[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

[[Page S4928]]

     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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