[Senate Report 108-396]
[From the U.S. Government Publishing Office]
108th Congress Report
SENATE
2d Session 108-396
_______________________________________________________________________
Calendar No. 786
PUBLIC BROADCASTING REAUTHORIZATION ACT OF 2004
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2645
together with
ADDITIONAL VIEWS
DATE deg.October 8, 2004.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred eighth congress
second session
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West
KAY BAILEY HUTCHISON, Texas Virginia
OLYMPIA J. SNOWE, Maine JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois RON WYDEN, Oregon
JOHN ENSIGN, Nevada BARBARA BOXER, California
GEORGE ALLEN, Virginia BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire MARIA CANTWELL, Washington
FRANK LAUTENBERG, New Jersey
Jeanne Bumpus, Staff Director and General Counsel
Rob Freeman, Deputy Staff Director
Robert W. Chamberlin, Chief Counsel
Kevin D. Kayes, Democratic Staff Director and Chief Counsel
(ii)
Calendar No. 786
108th Congress Report
SENATE
2d Session 108-396
======================================================================
PUBLIC BROADCASTING REAUTHORIZATION ACT OF 2004
_______
October 8, 2004.--Ordered to be printed
_______
Mr. McCain, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 2645]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2645) to amend the
Communications Act of 1934 to authorize appropriations for the
Corporation for Public Broadcasting, and for other purposes,
having considered the same, reports favorably thereon and
recommends that the bill do pass.
Purpose of the Bill
The purpose of S. 2645 is to reauthorize the Corporation for
Public Broadcasting (CPB or ``the Corporation'') through fiscal
year (FY) 2011 so that the private, non-profit corporation may
continue to facilitate the growth and development of
educational and cultural broadcast programming. The Corporation
was last authorized in 1992 for four years. The additional
purpose of S. 2645 is to foster the digital transition and the
production and acquisition of digital programming (particularly
local digital programming), to prevent government funds from
inuring to the benefit of non-public broadcasting entities, to
ensure that government funds are distributed expeditiously to
public broadcasting stations, and to modify certain definitions
in recognition of the digital age.
Background and Needs
Public broadcasting dates back to the 1920s, when the first
radio stations devoted to instructional and cultural
programming went on the air. Today, 356 public television
stations and almost 800 public radio stations broadcast over-
the-air throughout the 50 States. These non-commercial stations
are owned and operated by local entities that, under FCC rules,
must either be: (1) a nonprofit educational institution, such
as a university or a local school board; (2) a governmental
entity other than a school, such as a State agency; or (3)
another type of nonprofit educational entity, such as a
``community'' organization.
In 1965, President Lyndon Johnson authorized the creation of
the Carnegie Commission on Educational Television, formed with
the sponsorship of the Carnegie Corporation, to study
educational television's financial needs. Based on
recommendations of the Carnegie Commission, President Johnson
proposed and Congress moved expeditiously to enact the Public
Broadcasting Act of 1967 (the Act), amending the Communications
Act of 1934, to create the CPB.
The CPB is a private, non-profit corporation chartered by the
Federal government to facilitate the growth and development of
educational and cultural broadcast programming. The Corporation
was formed to develop high-quality programming, raise awareness
and support for public broadcasting, and perform long-term
planning to sustain the financial viability of public
broadcasting. Today, the primary function of the CPB is to
receive and distribute government funds to stations, develop
national programming, and maintain universal access to public
broadcasting's educational programs and services. On average,
the CPB funds represent only 15 percent of an individual
station's operating budget.
The funds the CPB distributes to stations come from an annual
congressional appropriation. In 1975, the Public Broadcasting
Financing Act authorized advance appropriations and long term
financing for the CPB. Appropriations are established two years
in advance of the disbursement from the Federal treasury. For
example, Congress has already appropriated $400 million for FY
2006 to the CPB. The Corporation has separate accounts for the
Digital Fund and the Public Broadcasting Interconnection Fund,
which are appropriated on an annual basis. In addition, the
Public Telecommunications Facilities Program (PTFP), which is
administered by the Department of Commerce, is also
appropriated on an annual basis. The Corporation is accountable
to Congress for the disbursement of these funds and required to
submit to audits.
The Corporation is expressly prohibited from producing or
distributing public television programming and from owning
public broadcasting stations. Therefore, in 1969, a national
public television programming network was created called PBS,
the Public Broadcasting Service. PBS is a private, nonprofit
program distribution company that is owned and operated by the
public television stations. PBS is prohibited from owning
public broadcasting stations and from producing programming.
Instead, PBS purchases the rights to a variety of programs and
aggregates these programs into the national programming service
(NPS), which is distributed to its 349 member public television
stations.
In 1970, the CPB created National Public Radio (NPR). Unlike
CPB and PBS, which are prohibited from producing programming,
NPR is a private, not-for-profit organization that produces,
acquires, and distributes news and cultural programs to its 770
member public radio stations. NPR produces extended coverage of
special events and breaking news and other diverse programming.
Another national public radio programmer, Public Radio
International (PRI), provides many public radio stations with
additional programming options. PRI is an independent, not-for-
profit corporation that provides over 400 hours of programming
each week to its 744 affiliates nationwide. Individual public
television or radio stations also produce programming for
themselves and to sell to other stations. Stations are able to
generate significant revenues from the distribution of
programming.
Public broadcasting stations exercise complete discretion
over programming decisions--all licensees are owned and
controlled at the local level. This structure is due, in part,
to the institutional and financial factors that motivated the
founding of each individual public television station. Unlike
commercial television stations, which typically involve
business-related investment decisions, establishing a public
television station entails a local-level commitment to the
education and cultural enrichment of viewers. Further, whereas
advertising revenues finance commercial television, public
television is prohibited from airing advertisements and has
always been financed by both public and private sources.
AFFECTED ORGANIZATIONS' COMMENTS
CPB, APTS, NPR, and PBS issued a statement on S. 2645 on July
14, 2004:
``S. 2645 as reported by the Senate Committee on
Commerce, Science and Transportation is a constructive
measure extending the authorization for the Corporation
for Public Broadcasting (CPB) as well as the digital
transition and interconnection satellite fund.
``S. 2645 also extends the authorization for the
Public Telecommunications Facilities Program (PTFP) at
the Department of Commerce for seven years. For 32
years, this program has been critical for public
broadcasting stations in acquiring, maintaining, and
replacing analog equipment and will be essential for
maintaining digital equipment in the future. We believe
it is a prudent policy for the Congress to protect the
investment it has already made in the digital
transition.''
Legislative History
On July 13, 2004, Senator McCain introduced S. 2645, a bill
to reauthorize the CPB and its programs, and for other
purposes. That same day, the Senate Commerce, Science, and
Transportation Committee held a hearing to provide oversight of
CPB and to examine the state of public broadcasting.
On July 20, 2004 the Committee held an executive session at
which S. 2645 was considered. The bill was approved unanimously
by voice vote and was ordered reported without amendments.
Estimated Costs
In compliance with subsection (a)(3) of paragraph 11
of rule XXVI of the Standing Rules of the Senate, the Committee
states that, in its opinion, it is necessary to dispense with
the requirements of paragraphs (1) and (2) of that subsection
in order to expedite the business of the Senate. deg.
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 2645--Public Broadcasting Reauthorization Act of 2004
Summary: S. 2645 would authorize grants to the Corporation
for Public Broadcasting (CPB) through 2011. These
reauthorizations would extend the Public Broadcasting Fund and
public telecommunications facilities grant program through
2011, as well as authorize funding for the transition to
digital technology through 2009 and the Satellite
Interconnection Fund for 2005. Appropriations of the authorized
amounts would result in additional outlays of $350 million in
2005 and $3.1 billion over the 2005-2011 period. Enacting the
bill would not affect direct spending or revenues.
S. 2645 contains no intergovernmental or private-sector
mandates as defined by the Unfunded Mandates Reform Act (UMRA).
To the extent that the CPB provides grants to publically owned
stations, CBO estimates the bill would provide significant
benefits to state, local, and tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 2645 is shown in the following table.
The costs of this legislation fall within budget function 500
(education, training, employment, and social services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------------------
2004 2005 2006 2007 2008 2009 2010 2011
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending for the Corporation for Public
Broadcasting Under Current Law:
Budget Authority \1\................ 437 390 400 0 0 0 0 0
Estimated Outlays................... 437 390 400 0 0 0 0 0
Proposed Changes:
Public Broadcasting Fund:
Authorization Level............. 0 0 0 416 432 450 468 487
Estimated Outlays............... 0 0 0 416 432 450 468 487
Digital Technology:
Authorization Level............. 0 50 50 40 30 20 0 0
Estimated Outlays............... 0 50 50 40 30 20 0 0
Satellite Interconnection Fund:
Authorization Level............. 0 250 0 0 0 0 0 0
Estimated Outlays............... 0 250 0 0 0 0 0 0
Public Telecommunications Facilities
Program Grants:
Authorization Level............. 0 50 52 54 56 58 61 63
Estimated Outlays............... 0 50 52 54 56 58 61 63
Total Changes:
Authorization Level......... 0 350 102 510 518 528 529 550
Estimated Outlays........... 0 350 102 510 518 528 529 550
Spending for Public Broadcasting Under
S. 2645:
Estimated Authorization Level \1\... 437 740 502 510 518 528 529 550
Estimated Outlays................... 437 740 502 510 518 528 529 550
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 level is the amount appropriated for that year. The Public Broadcasting Fund also has received
appropriations for 2005 and 2006.
Basis of estimate: CBO assumes that the bill would be
enacted near the start of fiscal year 2005 and that the
authorized amounts will be appropriated for each year.
PUBLIC BROADCASTING FUND
The bill would authorize grants for the Corporation for
Public Broadcasting through 2011. Under current law, funding
for the CPB has been provided through 2006 by appropriations
acts. Funding for the CPB is provided two years in advance of
its availability. Thus, the appropriation provided in the 2004
act becomes available in 2006.
