[Congressional Record Volume 142, Number 64 (Thursday, May 9, 1996)]
[Senate]
[Pages S4926-S4928]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PUBLIC BROADCASTING
Mr. PRESSLER. Mr. President, I also am pleased to release today draft
legislation to reauthorize the Corporation of Public Broadcasting. The
draft would provide a simple reauthorization of $250 million each year
for the fiscal years 1998, 1999, and 2000. It is my hope that by then,
public broadcasting would no longer need a reauthorization, but would
have the resources to thrive on its own.
Last year we began a very worthwhile debate about the future
direction of public broadcasting. Survival was never a real issue. I
believe public broadcasting will do more than just survive--it will
thrive. Public broadcasting is a success story still being written. I
am confident of this. Public broadcasting offers a quality product
supported by quality individuals who care about what people, especially
young people, see or hear on television and radio.
It was in part due to my confidence in public broadcasting that I
proposed last year to put public broadcasting on a glide path to
independence from Washington--independent from Congress and independent
from the Corporation for Public Broadcasting. I support public
broadcasting. Yet, I've never quite understood the logic of the funding
process. There has to be a better way to fund public broadcasting than
through CPB, which soaks up a large share of funding before it ever
gets to the 350 public television stations and 629 public radio
stations. A large chunk comes right back here to D.C. to buy
programming disproportionately produced in the largest media markets.
There just has to be a better way--especially for small city
broadcasters.
Last year's debate produced some much-needed innovations. Public
broadcasting has improved as a result. I called on public broadcasting
to take advantage of the popularity and value of its wonderful
programming. They're doing so now. Last year, new ancillary agreements
were reached that will see a larger portion of merchandise revenue from
public broadcasting products go right back to public broadcasting.
Media alliances have been formed with MCI and Turner to distribute
public broadcasting programs on video and CD-ROM's. Even PBS has
discovered that its logo generates revenue. Foreign markets are an
untapped source for programming and products. Even the Internet offers
enormous potential for public broadcasting, both as a conduit for
classroom-based, interactive educational programming and as a base to
market its products. In short, we really haven't begun to tap the
enormous funding potential of public broadcasting in the worldwide
marketplace.
I also believe we must continue to push for greater efficiencies
within CPB--reforms that also can free up revenues. Will all these
potential funding sources and markets allow public broadcasting to
achieve financial independence? It's a question that we should explore.
So today I am circulating a discussion draft that would not only
reauthorize public broadcasting, but also explore and chart a path
toward independence. The first way is to give public broadcasting tools
to generate more revenue. My draft legislation would give public
broadcasting enhanced underwriting authority--enough to draw in new
corporate sponsors but not too far to undermine the noncommercial
integrity of public broadcasting. The draft also would allow public
broadcasting stations to use overlapping station capacity to generate
revenue.
These proposals would allow some stations to benefit. However, if all
of public broadcasting is to thrive, especially smaller stations such
as in South Dakota, North Dakota, and Montana, we need to bring the
best people in finance, government and broadcasting together to chart a
course for independence. To do this, the draft proposes creation of a
Commission on Public Broadcasting Empowerment. This commission would
have 2 years to submit recommendations to Congress that would: foster
long-term funding for public broadcasting that would not compromise its
essential noncommercial nature; improve economic efficiencies within
public broadcasting; guarantee universal access to public broadcasting,
particularly in rural, under served areas; and stimulate the
development of regional programming centers in order to increase
geographic diversity in the origination of programming.
Finally, the draft would authorize the creation of a trust fund to be
used to generate sufficient capital for public broadcasting to achieve
financial independence. This trust fund approach was first proposed by
the public broadcasters late last year. The public broadcasters
proposed a more far-reaching approach that would enable a private trust
to generate funds through the management of advanced spectrum and the
leasing of unused spectrum for commercial purposes. This thoughtful
proposal has merit. I support the creation of a trust fund. I believe
that the draft spectrum legislation I have proposed today would provide
public broadcasters with the resources needed to capitalize a trust
fund in a way that would benefit the entire public broadcasting
community--radio and television, in markets large and small.
Because this proposal would bring major change to public
broadcasting, it deserves careful review. I'm already beginning that
review.
Clearly, financial independence will be a key issue. However, other
reforms are needed, particularly in the distribution of funds for
broadcasting and programming. I am particularly interested in reforms
that will enhance the capabilities and creativity of small city and
rural broadcasters. In small cities and towns, public broadcasting is
vital. South Dakota Public Radio [SDPR], for example, provides pool
coverage to commercial stations around the State for legislative
reporting, because it has the only radio news reporter on duty during
the legislative session. In some markets, SDPR is the sole radio
provider of local news, and the exclusive source of Emergency Broadcast
System announcements.
