Broadcast Diversity in Leadership Act

I 116TH CONGRESS 2D SESSION H. R. 8154 To direct the Federal Communications Commission to establish a broadcast incubator program to support the entry of new and diverse voices in the broadcasting industry by providing for an established broadcaster and an emerging broadcaster to enter into a qualifying incubation rela- tionship. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 1, 2020 Mr. WALDEN introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To direct the Federal Communications Commission to estab- lish a broadcast incubator program to support the entry of new and diverse voices in the broadcasting industry by providing for an established broadcaster and an emerging broadcaster to enter into a qualifying incuba- tion relationship. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Broadcast Diversity 4 in Leadership Act’’. 5 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 8154 IH SEC. 2. BROADCAST INCUBATOR PROGRAM. 1 (a) FINDINGS.—Congress finds the following: 2 (1) Our Nation continues to respond to the on- 3 going COVID–19 pandemic, and all Americans must 4 have access to accurate, reliable information. 5 (2) Americans are fighting racial injustice, and 6 promoting local and diverse media will play an im- 7 portant role in limiting misinformation. 8 (3) Congress should commit to promoting 9 media diversity and pledging to work with media en- 10 tities and diverse stakeholders to develop common- 11 ground solutions to eliminate barriers to media di- 12 versity. 13 (4) The principle that an informed and engaged 14 electorate is critical to a vibrant democracy is deeply 15 rooted in our laws of free speech and underpins the 16 virtues on which we established our Constitution: ‘‘in 17 Order to form a more perfect Union, establish Jus- 18 tice, insure domestic Tranquility, provide for the 19 common defence, promote the general Welfare, and 20 secure the Blessings of Liberty to ourselves and our 21 Posterity’’. 22 (5) Having independent, diverse, and local 23 media that provide exposure to a broad range of 24 viewpoints and the ability to contribute to the polit- 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 8154 IH ical debate is central to sustaining informed engage- 1 ment. 2 (6) It is in the public interest to encourage 3 source, content, and audience diversity on our Na- 4 tion’s shared media platforms. 5 (7) The survival of small, independent, and di- 6 verse media outlets that serve diverse audiences and 7 local media markets is essential to preserving local 8 culture and building understanding on important 9 community issues that impact the daily lives of resi- 10 dents. 11 (8) Research by the American Society of News 12 Editors, the Radio Television Digital News Associa- 13 tion, the Pew Research Center, and others has docu- 14 mented the continued challenges of increasing diver- 15 sity among all types of media entities. 16 (9) With increasing media experience and so- 17 phistication, it is even more important to have mi- 18 nority participation in local media to ensure a di- 19 verse range of information sources are available and 20 different ideas and viewpoints are expressed to 21 strengthen social cohesion among different commu- 22 nities. 23 (10) The constriction in small, independent, 24 and diverse media outlets and limited participation 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 8154 IH of diverse populations in media ownership and deci- 1 sionmaking are combining to negatively impact our 2 goal of increasing local civic engagement and civic 3 knowledge through increased voter participation, 4 membership in civic groups, and knowledge of local 5 political and civil information. 6 (11) The Advisory Committee on Diversity and 7 Digital Empowerment of the Commission, and pred- 8 ecessor Federal advisory committees, have rec- 9 ommended for decades that the Commission adopt 10 an incubator program providing structural rule 11 changes to facilitate new and diverse entrants into 12 the marketplace. 13 (12) The Broadcast Incubator Program estab- 14 lished under this section is consistent with the na- 15 tional policy described in section 257(b) of the Com- 16 munications Act of 1934 (47 U.S.C. 257(b)): ‘‘to 17 promote the policies and purposes of this Act favor- 18 ing diversity of media voices, vigorous economic com- 19 petition, technological advancement, and promotion 20 of the public interest, convenience, and necessity’’. 21 (b) ESTABLISHMENT.