I
104TH CONGRESS
2D SESSION
H. R. 2979
To ensure the financial self-sufficiency of public broadcasting, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 28, 1996
Mr. FIELDS of Texas (for himself, Mr. PORTER, Mr. OXLEY, Mr. MOORHEAD,
Mr. SCHAEFER, Mr. BARTON of Texas, Mr. HASTERT, Mr. GILLMOR, and
Mr. FRISA) introduced the following bill; which was referred to the Com-
mittee on Commerce
A BILL
To ensure the financial self-sufficiency of public
broadcasting, 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.
This Act may be cited as the ‘‘Public Broadcasting
Self-Sufficiency Act of 1996’’.
of the Commission applicable to such oper-
ations.
‘‘(3) INELIGIBILITY
FOR
GRANTS.—No non-
commercial educational television station operating
under an agreement or instrument filed under para-
graph (2) shall be eligible to receive any grant from
funds appropriated pursuant to section 396.
‘‘(b) SALE OF OVERLAPPING STATION.—
‘‘(1) SALE PERMITTED.—Upon application by
the licensee of 2 or more overlapping public tele-
vision stations, the Commission shall approve the as-
signment of one of the licenses of such licensee for
a television station to another person or entity, and
shall permit such person or entity to operate such
station as a commercial television station, if—
‘‘(A) the licensee assigning such license
will dedicate all compensation received for such
assignment to the support of the local public
telecommunications services on the retained sta-
tion; and
‘‘(B) the compensation provided to the li-
censee for assigning such license fairly reflects
the value of the license and related facilities.
‘‘(2) INELIGIBILITY FOR GRANTS.—No public
television station operated by the licensee making an
assignment of a license under paragraph (1) shall be
eligible to receive a grant from funds appropriated
pursuant to section 396.
‘‘(c) DEFINITIONS.—For purposes of this section:
‘‘(1) OVERLAPPING STATION.—Two public tele-
vision stations are ‘overlapping stations’ if the Grade
A contour of one of such stations reaches more than
50 percent of the Grade A contour of the other such
station in the same television market.
‘‘(2) TELEVISION
MARKET.—The term ‘tele-
vision market’ has the meaning provided in section
76.55(e)(1) of the Commission’s rules (47 C.F.R.
76.55(e)(1)).’’.
Subtitle B—Corporation for Public
Broadcasting Financial Flexibility
SEC. 121. RELAXATION AND REDUCTION OF STATUTORY
MANDATES.
(a) PURPOSES.—Subsection (a) of section 396 of the
Communications Act of 1934 (47 U.S.C. 396(a)) is
amended to read as follows:
‘‘(a) PURPOSES.—The purposes of the Corporation
for Public Broadcasting shall be—
‘‘(1) to promote the delivery of local public tele-
communications services which advance education,
support culture, and foster citizenship for all Ameri-
cans;
‘‘(2) to promote efficiency and effectiveness in
the provision of public broadcasting services,
through technological advances and, where appro-
priate, through mergers, consolidations, and joint
operating agreements;
‘‘(3) to promote and support program produc-
tion;
‘‘(4) to preserve and enhance the geographic
and cultural diversity of public broadcasting pro-
grams and services;
‘‘(5) to support public broadcasting services for
rural and underserved areas and audiences;
‘‘(6) to create and deliver creative and diverse
programming and services of high quality and excel-
lence;
‘‘(7) to preserve and protect their editorial in-
tegrity and independence; and
‘‘(8) to pioneer new telecommunications tech-
nologies and to adapt those technologies for edu-
cational and public service purposes.’’.
(b) AUTHORIZED ACTIVITIES.—Subsection (g) of
such section is amended to read as follows:
‘‘(g) The Corporation is authorized to take such ac-
tions consistent with the District of Columbia Nonprofit
Corporation Act (D.C. Code, sec. 29–1001 et seq.) as it
may, in the exercise of its business judgment, determine
to be necessary to carry out the purposes set forth in sub-
section (a) of this section. To carry out such purposes and
to take such actions, the Corporation shall have the usual
powers conferred on a nonprofit corporation by such
Act.’’.
(c) FINANCING.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
Section 396(k)(1) of the Communications Act of
1934 (47 U.S.C. 396(k)(1)) is amended—
(A) by striking subparagraph (B) and in-
serting the following:
‘‘(B) There are authorized to be appropriated to the
Fund $250,000,000 for each of the fiscal years 1998,
1999, and 2000.’’;
(B) by striking subparagraphs (C) and
(E);
(C) by redesignating subparagraph (D) as
subparagraph (C); and
(D) by inserting after such subparagraph
(C) the following new subparagraph:
‘‘(D) The Secretary of the Treasury shall make the
appropriated funds under this subsection available on a
fiscal year basis.’’.