S. 2645 would authorize the appropriation of specific
amounts for each year from 2007 to 2011, with the levels
climbing from $416 million in 2007 to $487 million in 2011.
Assuming the appropriation of the authorized amounts, the
resulting outlays would be $416 million in 2007, and $2,253
million over the 2007-2011 period.
GRANTS FOR THE TRANSITION TO DIGITAL TECHNOLOGY
S. 2645 would authorize funding to be used to facilitate
the transition from analog to digital technology and for the
acquisition or production of digital programming. Specifically,
the bill would authorize the appropriation of $50 million in
2005 and 2006 and lesser amounts for next three years. Assuming
the appropriation of the authorized amounts, CBO estimates
those provisions would result in outlays of $50 million in 2005
and $190 million over the 2005-2009 period.
SATELLITE INTERCONNECTION FUND
The bill would authorize the appropriation of $250 million
in 2005 for the Satellite Interconnection Fund. If the full
amount is not appropriated for that year, the funding
authorization would continue in subsequent years until a
cumulative total of $250 million has been appropriated. CBO
assumes that the full amount is appropriated and spent in 2005.
PUBLIC TELECOMMUNICATIONS FACILITIES PROGRAM GRANTS
S. 2645 would reauthorize funding for grants to assist in
the planning and construction of public telecommunications
facilities, including analog and digital broadcast facilities
and equipment. The authorized levels under the bill would
gradually rise from $50 million in 2005 to $63 million in 2011.
Assuming the authorized amounts are appropriated, outlays would
total $50 million in 2005 and $395 million over the 2005-2011
period.
Intergovernmental and private-sector impact: S. 2645
contains no intergovernmental or private-sector mandates as
defined in UMRA. To the extent that the CPB provides grants to
publically owned stations, CBO estimates the bill would provide
significant benefits to state, local, and tribal governments.
Estimate prepared by: Federal Costs: Paul Cullinan; Impact
on State, Local, and Tribal Governments: Sarah Puro; and Impact
on the Private Sector: Crystal Taylor.
Estimate approved by: Peter H. Fontaine; Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
Because S. 2645 does not create any new programs, the
legislation would have no additional regulatory impact, and
will result in no additional reporting requirements.
NUMBER OF PERSONS COVERED
S. 2645 would reauthorize the CPB through Fiscal Year (FY)
2011 and is intended to make certain changes to the Public
Broadcasting Act of 1967. The number of persons covered by this
legislation should be consistent with current levels of
individuals affected.
ECONOMIC IMPACT
S. 2645 would authorize funds to support the development of
national programming and maintain universal access for citizens
to public broadcasting's educational programs and services.
PRIVACY
S. 2645 is not expected to have an adverse effect on the
personal privacy of any individuals that will be impacted by
this legislation.
PAPERWORK
S. 2645 has minimal or no impact on current paperwork levels.
Section-by-Section Analysis
Section 1. Short title.
This section provides that the act may be cited as ``The
Public Broadcasting Reauthorization Act of 2004.''
Section 2. Authorization of appropriations.
Section 2 would authorize annual funding for the CPB. The
Public Broadcasting Reauthorization Act reauthorizes the
following pre-established funds: (1) the annual Public
Broadcasting Fund; (2) the Digital Fund; and (3) the Satellite
Interconnection Fund. In addition, the bill would reauthorize
the PTFP, which is managed by NTIA under the Department of
Commerce.
A. ANNUAL FUNDING
Congress provides a two-year advance appropriation to the
annual funding account (i.e., monies are appropriated in 2004
to be spent in 2006). The annual fund monies are used to cover:
(1) CPB administrative costs; (2) system support; (3) Community
Service Grants for stations; and (4) programming. Congress
advance appropriated $350 million for CPB for FY 2004, $377.9
million for FY 2005, and $400 million for FY 2006. The bill
would authorize the following amounts:
$416 million for FY 2007;
$432 million for FY 2008;
$450 million for FY 2009;
$468 million for FY 2010; and,
$487 million for FY 2011.
B. THE DIGITAL FUND
Section 2 would also authorize monies for the CPB's digital
fund. Congress created the digital fund in 2001 to assist
public broadcasters with costs related to the transition to
digital broadcasting. Stations submit grant applications to CPB
for digital equipment, such as towers, translators, cameras,
and studio equipment, that are then reviewed by a panel that
includes station representatives and members of the CPB Board.
The grants are matched with funds raised by the receiving
station.
In 1997 the Corporation estimated that the costs for the
government mandated digital transition for television broadcast
stations would be at least $1.8 billion, largely for
transmission equipment. Under a plan designed by the
Corporation and the stations, a majority of these costs would
be funded by nonfederal sources, such as by State governments,
foundations, and corporations, and approximately $771 million
(45 percent) would be funded through Federal funds. Federal
funding has provided over $230 million to the CPB to help the
digital transition. To date, 248 public television stations, or
70 percent of all public television stations, are on the air
with a digital signal (serving markets that cover 87 percent of
U.S. households). While there is no government mandate
requiring radio stations to convert to digital, approximately
20 public radio stations are currently broadcasting in digital.
Although specific appropriations for the digital transition
were made for the Corporation in fiscal years 1999 and 2000--
for $15 million and $10 million, respectively--both were
contingent on the enactment of an authorization for the
Corporation, which did not occur. The Corporation received its
first specific digital appropriation for $20 million in FY 2001
after Congress enacted both an appropriation and an authorizing
provision for the CPB. A second digital appropriation for $25
million was received for FY 2002. For FY 2003 and 2004,
Congress appropriated approximately $50 million for the digital
fund.
This bill would authorize the following funding levels for
the digital fund anticipating that the digital transition
should be complete by FY 2009:
$50 million for FY 2005;
$50 million for FY 2006;
$40 million for FY 2007
$30 million for FY 2008; and,
$20 million for FY 2009.
In addition to authorizing funding to equip stations to
distribute digital programming, this bill would authorize
digital fund monies to be used for the acquisition and
production of digital programming, including programming of a
national, regional, or local interest. The Committee believes
that fostering the production and distribution of compelling
digital programming, including in high-definition format, will
provide an incentive for consumers to purchase new digital
television sets and speed the digital transition. An April
report released by the Government Accountability Office (GAO)
noted that public television broadcasters believe that the
production of digital programming is as critical to the digital
transition as is digital equipment. Therefore, the Committee
has acted to ensure that stations have funds that may be used
for this need.
The GAO's report also found that the Corporation has not
always been timely in its distribution of digital
appropriations. This legislation also would require that the
Corporation to distribute the digital funds ``as soon after
appropriation as practicable'' and ``expeditiously.'' The
Committee believes that a practical and expeditious timeframe
would be within six months of appropriation. Additionally, the
bill would require the Corporation to consult with the stations
and their representative organizations (e.g. The Association of
Public Television Stations (APTS), NPR, and PBS) regarding the
grant criteria and grant amounts for digital funds.
C. THE INTERCONNECTION FUND
Section 2 would authorize appropriators to provide $250
million to support public broadcasting's satellite
interconnection and distribution system over the next five
years. Congress established a separate fund to finance the
interconnection systems for both radio and television public
broadcasting services. These systems enable the delivery of
programming from the programming distributors (NPR, PBS, and
others) to the local radio and television stations. Another
potential function of the television interconnection system
that has been proposed and is being evaluated by the Department
of Homeland Security is using it as the backbone of a new
improved national emergency communications system.
The interconnection system provides an efficient and cost-
effective mechanism for distributing programming to public
television stations nationwide. Interconnection serves as the
conduit for distribution of PBS's National Program Service, but
also provides stations with a variety of other vital
programming options, such as PBS Kids, and PBS You, enabling
local stations to serve their audiences with digital multicast
content. Beyond direct programming distribution, the
interconnection system also provides content in support of
public television's educational goals, supporting educational
outreach in local communities through distribution of services
such as the Ready to Learn Television program, which is funded
under the No Child Left Behind Act. Without an interconnection
system local stations would face formidable financial and
logistical challenges in assembling the breadth and depth of
programming needed to serve their local communities.
In 1998, for example, Congress appropriated $48 million for
public radio satellite replacement when its existing satellite
fell out of orbit. Earlier, in 1989, Congress provided $200
million to replace public broadcasting's satellite
interconnection systems and provide for increased service for
the future. Of that amount, $150 million was allocated for
television and $50 million for radio, which was authorized to
be appropriated over several years in order to allow public
broadcasting to negotiate long-term satellite leases and obtain
the most favorable rates.
The bill would take the same comprehensive approach that was
taken in 1989 and would authorize funds for the next-generation
replacement systems for both television and radio
interconnection systems in order to enable public broadcasting
to obtain the most favorable terms for their satellite leases.
Moreover, this authorization would provide local stations with
equipment and technology that would allow them to obtain
programming from the national distribution entities (NPR and
PBS) as well as from other stations directly without the need
for a physical exchange of films, tapes, DVDs, etc. The new
interconnection system is expected to result in greater
efficiency, flexibility in program scheduling and significant
cost savings.
Public television broadcasters estimate they need $177
million to support the interconnection system over the next six
years and public radio broadcasters estimate they need $70
million. For FY 2004, Congress appropriated $10 million for
these systems.
The Committee notes that approximately $12 million of the
total cost is to provide for C-band ``backyard'' satellite
television service, which has come to serve an increasingly
small population nationwide as direct broadcast satellite (DBS)
service has become more popular. From a high of 2.3 million
registered backyard dish owners in 1996, the registered C-band
subscriber base has declined precipitously. In the past year
alone, the C-band subscriber base has declined nearly 30
percent, dropping to 323,013 subscribers as of July, 2004. At
this rate of decline, the home C-band dish market will
virtually vanish by 2006.
