Title: To protect local media, and for other purposes.
Policy area: Taxation

Summary:
This bill requires a federal executive agency to expend 50% of funds obligated by such agency for the advertising and underwriting activities of local media for the period beginning on the enactment of this bill, and ending on December 31, 2020. It also requires such agencies to expend 25% of such funds for the period beginning on or after January 1, 2021. At least 45% of agency advertising and underwriting activities funding must be expended equally between newspapers, television stations, and radio stations that are local media.
The bill (1) expands the payroll protection program to newspaper, radio, and Internet publishing businesses with not more than 500 employees; (2) allows a payroll tax credit for 30% of first-year newsroom wages paid by a local media company; and (3) treats the publication (including electronic publication) of written news articles by an independent or community-based publication as a tax-exempt purpose.
The bill expresses the sense of Congress that the Corporation for Public Broadcasting must provide programming to preschool, elementary, and secondary school children that promotes digital literacy during the period that such children cannot attend school due to the COVID-19 (i.e., coronavirus disease 2019) pandemic.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6913 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 6913

            To protect local media, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2020

   Mr. Ryan (for himself, Ms. Norton, Mr. Huffman, Ms. Barragan, Mr. 
Suozzi, Mr. Gonzalez of Texas, Mrs. Luria, Ms. Pingree, Mr. Cartwright, 
 Mr. Soto, Mr. Connolly, Mr. Raskin, Mr. Crist, Mr. Evans, Mr. Cohen, 
   Ms. Jackson Lee, Mr. Serrano, Ms. Johnson of Texas, Mr. Levin of 
 California, Mrs. Kirkpatrick, Ms. Kaptur, and Mr. Kilmer) introduced 
  the following bill; which was referred to the Committee on Ways and 
Means, and in addition to the Committees on Oversight and Reform, Small 
Business, Energy and Commerce, and Education and Labor, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
            To protect local media, and for other purposes.

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

SECTION 1. REQUIREMENT TO ADVERTISE WITH LOCAL MEDIA.

    (a) Requirement.--
            (1) In general.--Each executive agency shall expend with 
        local media--
                    (A) during the period that begins on the date of 
                the enactment of this section and ends on December 31, 
                2020, 50 percent of the funds obligated by the agency 
                for advertising activities and underwriting activities 
                during such period; and
                    (B) during any period that begins on or after 
                January 1, 2021, 25 percent of the funds obligated by 
                the agency for advertising activities and underwriting 
                activities during the applicable period.
            (2) Limitation.--Of the funds required to be expended under 
        paragraph (1), at least 45 percent of such funds shall be 
        expended equally between newspapers, television stations, and 
        radio stations that are local media.
    (b) Use of Funds.--Each executive agency shall--
            (1) expend the funds required to be expended under 
        subsection (a) in a nonpartisan and nonideological manner; and
            (2) ensure that the funds are expended with local media on 
        a geographically equitable basis.
    (c) Report to Congress.--Not later than 180 days after the date of 
the enactment of this section, and each year thereafter, an executive 
agency shall submit a report to Congress (and any committee of 
jurisdiction) on, with respect to the prior year, funds expended by the 
agency for advertising activities and underwriting activities, 
including funds expended by the agency with local media in accordance 
with subsection (a).
    (d) Definitions.--In this section:
            (1) Executive agency.--The term ``executive agency'' has 
        the meaning given that term in section 102 of title 31, United 
        States Code.
            (2) Public broadcast station.--The term ``public broadcast 
        station'' has the meaning given the term under section 397 of 
        the Communications Act of 1934 (47 U.S.C. 397).
            (3) Underwriting activity.--The term ``underwriting 
        activity'' means a payment by an executive agency to a public 
        broadcast station, or to support the production of programming 
        to be broadcast on such a station, in exchange for or with the 
        expectation of an announcement on the station receiving such 
        payment or a station broadcasting such programming that 
        acknowledges the financial support by such agency of such 
        station or programming.

