[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 177 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 177

    To amend the Communications Act of 1934 to require the Federal 
 Communications Commission to continue and improve efforts to promote 
  diversity in media ownership, management, and programming, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

   Mrs. Collins of Illinois introduced the following bill; which was 
                 referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
    To amend the Communications Act of 1934 to require the Federal 
 Communications Commission to continue and improve efforts to promote 
  diversity in media ownership, management, and programming, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Diversity in Media 
Act of 1995''.
    (b) References.--References in this Act to ``the Act'' are 
references to the Communications Act of 1934 (47 U.S.C. 151 et seq.).

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the Communications Act of 1934 was enacted to ensure 
        that the allocation of the various broadcast media would 
        promote the expression of diverse opinions and the rapid and 
        vigorous exchange of information;
            (2) the Federal Communications Commission has formulated 
        policies to promote diversity in the ownership and management 
        of broadcast media;
            (3) the United States Supreme Court has affirmed the 
        constitutionality of the Federal Communications Commission's 
        policies to promote diversity; and
            (4) it is therefore necessary to codify and to extend the 
        policies and procedures that promote diversity in the 
        ownership, management, and programming of the broadcast media.

SEC. 3. FINDINGS AND PURPOSES REGARDING DISCRIMINATION.

    The Act is amended by inserting after section 2 thereof the 
following new section:

            ``findings and purposes regarding discrimination

    ``Sec. 2A. (a) The Congress hereby finds that--
            ``(1) minority and female Americans have been and continue 
        to be unjustly deprived of full participation in the common 
        carrier, private radio, and broadcasting communications 
        services regulated under this Act;
            ``(2) an efficient American telecommunications industry is 
        of grave importance to the interstate and foreign commerce of 
        the Nation;
            ``(3) minority and female Americans have not fully 
        participated as employees or owners of telecommunications 
        facilities and this lack of participation greatly decreases the 
        efficiency of the American telecommunications industry;
            ``(4) participation by minority and female Americans as 
        owners or employees of telecommunications facilities materially 
        contributes to the diversity of information available to the 
        public through these facilities;
            ``(5) such participation promotes the public interest not 
        only in expression of diverse opinions, but in promoting the 
        sense of self-esteem and integrity that is essential to 
        reducing racial tensions and social conflicts and motivating 
        individuals to seek and take productive places in society; and
            ``(6) reliance on indirect structural regulation of 
        diversity of ownership and control is an important and 
        reasonable method to carry out the fundamental objectives of 
        the First Amendment in promoting free and open expression of 
        diverse opinions.
    ``(b) It is a purpose of this Act to provide for greater diversity 
of ownership and control of telecommunications in the domestic and 
international marketplace by requiring persons subject to regulation 
under this Act to develop and implement equal opportunity programs as 
part of their employment practices.''.

SEC. 4. DEFINITIONS.

    Section 3 of the Act (47 U.S.C. 153) is amended by adding at the 
end thereof the following new paragraphs:
    ``(hh) `Minority' means American Indians and Alaska Natives; Asians 
and Pacific Islanders; Blacks, not of Hispanic origin; and Hispanics.
    ``(ii) An entity is `owned or controlled' by members of a minority 
or by women if--
            ``(1) in the case of a sole proprietorship, the sole 
        proprietor is a member of a minority or is a woman;
            ``(2) in the case of a partnership, a majority of the 
        equity interest held by general partners is held by members of 
        a minority or women, and the general partners hold at least 20 
        percent of the equity interest in the partnership;
            ``(3) in the case of a corporation with only one class of 
        voting securities, a majority of the voting securities are held 
        by members of a minority or women; and
            ``(4) in the case of a corporation with more than one class 
        of voting securities, members of a minority or women hold 
        securities controlling a majority of the votes and representing 
        at least 20 percent of the equity interest in the 
        corporation.''.

