Notice2026-03588
Hearing Designation Order Issued to 97.5 Licensee TX, LLC
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 24, 2026
Issuing agencies
Federal Communications Commission
Abstract
In this document the Media Bureau (Bureau) of the Federal Communications Commission (Commission) commences a hearing in connection with an application filed by 97.5 Licensee TX, LLC, seeking Commission consent to the transfer of control of three broadcast radio stations in El Paso, Texas. By this document, the Commission has designated substantial and material questions of fact for hearing before an administrative law judge, namely: whether the current licensee maintained proper control of the stations; whether the licensee and proposed buyer, a non-U.S. citizen, engaged in an unauthorized transfer of control of the stations; whether the parties engaged in misrepresentation and/or lack of candor before the Commission; and whether the licensee and the proposed buyer have the necessary character qualifications to remain or become, respectively, a Commission licensee.
Full Text
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<title>Federal Register, Volume 91 Issue 36 (Tuesday, February 24, 2026)</title>
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[Federal Register Volume 91, Number 36 (Tuesday, February 24, 2026)]
[Notices]
[Pages 8873-8876]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03588]
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FEDERAL COMMUNICATIONS COMMISSION
[MB Docket No. 26-19; DA 26-76; FR ID 331414]
Hearing Designation Order Issued to 97.5 Licensee TX, LLC
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: In this document the Media Bureau (Bureau) of the Federal
Communications Commission (Commission) commences a hearing in
connection with an application filed by 97.5 Licensee TX, LLC, seeking
Commission consent to the transfer of control of three broadcast radio
stations in El Paso, Texas. By this document, the Commission has
designated substantial and material questions of fact for hearing
before an administrative law judge, namely: whether the current
licensee maintained proper control of the stations; whether the
licensee and proposed buyer, a non-U.S. citizen, engaged in an
unauthorized transfer of control of the stations; whether the parties
engaged in misrepresentation and/or lack of candor before the
Commission; and whether the licensee and the proposed buyer have the
necessary character qualifications to remain or become, respectively, a
Commission licensee.
DATES: Persons desiring to participate as parties in the hearing shall
file a petition for leave to intervene no later than March 26, 2026.
[[Page 8874]]
ADDRESSES: File documents with the Office of the Secretary, Federal
Communications Commission, 45 L Street NE, Washington, DC 20554, with a
copy mailed to each party to the proceeding. Each document that is
filed in this proceeding must display on the front page the docket
number of this hearing, MB Docket No. 26-19.
FOR FURTHER INFORMATION CONTACT: Brendan Holland, Media Bureau, at
(202) 418-2757 or <a href="/cdn-cgi/l/email-protection#5a38283f343e3b3474323536363b343e1a3c3939743d352c"><span class="__cf_email__" data-cfemail="0765756269636669296f686b6b6669634761646429606871">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This is a summary of the Hearing Designation
Order (Order), MB Docket No. 26-19, DA 26-76, adopted and released on
January 23, 2026. The complete text of this document is available on
the Commission's website at <a href="https://www.fcc.gov/document/975-licensee-tx-llc-hearing-designation-order">https://www.fcc.gov/document/975-licensee-tx-llc-hearing-designation-order</a> or by using the search function on the
Commission's Electronic Comment Filing System (ECFS) webpage at
<a href="http://www.fcc.gov/ecfs">www.fcc.gov/ecfs</a>. Alternative formats are available to persons with
disabilities by sending an email to <a href="/cdn-cgi/l/email-protection#b5f3f6f6808581f5d3d6d69bd2dac3"><span class="__cf_email__" data-cfemail="d7919494e2e7e397b1b4b4f9b0b8a1">[email protected]</span></a> or by calling the
Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice), (202)
418-0432 (TTY).
Summary of the Hearing Designation Order
By an application (Transfer Application) filed with the Commission
on March 14, 2023, and last amended on October 29, 2024, Luz Maria
Rygaard (Rygaard), a U.S. citizen, sought Commission consent to the
transfer of control of 97.5 Licensee TX, LLC (97.5 Licensee) to Lorena
Margarita Per[eacute]z Toscano (Toscano), a citizen of Mexico. 97.5
Licensee is the licensee of three broadcast radio stations, KBNA-FM,
KAMA(AM), and KQBU(AM), each of which is authorized by the Commission
to serve El Paso, Texas. Contemporaneously with the submission of the
Transfer Application, the Parties also filed a related Petition for
Declaratory Ruling seeking Commission approval for the stations to
become 100% foreign-owned consistent with the Commission's Rules and
governing statute.
