U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

49–010 

" ! SENATE 109TH CONGRESS

1st Session 

REPORT

2005

109–210 

Calendar No. 352 

TRUTH IN BROADCASTING ACT OF 2005 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 967 

DECEMBER 20, 2005.—Ordered to be printed 


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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED NINTH CONGRESS

FIRST SESSION

TED STEVENS, Alaska, Chairman 

DANIEL K. INOUYE, Hawaii, Co-Chairman 

JOHN MCCAIN, Arizona 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

GORDON H. SMITH, Oregon 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

JOHN E. SUNUNU, New Hampshire 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK LAUTENBERG, New Jersey 

E. BENJAMIN NELSON, Nebraska 

MARK PRYOR, Arkansas 

LISA SUTHERLAND, Staff Director 

CHRISTINE DRAGER KURTH, Deputy Staff Director 

DAVID RUSSELL, Chief Counsel 

MARGARET CUMMISKY, Democratic Staff Director and Chief Counsel 

SAMUEL WHITEHORN, Democratic Deputy Staff Director and General Counsel 


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Calendar No. 352 

109TH CONGRESS REPORT " ! SENATE 1st Session 109–210 

TRUTH IN BROADCASTING ACT OF 2005 

DECEMBER 20, 2005.—Ordered to be printed 

Mr. STEVENS, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany S. 967] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 967) to amend the Communications 

Act of 1934 to ensure that prepackaged news stories contain announcements that inform viewers that the information within was 

provided by the United States Government, and for other purposes, 

having considered the same, reports favorably thereon with an 

amendment (in the nature of a substitute) and recommends that 

the bill (as amended) do pass. 

PURPOSE OF THE BILL

The purpose of S. 967 is to amend the Communications Act of 

1934 to ensure that Federal Government-produced prepackaged 

news stories contain announcements that inform viewers that the 

information within was provided by the United States Government. 

The bill will require Federal agencies to provide, within the text or 

audio of any prepackaged news story prepared or produced by that 

Federal agency and intended for broadcast or video distribution in 

the United States, clear notice that such story was produced by the 

Federal Government. In turn, broadcasters, cable and satellite companies would be allowed to remove or modify such notices only in 

circumstances to be determined by the Federal Communications 

Commission. However, broadcasters, cable and satellite companies 

that only utilize government ‘‘B-roll’’ or segments of a video news 


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release within their own creative work product are not subject to 

the disclosure requirements of this bill. The disclosure requirements are limited to the broadcast or video distribution of complete, ready-to-use audio or video news segments produced by the 

government. The bill, as amended, provides that nothing in the legislation shall be construed to apply to any lawful and authorized 

intelligence activity of the United States Government. 

BACKGROUND AND NEEDS

Prepackaged news stories are ready-to-use, complete audio or 

video news segments designed to fit seamlessly into a private 

broadcast. They are essentially the radio or television equivalent of 

a government press release. Video prepackaged news stories, 

known as video news releases (VNRs), have been used for decades 

by both Democratic and Republican administrations to communicate with the public. Since 1951, language in yearly appropriations laws has required that Federal agencies not conceal the government origin of VNRs. Specifically, appropriations laws have prohibited the use of Federal funds for covert ‘‘publicity or propaganda’’ unless otherwise authorized by Congress. The provisions included in appropriations laws are temporary, year-long prohibitions 

that expire when the appropriations laws expire. 

On May 11, 2005, President Bush signed the Emergency Supplemental Appropriations Act For Defense, The Global War On Terror, 

And Tsunami Relief, 2005, P.L. 109–13 (Defense Supplemental). A 

provision in that law required Federal agencies to disclose the government origin of prepackaged news stories. Specifically, section 

6002 of the Defense Supplemental provided that, unless otherwise 

authorized, none of the appropriated funds may be used by an executive branch agency to produce any prepackaged news story intended for broadcast or distribution in the United States unless the 

story includes a clear notification within the text or audio of the 

prepackaged news story that the prepackaged news story was prepared or funded by that executive branch agency. 

