The Chief of the FCC Media Bureau’s Audio Division has signed a Consent Decree that will end the Commission’s investigation into why the licenses for an AM radio station serving Oregon’s state capital and its FM translator partner were transferred between family members — twice — without proper authorization.
Inter-family transfers are a no-no without getting the green light from the FCC, and in this case a $16,000 proposed fine was handed to KCCS LLC and the Smith family for shifts in majority control of Talk KSLM-AM and K282BY in Salem, Ore.
The Commission and Audio Division Chief Al Shuldiner issued a Notice of Apparent Liability for Forfeiture in September after they became aware of the rule violation through self-admission. Indeed, it was KCCS’s own applications seeking approval of a transaction that would shift the properties from Cindy Wyant Smith to Jacqueline Smith that led Media Bureau staff to discover that the limited liability company saw a change in control two times prior to the filing of paperwork with the FCC requesting such a shift in ownership structure.
Ms. Wyant Smith acquired KCCS LLC in August 2011. On May 1, 2014 she struck a deal with Ms. Smith in a unique arrangement valued at $250,000, to be paid through “sweat equity.” Providing bookkeeping and administrative services, a fee of $250,000 was placed on the time and duties equivalent to that payment.
As previously reported, it took Jacqueline Smith from September 2016 through February 2021 to earn the funds needed to acquire KCCS LLC in full. At that time, the Oregon Secretary of State was delivered paperwork indicating Jacqueline Smith was now sole Member/Manager. But, the FCC did not receive any notification of such until October 2021. Each party acknowledged their “mistake” and said that an application for FCC approval of the transfer of control of KCCS LLC would be filed within ten business days of the execution of an amended agreement filed at that time. However, a filing did not transpire for four months.
Then came the license renewal applications. These included a declaration that Ms. Wyatt Smith was the sole interest holder and that Jacqueline Smith was a non-voting, non-equity LLC member.
There’s more: Starting in 2022, Jacqueline Smith and her sisters Amanda Smith, Katie Wilson and Cynthia Ramirez claimed to be the co-owners of KSLM-AM. Local media reports and the station’s own social media reported this as fact.
This, in the eyes of the Commission, translates to an unauthorized transfer of control. And, in this case, there were two such violations.
While not a fine, the Smith family is agreeing to pay $16,000. However, this will be made to the U.S. Treasury in the form of a civil penalty, with all claims against KCCS LLC cancelled.
