,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bdcc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #a1 #bjai,mr4   
,pet]s 7= himself & ,mr4 ,s*atz7        
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,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 ( #bjai4  #b4       
,def9itions ,9 ?is ,act3  7#a7 ,broadca/
 /ation ,! t]m broadca/ /ation has !    
mean+ giv5 ! 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 disadvantag$ individuals ,!
 t]m own$ by socially disadvantag$      
individuals has ! mean+ giv5 ! t]m 9    
section #cdd7;a7 ( ! ,communications    
,act ( #aicd1 z add$ by section         

#e7;a77#a7 ( ?is ,act4  #c4 ,f9d+s      
,congress f9ds ! foll[+3 7#a7 ,"o ( !   
ma9 missions ( ! ,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 !     
div]sity describ$ 9 p>agraph 7#a7 & make
 appropriate recomm5dations to ,congress
 on h[ to increase ! numb] ( m9ority- & 
wom5-own$ broadca/ /ations4  7#c7 ,data 
f #bjad %[s t1 ( ! m ?an #a1gjj         
comm]cial broadca/ television /ations 9 
! ,unit$ ,/ates1 less ?an #f p]c5t are  
own$ by wom5 & less ?an #c p]c5t are    
m9ority-own$4 ,) respect to radio       
/ations1 wom5 own$ approximately #g     
p]c5t ( ,,fm broadca/ radio /ations &   
m9orities own$ less ?an #c p]c5t ( ^?   
/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> p]iod betwe5 #aigh & #aiie1 :5
 a m9ority tax c]tificate program 0 9   

place at ! ,commission1 ! ,commission   
issu$ to m9orities #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  #d4 ,,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 once 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 once e #b  

ye>s !reaft]1 ! ,commission %all submit 
to ,congress a report t id5tifies !     
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 #cbc ( !
 ,commission4  #e4 ,tax c]tificate      
program = broadca/ /ation transactions  
fur!r+ own]%ip by socially 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 disadvantag$        
individuals  7a7 ,def9itions ,9 ?is     
section3 7#a7 ,own$ by socially         
disadvantag$ individuals ,! t]m own$ by 
socially disadvantag$ individuals means1
 ) respect to a broadca/ /ation1 t--    
7,a7 ! /ation is at lea/ #ea p]c5t own$ 
by #a or m socially disadvantag$        

individuals1 or1 9 ! case ( any publicly
 own$ broadca/ /ation1 at lea/ #ea p]c5t
 ( ! /ock ( su* /ation is own$ by #a or 
m socially disadvantag$ individuals2 &  
7,b7 ! managem5t & daily bus9ess        
op]ations ( ! /ation are controll$ by #a
 or m socially disadvantag$ individuals4
  7#b7 ,socially disadvantag$ individual
 ,! t]m socially disadvantag$ individual
 means-- 7,a7 a woman2 or  7,b7 an      
individual :o has be5 subject$ to racial
 or e?nic prejudice or cultural bias    
because ( ! id5tity ( ! individual z a  
memb] ( a gr\p1 )\t reg>d to !          
individual qualities ( ! individual4    
7b7 ,issuance ( c]tificate by           
,commission ,subject to ! rules adopt$  
by ! ,commission "u subsection 7d71 ^u  
application by a p]son t engages 9 a    
sale describ$ 9 subsection 7c71 !       
,commission %all issue to t p]son a     
c]tificate /at+ t ! sale meets !        
requirem5ts ( ?is section4  7c7 ,sales  
describ$ ,a sale describ$ 9 ?is         
subsection is ei!r ( ! foll[+3 7#a7 ,a  

sale ( an int]e/ 9 a broadca/ /ation t  
results 9 ! /ation be+ own$ by socially 
disadvantag$ individuals4  7#b7 ,9 !    
case ( a p]son t has contribut$ capital 
9 ex*ange = an int]e/ 9 a broadca/      
/ation t is own$ by socially            
disadvantag$ individuals1 a sale by t   
p]son ( "s or all ( t int]e/4  7d7      
,rules ,! ,commission %all adopt rules =
 ! issuance ( a c]tificate "u subsection
 7b7 t provide = ! foll[+3  7#a7 ,a     
limit on ! value ( an int]e/ ! sale (   
:i* qualifies = ! issuance ( su* a      
c]tificate1 :i* %all be n less ?an      
#aj1jjj1jjj & n great] ?an #ej1jjj1jjj4 
7#b7 ,9 ! case ( a sale describ$ 9      
subsection 7c77#a71 a m9imum p]iod ( n  
long] ?an #c ye>s aft] ! sale dur+ :i* !
 broadca/ /ation %all rema9 own$ by     
socially disadvantag$ individuals4  7#c7
 ,a limit on ! total numb] ( sales or ! 
total value ( sales1 or bo?1 = :i* a    
p]son may be issu$ c]tificates "u       
subsection 7b74  7#d7 ,requirem5ts =    
p>ticipation by socially disadvantag$   

individuals 9 ! managem5t ( ! broadca/  
/ation4  7e7 ,annual report to ,congress
 ,! ,commission %all submit to ,congress
 an annual report describ+ ! sales = :i*
 c]tificates h be5 issu$ "u subsection  
7b7 dur+ ! p]iod cov]$ by ! report4  4  
7#b7 ,deadl9e = issuance ( rules ,n lat]
 ?an #a ye> aft] ! date ( enactm5t ( ?is
 ,act1 ! ,commission %all issue rules to
 implem5t section #cdd ( !              
,communications ,act ( #aicd1 z add$ by 
p>agraph 7#a74  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 ,exam9ation & report 
to ,congress on nexus betwe5 div]sity ( 
own]%ip & div]sity ( viewpo9t  7,a7     
,exam9ation ,n lat] ?an #fj days aft] ! 
date ( enactm5t ( ?is ,act1 !           

,commission %all initiate an exam9ation 
( :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  7,b7 ,report to     
,congress ,n lat] ?an #b ye>s aft] !    
date ( enactm5t ( ?is ,act1 !           
,commission %all submit to ,congress a  
report on ! f9d+s ( ! ,commission 9 !   
exam9ation "u subp>agraph 7,a71 includ+ 
support+ data4  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/     
stations,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  #f4 ,incubator program ,n    
lat] ?an #ahj days aft] ! date (        
enactm5t ( ?is ,act1 ! ,commission %all 
am5d its ,report & ,ord] 9 ! matt] (    
rules & policies to promote new entry & 
own]%ip div]sity 9 ! broadca/+ s]vices1 
,,mb ,docket ,no4 #ag-bhi1 ,,fcc        
#ah-aad1 adopt$ on ,augu/ #b1 #bjah1 to 
d ! foll[+3  7#a7 ,exp& ! incubator     
program provid$ = 9 su* ,report & ,ord] 

to p]mit a lic5see to provide f9ancial  
support or op]ational support1 or bo?1  
to a qualify+ incubat$ entity t owns or 
wants to own a television broadca/      
/ation4  7#b7 ,exp& ! eligibility       
crit]ia = an incubat$ entity "u su*     
program to include broadca/ /ations own$
 by socially disadvantag$ individuals4