Yes we can, sez FCC
Senator's LMA TV argument a canard, argues Kennard
In a Dec. 1 letter to Kennard, Senate Commerce Committee Chairman John McCain (R-Az.) accused the FCC of defying the will of Congress with its efforts to phase out LMAs, which allow a TV station to buy programming and sell advertising for another station in the same market.
But Kennard said Wednesday that there is nothing in the Telecommunications Act itself that bars the FCC from restricting LMAs. In his letter, McCain quoted from a report that accompanied the law which said that the law "grandfathers LMAs currently in existence upon enactment of this legislation and allows LMAs in the future, consistent with the commission's rules."
But Kennard noted the law is neutral on LMAs. "Take a look at the statutory language itself," said Kennard, adding that courts don't consider the report language unless law is vague or contradictory.
The text of the law states, "Nothing in this section shall be construed to prohibit the origination, continuation or renewal of any television marketing agreement that is in compliance with the regulations of the commission."
The FCC plans to hold a vote on LMAs later this month. Agency staffers have recommended the complete elimination of LMAs. There are more than 80 LMAs in effect around the country, and broadcast groups such as Sinclair and Tribune have several contracts to manage the assets of second stations in markets where they already own one.
Broadcasters insist that LMAs provide public interest benefits by keeping weak stations on the air and bringing dormant ones back to life. But opponents of LMAs claim they are simply an effort by broadcasters to bypass the FCC's current restriction on owning more than one television station in a market. Under the current rule, the only requirement to operate an LMA is that the owners of the leased station must maintain the payroll for the general manager and pay half the salary of one additional employee.
