I 
108TH CONGRESS 
1ST SESSION H. R. 1763
To amend the Communications Act of 1934 to facilitate an increase in 
programming and content on radio that is locally and independently 
produced, to facilitate competition in radio programming, radio adver-
tising, and concerts, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 10, 2003
Mr. WEINER introduced the following bill; which was referred to the 
Committee on Energy and Commerce 
A BILL 
To amend the Communications Act of 1934 to facilitate 
an increase in programming and content on radio that 
is locally and independently produced, to facilitate com-
petition in radio programming, radio advertising, and 
concerts, 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 ‘‘Competition in Radio 
and Concert Industries Act of 2003’’.
SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) Pursuant to the Telecommunications Act of 
1996 (Public Law 104–104), the Federal Commu-
nications Commission eliminated national ownership 
rules, and revised local ownership rules, for radio 
broadcast stations. 
(2) This deregulation of ownership rules has 
materially altered the radio broadcast industry and 
resulted in a concentration of ownership of radio 
stations and a corresponding reduction in localism. 
The number of radio station owners decreased from 
5,100 in 1996 to 3,800 in 2001, a decrease of 25 
percent. 
(3) Segments of the radio, concert, and concert 
promotion industries have also become vertically in-
tegrated. In some cases, radio station owners, and 
concert promoters have common ownership, as well 
as exclusive agreements to manage concert venues. 
As a result, these radio station owners have the in-
centive and ability to favor the musical artists and 
groups they promote. 
(4) This could make it more difficult for non-
affiliated concert promoters to secure air time, for 
nonaffiliated musical artists or groups to secure air
time, and for nonaffiliated radio stations to secure 
access to musical artists or groups. 
(5) According to a number of recent studies, in 
the rapid consolidation of the radio, concert pro-
motion, and concert venue industries in the 5-year 
period following the enactment of the Telecommuni-
cations Act of 1996, concert ticket prices have in-
creased by more than 50 percent more than such 
prices had increased in any previous 5 year-period. 
(6) According to some estimates, from l991 to 
1996, the average concert ticket price increased by 
approximately 21 percent, compared to an increase 
in the Consumer Price Index of about 15 percent. 
From 1996 to 2001, the average concert ticket price 
increased by more than 61 percent, while the Con-
sumer Price Index increased by 13 percent. 
(7) There is a substantial public interest in pro-
moting the values embraced by the first amendment 
to the Constitution, and the public interest, conven-
ience, and necessity, by increasing the presence of 
independently-owned and locally-produced content on 
radio. 
(8) There is a substantial public interest in pro-
moting the value embraced by the first amendment
to the Constitution by strengthening the diversity of 
voices provided through media such as radio. 
(9) Pursuant to its authority and responsibility 
to protect the public interest under the Communica-
tions Act of 1934, the Commission has sought to 
promote diversity and competition in radio broad-
casting. 
(10) The promotion of independently-owned and 
locally-produced content in radio not only addresses 
the primary objective of the Commission to guar-
antee adherence to the first amendment to the Con-
stitution, it also increases competition of audio in 
the provision of audio programming, in radio adver-
tising, and in concert venue and concert promotion. 
(11) The concentration of ownership of radio 
stations and a corresponding reduction in localism 
following the enactment of the Telecommunications 
Act of 1996 has exceeded that intended by Congress 
in enacting that Act. 
(12) In 1995, the top 50 radio groups owned 
8.6 percent of the total number of radio stations. By 
2000 they owned 27.5 percent of the total number 
of radio stations. 
(13) In 1995, the top 50 radio groups ac-
counted for 43.6 percent of the total revenues going
to all radio stations. By 2000 that percentage had 
increased to 62.5 percent.
(14) The top 10 groups account for almost 50 
percent of all radio station industry revenues, while 
owning 17.6 percent of all commercial radio stations.
(15) This consolidation has also caused some 
radio station groups to collect alternative sources of 
income, including establishing exclusive agreements 
with independent promoters, establishing fees for 
play list monitoring, and limiting radio promotion of 
concert tours to musical artists and groups playing 
at venues owned by such groups. 
(16) These practices, when coupled with the in-
creased concentration of the ownership of radio sta-
tions, have the potential to reduce the diversity of 
music and other material made available to the 
American public over radio as stations make pro-
gramming decisions for reasons other than the li-
censee’s bona fide determination whether the mate-
rial serves the public interest. 
