[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3879 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3879
To direct the Federal Communications Commission to take certain actions
to increase diversity of ownership in the broadcasting industry, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 10, 2025
Mr. Horsford (for himself and Mr. Cleaver) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committee on Energy and Commerce, for a period to be
subsequently determined by the Speaker, 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 industry, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Broadcast Varied Ownership
Incentives for Community Expanded Service Act'' or the ``Broadcast
VOICES Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Broadcast station.--The term ``broadcast station'' has
the meaning given the term in section 3 of the Communications
Act of 1934 (47 U.S.C. 153).
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Owned by socially disadvantaged individuals.--The term
``owned by socially disadvantaged individuals'' has the meaning
given the term in section 346(a) of the Communications Act of
1934, as added by section 5(a)(1) of this Act.
SEC. 3. FINDINGS.
Congress finds the following:
(1) One of the main missions of the Commission, and a
compelling governmental interest, is to ensure that there is a
diversity of ownership and viewpoints in the broadcasting
industry.
(2) The Commission should continue to collect relevant data
on the diversity described in paragraph (1), adopt improvements
to that data collection and related studies, and make
appropriate recommendations to Congress regarding how to
increase the number of minority- and women-owned broadcast
stations.
(3) Data from 2021 shows that, of the nearly 1,760 full
power commercial broadcast television stations in the United
States, less than 6 percent are owned by women and less than 4
percent are minority-owned. With respect to full power
commercial radio stations, women owned approximately 9 percent
of FM broadcast radio stations, and minorities owned less than
3 percent of those stations.
(4) In the 17 years that a minority tax certificate program
was in place at the Commission between 1978 and 1995, the
Commission issued 287 certificates for radio stations, and 40
certificates for television stations, under that program.
SEC. 4. FCC REPORTS TO CONGRESS.
(a) Biennial Report Containing Recommendations for Increasing
Number and Value of Broadcast Stations Owned by Socially Disadvantaged
Individuals.--Not later than 180 days after the date of enactment of
this Act, and not less frequently than once every 2 years thereafter,
the Commission shall submit to Congress a report containing
recommendations for how to increase the total number, and the value, of
broadcast stations that are owned by socially disadvantaged
individuals.
(b) Biennial Report on Number of Broadcast Stations Owned by
Socially Disadvantaged Individuals.--Not later than 180 days after the
date of enactment of this Act, and not less frequently than once every
2 years thereafter, the Commission shall submit to Congress a report
that identifies the total number of broadcast stations that are owned
by socially disadvantaged individuals, based on data reported to the
Commission on Form 323 of the Commission.
SEC. 5. TAX CERTIFICATE PROGRAM FOR BROADCAST STATION TRANSACTIONS
FURTHERING OWNERSHIP BY SOCIALLY DISADVANTAGED
INDIVIDUALS.
(a) Requirements for Issuance of Certificate by FCC.--
(1) In general.--Part I of title III of the Communications
Act of 1934 (47 U.S.C. 301 et seq.) is amended by adding at the
end the following:
``SEC. 346. TAX CERTIFICATE PROGRAM FOR BROADCAST STATION TRANSACTIONS
FURTHERING OWNERSHIP BY SOCIALLY DISADVANTAGED
INDIVIDUALS.
``(a) Definitions.--In this section:
``(1) Owned by socially disadvantaged individuals.--The
term `owned by socially disadvantaged individuals' means, with
respect to a broadcast station, that--
``(A) the station is more than 50 percent (or some
other percentage determined by the Commission) owned by
1 or more socially disadvantaged individuals, or, in
the case of any publicly traded broadcast station, more
than 50 percent (or some other percentage determined by
the Commission) of the securities of such station is
owned by 1 or more socially disadvantaged individuals;
and
``(B) the management and daily business operations
of the station are controlled by 1 or more socially
disadvantaged individuals.
``(2) Socially disadvantaged individual.--The term
`socially disadvantaged individual' means--
``(A) a woman; or
``(B) 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
individual.
``(b) Issuance of Certificate by Commission.--Subject to the rules
adopted by the Commission under subsection (d), upon application by a
person that engages in a sale described in subsection (c), the
Commission shall issue to that person a certificate stating that the
sale meets the requirements of this section.
