Public Telecommunications Financing Act
PL 95-567 (H.R.12605), enacted 11/02/1978

PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2405 
Public Law 95-567 
95th Congress 
An Act 
To amend the Communications Act of 1934 to extend and improve the provisions 
Nov. 2, 1978 
of such Act relating to long-term financing for the Corporation for Public 
[H.R. 12605] 
Broadcasting and relating to certain grant programs for public telecommuni-
cations, and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That this Act may Public 
be cited as the "Public Telecommunications Financing Act of 1978". Telecommunications 
Financing Act of 
TITLE I—CONSTRUCTION AND PLANNING OF 
l?^i?cr^o 
. 
•^ . ^ i - . - - . - -^r^^-^ 
^ 
47 use 609 note. 
FACILITIES 
DECLARATION OF PURPOSE 
SEC. 101. Section 390 of the Communications Act of 1934 is amended 47 USC 390. 
to read as follows: 
"DECLARATION or PURPOSE 
"SEC. 390. The purpose of this subpart is to assist, through matching 
grants, in the planning and construction of public telecommunications 
facilities in order to achieve the following objectives: (1) extend 
delivery of public telecommunications services to as many citizens of 
the United States as possible by the most efficient and economical 
means, including the use of broadcast and nonbroadcast technologies; 
(2) increase public telecommunications services and facilities avail-
able to, operated by, and owned by minorities and women; and (3) 
strengthen the capability of existing public television and radio sta-
tions to provide public telecommunications services to the public". 
AUTHORIZATION OP APPROPRIATIONS 
SEC. 102. Section 391 of the Communications Act of 1934 is amended 47 USC 391. 
to read as follows: 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 391. There are authorized to be appropriated $40,000,000 for 
each of the fiscal years 1979,1980, and 1981, to be used by the Secretary 
of Commerce to assist in the planning and construction of public tele-
communications facilities as provided in this subpart. Sums appro-
priated under this subpart for any fiscal year shall remain available 
until expended for payment of grants for projects for which applica-
tions approved by the Secretary pursuant to this subpart have been 
submitted within such fiscal year. Sums appropriated under this 
subpart may be used by the Secretary to cover the cost of administer-
ing the provisions of this subpart.". 
CONSTRUCTION AND PLANNING 
SEC. 103. (a) Section 392 of the Communications Act of 1934 is 47 USC 392. 
amended to read as follows: 
92 STAT. 2406 
PUBLIC LAW 95-567—NOV. 2, 1978 
"GRANTS FOR CONSTRUCTION AND PLANNING 
"SEC. 392. (a) For each project for the construction of public tele-
communications facilities there shall be submitted to the Secretary 
an application for a grant containing such information with respect 
to such project as the Secretary may require, including the total cost 
' ' 
- 
of such project, the amount of the grant requested for such project, 
i '' 
and a 5-year plan outlining the applicant's projected facilities require-
ments and the projected costs of such facilities requirements. Each 
applicant shall also provide assurances satisfactory to the Secretary 
that— 
"(1) the applicant is (A) a public broadcast station; (B) a 
, ., 
, 
noncommercial telecommunications entity; (C) a system of public 
, 
, . . , . ' 
telecommunications entities; (D) a nonprofit foundation, corpo-
ration, institution, or association organized primarily for educa-
<
: 
• ' - 
tional or cultural purposes; or (E) a State or local government 
(or any agency thereof), or a political or special purpose sub-
division of a State; 
"(2) the operation of such public telecommunications facilities 
f <
-
; IH;-*' 
will be under the control of the applicant; 
"(3) necessary funds to construct, operate, and maintain such 
public telecommunications facilities will be available when 
needed; 
"(4) such public telecommunications facilities will be used 
only for the provision of public telecommunications services; 
"(5) the applicant has participated in comprehensive planning 
for such public telecommunications facilities in the area which 
the applicant proposes to serve, and such planning has included 
an evaluation of alternate technologies and coordination with 
State educational television and radio agencies, as appropriate; 
and 
"(6) the applicant will make the most efficient use of the grant. 
"(b) Upon approving any application under this section with 
respect to any project for the construction of public telecommunica-
tions facilities, the Secretary shall make a grant to the applicant 
in an amount determined by the Secretary, except that such amount 
"v;. > r'• 
shall not exceed 75 percent of the amount determined by the Secretary 
to be the reasonable and necessary cost of such project. 
"(c) The Secretary may provide such fimds as the Secretary deems 
necessary for the planning of any project for which construction funds 
may be obtained under this section. An applicant for a planning grant 
shall provide such information with respect to such project as the 
Secretary may require and shall provide assurances satisfactory to 
the Secretary that the applicant meets the eligible requirements of 
subsection (a) to receive construction assistance. 
"(d) Any studies conducted by or for any grant recipient under 
this section shall be provided to the Secretary, if such studies are 
conducted through the use of funds received under this section. 
Rules and 
"(e) The Secretary shall establish such rules and regulations as 
regulations. 
may be necessary to carry out this subpart, including rules and regu-
lations relating to the order of priority in approving applications for 
construction projects and relating to determining the amount of each 
grant for such projects. 
Post, p. 2408. 
"(f) In establishing criteria for grants pursuant to section 393 and 
in establishing procedures relating to the order of priority estab-
lished in subsection (e) in approving applications for grants, the 
Secretary shall give special consideration to applications which would 
increase minority and women's ownership of, operation of, and par-
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2407 
ticipation in public telecommunications entities. The Secretary shall 
take affirmative steps to inform minorities and women of the avail-
ability of funds under this subpart, and the localities where new public 
telecommunications facilities are needed, and to provide such other 
assistance and information as may be appropriate. 
"(g) If, within 10 years after completion of any project for con-
struction of public telecommunications facilities with respect to which 
a grant has been made under this section— 
"(1) the applicant or other owner of such facilities ceases to 
be an agency, institution, foundation, corporation, association, or 
other entity described in subsection (a) (1); or 
"(2) such facilities cease to be used only for the provision of 
public telecommunications services (unless the Secretary deter-
mines, in accordance with regulations, that there is good cause 
for releasing the applicant or other owner from the obligation to 
do so); 
the United States shall be entitled to recover from the applicant or 
other owner of such facilities the amount bearing the same ratio to 
the value of such facilities at the time the applicant ceases to be such 
an entity or at the time of such determination (as determined by agree-
ment of the parties or by action brought in the United States district 
court for the district in which such facilities are situated), as the 
amount of the Federal participation bore to the cost of construction of 
such facilities. 
"(h) Each recipient of assistance under this subpart shall keep such 
records as may be reasonably necessary to enable the Secretary to 
carry out the functions of the Secretary under this subpart, including 
a complete and itemized inventory of all public telecommunications 
facilities under the control of such recipient, and records which fully 
disclose the amount and the disposition by such recipient of the pro-
ceeds of such assistance, the total cost of the project in connection with 
which such assistance is given or used, the amount and nature of that 
portion of the cost of the project supplied by other sources, and such 
other records as will facilitate an effective audit. 