Section 310(d) of the Act, 47 U.S.C. 310(d), provides that no
station license shall be transferred or assigned unless the Commission,
on application, determines that the public interest, convenience, and
necessity will be served thereby. If the transaction would not violate
a statute or rule, the Commission considers whether it could result in
public interest harms by substantially frustrating or impairing the
objectives or implementation of the Act or related statutes. Under
Section 309(d) of the Act, ``[i]f a substantial and material question
of fact is presented or if the Commission for any reason is unable to
find that grant of the application would be consistent [with the public
interest, convenience, and necessity],'' it must formally designate the
application for a hearing in accordance with Section 309(e) of the Act.
47 U.S.C. 309(d)-(e).
After conducting a detailed review of the record in this
proceeding, including information and materials provided by the parties
in response to letters of inquiry from the Bureau, the Bureau believes
that substantial and material questions of fact exist regarding whether
the parties have engaged in an unauthorized transfer of control, as
well as engaged in misrepresentations and/or lack of candor in their
dealings with the Commission. Accordingly, based on the record before
the Commission, we are unable to find that grant of the Transfer
Application would be consistent with the public interest, as required
by sections 309(a), 309(e), and 310(d) of the Communications Act of
1934, as amended (the Act). The Transfer Application is being held in
abeyance pending resolution of this proceeding.
Unauthorized Transfer of Control to a Foreign Citizen. The record
developed by the Bureau thus far appears to indicate that there has
been an unauthorized transfer of control of the stations to a foreign
national. Ceding control of a station to anyone other than the
authorized licensee of the station without prior Commission approval is
a violation of the Act and the Commission's rules. In determining
whether an individual or entity has de facto control of a broadcast
applicant or licensee, the Commission traditionally looks to whether
the party in question establishes the policies governing station
programming, personnel, and finances.
In this case, evidence provided by the parties fails to
substantiate conclusively that Rygaard established the policies
governing the Stations' programming, personnel, and finances of the
stations. In addition, among the factors suggesting that an
unauthorized transfer has occurred are that a company owned by the
proposed buyer had begun programming and operating the stations in
December 2022 pursuant to an unwritten agreement, and that the proposed
buyer acquired the right to collect a multi-million dollar debt owed by
the stations at the same time that Rygaard purchased control of the
stations for a nominal amount. The Bureau's investigation also
determined that the parties are related (as cousins) and that Toscano
and her father have connections to the earlier ownership and operation
of the stations, raising further questions about Rygaard's role as
licensee.
Misrepresentations and/or Lack of Candor. The Commission and the
courts have recognized that ``[t]he FCC relies heavily on the honesty
and probity of its licensees in a regulatory system that is largely
self-policing.'' Contemporary Media, Inc. v. FCC, 214 F.3d 187, 193
(D.C. Cir. 2000) (Contemporary Media). As such, full and clear
disclosure of all material facts in every application is essential to
the efficient administration of the Commission's licensing process. The
proper analysis of an application depends on the accuracy and
completeness of information and data that only the applicant can
provide.
Ultimately, misrepresentation and lack of candor raise serious
concerns as to the likelihood that the Commission can rely on an
applicant, permittee, or licensee to be truthful. Policy Regarding
Character Qualifications In Broadcast Licensing Amendment of Rules of
Broadcast Practice and Procedure Relating to Written Responses to
Commission Inquiries and Making of Misrepresentations to the Commission
by Permittees and Licensees, Report, Order, and Policy Statement, 102
FCC 2d 1179, 1209-11, paras. 54-61 (1986 Character Policy Statement).
Misrepresentation is a false statement of fact made with intent to
deceive the Commission and lack of candor is a concealment, evasion, or
other failure to be fully informative, accompanied by an intent to
deceive the Commission. Both are proscribed by the Rules at Sec.
