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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4158 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 4158

To direct the Federal Communications Commission to take certain actions 
 to increase diversity of ownership in the broadcasting industry, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 18, 2024

  Mr. Peters (for himself, Ms. Stabenow, Ms. Baldwin, Mr. Schatz, Mr. 
  Blumenthal, Ms. Klobuchar, and Mr. Cardin) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To direct the Federal Communications Commission to take certain actions 
 to increase diversity of ownership in the broadcasting industry, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Broadcast Varied Ownership 
Incentives for Community Expanded Service Act'' or the ``Broadcast 
VOICES Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Broadcast station.--The term ``broadcast station'' has 
        the meaning given the term in section 3 of the Communications 
        Act of 1934 (47 U.S.C. 153).
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Owned by socially disadvantaged individuals.--The term 
        ``owned by socially disadvantaged individuals'' has the meaning 
        given the term in section 346(a) of the Communications Act of 
        1934, as added by section 5(a)(1) of this Act.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) One of the main missions of the Commission, and a 
        compelling governmental interest, is to ensure that there is a 
        diversity of ownership and viewpoints in the broadcasting 
        industry.
            (2) The Commission should continue to collect relevant data 
        on the diversity described in paragraph (1), adopt improvements 
        to that data collection and related studies, and make 
        appropriate recommendations to Congress regarding how to 
        increase the number of minority- and women-owned broadcast 
        stations.
            (3) Data from 2021 shows that, of the nearly 1,760 full 
        power commercial broadcast television stations in the United 
        States, less than 6 percent are owned by women and less than 4 
        percent are minority-owned. With respect to full power 
        commercial radio stations, women owned approximately 9 percent 
        of FM broadcast radio stations, and minorities owned less than 
        3 percent of those stations.
            (4) In the 17 years that a minority tax certificate program 
        was in place at the Commission between 1978 and 1995, the 
        Commission issued 287 certificates for radio stations, and 40 
        certificates for television stations, under that program.

SEC. 4. FCC REPORTS TO CONGRESS.

    (a) Biennial Report Containing Recommendations for Increasing 
Number and Value of Broadcast Stations Owned by Socially Disadvantaged 
Individuals.--Not later than 180 days after the date of enactment of 
this Act, and not less frequently than once every 2 years thereafter, 
the Commission shall submit to Congress a report containing 
recommendations for how to increase the total number, and the value, of 
broadcast stations that are owned by socially disadvantaged 
individuals.
    (b) Biennial Report on Number of Broadcast Stations Owned by 
Socially Disadvantaged Individuals.--Not later than 180 days after the 
date of enactment of this Act, and not less frequently than once every 
2 years thereafter, the Commission shall submit to Congress a report 
that identifies the total number of broadcast stations that are owned 
by socially disadvantaged individuals, based on data reported to the 
Commission on Form 323 of the Commission.

SEC. 5. TAX CERTIFICATE PROGRAM FOR BROADCAST STATION TRANSACTIONS 
              FURTHERING OWNERSHIP BY SOCIALLY DISADVANTAGED 
              INDIVIDUALS.

    (a) Requirements for Issuance of Certificate by FCC.--
            (1) In general.--Part I of title III of the Communications 
        Act of 1934 (47 U.S.C. 301 et seq.) is amended by adding at the 
        end the following:

``SEC. 346. TAX CERTIFICATE PROGRAM FOR BROADCAST STATION TRANSACTIONS 
              FURTHERING OWNERSHIP BY SOCIALLY DISADVANTAGED 
              INDIVIDUALS.

