[Congressional Record Volume 149, Number 71 (Tuesday, May 13, 2003)]
[Senate]
[Pages S6082-S6083]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. STEVENS (for himself, Mr. Hollings, Mr. Burns, Mr. Lott, 
        Mr. Dorgan, and Mr. Wyden):
  S. 1046. A bill to amend the Communications Act of 1934 to preserve 
localism, to foster and promote the diversity of television 
programming, to foster and promote competition, and to prevent 
excessive concentration of ownership of the nation's television 
broadcast stations; to the Committee on Commerce, Science, and 
Transportation.
  Mr. STEVENS. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1046

       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 ``Preservation of Localism, 
     Program Diversity, and Competition in Television Broadcast 
     Service Act of 2003''.

     SEC. 2. FINDINGS; PURPOSES.

       (a) Findings.--Congress makes the following findings:

[[Page S6083]]

       (1) The principle of localism is embedded in the 
     Communications Act in section 307(b) of the Communications 
     Act of 1934 (47 U.S.C. 307(b)). It has been the pole star for 
     regulation of the broadcast industry by the Federal 
     Communications Commission for nearly 70 years.
       (2) In the Telecommunications Act of 1996, Congress 
     directed the Federal Communications Commission to increase 
     the limitations on national multiple television ownership so 
     that one party could not own or control television stations 
     whose aggregate national audience reach exceeded 35 percent. 
     Congress did so because it recognized that--
       (A) further national concentration could not be undone;
       (B) other regulatory changes, such as the repeal by the 
     Commission of its financial and syndication regulations, 
     would heighten the power of the national television networks; 
     and
       (C) the independence of non-network-owned stations would be 
     threatened if network ownership exceeded 35 percent.
       (3) If a limit to the national audience reach of television 
     stations that one party may own or control is not codified at 
     this time--
       (A) further national concentration may occur whose 
     pernicious effects may be difficult to eradicate; and
       (B) the independence of non-network-owned stations will be 
     threatened, placing local stations in danger of becoming mere 
     passive conduits for network transmissions.
       (4) A cap on national multiple television ownership will 
     help preserve localism by limiting the networks ability to 
     dictate programming aired on local stations.
       (5) The landscape of national ownership has changed 
     dramatically over the past two decades since the time when 
     the networks were limited to owning just seven television 
     stations nationwide:
       (A) the Commissions financial and syndication regulations 
     have been repealed;
       (B) the networks can own more than one television station 
     in many local markets;
       (C) the networks have embraced programming ventures from 
     studios to syndication to foreign sales; and
       (D) the networks own the most popular cable and Internet 
     content businesses.

     Together these changes have strengthened the networks hands 
     and given them strong incentives to override local interests.
       (6) Unlike non-network-owned stations which are only 
     concerned with local viewers, network-owned stations have 
     multiple interests they must consider: national advertising 
     interests, syndicated programming interests, foreign sales 
     interests, cable programming interests, and, lastly, local 
     station interests.
       (7) The possibility of further nationalization threatens 
     the current give-and-take between non-network-owned 
     affiliates and networks which can result in programming being 
     edited, scheduled, or promoted in ways that are more 
     appropriate for local audiences.
       (8) As network power has grown in recent years, the 
     networks have forced affiliation agreements to tilt the 
     balance of power even more in their favor. Contract 
     provisions encroach on the ability of non-network-owned 
     affiliates to reject programming that local stations 
     determine not to be in the best interests of their local 
     communities, and local stations are penalized for 
     unauthorized preemptions (as determined by the network) and 
     for exceeding preemption baskets.
       (9) This Act will help to preserve localism in and to 
     prevent the further nationalization of the television 
     broadcast service.
       (b) Purposes.--The purposes of this Act are--
       (1) to promote the values of localism in the television 
     broadcast service;
       (2) to promote diversity of television programming and 
     viewpoints;
       (3) to promote competition; and
       (4) to prevent excessive concentration of ownership by 
     establishing a limit to the national audience reach of the 
     television stations that any one party may own or control.

     SEC. 3. NATIONAL TELEVISION MULTIPLE OWNERSHIP LIMITATIONS.

       (a) Establishment of National Television Multiple Ownership 
     Limitations.--Part I of Title III of the Communications Act 
     of 1934 is amended by inserting after section 339 (47 U.S.C. 
     339) the following new section:

     ``SEC. 340. NATIONAL TELEVISION MULTIPLE OWNERSHIP 
                   LIMITATIONS.

       ``(a) National Audience Reach Limitation.--The Commission 
     shall not permit any license for a commercial television 
     broadcast station to be granted, transferred, or assigned to 
     any party (including all parties under common control) if the 
     grant, transfer, or assignment of such license would result 
     in such party or any of its stockholders, partners, or 
     members, officers, or directors, directly or indirectly, 
     owning, operating or controlling, or having a cognizable 
     interest in television stations which have an aggregate 
     national audience reach exceeding 35 percent.
       ``(b) No Grandfathering.--The Commission shall require any 
     party (including all parties under common control) that holds 
     licenses for commercial television broadcast stations in 
     excess of the limitation contained in subsection (a) to 
     divest itself of such licenses as may be necessary to come 
     into compliance with such limitation within one year after 
     the date of enactment of this section.
       ``(c) Section Not Subject to Forbearance.--Section 10 of 
     this Act shall not apply to the requirements of this section.
       ``(d) Definitions.--
       ``(1) National audience reach.--The term `national audience 
     reach' means--
       ``(A) the total number of television households in the 
     Nielsen Designated Market Area (DMA) markets in which the 
     relevant stations are located, or as determined under a 
     successor measure adopted by the Commission to delineate 
     television markets for purposes of this section; divided by
       ``(B) the total national television households as measured 
     by such DMA data (or such successor measure) at the time of a 
     grant, transfer, or assignment of a license.

     No market shall be counted more than once in making this 
     calculation.
       ``(2) Cognizable interest.--Except as may otherwise be 
     provided by regulation by the Commission, the term 
     `cognizable interest' means any partnership or direct 
     ownership interest and any voting stock interest amounting to 
     5 percent or more of the outstanding voting stock of a 
     licensee.''.
       (b) Conforming Amendment.--Section 202(c)(1) of the 
     Telecommunications Act of 1934 (P.L. 104-104; 110 Stat. 111) 
     is amended--
       (1) by striking ``its regulations'' and all that follows 
     through ``by eliminating'' and inserting ``its regulations 
     (47 CFR 73.3555) by eliminating'';
       (2) by striking ``; and'' at the end of subparagraph (A) 
     and inserting a period; and
       (3) by striking subparagraph (B).
                                 ______