,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #cieg  ,,in ,,the ,,house ,,of  
,,representatives  ,july #be1 #bjai,mr4 
,butterfield 7for himself1 ,ms4 ,clarke 
of ,new ,york1 ,mr4 ,crdenas1 ,mr4      
,rush1 ,mr4 ,veasey1 and ,mr4 ,hastings7
 introduced the following bill2 which   
was referred to the ,committee on       
,energy and ,commerce1 and in addition  
to the ,committee on ,ways and ,means1  
for a period to be subsequently         
determined by the ,speaker1 in each case
 for consideration of such provisions as
 fall within the jurisdiction of the    
committee concerned  ,a ,,bill  ,to     
direct the ,federal ,communications     
,commission to take certain actions to  
increase diversity of ownership in the  
broadcasting industry1 and for other    
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,expanding          
,broadcast ,ownership ,opportunities    
,act of #bjai4  #b4 ,findings ,congress 
finds the following3  7#a7 ,one of the  
main missions of the ,federal           

,communications ,commission1 and a      
compelling governmental interest1 is to 
ensure that there is a diversity of     
ownership and viewpoints in the         
broadcasting industry4  7#b7 ,the       
,commission should continue to collect  
relevant data and conduct studies on    
such diversity and make appropriate     
recommendations to ,congress on how to  
increase the number of minority- and    
women-owned broadcast stations4  7#c7   
,data from #bjad shows that1 of the over
 #a1gjj commercial broadcast television 
stations in the ,united ,states1 less   
than #f percent are owned by women1 and 
less than #c percent are minority-owned4
 ,with respect to radio stations1 women 
owned approximately #g percent of ,,fm  
broadcast radio stations1 and minorities
 owned less than #c percent of such     
stations4  7#d7 ,women and minority     
ownership is #e to #aj times higher in  
other industries than in the            
broadcasting industry4  7#e7 ,during the
 #ag years that a minority tax          

certificate program was in place at the 
,commission 7from #aigh to #aiie71 the  
,commission issued #bhg certificates for
 radio stations and #dj certificates for
 television stations4  7#f7 ,the        
,commission can also support minority-  
and women-owned entrants into the       
broadcasting industry by implementing an
 incubator program in which existing    
licensees assist new entrants in the    
operation of broadcast stations4  #c4   
,,fcc reports to ,congress  7a7         
,biennial report containing             
recommendations for increasing number of
 minority- and women-,owned broadcast   
stations ,not later than #ahj days after
 the date of the enactment of this ,act1
 and not less frequently than every #b  
years thereafter1 the ,commission shall 
submit to ,congress a report containing 
recommendations for how to increase the 
total number of broadcast stations that 
are owned or controlled by members of   
minority groups or women1 or by both    
members of minority groups and women4   

7b7 ,biennial report on number of       
minority- and women-,owned broadcast    
stations ,not later than #ahj days after
 the date of the enactment of this ,act1
 and not less frequently than every #b  
years thereafter1 the ,commission shall 
submit to ,congress a report that states
 the total number of broadcast stations 
that are owned or controlled by members 
of minority groups or women1 or by both 
members of minority groups and women1   
based on data reported to the           
,commission on ,form #cbc4  #d4 ,tax    
certificate program for broadcast       
station transactions furthering         
ownership by socially disadvantaged     
individuals  7a7 ,requirements for      
issuance of certificate by ,,fcc  7#a7  
,in general ,part ,i of title ,,iii of  
the ,communications ,act of #aicd 7#dg  
,u4,s4,c4 #cja et seq47 is amended by   
adding at the end the following3  #cdd4 
,tax certificate program for broadcast  
station transactions furthering         
ownership by socially disadvantaged     

individuals  7a7 ,issuance of           
certificate by ,commission ,upon        
application by a person who engages in a
 sale of an interest in a broadcast     
station described in subsection 7b71    
subject to the rules adopted by the     
,commission under subsection 7c71 the   
,commission shall issue to such person a
 certificate stating that such sale     
meets the requirements of this section4 
7b7 ,sales described ,the sales         
described in this subsection are the    
following3 7#a7 ,sale resulting in or   
preserving ownership by socially        
disadvantaged individuals ,a sale of an 
interest in a broadcast station if1     
immediately following the sale1 the     
station is owned by socially            
disadvantaged individuals 7regardless of
 whether the station was owned by       
socially disadvantaged individuals      
before the sale74  7#b7 ,sale by        
investor in station owned by socially   
disadvantaged individuals ,in the case  
of a person who has contributed capital 