SEC. 5. ANNUAL REPORT ON OWNERSHIP AND CONTROL BY MINORITIES AND WOMEN.

    Section 303 of the Act (47 U.S.C. 303) is amended by adding at the 
end thereof the following:
    ``(v) Require, by regulation, that each holder of a license or 
permit for any media of mass communications submit to the Commission an 
annual report describing, in such detail as that regulation may 
require, the proportion of the ownership and control of such holder 
that is held by minorities and women.''.

SEC. 6. PREFERENCES AND ENHANCEMENTS IN COMPARATIVE SELECTIONS.

    Section 309(e) of the Act is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end thereof the following new 
        paragraphs:
    ``(2) When the Commission has so designated for a comparative 
hearing two or more mutually exclusive applications, the Commission--
            ``(A) determines if an applicant is entitled to prevail 
        based on the extent to which selection of the applicant will 
        increase diversification of ownership;
            ``(B) determines, if an applicant is not so entitled to 
        prevail, if an applicant is entitled to prevail based on the 
        extent to which the ownership and management of the applicant 
        are functionally integrated; and
            ``(C) determines, if an applicant is not so entitled to 
        prevail, the applicant that, based on the factors reviewed 
        under subparagraphs (A) and (B), will best promote the public 
        interest, convenience, and necessity.
    ``(3) In evaluating which applicants will increase diversification 
under paragraph (2)(A), the Commission shall--
            ``(A) award a demerit based on the extent of ownership in 
        other media of mass communication; and
            ``(B) award an enhancement credit based on the extent to 
        which the applicant is owned or controlled by minorities or 
        women.
    ``(4) In evaluating applicants' integration of ownership and 
management under paragraph (2)(B), the Commission shall award 
enhancement credits for the following characteristics (listed in 
descending order of the magnitude of the credit which may be awarded):
            ``(A) The extent to which the applicant is owned or 
        controlled by minorities or women.
            ``(B) The extent of the applicant's past local residence 
        and participation in local civic affairs.
            ``(C) The extent to which the applicant has previous 
        broadcast or other business experience transferable to 
        broadcasting.''.

SEC. 7. PREFERENCES AND ENHANCEMENTS IN CONNECTION WITH RANDOM 
              SELECTIONS.

    (a) Definition of Media of Mass Communication.--Section 
309(i)(3)(C)(i) of the Act is amended--
            (1) by inserting after ``direct broadcast satellite 
        service,'' the following: ``instructional television fixed 
        service, operational fixed and fixed satellite services (if 
        used for mass media purposes),''; and
            (2) by inserting before the period at the end thereof the 
        following: ``, without regard to whether such services are 
        distributed for a fee or whether the reception system is 
        individually addressed''.
    (b) Definition of System of Random Selection.--Section 309(i)(3)(C) 
is further amended by adding at the end thereof the following new 
paragraph:
    ``(iii) The term `system of random selection' includes any 
selection system that uses chance, in whole or in part, to select one 
applicant from a group or pool of qualified applicants, without regard 
to whether that selection system is used alone or in conjunction with 
any other mechanism (such as a point system, comparative hearing, or 
other method) as a tie-breaker.''.
    (c) Restrictions on Selection Criteria Used in Conjunction With 
Random Selections.--Section 309(i)(4) of the Act is amended by adding 
at the end thereof the following:
    ``(D) If the Commission establishes any point system, comparative 
criteria, or other selection criteria for use in conjunction with a 
system of random selection to select among mutually exclusive 
applicants for licenses for media of mass communication, each such 
point system, comparative criteria, or other selection system shall 
provide for the granting of a significant preference or enhancement to 
any applicant that is owned or controlled by members of a minority 
group or by women.''.

SEC. 8. TAX CERTIFICATES AND DISTRESS SALES.

    Title I of the Act is amended by adding at the end thereof the 
following new section:

``SEC. 10. TAX CERTIFICATES AND DISTRESS SALES.