(17) Current Commission rules prohibiting pay-
ola predate the enactment of the Telecommuni-
cations Act of 1996, and the evolution of new pro-
motional practices, and do not directly address the 
applicability of sections 317 and 507 of the Commu-
nications Act of 1934 (47 U.S.C. 317, 508) to such 
new promotional practices. As a result, radio sta-
tions engaging in such practices do not make any 
sponsorship identification announcements in connec-
tion with the broadcast of material which are the 
subject of such practices. 
(18) These types of practices are inconsistent 
with the public interest and with the policies enun-
ciated in sections 317 and 507 of the Communica-
tions Act of 1934. In order to assure compliance 
with these sections, the Commission should revise its 
rules implementing those sections to prohibit these 
practices and to facilitate the broadcast of diverse 
radio programs while assuring that legitimate pro-
motional activities can continue. 
(19) Promotion of the values embraced by the 
first amendment to the Constitution, and the 
strengthening of a diversity of voices provided 
through media, such as radio, is in the public inter-
est. 
(20) A broader diversity of voices through 
media sources such as radio promotes the right of 
the people under the first amendment to the Con-
stitution to receive a wide range of information.
(b) PURPOSE.—The purpose of this Act is to promote 
the values embraced by the first amendment to the Con-
stitution, and the public interest, convenience, and neces-
sity, by facilitating—
(1) better service by radio stations to the local 
communities they are licensed to serve, including an 
increase in the amount of radio programming and 
content that is produced by local and independent 
sources; 
(2) an increase in competition in radio pro-
gramming and content, radio advertising, concert 
venues, and concert promotion; and 
(3) more diversity in radio programming. 
SEC. 3. PROHIBITION ON USE OF RADIO TO REDUCE PUB-
LIC ACCESS TO DIVERSE RADIO AND CON-
CERT PROGRAMMING AND CONTENT. 
(a) REVOCATION
OF
LICENSE
FOR
HINDERING 
AVAILABILITY OF INDEPENDENT, LOCAL PROGRAMMING 
AND CONTENT.—Section 312(a) of the Communications 
Act of 1934 (47 U.S.C. 312(a)) is amended—
(1) in paragraph (6), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (7), by striking the period at 
the end and inserting a semicolon; and
(3) by adding at the end the following new 
paragraph: 
‘‘(8) for willful and repeated engagement in un-
fair methods of competition, unfair or deceptive acts 
or practices, or tying the use of entities owned by 
the licensee or permittee for the purpose of hin-
dering significantly, or preventing, the broadcast of 
programming or content, including any sound re-
cording by a musical artist, if such programming or 
content is produced or promoted by a person inde-
pendent of the licensee or permittee or the creator 
thereof is independent of the licensee or permittee; 
or’’. 
(b) REVOCATION
OF
LICENSE
FOR
HINDERING 
AVAILABILITY OF CONCERTS.—That section is further 
amended by adding at the end the following new para-
graph: 
‘‘(9) for conviction or final adjudication under 
an antitrust law or unfair trade practice law of a 
violation of such law regarding concert venues or 
concert promotion.’’. 
(c) PROHIBITION.—That section is further amended 
by adding at the end the following new subsection: 
‘‘(h) PROHIBITION ON HINDERING AVAILABILITY OF 
RADIO PROGRAMMING AND CONTENT AND CONCERTS.—
‘‘(1) PROHIBITION.—Under such regulations as 
the Commission shall prescribe, it shall be unlawful 
for any licensee or permittee to carry out an act for 
which revocation of a license or permit is authorized 
under paragraph (8) or (9) of subsection (a).
‘‘(2) PENALTIES.—A licensee or permittee that 
violates paragraph (1) shall be subject to such pen-
alties under title V as the Commission shall pre-
scribe in regulations. 
‘‘(3) CONSTRUCTION
WITH
LICENSE
REVOCA-
TION
AUTHORITY.—The penalties provided under 
paragraph (2) for an act described in paragraph (1) 
are in addition to any other action which the Com-
mission may take under subsection (a) with respect 
to such act.’’. 
(d) DEFINITIONS.—Subsection (f) of that section is 
amended by adding at the end the following new para-
graphs: 
‘‘(3) The term ‘antitrust law’ has the meaning 
given that term in subsection (a) of the first section 
of the Clayton Act (15 U.S.C. 12(a)). 
‘‘(4) The term ‘unfair trade practice law’ means 
the Federal Trade Commission Act (15 U.S.C. 41 et 
seq.) and include any State law similar to that 
Act.’’.
