I
104TH CONGRESS
1ST SESSION
H. R. 177
To amend the Communications Act of 1934 to require the Federal Commu-
nications Commission to continue and improve efforts to promote diver-
sity in media ownership, management, and programming, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mrs. COLLINS of Illinois introduced the following bill; which was referred to
the Committee on Commerce
A BILL
To amend the Communications Act of 1934 to require the
Federal Communications Commission to continue and
improve efforts to promote diversity in media ownership,
management, and programming, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Diversity in Media Act of 1995’’.
(b) REFERENCES.—References in this Act to ‘‘the
Act’’ are references to the Communications Act of 1934
(47 U.S.C. 151 et seq.).
SEC. 2. FINDINGS.
The Congress finds that—
(1) the Communications Act of 1934 was en-
acted to ensure that the allocation of the various
broadcast media would promote the expression of di-
verse opinions and the rapid and vigorous exchange
of information;
(2) the Federal Communications Commission
has formulated policies to promote diversity in the
ownership and management of broadcast media;
(3) the United States Supreme Court has af-
firmed the constitutionality of the Federal Commu-
nications Commission’s policies to promote diversity;
and
(4) it is therefore necessary to codify and to ex-
tend the policies and procedures that promote diver-
sity in the ownership, management, and program-
ming of the broadcast media.
SEC. 3. FINDINGS AND PURPOSES REGARDING DISCRIMI-
NATION.
The Act is amended by inserting after section 2
thereof the following new section:
‘‘FINDINGS AND PURPOSES REGARDING DISCRIMINATION
‘‘SEC. 2A. (a) The Congress hereby finds that—
‘‘(1) minority and female Americans have been
and continue to be unjustly deprived of full partici-
pation in the common carrier, private radio, and
broadcasting 
communications 
services 
regulated
under this Act;
‘‘(2) an efficient American telecommunications
industry is of grave importance to the interstate and
foreign commerce of the Nation;
‘‘(3) minority and female Americans have not
fully participated as employees or owners of tele-
communications facilities and this lack of participa-
tion greatly decreases the efficiency of the American
telecommunications industry;
‘‘(4) participation by minority and female
Americans as owners or employees of telecommuni-
cations facilities materially contributes to the diver-
sity of information available to the public through
these facilities;
‘‘(5) such participation promotes the public in-
terest not only in expression of diverse opinions, but
in promoting the sense of self-esteem and integrity
that is essential to reducing racial tensions and so-
cial conflicts and motivating individuals to seek and
take productive places in society; and
‘‘(6) reliance on indirect structural regulation of
diversity of ownership and control is an important
and reasonable method to carry out the fundamental
objectives of the First Amendment in promoting free
and open expression of diverse opinions.
‘‘(b) It is a purpose of this Act to provide for greater
diversity of ownership and control of telecommunications
in the domestic and international marketplace by requir-
ing persons subject to regulation under this Act to develop
and implement equal opportunity programs as part of
their employment practices.’’.
SEC. 4. DEFINITIONS.
Section 3 of the Act (47 U.S.C. 153) is amended by
adding at the end thereof the following new paragraphs:
‘‘(hh) ‘Minority’ means American Indians and Alaska
Natives; Asians and Pacific Islanders; Blacks, not of His-
panic origin; and Hispanics.
‘‘(ii) An entity is ‘owned or controlled’ by members
of a minority or by women if—
‘‘(1) in the case of a sole proprietorship, the
sole proprietor is a member of a minority or is a
woman;
‘‘(2) in the case of a partnership, a majority of
the equity interest held by general partners is held
by members of a minority or women, and the general
partners hold at least 20 percent of the equity inter-
est in the partnership;
‘‘(3) in the case of a corporation with only one
class of voting securities, a majority of the voting se-
curities are held by members of a minority or
women; and
‘‘(4) in the case of a corporation with more
than one class of voting securities, members of a mi-
nority or women hold securities controlling a major-
ity of the votes and representing at least 20 percent
of the equity interest in the corporation.’’.
SEC. 5. ANNUAL REPORT ON OWNERSHIP AND CONTROL BY
MINORITIES AND WOMEN.
Section 303 of the Act (47 U.S.C. 303) is amended
by adding at the end thereof the following:
‘‘(v) Require, by regulation, that each holder of a li-
cense or permit for any media of mass communications
submit to the Commission an annual report describing, in
such detail as that regulation may require, the proportion
of the ownership and control of such holder that is held
by minorities and women.’’.
SEC. 6. PREFERENCES AND ENHANCEMENTS IN COMPARA-
TIVE SELECTIONS.