At the same time, the DBS subscriber base has grown to over
23 million users. Through continuing negotiations with DirecTV
and EchoStar, the two primary satellite television service
providers, C-band customers are able to receive a PBS national
program feed. If these trends continue, the Committee
recommends that the statutory requirement that C-band service
be provided by the interconnection system be eliminated, in
light of its significant cost and diminishing benefit.
D. PUBLIC TELECOMMUNICATIONS FACILITIES PROGRAM GRANTS (PTFP)
Managed by the Department of Commerce, the PTFP provides
matching grants on a competitive basis to public broadcasting
stations to assist in the planning, acquisition, installation,
and modernization of public telecommunications facilities. PTFP
funding continues to be critical to the Federally-mandated
transition from analog to digital technology for the public
television stations, especially for those broadcasters who are
located in, or who serve, largely rural areas. Specifically,
the Communications Act provides these grants to ``extend
delivery of public telecommunications services to as many
citizens of the United States as possible by the most efficient
and economical means.'' The program may provide up to 100
percent of the funds necessary for the planning of a public
telecommunications facility, but the maximum amount of a grant
for the construction of a public telecommunication facility is
75 percent of the eligible project costs. The Committee notes
that PTFP helps to attract non-Federal dollars to public
broadcasting by requiring stations to seek matching funds from
other sources to satisfy grant application requirements.
PTFP plays an essential role in developing and maintaining
the infrastructure to deliver a new generation of expanded
programming and other services tailored to meet local needs.
Also, it continues to ensure uninterrupted universal service to
communities served by public broadcasters whose facilities have
been damaged or destroyed by weather and other disasters. For
instance, WNET in New York City applied for and received
emergency funds to replace transmission equipment that was
destroyed by the September 11, 2001, terrorist attack on the
World Trade Center.
Congress provided the PTFP fund with approximately $44
million in both FY 2002 and 2003 with approximately $36 million
of that amount going toward digital equipment. In FY 2004,
Congress provided only $22 million to the PTFP fund, but the
most recent appropriations bill provides $50 million for PTFP.
The Public Broadcasting Reauthorization Act of 2004 would
provide the following for PTFP:
$50 million for FY 2005;
$52 million for FY 2006;
$54.08 million for FY 2007
$56.24 million for FY 2008;
$58.49 million for FY 2009;
$60.82 million for FY 2010; and,
$63.25 million for FY 2011.
This section would also authorize these funds to be used to
improve not only analog broadcast facilities and equipment but
also digital broadcast facilities and equipment. As the Nation
moves toward all digital broadcasting, PTFP grants should be
used to assist local stations to improve their digital
broadcasting facilities.
Section 3. Recoupment of funds by Corporation.
This section would clarify and expand the Corporation's
authority and discretion under section 396(k)(13) of the
Communications Act of 1934 to recover funds granted to the
licensee of a public broadcasting station that ceases to
provide public telecommunications services. The Committee added
this language to address the sales and transfers of local
public broadcasting stations to entities that will not continue
to offer public broadcasting services and where the proceeds of
such transactions will be used for purposes other than public
broadcasting. Funds from the Corporation represent an
investment by the American public in public broadcasting
stations and services. Therefore, the Committee does not
believe that entities should retain Corporation funds or reap a
windfall when they no longer offer public broadcasting
services.
The language in the bill would clarify that the Corporation
cannot release funds to a station unless the station licensee
agrees, upon acceptance of a grant, that if it ceases to be
eligible for Corporation support it will return any unexpended
grant funds.
In addition, the legislation permits the Corporation to
recover funds it has provided to a station for equipment or
facilities grants for 5 years prior to a sale or transfer that
results in a cessation of public broadcasting service by that
station. A station licensee must agree, upon acceptance of a
grant, that if it ceases to be eligible for Corporation grant
support it will return a share of the value of such facilities
or equipment that is proportional to the Corporation's
contribution to purchase such facilities and equipment.
Section 4. Redefinition of public telecommunications services to
include new technologies.
This section would modify the definition of ``public
telecommunications services'' to update and broaden the
definition to include the use of new technologies available to
public broadcasters such as datacasting and webcasting. When
the current definition was adopted, the primary means for
broadcasters to deliver content was through over-the-air
television or radio broadcasting. Digital technology allows a
station to transmit data including video, audio, and graphics
to personal computers or servers. This technology, known as
datacasting, uses spectrum to transmit data to specific
addresses using inexpensive equipment including a tuner card
and a small antenna. Two major datacasting applications used by
local public television stations include transmitting digital
content to local schools, colleges, and universities, and
partnering with State and local public safety agencies to
provide secure, encrypted emergency communications.
The Committee finds that new technologies such as datacasting
have enormous potential for providing valuable new public
services to communities. It is the Committee's intent that
public telecommunications entities should continue to serve
their communities using ``all appropriate available
telecommunications distribution technologies'' as prescribed in
the findings of the Act (47 U.S.C. (396 (a)(9)).
Section 5. Local content, programming, and services.
Although the Corporation does not currently provide or have
explicit authority to make grants for the production of local
television programming, CPB funding can indirectly support
local programming productions through two sources: (1)
Community Service Grants, which may be used at the discretion
of television licensees to produce their own programming, and
(2) grants made by the Corporation to the Independent
Television Service and the National Center for Outreach, both
of which fund some local productions. Local television stations
produce their own programming to complement programming from
PBS and to meet the needs of their local communities. The cost
of producing local programming, however, is often a major
impediment toward television licensees doing so. In the GAO's
April 2004 survey, 79 percent of the public television
licensees indicated that the amount of local programming they
currently produce is not sufficient to meet local community
needs. Moreover, 85 television licensees stated that they do
not have adequate funds to create local programming or that
they would produce more local programming if they could obtain
additional sources of funding. Several licensees stated that
they have had to ignore local issues and turn away programming
opportunities because they lacked the financial resources.
The Committee acknowledges that the locally owned and
controlled public broadcasting stations are models of local
service in their communities. Local public broadcasting
stations control their own programming content and schedules
and tailor them to the interests of their communities. The
Committee supports and emphasizes this service by including
language in section five that would provide explicit authority
for the CPB to provide community service grants to stations to
support local production of programming that serves the needs
and audience interests of their local communities.
In 1992, this Committee amended the Act to add the
declaration of purpose which expressed a congressional intent
that public broadcasting is not just television and radio
programs but rather ``that public television and radio stations
and public telecommunications services constitute valuable
local community resources for utilizing electronic media to
address national concerns and solve local problems through
community programs and outreach programs.'' (47 U.S.C.
396(a)(8)). The Committee builds upon this finding by directing
the Corporation to consider local service while developing
criteria for the community service grants and by encouraging
the Corporation to continue its efforts with stations to
sustain local services which can include educational, outreach,
civic and cultural activities, and content, as well as
workplace training, public safety, and other initiatives that
benefit the public. At the same time, the Committee recognizes
that national aggregation of programming funds through PBS's
NPS and through NPR, PRI, and other national producers of
programming for public television and radio, makes possible
much of the stations' schedules. The aggregation of funds for
children's programming, news and public affairs, and other
cultural and educational programming helps to build local
underwriting and membership support. Such programming is often
produced by local member stations and reflects the interests of
the local community.
In addition, the Committee recognizes the importance of the
work of the National Minority Public Broadcasting Consortia
(Minority Consortia), which helps develop, acquire, and
distribute public television programming to serve the needs of
African American, Asian American, Latino, Native American,
Pacific Islander, and many other viewers. As many communities
in the Nation welcome more and more citizens of diverse ethnic
backgrounds, the local public television stations should strive
to meet these viewers' needs. Despite increased appropriations
to CPB, the funding for the Minority Consortia has remained
relatively flat. With an increased focus on programming to meet
local communities needs and increased reauthorization funding
levels, the Committee encourages the CPB to review the funding
and resources provided to the Minority Consortia and to
increase such funding and resources if necessary.
Additional Views of Senator McCain and Senator Hollings
During the Committee's consideration of S. 2645, it was the
Committee's intent to adopt an amendment offered by Senators
McCain and Hollings to increase the authorization amounts and
make other changes to the underlying bill. Due to the
invocation of a Senate rule, the consideration of amendments to
this bill was prevented. It is our expectation and hope,
however, that this amendment will be agreed to and accepted as
this legislation receives further consideration before the full
Senate.
The amendment would authorize the CPB's annual funding
account at the following levels:
$428 million for FY 2007;
$458 million for FY 2008;
$490 million for FY 2009;
$524 million for FY 2010; and
$560 million for FY 2011.
The amendment would authorize the Department of Commerce's
PTFP program at the following levels:
$50,000,000 for FY 2005;
$53,500,000 for FY 2006;
$57,240,000 for FY 2007;
$61,240,000 for FY 2008;
$64,200,000 for FY 2009;
$68,480,000 for FY 2010; and
$73,270,000 for FY 2011.
The amendment would also add an additional section to the
bill relating to representatives, organizations, affinity
groups, and rural communities.
Under current law, a nine-person Board of Directors governs
CPB, sets policy, and establishes programming priorities. Only
five members of the board at any time may be from one political
party. The President appoints each member, who, after
confirmation by the Senate, serves a six-year term. By statute,
Board members must be United States citizens who are ``eminent
in such fields as education, cultural and civic affairs, or the
arts, including radio and television''. (47 U.S.C. 396(c)(2))
Additionally, at least two members of the Board must be persons
representing public broadcasting licensees.
The additional section would amend the law to clarify that at
least one of the nine-member CPB Board should be selected from
among individuals who represent the licensees and permittees of
public television stations, and that at least one additional
CPB Board member should be selected from among individuals who
represent the licensees and permittees of public radio
stations. Although the President has full discretion in
selecting his nominees to the CPB Board, the President is urged
to give consideration to the suggestions made by the licensees
and permittees. Additionally, the Committee encourages the
President to select board members who represent the diverse
geography of licensees and permittees--rural, urban, non-
contiguous States, territories, and Native American
reservations.