(d) ALLOCATION
OF
APPROPRIATIONS.—Section
396(k) of such Act is further amended by striking para-
graphs (2) through (10) and inserting the following:
‘‘(2) BUDGET FOR ALLOCATION.—During the
transition period, the Corporation shall establish an
annual budget for use in allocating amounts from
the Fund. Of the amounts appropriated into the
Fund available for allocation for any fiscal year dur-
ing the transition period—
‘‘(A) not more than 5 percent of all the
amounts appropriated into the Fund available
for allocation for any fiscal year shall be avail-
able for administrative expenses;
‘‘(B) 75 percent of the remainder (after al-
locations are made under subparagraph (A)
shall be allocated in direct grants to public tele-
vision stations for the provision of public tele-
vision broadcasting; and
‘‘(C) 25 percent of such remainder shall be
allocated in direct grants to public radio sta-
tions for the provision of public radio broad-
casting.
‘‘(3) 
CONDITIONS
ON
ALLOCATIONS
PER-
MITTED.—The Corporation shall have the authority
to establish requirements, guidelines, and limitations
with respect to the use of Federal funds by public
broadcasting stations.
‘‘(4) PUBLIC
ACCOUNTABILITY
OF
RECIPI-
ENTS.—During the transition period, funds may not
be distributed pursuant to this subsection to the
Public Broadcasting Service or National Public
Radio (or any successor organization), or to the li-
censee or permittee of any public broadcast station,
unless the governing body of any such organization,
any committee of such governing body, or any advi-
sory body of any such organization, holds open meet-
ings preceded by reasonable notice to the public. All
persons shall be permitted to attend any meeting of
the board, or of any such committee or body, and no
person shall be required, as a condition to attend-
ance at any such meeting, to register such person’s
name or to provide any other information. Nothing
contained in this paragraph shall be construed to
prevent any such board, committee, or body from
holding closed sessions to consider matters relating
to individual employees, proprietary information, liti-
gation and other matters requiring the confidential
advice of counsel, commercial or financial informa-
tion obtained from a person on a privileged or con-
fidential basis, or the purchase of property or serv-
ices whenever the premature exposure of such pur-
chase would compromise the business interests of
any such organization. If any such meeting is closed
pursuant to the provisions of this paragraph, the or-
ganization involved shall thereafter (within a reason-
able period of time) make available to the public a
written statement containing an explanation of the
reasons for closing the meeting.
‘‘(5) PUBLIC ACCESS TO REPORTS.—During the
transition period, funds may not be distributed pur-
suant to this subsection to any public telecommuni-
cations entity that does not maintain for public ex-
amination copies of the annual financial and audit
reports, or other information regarding finances,
submitted to the Corporation.
‘‘(6) ONE-STATION-TO-A-MARKET
SUPPORT.—
During the transition period, the Corporation shall
ensure that—
‘‘(A) in communities in which there is a
substantial overlap in the service areas of public
television stations, the total funds made avail-
able to those stations are not more than would
be provided if such areas were served by a sin-
gle station; and
‘‘(B) in communities in which there is a
substantial overlap in the service areas of public
radio station, the total funds made available to
those stations are not more than would be pro-
vided if such areas were served by a single sta-
tion, unless such stations serve significantly dif-
ferent listening audiences, using distinct for-
mats and providing a high proportion of locally
originated programming.
‘‘(7) RATES OF PAY.—During the transition pe-
riod, funds may not be distributed pursuant to this
subsection to the Public Broadcasting Service or Na-
tional Public Radio (or any successor organization)
unless assurances are provided to the Corporation
that no officer or employee of the Public Broadcast-
ing Service or National Public Radio (or any succes-
sor organization), as the case may be, will be com-
pensated at an annual rate of pay which exceeds the
rate of basic pay in effect from time to time for level
I of the Executive Schedule under section 5312 of
title 5, United States Code, and unless further as-
surances are provided to the Corporation that no of-
ficer or employee of such an entity will be loaned
money by that entity on an interest-free basis.
‘‘(8) SATELLITE INTERCONNECTION FUND.—
‘‘(A) There is hereby established in the
Treasury a fund which shall be known as the
Public Broadcasting Satellite Interconnection
Fund (hereinafter in this subsection referred to
as the ‘Satellite Interconnection Fund’), to be
administered by the Secretary of the Treasury.
