[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2058 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 2058

 To promote transparency and reduce anti-competitive practices in the 
                     radio and concert industries.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 18, 2005

 Mr. Feingold introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To promote transparency and reduce anti-competitive practices in the 
                     radio and concert industries.

    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 ``Radio and Concert Disclosure and 
Competition Act of 2005''.

SEC. 2. DISCLOSURE REGULATIONS.

    (a) Modification of Regulations.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Federal Communications 
        Commission shall modify its regulations under sections 317 and 
        507 of the Communications Act of 1934 (47 U.S.C. 317 and 508), 
        to prohibit the licensee or permittee of any radio station, 
        including any employee or affiliate of such licensee or 
        permittee, from receiving money, services, or other valuable 
        consideration, whether directly or indirectly, from a record 
        company, recording artist, concert promoter, music promoter, or 
        music publisher, or an agent or representative thereof, unless 
        the licensee or permittee discloses at least monthly the 
        receipt of such money, services, or other consideration to the 
        Federal Communications Commission (in this Act referred to as 
        the ``Commission'') and the public in a manner that the 
        Commission shall specify.
            (2) Exception.--The Commission in modifying its regulations 
        as required under paragraph (1) may create an exception to the 
        prohibition described under paragraph (1) for--
                    (A) transactions provided at nominal cost; or
                    (B) paid broadcasting disclosed under section 317 
                of the Communications Act of 1934 (47 U.S.C. 317), if 
                the monthly disclosure described in paragraph (1) 
                includes the proportion of total airplay considered 
                paid broadcasting.
    (b) Playlist.--The monthly disclosure by a radio station licensee 
or permittee required under subsection (a) shall include a list of 
songs and musical recordings aired during the disclosure period, 
indicating the artist, record label, and number of times the song was 
aired.

SEC. 3. ARM'S LENGTH TRANSACTIONS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Federal Communications Commission shall 
modify its regulations under sections 317 and 507 of the Communications 
Act of 1934 (47 U.S.C. 317 and 508), to require that all transactions 
between a licensee or permittee of any radio station, including any 
employee or affiliate of such licensee or permittee, and a record 
company, recording artist, concert promoter, music promoter, or music 
publisher, or an agent or representative thereof, shall be conducted at 
an arm's length basis with any such transaction reduced to writing and 
retained by the licensee or permittee for the period of the license 
term or 5 years, whichever is greater.
    (b) Records.--A record of each transaction described under 
subsection (a) shall be--
            (1) made available upon request to--
                    (A) the Commission; and
                    (B) any State enforcement agency; and
            (2) subject to a random audit by the Commission to ensure 
        compliance on a basis to be determined by the Commission.
    (c) Exemption.--The Commission may create an exemption to the 
record keeping requirement described in subsection (b)--
            (1) for a transaction that is of a nominal value; and
            (2) for a radio station that is a small business, as 
        recognized by the Commission and established by the Small 
        Business Administration under section 121 of title 13, Code of 
        Federal Regulations, if the Commission determines that such 
        record keeping poses an undue burden to that small business.

SEC. 4. COMPETITION REGULATIONS.