In addition, to ensure that CPB's funding priorities are
responsive to the needs of local stations and the communities
they serve, this section would amend various portions of the
law to require consultation with public radio and television
licensees and representatives designated by their national
organizations when allocating money from CPB's national
programming fund, its digital fund, the fund for Community
Service Grants, and the Interconnection Fund. Organizations
like APTS, PBS, and NPR are member service organizations that
represent the vast majority of local stations. They have
elected boards that are representative of the diversity of
types of local stations and can play a constructive role in
assisting CPB with developing policies and procedures that will
enhance localism and service to communities.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
COMMUNICATIONS ACT OF 1934
TITLE III--PROVISIONS RELATING TO RADIO
PART IV. ASSISTANCE FOR PUBLIC TELECOMMUNICATIONS, FACILITIES;
TELECOMMUNICATIONS DEMONSTRATIONS; CORPORATION FOR PUBLIC BROADCASTING
Subpart A--Assistance for Public Telecommunications Facilities
SEC. 391. AUTHORIZATION OF APPROPRIATIONS.
[47 U.S.C. 391]
There are authorized to be appropriated [$42,000,000 for
each of the fiscal years 1992, 1993, and 1994,] $50,000,000 for
fiscal year 2005, $52,000,000 for fiscal year 2006, $54,008,000
for fiscal year 2007, $56,240,000 for fiscal year 2008,
$58,490,000 for fiscal year 2009, $60,820,000 for fiscal year
2010, and $63,250,000 for fiscal year 2011, to be used by the
Secretary of Commerce to assist in the planning and
construction of public telecommunications [facilities]
facilities, including analog and digital broadcast facilities
and equipment, as provided in this subpart. Sums appropriated
under this subpart for any fiscal year shall remain available
until expended for payment of grants for projects for which
applications approved by the Secretary pursuant to this subpart
have been submitted within such fiscal year. Sums appropriated
under this subpart may be used by the Secretary to cover the
cost of administering the provisions of this subpart.
Subpart D--Corporation for Public Broadcasting
SEC. 396. DECLARATION OF POLICY.
[47 U.S.C. 396]
(a) The Congress hereby finds and declares that--
(1) it is in the public interest to encourage the
growth and development of public radio and television
broadcasting, including the use of such media for
instructional, educational, and cultural purposes;
(2) it is in the public interest to encourage the
growth and development of nonbroadcast
telecommunications technologies for the delivery of
public telecommunications services;
(3) expansion and development of public
telecommunications and of diversity of its programming
depend on freedom, imagination, and initiative on both
local and national levels;
(4) the encouragement and support of public
telecommunications, while matters of importance for
private and local development, are also of appropriate
and important concern to the Federal Government;
(5) it furthers the general welfare to encourage
public telecommunications services which will be
responsive to the interests of people both in
particular localities and throughout the United States,
which will constitute an expression of diversity and
excellence, and which will constitute a source of
alternative telecommunications services for all the
citizens of the Nation;
(6) it is in the public interest to encourage the
development of programming that involves creative risks
and that addresses the needs of unserved and
underserved audiences, particularly children and
minorities;
(7) it is necessary and appropriate for the Federal
Government to complement, assist, and support a
national policy that will most effectively make public
telecommunications services available to all citizens
of the United States;
(8) public television and radio stations and public
telecommunications services constitute valuable local
community resources for utilizing electronic media to
address national concerns and solve local problems
through community programs and outreach programs;
(9) it is in the public interest for the Federal
Government to ensure that all citizens of the United
States have access to public telecommunications
services through all appropriate available
telecommunications distribution technologies; and
(10) a private corporation should be created to
facilitate the development of public telecommunications
and to afford maximum protection from extraneous
interference and control.
Corporation Established
(b) There is authorized to be established a nonprofit
corporation, to be known as the ``Corporation for Public
Broadcasting'', which will not be an agency or establishment of
the United States Government. The Corporation shall be subject
to the provisions of this section, and, to the extent
consistent with this section, to the District of Columbia
Nonprofit Corporation Act.
Board of Directors
(c)(1) The Corporation for Public Broadcasting shall have a
Board of Directors (hereinafter in this section referred to as
the ``Board''), consisting of 9 members appointed by the
President, by and with the advice and consent of the Senate. No
more than 5 members of the Board appointed by the President may
be members of the same political party.
(2) The 9 members of the Board appointed by the President
(A) shall be selected from among citizens of the United States
(not regular full-time employees of the United States) who are
eminent in such fields as education, cultural and civic
affairs, or the arts, including radio and television; and (B)
shall be selected so as to provide as nearly as practicable a
broad representation of various regions of the Nation, various
professions and occupations, and various kinds of talent and
experience appropriate to the functions and responsibilities of
the Corporation.
(3) Of the members of the Board appointed by the President
under paragraph (1), one member shall be selected from among
individuals who represent the licensees and permittees of
public television stations, and one member shall be selected
from among individuals who represent the licensees and
permittees of public radio stations.
(4) The members of the initial Board of Directors shall
serve as incorporators and shall take whatever actions are
necessary to establish the Corporation under the District of
Columbia Nonprofit Corporation Act.
(5) The term of office of each member of the Board
appointed by the President shall be 6 years, except as provided
in section 5(c) of the Public Telecommunications Act of 1992.
Any member whose term has expired may serve until such member's
successor has taken office, or until the end of the calendar
year in which such member's term has expired, whichever is
earlier. Any member appointed to fill a vacancy occurring prior
to the expiration of the term for which such member's
predecessor was appointed shall be appointed for the remainder
of such term. No member of the Board shall be eligible to serve
in excess of 2 consecutive full terms.
(6) Any vacancy in the Board shall not affect its power,
but shall be filled in the manner consistent with this Act.
(7) Members of the Board shall attend not less than 50
percent of all duly convened meetings of the Board in any
calendar year. A member who fails to meet the requirement of
the preceding sentence shall forfeit membership and the
President shall appoint a new member to fill such vacancy not
later then 30 days after such vacancy is determined by the
Chairman of the Board.
Election of Chairman and Vice Chairman; Compensation
(d)(1) Members of the Board shall annually elect one of
their members to be Chairman and elect one or more of their
members as a Vice Chairman or Vice Chairmen.
(2) The members of the Board shall not, by reason of such
membership, be deemed to be officers or employees of the United
States. They shall, while attending meetings of the Board or
while engaged in duties related to such meetings or other
activities of the Board pursuant to this subpart, be entitled
to receive compensation at the rate of $150 per day, including
traveltime. No Board member shall receive compensation of more
than $10,000 in any fiscal year. While away from their homes or
regular places of business, Board members shall be allowed
travel and actual, reasonable, and necessary expenses.
Officers and Employees
(e)(1) The Corporation shall have a President, and such
other officers as may be named and appointed by the Board for
terms and at rates of compensation fixed by the Board. No
officer or employee of the Corporation may be compensated by
the Corporation at an annual rate of pay which exceeds the rate
of basic pay in effect from time to time for level I of the
Executive Schedule under section 5312 of title 5, United States
Code. No individual other than a citizen of the United States
may be an officer of the Corporation. No officer of the
Corporation, other than the Chairman or a Vice Chairman, may
receive any salary or other compensation (except for
compensation for services on boards of directors of other
organizations that do not receive funds from the Corporation,
on committees of such boards, and in similar activities for
such organizations) from any sources other than the Corporation
for services rendered during the period of his or her
employment by the Corporation. Service by any officer on boards
of directors of other organizations, on committees of such
boards, and in similar activities for such organizations shall
be subject to annual advance approval by the Board and subject
to the provisions of the Corporation's Statement of Ethical
Conduct. All officers shall serve at the pleasure of the Board.
(2) Except as provided in the second sentence of subsection
(c)(1) of this section, no political test or qualification
shall be used in selecting, appointing, promoting, or taking
other personnel actions with respect to officers, agents, and
employees of the Corporation.
Nonprofit and Nonpolitical Nature of the Corporation
(f)(1) The Corporation shall have no power to issue any
shares of stock, or to declare or pay any dividends.
(2) No part of the income or assets of the Corporation
shall inure to the benefit of any director, officer, employee,
or any other individual except as salary or reasonable
compensation for services.
(3) The Corporation may not contribute to or otherwise
support any political party or candidate for elective public
office.
Purposes and Activities of Corporation
(g)(1) In order to achieve the objectives and to carry out
the purposes of this subpart, as set out in subsection (a), the
Corporation is authorized to--
(A) facilitate the full development of public
telecommunications in which programs of high quality,
diversity, creativity, excellence, and innovation,
which are obtained from diverse sources, will be made
available to public telecommunications entities, with
strict adherence to objectivity and balance in all
programs or series of programs of a controversial
nature;
(B) assist in the establishment and development of
one or more interconnection systems to be used for the
distribution of public telecommunications services so
that all public telecommunications entities may
disseminate such services at times chosen by the
entities;
(C) assist in the establishment and development of
one or more systems of public telecommunications
entities throughout the United States; and
(D) carry out its purposes and functions and engage
in its activities in ways that will most effectively
assure the maximum freedom of the public
telecommunications entities and systems from
interference with, or control of, program content or
other activities.
