,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #ahhc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #d1 #bjag,mr4  
,butt]field introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,en]gy &   
,comm]ce1 & 9 addition to ! ,committee  
on ,ways & ,means1 = a p]iod to be      
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to direct ! ,f$]al 
,communications ,commission to take     
c]ta9 actions to increase div]sity (    
own]%ip 9 ! broadca/+ indu/ry1 & = o!r  
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,exp&+ ,broadca/ ,own]%ip  
,opportunities ,act ( #bjag4  #b4 ,f9d+s
 ,congress f9ds ! foll[+3  7#a7 ,"o ( ! 
ma9 missions ( ! ,f$]al ,communications 
,commission1 & a compell+ gov]nm5tal    
int]e/1 is to ensure t !re is a div]sity
 ( own]%ip & viewpo9ts 9 ! broadca/+    
indu/ry4  7#b7 ,! ,commission %\ld      
cont9ue to collect relevant data &      
conduct /udies on su* div]sity & make   

appropriate recomm5dations to ,congress 
on h[ to increase ! numb] ( m9ority- &  
wom5-own$ broadca/ /ations4  7#c7 ,data 
f #bjad %[s t1 ( ! ov] #a1gjj comm]cial 
broadca/ television /ations 9 ! ,unit$  
,/ates1 less ?an #f p]c5t are own$ by   
wom51 & less ?an #c p]c5t are           
m9ority-own$4 ,) respect to radio       
/ations1 wom5 own$ approximately #g     
p]c5t ( ,,fm broadca/ radio /ations1 &  
m9orities own$ less ?an #c p]c5t ( su*  
/ations4  7#d7 ,wom5 & m9ority own]%ip  
is #e to #aj times high] 9 o!r indu/ries
 ?an 9 ! broadca/+ indu/ry4  7#e7 ,dur+ 
! #ag ye>s t a m9ority tax c]tificate   
program 0 9 place at ! ,commission 7f   
#aigh to #aiie71 ! ,commission issu$    
#bhg c]tificates = radio /ations & #dj  
c]tificates = television /ations4  7#f7 
,! ,commission c also support m9ority- &
 wom5-own$ entrants into ! broadca/+    
indu/ry by implem5t+ an incubator       
program 9 :i* exi/+ lic5sees assi/ new  
entrants 9 ! op]ation ( broadca/        
/ations4  #c4 ,,fcc reports to ,congress

  7a7 ,bi5nial report conta9+           
recomm5dations = increas+ numb] (       
m9ority- & wom5-,own$ broadca/ /ations  
,n lat] ?an #ahj days aft] ! date ( !   
enactm5t ( ?is ,act1 & n less frequ5tly 
?an e #b ye>s !reaft]1 ! ,commission    
%all submit to ,congress a report       
conta9+ recomm5dations = h[ to increase 
! total numb] ( broadca/ /ations t are  
own$ or controll$ by memb]s ( m9ority   
gr\ps or wom51 or by bo? memb]s (       
m9ority gr\ps & wom54  7b7 ,bi5nial     
report on numb] ( m9ority- & wom5-,own$ 
broadca/ /ations ,n lat] ?an #ahj days  
aft] ! date ( ! enactm5t ( ?is ,act1 & n
 less frequ5tly ?an e #b ye>s !reaft]1 !
 ,commission %all submit to ,congress a 
report t /ates ! total numb] ( broadca/ 
/ations t are own$ or controll$ by      
memb]s ( m9ority gr\ps or wom51 or by   
bo? memb]s ( m9ority gr\ps & wom51 bas$ 
on data report$ to ! ,commission on ,=m 
#cbc4  #d4 ,tax c]tificate program =    
broadca/ /ation transactions fur!r+     
own]%ip by socially & economically      