"(i) The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall have 
access for the purpose of audit and examination to any books, docu-
ments, papers, and records of any recipient of assistance under this 
subpart that are pertinent to assistance received under this subpart.", 
(b) (1) The provisions of section 392(g) of the Communications Act 
of 1934, as added by subsection (a), shall apply to any grant made 
under section 392 of such Act before, on, or after the date of the enact-
ment of this Act. Any authority and responsibilities of the Secretary 
of Health, Education, and Welfare regarding the administration of 
such grants are hereby transferred to the Secretary of Commerce. 
(2) Subject to the provisions of section 202 of the Budget and 
Accounting Procedures Act of 1950 (31 U.S.C. 581c), the following 
are hereby transferred to the Secretary of Commerce for appropriate 
allocation— 
(A) the personnel employed in connection with or in support 
of, or as an integral part of the mission of, the functions trans-
ferred to the Secretary of Commerce from the Secretary of Health, 
Education, and Welfare by paragraph (1); and 
(B) the assets, liabilities, contracts, property, records, and 
unexpended balances of appropriations, allocations, and other 
funds employed, held, used, arising from, available for, or to be 
made available for, or in connection with, the functions described 
msubparagraph (A). 
Minorities and 
women, notice. 
Recordkeeping 
requirements. 
Books, 
documents, 
records, 
accessibility. 
47 u s e 392 note. 
Ante, p. 2405. 
Administration of 
grants, 
transferred to 
Commerce. 
92 STAT. 2408 
PUBLIC LAW 95-567—NOV. 2, 1978 
Unexpended funds transferred pursuant to this paragraph shall be 
used only for the purposes for which the funds originally were 
authorized and appropriated. 
(3) The Director of the Office of Management and Budget, in con-
sultation with the Secretary of Commerce and the Secretary of Health, 
Education, and Welfare, shall— 
(A) make such determinations as may be necessary with regard 
to the transfer of the functions transferred to the Secretary of 
Commerce from the Secretary of Health, Education, and Welfare 
by paragraph (1) ; and 
(B) make such additional incidental dispositions of personnel, 
assets, liabilities, contracts, property, records, and unexpended 
balances of appropriations, allocations, and other funds employed, 
held, used, arising from, available for, or to be made available for, 
or in connection with, the functions described in subparagraph 
(A); 
as the Director may deem necessary to accomplish the purposes of this 
Act and the amendments made by this Act. 
CRITERIA FOR APPROVAL AND EXPENDITURES BY SECRETARY OF COMMERCE 
47 use 393. 
SEC. 104. Section 393 of the Communications Act of 1934 is amended 
to read as follows: 
Grants. 
Ante, p. 2405. 
Noncommercial 
radio broadcast 
station facilities. 
"CRITERIA FOR APPROVAL AND EXPENDITURES BY SECRETARY OF COMMERCE 
"SEC. 393. (a) The Secretary, in consultation with the Corporation, 
public telecommunications entities, and as appropriate with others, 
shall establish criteria for making construction and planning grants. 
Such criteria shall be consistent with the objectives and provisions set 
forth in this subpart, and shall be made available to interested parties 
upon request. 
"(b) The Secretary shall base determinations of whether to approve 
applications for grants under this subpart, an^ the amount of such 
grants, on criteria developed pursuant to subsection (a) and designed 
to achieve— 
"(1) the provision of new telecommunications facilities to 
extend service to areas currently not receiving public telecom-
munications services; 
" (2) the expansion of the service areas of existing public tele-
communications entities; 
"(3) the development of public telecommunications facilities 
owned by, operated by, and available to minorities and women; 
and 
"(4) the improvement of the capabilities of existing public 
broadcast stations to provide public telecommunications services. 
"(c) Of the funds appropriated pursuant to section 391 for any 
fiscal year, not less than 75 percent shall be available to extend delivery 
of public telecommunications services to areas not receiving such serv-
ices through grants for facilities of new and existing public tele-
communications entities, and preoperational expenses associated with 
such facilities. In choosing among applicants for grants, the Secretary 
shall compare the advantages of alternate technologies on the basis of 
costs and benefits. 
"(d) Of the sums appropriated pursuant to section 391 for any 
fiscal year, a substantial amount shall be available for the expansion 
and development of noncommercial radio broadcast station facilities.". 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2409 
LONG-RANGE PLANNING FOR FACILITIES 
SEC. 105. Section 394 of the Communications Act of 1934 is amended 47 USC 394. 
to read as follows: 
" L O N G - R A N G E PLANNING FOR FACILITIES 
"SEC. 394. (a) The Secretary, in consultation with the Corporation, 
public telecommunications entities, and as appropriate with other 
parties, shall develop a long-range plan to accomplish the objectives 
set forth in section 390. Such plan shall include a detailed 5-year 
projection of the broadcast and nonbroadcast public telecommunica-
tions facilities required to meet such objectives, and the expenditures 
necessary to provide such facilities, 
"(b) The plan required in subsection (a) shall be updated annu-
ally, and a summary of the activities of the Secretary in implement-
ing the plan, shall be submitted concurrently to the President and 
the Congress not later than the 31st day of December of each year.". 
Post, p. 2405. 
Report to 
President and 
Congress. 
MISCELLANEOUS PROVISIONS 
SEC. 106. (a) The heading for part IV of title III of the Communi-
cations Act of 1934 is amended to read as follows: 
"PART IV—ASSISTANCE FOR PUBLIC TELECOMMUNICATIONS FACILITIES ; 
TELECOMMUNICATIONS DEMONSTRATIONS; CORPORATION FOR PUB-
LIC BROADCASTING". 
(b) The heading for subpart A of part IV of title III of the Com-
munications Act of 1934 is amended to read as follows: 
"Subpart A—Assistance for Public Telecommunications Facilities". 
37 USC 390. 
5 USC 5316 note. 
(c) The position of Deputy Assistant Secretary of Commerce for 
Communications and Information, established in Department of 
Commerce Organization Order Numbered 10-10 (effective March 26, 
1978), shall be compensated at the rate of pay in effect from time to Compensation, 
time for level V of the Executive Schedule under section 5316 of 
title 5, United States Code. 
TITLE II—TELECOMMUNICATIONS DEMONSTRATIONS 
ASSISTANCE FOR DEMONSTRATION PROJECTS 
SEC. 201. Part IV of title III of the Communications Act of 1934 
is amended by striking out section 392A and section 395, by redesig- 47 USC 392a, 
nating subpart B and subpart C as subpart C and subpart D, respec- ^9^-
tively, and by inserting after subpart A the following new subpart: 
"Subpart B—Telecommunications Demonstrations 
" A S S I S T A N C E FOR DEMONSTRATION PROJECTS 
"SEC. 395. (a) It is the purpose of this subpart to promote the 47 USC 395. 
development of nonbroadcast telecommunications facilities and serv-
ices for the transmission, distribution, and delivery of health, edu- 
. <, 
cation, and public or social service information. The Secretary is 
authorized, upon receipt of an application in such form and contain-
ing such information as he may by regulation require, to make grants 
92 STAT. 2410 
PUBLIC LAW 95-567—NOV. 2, 1978 
Application 
approval. 