—Not later than 270 days after 22 the date of the enactment of this Act, the Commission 23 shall promulgate regulations establishing a program, to be 24 known as the ‘‘Broadcast Incubator Program’’, to support 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 8154 IH the entry of new and diverse voices in the broadcasting 1 industry by providing for an established broadcaster and 2 an emerging broadcaster to enter into a qualifying incuba- 3 tion relationship with respect to one or more incubated 4 stations of the emerging broadcaster. 5 (c) QUALIFYING INCUBATION RELATIONSHIP.— 6 (1) REQUIREMENTS.—The Commission shall 7 establish in the regulations promulgated under sub- 8 section (b) requirements for a qualifying incubation 9 relationship under the Program that include the fol- 10 lowing: 11 (A) Eligibility criteria that an established 12 broadcaster and an emerging broadcaster shall 13 meet in order to enter into such relationship, 14 including— 15 (i) a limit, expressed in terms of a 16 number of broadcast stations, on how 17 many broadcast stations of which an 18 emerging broadcaster may have effective 19 control on the day before the date on 20 which the established broadcaster and the 21 emerging broadcaster submit the applica- 22 tion for the Program under subsection (d); 23 (ii) a cap, expressed in terms of a dol- 24 lar amount, on the gross revenue that the 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 8154 IH emerging broadcaster may earn during the 1 calendar year ending most recently before 2 the date on which the established broad- 3 caster and the emerging broadcaster sub- 4 mit the application for the Program under 5 subsection (d); and 6 (iii) a requirement for the established 7 broadcaster to have effective control of— 8 (I) if any incubated station under 9 such relationship will be a radio 10 broadcast station, any class of AM or 11 FM radio broadcast station (except 12 for a low power radio station or a 13 radio translator station); and 14 (II) if any incubated station 15 under such relationship will be a tele- 16 vision broadcast station, any class or 17 assignment of television broadcast sta- 18 tion (except for a low power television 19 station or a television translator sta- 20 tion). 21 (B) Criteria for the incubation activities 22 that the established broadcaster shall perform 23 as part of such relationship. Such activities 24 shall include the provision by the established 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 8154 IH broadcaster to the emerging broadcaster of 1 training, financing, or access to resources. 2 (C) A requirement that the established 3 broadcaster and the emerging broadcaster es- 4 tablish mutually agreed-upon goals for such re- 5 lationship. 6 (D) A requirement that the established 7 broadcaster and the emerging broadcaster es- 8 tablish a mutually agreed-upon limitation on 9 the amount of equity (if any) that the estab- 10 lished broadcaster may hold in the emerging 11 broadcaster. 12 (E) A minimum duration of 2 years for 13 such relationship. 14 (F) An option, which may be exercised 15 upon the agreement of the established broad- 16 caster and the emerging broadcaster, for such 17 relationship to continue on an ongoing basis. 18 (G) A requirement that, upon successful 19 completion of such relationship in accordance 20 with the application approved by the Commis- 21 sion under subsection (d) and in compliance 22 with the other requirements for the Program 23 established by the Commission, the emerging 24 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 8154 IH broadcaster shall have effective control of each 1 incubated station under such relationship. 2 (2) DETERMINATION OF SUCCESSFUL RELA- 3 TIONSHIP.—The Commission shall provide in the 4 regulations promulgated under subsection (b) for the 5 determination of whether a qualifying incubation re- 6 lationship is being carried out successfully or has 7 been completed successfully to be made by the Com- 8 mission on a case-by-case basis based on information 9 provided in the application process and related forms 10 and materials. 11 (d) APPLICATION PROCESS.— 12 (1) JOINT APPLICATION.—The Commission 13 shall require an established broadcaster and an 14 emerging broadcaster who propose to enter into a 15 qualifying incubation relationship under the Pro- 16 gram to submit to the Commission a joint applica- 17 tion for participation in the Program. 18 (2) PROCESS, FORMS, AND MATERIALS.—The 19 Commission shall develop an application process and 20 related forms and materials necessary to carry out 21 the Program. 