disadvantag$ individuals  7a7           
,requirem5ts = issuance ( c]tificate by 
,,fcc  7#a7 ,9 g5]al ,"p ,i ( title     
,,iii ( ! ,communications ,act ( #aicd  
7#dg ,u4,s4,c4 #cja et seq47 is am5d$ by
 add+ at ! end ! foll[+3  #cdd4 ,tax    
c]tificate program = broadca/ /ation    
transactions fur!r+ own]%ip by socially 
& economically disadvantag$ individuals 
7a7 ,issuance ( c]tificate by           
,commission ,^u application by a p]son  
:o engages 9 a sale ( an int]e/ 9 a     
broadca/ /ation describ$ 9 subsection   
7b71 subject to ! rules adopt$ by !     
,commission "u subsection 7c71 !        
,commission %all issue to su* p]son a   
c]tificate /at+ t su* sale meets !      
requirem5ts ( ?is section4  7b7 ,sales  
describ$ ,! sales describ$ 9 ?is        
subsection are ! foll[+3 7#a7 ,sale     
result+ 9 own]%ip by socially &         
economically disadvantag$ individuals ,a
 sale--  7,a7 ( an int]e/ 9 a broadca/  
/ation t1 be=e su* sale1 is n own$ by   
socially & economically disadvantag$    

individuals2 &  7,b7 t results 9 !      
/ation be+ own$ by socially &           
economically disadvantag$ individuals4  
7#b7 ,sale by inve/or 9 /ation own$ by  
socially & economically disadvantag$    
individuals ,9 ! case ( a p]son :o has  
contribut$ capital 9 ex*ange = an int]e/
 9 a broadca/ /ation t is own$ by       
socially & economically disadvantag$    
individuals1 a sale by su* p]son ( "s or
 all ( su* int]e/4  7c7 ,rules ,!       
,commission %all adopt rules = !        
issuance ( a c]tificate "u subsection   
7a7 t provide = ! foll[+3  7#a7 ,limit  
on value ( sale ,a limit on ! value ( an
 int]e/ ! sale ( :i* qualifies = !      
issuance ( su* a c]tificate4  7#b7      
,m9imum hold+ p]iod ,9 ! case ( a sale  
describ$ 9 subsection 7b77#a71 a m9imum 
p]iod foll[+ ! sale dur+ :i* ! broadca/ 
/ation mu/ rema9 own$ by socially &     
economically disadvantag$ individuals4  
7#c7 ,cumulative limit on numb] or value
 ( sales ,a limit on ! total numb] (    
sales or ! total value ( sales1 or bo?1 

= :i* a p]son may be issu$ c]tificates  
"u subsection 7a74  7#d7 ,p>ticipation 9
 /ation managem5t by socially &         
economically disadvantag$ individuals   
,requirem5ts = p>ticipation by socially 
& economically disadvantag$ individuals 
9 ! managem5t ( ! broadca/ /ation4  7d7 
,annual report to ,congress ,!          
,commission %all submit to ,congress an 
annual report describ+ ! sales = :i*    
c]tificates h be5 issu$ "u subsection   
7a7 dur+ ! p]iod cov]$ by ! report4  7e7
 ,def9itions ,9 ?is section3 7#a7 ,own$ 
by socially & economically disadvantag$ 
individuals ,! t]m own$ by socially &   
economically disadvantag$ individuals   
means1 ) respect to a broadca/ /ation1  
t--  7,a7 su* /ation is at lea/ #ea     
p]c5t own$ by "o or m socially &        
economically disadvantag$ individuals1  
or1 9 ! case ( any publicly own$        
broadca/ /ation1 at lea/ #ea p]c5t ( !  
/ock ( su* /ation is own$ by "o or m    
socially & economically disadvantag$    
individuals2 &  7,b7 ! managem5t & daily

 bus9ess op]ations ( su* /ation are     
controll$ by "o or m ( su* individuals4 
7#b7 ,socially & economically           
disadvantag$ individual ,! t]m socially 
& economically disadvantag$ individual  
means an individual :o is socially &    
economically disadvantag$4 ,!           
,commission %all presume t socially &   
economically disadvantag$ individuals   
include--  7,a7 ,black ,am]icans1       
,hispanic ,am]icans1 ,native ,am]icans1 
,asian ,pacific ,am]icans1 & o!r        
m9orities2 &  7,b7 wom54  7#c7 ,socially
 disadvantag$ individual ,! t]m socially
 disadvantag$ individual means an       
individual :o has be5 subject$ to racial
 or e?nic prejudice or cultural bias    
because ( ! id5tity ( ! individual z a  
memb] ( a gr\p )\t reg>d to ! individual
 qualities ( ! individual4  7#d7        
,economically disadvantag$ individual ,!
 t]m economically disadvantag$          
individual means a socially disadvantag$
 individual ^: ability to compete 9 !   
free ent]prise sy/em has be5 impair$ due