.viOt'S. ,f| ^^j(f^. 
G)ntract with 
applicant. 
"Nonbroadcast 
telecommunications 
facilities." 
Funding. 
Summary and 
evaluation. 
Recordkeeping 
requirements. 
%
t
^
6 320 Xh 
Books, 
documents, 
records, 
accessibility. 
to, and enter into contracts with, public and private nonprofit agen-
cies, organizations, and institutions for the purpose of carrying out 
telecommunications demonstrations. 
"(b) The Secretary may approve an application submitted under 
subsection (a) if he determines that— 
" (1) the project for which application is made will demonstrate 
innovative methods or techniques of utilizing nonbroadcast tele-
communications equipment or facilities to satisfy the purpose 
of this subpart; 
"(2) demonstrations and related activities assisted under this 
subpart will remain under the administration and control of the 
applicant; 
"(3) the applicant has the managerial and technical capability 
to carry out the project for which the application is made; and 
"(4) the facilities and equipment acquired or developed pur-
suant to the application will be used substantially for the trans-
mission, distribution, and delivery of health, education, or public 
or social service information, 
"(c) Upon approving any application under this subpart with 
respect to any project, the Secretary shall make a grant to or enter 
into a contract with the applicant in an amount determined by the 
Secretary not to exceed the reasonable and necessary cost of such 
project. The Secretary shall pay such amount from the sums available 
therefor, in advance or by way of reimbursement, and in such install-
ments consistent with established practice, as he may determine. 
"(d) Funds made available pursuant to this subpart shall not be 
available for the construction, remodeling, or repair of structures 
to house the facilities or equipment acquired or developed with such 
funds, except that such funds may be used for minor remodeling which 
is necessary for and incidental to the installation of such facilities 
or equipment. 
"(e) For purposes of this section, the term 'nonbroadcast tele-
communications facilities' includes, but is not limited to, cable tele-
vision systems, communications satellite systems and related terminal 
equipment, and other modes of transmitting, emitting, or receiving 
images and sounds or intelligence by means of wire, radio, optical, 
electromagnetic, or other means. 
"(f) The funding of any demonstration pursuant to this subpart 
shall continue for not more than 3 years from the date of the original 
grant or contract. 
"(g) The Secretary shall require that the recipient of a grant or 
contract under this subpart submit a summary and evaluation of the 
results of the demonstration at least annually for each year in which 
funds are received pursuant to this section. 
"(h) (1) Each recipient of assistance under this subpart shall keep 
such records as may be reasonably necessary to enable the Secretary to 
carry out the Secretary's functions under this subpart, including 
records which fully disclose the amount and the disposition by such 
recipient of the proceeds of such assistance, the total cost of the project 
or undertaking in connection with which such assistance is given or 
used, the amount and nature of that portion of the cost of the project 
or undertaking supplied by other sources, and such other records as 
will facilitate an effective audit, 
"(2) The Secretary and the Comptroller General of the United 
States, or any of their duly authorized representatives, shall have 
access for the purposes of audit and examination to any books, docu-
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2411 
ments, papers, and records of the recipient that are pertinent to assist-
ance received under this subpart. 
" (i) The Secretary is authorized to make such rules and regulations 
as may be necessary to carry out this subpart, including regulations 
relating to the order of priority in approving applications for projects 
under this subpart or to determining the amounts of grants for such 
projects. 
"(j) The Commission is authorized to provide such assistance in 
carrying out the provisions of this subpart as may be requested by the 
Secretary. The Secretary shall provide for close coordination with the 
Commission in the administration of the Secretary's functions under 
this subpart which are of interest to or affect the functions of the 
Commission. The Secretary shall provide for close coordination with 
the Corporation in the administration of the Secretary's functions 
under this subpart which are of interest to or affect the functions of 
the Corporation. 
"(k) There are authorized to be appropriated $1,000,000 for each of 
the fiscal years 1979, 1980, and 1981, to be used by the Secretary to 
carry out the provisions of this subpart. Sums appropriated under this 
subsection for any fiscal year shall remain available for payment of 
grants or contracts for projects for which applications approved under 
this subpart have been submitted within one year after the last day of 
such fiscal year.". 
TITLE 
III—CORPORATION 
FOR 
PUBLIC 
BROADCASTING 
Rules and 
regulations. 
Assistance. 
Appropriation 
authorization. 
DECLARATION OF POLICY 
SEC. 301. Section 396(a) of the Communications Act of 1934 is 47 USC 396. 
amended to read as follows: 
"SEC. 396. (a) The Congress hereby finds and declares that— 
"(1) it is in the public interest to encourage the growth and 
development of public radio and television broadcasting, includ-
ing the use of such media for instructional, educational, and cul-
tural purposes; 
"(2) it is in the public interest to encourage the growth and 
development of nonbroadcast telecommunications technologies 
for the delivery of public telecommunications services; 
"(3) expansion and development of public telecommunications 
and of diversity of its programming depend on freedom, imagi-
nation, and initiative on both local and national levels; 
"(4) the encouragement and support of public telecommuni-
cations, while matters of importance for private and local devel-
opment, are also of appropriate and important concern to the 
Federal Government; 
"(5) it furthers the general welfare to encourage public tele-
communications services which will be responsive to the interests 
of people both in particular localities and throughout the United 
States, and which will constitute an expression of diversity and 
excellence; 
"(6) it is necessary and appropriate for the Federal Govern-
ment to complement, assist, and support a national policy that 
will most effectively make public telecommunications services 
available to all citizens of the United States; and 
"(7) a private corporation should be created to facilitate the 
development of public telecommunications and to afford max-
imum protection from extraneous interference and control.". 
92 STAT. 2412 
PUBLIC LAW 95-567—NOV. 2, 1978 
CHAIRMAN OF THE BOARD 
47 use 396. 
SEC. 302. Section 396(d)(1) of the Communications Act of 1934 
is amended by striking out "President shall designate one of the 
members first appointed to the Board as Chairman; thereafter the". 
COMPENSATION OF OFFICERS AND EMPLOYEES 
.*Hi J- 
SEC. 303. (a) Section 396(e)(1) of the Communications Act of 
1934 is amended by inserting after the first sentence the following new 
sentence: "No officer or employee of the Corporation may be compen-
sated by the Corporation 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.". 
47 use 396 note. 
(b) The amendment made by subsection (a) shall not be construed 
to reduce the annual rate of pay of any officer or employee of the Cor-
poration for Public Broadcasting in any case in which (1) such officer 
or employee was appointed or named to any position in the Corpora-
;.tfi. 
^JQjj before the date of the enactment of this Act; and (2) the annual 
rate of pay for such position, as in effect on such date of enactment, 
exceeds the maximum rate of pay established in section 396(e) (1) of 
the Communications Act of 1934, as amended by subsection (a). 