1.17(a)(1), which provides that no person shall, in any written or oral
statement of fact, intentionally provide material factual information
that is incorrect or intentionally omit material information that is
necessary to prevent any material factual statement that is made from
being incorrect or misleading. 47 CFR 1.17(a)(1).
Based on the record developed, the Bureau believes that Rygaard and
Toscano have not been fully forthcoming in either the Transfer
Application or in the responses to the Bureau's investigation. Rather,
the evidence raises serious concerns that the parties have consistently
engaged in misrepresentation and/or lack of candor before the
Commission with the result of misleading the Commission as to who
actually controls the stations. Accordingly, we find there are
substantial and material questions of fact as to whether the parties
have lacked candor and/or made
[[Page 8875]]
misrepresentations to the Commission, which must be explored at
hearing.
The Parties' Responses to the Bureau's Inquiries. It is well-
established that the Commission has broad investigatory authority
pursuant to its licensing function. See., e.g., 47 U.S.C. 154(i)
through (j), 403. Consistent with this authority, Sec. 73.1015 of the
Rules authorizes the Commission to require from a broadcast licensee
written statements of fact relevant to any matter within its
jurisdiction. 47 CFR 73.1015. It is important that licensees, as well
as applicants and permittees, respond fully and honestly to such
requests for information and in a timely manner, as the failure to do
so impedes the Commission's ability to carry out its responsibilities.
In the present case, the parties' responses often lacked credible
explanations and sufficient detail, and in many cases failed to fully
respond to the Bureau's request for information. Accordingly, the
Bureau finds that a hearing is also necessary to confirm whether the
Parties violated Sec. 73.1015 of the Rules.
There are Substantial and Material Questions of Fact Concerning the
Parties' Qualifications to be a Commission Licensee. The character of
an applicant is one of the essential factors that the Commission
considers in determining whether an applicant has the requisite
qualifications to be a Commission licensee. 47 U.S.C. 308(b). Because a
defect in character would warrant the Commission's refusal to grant a
license in the original application, it likewise would support a
Commission determination to revoke a license or permit. 47 U.S.C.
312(a)(2). The same is true with regard to whether an existing licensee
has displayed the behavior and truthfulness to remain a licensee.
The Commission has long recognized that, in assessing character
qualifications in broadcasting matters, the relevant character traits
the Commission is concerned with ``are those of `truthfulness' and
`reliability.' '' 1986 Character Policy Statement, 102 F.C.C.2d at
1209, para. 55. Misrepresentation and a lack of candor demonstrate a
failure to be truthful under the Commission's character qualifications
policy, and parties that deliberately make misrepresentations or lack
candor may engage in disqualifying conduct. See 1986 Character Policy
Statement 102 F.C.C.2d at 1210-11, paras. 60-61; and Contemporary
Media, 214 F.3d at 196. The Commission has also recognized that ``any
violations of the Communications Act, Commission rules or Commission
policies can be said to have a potential bearing on character
qualifications.'' 1986 Character Policy Statement, 102 FCC 2d at 1209,
para. 56. It therefore is appropriate to consider ``any violation of
any provision of the Act, or of our Rules or policies, as possibly
predictive of future conduct and, thus, as possibly raising concerns
over the licensee's future truthfulness and reliability.'' 1986
Character Policy Statement, 102 FCC 2d. at 1209-10, para. 57. Such
violations also can be a basis for revocation of a license or
construction permit. 47 U.S.C. 312(a).
In the present case the Bureau finds that the record raises
substantial and material questions of fact as to both Rygaard's and
Toscano's character, in terms of whether each has the propensity to
deal honestly with the Commission and to comply with the Act, the
Rules, and Commission policies. Therefore, the Bureau designates the
matter for hearing to determine whether the parties have the necessary
character qualifications to become, or remain, a Commission licensee.
Accordingly, it is ordered that, pursuant to Sections 308, 309(d),
309(e), 310(b), 310(d), and 312(a) through (c) of the Act, 47 U.S.C.