 to dim9i%$ capital & cr$it             
opportunities z comp>$ to o!rs 9 ! same 
bus9ess area :o are n socially          
disadvantag$4 ,9 det]m9+ ! degree (     
dim9i%$ cr$it & capital opportunities1 !
 ,commission %all consid]1 b n be limit$
 to1 ! assets & net wor? ( su* socially 
disadvantag$ individual4  4  7#b7       
,deadl9e = adoption ( rules ,!          
,commission %all adopt rules to implem5t
 section #cdd ( ! ,communications ,act (
 #aicd1 z add$ by p>agraph 7#a71 n lat] 
?an #a ye> aft] ! date ( ! enactm5t (   
?is ,act4  7#c7 ,report to ,congress on 
program expansion ,n lat] ?an #f ye>s   
aft] ! date ( ! enactm5t ( ?is ,act1 !  
,commission %all submit to ,congress a  
report reg>d+ :e!r ,congress %\ld exp&  
section #cdd ( ! ,communications ,act ( 
#aicd1 z add$ by p>agraph 7#a71 beyond  
broadca/ /ations to cov] o!r entities   
regulat$ by ! ,commission4  7#d7 ,report
 to ,congress on nexus betwe5 div]sity (
 own]%ip & div]sity ( viewpo9t ,n lat]  
?an #f ye>s aft] ! date ( ! enactm5t (  

?is ,act1 & n less frequ5tly ?an e #e   
ye>s !reaft] until ! am5dm5ts made by   
?is section cease to apply 9 accordance 
) subsection 7d71 ! ,commission %all    
submit to ,congress a report1 includ+   
support+ data1 on :e!r !re is a nexus   
betwe5 div]sity ( own]%ip or control (  
broadca/ /ations 7includ+ own]%ip or    
control by memb]s ( m9ority gr\ps or    
wom51 or by bo? memb]s ( m9ority gr\ps &
 wom57 & div]sity ( ! viewpo9ts express$
 9 ! matt] broadca/ by broadca/ /ations4
  7b7 ,nonrecognition ( ga9 or loss =   
tax purposes  7#a7 ,9 g5]al ,sub*apt] ,o
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] "p ,,iv !
 foll[+ new "p3  ,v ,sale ( int]e/ 9    
c]ta9 broadca/ /ations4  #ajga4         
,nonrecognition ( ga9 or loss f sale (  
int]e/ 9 c]ta9 broadca/ /ations  7a7    
,nonrecognition ( ,ga9 or ,loss ,if a   
sale ( an int]e/ 9 a broadca/ /ation1 )9
 ! mean+ ( section #cdd ( !             
,communications ,act ( #aicd1 is c]tifi$
 by ! ,f$]al ,communications ,commission

 "u su* section1 su* sale %all1 if !    
taxpay] s elects1 be treat$ z an        
involunt>y conv]sion ( su* prop]ty )9 ! 
mean+ ( section #ajcc4 ,= purposes ( su*
 section z made applicable by !         
provisions ( ?is section1 /ock ( a      
corporation op]at+ a broadca/ /ation    
%all be treat$ z prop]ty simil> or      
relat$ 9 s]vice or use to ! prop]ty s   
conv]t$4 ,! "p ( ! ga91 if any1 on su*  
sale to :i* section #ajcc is n appli$   
%all nev]!less n be recogniz$1 if !     
taxpay] s elects1 to ! ext5t t x is     
appli$ to r$uce ! basis = det]m9+ ga9 or
 loss on any su* sale1 ( a "* subject to
 ! all[ance = depreciation "u section   
#afg1 rema9+ 9 ! h&s ( ! taxpay]        
imm$iately aft] ! sale1 or acquir$ 9 !  
same taxable ye>4 ,! mann] & am\nt ( su*
 r$uction %all be det]m9$ "u regulations
 prescrib$ by ! ,secret>y4 ,any election
 made by ! taxpay] "u ?is section %all  
be made by a /atem5t to t effect 9 8    
return = ! taxable ye> 9 :i* ! sale     
takes place1 & su* election %all be b9d+