(e) REGULATIONS.—
(1) IN
GENERAL.—Not later than 180 days 
after the date of the enactment of this Act, the Fed-
eral Communications Commission shall prescribe 
regulations and implement the amendments to sec-
tion 312 of the Communications Act of 1934 made 
by this section. 
(2) CONSULTATION.—The Federal Communica-
tions Commission shall prescribe regulations under 
paragraph (1) in consultation with the Federal 
Trade Commission. 
(3) ELEMENTS.—The regulations under para-
graph (1) shall prohibit a licensee or permittee of a 
radio station, or affiliate thereof, that has an attrib-
utable interest (as determined under section 73.3555 
of title 47, Code of Federal Regulations) in a pro-
gramming entity or concert venue or concert pro-
motion service from—
(A) improperly influencing the decision of 
the entity or service, or any musician or other 
programming or content provider, to sell, or the 
price, terms, or conditions of sale of, satellite 
cable programming or content or satellite 
broadcast programming or content to any other
radio station or unaffiliated concert venue or 
concert promotion service; 
(B) improperly influencing the decision of 
any musician or other programming or content 
provider to sell, or the price, terms, or condi-
tions of sale of, any song, work, or sound re-
cording, programming, concert performance, or 
concert promotion service to any person or enti-
ty not affiliated with—
(i) the licensee or permittee; 
(ii) an affiliate of the licensee or per-
mittee; or 
(iii) an entity in which the licensee or 
permittee has an attributable interest; 
(C) discriminating against a musician or 
other programming or content provider that 
does not agree to enter into a contract or other 
arrangement with an entity affiliated with the 
licensee or permittee, or in which the licensee or 
permittee has an attributable interest, that of-
fers concert venue or concert promotion service; 
(D) requiring an exclusive contract or 
other arrangement with a musician or other 
programming or content provider that prevents 
other radio licensees or permittees, concert pro-
motion entities, or concert venues from obtain-
ing programming or content from the musician 
or other programming or content provider to 
the extent that such contract or other arrange-
ment—
(i) impairs, impedes, or prevents com-
petition in radio programming or content, 
concert venues, or concert promotion; 
(ii) impairs, impedes, or prevents di-
versity of programming or content in local 
radio markets; 
(iii) is unduly long in duration; or 
(iv) contains unreasonable renewal or 
extension provisions. 
(4) EXCLUSION FROM REQUIRED BIENNIAL RE-
VIEW.—Section 202(h) of the Telecommunications 
Act of 1996 (Public Law 104–104; 110 Stat. 111), 
relating to the biennial review by the Commission of 
its ownership rules, shall not apply with respect to 
the regulations prescribed under this section. 
SEC. 4. ENHANCED SCRUTINY OF FURTHER CONSOLIDA-
TION IN RADIO. 
(a) ENHANCED SCRUTINY.—
(1) IN GENERAL.—Section 309 of the Commu-
nications Act of 1934 (47 U.S.C. 309) is amended 
by adding at the end the following new subsection: 
‘‘(m) 
ADDITIONAL
REQUIREMENTS
REGARDING 
RADIO.—
‘‘(1) HEARING ON CERTAIN APPLICATIONS.—
The Commission shall designate for hearing any ap-
plication for the grant, transfer, assignment, or re-
newal of a license for a commercial radio station if 
approval of the application would result in the appli-
cant, or any of its stockholders, partners, members, 
officers, or directors, owning, operating, controlling, 
or having an attributable interest, whether directly 
or indirectly, in radio stations that have an aggre-
gate national audience reach, as determined in a 
manner comparable to the manner provided for tele-
vision stations under section 73.3555(e)(1) of title 
47, Code of Federal Regulations, exceeding 60 per-
cent. 
‘‘(2) SHOWING
AT
HEARING.—In addition to 
any other matters required to be shown under this 
section, an applicant referred to in paragraph (1) 
shall be required to show at a hearing under that 
paragraph that the applicant—
‘‘(A) with respect to all radio stations in 
which the applicant has an attributable interest 
at the time of application, does not—
‘‘(i) improperly influence the decision 
of any musician or other programming or 
content provider to sell, or the price, 
terms, or conditions of sale of, any song, 
work, or sound recording, programming, 
concert performance, or concert promotion 
service to any person or entity not affili-
ated with—
‘‘(I) the applicant; 
‘‘(II) an affiliate of the applicant; 
or 
‘‘(III) an entity in which the ap-
plicant has an attributable interest; 
‘‘(ii) discriminate against any musi-
cian or other programming or content pro-
vider that does not agree to enter into a 
contract or other arrangement with an en-
tity affiliated with the applicant, or in 
which the applicant has an attributable in-
terest, that offers concert venue or concert 
promotion service; or
‘‘(iii) require any exclusive contract or 
other arrangement with a musician or 
other programming or content provider 
that prevents other radio licensees or per-
mittees from obtaining programming or 
content from the musician or other pro-
gramming or content provider; and 
‘‘(B) with respect to the radio station cov-
ered by the application, has identified and will 
respond through appropriate programming or 
content to the problems, needs, and interests of 
the local market for such radio station.’’. 
