[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1883 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 1883

To direct the Federal Communications Commission to take certain actions 
 to increase diversity of ownership in the broadcasting industry, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2017

 Mr. Butterfield introduced the following bill; which was referred to 
the Committee on Energy and Commerce, and in addition to the Committee 
 on Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To direct the Federal Communications Commission to take certain actions 
 to increase diversity of ownership in the broadcasting industry, 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 ``Expanding Broadcast Ownership 
Opportunities Act of 2017''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) One of the main missions of the Federal Communications 
        Commission, and a compelling governmental interest, is to 
        ensure that there is a diversity of ownership and viewpoints in 
        the broadcasting industry.
            (2) The Commission should continue to collect relevant data 
        and conduct studies on such diversity and make appropriate 
        recommendations to Congress on how to increase the number of 
        minority- and women-owned broadcast stations.
            (3) Data from 2014 shows that, of the over 1,700 commercial 
        broadcast television stations in the United States, less than 6 
        percent are owned by women, and less than 3 percent are 
        minority-owned. With respect to radio stations, women owned 
        approximately 7 percent of FM broadcast radio stations, and 
        minorities owned less than 3 percent of such stations.
            (4) Women and minority ownership is 5 to 10 times higher in 
        other industries than in the broadcasting industry.
            (5) During the 17 years that a minority tax certificate 
        program was in place at the Commission (from 1978 to 1995), the 
        Commission issued 287 certificates for radio stations and 40 
        certificates for television stations.
            (6) The Commission can also support minority- and women-
        owned entrants into the broadcasting industry by implementing 
        an incubator program in which existing licensees assist new 
        entrants in the operation of broadcast stations.

SEC. 3. FCC REPORTS TO CONGRESS.

    (a) Biennial Report Containing Recommendations for Increasing 
Number of Minority- and Women-Owned Broadcast Stations.--Not later than 
180 days after the date of the enactment of this Act, and not less 
frequently than every 2 years thereafter, the Commission shall submit 
to Congress a report containing recommendations for how to increase the 
total number of broadcast stations that are owned or controlled by 
members of minority groups or women, or by both members of minority 
groups and women.
    (b) Biennial Report on Number of Minority- and Women-Owned 
Broadcast Stations.--Not later than 180 days after the date of the 
enactment of this Act, and not less frequently than every 2 years 
thereafter, the Commission shall submit to Congress a report that 
states the total number of broadcast stations that are owned or 
controlled by members of minority groups or women, or by both members 
of minority groups and women, based on data reported to the Commission 
on Form 323.

SEC. 4. TAX CERTIFICATE PROGRAM FOR BROADCAST STATION TRANSACTIONS 
              FURTHERING OWNERSHIP BY SOCIALLY AND ECONOMICALLY 
              DISADVANTAGED INDIVIDUALS.

    (a) Requirements for Issuance of Certificate by FCC.--
            (1) In general.--Part I of title III of the Communications 
        Act of 1934 (47 U.S.C. 301 et seq.) is amended by adding at the 
        end the following:

``SEC. 344. TAX CERTIFICATE PROGRAM FOR BROADCAST STATION TRANSACTIONS 
              FURTHERING OWNERSHIP BY SOCIALLY AND ECONOMICALLY 
              DISADVANTAGED INDIVIDUALS.