SEC. 2. SMALL BUSINESS ASSISTANCE.

    (a) Paycheck Protection Program.--Section 7(a)(36)(D)(iv) of the 
Small Business Act (15 U.S.C. 636(a)(36)(D)(iv)) is amended--
            (1) in subclause (II), by striking ``and'' at the end;
            (2) in subclause (III), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subclause:
                                    ``(IV) any business concern with 
                                not more than 500 employees that, as of 
                                the date on which the covered loan is 
                                disbursed, is assigned a North American 
                                Industry Classification System code of 
                                511110, 515111, 515112, or 519130.''.
    (b) Assistance.--The Commission shall supply local media who 
qualify for a loan under section 7(a)(36) of the Small Business Act (15 
U.S.C. 636(a)(36)), or any other loan administered by the Small 
Business Administration, any information as may be necessary to connect 
such local media with the Small Business Administration.

SEC. 3. EMERGENCY JOBS FOR JOURNALISM TAX CREDIT.

    (a) In General.--In the case of an employer which is a qualified 
local media company, there shall be allowed as a credit against the tax 
imposed by section 3111(a) of the Internal Revenue Code of 1986 for 
each calendar quarter an amount equal to 30 percent of the qualified 
first-year newsroom wages paid by such employer with respect to such 
calendar quarter.
    (b) Limitations and Refundability.--
            (1) Dollar limitation per employee.--The aggregate credits 
        allowed under subsection (a) (for all calendar quarters) shall 
        not exceed $20,000 with respect to any employee.
            (2) Credit limited to certain employment taxes.--The credit 
        allowed by subsection (a) with respect to any calendar quarter 
        shall not exceed the tax imposed by section 3111(a) of such 
        Code for such calendar quarter (reduced by any other credits 
        enacted before the date of the enactment of this Act which are 
        allowed against such tax for such quarter) on the wages paid 
        with respect to the employment of all employees of the 
        employer.
            (3) Refundability of excess credit.--
                    (A) In general.--If the amount of the credit under 
                subsection (a) exceeds the limitation of paragraph (2) 
                for any calendar quarter, such excess shall be treated 
                as an overpayment that shall be refunded under sections 
                6402(a) and 6413(b) of such Code.
                    (B) Treatment of payments.--For purposes of section 
                1324 of title 31, United States Code, any amounts due 
                to an employer under this paragraph shall be treated in 
                the same manner as a refund due from a credit provision 
                referred to in subsection (b)(2) of such section.
    (c) Qualified First-Year Wages.--For purposes of this section, the 
term ``qualified first-year wages'' means, with respect to any 
employee, wages (as defined in section 51(c) of the Internal Revenue 
Code of 1986, without regard to paragraph (4) thereof) attributable to 
service rendered as such an employee during the 1-year period beginning 
with the day the individual begins work for the employer, but only if 
such wages are for services provided in the news division of such 
employer, including service as a reporter, staff writer, news producer, 
or engineer.
    (d) Qualified Local Media Company.--For purposes of this section, 
the term ``qualified local media company'' means any employer which is 
local media.
    (e) Certain Individuals Ineligible.--
            (1) Related individuals.--Rules similar to the rules of 
        section 51(i)(1) of the Internal Revenue Code of 1986 shall 
        apply for purposes of this section.
            (2) Nonqualifying rehires.--No wages shall be taken into 
        account under subsection (a) with respect to any employee if 
        such individual had been employed by the employer at any time 
        prior to the hiring date of such employee and after the date of 
        the introduction of this Act.
    (f) Application of Certain Other Rules.--Except as otherwise 
provided by the Secretary of the Treasury (or the Secretary's 
delegate), rules similar to the rules of subsections (j) and (k) of 
section 51 and section 52 shall apply for purposes of this section.
    (g) Special Rules.--
            (1) Denial of double benefit.--For purposes of chapter 1 of 
        such Code, the gross income of the employer, for the taxable 
        year which includes the last day of any calendar quarter with 
        respect to which a credit is allowed under this section, shall 
        be increased by the amount of such credit. Any wages taken into 
        account in determining the credit allowed under this section 
        shall not be taken into account for purposes of determining any 
        other credit allowed against any tax imposed under the Internal 
        Revenue Code of 1986.
            (2) Election not to have section apply.--This section shall 
        not apply with respect to any employer for any calendar quarter 
        if such employer elects (at such time and in such manner as the 
        Secretary of the Treasury (or the Secretary's delegate) may 
        prescribe) not to have this section apply.
            (3) Certain terms.--Any term used in this section which is 
        also used in chapter 21 of such Code (and is not otherwise 
        defined for purposes of this section) shall have the same 
        meaning as when used in such chapter.
    (h) Regulations.--The Secretary of the Treasury (or the Secretary's 
delegate) shall prescribe such regulations or other guidance as may be 
necessary to carry out the purposes of this section, including--
            (1) regulations or other guidance to prevent the avoidance 
        of the purposes of the limitations under this section;
            (2) regulations or other guidance to minimize compliance 
        and record-keeping burdens under this section;
            (3) regulations or other guidance providing for waiver of 
        penalties for failure to deposit amounts in anticipation of the 
        allowance of the credit allowed under this section; and
            (4) regulations or other guidance for recapturing the 
        benefit of credits determined under this section in cases where 
        there is a subsequent adjustment to the credit determined under 
        subsection (a).
    (i) Application of Section.--This section shall apply only to wages 
paid during calendar quarters ending after the date of the enactment of 
this Act and beginning before January 1, 2022.
    (j) Transfers to Federal Old-Age and Survivors Insurance Trust 
Fund.--There are hereby appropriated to the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the Social Security Act (42 
U.S.C. 401) amounts equal to the reduction in revenues to the Treasury 
by reason of this section (without regard to this subsection). Amounts 
appropriated by the preceding sentence shall be transferred from the 
general fund at such times and in such manner as to replicate to the 
extent possible the transfers which would have occurred to such Trust 
Fund had this section not been enacted.

