Public Telecommunications Act of 1988
PL 100-626 (H.R.4118), enacted 11/07/1988

PUBLIC LAW 100-626—NOV. 7, 1988 
102 STAT. 3207 
Public Law 100-626 
100th Congress 
An Act 
To amend and extend the authorization of appropriations for pubhc broadcasting, 
Nov. 7, 1988 
and for other purposes. 
[H.R. 4118] 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
Public 
Telecommunications 
SHORT TITLE 
^^* of 1988. 
SECTION 1. This Act may be cited as the "Public Telecommuni- 47 use 609 note, 
cations Act of 1988". 
PUBUC TELECOMMUNICATIONS FACILITIES AUTHORIZATIONS 
SEC. 2. Section 391 of the Communications Act of 1934 (47 U.S.C. 
391) is amended— 
(1) by striking "and" after "1987,"; and 
(2) by inserting "$36,000,000 for fiscal year 1989, $39,000,000 
for fiscal year 1990, and $42,000,000 for fiscal year 1991," imme-
diately after "1988,". 
CORPORATION FOR PUBUC BROADCASTING AUTHORIZATIONS 
SEC. 3. Section 396(kXl)(C) of the Communications Act of 1934 (47 
U.S.C. 396(k)(lXC)) is amended— 
(1) by striking "and 1990" and inserting in lieu thereof "1990, 
1991,1992, and 1993"; 
(2) by striking "50 percent" and inserting in lieu thereof "40 
percent"; 
(3) by striking "and" after "fiscal year 1989,"; and 
(4) by inserting before the period at the end thereof the 
following: ", $245,000,000 for fiscal year 1991, $265,000,000 for 
fiscal year 1992, and $285,000,000 for fiscal year 1993". 
PUBLIC BROADCASTING SATELLITE INTERCONNECTION FUND 
SEC. 4. (a) Section 396(k) of the Communications Act of 1934 (47 
U.S.C. 396(k)) is amended by adding at the end thereof the following 
new paragraph: 
"(lOXA) There is hereby established in the Treasury a fund which 
shall be known as the Public Broadcasting Satellite Interconnection 
Fund (hereinafter in this subsection referred to as the 'Satellite 
Interconnection Fund'), to be administered by the Secretary of the 
Treasury. 
"(B) Tliere is authorized to be appropriated to the Satellite Inter-
connection Fund, for fiscal year 1991, the amount of $200,000,000. If 
such amount is not appropriated in full for fiscal year 1991, the 
portion of such amount not yet appropriated is authorized to be 
appropriated for fiscal years 1992 and 1993. Funds appropriated to 
the Satellite Interconnection Fund shall remain available until 
expended. 
102 STAT. 3208 
PUBLIC LAW 100-626—NOV. 7, 1988 
"(C) The Secretary of the Treasury shall make available and 
disburse to the Corporation, at the beginning of fiscal year 1991 and 
of each succeeding fiscal year thereafter, such funds as have been 
appropriated to the Satellite Interconnection Fund for the fiscal 
year in which such disbursement is to be made. 
"(D) Notwithstanding any other provision of this subsection 
except paragraphs (4), (5), (8), and (9), all funds appropriated to the 
Satellite Interconnection Fund and interest thereon— 
"(i) shall be distributed by the Corporation to the licensees 
and permittees of noncommercial educational television broad-
cast stations providing public telecommunications services or 
the national entity they designate for satellite interconnection 
purposes and to those public telecommunications entities 
participating in the public radio satellite interconnection 
system or the national entity they designate for satellite inter-
connection purposes, exclusively for the capital costs of the 
replacement, refurbishment, or upgrading of their national sat-
ellite interconnection systems and associated maintenance of 
such systems; and 
"(ii) shall not be used for the administrative costs of the 
Corporation, the salaries or related expenses of Corporation 
personnel and members of the Board, or for expenses of consult-
ants and advisers to the Corporation.". 
Reports. 