    ``(a) Issuance of Certificate.--When determining whether to approve 
an application for consent by the Commission to an assignment of a 
license or construction permit or to a transfer of control of a 
corporate licensee or permittee for a broadcast, common carrier, 
private radio, or other telecommunications facility to an assignee or 
transferee that is owned or controlled by members of a minority or by 
women, the Commission, after determining the qualifications of the 
applicant under section 308(b), shall issue a tax certificate under 
section 1071 of the Internal Revenue Code of 1954 (relating to gain 
from sale or exchange to effectuate policies of Federal Communications 
Commission) if the Commission finds such action to be consistent with 
section 2A.
    ``(b) Findings Required.--When considering a license which has been 
designated for a revocation hearing, or a license renewal application 
which has been designated for hearing, the Commission shall permit the 
licensee to assign or transfer its license to an applicant that is 
owned or controlled by members of a minority or by women, if--
            ``(1) the applicant is qualified under section 308(b);
            ``(2) the maximum percentage of the fair market value, as 
        of the date of the filing of the application for transfer or 
        assignment, or as of the date of designation, whichever is 
        lower, of the facility to be paid by the assignee or transferee 
        for the facility does not exceed--
                    ``(A) 75 percent, if the assignment or transfer is 
                proposed after designation for hearing but before the 
                hearing begins;
                    ``(B) 50 percent, if the assignment or transfer is 
                proposed after the first prehearing conference but 
                before the order of the administrative law judge 
                involved; or
                    ``(C) 25 percent, if the assignment or transfer is 
                proposed after such order but before a final ruling of 
                the Commission denying the license renewal or revoking 
                the license; and
            ``(3) there has been no final ruling of the Commission 
        denying the license renewal or revoking the license.''.

SEC. 9. EQUAL EMPLOYMENT OPPORTUNITY.

    Title I of the Act is further amended by adding at the end the 
following new section:

``SEC. 11. EQUAL EMPLOYMENT OPPORTUNITY.