(2) In order to carry out the purposes set forth in
subsection (a), the Corporation is authorized to--
(A) obtain grants from and make contracts with
individuals and with private, State, and Federal
agencies, organizations, and institutions;
(B) contract with or make grants to public
telecommunications entities, national, regional, and
other systems of public telecommunications entities,
and independent producers and production entities, for
the production or acquisition of public
telecommunications services to be made available for
use by public telecommunications entities, except
that--
(i) to the extent practicable, proposals for
the provision of assistance by the Corporation
in the production or acquisition of programs or
series of programs shall be evaluated on the
basis of comparative merit by panels of outside
experts, representing diverse interests and
perspectives, appointed by the Corporation; and
(ii) nothing in this subparagraph shall be
construed to prohibit the exercise by the
Corporation of its prudent business judgement
with respect to any grant to assist in the
production or acquisition of any program or
series of programs recommended by any such
panel;
(C) make payments to existing and new public
telecommunications entities to aid in financing the
production or acquisition of public telecommunications
services by such entities, particularly innovative
approaches to such services, and other costs of
operation of such entities;
(D) establish and maintain, or contribute to, a
library and archives of noncommercial educational and
cultural radio and television programs and related
materials and develop public awareness of, and
disseminate information about, public
telecommunications services by various means, including
the publication of a journal;
(E) arrange, by grant to or contract with appropriate
public or private agencies, organizations, or
institutions, for interconnection facilities suitable
for distribution and transmission of public
telecommunications services to public
telecommunications entities;
(F) hire or accept the voluntary services of
consultants, experts, advisory boards, and panels to
aid the Corporation in carrying out the purposes of
this subpart;
(G) conduct (directly or through grants or contracts)
research, demonstrations, or training in matters
related to public television or radio broadcasting and
the use of nonbroadcast communications technologies for
the dissemination of noncommercial educational and
cultural television or radio programs;
(H) make grants or contracts for the use of
nonbroadcast telecommunications technologies for the
dissemination to the public of public
telecommunications services; and
(I) take such other actions as may be necessary to
accomplish the purposes set forth in subsection (a).
Nothing contained in this paragraph shall be construed to
commit the Federal Government to provide any sums for the
payment of any obligation of the Corporation which exceeds
amounts provided in advance in appropriation Acts.
(3) To carry out the foregoing purposes and engage in the
foregoing activities, the Corporation shall have the usual
powers conferred upon a nonprofit corporation by the District
of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-1001
et seq.), except that the Corporation is prohibited from--
(A) owning or operating any television or
radio broadcast station, system, or network,
community antenna television system,
interconnection system or facility, program
production facility, or any public
telecommunications entity, system, or network;
and
(B) producing programs, scheduling programs for
dissemination, or disseminating programs to the public.
(4) All meetings of the Board of Directors of the
Corporation, including any committee of the Board, shall be
open to the public under such terms, conditions, and exceptions
as are set forth in subsection (k)(4).
(5) The Corporation, in consultation with interested
parties, shall create a 5-year plan for the development of
public telecommunications services. Such plan shall be updated
annually by the Corporation.
Interconnection Service
(h)(1) Nothing in this Act, or in any other provision of
law, shall be construed to prevent United States communications
common carriers from rendering free or reduced rate
communications interconnection services for public television
or radio services, subject to such rules and regulations as the
Commission may prescribe.
(2) Subject to such terms and conditions as may be
established by public telecommunications entities receiving
space satellite interconnection facilities or services
purchased or arranged for, in whole or in part, with funds
authorized under this part, other public telecommunications
entities shall have reasonable access to such facilities or
services for the distribution of educational and cultural
programs to public telecommunications entities. Any remaining
capacity shall be made available to other persons for the
transmission of noncommercial educational and cultural programs
and program information relating to such programs, to public
telecommunications entities, at a charge or charges comparable
to the charge or charges, if any, imposed upon a public
telecommunciations entity for the distribution of noncommercial
educational and cultural programs to public telecommunications
entities. No such person shall be denied such access whenever
sufficient capacity is available.
Report to Congress
(i)(1) The Corporation shall submit an annual report for
the preceding fiscal year ending September 30 to the President
for transmittal to the Congress on or before the 15th day of
May of each year. The report shall include--
(A) a comprehensive and detailed report of the
Corporation's operations, activities, financial
condition, and accomplishments under this subpart and
such recommendations as the Corporation deems
appropriate;
(B) a comprehensive and detailed inventory of funds
distributed by Federal agencies to public
telecommunications entities during the preceding fiscal
year;
(C) a listing of each organization that receives a
grant from the Corporation to produce programming, the
name of the producer of any programming produced under
each such grant, the title or description of any
program so produced, and the amount of each such grant;
(D) the summary of the annual report provided to the
Secretary pursuant to section 398(b)(4).
(2) The officers and directors of the Corporation shall be
available to testify before appropriate committees of the
Congress with respect to such report, the report of any audit
made by the Comptroller General pursuant to subsection (1), or
any other matter which such committees may determine.
Right to Repeal, Alter, or Amend
(j) The right to repeal, alter, or amend this section at
any time is expressly reserved.
Financing; Open Meetings and Financial Records
(k)(1)(A) There is hereby established in the Treasury a
fund which shall be known as the Public Broadcasting Fund
(hereinafter in this subsection referred to as the ``Fund''),
to be administered by the Secretary of the Treasury.
[(B) There is authorized to be appropriated to the Fund,
for each of the fiscal years 1978, 1979 and 1980, an amount
equal to 40 percent of the total amount of non-Federal
financial support received by public broadcasting entities
during the fiscal year second preceding each such fiscal year,
except that the amount so appropriated shall not exceed
$121,000,000 for fiscal year 1978, $140,000,000 for fiscal year
1979, and $160,000,000 for fiscal year 1980.
[(C) There is authorized to be appropriated to the Fund,
for each of the fiscal years 1981, 1982, 1983, 1984, 1985,
1986, 1987, 1988, 1989, 1990, 1991, 1992, and 1993, an amount
equal to 40 percent of the total amount of non-Federal
financial support received by public broadcasting entities
during the fiscal year second preceding each such fiscal year,
except that the amount so appropriated shall not exceed
$265,000,000 for fiscal year 1992, $285,000,000 for fiscal year
1993, $310,000,000 for fiscal year 1994, $375,000,000 for
fiscal year 1995, and $425,000,000 for fiscal year 1996.
[(D) In addition to any amounts authorized under any other
provision of this or any other Act to be appropriated to the
Fund, $20,000,000 are hereby authorized to be appropriated to
the Fund (notwithstanding any other provision of this
subsection) specifically for transition from the use of analog
to digital technology for the provision of public broadcasting
services for fiscal year 2001.
[(E) Funds appropriated under this subsection shall remain
available until expended.
[(F) In recognition of the importance of educational
programs and services, and the expansion of public radio
services, to unserved and underserved audiences, the
Corporation, after consultation with the system of public
telecommunications entities, shall prepare and submit to the
Congress an annual report for each of the fiscal years 1994,
1995, and 1996 on the Corporation's activities and expenditures
relating to those programs and services.]
(B) There is authorized to be appropriated to the Fund, for
each of the fiscal years 2007, 2008, 2009, 2010, and 2011, an
amount equal to 40 percent of the total amount of non-Federal
financial support received by public broadcasting entities
during the second fiscal year preceding each such fiscal year,
except that the amount so appropriated shall not exceed--
(i) $416,000,000 for fiscal year 2007;
(ii) $432,000,000 for fiscal year 2008;
(iii) $450,000,000 for fiscal year 2009;
(iv) $468,000,000 for fiscal year 2010; and
(v) $487,000,000 for fiscal year 2011.
(C) In addition to any amounts authorized under any other
provision of this or any other Act, there are authorized to be
appropriated to the Fund, (notwithstanding any other provision
of this subsection) specifically for transition from the use of
analog to digital technology for the provision of public
telecommunications services and for the acquisition or
production of digital programming of local, regional, and
national interest--
(i) $50,000,000 for fiscal year 2005;
(ii) $50,000,000 for fiscal year 2006;
(iii) $40,000,000 for fiscal year 2007;
(iv) $30,000,000 for fiscal year 2008; and
(v) $20,000,000 for fiscal year 2009.
(D) Funds appropriated under this subsection shall remain
available until expended and shall be disbursed by the
Secretary of the Treasury for obligation and expenditure as
soon after appropriation as practicable. The Corporation shall
distribute funds authorized by subparagraph (C) and allocated
to public broadcast stations under this subsection as
expeditiously as practicable when made available by the
Secretary of the Treasury, and in a manner that is determined,
in consultation with public radio and television licensees or
permittees and their designated representatives.
(2)(A) The funds authorized to be appropriated by this
subsection shall be used by the Corporation, in a prudent and
financially responsible manner, solely for its grants,
contracts, and administrative costs, except that the
Corporation may not use any funds appropriated under this
subpart for purposes of conducting any reception, or providing
any other entertainment, for any officer or employee of the
Federal Government or any State or local government. The
Corporation shall determine the amount of non-Federal financial
support received by public broadcasting entities during each of
the fiscal years referred to in paragraph (1) for the purpose
of determining the amount of each authorization, and shall
certify such amount to the Secretary of the Treasury, except
that the Corporation may include in its certification non-
Federal financial support received by a public broadcasting
entity during its most recent fiscal year ending before
September 30 of the year for which certification is made. Upon
receipt of such certification, the Secretary of the Treasury
shall make available to the Corporation, from such funds as may
be appropriated to the Fund, the amount authorized for each of
the fiscal years pursuant to the provisions of this subsection.
(B) Funds appropriated and made available under this
subsection shall be disbursed by the Secretary of the Treasury
on a fiscal year basis.