    ``(a) Issuance of Certificate by Commission.--Upon application by a 
person who engages in a sale of an interest in a broadcast station 
described in subsection (b), subject to the rules adopted by the 
Commission under subsection (c), the Commission shall issue to such 
person a certificate stating that such sale meets the requirements of 
this section.
    ``(b) Sales Described.--The sales described in this subsection are 
the following:
            ``(1) Sale resulting in ownership by socially and 
        economically disadvantaged individuals.--A sale--
                    ``(A) of an interest in a broadcast station that, 
                before such sale, is not owned by socially and 
                economically disadvantaged individuals; and
                    ``(B) that results in the station being owned by 
                socially and economically disadvantaged individuals.
            ``(2) Sale by investor in station owned by socially and 
        economically disadvantaged individuals.--In the case of a 
        person who has contributed capital in exchange for an interest 
        in a broadcast station that is owned by socially and 
        economically disadvantaged individuals, a sale by such person 
        of some or all of such interest.
    ``(c) Rules.--The Commission shall adopt rules for the issuance of 
a certificate under subsection (a) that provide for the following:
            ``(1) Limit on value of sale.--A limit on the value of an 
        interest the sale of which qualifies for the issuance of such a 
        certificate.
            ``(2) Minimum holding period.--In the case of a sale 
        described in subsection (b)(1), a minimum period following the 
        sale during which the broadcast station must remain owned by 
        socially and economically disadvantaged individuals.
            ``(3) Cumulative limit on number or value of sales.--A 
        limit on the total number of sales or the total value of sales, 
        or both, for which a person may be issued certificates under 
        subsection (a).
            ``(4) Participation in station management by socially and 
        economically disadvantaged individuals.--Requirements for 
        participation by socially and economically disadvantaged 
        individuals in the management of the broadcast station.
    ``(d) Annual Report to Congress.--The Commission shall submit to 
Congress an annual report describing the sales for which certificates 
have been issued under subsection (a) during the period covered by the 
report.
    ``(e) Definitions.--In this section:
            ``(1) Owned by socially and economically disadvantaged 
        individuals.--The term `owned by socially and economically 
        disadvantaged individuals' means, with respect to a broadcast 
        station, that--
                    ``(A) such station is at least 51 percent owned by 
                one or more socially and economically disadvantaged 
                individuals, or, in the case of any publicly owned 
                broadcast station, at least 51 percent of the stock of 
                such station is owned by one or more socially and 
                economically disadvantaged individuals; and
                    ``(B) the management and daily business operations 
                of such station are controlled by one or more of such 
                individuals.
            ``(2) Socially and economically disadvantaged individual.--
        The term `socially and economically disadvantaged individual' 
        means an individual who is socially and economically 
        disadvantaged. The Commission shall presume that socially and 
        economically disadvantaged individuals include--
                    ``(A) Black Americans, Hispanic Americans, Native 
                Americans, Asian Pacific Americans, and other 
                minorities; and
                    ``(B) women.
            ``(3) Socially disadvantaged individual.--The term 
        `socially disadvantaged individual' means an individual who has 
        been subjected to racial or ethnic prejudice or cultural bias 
        because of the identity of the individual as a member of a 
        group without regard to the individual qualities of the 
        individual.
            ``(4) Economically disadvantaged individual.--The term 
        `economically disadvantaged individual' means a socially 
        disadvantaged individual whose ability to compete in the free 
        enterprise system has been impaired due to diminished capital 
        and credit opportunities as compared to others in the same 
        business area who are not socially disadvantaged. In 
        determining the degree of diminished credit and capital 
        opportunities, the Commission shall consider, but not be 
        limited to, the assets and net worth of such socially 
        disadvantaged individual.''.
            (2) Deadline for adoption of rules.--The Commission shall 
        adopt rules to implement section 344 of the Communications Act 
        of 1934, as added by paragraph (1), not later than 1 year after 
        the date of the enactment of this Act.
            (3) Report to congress on program expansion.--Not later 
        than 6 years after the date of the enactment of this Act, the 
        Commission shall submit to Congress a report regarding whether 
        Congress should expand section 344 of the Communications Act of 
        1934, as added by paragraph (1), beyond broadcast stations to 
        cover other entities regulated by the Commission.
            (4) Report to congress on nexus between diversity of 
        ownership and diversity of viewpoint.--Not later than 6 years 
        after the date of the enactment of this Act, and not less 
        frequently than every 5 years thereafter until the amendments 
        made by this section cease to apply in accordance with 
        subsection (d), the Commission shall submit to Congress a 
        report, including supporting data, on whether there is a nexus 
        between diversity of ownership or control of broadcast stations 
        (including ownership or control by members of minority groups 
        or women, or by both members of minority groups and women) and 
        diversity of the viewpoints expressed in the matter broadcast 
        by broadcast stations.
    (b) Nonrecognition of Gain or Loss for Tax Purposes.--
            (1) In general.--Subchapter O of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by inserting after part IV the 
        following new part:

       ``PART V--SALE OF INTEREST IN CERTAIN BROADCAST STATIONS.

