[House Report 116-523]
[From the U.S. Government Publishing Office]


116th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       116-523

======================================================================



 
 MEASURING THE ECONOMICS DRIVING INVESTMENTS AND ACCESS FOR DIVERSITY 
                              ACT OF 2020

                                _______
                                

 September 18, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5567]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 5567) to amend the Communications Act of 1934 to 
require the Federal Communications Commission to consider 
market entry barriers for socially disadvantaged individuals in 
the communications marketplace report under section 13 of such 
Act, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Committee Hearings...............................................3
 IV. Committee Consideration..........................................3
  V. Committee Votes..................................................3
 VI. Oversight Findings...............................................4
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures4
VIII.Federal Mandates Statement.......................................4

 IX. Statement of General Performance Goals and Objectives............4
  X. Duplication of Federal Programs..................................4
 XI. Committee Cost Estimate..........................................4
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......5
XIII.Advisory Committee Statement.....................................5

XIV. Applicability to Legislative Branch..............................5
 XV. Section-by-Section Analysis of the Legislation...................5
XVI. Changes in Existing Law Made by the Bill, as Reported............5

                         I. Purpose and Summary

    H.R. 5567, the ``Measuring the Economics Driving 
Investments and Access for Diversity Act of 2020'' or the 
``MEDIA Diversity Act of 2020'', was introduced on January 9, 
2020, by Rep. Billy Long (R-MO) and Rep. Marc A. Veasey (D-TX), 
and was referred to the Committee on Energy and Commerce. The 
purpose of this legislation is to require the Federal 
Communications Commission (FCC) to consider market entry 
barriers in the communications marketplace for socially 
disadvantaged individuals.
    H.R. 5567 does this by requiring the FCC to consider, with 
the input of its Office of Communications Business 
Opportunities of the Commission, market entry barriers for 
socially disadvantaged individuals in the communications 
marketplace. The FCC will report the results pursuant to 
section 13(d) of the Communications Act of 1934, which requires 
the FCC to assess the state of competition in the 
communications marketplace and publish its findings in the last 
quarter of every even-numbered year.

                II. Background and Need for Legislation


              LACK OF COMMUNICATIONS MARKETPLACE DIVERSITY

    Ownership of communications and media distribution outlets 
by women and people of color has traditionally been--and 
continues to be--very low.\1\ Yet, viewpoint and ownership 
diversity have long been cited by Congress (as well as the FCC) 
as constituting a compelling governmental interest both for 
Congress and the FCC.\2\ Some have suggested that the lack of 
ownership opportunities by women and people of color is the 
result of several factors, including lack of access to capital, 
and limited opportunities.\3\ Without consistent and continued 
review and assessment of factors and solutions to increase 
participation by women and people of color in the 
communications marketplace, these discrepancies will continue.
---------------------------------------------------------------------------
    \1\See, e.g., Federal Communications Commission, Fourth Report on 
Ownership of Commercial Broadcast Stations (Feb. 14, 2020); Government 
Accountability Office, Economic Factors Influence the Number of Media 
Outlets in Local Markets, While Ownership by Minorities and Women 
Appears Limited and Is Difficult to Assess (April 11, 2008) (GAO 08-
383).
    \2\Michelle C. Forelle, The FCC and the Problem of Diversity, 
International Journal of Communication (2015).
    \3\Ivy Planning Group LLC, Prepared for the Office of General 
Counsel, FCC, Historical Study of Market Entry Barriers, Discrimination 
and Changes in Broadcast and Wireless Licensing, (Dec. 2000).
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                   COMMUNICATIONS MARKETPLACE REPORT

    The Communications Act of 1934, as amended, requires the 
FCC to biennially submit a report on the state of the 
communications marketplace (Report) to the Committee on Energy 
and Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate.\4\
---------------------------------------------------------------------------
    \4\47 U.S.C. Sec. 163(a).
---------------------------------------------------------------------------
    The Report (1) assesses the state of competition in the 
communications marketplace; (2) assesses the state of 
deployment of communications capabilities; (3) assesses whether 
any laws, regulations, regulatory practices, or marketplace 
practices pose a barrier to competitive entry into the 
communications marketplace; (4) describes the agenda of the FCC 
for the next 2-year period for addressing the challenges and 
opportunities in the communications marketplace; and (5) 
describes the actions that the FCC has taken to address 
challenges and opportunities in the communications 
marketplace.\5\
---------------------------------------------------------------------------
    \5\ 47 U.S.C. Sec. 163(b).
---------------------------------------------------------------------------
    In assessing the state of competition in the communications 
marketplace, the FCC currently considers all forms of 
competition, such as intermodal competition, facilities-based 
competition, competition from new and emergent communications 
services, and market entry barriers for entrepreneurs and other 
small businesses in the communications marketplace.\6\
---------------------------------------------------------------------------
    \6\ 47 U.S.C. Sec. 163(d).
---------------------------------------------------------------------------

                        III. Committee Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearing was used to develop or 
consider H.R. 5567:
    The Subcommittee on Communications and Technology held a 
hearing on January 9, 2020, entitled ``Lifting Voices: 
Legislation to Promote Media Marketplace Diversity.'' The 
Subcommittee received testimony from the following witnesses:
           Maurita Coley, Esq., President and CEO, 
        Multicultural Media, Telecom and Internet Council
           Clint Odom, Senior Vice President, Advocacy 
        & Policy & Executive Director, Washington Bureau, 
        National Urban League
           Catherine J.K. Sandoval, Associate 
        Professor, Santa Clara University School of Law
           Diane Sutter, President/CEO, ShootingStar 
        Inc.