On May 12, 2005, the Commerce Committee held a hearing on 

prepackaged news stories. In that hearing, witnesses representing 

the broadcast and news distribution industry expressed concern 

that S. 967 as originally introduced might be unnecessary in light 

of long-standing, self-imposed ethical guidelines concerning the attribution of third-party sources. Moreover, the Federal Communications Commission clarified, in a Public Notice released in April 

2005, that disclosure of third party sources was already required 

under its rules in certain circumstances. 

The Defense Supplemental expired on September 30, 2005. That 

same day, the Government Accountability Office released a report 

criticizing the administration for its use of VNRs without clearly 

notifying the public of their government origins. Specifically, the 

GAO found that since prepackaged news stories are purposefully 

designed to be indistinguishable from news segments broadcast to 

the public, their broadcast without attribution to the government 

makes them no longer purely factual. 

During consideration of S. 967 in Committee, Senator Stevens offered a substitute amendment that would impose a disclosure duty 

on Federal agencies preparing or funding prepackaged news stories. The substitute amendment is closer to the prohibition in secVerDate Aug 31 2005 03:52 Jan 06, 2006 Jkt 049010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR210.XXX SR210

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tion 6002 of the Defense Supplemental than the provisions of S. 

967. The substitute requires government agencies to provide notice 

within prepackaged news stories (including VNRs) intended for 

broadcast or video distribution within the United States. It also directs the FCC to determine under what circumstances broadcasters, cable and satellite television companies should be allowed 

to remove or modify the notices placed in prepackaged news stories 

by or on behalf of the Federal agency preparing or funding them. 

Senator Lautenberg’s second degree amendment would provide 

that the new provisions shall not apply to any lawful and authorized intelligence activity of the United States Government. 

SUMMARY OF PROVISIONS

S. 967, the Prepackaged News Story Announcement Act, amends 

the Communications Act to require prepackaged news stories produced or funded by, or on behalf of, the Federal Government to 

contain a clear disclosure of such stories’ government origins. The 

bill, as amended, further provides that the circumstances under 

which such disclosure may be removed are to be determined by the 

Federal Communications Commission. As explained in the definitions section, the legislation applies only to a prepackaged news 

story, not to other individual segments contained in a video news 

release. The bill further provides that nothing in the legislation 

shall be construed to apply to any lawful and authorized intelligence activity of the United States Government. 

Section 1 contains the short title of the bill, the ‘‘Prepackaged 

News Story Announcement Act of 2005.’’

Section 2 amends the Communications Act of 1934, by inserting 

a new Section 342, ‘‘Announcement of United States Government 

Sponsorship of a Prepackaged News Story.’’

The new subsection 342(a) requires prepackaged news stories 

produced by or on behalf of a Federal agency and intended for 

broadcast over the air, or distribution by a ‘‘multichannel video programming distributor,’’ within the United States to clearly notify 

the audience that the story was prepared or funded by the Federal 

Government. The notice required by subsection 342(a) must be contained within the text or audio of the story broadcast or distributed. 

The new subsection 342(b) tasks the Federal Communications 

Commission with promulgating rules governing the circumstances 

under which broadcasters or multichannel video programming distributors may remove or modify the notification required by subsection 342(a). 

The new subsection 342(c) defines the term ‘‘prepackaged news 

story’’ as a complete, ready-to-use audio or video news segment designed to be indistinguishable from a news segment produced by an 

independent news organization. It also defines ‘‘multichannel video 

programming distributor’’ to have the meaning given that term by 

section 602(13) of the Communications Act of 1934, a meaning that 

encompasses cable television and satellite television providers. 

The new subsection 342(d) exempts from the new law any lawful 

and authorized intelligence activity of the United States Government. 


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LEGISLATIVE HISTORY

The ‘‘Truth in Broadcasting Act of 2005’’ (S. 967) was introduced 

by Senator Lautenberg on April 28, 2005 and referred to the Senate Committee on Commerce, Science, and Transportation. There 

are nine cosponsors of S. 967, including six original cosponsors. The 

original six cosponsors are Senators Kerry, Clinton, Kennedy, Dorgan, Boxer, and Dayton. The other cosponsors are Senators Akaka, 

Feingold, and Corzine. On October 20, 2005, the Committee considered the bill in an open Executive Session. Senator Stevens offered 

a manager’s amendment in the nature of a substitute, and Mr. 