``SEC. 1071. NONRECOGNITION OF GAIN OR LOSS FROM SALE OF INTEREST IN 
              CERTAIN BROADCAST STATIONS.

    ``(a) Nonrecognition of Gain or Loss.--If a sale of an interest in 
a broadcast station, within the meaning of section 344 of the 
Communications Act of 1934, is certified by the Federal Communications 
Commission under such section, such sale shall, if the taxpayer so 
elects, be treated as an involuntary conversion of such property within 
the meaning of section 1033. For purposes of such section as made 
applicable by the provisions of this section, stock of a corporation 
operating a broadcast station shall be treated as property similar or 
related in service or use to the property so converted. The part of the 
gain, if any, on such sale to which section 1033 is not applied shall 
nevertheless not be recognized, if the taxpayer so elects, to the 
extent that it is applied to reduce the basis for determining gain or 
loss on any such sale, of a character subject to the allowance for 
depreciation under section 167, remaining in the hands of the taxpayer 
immediately after the sale, or acquired in the same taxable year. The 
manner and amount of such reduction shall be determined under 
regulations prescribed by the Secretary. Any election made by the 
taxpayer under this section shall be made by a statement to that effect 
in his return for the taxable year in which the sale takes place, and 
such election shall be binding for the taxable year and all subsequent 
taxable years.
    ``(b) Minimum Holding Period; Continued Management.--If--
            ``(1) there is nonrecognition of gain or loss to a taxpayer 
        under this section with respect to a sale of property 
        (determined without regard to this paragraph), and
            ``(2) the taxpayer ceases to fulfill any requirements of 
        the rules adopted by the Federal Communications Commission 
        under paragraph (2) or (4) of section 344(c) of the 
        Communications Act of 1934 (as such rules are in effect on the 
        date of such sale),
there shall be no nonrecognition of gain or loss under this section to 
the taxpayer with respect to such sale, except that any gain or loss 
recognized by the taxpayer by reason of this subsection shall be taken 
into account as of the date on which the taxpayer so ceases to fulfill 
such requirements.
    ``(c) Basis.--For basis of property acquired on a sale treated as 
an involuntary conversion under subsection (a), see section 1033(b).''.
            (2) Clerical amendment.--The table of parts for subchapter 
        O of chapter 1 of the Internal Revenue Code of 1986 is amended 
        by inserting after the item related to part IV the following 
        new part:

        ``Part V--Sale of Interest in Certain Broadcast Stations

``Section 1071. Nonrecognition of gain or loss from sale of interest in 
                            certain broadcast stations.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to sales of interests in broadcast stations after 
the date that is 1 year after the date of the enactment of this Act.
    (d) Sunset.--The amendments made by this section shall not apply 
with respect to sales of interests in broadcast stations after the date 
that is 16 years after the date of the enactment of this Act.

SEC. 5. INCUBATOR PILOT PROGRAM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Commission shall establish a program under 
which the Commission may grant a waiver of paragraph (a), (b), or (c) 
of section 73.3555 of title 47, Code of Federal Regulations, to a 
licensee of a broadcast station to enable the licensee to acquire an 
interest that would otherwise be prohibited by such paragraph in a 
broadcast station that is owned by socially and economically 
disadvantaged individuals.
    (b) Report to Congress.--The Commission shall submit to Congress a 
report on the effectiveness of the program established under subsection 
(a) not later than the date that is 4 years after the date on which the 
Commission establishes the program under such subsection.
    (c) Sunset.--The Commission may not grant a waiver under subsection 
(a) after the date that is 5 years after the date on which the 
Commission establishes the program under such subsection.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Broadcast station.--The term ``broadcast station'' has 
        the meaning given such term in section 3 of the Communications 
        Act of 1934 (47 U.S.C. 153).
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Owned by socially and economically disadvantaged 
        individuals.--The term ``owned by socially and economically 
        disadvantaged individuals'' has the meaning given such term in 
        section 344 of the Communications Act of 1934, as added by 
        section 4.
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