(3)(A)(i) The Corporation shall establish an annual budget
for use in allocating amounts from the Fund. Of the amounts
appropriated into the Fund available for allocation for any
fiscal year--
(I) $10,200,000 shall be available for the
administrative expenses of the Corporation for fiscal
year 1989, and for each succeeding fiscal year the
amount which shall be available for such administrative
expenses shall be the sum of the amount made available
to the Corporation under this subclause for such
expenses in the preceding fiscal year plus the greater
of 4 percent of such amount or a percentage of such
amount equal to the percentage change in the Consumer
Price Index, except that none of the amounts allocated
under subclauses (II), (III), and (IV) and clause (v)
shall be used for any administrative expenses of the
Corporation and not more than 5 percent of all the
amounts appropriated into the Fund available for
allocation for any fiscal year shall be available for
such administrative expenses;
(II) 6 percent of such amounts shall be available for
expenses incurred by the Corporation for capital costs
relating to telecommunications satellites, the payment
of programming royalties and other fees, the costs of
interconnection facilities and operations (as provided
in clause (iv)(I)), and grants which the Corporation
may make for assistance to stations that broadcast
programs in languages other than English or for
assistance in the provision of affordable training
programs for employees at public broadcast stations,
and if the available funding level permits, for
projects and activities that will enhance public
broadcasting;
(III) 75 percent of the remainder (after allocations
are made under subclause (I) and subclause (II)) shall
be allocated in accordance with clause (ii);
(IV) 25 percent of such remainder shall be allocated
in accordance with clause (iii).
(ii) Of the amounts allocated under clause (i)(III) for any
fiscal year--
(I) 75 percent of such amounts shall be available for
distribution among the licensees and permittees of
public television stations pursuant to paragraph
(6)(B); and
(II) 25 percent of such amounts shall be available
for distribution under subparagraph (B)(i), and in
accordance with any plan implemented under paragraph
(6)(A), for national public television programming.
(iii) Of the amounts allocated under clause (i)(IV) for any
fiscal year--
(I) 70 percent of such amounts shall be available for
distribution among the licensees and permittees of
public radio stations pursuant to paragraph (6)(B);
(II) 7 percent of such amounts shall be available for
distribution under subparagraph (B)(i) for public radio
programming; and
(III) 23 percent of such amounts shall be available
for distribution among the licensees and permittees of
public radio stations pursuant to paragraph (6)(B),
solely to be used for acquiring or producing
programming that is to be distributed nationally and is
designed to serve the needs of a national audience.
(iv)(I) From the amount provided pursuant to clause
(i)(II), the Corporation shall defray an amount equal to 50
percent of the total costs of interconnection facilities and
operations to facilitate the availability of public television
and radio programs among public broadcasts stations.
(II) Of the amounts received as the result of any contract,
lease agreement, or any other arrangement under which the
Corporation directly or indirectly makes available
interconnection facilities, 50 percent of such amounts shall be
distributed to the licensees and permittees of public
television stations and public radio stations. The Corporation
shall not have any authority to establish any requirements,
guidelines, or limitations with respect to the use of such
amounts by such licensees and permittees.
(v) Of the interest on the amounts appropriated into the
Fund which is available for allocation for any fiscal year--
(I) 75 percent shall be available for distribution
for the purposes referred to in clause (ii)(II); and
(II) 25 percent shall be available for distribution
for the purposes referred to in clause (ii)(II) and
(III).
(B)(i) The Corporation shall utilize the funds allocated
pursuant to subparagraph (A)(ii)(II) and subparagraph
(A)(iii)(II) to make grants for production of public television
or radio programs by independent producers and production
entities and public telecommunications entities, producers of
national children's educational programming, and producers of
programs addressing the needs and interest of minorities, and
for acquisition of such programs by public telecommunications
entities. The Corporation may make grants to public
telecommunications entities and producers for the production of
programs in languages other than English. Of the funds utilized
pursuant to this clause, a substantial amount shall be
distributed to independent producers and production entities,
producers of national children's educational programming, and
producers of programming addressing the needs and interests of
minorities for the production of programs.
(ii) All funds available for distribution under clause (i)
shall be distributed to entities outside the Corporation and
shall not be used for the general administrative costs of the
Corporation, the salaries or related expenses of Corporation
personnel and members of the Board, or for expenses of
consultants and advisers to the Corporation.
(iii)(I) For fiscal year 1990 and succeeding fiscal years,
the Corporation shall, in carrying out its obligations under
clause (i) with respect to public television programming,
provide adequate funds for an independent production service.
(II) Such independent production service shall be separate
from the Corporation and shall be incorporated under the laws
of the District of Columbia for the purpose of contracting with
the Corporation for the expenditure of funds for the production
of public television programs by independent producers and
independent production entities.
(III) The Corporation shall work with organizations or
associations of independent producers or independent production
entities to develop a plan and budget for the operation of such
service that is acceptable to the Corporation.
(IV) The Corporation shall ensure that the funds provided
to such independent production service shall be used
exclusively in pursuit of the Corporation's obligation to
expand the diversity and innovativeness of programming
available to public broadcasting.
(V) The Corporation shall report annually to Congress
regarding the activities and expenditures of the independent
production service, including carriage and viewing information
for programs produced or acquired with funds provided pursuant
to subclause (I). At the end of fiscal years 1992, 1993, 1994,
and 1995, the Corporation shall submit a report to Congress
evaluating the performance of the independent production
service in light of its mission to expand the diversity and
innovativeness of programming available to public broadcasting.
(VI) The Corporation shall not contract to provide funds to
any such independent production service, unless that service
agrees to comply with public inspection requirements
established by the Corporation within 3 months after the date
of enactment of this subclause. Under such requirements the
service shall maintain at its offices a public file, updated
regularly, containing information relating to the service's
award of funds for the production of programming. The
information shall be available for public inspection and
copying for at least 3 years and shall be of the same kind as
the information required to be maintained by the Corporation
under subsection (l)(4)(B).
(4) Funds may not be distributed pursuant to this
subsection to the Public Broadcasting Service or National
Public Radio (or any successor organization), or to the
licensee or permittee of any public broadcast station, unless
the governing body of any such organization, any committee of
such governing body, or any advisory body of any such
organization, holds open meetings preceded by reasonable notice
to the public. All persons shall be permitted to attend any
meeting of the board, or of any such committee or body, and no
person shall be required, as a condition to attendance at any
such meeting, to register such person's name or to provide any
other information. Nothing contained in this paragraph shall be
construed to prevent any such board, committee, or body from
holding closed sessions to consider matters relating to
individual employees, proprietary information, litigation and
other matters requiring the confidential advice of counsel,
commercial or financial information obtained from a person on a
privileged or confidential basis, or the purchase of property
or services whenever the premature exposure of such purchase
would compromise the business interests of any such
organization. If any such meeting is closed pursuant to the
provisions of this paragraph, the organization involved shall
thereafter (within a reasonable period of time) make available
to the public a written statement containing an explanation of
the reasons for closing the meeting.
(5) Funds may not be distributed pursuant to this
subsection to any public telecommunications entity that does
not maintain for public examination copies of the annual
financial and audit reports, or other information regarding
finances, submitted to the Corporation pursuant to subsection
(1)(3)(B).
(6)(A) The Corporation shall conduct a study and prepare a
plan in consultation with public television licensees (or
designated representatives of those licensees) and the Public
Broadcasting Service, on how funds available to the Corporation
under paragraph (3)(A)(ii)(II) can be best allocated to meet
the objectives of this Act with regard to national public
television programming. The plan, which shall be based on the
conclusions resulting from the study, shall be submitted by the
Corporation to the Congress not later than January 31, 1990.
Unless directed otherwise by an Act of Congress, the
Corporation shall implement the plan during the first fiscal
year beginning after the fiscal year in which the plan is
submitted to Congress.
(B) The Corporation shall make a basic grant from the
portion reserved for television stations under paragraph
(3)(A)(ii)(I) to each licensee and permittee of a public
television station that is on the air. The Corporation shall
assist radio stations to maintain and improve their service
where public radio is the only broadcast service available. The
balance of the portion reserved for television stations and the
total portion reserved for radio stations under paragraph
(3)(A)(iii)(I) shall be distributed to licensees and permittees
of such stations in accordance with eligibility criteria (which
the Corporation shall review periodically in consultation with
public radio and television licensees or permittees, or their
designated representatives) that promote the public interest in
public broadcasting, and on the basis of a formula designed
to--
(i) provide for the financial needs and requirements
of stations in relation to the communities and
audiences such stations undertake to serve;
(ii) maintain existing, and stimulate new, sources of
non-Federal financial support for stations by providing
incentives for increases in such support; and
(iii) assure that each eligible licensee and
permittee of a public radio station receives a basic
grant.
(7) The funds distributed pursuant to paragraph
(3)(A)(ii)(I) and (iii)(I) may be used at the discretion of the
recipient for purposes related primarily [to the production or
acquisition of programming.] to the support of content,
programming, and services, especially those that serve the
needs and interests of the recipient's local community.
(8)(A) Funds may not be distributed pursuant to this
subpart to any public broadcast station (other than any station
which is owned and operated by a state, a political or special
purpose subdivision of a state or a public agency) unless such
station establishes a community advisory board. Any such
station shall undertake good faith efforts to assure that (i)
its advisory board meets at regular intervals; (ii) the members
of its advisory board regularly attend the meetings of the
advisory board; and (iii) the composition of its advisory board
are reasonably representative of the diverse needs and
interests of the communities served by such station.
(B) The board shall be permitted to review the programming
goals established by the station, the service provided by the
station, and the significant policy decisions rendered by the
station. The board may also be delegated any other
responsibilities, as determined by the governing body of the
station. The board shall advise the governing body of the
station with respect to whether the programming and other
policies of such station are meeting the specialized
educational and cultural needs of the communities served by the
station, and may make such recommendations as it considers
appropriate to meet such needs.
(C) The role of the board shall be solely advisory in
nature, except to the extent other responsibilities are
delegated to the board by the governing body of the station. In
no case shall the board have any authority to exercise any
control over the daily management or operation of the station.
(D) In the case of any public broadcast station (other than
any station which is owned and operated by a state, a political
or special purpose subdivision of a State, or a public agency)
in existence on the effective date of this paragraph, such
station shall comply with the requirements of this paragraph
with respect to the establishment of a community advisory board
not later than 180 days after such effective date.