Lautenberg offered an amendment to Senator Stevens’ substitute. 

Mr. Lautenberg’s amendment clarified that the requirements of S. 

967 would not apply to lawful and authorized intelligence activities 

of the United States Government. The Committee, without objection, adopted both amendments and ordered that S. 967, with the 

new short title ‘‘Prepackaged News Story Announcement Act of 

2005,’’ be reported with the amendments. 

ESTIMATED COSTS

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: 

NOVEMBER 2, 2005. 

Hon. TED STEVENS, 

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 967, the Prepackaged News 

Story Announcement Act of 2005. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN. 

Enclosure. 

S. 967—Prepackaged News Story Announcement of Act of 2005 

CBO estimates that enacting S. 967 would have no significant 

impact on the federal budget. Enacting the bill would not affect direct spending or revenues. S. 967 contains no intergovernmental or 

private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal 

governments. 

S. 967 would amend the Communications Act of 1934 to prohibit 

federal agencies from producing prepackaged news stories without 

disclaimers that identify the government as the source. A prepackaged news story is a complete, ready-to-use news item designed to be indistinguishable from a news story produced by an 

independent author or news organization. In addition, the legislation would require the Federal Communications Commission to 

promulgate rules governing when the government disclaimers can 

be modified or removed. 


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The CBO staff contact for this estimate is Matthew Pickford. 

This estimate was 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: 

NUMBER OF PERSONS COVERED

The Federal Communications Commission may issue regulations 

to implement the requirement set forth in the reported bill that announcements be included in broadcasts and video distributions by 

parties subject to the Commission’s jurisdiction. The reported bill 

also requires the Federal Communications Commission to determine the circumstances in which the announcements required by 

the legislation may be removed or modified. The Commission would 

be required to develop regulations to implement these requirements, so individuals or businesses that broadcast radio or television programs, or distribute video programming, that is subject 

to the legislation would become subject to new or modified regulations. 

ECONOMIC IMPACT

S. 967 would not have an adverse economic impact on the nation’s economy. The Act would require that prepackaged news stories contain announcements that inform audiences that the information within was prepared or funded by the United States Government. 

PRIVACY

The reported bill would have no impact on the personal privacy 

of U.S. citizens. 

PAPERWORK

The reported bill should not significantly increase paperwork requirements for individuals and businesses. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Section 1 would establish the short title of the bill as the ‘‘Prepackaged News Story Announcement Act of 2005.’’

Section 2. Prepackaged news story announcements 

This section would amend the Communications Act of 1934 by 

adding a new section 342 to the end of Title III. 

A new section 342(a) would require Federal agencies to include 

a disclosure within any government prepackaged news story that 

is intended for broadcast or video distribution within the United 

States, by a broadcaster, or cable or satellite company, that such 

prepackaged news story was prepared or funded by the United 

States Government. 


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A new section 342(b) would require the Federal Communications 

Commission to promulgate rules on the circumstances under which 

the announcement required under the new Section 342(a) may be 

removed or modified. 

A new section 342(c) would set forth the definitions used in the 

bill. This subsection defines ‘‘prepackaged news story’’ as a complete, ready-to-use audio or video news segment designed to be indistinguishable from a news segment produced by an independent 

news organization. It also defines ‘‘multichannel video programming distributor’’ as having the meaning set forth in Section 

602(13) of the Communications Act of 1934 (47 U.S.C. 522(13)). 

A new section 342(d) would provide that nothing in S. 967 shall 

be construed to apply to prepackaged news broadcast or distributed 

outside the United States with respect to activities to which Title 

V of the National Security Act of 1947 relate. 


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ADDITIONAL VIEWS OF SENATOR LAUTENBERG AND 

SENATOR KERRY 

This legislation makes it clear that the Federal Government has 

the legal obligation to identify itself as the source of prepackaged 

news stories it has funded or prepared. This law is necessary to resolve a disagreement between the Government Accountability Office (GAO) and the Administration on disclosure requirements 

when the Federal Government funds or prepares prepackaged news 

stories. 

