with the third oldest local establishment date will get the remaining time slot.
Non-renewable licenses
Licenses granted to stations that went through the involuntary time share process will be conditioned as "non-renewable". Licenses will remain non-renewable until either the other members of the time share group drop out through permit or license cancellation, if other members make technical modifications to remove them from the time share agreement or if the remaining time share group submits a universal settlement with the FCC, even if it is for the same hours. The FCC wants applicants to communicate with each other.