(E) The provision of subparagraph (A) prohibiting the
distribution of funds to any public broadcast station (other
than any station which is owned and operated by a State, a
political or special purpose subdivision of a State, or a
public agency) unless such station establishes a community
advisory board shall be the exclusive remedy for the
enforcement of the provisions of this paragraph.
(9) Funds may not be distributed pursuant to this
subsection to the Public Broadcasting Service or National
Public Radio (or any successor organization) unless assurances
are provided to the Corporation that no officer or employee of
the Public Broadcasting Service or National Public Radio (or
any successor organization), as the case may be, will be
compensated in excess of reasonable compensation as determined
pursuant to Section 4958 of the Internal Revenue Code for
services that the officer or employee renders to
organization,\1\ and unless further assurances are provided to
the Corporation that no officer or employee of such an entity
will be loaned money by that entity on an interest-free basis.
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\1\ Section 701 of the Omnibus Consolidated and Emergency
Supplemental Appropriations Act, 1999 (P.L. 105-277, 112 Stat. 2681-
389) amended ``section 396(k)(9) of Title 47'', which is not a codified
title, rather than section 396(k)(9) of the Communications Act of 1934.
The amendment refers to the ``Internal Revenue Code'' rather than the
Internal Revenue Code of 1986. The amendment is effected in this
report, but the reference to the Internal Revenue Code is not
corrected.
---------------------------------------------------------------------------
(10)(A) There is hereby established in the Treasury a fund
which shall be known as the Public Broadcasting Satellite
Interconnection Fund (hereinafter in this subsection referred
to as the ``Satellite Interconnection Fund''), to be
administered by the Secretary of the Treasury.
[(B) There is authorized to be appropriated to the
Satellite Interconnection Fund, for fiscal year 1991, the
amount of $200,000,000. If such amount is not appropriated in
full for fiscal year 1991, the portion of such amount not yet
appropriated is authorized to be approriated for fiscal years
1992 and 1993. Funds appropriated to the Satellite
Interconnection Fund shall remain available until expended.
[(C) The Secretary of the Treasury shall make available and
disburse to the Corporation, at the beginning of fiscal year
1991 and of each succeeding fiscal year thereafter, such funds
as have been appropriated to the Satellite Interconnection Fund
for the fiscal year in which such disbursement is to be made.]
(B) There are authorized to be appropriated to the Satellite
Interconnection Fund $250,000,000 for fiscal year 2005. If the
amount appropriated to the Satellite Interconnection Fund for
fiscal year 2005 is less than $250,000,000, the amount by which
that sum exceeds the amount appropriated is authorized to be
appropriated for fiscal years 2006 through 2008 until the full
$250,000,000 has been appropriated to the Fund. Funds
appropriated to the Satellite Interconnection Fund shall remain
available until expended.
(C) The Secretary of the Treasury shall make available and
disburse to the Corporation, at the beginning of fiscal year
2005 and of each succeeding fiscal year thereafter, such funds
as have been appropriated to the Satellite Interconnection Fund
for the fiscal year in which such disbursement is to be made.
(D) Notwithstanding any other provision of this subsection
except paragraphs (4), (5), (8), and (9), all funds
appropriated to the Satellite Interconnection Fund and interest
thereon--
(i) shall be distributed by the Corporation to the
licensees and permittees of noncommercial educational
television broadcast stations providing public
telecommunications services or the national entity they
designate for satellite interconnection purposes and to
those public telecommunications entities participating
in the public radio satellite interconnection system or
the national entity they designate for satellite
interconnection purposes, exclusively for the capital
costs of the replacement, refurbishment, or upgrading
of their national satellite interconnection systems and
associated maintenance of such systems; and
(ii) shall not be used for the administrative costs
of the Corporation, the salaries or related expenses of
Corporation personnel and members of the Board, or for
expenses of consultants and advisers to the
Corporation.
(11)(A) Funds may not be distributed pursuant to this
subsection for any fiscal year to the licensee or permittee of
any public broadcast station if such licensee or permittee--
(i) fails to certify to the Corporation that such
licensee or permittee complies with the Commission's
regulations concerning equal employment opportunity as
published under section 73.2080 of title 47, Code of
Federal Regulations, or any successor regulations
thereto; or
(ii) fails to submit to the Corporation the report
required by subparagraph (B) for the preceding calendar
year.
(B) A licensee or permittee of any public broadcast station
with more than five full-time employees to file annually with
the Corporation a statistical report, consistent with reports
required by Commission regulation, identifying by race and sex
the number of employees in each of the following full-time and
part-time job categories:
(i) Officials and managers.
(ii) Professionals.
(iii) Technicians.
(iv) Semiskilled operatives.
(v) Skilled craft persons.
(vi) Clerical and office personnel.
(vii) Unskilled operatives.
(viii) Service workers.
(C) In addition, such report shall state the number of job
openings occurring during the course of the year. Where the job
openings were filled in accordance with the regulations
described in subparagraph (A)(i), the report shall so certify,
and where the job openings were not filled in accordance with
such regulations, the report shall contain a statement
providing reasons therefor. The statistical report shall be
available to the public at the central office and at every
location where more than five full-time employees are regularly
assigned to work.
(12) Funds may not be distributed under this subsection to
any public broadcasting entity that directly or indirectly--
(A) rents contributor or donor names (or other
personally identifiable information) to or from, or
exchanges such names or information with, any Federal,
State, or local candidate, political party, or
political committee; or
(B) discloses contributor or donor names, or other
personally identifiable information, to any
nonaffiliated third party unless--
(i) such entity clearly and conspicuously
discloses to the contributor or donor that such
information may be disclosed to such third
party;
(ii) the contributor or donor is given the
opportunity, before the time that such
information is initially disclosed, to direct
that such information not be disclosed to such
third party; and
(iii) the contributor or donor is given an
explanation of how the contributor or donor may
exercise that nondisclosure option.
(13) Funds may not be distributed pursuant to this section
to any public broadcast station unless it agrees that, upon
request by the Corporation, at such time as it ceases to
provide public telecommunications services or transfers or
assigns its broadcast license or permit to an entity that will
not provide public telecommunications services (as defined in
section 397(14) of this Act), it will--
(A) return any or all unexpended funds for all grants
made by the Corporation; and
(B) with respect to grants made by the Corporation
during the prior 5 years for the purchase or
construction of public telecommunications facilities,
return an amount that is no more than an amount bearing
the same ratio to the current value of such facilities
at the time of cessation of public telecommunications
service as the ratio that the Corporation's
contribution bore to the total cost of purchasing or
constructing such facilities.
Records and Audit
(l)(1)(A) The accounts of the Corporation shall be audited
annually in accordance with generally accepted auditing
standards by independent certified public accountants or
independent licensed public accountants certified or licensed
by a regulatory authority of a State or other political
subdivision of the United States, except that such requirements
shall not preclude shared auditing arrangements between any
public telecommunications entity and its licensee where such
licensee is a public or private institution. The audits shall
be conducted at the place or places where the accounts of the
Corporation are normally kept. All books, accounts, financial
records, reports, files, and all other papers, things, or
property belonging to or in use by the Corporation and
necessary to facilitate the audits shall be made available to
the person or persons conducting the audits; and full
facilities for verifying transactions with the balances or
securities held by depositories, fiscal agents and custodians
shall be afforded to such person or persons.
(B) The report of each such independent audit shall be
included in the annual report required by subsection (i) of
this section. The audit report shall set forth the scope of the
audit and include such statements as are necessary to present
fairly the Corporation's assets and liabilities, surplus or
deficit, with an analysis of the changes therein during the
year, supplemented in reasonable detail by a statement of the
Corporation's income and expenses during the year, and a
statement of the sources and application of funds, together
with the independent author's opinion of those statements.
(2)(A) The financial transactions of the Corporation for
any fiscal year during which Federal funds are available to
finance any portion of its operations may be audited by the
General Accounting Office in accordance with the principles and
procedures applicable to commercial corporate transactions and
under such rules and regulations as may be prescribed by the
Comptroller General of the United States. Any such audit shall
be conducted at the place or places where accounts of the
Corporation are normally kept. The representative of the
General Accounting Office shall have access to all books,
accounts, records, reports, files, and all other papers,
things, or property belonging to or in use by the Corporation
pertaining to its financial transactions and necessary to
facilitate the audit, and they shall be afforded full
facilities for verifying transactions with the balances or
securities held by depositories, fiscal agents, and custodians.
All such books, accounts, records, reports, files, papers and
property of the Corporation shall remain in possession and
custody of the Corporation.
(B) A report of each such audit shall be made by the
Comptroller General to the Congress. The report to the Congress
shall contain such comments and information as the Comptroller
General may deem necessary to inform Congress of the financial
operations and condition of the Corporation, together with such
recommendations with respect thereto as he may deem advisable.
The report shall also show specifically any program,
expenditure, or other financial transaction or undertaking
observed in the course of the audit, which, in the opinion of
the Comptroller General, has been carried on or made without
authority of law. A copy of each report shall be furnished to
the President, to the Secretary, and to the Corporation at the
time submitted to the Congress.
(3)(A) Not later than 1 year after the effective date of
this paragraph, the Corporation, in consultation with the
Comptroller General, and as appropriate with others, shall
develop accounting principles which shall be used uniformly by
all public telecommunications entities receiving funds under
this subpart, taking into account organizational differences
among various categories of such entites. Such principles shall
be designed to account fully for all funds received and
expended for public telecommunications purposes by such
entities.
(B) Each public telecommunications entity receiving funds
under this subpart shall be required--
(i) to keep its books, records, and accounts in such
form as may be required by the Corporation;
(ii)(I) to undergo a biennial audit by independent
certified public accountants or independent licensed
public accountants certified or licensed by a
regulatory authority of a State, which audit shall be
in accordance with auditing standards developed by the
Corporation, in consultation with the Comptroller
General; or
(II) to submit a financial statement in lieu of the
audit required by subclause (I) if the Corporation
determines that the cost burden of such audit on such
entity is excessive in light of the financial condition
of such entity; and
(iii) to furnish biennuially to the Corporation a
copy of the audit report required pursuant to the
clause (ii), as well as such other information
regarding finances (including an annual financial
report) as the Corporation may require.