SEC. 4. PUBLICATION OF WRITTEN NEWS ARTICLES AS TAX-EXEMPT PURPOSE.

    (a) In General.--Section 501(c)(3) of the Internal Revenue Code of 
1986 is amended by inserting ``or for the publication (including 
electronic publication) of written news articles by an independent or 
community-based written news and electronic publication,'' after 
``animals,''.
    (b) Income From Advertising Not Unrelated Business Taxable 
Income.--Section 512(a) of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new paragraph:
            ``(8) Special rule applicable to news organizations 
        described in section 501(c)(3).--In the case of an independent 
        or community-based written news and electronic publication 
        which is described in section 501(c)(3) and exempt from tax 
        under section 501(a), the term `unrelated business taxable 
        income' does not include any amount attributable to payments 
        for advertisements in news publications.''.
    (c) Expedited Application.--Section 508 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(g) Timing for Approval of Applications by News Organizations.--
In the case of an independent or community-based written news and 
electronic publication which is described in section 501(c)(3), the 
Secretary shall approve or deny such organization for recognition of 
501(c)(3) status not later than the date that is 12 months after notice 
is given under subsection (a).''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years beginning after the date of the 
enactment of this Act.

SEC. 5. SENSE OF CONGRESS REGARDING THE READY TO LEARN PROGRAM.

    It is the sense of Congress that the Corporation for Public 
Broadcasting should, to the extent possible under the agreement entered 
by the Corporation for Public Broadcasting and the Department of 
Education under section 4643 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7293), provide programming to preschool, 
elementary, and secondary school children that promotes digital 
literacy during the period in which such children are unable to attend 
school due to the COVID-19 pandemic.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (2) Local media.--The term ``local media'' means a media 
        vehicle (such as a newspaper, electronic publication, radio 
        station, or television station) that--
                    (A) primarily serves the communications needs of 
                regional or local communities; and
                    (B) focuses on localized issues and events.
                                 <all>