PURPOSES AND ACTIVITIES OF CORPORATION 
SEC. 304. Section 396(g) of the Communications Act of 1934 is 
amended to read as follows: 
"Purposes and Activities of Corporation 
"(g) (1) In order to achieve the objectives and to carry out the 
purposes of this subpart, as set out in subsection (a), the Corporation 
is authorized to— 
"(A) facilitate the full development of public telecommunica-
tions in which programs of high quality, diversity, creativity, 
excellence, and innovation, which are obtained from diverse 
sources, will be made available to public telecommunications 
entities, with strict adherence to objectivity and balance in all 
programs or series of programs of a controversial nature; 
"(B) assist in the establishment and development of one or more 
interconnection systems to be used for the distribution of public 
telecommunications services so that all public telecommunications 
entities may disseminate such services at times chosen by the 
entities; 
"(C) assist in the establishment and development of one or 
more systems of public telecommunications entities throughout 
the United States; and 
"(D) carry out its purposes and functions and engage in its 
activities in ways that will most effectively assure the maximum 
freedom of the public telecommunications entities and systems 
from interference with, or control of, program content or other 
activities. 
"(2) In order to carry out the purposes set forth in subsection (a), 
the Corporation is authorized to— 
"(A) obtain grants from and make contracts with individuals 
and with private. State, and Federal agencies, organizations, and 
institutions; 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2413 
"(B) contract with or make grants to public telecommunica-
tions entities, national, regional, and other systems of public 
telecommunications entities, and independent producers and pro-
duction entities, for the production or acquisition of public tele-
communications services to be made available for use by public 
telecommunications entities, except that— 
" (i) to the extent practicable, proposals for the provision of 
assistance by the Corporation in the production or acquisition 
of programs or series of programs shall be evaluated on the 
basis of comparative merit by panels of outside experts, 
' 
representing diverse interests and perspectives, appointed by 
the Corporation; and 
"(ii) nothing in this subparagraph shall be construed to 
prohibit the exercise by the Corporation of its prudent busi-
ness judgment with respect to any contract or grant to assist 
in the production or acquisition of any program or series of 
programs recommended by any such panel; 
"(C) make payments to existing and new public telecommunica- Payments, 
tions entities to aid in financing the production or acquisition of 
public telecommunications services by such entities, particularly 
innovative approaches to such services, and other costs of opera-
tion of such entities; 
"(D) establish and maintain, or contribute to, a library and 
archives of noncommercial educational and cultural radio and 
television programs and related materials and develop public 
awareness of, and disseminate information about, public tele-
communications services by various means, including the publica-
tion of a journal; 
"(E) arrange, by grant to or contract with appropriate public 
or private agencies, organizations, or institutions, for intercon-
nection facilities suitable for distribution and transmission of 
public telecommunications services to public telecommunications 
entities; 
"(F) hire or accept the voluntary services of consultants, 
experts, advisory boards, and panels to aid the Corporation in 
carrying out the purposes of this subpart; 
"(G) conduct (directly or through grants or contracts) 
research, demonstrations, or training in matters related to public 
television or radio broadcasting and the use of nonbroadcast com-
munications technologies for the dissemination of noncommercial 
educational and cultural television or radio programs; 
"(H) make grants or contracts for the use of nonbroadcast 
telecommunications technologies for the dissemination to the pub-
lic of public telecommunications services; and 
"(I) take such other actions as may be necessary to accomplish 
the purposes set forth in subsection (a). 
Nothing contained in this paragraph shall be construed to commit the 
Federal Government to provide any sums for the payment of any 
obligation of the Corporation which exceeds amounts provided in 
advance in appropriation Acts. 
"(3) To carry out the foregoing purposes and engage in the fore-
going activities, the Corporation shall have the usual powers conferred 
upon a nonprofit corporation by the District of Columbia Nonprofit 
Corporation Act (D.C. Code, sec. 29-1001 et seq.), except that the 
Corporation is prohibited from— 
Prohibitions. 
"(A) owning or operating any television or radio broadcast 
station, system, or network, community antenna television system. 
92 STAT. 2414 
PUBLIC LAW 95-567—NOV. 2, 1978 
interconnection system or facility, program production facility, 
or any public telecommunications entity, system, or network; and 
"(B) producing programs, scheduling programs for dissemina-
tion, or disseminating programs to the public. 
"(4) All meetings of the Board of Directors of the Corporation, 
including any committee of the Board, shall be open to the public 
under such terms, conditions, and exceptions as are set forth in sub-
Post, p. 2415. 
section (k) (4). 
Study, 
"(5) The Corporation, in consultation with public broadcast 
completion. 
stations, shall undertake a study to determine the manner in which 
personal services of volunteers should be included in determining 
the level of non-Federal financial support pursuant to subsection (k) 
(2) (A). The study, w^hich shall be completed not later than 180 days 
after the effective date of this paragraph, shall include an examination 
of any fiscal, administrative, or other factors which should be taken 
into account in determining the manner in which such services should 
be so included, and shall include proposed valuation standards. Upon 
completion, the study and the proposed valuation standards shall be 
submitted to the Comptroller General of the United States for 
approval. 
"(6) The Corporation, in consultation with interested parties, 
shall create a 5-year plan for the development of public telecommuni-
cations services. Such plan shall be updated annually by the 
Corporation.". 
INTERCONNECTION SERVICE 
47 use 396. 
SEC 305. Section 396(h) of the Communications Act of 1934 is 
amended to read as follows: 
. 
Submission to 
Comptroller 
General. 
"Interconnection Service 
" (h) (1) Nothing in this Act, or in any other provision of law, shall 
be construed to prevent United States commimications common car-
riers from rendering free or reduced rate commimications intercon-
nection services for public television or radio services, subject to such 
rules and regulations as the Commission may prescribe. 
"(2) Subject to such terms and conditions as may be established by 
public telecommunications entities receiving space satellite intercon-
nection facilities or services purchased or arranged for, in whole or 
in part, with funds authorized under this part, other public telecom-
munications entities shall hB.ve reasonable access to such facilities or 
services for the distribution of educational and cultural programs to 
public telecommunications entities. Any remaining capacity shall be 
made available to other persons for the transmission of noncommercial 
educational and cultural programs and program information relating 
to such programs, to public telecommunications entities, at a charge or 
charges comparable to the charge or charges, if any, imposed upon 
a public telecommunications entity for the distribution of noncom-
mercial educational and cultural programs to public telecommunica-
tions entities. No such person shall be denied such access whenever 
sufficient capacity is available.". 
ANNUAL REPORT TO CONGRESS 
>fr«)iii<jtf-)"'1 
SEC 306. Section 396(i) of the Communications Act of 1934 is 
amended to read as follows: 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2415 
Report to 
President and 
Congress. 