On May 19, 2004, GAO ruled that Medicare prepackaged news 

stories produced and distributed by the Department of Health and 

Human Services (HHS) were illegal covert propaganda because 

they did not identify HHS as the source of the news story. On January 4, 2005, GAO ruled that unattributed prepackaged news stories produced and distributed by the Office of National Drug Control Policy (ONDCP) were illegal covert propaganda. In both cases, 

GAO found that the misuse of appropriate funds were also a violation of the Antideficiency Act (31 U.S.C. 1341), which prohibits expenditures that exceed budget authority, because no appropriations 

are available for illegal covert propaganda. 

In each case, GAO distinguished a video news release (VNR) 

from a prepackaged news story (which is often just one segment of 

a VNR). A full VNR may include a prepackaged news story, video 

clips or ‘‘B-roll,’’ and ‘‘slates’’ or ‘‘slides’’ with information on the 

agency or the program in question, as well as other promotional 

materials. GAO took issue specifically with the prepackaged news 

stories within the larger VNR. 

On February 17, 2005, GAO sent a memo to all Federal agencies 

instructing them to identify themselves in all prepackaged news 

stories. Then, on March 11, 2005, the Office of Management and 

Budget (OMB) and the Department of Justice (DOJ) sent a memo 

to all Federal agencies telling them to ignore the directives in the 

GAO memo, claiming that agencies do not need to identify the Government as the source of prepackaged news stories. 

On May 11, 2005, a provision in the Emergency Supplemental 

Appropriations Act for Defense, The Global War on Terror, And 

Tsunami Relief, 2005, P.L. 109–13 (Defense Supplemental) imposed 

a requirement that a prepackaged news story prepared or funded 

by a Federal agency include a clear notification that the agency 

was the source of the story. 

The Defense Supplemental expired on September 30, 2005. That 

same day, the Government Accountability Office (GAO) released a 

report finding that Department of Education prepackaged news 

stories promoting the Administration’s ‘‘No Child Left Behind’’ program were illegal covert propaganda. This was the third such ruling by the GAO against the use of Government funds for ‘‘covert 

propaganda’’ since May 2004. As with the previous two violations, 


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GAO also found this misuse of appropriated funds to be a violation 

of the Antideficiency Act. However, as was the case with the other 

two GAO legal decisions, the Administration rejected the legal findings. 

It is in this context that legislation is necessary to permanently 

require a clear notification within a prepackaged news story produced by or on behalf of a Federal agency that the story was prepared or funded by the United States Government. 


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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): 

TITLE 47, UNITED STATE CODE 

Subtitle III. Special Provisions Relating to Radio 

Part I. General Provisions 

SEC. ANNOUNCEMENT OF UNITED STATES GOVERNMENT SPONSORSHIP OF A PREPACKAGED NEWS STORY. 

(a) DISCLAIMER REQUIRED.—Any prepackaged news story produced by or on behalf of a Federal agency and intended for broadcast over the air or distribution by a multichannel video programming distributor within the United States shall contain a clear notification within the text or audio of the prepackaged news story that 

the prepackaged news story was prepared or funded by the United 

States Government. 

(b) REMOVAL OF DISCLAIMER.—The Commission shall promulgate rules governing the circumstances under which broadcasters or 

multichannel video programming distributors may remove or modify the announcement required under subsection (a). 

(c) DEFINITIONS.—In this section: 

(1) PREPACKAGED NEWS STORY.—The term ‘‘prepackaged 

news story’’ means a complete, ready-to-use audio or video news 

segment designed to be indistinguishable from a news segment 

produced by an independent news organization. 

(2) MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTOR.— The term ‘‘multichannel video programming distributor’’ has 

the meaning given that term by section 602(13). 

(d) INTELLIGENCE ACTIVITIES.—Nothing in this section shall be 

construed to apply to any lawful and authorized intelligence activity 

of the United States Government. 

Æ 


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