‘‘(B) By December 31, 1996, the Public
Broadcasting Service and National Public
Radio shall prepare a final report for Congress
on the status of the Satellite Interconnection
Fund.
‘‘(9) POST-TRANSITION DISCRETION.—The pro-
visions of this subsection shall cease to be effective
upon the expiration of the transition period. There-
after, the Corporation may make funding and fi-
nancing decisions, and place requirements on licens-
ees, permittees and other public broadcasting enti-
ties, in the exercise of its business judgment in con-
sultation with public television and radio licensees.’’.
TITLE 
II—PRIVATIZATION 
OF
THE CORPORATION FOR PUB-
LIC BROADCASTING
SEC. 201. CONVERSION OF CORPORATION.
(a) CONVERSION OF BOARD TO PRIVATE APPOINT-
MENT PROCEDURES.—Section 396(c) of the Communica-
tions Act of 1934 is amended to read as follows:
‘‘Board of Directors
‘‘(c)(1) The Corporation for Public Broadcasting
shall have a Board of Directors (hereinafter in this section
referred to as the ‘Board’). Until the expiration of the
transition period, the Board shall consist of 9 members
appointed by the President, no more than 6 of whom may
be members of the same political party.
‘‘(2) Members of the Board appointed after the date
of enactment of the Public Broadcasting Self-Sufficiency
Act shall be selected by the President from a list of can-
didates nominated by the selection committee convened
under paragraph (3). The President may request the selec-
tion committee to nominate additional candidates. Such
candidates shall be selected by the selection committee and
the President on the basis of their qualifications and ex-
pertise in one or more of the following fields:
‘‘(A) Investment management.
‘‘(B) Corporate finance.
‘‘(C) Telecommunications.
‘‘(D) Education.
‘‘(E) Public broadcasting.
‘‘(3) Upon the occurrence of any vacancy in the
Board prior to the expiration of the transition period, a
selection committee is established to nominate candidates
for such vacancy. The selection committee shall be com-
posed of the majority and minority leaders of the Senate
and the Speaker and minority leader of the House of Rep-
resentatives. The selection committee shall consult with
representatives of public broadcast station licensee prior
to nominating any candidates.
‘‘(4) After the expiration of the transition period,
members of the Board shall be appointed in accordance
with the bylaws of the Corporation. The terms of all mem-
bers appointed pursuant to this subsection shall expire
upon the expiration of the transition period, except as oth-
erwise provided in such bylaws as in effect on that date.
‘‘(5) Any vacancy in the Board shall not affect its
power.’’.
(e) TERMINATION OF PROVISIONS.—Section 396 of
such Act is further amended by adding at the end the fol-
lowing new subsection:
‘‘Termination of Provisions
‘‘(n) Effective at the end of the transition period, the
following provisions of this section shall cease to be effec-
tive: subsections (d), (e), (h), (i), (l), and (m).
SEC. 202. ESTABLISHMENT OF TRUST FOR PUBLIC BROAD-
CASTING.
(a) ESTABLISHMENT.—Subpart D of part IV of title
III of the Communications Act of 1934 is amended by in-
serting after section 396 (47 U.S.C. 396) the following
new section:
‘‘SEC. 396A. TRUST FOR PUBLIC BROADCASTING.
‘‘(a) PURPOSE.—It is the purpose of this section—
‘‘(1) to provide for the establishment of a trust
fund by the Corporation to provide ongoing support
for public broadcasting after the cessation of annual
appropriations under section 396(k);
‘‘(2) to prohibit expenditures from the corpus of
such trust fund; and
‘‘(3) to authorize the appropriations to the
trust fund of the proceeds of certain competitive bid-
ding procedures, to form the corpus of the trust
fund.
‘‘(b) REQUIREMENTS.—The Corporation shall, in ac-
cordance with the laws of the District of Columbia, estab-
lish a trust fund for the investment and management of
funds made available under this section. The instruments
governing such trust fund shall provide—
‘‘(1) that no part of the trust fund corpus may
be expended for the operations of the Corporation or
otherwise in furtherance of the purposes of the Cor-
poration;
‘‘(2) such trust fund corpus shall be invested in
such manner as the Board of the Corporation deter-
mines to be reasonable and prudent; and
‘‘(3) the trust fund income shall be available in
accordance with the bylaws of the Corporation—
‘‘(A) to carry out the purposes of section
396;
‘‘(B) to pay the operational and adminis-
trative expenses of the Corporation;
‘‘(C) to pay for public broadcasting system
support; and
‘‘(D) to provide direct grants to public
broadcasting stations.