(b) On or before March 1, 1990, the Corporation for Public Broad-
47 use 396 note, casting, on behalf of the public radio and public television licensees 
and permittees (or their designated representatives), shall submit to 
Congress a report by such licensees or permittees (or their rep-
resentatives) detailing the satellite replacement needs of public 
radio and public television, the difference in cost between leasing 
satellite transponder capacity and buying such capacity, and the 
availability of private sector rather than Federal financing. 
FINDING WITH RESPECT TO CERTAIN PROGRAMMING 
SEC. 5. Section 396(a) of the Communications Act of 1934 (47 U.S.C. 
396(a)) is amended— 
(1) by redesignating paragraphs (6) and (7) as paragraphs (7) 
and (8), respectively; and 
(2) by inserting immediately after paragraph (5) the following 
new pars^aph: 
"(6) it is in the public interest to encourage the development 
of programming that involves creative risks and that addresses 
the needs of unserved and underserved audiences, particularly 
children and minorities;". 
EXERCISE OF BUSINESS JUDGMENT BY CORPORATION 
SEC. 6. Section 396(gX2XBXii) of the Communications Act of 1934 
(47 U.S.C. 396(gX2XBXii)) is amended by striking "contract or". 
ALLOCATION OF CORPORATION FUNDING 
SEC. 7. (a) Section 396(kX3XAXi) of the CJommunications Act of 
1934 (47 U.S.C. 396(kX3XAXi)) is amended— 
(1) by amending subclause (I) to read as follows: 
"(I) $10,200,000 shall be available for the administrative ex-
penses of the Corporation for fiscal year 1989, and for each 
succeeding fiscal year the amount which shall be available for 
PUBLIC LAW 100-626—NOV. 7, 1988 
102 STAT. 3209 
such administrative expenses shall be the sum of the amount 
made available to the Ck)rporation under this subclause for such 
expenses in the preceding fiscal year plus the greater of 4 
percent of such amount or a percentage of such amount equal to 
the percentage change in the Consumer Price Index, except that 
none of the amounts allocated under subclauses (II), (HI), and 
(IV) and clause (v) shall be used for any administrative expenses 
of the Corporation and not more than 5 percent of all the 
amounts appropriated into the Fund available for allocation for 
any fiscal year shall be available for such administrative 
expenses;"; 
(2) subclause (II) is amended to read as foUows: 
"(II) 6 percent of such amounts shall be available for expenses 
incurred by the Corporation for capital costs relating to tele-
communications satellites, the payment of progrgimming royal-
ties and other fees, the costs of interconnection facilities and 
operations (as provided in clause (ivXD), and grants which the 
(jorporation may make for assistance to stations that broadcast 
programs in langus^es other than English, and if the available 
funding level permits, for projects and activities that will en-
hance public broadcasting;"; and 
(3) in subclause (III), by striking "clause (ii)(D" and inserting 
in lieu thereof "clause (ii)". 
(b) Section 396(kX3XAXiiXID of the Communications Act of 1934 
(47 U.S.C. 396(kX3XAXiiXn)) is amended bv striking "for public" and 
inserting in lieu thereof the following: , and in accordance with 
any plan implemented under paragraph (6XA), for national public". 
(c) Clause (iii) of section 3960cX3XA) of the Communications Act of 
1934 (47 U.S.C. 396(kX3XA)) is amended to read as follows: 
"(iii) Of the amounts allocated under clause (i)(IV) for any fiscal 
year— 
"(I) 70 percent of such amounts shall be available for distribu-
tion among the licensees and permittees of public radio stations 
pursuant to paragraph (6XB); 
"(II) 7 percent of such amounts shall be available for distribu-
tion under subparagraph (BXD for public radio programiamg; 
and 
"(ni) 23 percent of such amounts shall be available for dis-
tribution among the licensees and permittees of public radio 
stations pursuant to paragraph (6)(B), solely to be used for 
acquiring or producing programming that is to be distributed 
nationally and is designed to serve the needs of a nationsd 
audience.". 