    ``(a) Definitions.--In this section:
            ``(1) Owned by socially disadvantaged individuals.--The 
        term `owned by socially disadvantaged individuals' means, with 
        respect to a broadcast station, that--
                    ``(A) the station is more than 50 percent (or some 
                other percentage determined by the Commission) owned by 
                1 or more socially disadvantaged individuals, or, in 
                the case of any publicly traded broadcast station, more 
                than 50 percent (or some other percentage determined by 
                the Commission) of the securities of such station is 
                owned by 1 or more socially disadvantaged individuals; 
                and
                    ``(B) the management and daily business operations 
                of the station are controlled by 1 or more socially 
                disadvantaged individuals.
            ``(2) Socially disadvantaged individual.--The term 
        `socially disadvantaged individual' means--
                    ``(A) a woman; or
                    ``(B) an individual who has been subjected to 
                racial or ethnic prejudice or cultural bias because of 
                the identity of the individual as a member of a group, 
                without regard to the individual qualities of the 
                individual.
    ``(b) Issuance of Certificate by Commission.--Subject to the rules 
adopted by the Commission under subsection (d), upon application by a 
person that engages in a sale described in subsection (c), the 
Commission shall issue to that person a certificate stating that the 
sale meets the requirements of this section.
    ``(c) Sales Described.--A sale described in this subsection is 
either of the following:
            ``(1) Sale resulting in or preserving ownership and control 
        by socially disadvantaged individuals.--A sale of an interest 
        in a broadcast station if, immediately after the sale, the 
        station is owned by socially disadvantaged individuals, without 
        regard to whether, before the sale, the station was owned by 
        socially disadvantaged individuals.
            ``(2) Sale by investor in station owned by socially 
        disadvantaged individuals.--In the case of a person that has 
        contributed capital in exchange for an interest in a broadcast 
        station that is owned by socially disadvantaged individuals, a 
        sale by that person of some or all of that interest.
    ``(d) Rules.--The Commission shall adopt rules for the issuance of 
a certificate under subsection (b) that provide for the following:
            ``(1) Limit on value of sale.--A limit on the value of an 
        interest the sale of which qualifies for the issuance of such a 
        certificate, which shall be not greater than $50,000,000.
            ``(2) Minimum holding period.--In the case of a sale 
        described in subsection (c)(1), a minimum period after the sale 
        during which the broadcast station shall remain owned by 
        socially disadvantaged individuals, which shall be not shorter 
        than 2 years and not longer than 3 years.
            ``(3) Cumulative limit on number or value of sales.--A 
        limit on the total number of sales per year or the total value 
        of sales per year, or both, for which a person may be issued 
        certificates under subsection (b).
            ``(4) Participation in station management by socially 
        disadvantaged individuals.--Requirements for participation by 
        socially disadvantaged individuals in the management of the 
        broadcast station.
            ``(5) Certification.--
                    ``(A) In general.--In the case of a sale described 
                in subsection (c)(1), a requirement that the buyer of 
                the interest in the broadcast station certify, every 
                180 days during the minimum holding period adopted 
                under paragraph (2), compliance with the rules issued 
                under that paragraph and paragraph (4).
                    ``(B) Failure to comply.--With respect to a failure 
                to make a certification required under subparagraph 
                (A), the Commission shall--
                            ``(i) report the failure to the 
                        Commissioner of Internal Revenue; and
                            ``(ii) include the failure in the report to 
                        Congress submitted under subsection (e) that 
                        covers the period during which the failure 
                        occurred.
    ``(e) Annual Report to Congress.--The Commission shall submit to 
Congress an annual report describing the sales for which certificates 
have been issued under subsection (b) during the period covered by the 
report.''.
            (2) Deadline for issuance of rules.--Not later than 1 year 
        after the date of enactment of this Act, the Commission shall 
        issue rules to implement section 346 of the Communications Act 
        of 1934, as added by paragraph (1).
            (3) Report to congress on program expansion.--Not later 
        than 6 years after the date of enactment of this Act, the 
        Commission shall submit to Congress a report regarding whether 
        Congress should expand section 346 of the Communications Act of 
        1934, as added by paragraph (1), beyond broadcast stations to 
        cover other entities regulated by the Commission.
            (4) Examination and report to congress on nexus between 
        diversity of ownership and diversity of viewpoint.--
                    (A) Examination.--Not later than 60 days after the 
                date of enactment of this Act, the Commission shall 
                initiate an examination of whether there is a nexus 
                between diversity of ownership or control of broadcast 
                stations (including ownership or control by members of 
                minority groups or women, or by both members of 
                minority groups and women) and diversity of the 
                viewpoints expressed in the matter that is broadcast by 
                broadcast stations.
                    (B) Report to congress.--Not later than 2 years 
                after the date of enactment of this Act, the Commission 
                shall submit to Congress a report on the findings of 
                the Commission in the examination under subparagraph 
                (A), including supporting data.
    (b) Nonrecognition of Gain or Loss for Tax Purposes.--
            (1) In general.--Subchapter O of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by inserting after part IV the 
        following new part:

        ``PART V--SALE OF INTEREST IN CERTAIN BROADCAST STATIONS

``SEC. 1071. NONRECOGNITION OF GAIN OR LOSS FROM SALE OF INTEREST IN 
              CERTAIN BROADCAST STATIONS.