[[Page S4927]]
For SDPR and similar radio and television stations, continued
oversight by Congress is important to ensure they receive their fair
share of the public broadcasting dollar. I would like to see public
broadcasting be a self-sustaining operation, but I will not forego
congressional oversight responsibilities, nor support a disbursement of
funds from any trust fund until I am satisfied that there are legal and
contractual safeguards in place that will protect the financial and
programming interests of small city and rural broadcasters.
What kind of safeguards? First and foremost, there should be service
requirements that public broadcasting should follow. As you know,
telephone companies are required to provide universal service to its
customers, regardless of their location. Public broadcasting should be
required to fulfill a similar standard--universal access for all
Americans.
Second, any future trust fund should have a formula that recognizes
the unique roles of small city broadcasters and the need to achieve
universal access goals.
Third, I support giving small broadcasters a share of any revenue
generated through enhanced underwriting. A similar arrangement exists
with major networks and their affiliates--large and small. It makes
sense. It's simple fairness. Large and small stations that broadcast
underwritten programming contribute to the exposure of the corporate
sponsor to the viewing public. They should benefit.
Fourth, we should be encouraging the development of regional
programming outlets. At present, there is a disproportionate
concentration of program development in the large cities. Regional
programming will not only further the diversity of public broadcasting,
but improve viewership in these areas.
So, in conclusion, there are a number of issues worth discussing.
Funding sources and funding distribution are the two key issues. I am
hopeful that the proposed Commission on Public Broadcasting Empowerment
will help lay the groundwork for both financial independence and
distribution fairness. The funding sources may change, new technologies
may emerge, but the central mission of public broadcasting--to be a
dependable source of educational, community-based programming--is
strong and growing stronger. That's a credit to the people in the
communities that make it all happen.
This draft is a starting point. I look forward to working with the
public broadcasting community and my colleagues on both sides of aisle
to improve this draft and pass a bill. Mr. President, I ask unanimous
consent that this draft be printed in the Record.
There being no objection, the draft was ordered to be printed in the
Record, as follows:
S. --
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
Financial Resources Enhancement Act of 1996''.
SEC. 2. PURPOSE.
The purpose of this Act is to ensure that public
broadcasting stations have sufficient resources--
(1) to carry on the mission of public broadcasting stations
to provide Americans with noncommercial programming and
services which advance education, support culture, and foster
citizenship;
(2) to promote continued efficiency and effectiveness in
the provision of public broadcasting services, through
technological advances and, where appropriate, through
mergers, consolidations, and joint operating agreements;
(3) to preserve and enhance the geographic and cultural
diversity of public broadcasting programs and services;
(4) to support public broadcasting services to rural and
underserved areas and audiences, and to ensure the universal
availability of public broadcasting services;
(5) to create and deliver creative and diverse programming
and services of high quality and excellence;
(6) to preserve and protect their editorial integrity and
independence; and
(7) to continue to pioneer new telecommunications
technologies and to adapt those technologies for educational
and public service purposes.
TITLE I--EARNED INCOME OPPORTUNITIES
SEC. 101. ENHANCED UNDERWRITING.
(a) Business or Institutional Logos.--Section 399A of the
Communications Act of 1934 (47 U.S.C.399A) is amended:
(1) by striking ``exclusive'' in subsection (a);
(2) by striking ``organization, and which is not used for
the purpose of promoting the products, services, or
facilities of such corporation, company, or other
organization.'' in subsection (a) and inserting
``organization.''; and
(3) by inserting ``established'' before ``business'' in
subsection (b).
(b) Services, Facilities, and Products.--Section 399B(a) of
the Communications Act of 1934 (47 U.S.C. 399B(a)) is amended
by inserting ``a comma and ``other than through a strictly
quantifiable comparative description,'' after ``promote''.
SEC. 102. TELEVISION CHANNEL EXCHANGES.
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 thereof the following:
``SEC. 399C. TELEVISION CHANNEL EXCHANGES.
``(a) Petition.--The licensees or permittees of commercial
and public broadcast television stations may file a joint
petition with the Commission requesting an exchange of
channels (including public television stations on VHF
channels to be exchanged for UHF channels). Within 90 days
after receiving such a petition, the Commission shall amend
the television table of allotments and modify the licenses or
permits of the petitioners to specify operation on the
exchanged channels if the Commission finds that--
``(1) the stations serve substantially the same market; and
``(2) the consideration paid to the public broadcast
television licensee or permittee--
``(A) fairly reflects the value of the exchange of channels
and related facilities; and
``(B) will be dedicated to the provision of public
broadcasting services.
``(b) Other Considerations Prohibited.--In considering a
petition under subsection (a), the Commission may not
consider proposals by other parties to become licensees or
permittees on the channels to be exchanged.