"Report to Congress 
"(i)(l) The Corporation shall submit an annual report for the 
preceding fiscal year ending September 30 to the President for trans-
mittal to the Congress on or before the 15th day of February of each 
year. The report shall include— 
"(A) a comprehensive and detailed report of the Corporation's 
operations, activities, financial condition, and accomplishments 
under this subpart and such recommendations as the Corporation 
deems appropriate; 
"(B) a comprehensive and detailed inventory of funds distrib-
uted by Federal agencies to public telecommunications entities 
during the preceding fiscal year; and 
"(C) the summary of the annual report provided to the Secre-
tary pursuant to section 398 (b) (4). 
"(2) The officers and directors of the Corporation shall be available 
to testify before appropriate committees of the Congress with respect 
to such report, the report of any audit made by the Comptroller 
General pursuant to subsection (1), or any other matter which such 
committees may determine.". 
FINANCING; OPEN MEETINGS AND FINANCIAL RECORDS 
SEC. 307. (a) Section 396(k) of the Communications Act of 1934 47 USC 396. 
is amended to read as follows: 
Post, p. 2420. 
"Financing; Open Meetings and Financial Records 
"(k)(l)(A) There is hereby established in the Treasury a fund 
which shall be known as the Public Broadcasting Fund (hereinafter 
in this subsection referred to as the 'Fund'), to be administered by 
the Secretary of the Treasury. 
"(B) There is authorized to be appropriated to the Fund, for each 
of the fiscal years 1978,1979, and 1980, an amount equal to 40 percent 
of the total amount of non-Federal financial support received by pub-
lic broadcasting entities during the fiscal year second preceding each 
such fiscal year, except that the amount so appropriated shall not 
exceed $121,000,000 for fiscal year 1978, $140,000,000 for fiscal year 
1979, and $160,000,000 for fiscal'year 1980 
"(C) There is authorized to be appropriated to the Fund, for each of 
the fiscal years 1981,1982, and 1983, an amount equal to 50 percent of 
the total amount of non-Federal financial support received by public 
broadcasting entities during the fiscal year second preceding each such 
fiscal year, except that the amount so appropriated shall not exceed 
$180,000,000 for fiscal year 1981, $200,000,000 for fiscal year 1982, and 
$220,000,000 for fiscal year 1983. 
"(D) Funds appropriated under this subsection shall remain avail-
able until expended. 
"(2) (A) The funds authorized to be appropriated by this subsection 
shall be used by the Corporation, in a prudent and financially respon-
sible manner, solely for its grants, contracts, and administrative costs, 
except that the Corporation may not use any funds appropriated under 
this subpart for purposes of conducting any reception, or providing 
any other entertainment, for any officer or employee of the Federal 
Government or any State or local government. The Corporation shall 
determine the amount of non-Federal financial support received by 
public broadcasting entities during each of the fiscal years referred to 
Public 
Broadcasting 
Fund. 
Establishment. 
Appropriation 
authorizations. 
92 STAT. 2416 
PUBLIC LAW 95-567—NOV. 2, 1978 
dt?. 
Annual budget, 
establishment. 
in paragraph (1) for the purpose of determining the amount of each 
authorization, and shall certify such amount to the Secretary of the 
Treasury, except that the Corporation may include in its certification 
non-Federal financial support received by a public broadcasting entity 
during its most recent fiscal year ending before September 30 of the 
year for which certification is made. Upon receipt of such certification, 
the Secretary of the Treasury shall make available to the Corporation, 
from such funds as may be appropriated to the Fund, the amount 
authorized for each of the fiscal years pursuant to the provisions of this 
subsection. 
"(B) Funds appropriated and made available under this subsection 
shall be disbursed by the Secretary of the Treasury on a quarterly basis, 
in such amounts as the Corporation certifies will be necessary to meet 
its financial obligations in the succeeding quarter. 
Reservation for 
"(3) (A) The Corporation shall reserve for distribution among the 
distribution. 
licensees and permittees of public television and radio stations an 
amount equal to— 
"(i) not less than 40 percent of the funds disbursed by the 
Corporation from the Fund under this section in each fiscal year in 
which the amount disbursed is $88,000,000 or more, but less than 
$121,000,000; 
"(ii) not less than 45 percent of such funds in each fiscal year 
in which the amount disbursed is $121,000,000 or more, but less 
than $160,000,000; and 
"(iii) not less than 50 percent of such funds in each fiscal year 
in which the amount disbursed is $160,000,000 or more. 
"(B) (i) The Corporation shall establish an annual budget accord-
ing to which it shall make grants and contracts for production of 
public television or radio programs by independent producers and 
production entities and public telecommunications entities, for acquisi-
tion of such programs by public telecommunications entities, for inter-
connection facilities and operations, for distribution of funds among 
public telecommunications entities, and for engineering and program-
related research. A significant portion of funds available under the 
budget established by the Corporation under this subparagraph shall 
be used for funding the production of television and radio programs. 
Of such portion, a substantia] amount shall be reserved for distribution 
to independent producers and production entities for the production 
of programs. 
"(ii) All funds contained in the annual budget established by the 
Corporation under clause (i) shall be distributed to entities outside 
the Corporation and shall not be used for the general administrative 
costs of the Corporation, the salaries or related expenses of Corpora-
tion personnel and members of the Board, or for expenses of con-
sultants and advisers to the Corporation. 
" (iii) During each of the fiscal years 1981,1982, and 1983, the annual 
budget established by the Corporation under claiise (i) shall consist 
of not less than 95 percent of the funds made available by the Secre-
tary of the Treasury to the Corporation pursuant to paragraph 
(2) (A). 
"(iv) In determining the amount of funds which shall be made 
available for radio programming and operations under this sub-
paragraph, the Corporation shall take into account the increased 
financial needs relating to radio programming and operations result-
ing from the expansion and development of noncommercial radio 
broadcast station facilities through the use of funds made available 
Ante, p. 2408. 
pursuant to section 393 (d). 
Funds, 
distribution to 
outside entities. 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2417 
"(C) In fiscal year 1981, the Corporation may expend an amount 
equal to not more than 5 percent of the funds made available by the 
Secretary of the Treasury during such fiscal year pursuant to para-
graph (2) (A) for those activities authorized under subsection (g) (2) 
which are not among those grant activities described in subparagraph 
(B). 
"(D) In fiscal years 1982 and 1983, the amount which the Corpora-
tion may expend for activities authorized under subsection (g) (2) 
which are not among those grant activities described in subparagraph 
(B) shall be 105 percent of the amount derived for the preceding 
fiscal year. 
"(4) Funds may not be distributed pursuant to this subsection to Open meetings, 
the Public Broadcasting Service or National Public Eadio (or any 
successor organization), or to the licensee or permittee of any public 
broadcast station, unless the governing body of any such organization, 
any committee of such governing body, or any advisory body of any 
such organization, holds open meetings preceded by reasonable notice 
to the public. AH 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 attendance 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 infor-
mation, litigation and other matters requiring the confidential advice 
of counsel, commercial or financial information obtained from a person 
on a privileged or confidential basis, or the purchase of property or 
services whenever the premature exposure of such purchase would 
compromise the business interests of any such organization. If any 
such meeting is closed pursuant to the provisions of this paragraph, 
'* 
the organization involved shall thereafter (within a reasonable period 
of time) make available to the public a written statement containing 
an explanation of the reasons for closing the meeting. 