(C) Any recipient of assistance by grant or contract under
this section, other than a fixed price contract awarded
pursuant to competitive bidding procedures, shall keep such
records as may be reasonably necessary to disclose fully the
amount and the disposition by such recipient of such
assistance, that total cost of the project or undertaking in
connection with which such assistance is given or used, and the
amount and nature of that portion of the cost of the projects
or undertaking supplied by other sources, and such other
records as will facilitate an effective audit.
(D) The Corporation or any of its duly authorized
representatives shall have access to any books, documents,
papers, and records of any recipient of assistance for the
purpose of auditing and examining all funds received or
expended for public telecommunications purposes by the
recipient. The Comptroller General of the United States or any
of his duly authorized representatives also shall have access
to such books, documents, papers, and records for the purpose
of auditing and examining all funds received or expended for
public telecommunications purposes during any fiscal year for
which Federal funds are available to the Corporation.
(4)(A) The Corporation shall maintain the information
described in subparagraphs (B), (C), and (D) at its offices for
public inspection and copying for at least 3 years, according
to such reasonable guidelines as the Corporation may issue.
This public file shall be updated regularly. This paragraph
shall be effective upon its enactment and shall apply to all
grants awarded after January 1, 1993.
(B) Subsequent to any award of funds by the Corporation for
the production or acquisition of national broadcasting
programming pursuant to subsection (k)(3)(A) (ii)(II) or
(iii)(II), the Corporation shall make available for public
inspection the following:
(i) Grant and solicitation guidelines for proposals
for such programming.
(ii) The reasons for selecting the proposal for which
the award was made.
(iii) Information on each program for which the award
was made, including the names of the awardee and
producer (and if the awardee or producer is a
corporation or partnership, the principals of such
corporation or partnership), the monetary amount of the
award, and the title and description of the program
(and of each program in a series of programs).
(iv) A report based on the final audit findings
resulting from any audit of the award by the
Corporation or the Comptroller General.
(v) Reports which the Corporation shall require to be
provided by the awardee relating to national public
broadcasting programming funded, produced, or acquired
by the awardee with such funds. Such reports shall
include, where applicable, the information described in
clauses (i), (ii), and (iii), but shall exclude
proprietary, confidential, or privileged information.
(C) The Corporation shall make available for public
inspection the final report required by the Corporation on an
annual basis from each recipient of funds under subsection
(k)(3)(A)(iii)(III), excluding proprietary, confidential, or
privileged information.
(D) The Corporation shall make available for public
inspection an annual list of national programs distributed by
public broadcasting entities that receive funds under
subsection (k)(3)(A) (ii)(III) or (iii)(II) and are engaged
primarily in the national distribution of public television or
radio programs. Such list shall include the names of the
programs (or program series), producers, and providers of
funding.
(m)(1) Prior to July 1, 1989, and every three years
thereafter, the Corporation shall compile an assessment of the
needs of minority and diverse audiences, the plans of public
broadcasting entities and public telecommunications entities to
address such needs, the ways radio and television can be used
to help these underrepresented groups, and projections
concerning minority employment by public broadcasting entities
and public telecommunications entities. Such assessment shall
address the needs of racial and ethnic minorities, new
immigrant populations, people for whom English is a second
language, and adults who lack basic reading skills.
(2) Commencing July 1, 1989, the Corporation shall prepare
an annual report on the provision by public broadcasting
entities and public telecommunications entities of service to
the audiences described in paragraph (1). Such report shall
address programming (including that which is produced by
minority producers), training, minority employment, and efforts
by the Corporation to increase the number of minority public
radio and television stations eligible for financial support
from the Corporation. Such report shall include a summary of
the statistical reports received by the Corporation pursuant to
subsection (k)(11), and a comparison of the information
contained in those reports with the information submitted by
the Corporation in the previous year's annual report.
(3) As soon as they have been prepared, each assessment and
annual report required under paragraphs (1) and (2) shall be
submitted to Congress.
Subpart E--General
SEC. 397. DEFINITIONS.
[47 U.S.C. 397]
For the purposes of this part--
(1) The term ``construction'' (as applied to public
telecommunications facilities) means acquisition (including
acquisition by lease), installation, and modernization of
public telecommunications facilities and planning and
preparatory steps incidental to any such acquisition,
installation, or modernization.
(2) The term ``Corporation'' means the Corporation for
Public Broadcasting authorized to be established in subpart D.
(3) The term ``interconnection'' means the use of microwave
equipment, boosters, translators, repeaters, communication
space satellites, or other apparatus or equipment for the
transmission and distribution of television or radio programs
to public telecommunications entities.
(4) The term ``interconnection system'' means any system of
interconnection facilities used for the distribution of
programs to public telecommunications entities.
(5) The term ``meeting'' means the deliberations of at
least the number of members of a governing or advisory body, or
any committee thereof, required to take action on behalf of
such body or committee where such deliberations determine or
result in the joint conduct or disposition of the governing or
advisory body's business, or the committee's business, as the
case may be, but only to the extent that such deliberations
relate to public broadcasting.
(6) The terms ``noncommercial educational broadcast
station'' and ``public broadcast station'' mean a television or
radio broadcast station which--
(A) under the rules and regulations of the Commission
in effect on the effective date of this paragraph, is
eligible to be licensed by the Commission as a
noncommercial educational radio or television broadcast
station and which is owned and operated by a public
agency or nonprofit private foundation, corporation, or
association; or
(B) is owned and operated by a municipality and which
transmits only noncommercial programs for education
purposes.
(7) The term ``noncommercial telecommunications entity''
means any enterprise which--
(A) is owned and operated by a State, a political or
special purpose subdivision of a State, a public
agency, or a nonprofit private foundation, corporation,
or association; and
(B) has been organized primarily for the purpose of
disseminating audio or video noncommercial educational
and cultural programs to the public by means other than
a primary television or radio broadcast station,
including, but not limited to, coaxial cable, optical
fiber, broadcast translators, cassettes, discs,
microwave, or laser transmission through the
atmosphere.
(8) The term ``nonprofit'' (as applied to any foundation,
corporation, or association) means a foundation, corporation,
or association, no part of the net earnings of which inures, or
may lawfully inure, to the benefit of any private shareholder
or individual.
(9) The term ``non-Federal financial support'' means the
total value of cash and the fair market value of property and
services (including, to the extent provided in the second
sentence of this paragraph, the personal services of
volunteers) received--
(A) as gifts, grants, bequests, donations, or other
contributions for the construction or operation of
noncommercial educational broadcast stations, or for
the production, acquisition, distribution, or
dissemination of educational television or radio
programs, and related activities, from any source other
than (i) the United States or any agency or
instrumentality of the United States; or (ii) any
public broadcasting entity; or
(B) as gifts, grants, donations, contributions, or
payments from any State, or any educational
institution, for the construction or operation of
noncommercial educational broadcast stations or for the
production, acquisition, distribution, or dissemination
of educational television or radio programs, or
payments in exchange for services or materials with
respect to the provision of educational or
instructional television or radio programs.
Such term includes the fair market value of personal services
of volunteers, as computed using the valuation standards
established by the Corporation, but only with respect to such
an entity in a fiscal year, to the extent that the value of the
services does not exceed 5 percent of the total non-Federal
financial support of the entity in such fiscal year.
(10) The term ``preoperational expenses'' means all
nonconstruction costs incurred by new telecommunications
entities before the date on which they begin providing service
to the public, and all nonconstruction costs associated with
expansion of existing entities before the date on which such
expanded capacity is activated, except that such expenses shall
not include any portion of the salaries of any personnel
employed by an operating public telecommunications entity.
(11) The term ``Public broadcasting entity'' means the
Corporation, any licensee or permittee of a public broadcast
station, or any nonprofit institution engaged primarily in the
production, acquisition, distribution, or dissemination of
educational and cultural television or radio programs.
(12) The term ``public telecommunications entity'' means
any enterprise which--
(A) is a public broadcast station or a noncommercial
telecommunications entity; and
(B) disseminates public telecommunications services
to the public.
(13) The term ``public telecommunications facilities''
means apparatus necessary for production, interconnection,
captioning, broadcast, or other distribution of programming,
including, but not limited to, studio equipment, cameras,
microphones, audio and video storage or reproduction equipment,
or both, signal processors and switchers, towers, antennas,
transmitters, translators, microwave equipment, mobile
equipment, satellite communications equipment, instructional
television fixed service equipment, subsidiary communications
authorization transmitting and receiving equipment, cable
television equipment, video and audio cassettes and discs,
optical fiber communications equipment, and other means of
transmitting, emitting, storing, and receiving images and
sounds, or intelligence, except that such term does not include
the buildings to house such apparatus (other than small
equipment shelters which are part of satellite earth stations,
translators, microwave interconnection facilities, and similar
facilities).
[(14) The term ``public telecommunications services'' means
noncommercial educational and cultural radio and television
programs, and related noncommercial instructional or
informational material that may be transmitted by means of
electronic communications.]
(14) The term ``public telecommunications services'' means
noncommercial educational and cultural--
(A) radio and television programming or other
content; and
(B) instructional or informational material
(including data) transmitted electronically.
(15) The term ``Secretary'' means the Secretary of Commerce
when such term is used in subpart A and subpart B, and the
Secretary of Health and Human Services when such term is used
in subpart C, subpart D, and this subpart.
(16) The term ``State'' includes the District of Columbia,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands, and the Trust
Territory of the Pacific Islands.
(17) The term ``system of public telecommunications
entities'' means any combination of public telecommunications
entities acting cooperatively to produce, acquire, or
distribute programs, or to undertake related activities.