(2) EFFECTIVE DATE.—Subsection (m) of sec-
tion 309 of the Communications Act of 1934, as 
added by paragraph (1), shall take effect on the date 
of the enactment of this Act, and shall apply with 
respect to applications described by such subsection 
that are pending with the Federal Communications 
Commission on or after that date, regardless of the 
number of AM or FM radio stations owned, oper-
ated, or controlled by the applicant concerned on 
that date. 
(b) LOCAL MARKET SHARE AND LOCAL MARKETING 
AGREEMENTS.—The Federal Communications Commis-
sion shall prescribe regulations to prohibit the transfer or
assignment to operate, or the use of, a local marketing 
agreement with respect to a commercial radio station if 
the transfer or assignment, or such agreement, will permit 
the applicant, or the brokers of such agreement, to own, 
operate, or have an attributable interest in commercial 
radio stations that have in aggregate, as of the date of 
application therefor—
(1) more than 35 percent of the audience share 
of the local market of such radio stations; or 
(2) more than 35 percent of the radio adver-
tising revenue in the local market of such radio sta-
tions. 
(c) LOCAL OWNERSHIP LIMITS.—
(1) PROHIBITION
ON
UPWARD
REVISION
OF 
LIMITS.—The Federal Communications Commission 
may not revise upward the limitations on multiple 
ownership of radio stations specified in section 
73.3555(a) of title 47, Code of Federal Regulations, 
as of the date of the enactment of this Act. 
(2) EXCLUSION FROM REQUIRED BIENNIAL RE-
VIEW.—Section 202(h) of the Telecommunications 
Act of 1996 (Public Law 104–104; 110 Stat. 111), 
relating to the biennial review by the Commission of 
its ownership rules, shall not apply with respect to
the limitations on multiple ownership of radio sta-
tions referred to in paragraph (1). 
SEC. 5. REVIEW OF USE OF PRIVATELY-CONTROLLED AUDI-
ENCE MEASUREMENT SYSTEMS FOR DETER-
MINATION OF LOCAL MARKETS OF RADIO 
STATIONS. 
(a) REVIEW REQUIRED.—Not later than one year 
after the date of the enactment of this Act, the Federal 
Communications Commission shall conduct a review of the 
advisability of its continuing to utilize privately-controlled 
audience measurement systems in order to determine the 
local markets of radio stations. 
(b) ELEMENT OF REVIEW.—As part of the review 
under subsection (a), the Commission shall determine 
whether or not the commercial radio industry utilizes prac-
tices to manipulate privately-controlled audience measure-
ment systems. 
(c) ACTION AFTER REVIEW.—If the Commission de-
termines as a result of the review under subsection (a) 
to continue to utilize privately-controlled audience meas-
urement systems in order to determine the local markets 
of radio stations, the Commission shall prescribe in regula-
tions measures to adapt to changes in audience measure-
ment under such systems in order to ensure that audience 
measurement by the Commission utilizing such systems is
consistent over time and is not subject to influence by the 
commercial radio industry or other private parties. 
(d) MEASUREMENT OF RURAL AREAS AND SMALL 
MARKETS.—The Commission shall prescribe in regula-
tions mechanisms to measure the audiences in rural mar-
kets, small markets, and other markets not covered by pri-
vately-controlled audience measurement systems.
SEC. 6. MODIFICATION OF ATTRIBUTABLE INTEREST IN 
RADIO 
STATIONS 
AND 
LIMITATIONS 
ON 
LOCAL MARKETING AGREEMENTS. 