22 (3) APPLICATION REVIEW PROCESS.— 23 (A) DEADLINE.— 24 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 8154 IH (i) IN GENERAL.—Except as provided 1 in clause (ii) and subparagraph (B), the 2 Commission shall approve or deny an ap- 3 plication for participation in the Program 4 not later than 90 days after the date of the 5 submission of the application. 6 (ii) ADDITIONAL TIME NEEDED BY 7 COMMISSION.—If the Commission deter- 8 mines that, because an excessive number of 9 applications have been filed at one time, 10 the Commission needs additional time for 11 employees of the Commission to process 12 the applications, the Commission may ex- 13 tend the deadline described in clause (i) for 14 not more than 45 days. 15 (B) OPPORTUNITY FOR APPLICANT TO 16 CURE DEFICIENCY.—If the Commission deter- 17 mines that an application is materially defi- 18 cient, the Commission shall provide the appli- 19 cants a 15-day period to cure the defect before 20 denying the application. If such period would 21 extend beyond the deadline under subparagraph 22 (A) for approving or denying the application, 23 such deadline shall be extended through the end 24 of such period. 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 8154 IH (C) EFFECT OF DENIAL.—Denial of an ap- 1 plication for participation in the Program shall 2 not preclude the applicants from resubmitting 3 the application or any applicant from submit- 4 ting a new application for participation in the 5 Program at a later date. 6 (4) CERTIFICATIONS.—The Commission shall 7 require each applicant submitting an application for 8 participation in the Program to certify to the Com- 9 mission in the application that, as of the date of the 10 submission of the application— 11 (A) the applicant intends to participate, in 12 good faith, in the Program; 13 (B) in the case of an emerging broad- 14 caster, the applicant would be unable, without 15 the qualifying incubation relationship proposed 16 in the application— 17 (i) in the case of any incubated sta- 18 tion of which the applicant has effective 19 control as of such date, to continue to suc- 20 cessfully operate such station; and 21 (ii) in the case of any incubated sta- 22 tion of which the applicant proposes to ac- 23 quire effective control after such date, to 24 acquire such effective control; 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 8154 IH (C) the applicants have established the 1 mutually agreed-upon goals required by sub- 2 section (c)(1)(C); and 3 (D) the applicants have established the 4 mutually agreed-upon limitation required by 5 subsection (c)(1)(D). 6 (5) LIMITATION ON REAPPLICATION BY ESTAB- 7 LISHED BROADCASTER AFTER FAILED RELATION- 8 SHIP.—If, in 3 or more instances, the Commission 9 has terminated the participation of an established 10 broadcaster in the Program under subsection (f) and 11 determined that such established broadcaster was 12 primarily at fault in causing the circumstances on 13 which the termination was based, such established 14 broadcaster may not submit another application for 15 participation in the Program. 16 (e) WAIVER OF LOCAL OWNERSHIP RULES.— 17 (1) IN GENERAL.—If the Commission makes 18 the determination described in paragraph (2) with 19 respect to an established broadcaster and an emerg- 20 ing broadcaster, the Commission shall, not earlier 21 than 1 year after making such determination, grant 22 to the established broadcaster a waiver of paragraph 23 (a) or (b) of section 73.3555 of title 47, Code of 24 Federal Regulations (or any successor regulation) to 25 VerDate Sep 11 2014 05:02 Sep 05, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H8154.IH H8154 pbinns on DSKJLVW7X2PROD with BILLS 12 •HR 8154 IH the extent necessary to permit the established broad- 1 caster— 2 (A) to hold a cognizable interest in any in- 3 cubated station under the qualifying incubation 4 relationship; and 5 (B) to hold a cognizable interest in— 6 (i) if the established broadcaster had 7 effective control of an AM or FM radio 8 broadcast station (except for a low power 9 radio station or a radio translator station) 10 on the day before the date on which the es- 11 tablished broadcaster and the emerging 12 broadcaster submitted the application for 13 the Program under subsection (d), 1 radio 14 broadcast station in excess of the number 15 of radio broadcast stations in which the es- 16 tablished broadcaster is permitted to hold 17 a cognizable interest under [Text truncated for display. 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