in exchange for an interest in a        
broadcast station that is owned by      
socially disadvantaged individuals1 a   
sale by such person of some or all of   
such interest4  7c7 ,rules ,the         
,commission shall adopt rules for the   
issuance of a certificate under         
subsection 7a7 that provide for the     
following3  7#a7 ,limit on value of sale
 ,a limit on the value of an interest   
the sale of which qualifies for the     
issuance of such a certificate4 ,the    
limit shall be no lower than #aj1jjj1jjj
 and no higher than #ej1jjj1jjj4  7#b7  
,minimum holding period ,in the case of 
a sale described in subsection 7b77#a71 
a minimum period following the sale     
during which the broadcast station must 
remain owned by socially disadvantaged  
individuals4 ,the minimum period shall  
be no longer than #c years4  7#c7       
,cumulative limit on number or value of 
sales ,a limit on the total number of   
sales or the total value of sales1 or   
both1 for which a person may be issued  

certificates under subsection 7a74  7#d7
 ,participation in station management by
 socially disadvantaged individuals     
,requirements for participation by      
socially disadvantaged individuals in   
the management of the broadcast station4
  7d7 ,annual report to ,congress ,the  
,commission shall submit to ,congress an
 annual report describing the sales for 
which certificates have been issued     
under subsection 7a7 during the period  
covered by the report4  7e7 ,definitions
 ,in this section3 7#a7 ,owned by       
socially disadvantaged individuals ,the 
term owned by socially disadvantaged    
individuals means1 with respect to a    
broadcast station1 that--  7,a7 such    
station is at least #ea percent owned by
 one or more socially disadvantaged     
individuals1 or1 in the case of any     
publicly owned broadcast station1 at    
least #ea percent of the stock of such  
station is owned by one or more socially
 disadvantaged individuals2 and  7,b7   
the management and daily business       

operations of such station are          
controlled by one or more of such       
individuals4  7#b7 ,socially            
disadvantaged individual ,the term      
socially disadvantaged individual means 
a woman or an individual who has been   
subjected to racial or ethnic prejudice 
or cultural bias because of the identity
 of the individual as a member of a     
group without regard to the individual  
qualities of the individual4  4  7#b7   
,deadline for adoption of rules ,the    
,commission shall adopt rules to        
implement section #cdd of the           
,communications ,act of #aicd1 as added 
by paragraph 7#a71 not later than #a    
year after the date of the enactment of 
this ,act4  7#c7 ,report to ,congress on
 program expansion ,not later than #f   
years after the date of the enactment of
 this ,act1 the ,commission shall submit
 to ,congress a report regarding whether
 ,congress should expand section #cdd of
 the ,communications ,act of #aicd1 as  
added by paragraph 7#a71 beyond         

broadcast stations to cover other       
entities regulated by the ,commission4  
7#d7 ,examination and report to         
,congress on nexus between diversity of 
ownership and diversity of viewpoint    
7,a7 ,examination ,not later than #fj   
days after the date of the enactment of 
this ,act1 the ,commission shall        
initiate an examination of whether there
 is a nexus between diversity of        
ownership or control of broadcast       
stations 7including ownership or control
 by members of minority groups or women1
 or by both members of minority groups  
and women7 and diversity of the         
viewpoints expressed in the matter      
broadcast by broadcast stations4  7,b7  
,report to ,congress ,not later than #b 
years after the date of the enactment of
 this ,act1 the ,commission shall submit
 to ,congress a report on the findings  
of the ,commission in the examination   
under subparagraph 7,a71 including      
supporting data4  7b7 ,nonrecognition of
 gain or loss for tax purposes  7#a7 ,in

