I

103D CONGRESS

1ST SESSION H. R. 1987

To prohibit pay-per-view charges for entertainment events that receive public

financial support whether or including private entities, nonprofit organizations or governmental entities.

IN THE HOUSE OF REPRESENTATIVES

MAY 5, 1993

Mr. LIPINSKI introduced the following bill; which was referred to the

Committee on Energy and Commerce

A BILL

To prohibit pay-per-view charges for entertainment events

that receive public financial support whether or including

private entities, nonprofit organizations or governmental

entities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Taxpayer’s Right To

5 View Act of 1993’’.

6 SEC. 2. FINDINGS.

7 The Congress finds the following:
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1 (1) The Federal Communications Commission

2 predicts a diminished role for broadcast television

3 and a more prominent role for cable television in4 cluding pay-per-view.

5 (2) Roughly 18,800,000 American homes are

6 equipped to receive pay-per-view and this number is

7 expected to increase to 35,900,000 by 1996. Overall

8 pay-per-view revenue is expected to reach

9 $1,100,000,000 by 1996.

10 (3) There is a growing trend toward making

11 events available exclusively on pay-per-view.

12 (4) As this trend develops, whether the

13 consumer has access to these events will be deter14 mined by the ability of the consumer to pay.

15 (5) Professional sports leagues are beginning to

16 see pay-per-view as a new revenue source to keep

17 pace with escalating player salaries.

18 (6) As a result, some media analysts predict

19 that several of broadcast television’s premier sports

20 attractions eventually will migrate to pay-per-view.

21 (7) Limited access to viewing such events as the

22 ‘‘Super Bowl’’ or ‘‘World Series’’ would deprive citi23 zens of the ability to enjoy these events which are

24 inherent in the American tradition.
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1 (8) The majority of facilities in which such

2 events are held are funded through taxpayer money.

3 (9) It is unfair that taxpayers, who subsidize

4 the construction and maintenance of many of these

5 facilities, should have to pay an additional pay-per6 view charge for viewing these events.

7 (10) Nonprofit and public organizations includ8 ing public and private educational institutions and

9 their athletic organizations are exempt from the cor10 porate income tax.

11 (11) Furthermore, corporations can deduct

12 their donations to college sporting events as chari13 table contributions.

14 (12) Tax exempt status is granted to these non15 profit and public organizations by the Federal Gov16 ernment and it is unfair to allow those who use this

17 status to engage in pay-per-view telecasting—thus

18 forcing taxpayers to pay again.

19 (13) It is unfair that taxpayers, who subsidize

20 the construction and maintenance of many of these

21 facilities, should have to pay an additional pay-per22 view charge for viewing these events.

23 (14) Therefore, Congress should ensure that all

24 taxpaying citizens have free access to events that are

25 sponsored by organizations with nonprofit tax ex-
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1 empt status and those events held in taxpayer sub2 sidized facilities.

3 SEC. 3. PAY-PER-VIEW CHARGES PROHIBITED.

4 Section 623 of the Communications Act of 1934 (47

5 U.S.C. 543) is amended by adding at the end thereof the

6 following new subsection:

7 ‘‘(i)(1) Notwithstanding any other provision of this

8 title, a cable operator may not assess or collect any sepa9 rate charges for any video programming of a sporting, the10 atrical, or other entertainment event if that event is per11 formed at a facility constructed, renovated, or maintained

12 with tax revenues or by an organization that receives pub13 lic financial support.

14 ‘‘(2) The Commission and local franchising authori15 ties are authorized to make determinations concerning the

16 applicability of the prohibition contained in paragraph (1).

17 In making such determinations—

18 ‘‘(A) a facility shall be considered to have been

19 constructed, maintained, or renovated with tax reve20 nues if—

21 ‘‘(i) tax exempt financing was used to con22 struct, maintain, or renovate the facility,

23 ‘‘(ii) the facility was constructed on land

24 donated by a government, or leased by a gov25 ernment at below market rates, or
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1 ‘‘(iii) public infrastructure or public service

2 for the facility are provided by the government

3 at below market rates, with the exception of po4 lice, fire, and rescue services;

5 ‘‘(B) an event is performed by a nonprofit or

6 public organization that receives tax subsidies if the

7 event is sponsored by, or includes the participation

8 of a team that is a part of, an organization—

9 ‘‘(i) that is exempt from Federal income

10 taxes under section 501 of the Internal Revenue

11 Code of 1986, or

12 ‘‘(ii) that is exempt from Federal income

13 taxes under section 115 of the Internal Revenue

14 Code of 1986, and to which donations are tax

15 deductible under such Code; and

16 ‘‘(C) notwithstanding subparagraph (A), a facil17 ity shall not be considered to have been constructed

18 with tax revenues if the government has been reim19 bursed, through the proceeds of a sale of the facility

20 or otherwise, for the total amount of the tax reve21 nues that were used to construct the facility, as de22 termined under subparagraph (A), but in this sec23 tion shall be construed to exempt facilities from this

24 subsection if the facility is receiving current financial

25 support.
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1 ‘‘(3) The Commission shall prescribe, by regulation,

2 procedures for the administration of this subsection.’’.

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