,,ii  #aafth ,,congress  #ast ,session  
,s4 #bdcc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #a1    
#bjai,mr4 ,peters 7for himself and ,mr4 
,schatz7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,finance  ,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 ,definitions ,in    
this ,act3  7#a7 ,broadcast station ,the
 term broadcast station has the meaning 
given the 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 the term in section       
#cdd7;a7 of the ,communications ,act of 
#aicd1 as added by section #e7;a77#a7 of
 this ,act4  #c4 ,findings ,congress    
finds the following3 7#a7 ,one of the   
main missions of the ,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 the
 diversity described in paragraph 7#a7  
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 more than #a1gjj commercial
 broadcast television stations in the   
,united ,states1 less than #f percent   
are owned by women and less than #c     
percent are minority-owned4 ,with       
respect to radio stations1 women owned  
approximately #g percent of ,,fm        
broadcast radio stations and minorities 

owned less than #c percent of those     
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-year period between #aigh and      
#aiie1 when a minority tax certificate  
program was in place at the ,commission1
 the ,commission issued to minorities   
#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  #d4 ,,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  
enactment of this ,act1 and not less    
frequently than once 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 enactment of this ,act1 and
 not less frequently than once every #b 
years thereafter1 the ,commission shall 
submit to ,congress a report that       
identifies 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 #cbc of the       
,commission4  #e4 ,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 ,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 the     
station is at least #ea percent owned by
 #a 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 #a or more socially 
disadvantaged individuals2 and  7,b7 the
 management and daily business          
operations of the station are controlled
 by #a or more socially disadvantaged   
individuals4  7#b7 ,socially            

disadvantaged individual ,the term      
socially disadvantaged individual       
means-- 7,a7 a woman2 or  7,b7 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 group1      
without regard to the individual        
qualities of the individual4  7b7       
,issuance of certificate by ,commission 
,subject to the rules adopted by the    
,commission under subsection 7d71 upon  
application by a person that engages in 
a sale described in subsection 7c71 the 
,commission shall issue to that person a
 certificate stating that the sale meets
 the requirements of this section4  7c7 
,sales described ,a sale described in   
this subsection is either of the        
following3 7#a7 ,a sale of an interest  
in a broadcast station that results in  
the station being owned by socially     
disadvantaged individuals4  7#b7 ,in the
 case of a person that has contributed  
capital in exchange for an interest in a

 broadcast station that is owned by     
socially disadvantaged individuals1 a   
sale by that person of some or all of   
that interest4  7d7 ,rules ,the         
,commission shall adopt rules for the   
issuance of a certificate under         
subsection 7b7 that provide for the     
following3  7#a7 ,a limit on the value  
of an interest the sale of which        
qualifies for the issuance of such a    
certificate1 which shall be not less    
than #aj1jjj1jjj and not greater than   
#ej1jjj1jjj4  7#b7 ,in the case of a    
sale described in subsection 7c77#a71 a 
minimum period of not longer than #c    
years after the sale during which the   
broadcast station shall remain owned by 
socially disadvantaged individuals4     
7#c7 ,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 7b74  7#d7
 ,requirements for participation by     
socially disadvantaged individuals in   
the management of the broadcast station4

  7e7 ,annual report to ,congress ,the  
,commission shall submit to ,congress an
 annual report describing the sales for 
which certificates have been issued     
under subsection 7b7 during the period  
covered by the report4  4  7#b7         
,deadline for issuance of rules ,not    
later than #a year after the date of    
enactment of this ,act1 the ,commission 
shall issue rules to implement section  
#cdd of the ,communications ,act of     
#aicd1 as added by paragraph 7#a74  7#c7
 ,report to ,congress on program        
expansion ,not later than #f years after
 the date of 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 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 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 stations4 

#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 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 enactment
 of this ,act4  #f4 ,incubator program  
,not later than #ahj days after the date
 of 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