[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4067 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4067

 To establish the Commission for the Future of Public Broadcasting and 
 authorize appropriations for the Corporation for Public Broadcasting, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 1998

Mr. Tauzin (for himself and Mr. Markey) introduced the following bill; 
            which was referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL


 
 To establish the Commission for the Future of Public Broadcasting and 
 authorize appropriations for the Corporation for Public Broadcasting, 
                        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.

    This Act may be cited as the ``Public Broadcasting Reform Act of 
1998''.

       TITLE I--COMMISSION FOR THE FUTURE OF PUBLIC BROADCASTING

SEC. 101. ESTABLISHMENT.

    There is established a commission to be known as the Commission for 
the Future of Public Broadcasting (in this title referred to as the 
``Commission'').

SEC. 102. MEMBERSHIP.

    (a) Appointment.--The Commission shall be composed of 9 members 
appointed not later than 30 days after the date of the enactment of 
this Act, as follows:
            (1) 2 members appointed by the Speaker of the House of 
        Representatives.
            (2) 1 member appointed by the Minority Leader of the House 
        of Representatives.
            (3) 2 members appointed by the Majority Leader of the 
        Senate.
            (4) 1 member appointed by the Minority Leader of the 
        Senate.
            (5) 2 members appointed by the President.
            (6) 1 member who shall be selected by a majority of the 
        other members and then appointed by the President, and who 
        shall serve as the Chair of the Commission.
    (b) Qualifications.--Each individual appointed to be a member of 
the Commission shall have extensive experience or expertise in--
            (1) broadcasting or other mass media;
            (2) education, the arts, or science; or
            (3) business or corporate finance.
    (c) Terms.--Each member of the Commission shall be appointed for 
the life of the Commission. A vacancy in the Commission shall not 
affect the powers of the Commission and shall be filled in the manner 
in which the original appointment was made.
    (d) Prohibition of Additional Compensation.--Members shall serve 
without pay.
    (e) Quorum.--5 members of the Commission shall constitute a quorum, 
but a lesser number may hold hearings.
    (f) Meetings.--The Commission shall meet at the call of the 
Chairperson or a majority of the members of the Commission. The 
Chairperson shall call the first meeting of the Commission not later 
than 60 days after the date of the enactment of this Act.

SEC. 103. FUNCTIONS.

    (a) Study.--The Commission shall conduct a study to identify and 
analyze various options for actions to accomplish the following 
objectives:
            (1) Financial support.--Providing financial assistance to 
        licensees and permittees of public broadcast stations for--
                    (A) ongoing support for--
                            (i) providing public telecommunications 
                        services; and
                            (ii) costs to public broadcast stations of 
                        utilizing new technologies, including advanced 
                        television and digital television services; and
                    (B) costs of converting public broadcast stations 
                to utilization of new technologies (including advanced 
                television and digital television services), which may 
                involve limiting financial assistance by the 
                Corporation for Public Broadcasting to the equivalent 
                of funding for one station per market.
            (2) Replacing federal appropriations for cpb.--Capitalizing 
        and operating a fiscal mechanism or entity to provide financial 
        assistance to the Corporation for Public Broadcasting that 
        replaces Federal appropriations for such purpose.
            (3) Reducing federal spending for public broadcasting.--
        Reducing Federal spending for the support of public 
        broadcasting, including by--
                    (A) eliminating the Corporation for Public 
                Broadcasting;
                    (B) limiting Federal financial assistance to the 
                equivalent of funding for one public television 
                broadcast station per market; and
                    (C) selling or leasing certain television 
                broadcasting stations licensed to public television 
                broadcasting entities, subject to such requirements as 
                may be necessary to provide that--
                            (i) such sales and leases result in each 
                        market being limited to only one public 
                        television broadcast station that receives 
                        Federal financial assistance;
                            (ii) for each station sold or leased, an 
                        amount of the sale or lease proceeds 
                        approximating the net Federal assistance to 
                        such station over time is provided to the 
                        Corporation for Public Broadcasting (or such 
                        other entity as may replace the Corporation) 
                        for use in supporting local public broadcasting 
                        services; and
                            (iii) such sales and leases do not result 
                        in viewers losing access to public broadcast 
                        services.
            (4) Fee for exemption from public-interest broadcasting 
        requirements.--Establishing, by law, authority for television 
        broadcasters to opt to pay fees as reimbursement to the public 
        for relieving the broadcasters from obligations related to 
        fulfilling content-based public interest broadcasting 
        requirements and for collection of such fees to replace or 
        offset Federal appropriations to the Corporation for Public 
        Broadcasting.
            (5) Public broadcasting programming.--Carrying out the 
        goals of public broadcasting by--
                    (A) enhancing the noncommercial mission of public 
                television and radio;
                    (B) preventing any reduction in the ability or 
                willingness of public broadcasters to fulfill 
                noncommercial objectives;
                    (C) expanding the delivery of programming that is 
                locally produced or concerns issues of local interest;
                    (D) enhancing delivery and availability of--
                            (i) high quality cultural programming 
                        specifically designed for historically 
                        underserved audiences, particularly minority 
                        audiences; and
                            (ii) high quality educational programming 
                        specifically designed for children;
                    (E) making such cultural and educational 
                programming, materials, and services available to 
                schools and libraries in an efficient and cost-
                effective manner; and
                    (F) establishing schedules for broadcasting that 
                reduce or eliminate simultaneous broadcasting of 
                identical programming by different stations and 
                unnecessarily duplicative broadcasting.
    (b) Report.--Not later than 120 days after the first meeting of the 
Commission pursuant to section 102(f), the Commission shall submit a 
report to the Congress that--
            (1) sets forth various options for actions to accomplish 
        the objectives specified in subsection (a) of this section;
            (2) analyzes the advantages and disadvantages of each such 
        proposed action;
            (3) includes the recommendations of the Commission 
        regarding the most effective, efficient, and appropriate 
        actions to ensure the future ability of public broadcasting in 
        the United States to carry out its noncommercial mission; and
            (4) includes proposals for administrative, legislative, and 
        other actions to carry out such recommendations.