(d) Clause (v) of section 396(kX3XA) of the Communications Act of 
1934 (47 U.S.C. 396(kX3XA)) is amended to read as follows: 
"(v) Of the interest on the amounts appropriated into the Fund 
which is available for allocation for any fiscal year— 
"d) 75 percent shall be available for distribution for the 
purposes referred to in clause (ii)(II); and 
"(II) 25 percent shall be available for distribution for the 
purposes referred to in clause (iii) (II) and (HI).". 
(e) Section 396(kX3XAXivXI) of the Communications Act of 1934 (47 
U.S.C. 396(kX3XAXivXI)) is amended by striking "Subject to the 
provisions of clause (v)," and inserting in lieu thereof the following: 
From the amount provided pursuant to clause (iXH),". 
(f) Subparagraph (BXi) of section 396(kX3) of the Communications 
Act of 1934 (47 U.S.C. 396(kX3)) is amended to read as follows: 
102 STAT. 3210 
PUBLIC LAW 100-626—NOV. 7, 1988 
Grants. 
''(BXD The Corporation shall utilize the funds allocated pursuant 
to sid>paragraph (AXiiXII) and subparagraph (AKiiiXn) to make 
grants for production of public television or radio programs by 
independent producers and production entities and public tele-
communications entities, producers of national children's edu-
cational programming, and producers of programs addressing the 
needs and interests of minorities, and for acquisition of such pro-
grams by public telecommunications entities. The Corporation may 
make grants to public telecommunications entities and producers 
for the production of programs in languages other than English. Of 
the funds utilized pursuant to this clause, a substantial amount 
shall be distributed to independent producers and production enti-
ties, producers of national children's educational pn^ramming, and 
producers of programming addressing the needs and interests of 
minorities for the production of programs.". 
(g) Section 396(kX3) of the Communications Act of 1934 (47 U.S.C. 
396(kX3)) is amended by striking subparagraphs (C) and (D). 
(h) Paragraph (6XA) of section 396(k) of the Communications Act 
of 1934 (47 U.S.C. 396(k)) is amended to read as foUows: 
"(6XA) The Corporation shall conduct a study and prepare a plan, 
in consultation with public television licensees (or designated rep-
resentatives of those licensees) and the Public Broadcasting Service, 
on how funds available to the Corporation under paragraph 
(3XAXuXn) can be best allocated to meet the objectives of this Act 
with regard to national public television programming. The plan, 
which shall be based on the conclusions resulting from the study, 
shall be submitted by the Corporation to the Congress not later than 
January 31, 1990. Unless directed otherwise by an Act of Congress, 
the O)rporation shall implement the plan during the first fiscal year 
b^inning after the fiscal year in which the plan is submitted to 
Congress.". 
(i) Section 396(kX6XB) of the Communications Act of 1934 (47 
U.S.C. 396(kX6XB)) is amended by inserting immediately after the 
first sentence the following new sentence: "The Corporation shall 
assist radio stations to maintain and improve their service where 
public radio is the only broadcast service available.". 
(j) Section 396(kX7) of the Communications Act of 1934 (47 U.S.C. 
396(kX7)) is amended by inserting "(iiXD and (iiiXI)" immediately 
after "paragraph (3XA)". 
INDEPENDENT PRODUCTION 
SEC. 8. Section 396(kX3XB) of the Communications Act of 1934 (47 
U.S.C. 396(kX3XB)) is amended by adding at the end the following 
new clause: 
"(iiiXD For fiscal year 1990 and succeeding fiscal years, the Cor-
poration shall, in carrying out its oblations under clause (i) with 
respect to public television programming, provide adequate funds 
for an independent production service. 
"(n) Such independent production service shall be separate from 
the Corporation and shall be incorporated under the laws of the 
District of Columbia for the purpose of contracting with the Cor-
poration for the expenditure of funds for the production of public 
television programs by independent producers and independent 
production entities. 
"(QD The Corporation shall work with organizations or associa-
tions of independent producers or independent production entities to 
PUBLIC LAW 100-626—NOV. 7, 1988- 
102 STAT. 3211 
develop a plan and budget for the operation of such service that is 
acceptable to the Corporation. 