    Not later than 1 year after the date of the enactment of this Act, 
the Federal Communications Commission shall modify its regulations 
under sections 317 and 507 of the Communications Act of 1934 (47 U.S.C. 
317 and 508), to accomplish the following:
            (1) General prohibition.--To prohibit the licensee of any 
        radio station, including any parent, subsidiary, or affiliated 
        entity of such licensee, from using its control over any non-
        advertising matter broadcast by such licensee to extract or 
        receive money or any other form of consideration, whether 
        directly or indirectly, from a record company, artist, concert 
        promoter, or any agent or representative thereof.
            (2) Radio station concerts.--
                    (A) In general.--To prohibit a licensee or 
                permittee of a commercial radio station, or affiliate 
                thereof, from--
                            (i) engaging, receiving, making an offer 
                        for, or directly profiting from concert 
                        services of any musician or recording artist 
                        unless the licensee or permittee does not 
                        discriminate, in whole or in part, about the 
                        broadcast of non-advertising matter, including 
                        any sound recording, by that particular artist 
                        upon whether or not that artist performs at the 
                        radio station affiliated concert; and
                            (ii) engaging or receiving concert services 
                        of any musician or recording artist unless the 
                        licensee or permittee provides the musician or 
                        recording artist with compensation for such 
                        services at the fair market value for the 
                        performance.
                    (B) Definition.--For purposes of subparagraph (A), 
                the term ``fair market value'' shall include such 
                factors as--
                            (i) the rate typically charged by the 
                        musician or recording artist for a concert of 
                        the size being put on for the station;
                            (ii) the expenses of the musician or 
                        recording artist to travel to, and perform at, 
                        the concert location; and
                            (iii) the length of the performance in 
                        relation to the standard duration for a concert 
                        by the musician or recording artist.
                    (C) Limitations and exclusions.--The provisions of 
                this paragraph shall not--
                            (i) prohibit consideration for the concert 
                        services being made in the form of promotional 
                        value, cash, or a combination of both; or
                            (ii) apply to--
                                    (I) a radio station that is a small 
                                business, as recognized by the 
                                Commission and established by the Small 
                                Business Administration under section 
                                121 of title 13, Code of Federal 
                                Regulations;
                                    (II) in-studio live interviews and 
                                performances; or
                                    (III) concerts whose proceeds are 
                                intended and provided for charitable 
                                purposes.
            (3) Radio and concert cross-ownership.--
                    (A) In general.--To prohibit a licensee or 
                permittee of a radio station, or affiliate thereof, 
                from owning or controlling a concert promoter or venue 
                primarily used for live concert performances.
                    (B) Waiver.--The Commission may waive the 
                prohibition required under subparagraph (A) if--
                            (i) the Commission determines that because 
                        of the nature of the cross-ownership and market 
                        served--
                                    (I) the affected radio station, 
                                concert promoter, or venue would be 
                                subjected to undue economic distress or 
                                would not be economically viable if 
                                such provisions were enforced; and
                                    (II) the anti-competitive effects 
                                of the proposed transaction are clearly 
                                outweighed in the public interest by 
                                the probable effect of the transaction 
                                in meeting the needs of the community 
                                to be served; and
                            (ii) the affected radio station, concert 
                        promoter, or venue demonstrates to the 
                        Commission that decisions regarding the 
                        broadcast of matter, including any sound 
                        recording, will be made at arm's length and not 
                        based, in whole or in part, upon whether or not 
                        the creator, producer, or promoter of such 
                        matter engages the services of the licensee or 
                        permittee, or an affiliate thereof.

SEC. 5. REVIEW OF TRANSACTIONS.

    (a) In General.--Upon petition by a musician, recording artist, or 
interested party, the Commission shall review any transaction entered 
into under section 3 or section 4.
    (b) Copy of Petition.--A copy of any petition submitted to 
Commission under subsection (a) shall be provided by the person filing 
such petition to the licensee or permittee, or musician or recording 
artist, as applicable.
    (c) Public Disclosure.--If the Commission, after reviewing a 
petition submitted under subsection (a) finds a transaction violated 
any provision of this paragraph or section 3, the Commission shall 
publicly, after all parties have had a reasonable opportunity to 
comment, disclose its finding and grant appropriate relief.

SEC. 6. PENALTIES.

    The regulations promulgated under sections 2, 3 and 4 shall set 
forth appropriate penalties for violations including an immediate 
hearing before the Commission upon the issuance of a notice of apparent 
liability or violation, with possible penalties to include license 
revocation.

SEC. 7. REPORT.

    Not later than 2 years after the date of enactment of this Act, and 
every 2 years thereafter, the Commission shall issue a report to 
Congress and the public that--
            (1) summarizes the disclosures made by licensees and 
        permittees as required under section 2;
            (2) summarizes the audits conducted by the Commission as 
        required under section 3(b)(2);
            (3) summarizes the cross-ownership waivers, if any, awarded 
        by the Commission under section 4(3)(B);
            (4) evaluates ownership concentration and market power in 
        the radio industry in a manner similar to the most recent in 
        the discontinued series of FCC reports, ``Radio Industry Review 
        2002: Trends in Ownership, Format, and Finance''; and
            (5) describes any violations of section 2, 3, or 4, and 
        penalty proceedings under section 6, and includes 
        recommendations for any additional statutory authority the 
        Commission determines would improve compliance with regulations 
        issued under this Act.

SEC. 8. LICENSE REVOCATION.

    Section 312(a) of the Communications Act of 1934 (47 U.S.C. 312) is 
amended--
            (1) in paragraph (6), by striking ``; or'' and inserting a 
        semicolon;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(8) for violation of or failure to follow any regulation 
        established in accordance with section 2, 3, 4, or 6 of the 
        Radio and Concert Disclosure and Competition Act of 2005.''.

SEC. 9. INCREASED MAXIMUM PENALTIES.

    (a) Penalties for Disclosure of Payments to Individuals Connected 
With Broadcasts.--Section 507(g)(1) of the Communications Act of 1934 
(47 U.S.C. 508(g)(1)) is amended by striking ``$10,000'' and inserting 
``$50,000''.
    (b) Penalties for Prohibited Practices in Contests of Knowledge, 
Skill, or Chance.--Section 508(c)(1) of the Communications Act of 1934 
(47 U.S.C. 509(c)(1)) is amended--
            (1) by striking ``$10,000'' and inserting ``$50,000''; and
            (2) by inserting ``, for each violation'' before the 
        period.
                                 <all>