"(5) Funds may not be distributed pursuant to this subsection to 
any public telecommunications entity that does not maintain for 
public examination copies of the annual financial and audit reports, 
or other information regarding finances, submitted to the Corporation 
pursuant to subsection (1) (3) (B). 
"(6) (A) The Corporation, in consultation with public television Review, 
and radio licensees, shall review annually the percentage of funds 
reserved pursuant to paragraph (3) (A), and the criteria and con-
ditions regarding the division and distribution of such funds among 
public television and radio stations. 
"(B) The funds reserved for public broadcast stations pursuant to 
paragraph (3) (A) shall be divided into two portions, one to be 
distiibuted among radio stations and one to be distributed among 
television stations. The Corporation shall make a basic grant from 
the portion reserved for television stations to each licensee and per-
mittee of a public television station that is on the air. The balance of 
the portion reserved for television stations and the total portion 
reserved for radio stations shall be distributed to licensees and per-
mittees of such stations in accordance with eligibility criteria that 
promote the public interest in public broadcasting, and on the basis 
of a formula designed to— 
"(i) provide for the financial needs and requirements of sta-
tions in relation to the communities and audiences such stations 
undertake to serve; 
Funds 
distribution, 
restriction. 
Funds, 
distribution. 
92 STAT. 2418 
PUBLIC LAW 95-567—NOV. 2, 1978 
Limitation. 
.«2aji»»£R a 
Community 
advisory board. 
Review. 
Time limitation. 
Funds 
distribution, 
prohibition. 
"(ii) maintain existing, and stimulate new, sources of non-
Federal financial support for stations by providing incentives 
for increases in such support; and 
"(iii) assure that each eligible licensee and permittee of a 
public radio station receives a basic grant. 
"(7) No distribution of funds pursuant to this subsection shall 
exceed, in any fiscal year, 50 percent of a licensee's or permittee's total 
non-Federal financial support during the fiscal year second preceding 
the fiscal year in which such distribution is made. 
"(8) The funds distributed pursuant to paragraph (3) (A) may be 
used at the discretion of the recipient for purposes relating to the pro-
vision of public television and radio programming, including, but not 
limited to— 
"(A) producing, acquiring, broadcasting, or otherwise dis-
seminating public television or radio programs; 
"(B) procuring national or regional program distribution serv-
ices that make public television or radio programs available for 
broadcast or other dissemination at times chosen by stations; 
"(C) acquiring, replacing, or maintaining facilities, and real 
property used with facilities, for the production, broadcast, or 
other dissemination of public television and radio programs; and 
"(D) developing and using nonbroadcast communications tech-
nologies for public television or radio programming purposes. 
"(9) (A) Funds may not be distributed pursuant to this subpart 
to any public broadcast station unless such station establishes a com-
munity advisory board. Any such station shall undertake good faith 
efforts to assure that the composition of its advisory board reasonably 
reflects the diverse needs and interests of the communities served by 
such station. 
"(B) The board shall be permitted to review the programming goals 
established by the station, the service provided by the station, and the 
significant policy decisions rendered by the station. The board may 
also be delegated any other responsibilities, as determined by the gov-
erning body of the station. The board shall advise the governing body 
of the station with respect to whether the programming and other 
policies of such station are meeting the specialized educational and 
cultural needs of the communities served by the station, and may make 
such recommendations as it considers appropriate to meet such needs. 
"(C) The role of the board shall be solely advisory in nature, except 
to the extent other responsibilities are delegated to the board by the 
governing body of the station. In no case shall the board have any 
authority to exercise any control over the daily management or opera-
tion of the station. 
"(D) In the case of any public broadcast station in existence on the 
effective date of this paragraph, such station shall comply with the 
requirements of this paragraph with respect to the establishment of a 
community advisory board not later than 180 days after such effective 
date. 
"(E) The provision of subparagraph (A) prohibiting the distribu-
tion of funds to any public broadcast station unless such station estab-
lishes a community advisory board shall be the exclusive remedy for 
the enforcement of the provisions of this paragraph. 
"(10) Funds may not be distributed pursuant to this subsection to 
the Public Broadcasting Service or National Public Radio (or any 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2419 
successor organization) unless assurances are provided to the Corpora-
tion that no officer or employee of the Public Broadcasting Service or 
National Public Radio (or any successor organization), as the case may 
be, will be compensated 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.". 
(b) Section 396 (k) (10) of the Communications Act of 1934, as 
added by subsection (a), shall not be construed to reduce the annual 
rate of pay of any officer or employee of the Public Broadcasting 
Service or National Public Radio (or any successor organization) in 
any case in which (1) such officer or employee was appointed or named 
to any position in the Public Broadcasting Service or National Public 
Radio (or any successor organization) before the date of the enact-
ment of this Act; and (2) the annual rate of pay for such position, as 
in effect on such date of enactment, exceeds the maximum rate of pay 
established in section 396 (k) (10) of the Communications Act of 1934, 
as added by subsection (a). 
47 u s e 396 note. 
Ante, p. 2415. 
FINANCIAL MANAGEMENT AND RECORDS 
SEC. 308. Section 396(1) (3) of the Communications Act of 1934 is 47 USC 396. 
amended to read as follows: 
"(3) (A) Not later than 1 year after the effective date of this para- Accounting 
graph, the Corporation, in consultation with the Comptroller General, principles, 
and as appropriate with others, shall develop accounting principles development, 
which shall be used uniformly by all public telecommunications entities 
receiving funds under this subpart, taking into account organizational 
differences among various categories of such entities. Such principles 
shall be designed to account fully for all funds received and expended 
for public telecommunications purposes by such entities. 
•'(B) Each public telecommunications entity receiving funds under Recordkeeping 
this subpart shall be required— 
requirements. 
"(i) to keep its books, records, and accounts in such form as 
may be required by the Corporation; 
" ? ,. 
"(ii) to undergo an annual audit by independent certified pub-
lic accountants or independent licensed public accountants certi-
fied or licensed by a regulatory authority of a State, which audit 
shall be in accordance with auditing standards developed by the 
Corporation, in consultation with the Comptroller General; and 
" (iii) to furnish annually to the Corporation a copy of the audit 
report required pursuant to clause (ii), as well as such other 
': 
information regarding finances (including an annual financial 
report) as the Corporation may require. 
"(C) Any recipient of assistance by grant or contract under this 
section, other than a fixed price contract awarded pursuant to com-
petitive bidding procedures, shall keep such records as may be reason-
ably necessary to disclose fully the amount and the disposition by 
such recipient of such assistance, the total cost of the project or 
undertaking in connection with which such assistance is given or 
used, and the amount and nature of that portion of the cost of the 
project or undertaking supplied by other sources, and such other 
records as will facilitate an effective audit. 
"(D) The Corporation or any of its duly authorized representa- Books, 
tives shall have access to any books, documents, papers, and records documents, 
papers, and 
records, 
accessibility. 