SEC. 104. POWERS.

    (a) Assistance From Federal Agencies.--
            (1) Obtaining official data.--The Commission may secure, 
        directly from any department or agency of the United States, 
        information necessary to enable it to carry out this title. 
        Upon request of the Commission, the head of the department or 
        agency shall furnish such information to the Commission.
            (2) Support services.--Upon request of the Commission, the 
        National Telecommunications and Information Administration 
        shall provide to the Commission such administrative and 
        research personnel, support services, and facilities as are 
        necessary for the Commission to carry out its responsibilities 
        under this title. The Commission shall not be required to 
        reimburse the Administration for any personnel, support 
        services, and facilities provided pursuant to this paragraph.
    (b) Hearings and Sessions.--The Commission may, for the purpose of 
carrying out this title, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Commission 
considers appropriate.
    (c) Gifts, Bequests, and Devises.--The Commission may accept, use, 
and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Commission. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in the Treasury and shall be available for 
disbursement upon order of the Commission.
    (d) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.

SEC. 105. DEFINITIONS.

    For purposes of this title, the terms ``public broadcasting 
entity'', ``public broadcast station'', and ``public telecommunications 
services'' having the meanings given such terms in section 397 of the 
Communications Act of 1934 (47 U.S.C. 397).

SEC. 106. TERMINATION.

    The Commission shall terminate 60 days after submitting the report 
required under section 103(b).

    TITLE II--AMENDMENTS TO PUBLIC TELECOMMUNICATIONS PROVISIONS OF 
                       COMMUNICATIONS ACT OF 1934

SEC. 201. PREVENTION OF UNJUST ENRICHMENT IN SALE OF OVERLAPPING PUBLIC 
              BROADCAST STATIONS.

    (a) In General.--Subpart E of part IV of title III of the 
Communications Act of 1934 (47 U.S.C. 397 et seq.) is amended by adding 
at the end the following new section:

``SEC. 399C. PREVENTION OF UNJUST ENRICHMENT IN SALE OF OVERLAPPING 
              PUBLIC BROADCAST STATIONS.