 = ! taxable ye> & all subsequ5t taxable
 ye>s4  7b7 ,m9imum hold+ p]iod2 cont9u$
 managem5t ,if-- 7#a7 !re is            
nonrecognition ( ga9 or loss to a       
taxpay] "u ?is section ) respect to a   
sale ( prop]ty 7det]m9$ )\t reg>d to ?is
 p>agraph71 &  7#b7 ! taxpay] ceases to 
fulfill any requirem5ts ( ! rules adopt$
 by ! ,f$]al ,communications ,commission
 "u p>agraph 7#b7 or 7#d7 ( section     
#cdd7;c7 ( ! ,communications ,act (     
#aicd 7z su* rules are 9 effect on !    
date ( su* sale71  !re %all be no       
nonrecognition ( ga9 or loss "u ?is     
section to ! taxpay] ) respect to su*   
sale1 except t any ga9 or loss recogniz$
 by ! taxpay] by reason ( ?is subsection
 %all be tak5 into acc\nt z ( ! date on 
:i* ! taxpay] s ceases to fulfill su*   
requirem5ts4  7c7 ,basis ,= basis (     
prop]ty acquir$ on a sale treat$ z an   
involunt>y conv]sion "u subsection 7a71 
see section #ajcc7;b74  4  7#b7 ,cl]ical
 am5dm5t ,! table ( p>ts = sub*apt] ,o (
 *apt] #a ( ! ,int]nal ,rev5ue ,code (  

#aihf is am5d$ by ins]t+ aft] ! item    
relat$ to "p ,,iv ! foll[+ new "p3  ,"p 
,v--,sale ( int]e/ 9 c]ta9 broadca/     
/ations ,section #ajga4 ,nonrecognition 
( ga9 or loss f sale ( int]e/ 9 c]ta9   
broadca/ /ations4  4  7c7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply ) respect to sales ( int]e/s 
9 broadca/ /ations aft] ! date t is #a  
ye> aft] ! date ( ! enactm5t ( ?is ,act4
  7d7 ,sunset ,! am5dm5ts made by ?is   
section %all n apply ) respect to sales 
( int]e/s 9 broadca/ /ations aft] ! date
 t is #af ye>s aft] ! date ( ! enactm5t 
( ?is ,act4  #e4 ,incubator pilot       
program  7a7 ,9 g5]al ,n lat] ?an #ahj  
days aft] ! date ( ! enactm5t ( ?is     
,act1 ! ,commission %all e/abli% a      
program "u :i* ! ,commission may grant a
 waiv] ( p>agraph 7a71 7b71 or 7c7 (    
section #gc4ceee ( title #dg1 ,code (   
,f$]al ,regulations1 to a lic5see ( a   
broadca/ /ation to enable ! lic5see to  
acquire an int]e/ t w\ld o!rwise be     
prohibit$ by su* p>agraph 9 a broadca/  

/ation t is own$ by socially &          
economically disadvantag$ individuals4  
7b7 ,report to ,congress ,! ,commission 
%all submit to ,congress a report on !  
effectiv5ess ( ! program e/abli%$ "u    
subsection 7a7 n lat] ?an ! date t is #d
 ye>s aft] ! date on :i* ! ,commission  
e/abli%es ! program "u su* subsection4  
7c7 ,sunset ,! ,commission may n grant a
 waiv] "u subsection 7a7 aft] ! date t  
is #e ye>s aft] ! date on :i* !         
,commission e/abli%es ! program "u su*  
subsection4  #f4 ,def9itions ,9 ?is     
,act3 7#a7 ,broadca/ /ation ,! t]m      
broadca/ /ation has ! mean+ giv5 su* t]m
 9 section #c ( ! ,communications ,act (
 #aicd 7#dg ,u4,s4,c4 #aec74  7#b7      
,commission ,! t]m ,commission means !  
,f$]al ,communications ,commission4     
7#c7 ,own$ by socially & economically   
disadvantag$ individuals ,! t]m own$ by 
socially & economically disadvantag$    
individuals has ! mean+ giv5 su* t]m 9  
section #cdd ( ! ,communications ,act ( 
#aicd1 z add$ by section #d4