Section 309(e) of the Act is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and
(2) by adding at the end thereof the following
new paragraphs:
‘‘(2) When the Commission has so designated for a
comparative hearing two or more mutually exclusive appli-
cations, the Commission—
‘‘(A) determines if an applicant is entitled to
prevail based on the extent to which selection of the
applicant will increase diversification of ownership;
‘‘(B) determines, if an applicant is not so enti-
tled to prevail, if an applicant is entitled to prevail
based on the extent to which the ownership and
management of the applicant are functionally inte-
grated; and
‘‘(C) determines, if an applicant is not so enti-
tled to prevail, the applicant that, based on the fac-
tors reviewed under subparagraphs (A) and (B), will
best promote the public interest, convenience, and
necessity.
‘‘(3) In evaluating which applicants will increase di-
versification under paragraph (2)(A), the Commission
shall—
‘‘(A) award a demerit based on the extent of
ownership in other media of mass communication;
and
‘‘(B) award an enhancement credit based on the
extent to which the applicant is owned or controlled
by minorities or women.
‘‘(4) In evaluating applicants’ integration of owner-
ship and management under paragraph (2)(B), the Com-
mission shall award enhancement credits for the following
characteristics (listed in descending order of the mag-
nitude of the credit which may be awarded):
‘‘(A) The extent to which the applicant is
owned or controlled by minorities or women.
‘‘(B) The extent of the applicant’s past local
residence and participation in local civic affairs.
‘‘(C) The extent to which the applicant has pre-
vious broadcast or other business experience trans-
ferable to broadcasting.’’.
SEC. 7. PREFERENCES AND ENHANCEMENTS IN CONNEC-
TION WITH RANDOM SELECTIONS.
(a) DEFINITION OF MEDIA OF MASS COMMUNICA-
TION.—Section 309(i)(3)(C)(i) of the Act is amended—
(1) by inserting after ‘‘direct broadcast satellite
service,’’ the following: ‘‘instructional television fixed
service, operational fixed and fixed satellite services
(if used for mass media purposes),’’; and
(2) by inserting before the period at the end
thereof the following: ‘‘, without regard to whether
such services are distributed for a fee or whether the
reception system is individually addressed’’.
(b) DEFINITION OF SYSTEM OF RANDOM SELEC-
TION.—Section 309(i)(3)(C) is further amended by adding
at the end thereof the following new paragraph:
‘‘(iii) The term ‘system of random selection’ includes
any selection system that uses chance, in whole or in part,
to select one applicant from a group or pool of qualified
applicants, without regard to whether that selection sys-
tem is used alone or in conjunction with any other mecha-
nism (such as a point system, comparative hearing, or
other method) as a tie-breaker.’’.
(c) RESTRICTIONS ON SELECTION CRITERIA USED IN
CONJUNCTION
WITH
RANDOM
SELECTIONS.—Section
309(i)(4) of the Act is amended by adding at the end
thereof the following:
‘‘(D) If the Commission establishes any point system,
comparative criteria, or other selection criteria for use in
conjunction with a system of random selection to select
among mutually exclusive applicants for licenses for media
of mass communication, each such point system, compara-
tive criteria, or other selection system shall provide for the
granting of a significant preference or enhancement to any
applicant that is owned or controlled by members of a mi-
nority group or by women.’’.
SEC. 8. TAX CERTIFICATES AND DISTRESS SALES.
Title I of the Act is amended by adding at the end
thereof the following new section:
‘‘SEC. 10. TAX CERTIFICATES AND DISTRESS SALES.
‘‘(a) ISSUANCE OF CERTIFICATE.—When determin-
ing whether to approve an application for consent by the
Commission to an assignment of a license or construction
permit or to a transfer of control of a corporate licensee
or permittee for a broadcast, common carrier, private
radio, or other telecommunications facility to an assignee
or transferee that is owned or controlled by members of
a minority or by women, the Commission, after determin-
ing the qualifications of the applicant under section
308(b), shall issue a tax certificate under section 1071 of
the Internal Revenue Code of 1954 (relating to gain from
sale or exchange to effectuate policies of Federal Commu-
nications Commission) if the Commission finds such ac-
tion to be consistent with section 2A.
‘‘(b) FINDINGS REQUIRED.—When considering a li-
cense which has been designated for a revocation hearing,
or a license renewal application which has been designated
for hearing, the Commission shall permit the licensee to
assign or transfer its license to an applicant that is owned
or controlled by members of a minority or by women, if—
‘‘(1) the applicant is qualified under section
308(b);
‘‘(2) the maximum percentage of the fair mar-
ket value, as of the date of the filing of the applica-
tion for transfer or assignment, or as of the date of
designation, whichever is lower, of the facility to be
paid by the assignee or transferee for the facility
does not exceed—
‘‘(A) 75 percent, if the assignment or
transfer is proposed after designation for hear-
ing but before the hearing begins;
‘‘(B) 50 percent, if the assignment or
transfer is proposed after the first prehearing
conference but before the order of the adminis-
trative law judge involved; or
‘‘(C) 25 percent, if the assignment or
transfer is proposed after such order but before
a final ruling of the Commission denying the li-
cense renewal or revoking the license; and
‘‘(3) there has been no final ruling of the Com-
mission denying the license renewal or revoking the
license.’’.