308, 309(d), 309(e), 310(b), 310(d), and 312(a) through (c), the
applications and licenses ARE DESIGNATED FOR HEARING before an FCC
administrative law judge, at a time and location specified in a
subsequent Order, upon the following issues:
(a) To determine whether Luz Maria Rygaard is and/or has been
exercising affirmative control of KBNA-FM, KAMA(AM), and KQBU(AM).
(b) To determine whether there has been an unauthorized de facto
transfer of control of KBNA-FM, KAMA(AM), and KQBU(AM) to Pro Radio LLC
and/or Lorena Margarita Per[eacute]z Toscano in violation of Sections
310(b) and 310(d) of the Act, 47 U.S.C. 310(b), 310(d), and Sec. Sec.
1.5000 et seq. and 73.3540(a) of the Commission's Rules, 47 CFR 1.5000
et seq., 73.3540(a).
(c) To determine whether Luz Maria Rygaard engaged in
misrepresentation and/or lack of candor in applications and
communications with the Commission in violation of Sec. Sec. 1.17 and/
or 73.1015 of the Commission's Rules, 47 CFR 1.17, 73.1015.
(d) To determine, in light of evidence adduced regarding the
foregoing issues (a) through (c) whether Luz Maria Rygaard possesses
the character qualifications to be or remain a Commission licensee and
whether the licenses for KBNA-FM, KAMA(AM), and KQBU(AM) should be
revoked consistent with Section 312(a)(1) of the Act, 47 U.S.C.
312(a)(1).
(e) To determine whether Lorena Margarita Per[eacute]z Toscano has
exercised and continues to exercise de facto control over KBNA-FM,
KAMA(AM), and KQBU(AM).
(f) To determine whether Lorena Margarita Per[eacute]z Toscano
engaged in misrepresentation and/or lack of candor in applications and
communications with the Commission in violation of Sec. Sec. 1.17 and/
or 73.1015 of the Commission's Rules, 47 CFR 1.17, 73.1015.
(g) To determine, in light of evidence adduced regarding the
foregoing issues (a), (b), (e), and (f), whether Lorena Margarita
Per[eacute]z Toscano possesses the character qualifications to be a
Commission licensee.
(h) To determine, in light of evidence adduced regarding the
foregoing issues whether the pending applications seeking Commission
consent to the transfer of control of the licenses of KBNA-FM,
KAMA(AM), and KQBU(AM) from Luz Maria Rygaard to Lorena Margarita
Per[eacute]z Toscano should be granted, dismissed, or denied.
It is further ordered that, pursuant to Sections 309(e) and 312(c)
of the Act, 47 U.S.C. 309(e), 312(c), and Sec. Sec. 1.91(c)
and1.221(c) of the Commission's Rules, 47 CFR 1.91(c), 1.221(c), to
avail themselves of the opportunity to be heard and to present evidence
at a hearing in this proceeding, Luz Maria Rygaard and 97.5 Licensee
TX, LLC, in person or by an attorney, shall file with the Commission,
within twenty (20) days of the mailing of this Hearing Designation
Order, Order to Show Cause Why an Order of Revocation Should not be
Issued, and Notice of Opportunity for Hearing, a written appearance
stating that they will appear at the hearing and present evidence on
the issues specified above.
It is further ordered that if Luz Maria Rygaard waives her rights
to a hearing pursuant to Sec. 1.92(a)(1) or (a)(3) of the Rules, 47
CFR 1.92(a)(1) or (a)(3), she may submit a timely written statement
denying or seeking to mitigate or justify the circumstances or conduct
complained of in the order to show cause.
It is further ordered that, pursuant to Sec. Sec. 1.91 and 1.92 of
the Commission's Rules, 47 CFR 1.91 and 1.92, that if Luz Maria Rygaard
fails to file a written appearance within the time specified above, or
has not filed prior to the expiration of that time a petition to
accept, for good cause shown, such written appearance beyond expiration
of said 20 days, the right to a hearing shall be deemed waived. Where a
hearing is waived, the Administrative Law Judge shall issue an order
terminating the
[[Page 8876]]
hearing proceeding and certifying the case to the Commission.