    ``(a) Nonrecognition of Gain or Loss.--If a sale of an interest in 
a broadcast station, within the meaning of section 346 of the 
Communications Act of 1934, is certified by the Federal Communications 
Commission under such section, such sale shall, if the taxpayer so 
elects, be treated as an involuntary conversion of such property within 
the meaning of section 1033. For purposes of such section as made 
applicable by the provisions of this section, stock of a corporation 
operating a broadcast station shall be treated as property similar or 
related in service or use to the property so converted. The part of the 
gain, if any, on such sale to which section 1033 is not applied shall 
nevertheless not be recognized, if the taxpayer so elects, to the 
extent that it is applied to reduce the basis for determining gain or 
loss on any such sale, of a character subject to the allowance for 
depreciation under section 167, remaining in the hands of the taxpayer 
immediately after the sale, or acquired in the same taxable year. The 
manner and amount of such reduction shall be determined under 
regulations prescribed by the Secretary. Any election made by the 
taxpayer under this section shall be made by a statement to that effect 
in his return for the taxable year in which the sale takes place, and 
such election shall be binding for the taxable year and all subsequent 
taxable years.
    ``(b) Minimum Holding Period; Continued Management.--If--
            ``(1) there is nonrecognition of gain or loss to a taxpayer 
        under this section with respect to a sale of property 
        (determined without regard to this paragraph), and
            ``(2) the taxpayer ceases to fulfill any requirements of 
        the rules adopted by the Federal Communications Commission 
        under paragraph (2) or (4) of section 346(c) of the 
        Communications Act of 1934 (as such rules are in effect on the 
        date of such sale),
there shall be no nonrecognition of gain or loss under this section to 
the taxpayer with respect to such sale, except that any gain or loss 
recognized by the taxpayer by reason of this subsection shall be taken 
into account as of the date on which the taxpayer so ceases to fulfill 
such requirements.
    ``(c) Basis.--For basis of property acquired on a sale treated as 
an involuntary conversion under subsection (a), see section 1033(b).''.
            (2) Clerical amendment.--The table of parts for subchapter 
        O of chapter 1 of the Internal Revenue Code of 1986 is amended 
        by inserting after the item related to part IV the following 
        new part:

        ``Part V--Sale of Interest in Certain Broadcast Stations

``Section 1071. Nonrecognition of gain or loss from sale of interest in 
                            certain broadcast stations.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to sales of interests in broadcast stations after 
the date that is 1 year after the date of enactment of this Act.
    (d) Sunset.--The amendments made by this section shall not apply 
with respect to sales of interests in broadcast stations after the date 
that is 16 years after the date of enactment of this Act.

SEC. 6. CREDIT FOR CERTAIN CONTRIBUTIONS WITH RESPECT TO BROADCAST 
              STATIONS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. CREDIT FOR CERTAIN CONTRIBUTIONS WITH RESPECT TO BROADCAST 
              STATIONS.

    ``(a) In General.--For purposes of section 38, the broadcast 
station contribution credit determined under this section for any 
taxable year is an amount equal to the fair market value of any 
broadcast station, or any interest in a broadcast station, which is 
contributed in a qualified contribution during such taxable year.
    ``(b) Qualified Contribution.--For purposes of this section--
            ``(1) In general.--The term `qualified contribution' means 
        a contribution or gift to or for the use of an entity described 
        in section 170(c)(2) which has as a part of its charitable 
        purpose the training of socially disadvantaged individuals in 
        the management and operation of broadcast stations (as 
        certified by the Federal Communications Commission), but only 
        if the recipient holds such station or interest for not less 
        than 2 years after the date of the contribution.
            ``(2) Socially disadvantaged individuals.--The term 
        `socially disadvantaged individuals' has the meaning given such 
        term in section 346(a)(2) of the Communications Act of 1934.
    ``(c) Broadcast Station.--For purposes of this section, the term 
`broadcast station' has the same meaning as when used in section 346 of 
the Communications Act of 1934.
    ``(d) Denial of Deduction.--No deduction shall be allowed under 
section 170 with respect to any contribution for which credit is 
allowed under this section.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
the Internal Revenue Code of 1986 is amended by striking ``plus'' at 
the end of paragraph (40), by striking the period at the end of 
paragraph (41) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(42) the broadcast station contribution credit determined 
        under section 45BB(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45BB. Credit for certain contributions with respect to broadcast 
                            stations.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after the date 
of the enactment of this Act.
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