    ``(a) Sale Requirements.--Upon application by a licensee or 
permittee of an overlapping public broadcast station for authority to 
assign or transfer the license or construction permit of the licensee 
or permittee for a station to another person or entity and for such 
person or entity to operate the station other than as a public 
broadcast station, the Commission may approve such assignment or 
transfer, and operation, only if all of the following requirements are 
met:
            ``(1) Unjust enrichment.--The licensee or permittee 
        applying to assign or transfer the license or permit agrees (in 
        such manner as the Commission may require) that, from any net 
        proceeds received for the assignment or transfer, an amount 
        equal to the net Federal investment in the station will be 
        distributed as follows:
                    ``(A) Costs of determining net federal 
                investment.--A portion of such amount, which is equal 
                to the cost to the Commission to obtain the 
                determination under subsection (b)(2) regarding the 
                assignment or transfer, shall be distributed to the 
                Commission.
                    ``(B) Public telecommunications facilities 
                support.--A portion of such amount equal to the 
                aggregate amount of all financial assistance provided 
                for the planning, construction, and purchase of 
                equipment and facilities provided by the public 
                telecommunications facilities program shall be 
                distributed to such program under section 391.
                    ``(C) Public broadcasting support.--The remainder 
                of such amount shall be provided to the Corporation for 
                Public Broadcasting (or such other entity as may 
                replace the Corporation) and shall be distributed--
                            ``(i) in the case of amounts pursuant to 
                        the assignment or transfer of a public 
                        television broadcast station, together with and 
                        in the same manner as amounts made available 
                        for distribution under section 
                        396(k)(3)(A)(ii)(I); and
                            ``(ii) in the case of amounts pursuant to 
                        the assignment or transfer of a public radio 
                        broadcast station, together with and in the 
                        same manner as amounts made available for 
                        distribution under section 
                        396(k)(3)(A)(iii)(I).
        Amounts distributed under this paragraph shall be available for 
        use in accordance with such distribution only to the extent 
        provided in advance in appropriation Acts.
            ``(2) Fair value.--The Commission determines that the 
        compensation provided for assigning or transferring the license 
        or permit fairly reflects the value of the license or permit 
        and any related facilities.
            ``(3) Universal access.--The Commission determines that the 
        sale of the broadcast station will not diminish universal 
        access to public broadcasting services.
    ``(b) Net Federal Investment.--
            ``(1) In general.--For purposes of this section, the net 
        Federal investment with respect to any broadcast station shall 
        be the sum of--
                    ``(A) the aggregate amount of all financial 
                assistance provided over time to the licensee or 
                permittee of the station for use for such station under 
                the public telecommunications facilities grant program 
                under subpart A or by the Corporation for Public 
                Broadcasting under subpart D; and
                    ``(B) an amount for interest on such financial 
                assistance, which shall be determined for the period 
                beginning upon the providing of such assistance and 
                ending upon the application for assignment of the 
                license in accordance with this section, at a rate 
                based upon the market yields on marketable public 
                obligations of the United States outstanding during 
                such period and having maturities comparable to such 
                period.
            ``(2) Determination.--Determinations of the amount of net 
        Federal investment in a public broadcast station for purposes 
        of any assignment or transfer authorized pursuant to this 
        section shall be made on a case-by-case basis, using generally 
        accepted accounting principles, by a private commercial 
        accountant or assessor selected by the Commission.''.
    (b) Definition of Overlapping Public Broadcast Station.--Section 
397 of the Communications Act of 1934 (47 U.S.C. 397) is amended--
            (1) by redesignating paragraphs (10) through (17) as 
        paragraphs (11) through (18), respectively; and
            (2) by inserting after paragraph (9) the following new 
        paragraph:
    ``(10) The term `overlapping public broadcast station' means--
            ``(A) a public broadcast television station having a Grade 
        A contour (as determined under the regulations of the 
        Commission)--
                    ``(i) that reaches more than 50 percent of the 
                population that is reached by the Grade A contour (as 
                so determined) of any other public television broadcast 
                station; or
                    ``(ii) that reaches a population more than 50 
                percent of whom are also reached by the Grade A contour 
                (as so determined) of any other public television 
                broadcast station; and
            ``(B) a public broadcast radio station having a 1.0 mV/m 
        signal contour (as determined under the regulations of the 
        Commission)--
                    ``(i) that reaches more than 50 percent of the 
                population that is reached by the 1.0 mV/m signal 
                contour (as so determined) of any other public radio 
                broadcast station; or
                    ``(ii) that reaches a population more than 50 
                percent of whom are also reached by the 1.0 mV/m signal 
                contour (as so determined) of any other public radio 
                broadcast station.''.

SEC. 202. USE OF BUSINESS OR INSTITUTIONAL LOGOGRAMS.

    Section 399A of the Communications Act of 1934 (47 U.S.C. 399a) is 
amended--
            (1) in subsection (a), by striking ``any aural'' and all 
        that follows and inserting the following: ``an aural or visual 
        message used for the exclusive purpose of identifying any 
        corporation, company, or other organization that, except for 
        the inclusion of any symbol or sign, consists of and is limited 
        to the following words: `This program sponsored in part by 
        ________.' (the blank space being filled in with the name of 
        such corporation, company, or other organization).'';
            (2) by striking subsection (b) and inserting the following 
        new subsection:
    ``(b) Each public television station and each public radio station 
shall be authorized to broadcast any business or institutional 
logogram, except that broadcasts of such logograms may not interrupt 
regular programming and each broadcast of a logogram shall not exceed 
10 seconds in duration.''; and
            (3) by adding at the end the following new subsection:
    ``(d) Applicability.--This section shall not apply to any public 
television station or public radio station that is receiving 70 percent 
or more of its annual operating expenses from one of the fiscal 
mechanisms described in the report required under title I of the Public 
Broadcasting Reform Act of 1998.''.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS FOR PUBLIC TELECOMMUNICATIONS 
              FACILITIES PROGRAM GRANTS.