SEC. 9. EQUAL EMPLOYMENT OPPORTUNITY.
Title I of the Act is further amended by adding at
the end the following new section:
of specific practices designed to ensure equal opportunity
in every aspect of its employment policy and practice.
Under the terms of its programs, it shall—
‘‘(1) define the responsibility of each level of
management to ensure a positive application and
vigorous enforcement of its policy of equal oppor-
tunity, and establish a procedure to review and con-
trol managerial and supervisory performance;
‘‘(2) inform its employees and recognized em-
ployee organizations of the equal employment oppor-
tunity policy and program and enlist their coopera-
tion;
‘‘(3) communicate its equal employment oppor-
tunity policy and program and its employment needs
to sources of qualified applicants without regard to
race, color, religion, national origin, age, or sex, and
solicit their recruitment assistance on a continuing
basis;
‘‘(4) conduct a continuing program to exclude
every form of prejudice or discrimination based on
race, color, religion, national origin, age, or sex,
from its personnel policies and practices and work-
ing conditions; and
‘‘(5) conduct a continuing review of job struc-
ture and employment practices and adopt positive
recruitment, training, job design, and other meas-
ures needed to ensure genuine equality of oppor-
tunity to participate fully in all its organizational
units, occupations, and levels of responsibility.
‘‘(d) REGULATIONS REQUIRED.—
‘‘(1) Not later than 180 days after the date of
enactment of this section, and after notice and op-
portunity for hearing, the Commission shall pre-
scribe rules to carry out this section.
‘‘(2) Such rules shall specify the terms under
which an entity specified in subsection (a) shall, to
the extent possible—
‘‘(A) disseminate its equal opportunity pro-
gram to job applicants, employees, and those
with whom it regularly does business;
‘‘(B) use minority organizations, organiza-
tions for women, media, educational institu-
tions, and other potential sources of minority
and female applicants, to supply referrals when-
ever jobs are available in its operation;
‘‘(C) train minority and female employees,
interns, or both, or provide assistance to minor-
ity educational institutions and educational in-
stitutions for women so that they can provide
such training, except that such requirement is
not mandatory for entities specified in sub-
section (a) with fewer than fifteen full-time
employees;
‘‘(D) evaluate its employment profile and
job turnover against the availability of minori-
ties and women in its labor recruitment area;
‘‘(E) undertake to offer promotions of mi-
norities and women to positions of greater re-
sponsibility;
‘‘(F) encourage minority and female entre-
preneurs to conduct business with all parts of
its operation; and
‘‘(G) analyze the results of its efforts to re-
cruit, hire, promote, and use the services of mi-
norities and women and explain any difficulties
encountered in implementing its equal employ-
ment opportunity program.
‘‘(3) Such rules also shall require an entity
specified in subsection (a) to file an annual statis-
tical report identifying by race and sex the number
of employees in each of the following full-time and
part-time job categories: (A) Corporate Manager;
(B) General Manager; (C) Chief Technician; (D)
Comptroller; (E) General Sales Manager; (F) Pro-
duction Manager; (G) Managers; (H) Professionals;
(I) Technicians; (J) Sales; (K) Office and Clerical;
(L) Skilled Craftspersons; (M) Semiskilled Opera-
tors; (N) Unskilled Laborers; (O) Service Workers.’’.
SEC. 10. REPORT TO CONGRESS.
Section 4(k) of the Communications Act of 1934 (47
U.S.C. 154(k)) is amended by redesignating paragraphs
(3) and (4) as paragraphs (4) and (5), respectively, and
by inserting after paragraph (2) the following new para-
graph:
‘‘(3) such information and data as may be of
value in determining the extent to which minorities
and women have participated, and will, under the
rules and policies of the Commission, have opportu-
nities to participate, as employees and owners of
telecommunications facilities;’’.
SEC. 11. ADDITIONAL PROVISIONS.
Section 309 of the Communications Act of 1934 is
further amended by adding at the end thereof the follow-
ing new subsection:
‘‘(k)(1) Consistent with the objective of promoting di-
versity of ownership of the media of mass communications,
the Commission shall include, in any criteria used to limit
number, eligibility, or the community (of license) of appli-
cations for new licenses for media of mass communications
(as that term is used in subsection (i) of the Act), provi-
sions that will increase the diversity of the ownership
among the new licenses granted.
‘‘(2) When specifying application acceptance require-
ments for AM clear-channel stations, the Commission
shall accept all technically qualified applications which are
owned or controlled by members of a minority or by
women.
‘‘(3) As used in paragraph (2) of this subsection, the
term ‘AM clear-channel stations’ means new unlimited-
time stations, nighttime operation by an authorized day-
time station, or a major change in facilities resulting in
operation on an AM channel (A) on which a dominant sta-
tion or stations render service over a wide area and (B)
which is cleared of objectionable interference within its
primary service area and over all or a substantial portion
of its secondary service areas.’’.
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