‘‘(c) ALLOCATION REQUIREMENTS.—
‘‘(1) ONE-STATION-TO-A-MARKET
SUPPORT.—
The Corporation shall ensure that—
‘‘(A) in communities in which there is a
substantial overlap in the service areas of public
television stations, the total funds made avail-
able through direct grants to those stations are
not more than would be provided if such areas
were served by a single station; and
‘‘(B) in communities in which there is a
substantial overlap in the service areas of public
radio station, the total funds made available
through direct grants to those stations are not
more than would be provided if such areas were
served by a single station, unless such stations
serve significantly different listening audiences,
using distinct formats and providing a high pro-
portion of locally originated programming.
‘‘(2) USE
TO
SUPPORT
PROGRAM
PRODUC-
TION.—The Corporation may expend up to 25 per-
cent of the income from trust for television and
radio program production.
‘‘(d) AUTHORITY TO AUCTION VACANT RESERVED
CHANNELS.—
‘‘(1) COMMISSION
ACTION
REQUIRED.—The
Commission shall allocate by means of competitive
bidding under section 309(j) the initial licenses and
construction permits for the use of such portions of
the electromagnetic spectrum as are, on the date of
the enactment of the Public Broadcasting Self-Suffi-
ciency Act, reserved for noncommercial education
television stations and as to which no application
has been accepted for filing by the Commission by
such date. In addition, the Commission shall allocate
by such means licenses and permits for stations re-
linquished under paragraph (5).
‘‘(2) BIDDING REQUIREMENTS.—The competi-
tive bidding required by paragraph (1) shall be com-
pleted not later than January 1, 1999. In conduct-
ing such competitive bidding, the Commission—
‘‘(A) 
shall, 
notwithstanding 
section
309(j)(4)(A), require lump sum payment of all
bids;
‘‘(B) 
shall, 
notwithstanding 
section
309(j)(4)(D), not prescribe regulations granting
bidding preferences that would reduce receipts
from the competitive bidding required by para-
graph (1) of this subsection;
‘‘(C) shall, prior to conducting such com-
petitive, make such adjustments to the commu-
nities of license of the stations to be allocated
as necessary, consistent with the avoidance of
harmful interference, to recover for the public
the full value of the spectrum resource being
made available; and
‘‘(D) shall allocate to winning bidders the
same rights to obtain an allocation of spectrum
for the provision of advanced television services
as is available to any incumbent television
broadcast station licensee.
‘‘(3) USE OF PROCEEDS; BIDDING CONTINGENT
ON APPROPRIATIONS.—The proceeds of any competi-
tive bidding conducted pursuant to this subsection,
not to exceed $1,000,000,000, are authorized to be
appropriated to the trust fund established by the
Corporation under this section. No competitive bid-
ding may be conducted with respect to the portions
of the electromagnetic spectrum described in para-
graph (1) unless the proceeds of such bidding are
appropriated to such trust fund.
‘‘(4) USE
OF
SPECTRUM.—The Commission
shall award commercial television broadcast licenses
to persons or entities that are successful bidders in
the competitive bidding required by paragraph (1).
‘‘(5) AUTHORITY TO COMPENSATE RELINQUISH-
ING LICENSEES.—The Commission may enter into
agreements with public broadcasting entities for the
purpose of making available additional stations for
allocation by competitive bidding under paragraph
(1). Such agreements may provide that a public
broadcasting entity that agrees to relinquish its sta-
tion license may obtain 50 percent of the proceeds
of the competitive bidding for the spectrum pre-
viously allocated to that station. Any such agreement
shall provide that any amounts provided to such en-
tity under this paragraph shall be used to support
public broadcasting or education.
‘‘(e) COMPLIANCE VERIFICATION.—Before making
any funds appropriated under subsection (d)(3) available
to the Corporation, the Secretary of the Treasury—
‘‘(1) shall verify that the Corporation has estab-
lished the trust fund in accordance with the require-
ments of this section;
‘‘(2) shall require the Corporation to agree that,
in the event of a substantial failure by the Corpora-
tion to carry out the purposes of section 396, the
corpus of the trust fund shall revert to the United
States;
‘‘(3) shall verify that the Corporation has
amended its bylaws to provide for the prudent ad-
ministration of the trust fund by the Corporation
after the expiration of the transition period; and
‘‘(4) may require such other information or
agreements as may be necessary to protect the Fed-
eral fiscal interest.
‘‘(f) ANNUAL REPORT.—The Corporation shall sub-
mit to the Congress an annual statement on the financial
condition of the trust fund.’’.
Æ
HR 2979 IH——2