"(TV) The Corporation shall ensure that the funds provided to 
such independent production service shall be used exclusively in 
pursuit of the Corporation's obligation to expand the diversity and 
innovativeness of pn^amming available to public broadcasting. 
"(V) The Corporation shall report annually to Congress regarding Reports. 
the activities and expenditures of the independent production serv-
ice. At the end of fiscal year 1992, the Corporation shall submit a 
report to Congress evaluating the performance of the independent 
production service in light of its mission to expand the diversity and 
innovativeness of programming available to pubUc broadcasting.". 
NEEDS OF MINORmES AND OTHER GROUPS 
SEC. 9. (a) Section 396 of the Communications Act of 1934 (47 
U.S.C. 396) is amended by adding at the end the following new 
subsection: 
"(mXD Prior to July 1,1989, and every three years thereafter, the 
Corporation shall compile an assessment of the needs of minority 
and diverse audiences, the plans of public broadcasting entities and 
public telecommunications entities to address such needs, the ways 
radio and television can be used to help these underrepresented 
groups, and projections concerning minority employment by public 
broadcasting entities and public telecommunications entities. Such 
assessment shall address the needs of racial and ethnic minorities, 
new immigrant populations, people for whom English is a second 
language, and adults who lack basic reading skills. 
"(2) Commencing July 1, 1989, the Corporation shall prepare an Reports. 
annual report on the provision by public broadcasting entities and 
public telecommunications entities of service to the audiences de-
scribed in paragraph (1). Such report shall address pn^amming 
(including that which is produced by minority producers), training, 
minority employment, and efforts by the (Corporation to increase the 
nundber of minority puAilic radio and television stations eligible for 
finandal support from the Corporation. 
"(3) As soon as they have been prepared, each assessment and 
annual report required under paragraphs (1) and (2) shall be submit-
ted to Congress.". 
(b) Section 398(bXl) of the Communications Act of 1934 (47 U.S.C. 
3980i>Xl)) is amended by inserting, immediately after " 'recipients'),", 
the following: ''in accordance with the equal employment oppor-
tunity r^ulations of the Commission,". 
PRomBrnoN AGAINST EDITORIALIZING 
SEC. 10. (a) Section 399 of the (Communications Act of 1934 (47 
U.S.C. 399) is amended by striking the first sentence. 
(b) The heading of such section is amended by striking "EDrroRiAL-
IZING AND". 
SCRAMBLING OF PUBUC BROADCASTING SERVICE PROGRAMMING 
SEC. 11. Section 705 of the Communications Act of 1934 (47 U.S.C. 
605) is amended— 
(1) by redesignating subsections (c), (d), and (e) as subsections 
(d), (e), and (f), respectively; and 
102 STAT. 3212 
PUBLIC LAW 100-626-NOV. 7, 1988 
(2) by inserting after subsection (b) the following new subsec-
tion: 
"(c) No person shall encrypt or continue to encrypt satellite 
delivered programs included in the National Program Service of the 
Public Broadcasting Service and intended for public viewing by 
retransmission by television broadcast stations; except that as long 
as at least one unencrypted satellite transmission of any program 
subject to this subsection is provided, this subsection shall not 
prohibit additional encrjrpted satellite transmissions of the same 
program.". 
EFFECTIVE DATES 
47 use 391 note. 
ggg ]^2. This Act and the amendments made by this Act are 
effective on the date of enactment of this Act, except that the 
amendments made by sections 6 and 7(d) are effective on October 1, 
1989. 
Approved November 7, 1988. 
LEGISLATIVE HISTORY—H.R. 4118 (S. 2114): 
HOUSE REPORTS: No. 100-825 (Ctomm. on Energy and Commerce). 
SENATE REPORTS: No. 100-444 accompanying S. 2114 (Ctomm. on Commerce, 
Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Oct. 7, S. 2114 considered and passed Senate. 
Oc^. 19, H.R. 4118 considered and paired House. 
Oct. 20, considered and passed Senate.