92 STAT. 2420 
PUBLIC LAW 95-567—NOV. 2, 1978 
of any recipient of assistance for the purpose of auditing and examin-
ing all funds received or expended for public telecommunications 
purposes by the recipient. The Comptroller General of the United 
States or any of his duly authorized representatives also shall have 
access to such books, documents, papers, and records for the purpose 
of auditing and examining all funds received or expended for public 
telecommunications purposes during any fiscal year for which Federal 
funds are available to the Corporation.". 
EQUAL EMPLOYMENT OPPORTUNITY 
47 use 398. 
SEC. 309. Section 398 of the Communications Act of 1934 is amended 
to read as follows: 
FEDERAL INTERFERENCE OR CONTROL PROHIBITED; EQUAL EMPLOYMENT 
OPPORTUNITY 
"SEC 398. (a) Nothing contained in this part shall be deemed (1) 
to amend any other provision of, or requirement under, this Act; or 
(2) except to the extent authorized in subsection (b), to authorize any 
department, agency, officer, or employee of the United States to exer-
cise any direction, supervision, or control over public telecommunica-
tions, or over the Corporation or any of its grantees or contractors, 
or over the charter or bylaws of the Corporation, or over the curric-
ulum, program of instruction, or personnel of any educational insti-
tution, school system, or public telecommunications entity. 
Equal 
"(b) (1) Equal opportunity in employment shall be afforded to all 
opportunity 
persons by the Public Broadcasting Service and National Public 
employment. 
Eadio (or any successor organization) and by all public telecommu-
Ante, p. 2409. 
nications entities receiving funds pursuant to subpart C (hereinafter 
in this subsection referred to as 'recipients'), and no person shall be 
subjected to discrimination in employment by any recipient on the 
grounds of race, color, religion, national origin, or sex. 
Rules and 
"(2) (A) The Secretary is authorized and directed to enforce this 
regulations. 
subsection and to prescribe such rules and regulations as may be 
necessary to carry out the functions of the Secretary under this 
subsection. 
"(B) The Secretary shall provide for close coordination with the 
Commission in the administration of the responsibilities of the Secre-
tary under this subsection which are of interest to or affect the func-
tions of the Commission so that, to the maximum extent possible 
consistent with the enforcement responsibilities of each, the reporting 
requirements of public telecommunications entities shall be uniformly 
based upon consistent definitions and categories of information. 
"(3) (A) The Corporation shall incorporate into each grant agree-
ment or contract with any recipient entered into on or after the 
effective date of the rules and regulations prescribed by the Secretary 
pursuant to paragraph (2) (A), a statement indicating that, as a 
material part of the terms and conditions of the grant agreement or 
contract, the recipient will comply with the provisions of paragraph 
(1) and the rules and regulations prescribed pursuant to paragraph 
(2) (A). Any person which desires to be a recipient (within the mean-
ing of paragraph (1)) of funds under subpart C shall, before receiv-
ing any such funds, provide to the Corporation any information 
^
» 
which the Corporation may require to satisfy itself that such person 
is affording equal opportunity in employment in accordance with the 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2421 
requirements of this subsection. Determinations made by the Corpora-
tion in accordance with the preceding sentence shall be based upon 
guidelines relating to equal oportunity in employment which shall 
be established by rule by the Secretary. 
"(B) If the Corporation is not satisfied that any such person is 
affording equal opportimity in employment in accordance with the 
requirements of this subsection, the Corporation shall notify the Sec-
retary, and the Secretary shall review the matter and make a final 
determination regarding whether such person is affording equal oppor-
tunity in employment. In any case in which the Secretary conducts a 
review under the preceding sentence, the Corporation shall make 
funds available to the person involved pursuant to the grant applica-
tion of such person (if the Corporation would have approved such 
application but for the finding of the Corporation under this para-
graph) pending a final determination of the Secretary upon com-
pletion of such review. The Corporation shall monitor the equal 
employment opportunity practices of each recipient throughout the 
duration of the grant or contract. 
"(C) The provisions of subparagraph (A) and subparagraph (B) 
shall take effect on the effective date of the rules and regulations pre-
scribed by the Secretary pursuant to paragraph (2) (A). 
"(4) Based upon its responsibilities under paragraph (3), the Cor-
poration shall provide an annual report for the preceding fiscal year 
ending September 30 to the Secretary on or before the 15th day of 
February of each year. The report shall contain information in the 
form required by the Secretary. The Corporation shall submit a sum-
mary of such report to the President and the Congress as part of the 
report required in section 396 (i). The Corporation shall provide other 
information in the form which the Secretary may require in order to 
carry out the functions of the Secretary under this subsection. 
"(5) Whenever the Secretary makes a final determination, pursuant 
to the rules and regulations which the Secretary shall prescribe, that 
a recipient is not in compliance with paragraph (1), the Secretary 
shall, within 10 days after such determination, notify the recipient in 
writing of such determination and request the recipient to secure 
compliance. Unless the recipient within 120 days after receipt of such 
written notice— 
"(A) demonstrates to the Secretary that the violation has been 
corrected; or 
"(B) enters into a compliance agreement approved by the 
Secretary ; 
the Secretary shall direct the Corporation to reduce or suspend any 
further payments of funds under this part to the recipient and the 
Corporation shall comply with such directive. Resumption of pay-
ments shall take place only when the Secretary certifies to the Cor-
poration that the recipient has entered into a compliance agreement 
approved by the Secretary, A recipient whose funds have been reduced 
or suspended under this paragraph may apply at any time to the Secre-
tary for such certification. 
"(c) Nothing in this section shall be construed to authorize any 
department, agency, officer, or employee of the United States to exer-
cise any direction, supervision, or control over the content or distribu-
tion of public telecommunications programs and services, or over the 
curriculum or program of instruction of any educational institution 
or school system.". 
Review. 
Monitoring of 
equal opportunity 
practices. 
Report. 
Report summary 
to President and 
Congress. 
Ante, p. 2414. 
Reduction or 
suspension of 
payments. 
92 STAT. 2422 
PUBLIC LAW 95-567—NOV. 2, 1978 
TITLE IV—MISCELLANEOUS PROVISIONS; 
EFFECTIVE DATE 
DEFINITIONS 
47 use 397. 
SEC. 401. Section 397 of the Communications Act of 1934 is amended 
to read as follows: 
(( 
DEFINITIONS 
"SEC. 397. For the purposes of this part— 
"(1) The term 'construction' (as applied to public telecommunica-
tions facilities) means acquisition (including acquisition by lease), 
installation, and modernization of public telecommunications facili-
ties and planning and preparatory steps incidental to any such acquisi-
tion, installation, or modernization. 
"(2) The term 'Corporation' means the Corporation for Public 
Broadcasting authorized to be established in subpart C. 
"(3) The term 'interconnection' means the use of microwave equip-
ment, boosters, translators, repeaters, communication space satellites, 
or other apparatus or equipment for the transmission and distribution 
of television or radio programs to public telecommunications entities. 
