(1) The Federal Communications Commission
predicts a diminished role for broadcast television
and a more prominent role for cable television in-
cluding pay-per-view.
(2) Roughly 18,800,000 American homes are
equipped to receive pay-per-view and this number is
expected to increase to 35,900,000 by 1996. Overall
pay-per-view 
revenue 
is 
expected 
to 
reach
$1,100,000,000 by 1996.
(3) There is a growing trend toward making
events available exclusively on pay-per-view.
(4) As this trend develops, whether the
consumer has access to these events will be deter-
mined by the ability of the consumer to pay.
(5) Professional sports leagues are beginning to
see pay-per-view as a new revenue source to keep
pace with escalating player salaries.
(6) As a result, some media analysts predict
that several of broadcast television’s premier sports
attractions eventually will migrate to pay-per-view.
(7) Limited access to viewing such events as the
‘‘Super Bowl’’ or ‘‘World Series’’ would deprive citi-
zens of the ability to enjoy these events which are
inherent in the American tradition.
(8) The majority of facilities in which such
events are held are funded through taxpayer money.
(9) It is unfair that taxpayers, who subsidize
the construction and maintenance of many of these
facilities, should have to pay an additional pay-per-
view charge for viewing these events.
(10) Nonprofit and public organizations includ-
ing public and private educational institutions and
their athletic organizations are exempt from the cor-
porate income tax.
(11) Furthermore, corporations can deduct
their donations to college sporting events as chari-
table contributions.
(12) Tax exempt status is granted to these non-
profit and public organizations by the Federal Gov-
ernment and it is unfair to allow those who use this
status to engage in pay-per-view telecasting—thus
forcing taxpayers to pay again.
(13) It is unfair that taxpayers, who subsidize
the construction and maintenance of many of these
facilities, should have to pay an additional pay-per-
view charge for viewing these events.
(14) Therefore, Congress should ensure that all
taxpaying citizens have free access to events that are
sponsored by organizations with nonprofit tax ex-
empt status and those events held in taxpayer sub-
sidized facilities.
SEC. 3. PAY-PER-VIEW CHARGES PROHIBITED.
Section 623 of the Communications Act of 1934 (47
U.S.C. 543) is amended by adding at the end thereof the
following new subsection:
‘‘(i)(1) Notwithstanding any other provision of this
title, a cable operator may not assess or collect any sepa-
rate charges for any video programming of a sporting, the-
atrical, or other entertainment event if that event is per-
formed at a facility constructed, renovated, or maintained
with tax revenues or by an organization that receives pub-
lic financial support.
‘‘(2) The Commission and local franchising authori-
ties are authorized to make determinations concerning the
applicability of the prohibition contained in paragraph (1).
In making such determinations—
‘‘(A) a facility shall be considered to have been
constructed, maintained, or renovated with tax reve-
nues if—
‘‘(i) tax exempt financing was used to con-
struct, maintain, or renovate the facility,
‘‘(ii) the facility was constructed on land
donated by a government, or leased by a gov-
ernment at below market rates, or
‘‘(iii) public infrastructure or public service
for the facility are provided by the government
at below market rates, with the exception of po-
lice, fire, and rescue services;
‘‘(B) an event is performed by a nonprofit or
public organization that receives tax subsidies if the
event is sponsored by, or includes the participation
of a team that is a part of, an organization—
‘‘(i) that is exempt from Federal income
taxes under section 501 of the Internal Revenue
Code of 1986, or
‘‘(ii) that is exempt from Federal income
taxes under section 115 of the Internal Revenue
Code of 1986, and to which donations are tax
deductible under such Code; and
‘‘(C) notwithstanding subparagraph (A), a facil-
ity shall not be considered to have been constructed
with tax revenues if the government has been reim-
bursed, through the proceeds of a sale of the facility
or otherwise, for the total amount of the tax reve-
nues that were used to construct the facility, as de-
termined under subparagraph (A), but in this sec-
tion shall be construed to exempt facilities from this
subsection if the facility is receiving current financial
support.
‘‘(3) The Commission shall prescribe, by regulation,
procedures for the administration of this subsection.’’.
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