,,ii #aaith ,,congress #ast ,session ,s4 #babc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ah1 #bjbe,mr4 ,peters 7for himself1 ,mr4 ,blumenthal1 ,mr4 ,schatz1 ,mr4 ,heinrich1 ,ms4 ,baldwin1 ,ms4 ,klobuchar1 and ,mr4 ,lujn7 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 ,broadcast ,varied ,ownership ,incentives for ,community ,expanded ,service ,act or the ,broadcast ,,voices ,act4 #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 #cdf7;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 on the diversity described in paragraph 7#a71 adopt improvements to that data collection and related studies1 and make appropriate recommendations to ,congress regarding how to increase the number of minority- and women-owned broadcast stations4 7#c7 ,data from #bjbc shows that1 of the nearly #a1gfj full power commercial broadcast television stations in the ,united ,states1 only #e percent are owned by women and less than #d percent are minority-owned4 ,with respect to full power commercial radio stations1 women owned approximately #aj percent of ,,fm broadcast radio stations1 and minorities owned less than #c percent of those stations4 7#d7 ,in the #ag years that a minority tax certificate program was in place at the ,commission between #aigh and #aiie1 the ,commission issued #bhg certificates for radio stations1 and #dj certificates for television stations1 under that program4 #d4 ,,fcc reports to ,congress 7a7 ,biennial report containing recommendations for increasing number and value of broadcast stations owned by socially disadvantaged individuals ,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 number1 and the value1 of broadcast stations that are owned by socially disadvantaged individuals4 7b7 ,biennial report on number of broadcast stations owned by socially disadvantaged individuals ,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 by socially disadvantaged individuals1 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 #cdf4 ,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 more than #ej percent 7or some other percentage determined by the ,commission7 owned by #a or more socially disadvantaged individuals1 or1 in the case of any publicly traded broadcast station1 more than #ej percent 7or some other percentage determined by the ,commission7 of the securities of that 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 ,sale resulting in or preserving ownership and control by socially disadvantaged individuals ,a sale of an interest in a broadcast station if1 immediately after the sale1 the station is owned by socially disadvantaged individuals1 without regard to whether1 before the sale1 the station was owned by socially disadvantaged individuals4 7#b7 ,sale by investor in station owned by socially disadvantaged individuals ,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 ,limit on value of sale ,a limit on the value of an interest the sale of which qualifies for the issuance of such a certificate1 which shall be not greater than #ej1jjj1jjj4 7#b7 ,minimum holding period ,in the case of a sale described in subsection 7c77#a71 a minimum period after the sale during which the broadcast station shall remain owned by socially disadvantaged individuals1 which shall be not shorter than #b years and not longer than #c years4 7#c7 ,cumulative limit on number or value of sales ,a limit on the total number of sales per year or the total value of sales per year1 or both1 for which a person may be issued certificates under subsection 7b74 7#d7 ,participation in station management by socially disadvantaged individuals ,requirements for participation by socially disadvantaged individuals in the management of the broadcast station4 7#e7 ,certification 7,a7 ,in general ,in the case of a sale described in subsection 7c77#a71 a requirement that the buyer of the interest in the broadcast station certify1 every #ahj days during the minimum holding period adopted under paragraph 7#b71 compliance with the rules issued under that paragraph and paragraph 7#d74 7,b7 ,failure to comply ,with respect to a failure to make a certification required under subparagraph 7,a71 the ,commission shall-- 7i7 report the failure to the ,commissioner of ,internal ,revenue2 and 7ii7 include the failure in the report to ,congress submitted under subsection 7e7 that covers the period during which the failure occurred4 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 #cdf 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 #cdf 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 that is 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 stations ,sec4 #ajga4 ,nonrecognition of gain or loss from 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 #cdf 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 #cdf7;d7 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 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 ,credit for certain contributions with respect to broadcast stations 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de;,,bb4 ,credit for certain contributions with respect to broadcast stations 7a7 ,in general ,for purposes of section #ch1 the broadcast station contribution credit determined under this section for any taxable year is an amount equal to the fair market value of any broadcast station1 or any interest in a broadcast station1 which is contributed in a qualified contribution during such taxable year4 7b7 ,qualified contribution ,for purposes of this section-- 7#a7 ,in general ,the term qualified contribution means a contribution or gift to or for the use of an entity described in section #agj7;c77#b7 which has as a part of its charitable purpose the training of socially disadvantaged individuals in the management and operation of broadcast stations 7as certified by the ,federal ,communications ,commission71 but only if the recipient holds such station or interest for not less than #b years after the date of the contribution4 7#b7 ,socially disadvantaged individual ,the term socially disadvantaged individual has the meaning given such term in section #cdf7;a77#b7 of the ,communications ,act of #aicd4 7c7 ,broadcast station ,for purposes of this section1 the term broadcast station has the same meaning as when used in section #cdf of the ,communications ,act of #aicd4 7d7 ,denial of deduction ,no deduction shall be allowed under section #agj with respect to any contribution for which credit is allowed under this section4 4 7b7 ,credit ,to be part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the broadcast station contribution credit determined under section #de;,,bb7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,credit for certain contributions with respect to broadcast stations4 4 7d7 ,effective date ,the amendments made by this section shall apply to contributions made in taxable years beginning after the date of the enactment of this ,act4