``(c) Ineligibility for Grants.--Neither a noncommercial
educational television station that exchanges a channel for
consideration under subsection (a), nor any transferee or
assignee of the license associated with that station, may
receive funds under subsection 396 after the exchange occurs,
except to the extent provided for by the Commission on the
basis of the contribution to the public broadcasting system
made by that station, transferee, or assignee.''.
SEC. 103. CONVERSION OF STATIONS TO COMMERCIAL STATUS.
Subpart E of part IV of title III of the Communications Act
of 1934 (47 U.S.C. 397 et seq.), as amended by section 103,
is amended by adding at the end thereof the following:
``SEC. 399D. USE OF PUBLIC BROADCASTING STATIONS FOR
REMUNERATION.
``(a) In General.--
``(1) Use of overlapping station capacity.--Subject to the
requirements and limitations of this section, the licensee or
licensees of 2 overlapping stations may, notwithstanding the
allocated and licensed status of such stations as
noncommercial educational television stations, operate one
such station for remunerative purposes, including the
transmission of commercial television programming originated
by such licensee or by another party and transmission of
subscription television or pay-per-view services. Such
commercial operation will not result in a modification of the
noncommercial educational allocation of the license held by
the station.
``(2) Conditions for use.--The licensee or licensees of
overlapping stations intending to operate one of such
stations for remunerative purposes pursuant to paragraph (1)
shall file with the Commission a joint operating agreement or
other instrument providing assurances that--
``(A) the remuneration of such operations (in excess of the
costs of the commercial and public television operations of
such licensee) is dedicated to the provision of public
broadcasting services on the other overlapping station; and
``(B) the station operated for remunerative purposes is,
but for the remunerative operations, otherwise operated
consistently with the provisions of this Act and the rules
and policies of the Commission applicable to such operations.
``(3) Ineligibility for grants.--No noncommercial
educational television station operating under an agreement
or other instrument filed under paragraph (2), and no
transferee of such station, or assignee of the license
associated with such station, may receive any funds under
section 396, except to the extent provided for by the
Commission on the basis of the contribution to the public
broadcasting system made by that station, transferee, or
assignee.
``(b) Sale Permitted.--Upon application by the licensee of
2 or more overlapping public television stations, the
Commission shall approve the assignment of one of the
licenses of such licensee for a television station to another
person or entity, without rulemaking or opening the licensed
channel to general application, and shall permit such person
or entity to operate such station as a commercial television
station, if--
``(1) the licensee assigning such license will dedicate all
compensation in excess of costs of sale received for such
assignment to the
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support of the local noncommercial educational broadcast
operations of the retained station; and
``(2) the compensation provided to the licensee for
assigning such license reflects the value of the license and
related facilities.
``(c) Definitions.--For purposes of this section--
``(1) Overlapping stations.--The term `overlapping
stations' means 2 or more public television stations--
``(A) that serve the same market;
``(B) with respect to which the Grade A contour of one of
such stations reaches more than 50 percent of the Grade A
population reached by the other such station; and
``(C) with respect to which less than 20 percent of the
population reached by either station is unduplicated by the
other.
``(2) Television market.--The term `television market' has
the meaning provided in section 76.55(e)(1) of the
Commission's rules (47 C.F.R. 76.55(e)(1)).''.
TITLE II--PUBLIC BROADCASTING EMPOWERMENT COMMISSION
SEC. 201. ESTABLISHMENT.
There is established a commission to be known as the
Commission on Public Broadcasting Empowerment (referred to in
this section as the ``Commission'').
SEC. 202. DUTIES.
(a) Study and Recommendations.--The Commission shall--
(1) conduct a comprehensive study of--
(A) alternatives for providing long-term funding for public
broadcasting services other than with appropriated Federal
funds, with particular emphasis on the development of earned
income opportunities;
(B) the feasibility of generating revenue for a trust fund
based upon spectrum grants or other sources of funding;
(C) the effectiveness and adequacy of those means of
generating revenue for public broadcasting services made
available by title I of this Act;
(D) the impact that particular funding methods may have on
the purpose, role, and availability of public broadcasting,
particularly in smaller markets;
(E) funding distribution formulas for smaller markets that
take into account the special nature of such markets,
including the additional infrastructure investment necessary
to obtain sufficient audience reach; and
(F) opportunities for reducing the cost of public
broadcasting through increased efficiencies of production,
distribution, and operation without impairing universal
access to public broadcasting; and
(2) submit to the Committee on Commerce, Science, and
Transportation of the Senate and to the Committee on Commerce
of the House of Representatives a report setting forth the
results of its study and making recommendations for--
(A) long-term funding for public broadcasting that would
not compromise its essential noncommercial nature;
(B) improving the economic efficiency with which public
broadcasting operates;
(C) guaranteeing universal access, particularly to rural
and underserved areas; and
(D) stimulating the development of regional and local
programming centers in order to increase geographic diversity
in the origination of programming.