(a) MODIFICATION OF ATTRIBUTABLE INTEREST.—
The Federal Communications Commission shall modify its 
rules under section 73.3555 of title 47, Code of Federal 
Regulations, in order to provide the following: 
(1) That a licensee or permittee of a commer-
cial AM or FM radio station shall be treated as hav-
ing an attributable interest in an entity that supplies 
more than 15 percent of the total weekly broadcast 
programming hours to another licensee or permittee 
of a commercial AM or FM radio station if—
(A) the licensee or permittee holds equity 
(including all stock, whether voting or non-
voting and whether common or preferred) and 
debt in such entity in excess of 33 percent of 
total asset value of such entity, as determined
by taking into account the aggregate value of 
all equity and debt of such entity; or
(B) the licensee or permittee holds an op-
tion to purchase or acquire such entity. 
(2) That a licensee or permittee of a commer-
cial AM or FM radio station shall be treated as hav-
ing an attributable interest in another licensee or 
permittee of a commercial AM or FM radio station 
if an individual or entity serving the licensee or per-
mittee serves such other licensee or permittee in an 
identical or similar capacity with regard to the provi-
sion of program content, selection of program con-
tent, or supervision of selection of program content 
for such other commercial AM or FM radio station. 
(b) REPORTS
ON SPECIAL RELATIONSHIP CON-
TRACTS.—
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the 
Commission shall prescribe in regulations require-
ments that each licensee or permittee of a radio sta-
tion submit to the Commission a report on each spe-
cial relationship contract between such licensee or 
permittee and another licensee or permittee of a 
radio station, or any person or entity having an 
attributional interest in such other licensee or per-
mittee, in the market served by such licensee or per-
mittee. 
(2) SPECIAL
RELATIONSHIP
CONTRACT
DE-
FINED.—In this subsection, the term ‘‘special rela-
tionship contract’’ means a contract, option, or other 
arrangement regarding management, programming, 
or sales, an actual or contingent financial arrange-
ment, ownership interest, investment, or loan be-
tween the parties to such contract, option, or other 
arrangement or their immediate families. 
(c) LIMITATION ON DURATION OF CERTAIN LOCAL 
MARKETING AGREEMENTS.—
(1) IN GENERAL.—No local marketing agree-
ment or other agreement entered into or renewed 
after the date of the enactment of this Act under 
which a licensee or permittee of a commercial radio 
station, or any person or entity having an 
attributional interest in the commercial radio sta-
tion, provides more than 15 percent of the program-
ming or content to another commercial radio station 
in the same market may have a term exceeding one 
year, including any period of renewal of such agree-
ment. 
(2) APPLICATION.—Paragraph (1) shall apply 
with respect to any agreement described by that
paragraph that is in effect on or after the date of 
the enactment of this Act. 
(d) EXCLUSION FROM REQUIRED BIENNIAL RE-
VIEW.—Section 202(h) of the Telecommunications Act of 
1996 (Public Law 104–104; 110 Stat. 111), relating to 
the biennial review by the Commission of its ownership 
rules, shall not apply with respect to any rules or require-
ments established by or under this section. 
SEC. 7. USE OF CONTROL OVER BROADCAST MATTER BY A 
RADIO STATION TO EXTRACT OR RECEIVE 
MONEY OR ANY OTHER VALUABLE CONSID-
ERATION. 
Not later than one year after the date of the enact-
ment of this Act, the Federal Communications Commis-
sion shall modify its regulations under sections 317 and 
507 of the Communications Act of 1934 (47 U.S.C. 317 
and 508), in order to prohibit the licensee of any radio 
station, including any parent, subsidiary, or affiliated enti-
ty of such licensee, from using its control over any matter 
broadcast by such licensee to extract or receive money or 
any other consideration, whether directly or indirectly, 
from a record company, artist, concert promoter, or other 
entity or an agent or representative thereof.
SEC. 8. LIMITATION ON SUSPENSION OR WAIVER OF 
RULES. 
(a) LIMITATION.—The Federal Communications 
Commission may suspend or waive a rule or regulation 
prescribed under this Act, or implementing a provision of 
this Act, only if the Commission determines that there is 
a compelling justification to suspend or waive the rule or 
regulation. 
(b) TREATMENT OF COURT DECISIONS.—The deci-
sion of a court to stay, reverse, or negate a rule or regula-
tion of the Commission referred to in subsection (a), if 
not final or if stayed on appeal, does not constitute good 
cause for purposes of that subsection. 
SEC. 9. ANNUAL REPORTS. 
Not later than January 31 each year, the Federal 
Communications Commission shall submit to Congress a 
report on the compliance of the commercial radio industry 
during the preceding year with prohibitions on sponsorship 
identification, payola, plugola, national and local owner-
ship limitations, local marketing agreements, and 
attributional interest rules, including practices of the in-
dustry that have the effect of circumventing such prohibi-
tions.
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