It is further ordered that, pursuant to Sec. 1.221(c) of the
Commission's rules, 47 CFR 1.221(c), if Luz Maria Rygaard fails to file
a written appearance within the time specified above, a petition to
dismiss without prejudice, or a petition to accept for good cause shown
an untimely written appearance, the captioned applications shall be
dismissed with prejudice for failure to prosecute.
It is further ordered that, pursuant to Section 309(e), 47 U.S.C.
309(e), to avail herself of the opportunity to be heard and to present
evidence at a hearing in this proceeding, Lorena Margarita Per[eacute]z
Toscano, in person or by an attorney, shall file with the Commission,
within twenty (20) days of the mailing of this Hearing Designation
Order, Order to Show Cause Why an Order of Revocation Should not be
Issued, and Notice of Opportunity for Hearing, a written appearance
stating that he will appear at the hearing and present evidence on the
issues specified above at a hearing.
It is further ordered that, pursuant to Sec. 1.221(c) of the
Commission's rules, 47 CFR 1.221(c), if Lorena Margarita Per[eacute]z
Toscano fails to file within the time specified above a written
appearance, a petition to dismiss without prejudice, or a petition to
accept for good cause shown an untimely written appearance, the
captioned applications shall be dismissed with prejudice for failure to
prosecute.
It is further ordered that the Chief, Enforcement Bureau, shall be
made a party to this proceeding without the need to file a written
appearance.
It is further ordered that, in accordance with Section 312(d) of
the Act, 47 U.S.C. 312(d), and Sec. 1.91(d) of the Commission's rules,
47 CFR 1.91(d), the burden of proceeding with the introduction of
evidence and the burden of proof with respect to the issues (a) through
(g) above, shall be upon the Commission's Enforcement Bureau.
It is further ordered that, pursuant to Section 309(e) of the Act,
47 U.S.C. 309(e), and Sec. 1.254 of the Commission's rules, 47 CFR
1.254, the burden of proceeding with the introduction of evidence and
the burden of proof shall be upon Luz Maria Rygaard and Lorena
Margarita Per[eacute]z Toscano as to issue (h) above.
It is further ordered that a copy of each document filed in this
proceeding subsequent to the date of adoption of this document shall be
served on the counsel of record appearing on behalf of the Chief,
Enforcement Bureau. Parties may inquire as to the identity of such
counsel by calling the Investigations & Hearings Division of the
Enforcement Bureau at (202) 418-1420. Such service copy shall be
addressed to the named counsel of record, Investigations & Hearings
Division, Enforcement Bureau, Federal Communications Commission, 45 L
Street NE, Washington, DC 20554.
It is further ordered that the parties to the captioned application
shall, pursuant to section 311(a)(2) of the Act, 47 U.S.C. 311(a)(2),
and Sec. 73.3594 of the Commission's rules, 47 CFR 73.3594, give
notice of the hearing within the time and in the manner prescribed in
such Rule, and shall advise the Commission of the satisfaction of such
requirements as mandated by Sec. 73.3594 of the Commission's rules, 47
CFR 73.3594.
It is further ordered that copies of this Hearing Designation
Order, Order to Show Cause Why an Order of Revocation Should not be
Issued, and Notice of Opportunity for Hearing shall be sent via
Certified Mail, Return Receipt Requested, and by regular first-class
mail to:
97.5 Licensee TX, LLC, 2100 Trawood Drive, El Paso, TX 79935
Luz Maria Rygaard, 1034 Sunflower Trail, Austin, TX 78745
Lorena Margarita P[eacute]rez Toscano, Bosques de Olivos 449, Bosques
de las Lomas, CDMX, 11700, Mexico
Frank R. Montero, Esq., Fletcher, Heald & Hildreth, PLC, 1300 N 17th
Street, Suite 1100, Arlington, VA 22209, Counsel for 97.5 Licensee TX,
LLC, Luz Maria Rygaard, and Lorena Margarita P[eacute]rez Toscano.
It is further ordered that a copy of this document, or a summary
thereof, shall be published or a summary thereof published in the
Federal Register.
Federal Communications Commission.
Thomas Horan,
Chief of Staff, Media Bureau.
[FR Doc. 2026-03588 Filed 2-23-26; 8:45 am]
BILLING CODE 6712-01-P
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