"(4) The term 'interconnection system' means any system of inter-
connection facilities used for the distribution of programs to public 
telecommunications entities. 
"(5) The term 'meeting' means the deliberations of at least the 
number of members of a governing or advisory body, or any com-
mittee thereof, required to take action on behalf of such body or com-
mittee where such deliberations determine or result in the joint 
conduct or disposition of the governing or advisory body's business, or 
the committee's business, as the case may be, but only to the extent that 
such deliberations relate to public broadcasting. 
"(6) The terms 'noncommercial educational broadcast station' and 
'public broadcast station' mean a television or radio broadcast station 
which— 
" (A) under the rules and regulations of the Commission in effect 
on the effective date of this paragraph, is eligible to be licensed 
by the Commission as a noncommercial educational radio or tele-
„ 
vision broadcast station and which is owned and operated by a 
public agency or nonprofit private foundation, corporation, or 
_
^
,
; association; or 
" (B) is owned and operated by a municipality and which trans-
mits only noncommercial programs for education purposes. 
"(7) The term 'noncommercial telecommunications entity' means 
any enterprise which— 
"(A) is owned and operated by a State, a political or special 
purpose subdivision of a State, a public agency, or a nonprofit 
private foundation, corporation, or association; and 
"(B) has been organized primarily for the purpose of dis-
seminating audio or video noncommercial educational and cul-
tural programs to the public by means other than a primary 
^' television or radio broadcast station, including, but not limited 
to, coaxial cable, optical fiber, broadcast translators, cassettes, 
discs, microwave, or laser transmission through the atmosphere. 
"(8) The term 'nonprofit' (as applied to any foundation, corpora-
tion, or association) means a foundation, corporation, or association, 
no part of the net earnings of which inures, or may lawfully inure, to 
the benefit of any private shareholder or individual. 
PUBLIC LAW 95-567—NOV. 2, 1978 
92 STAT. 2423 
"(9) The term 'non-Federal financial support' means the total 
value of cash and the fair market value of property and services 
(including, to the extent provided in the second sentence of this 
paragraph, the personal services of volunteers) received— 
"(A) as gifts, grants, bequests, donations, or other contribu-
tions for the construction or operation of noncommercial educa-
tional broadcast stations, or for the production, acquisition, 
distribution, or dissemination of educational television or radio 
programs, and related activities, from any source other than (i) 
the United States or any agency or instrumentality of the United 
States; or (ii) any public broadcasting entity; or 
"(B) as gifts, grants, donations, contributions, or payments 
from any State, or any educational institution, for the construe- -
tion or operation of noncommercial educational broadcast stations 
or for the production, acquisition, distribution, or dissemination 
of educational television or radio programs, or payments in 
exchange for services or materials with respect to the provision of 
educational or instructional television or radio programs. 
Such t«rm includes the fair market value of personal services of 
volunteers, as computed using the valuation standards established by 
the Corporation and approved by the Comptroller General pursuant 
to section 396(g) (5), but only with respect to such services provided Ante, p. 2412. 
to public telecommunications entities after such standards are 
approved by the Comptroller General and only, with respect to such 
an entity in a fiscal year, to the extent that the value of the services 
does not exceed 5 percent of the total non-Federal financial support 
i, T • • .. , 
of the entity in such fiscal year. 
"(10) The term 'preoperational expenses' means all nonconstruc-
tion costs incurred by new telecommunications entities before the 
date on which they begin providing service to the public, and all 
nonconstruction costs associated with expansion of existing entities 
before the date on which such expanded capacity is activated, except 
that such expenses shall not include any portion of the salaries of any 
personnel employed by an operating public telecommunications entity. 
"(11) The term 'public broadcasting entity' means the Corporation, 
any licensee or permittee of a public broadcast station, or any non-
profit institution engaged primarily in the production, acquisition, 
" ' 
' ' 
distribution, or dissemination of educational and cultural television or 
radio programs. 
" (12) The term 'public telecommunications entity' means any enter-
prise which— 
"(A) is a public broadcast station or a noncommercial tele-
communications entity; and 
"(B) disseminates public telecommunications services to the 
public. 
"(13) The term 'public telecommunications facilities' means appa-
ratus necessary for production, interconnection, captioning, broadcast, 
or other distribution of programming, including, but not limited to, 
studio equipment, cameras, microphones, audio and video storage or 
reproduction equipment, or both, signal processors and switchers, 
towers, antennas, transmitters, translators, microwave equipment, 
mobile^ equipment, satellite communications equipment, instructional 
television fixed service equipment, subsidiary communications author-
ization transmitting and receiving equipment, cable television 
equipment, video and audio cassettes and discs, optical fiber com-
munications equipment, and other means of transmitting, emitting. 
92 STAT. 2424 
PUBLIC LAW 95-5^7—NOV. 2, 1978 
storing, and receiving images and sounds, or intelligence, except that 
such term does not include the buildings to house such apparatus (other 
than small equipment shelters which are part of satellite earth sta-
tions, translators, microwave interconnection facilities, and similar 
facilities). 
"(14) The term 'public telecommunications services' means non-
commercial educational and cultural radio and television programs, 
and related noncommercial instructional or informational material 
that may be transmitted by means of electronic communications. 
"(15) The term 'Secretary' means the Secretary of Commerce when 
such term is used in subpart A, and the Secretary of Health, Educa-
tion, and Welfare when such term is used in subpart B, subpart C, and 
this subpart. 
"(16) The term 'State' includes the District of Columbia, the Com-
monwealth of Puerto Kico, the Virgin Islands, Guam, American 
Samoa, the Northern Mariana Islands, and the Trust Territory of 
the Pacific Islands. 
" (17) The term 'system of public telecommunications entities' means 
any combination of public telecommunications entities acting coopera-
tively to produce, acquire, or distribute programs, or to undertake 
related activities.". 
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION 
ANNUAL REPORT 
Report to 
SEC. 402. The National Telecommunications and Information 
Congress. 
Administration shall submit an annual report to the Congress not 
later than January 31 of each calendar year, beginning with calendar 
year 1980. Each such report shall relate to the preceding calendar year 
and shall contain information on the activities of the Administration 
with respect to domestic communications, international communica-
tions, Federal Government communications, spectrum plans and 
policies, and any other matters. 
EFFECTIVE DATE 
47 use 390 note. 
SEC. 403. The provisions of this Act, and the amendments made by 
this Act, shall take effect on the date of the enactment of this Act. 
Approved November 2, 1978. 
,
^ 
LEGISLATIVE HISTORY: 
HOUSE REPORTSt No. 95-1178 (Comm. on Interstate and Foreign Commerce) and No. 
95-1774 (Comm. of Conference). 
SENATE REPORT No. 95-858 accompanying S. 2883 (Comm. on Commerce, Science, 
and Transportation). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
July 10, considered and passed House. 
Sept. 19, considered and passed Senate, amended, in lieu of S. 2883. 
Oct. 13, House agreed to conference report. 
Oct. 14, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 44: 
Nov. 2, Presidential statement.