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[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.
---------------------------------------------------------------------------
    \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.

                                  
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