    ``(a) Application of Section.--This section shall apply to the 
following:
            ``(1) Licensees or permittees of commercially operated 
        amplitude modulation, frequency modulation, television, or 
        international broadcast stations, and licensees or permittees 
        of public broadcast stations.
            ``(2) Commercially operated amplitude modulation, frequency 
        modulation, television, or international broadcast networks, 
        and public broadcast station networks.
            ``(3) Common carriers.
            ``(4) Satellite operators, licensees, and permittees, 
        whether licensed as a broadcaster, common carrier, or private 
        or other service.
            ``(5) Headquarters operations of any of the entities listed 
        in paragraph (1) through paragraph (4).
    ``(b) Equal Opportunity Required.--Equal opportunity in employment 
shall be afforded by each entity specified in subsection (a) to all 
qualified persons, and no person shall be discriminated against in 
employment because of race, color, religion, national origin, age, or 
sex.
    ``(c) Program Required.--Any entity specified in subsection (a) 
which has 5 or more employees shall establish, maintain, and execute a 
positive continuing program of specific practices designed to ensure 
equal opportunity in every aspect of its employment policy and 
practice. Under the terms of its programs, it shall--
            ``(1) define the responsibility of each level of management 
        to ensure a positive application and vigorous enforcement of 
        its policy of equal opportunity, and establish a procedure to 
        review and control managerial and supervisory performance;
            ``(2) inform its employees and recognized employee 
        organizations of the equal employment opportunity policy and 
        program and enlist their cooperation;
            ``(3) communicate its equal employment opportunity policy 
        and program and its employment needs to sources of qualified 
        applicants without regard to race, color, religion, national 
        origin, age, or sex, and solicit their recruitment assistance 
        on a continuing basis;
            ``(4) conduct a continuing program to exclude every form of 
        prejudice or discrimination based on race, color, religion, 
        national origin, age, or sex, from its personnel policies and 
        practices and working conditions; and
            ``(5) conduct a continuing review of job structure and 
        employment practices and adopt positive recruitment, training, 
        job design, and other measures needed to ensure genuine 
        equality of opportunity to participate fully in all its 
        organizational units, occupations, and levels of 
        responsibility.
    ``(d) Regulations Required.--
            ``(1) Not later than 180 days after the date of enactment 
        of this section, and after notice and opportunity for hearing, 
        the Commission shall prescribe rules to carry out this section.
            ``(2) Such rules shall specify the terms under which an 
        entity specified in subsection (a) shall, to the extent 
        possible--
                    ``(A) disseminate its equal opportunity program to 
                job applicants, employees, and those with whom it 
                regularly does business;
                    ``(B) use minority organizations, organizations for 
                women, media, educational institutions, and other 
                potential sources of minority and female applicants, to 
                supply referrals whenever jobs are available in its 
                operation;
                    ``(C) train minority and female employees, interns, 
                or both, or provide assistance to minority educational 
                institutions and educational institutions for women so 
                that they can provide such training, except that such 
                requirement is not mandatory for entities specified in 
                subsection (a) with fewer than fifteen full-time 
                employees;
                    ``(D) evaluate its employment profile and job 
                turnover against the availability of minorities and 
                women in its labor recruitment area;
                    ``(E) undertake to offer promotions of minorities 
                and women to positions of greater responsibility;
                    ``(F) encourage minority and female entrepreneurs 
                to conduct business with all parts of its operation; 
                and
                    ``(G) analyze the results of its efforts to 
                recruit, hire, promote, and use the services of 
                minorities and women and explain any difficulties 
                encountered in implementing its equal employment 
                opportunity program.
            ``(3) Such rules also shall require an entity specified in 
        subsection (a) to file an annual statistical report identifying 
        by race and sex the number of employees in each of the 
        following full-time and part-time job categories: (A) Corporate 
        Manager; (B) General Manager; (C) Chief Technician; (D) 
        Comptroller; (E) General Sales Manager; (F) Production Manager; 
        (G) Managers; (H) Professionals; (I) Technicians; (J) Sales; 
        (K) Office and Clerical; (L) Skilled Craftspersons; (M) 
        Semiskilled Operators; (N) Unskilled Laborers; (O) Service 
        Workers.''.

SEC. 10. REPORT TO CONGRESS.

    Section 4(k) of the Communications Act of 1934 (47 U.S.C. 154(k)) 
is amended by redesignating paragraphs (3) and (4) as paragraphs (4) 
and (5), respectively, and by inserting after paragraph (2) the 
following new paragraph:
            ``(3) such information and data as may be of value in 
        determining the extent to which minorities and women have 
        participated, and will, under the rules and policies of the 
        Commission, have opportunities to participate, as employees and 
        owners of telecommunications facilities;''.

SEC. 11. ADDITIONAL PROVISIONS.

    Section 309 of the Communications Act of 1934 is further amended by 
adding at the end thereof the following new subsection:
    ``(k)(1) Consistent with the objective of promoting diversity of 
ownership of the media of mass communications, the Commission shall 
include, in any criteria used to limit number, eligibility, or the 
community (of license) of applications for new licenses for media of 
mass communications (as that term is used in subsection (i) of the 
Act), provisions that will increase the diversity of the ownership 
among the new licenses granted.
    ``(2) When specifying application acceptance requirements for AM 
clear-channel stations, the Commission shall accept all technically 
qualified applications which are owned or controlled by members of a 
minority or by women.
    ``(3) As used in paragraph (2) of this subsection, the term `AM 
clear-channel stations' means new unlimited-time stations, nighttime 
operation by an authorized daytime station, or a major change in 
facilities resulting in operation on an AM channel (A) on which a 
dominant station or stations render service over a wide area and (B) 
which is cleared of objectionable interference within its primary 
service area and over all or a substantial portion of its secondary 
service areas.''.
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