    Section 391 of the Communications Act of 1934 (47 U.S.C. 391) is 
amended by striking ``1992, 1993, and 1994'' and inserting ``1999, 
2000, and 2001''.

SEC. 204. REGULATIONS.

    Not later than the expiration of the 180-day period beginning on 
the date of the enactment of this Act, the Federal Communications 
Commission shall issue any regulations necessary to implement the 
amendments made by this title.

   TITLE III--REAUTHORIZATION FOR CORPORATION FOR PUBLIC BROADCASTING

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    Section 396(k)(1) of the Communications Act of 1934 (47 U.S.C. 
396(k)(1)) is amended by striking subparagraph (C) and inserting the 
following new subparagraph:
    ``(C) Authorization of appropriations.--
            ``(i) In general.--There is authorized to be appropriated 
        to the Fund, for each of the fiscal years 1999, 2000, 2001, 
        2002, and 2003, an amount equal to 40 percent of the total 
        amount of non-Federal financial support received by public 
        broadcasting entities during the fiscal year second preceding 
        each such fiscal year, except that the amount so appropriated 
        shall not exceed $475,000,000 for fiscal year 2000.
            ``(ii) Transition to digital broadcasting.--In addition to 
        the amount under clause (i), there is authorized to be 
        appropriated to the Fund, for each of fiscal years 1999, 2000, 
        2001, 2002, and 2003, $95,000,000 for the purchase of equipment 
        to enable the transition of public broadcasting to digital 
        broadcasting. Notwithstanding paragraph (3), any amounts 
        appropriated pursuant to this clause shall be distributed only 
        among licensees and permittees of public broadcasting stations. 
        Such amounts may be used to purchase equipment on a 
        collaborative basis to enable more than one station to benefit 
        from cost savings realized from the joint purchase of 
        equipment.''.

SEC. 302. MODIFICATION TO STATUTORY MANDATES.

    Section 396(k)(6) of the Communications Act of 1934 (47 U.S.C. 
396(k)) is amended by adding after subparagraph (B) the following new 
subparagraph:
    ``(C) Incentives for voluntary consolidation.--Not later than 2 
years after the date of the enactment of the Public Broadcasting Reform 
Act of 1998, the Corporation (or such other entity as may replace the 
Corporation) shall ensure that--
            ``(i) in areas where there are television stations that are 
        overlapping public broadcast stations which agree to 
        consolidate operations and equipment in a manner such that they 
        are reduced to a single public broadcast station operating 
        under a single broadcast license, the total funds made 
        available to licensees or permittees of such stations are not 
        more than 150 percent of the amount that would be provided if 
        such areas were served by a single public television broadcast 
        station, except that funds may be provided for such a station 
        only if the Corporation (or such other replacement entity) 
        determines that--
                    ``(I) the distinct educational or minority needs of 
                the area are served, including through the use of 
                multiplexed programming;
                    ``(II) such multiplexed programming is carried on 
                local cable systems serving the area, except that such 
                cable systems shall not be required to carry 
                multiplexed channels that exceed the number of analog 
                public television channels carried on the date of the 
                enactment of the Public Broadcasting Reform Act of 
                1998; and
                    ``(III) universal access to public television will 
                not be diminished; and
            ``(ii) in areas where there are radio stations that are 
        overlapping public broadcast stations which agree to 
        consolidate operations and equipment in a manner such that they 
        are reduced to a single public broadcast station operating 
        under a single broadcast license or permit, the total funds 
        made available to licensees or permittees of such stations are 
        not more than 150 percent of the amount that would be provided 
        if such areas were served by a single public radio broadcast 
        station, except that funds may be provided for such a station 
        only if the Corporation (or such other replacement entity) 
        determines that--
                    ``(I) the consolidated station meets or exceeds 
                audience service criteria or community support 
                criteria, which shall be developed by the Corporation 
                (or such other replacement entity) in consultation with 
                public radio licensees and permittees; and
                    ``(II) universal access to public radio will not be 
                diminished.''.
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