 general ,subchapter ,o of chapter #a of
 the ,internal ,revenue ,code of #aihf  
is amended by inserting after part ,,iv 
the following new part3  ,v ,sale of    
,interest in ,certain ,broadcast        
,stations  #ajga4 ,nonrecognition of    
gain or loss from sale of interest in   
certain broadcast stations  7a7         
,nonrecognition of gain or loss ,if a   
sale of an interest in a broadcast      
station1 within the meaning of section  
#cdd of the ,communications ,act of     
#aicd1 is certified by the ,federal     
,communications ,commission under such  
section1 such sale shall1 if the        
taxpayer so elects1 be treated as an    
involuntary conversion of such property 
within the meaning of section #ajcc4    
,for purposes of such section as made   
applicable by the provisions of this    
section1 stock of a corporation         
operating a broadcast station shall be  
treated as property similar or related  
in service or use to the property so    
converted4 ,the part of the gain1 if    

any1 on such sale to which section #ajcc
 is not applied shall nevertheless not  
be recognized1 if the taxpayer so       
elects1 to the extent that it is applied
 to reduce the basis for determining    
gain or loss on any such sale1 of a     
character subject to the allowance for  
depreciation under section #afg1        
remaining in the hands of the taxpayer  
immediately after the sale1 or acquired 
in the same taxable year4 ,the manner   
and amount of such reduction shall be   
determined under regulations prescribed 
by the ,secretary4 ,any election made by
 the taxpayer under this section shall  
be made by a statement to that effect in
 his return for the taxable year in     
which the sale takes place1 and such    
election shall be binding for the       
taxable year and all subsequent taxable 
years4  7b7 ,minimum holding period2    
continued management ,if-- 7#a7 there is
 nonrecognition of gain or loss to a    
taxpayer under this section with respect
 to a sale of property 7determined      

without regard to this paragraph71 and  
7#b7 the taxpayer ceases to fulfill any 
requirements of the rules adopted by the
 ,federal ,communications ,commission   
under paragraph 7#b7 or 7#d7 of section 
#cdd7;c7 of the ,communications ,act of 
#aicd 7as such rules are in effect on   
the date of such sale71  there shall be 
no nonrecognition of gain or loss under 
this section to the taxpayer with       
respect to such sale1 except that any   
gain or loss recognized by the taxpayer 
by reason of this subsection shall be   
taken into account as of the date on    
which the taxpayer so ceases to fulfill 
such requirements4  7c7 ,basis ,for     
basis of property acquired on a sale    
treated as an involuntary conversion    
under subsection 7a71 see section       
#ajcc7;b74  4  7#b7 ,clerical amendment 
,the table of parts for subchapter ,o of
 chapter #a of the ,internal ,revenue   
,code of #aihf is amended by inserting  
after the item related to part ,,iv the 
following new part3  ,part ,v--,sale of 

,interest in ,certain ,broadcast        
,stations ,section #ajga4               
,nonrecognition of gain or loss from    
sale of interest in certain broadcast   
stations4  4  7c7 ,effective date ,the  
amendments made by this section shall   
apply with respect to sales of interests
 in broadcast stations after the date   
that is #a year after the date of the   
enactment of this ,act4  7d7 ,sunset    
,the amendments made by this section    
shall not apply with respect to sales of
 interests in broadcast stations after  
the date that is #af years after the    
date of the enactment of this ,act4  #e4
 ,incubator program ,not later than #ahj
 days after the date of the enactment of
 this ,act1 the ,commission shall amend 
its ,report and ,order in the matter of 
rules and policies to promote new entry 
and ownership diversity in the          
broadcasting services1 ,,mb ,docket ,no4
 #ag-bhi1 ,,fcc #ah-aad1 adopted on     
,august #b1 #bjah1 to do the following3 
7#a7 ,expand the incubator program      

provided for in such ,report and ,order 
to permit a licensee to provide         
financial support or operational        
support1 or both1 to a qualifying       
incubated entity that owns or wants to  
own a television broadcast station4     
7#b7 ,expand the eligibility criteria   
for an incubated entity under such      
program to include broadcast stations   
owned by socially disadvantaged         
individuals4  #f4 ,definitions ,in this 
,act3 7#a7 ,broadcast station ,the term 
broadcast station has the meaning given 
such term in section #c of the          
,communications ,act of #aicd 7#dg      
,u4,s4,c4 #aec74  7#b7 ,commission ,the 
term ,commission means the ,federal     
,communications ,commission4  7#c7      
,owned by socially disadvantaged        
individuals ,the term owned by socially 
disadvantaged individuals has the       
meaning given such term in section #cdd 
of the ,communications ,act of #aicd1 as
 added by section #d4