(b) Interim and Final Reports.--The Commission shall submit
a preliminary report under subsection (a)(2) not later than
December 31, 1997, and a final report not later than December
31, 1998.
(c) Trust Fund Established.--
(1) In general.--There is hereby established in the
Treasury of the United States a trust fund to be known as the
``Public Broadcasting Trust Fund''.
(2) Accounts.--The Public Broadcasting Trust Fund shall
consist of such accounts as may be provided by law. Each such
Account shall consist of such amounts as may be appropriated,
credited, or paid to it as provided by law.
(3) Expenditures.--Amounts in the Public Broadcasting Trust
Fund shall be available for making such expenditures as may
be provided by law.
(4) Management.--The Public Broadcasting Trust Fund shall
be managed in accordance with the provisions of section 9602
of the Internal Revenue Code of 1986.
SEC. 203. MEMBERSHIP.
(a) Composition.--
(1) Appointments.--The Commission shall be composed of 12
voting members and 3 ex officio members to be appointed not
later than 60 days after the date of the enactment of this
Act as follows:
(A) Senators.--One Senator shall be appointed by the
Majority Leader of the Senate, and one Senator shall be
appointed by the Minority Leader of the Senate.
(B) Members of the House of Representatives.--One Member of
the House of Representatives shall be appointed by the
Speaker of the House of Representatives, and one Member of
the House of Representatives shall be appointed by the
Minority Leader of the House of Representatives.
(C) Additional members.--Eight members shall be appointed
by the President, without regard to political affiliation, on
the basis of demonstrated expertise in public broadcasting,
education, entertainment, finance, or investment.
(2) Ex officio members.--The Secretary of Commerce, the
Chairman of the Federal Communications Commission, and the
President of the Corporation for Public Broadcasting shall
serve on the Commission as nonvoting ex officio members.
(b) Vacancies.--Any vacancy on the Commission shall be
filled in the manner in which the original appointment was
made. The vacancy shall not affect the power of the remaining
members to execute the duties of the Commission.
(c) Chairperson and Vice Chairperson.--The Commission shall
elect a chairperson and a vice chairperson from among the
members of the Commission.
(d) Quorum.--Eight members of the Commission shall
constitute a quorum for all purposes, except that a lesser
number may constitute a quorum for the purpose of holding
hearings.
SEC. 204. COMPENSATION.
(a) Pay.--Members of the Commission shall serve without
compensation.
(b) Travel Expenses.--Members of the Commission shall be
allowed reasonable travel expenses, including a per diem
allowance, in accordance with section 5703 of title 5, United
States Code, when performing duties of the Commission.
SEC. 205. POWERS.
(a) Meetings.--The Commission shall first meet not later
than 30 days after the date on which all members are
appointed, and the Commission shall meet thereafter on the
call of the chairperson or a majority of the members.
(b) Hearings and Sessions.--The Commission may hold such
hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Commission
considers appropriate. The Commission may administer oaths or
affirmations to witnesses appearing before it.
(c) Access to Information.--The Commission may secure
directly from any Federal agency information necessary to
enable it to carry out this title, if the information may be
disclosed under section 552 of title 5, United States Code.
Subject to the previous sentence, on the request of the
chairperson or vice chairperson of the Commission, the head
of such agency shall furnish such information to the
Commission.
(d) Use of Facilities and Services.--Upon the request of
the Commission, the head of any Federal agency may make
available to the Commission any of the facilities and
services of such agency.
(e) Personnel From Other Agencies.--On the request of the
Commission, the head of any Federal agency may detail any of
the personnel of such agency to serve as an Executive
Director of the Commission or assist the Commission in
carrying out the duties of the Commission. Any detail shall
not interrupt or otherwise affect the civil service status or
privileges of the Federal employee.
(f) Voluntary Service.--Notwithstanding section 1342 of
title 31, United States Code, the chairperson of the
Commission may accept for the Commission voluntary services
provided by a member of the Commission.
SEC. 206. TERMINATION.
The Commission shall terminate 30 days after the date of
the submission of the final report of the Commission to
Congress.
SEC. 207. AUTHORIZATION OF APPROPRIATIONS.
(a) Commission.--There are authorized to be appropriated to
the Commission such sums as may be necessary to carry out the
provisions of title II of this Act.
(b) Corporation for Public Broadcasting.--Section
396(k)(1)(C) of the Communications Act of 1934 (47 U.S.C.
396(k)(1)(C)) is amended--
(1) by striking ``and'' after ``1995,''; and
(2) by striking ``1996.'' and inserting ``1996, and
$250,000,000 for each of fiscal years 1998, 1999, and
2000.''.
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