                      IV. Committee Consideration

    Representatives Long (R-MO) and Veasey (D-TX) introduced 
H.R. 5567, the ``Measuring the Economics Driving Investments 
and Access for Diversity Act of 2020'' or the ``MEDIA Diversity 
Act of 2020'', on January 9, 2020, and the bill was referred to 
the Committee on Energy and Commerce. Subsequently, H.R. 5567 
was referred to the Subcommittee on Communications and 
Technology on January 10, 2020.
    On March 10, 2020, the Subcommittee on Communications and 
Technology met in open markup session, pursuant to notice, to 
consider H.R. 5567. No amendments were offered during 
consideration of the bill. The Subcommittee on Communications 
and Technology then agreed to a motion by Mr. Doyle, Chairman 
of the subcommittee, to favorably forward H.R. 5567, without 
amendment, to the full Committee on Energy and Commerce by a 
voice vote.
    On July 15, 2020, the full Committee met in virtual open 
markup session, pursuant to notice, to consider the bill H.R. 
5567. There were no amendments offered to the bill during its 
consideration. Upon conclusion of consideration of the bill, 
the full Committee agreed to a motion on final passage by Mr. 
Pallone, Chairman of the committee, to order H.R. 5567 reported 
favorably to the House, without amendment, by a voice vote, a 
quorum being present.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were no record votes taken on H.R. 
5567, including the motion for final passage of the bill.

                         VI. Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                    VIII. Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

       IX. Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to require 
the Federal Communications Commission to consider, with the 
input of its Office of Communications Business Opportunities of 
the Commission, market entry barriers for socially 
disadvantaged individuals in the communications marketplace.

                   X. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 5567 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

    XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 5567 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. Advisory Committee Statement

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                XIV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

           XV. Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 designates that the short title of this Act may 
be cited as the ``Measuring the Economics Driving Investments 
and Access for Diversity Act of 2020'' or the ``MEDIA Diversity 
Act of 2020''.

Sec. 2. Considering Market Entry Barriers for Socially Disadvantaged 
        Individuals

    Section 2 requires the Federal Communications Commission to 
consider, with the input of its Office of Communications 
Business Opportunities of the Commission, market entry barriers 
for socially disadvantaged individuals in the communications 
marketplace.

       XVI. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                       COMMUNICATIONS ACT OF 1934


TITLE I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 13. COMMUNICATIONS MARKETPLACE REPORT.

  (a) In General.--In the last quarter of every even-numbered 
year, the Commission shall publish on its website and submit to 
the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on the state of the 
communications marketplace.
  (b) Contents.--Each report required by subsection (a) shall--
          (1) assess the state of competition in the 
        communications marketplace, including competition to 
        deliver voice, video, audio, and data services among 
        providers of telecommunications, providers of 
        commercial mobile service (as defined in section 332), 
        multichannel video programming distributors (as defined 
        in section 602), broadcast stations, providers of 
        satellite communications, Internet service providers, 
        and other providers of communications services;
          (2) assess the state of deployment of communications 
        capabilities, including advanced telecommunications 
        capability (as defined in section 706 of the 
        Telecommunications Act of 1996 (47 U.S.C. 1302)), 
        regardless of the technology used for such deployment;
          (3) assess whether laws, regulations, regulatory 
        practices (whether those of the Federal Government, 
        States, political subdivisions of States, Indian tribes 
        or tribal organizations (as such terms are defined in 
        section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 5304)), or foreign 
        governments), or demonstrated marketplace practices 
        pose a barrier to competitive entry into the 
        communications marketplace or to the competitive 
        expansion of existing providers of communications 
        services;
          (4) describe the agenda of the Commission for the 
        next 2-year period for addressing the challenges and 
        opportunities in the communications marketplace that 
        were identified through the assessments under 
        paragraphs (1) through (3); and
          (5) describe the actions that the Commission has 
        taken in pursuit of the agenda described pursuant to 
        paragraph (4) in the previous report submitted under 
        this section.
  (c) Extension.--If the President designates a Commissioner as 
Chairman of the Commission during the last quarter of an even-
numbered year, the portion of the report required by subsection 
(b)(4) may be published on the website of the Commission and 
submitted to the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate as an addendum during the first 
quarter of the following odd-numbered year.
  (d) Special Requirements.--
          (1) Assessing competition.--In assessing the state of 
        competition under subsection (b)(1), the Commission 
        shall consider all forms of competition, including the 
        effect of intermodal competition, facilities-based 
        competition, and competition from new and emergent 
        communications services, including the provision of 
        content and communications using the Internet.
          (2) Assessing deployment.--In assessing the state of 
        deployment under subsection (b)(2), the Commission 
        shall compile a list of geographical areas that are not 
        served by any provider of advanced telecommunications 
        capability.
          (3) Considering small businesses.--In assessing the 
        state of competition under subsection (b)(1) and 
        regulatory barriers under subsection (b)(3), the 
        Commission shall consider market entry barriers for 
        entrepreneurs and other small businesses in the 
        communications marketplace in accordance with the 
        national policy under section 257(b).
          (4) Considering socially disadvantaged individuals.--
        In assessing the state of competition under subsection 
        (b)(1) and regulatory barriers under subsection (b)(3), 
        the Commission, with the input of the Office of 
        Communications Business Opportunities of the 
        Commission, shall consider market entry barriers for 
        socially disadvantaged individuals in the 
        communications marketplace in accordance with the 
        national policy under section 257(b).

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