``(c) Sales Described.--A sale described in this subsection is
either of the following:
``(1) Sale resulting in or preserving ownership and control
by socially disadvantaged individuals.--A sale of an interest
in a broadcast station if, immediately after the sale, the
station is owned by socially disadvantaged individuals, without
regard to whether, before the sale, the station was owned by
socially disadvantaged individuals.
``(2) 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 individuals, a
sale by that person of some or all of that interest.
``(d) Rules.--The Commission shall adopt rules for the issuance of
a certificate under subsection (b) that provide for the following:
``(1) Limit on value of sale.--A limit on the value of an
interest the sale of which qualifies for the issuance of such a
certificate, which shall be not greater than $50,000,000.
``(2) Minimum holding period.--In the case of a sale
described in subsection (c)(1), a minimum period after the sale
during which the broadcast station shall remain owned by
socially disadvantaged individuals, which shall be not shorter
than 2 years and not longer than 3 years.
``(3) 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 year, or both, for which a person may be issued
certificates under subsection (b).
``(4) Participation in station management by socially
disadvantaged individuals.--Requirements for participation by
socially disadvantaged individuals in the management of the
broadcast station.
``(5) Certification.--
``(A) In general.--In the case of a sale described
in subsection (c)(1), a requirement that the buyer of
the interest in the broadcast station certify, every
180 days during the minimum holding period adopted
under paragraph (2), compliance with the rules issued
under that paragraph and paragraph (4).
``(B) Failure to comply.--With respect to a failure
to make a certification required under subparagraph
(A), the Commission shall--
``(i) report the failure to the
Commissioner of Internal Revenue; and
``(ii) include the failure in the report to
Congress submitted under subsection (e) that
covers the period during which the failure
occurred.
``(e) Annual Report to Congress.--The Commission shall submit to
Congress an annual report describing the sales for which certificates
have been issued under subsection (b) during the period covered by the
report.''.
(2) Deadline for issuance of rules.--Not later than 1 year
after the date of enactment of this Act, the Commission shall
issue rules to implement section 346 of the Communications Act
of 1934, as added by paragraph (1).
(3) Report to congress on program expansion.--Not later
than 6 years after the date of enactment of this Act, the
Commission shall submit to Congress a report regarding whether
Congress should expand section 346 of the Communications Act of
1934, as added by paragraph (1), beyond broadcast stations to
cover other entities regulated by the Commission.
(4) Examination and report to congress on nexus between
diversity of ownership and diversity of viewpoint.--
(A) Examination.--Not later than 60 days after the
date of enactment of this Act, the Commission shall
initiate an examination of whether there is a nexus
between diversity of ownership or control of broadcast
stations (including ownership or control by members of
minority groups or women, or by both members of
minority groups and women) and diversity of the
viewpoints expressed in the matter that is broadcast by
broadcast stations.
(B) Report to congress.--Not later than 2 years
after the date of enactment of this Act, the Commission
shall submit to Congress a report on the findings of
the Commission in the examination under subparagraph
(A), including supporting data.
(b) Nonrecognition of Gain or Loss for Tax Purposes.--
(1) In general.--Subchapter O of chapter 1 of the Internal
Revenue Code of 1986 is amended by inserting after part IV the
following new part:
``PART V--SALE OF INTEREST IN CERTAIN BROADCAST STATIONS
``Sec. 1071. Nonrecognition of gain or loss from sale of interest in
certain broadcast stations.
``SEC. 1071. NONRECOGNITION OF GAIN OR LOSS FROM SALE OF INTEREST IN
CERTAIN BROADCAST STATIONS.
``(a) Nonrecognition of Gain or Loss.--If a sale of an interest in
a broadcast station, within the meaning of section 346 of the
Communications Act of 1934, is certified by the Federal Communications
Commission under such section, such sale shall, if the taxpayer so
elects, be treated as an involuntary conversion of such property within
the meaning of section 1033. For purposes of such section as made
applicable by the provisions of this section, stock of a corporation
operating a broadcast station shall be treated as property similar or
related in service or use to the property so converted. The part of the
gain, if any, on such sale to which section 1033 is not applied shall
nevertheless not be recognized, if the taxpayer so elects, to the
extent that it is applied to reduce the basis for determining gain or
loss on any such sale, of a character subject to the allowance for
depreciation under section 167, remaining in the hands of the taxpayer
immediately after the sale, or acquired in the same taxable year. The
manner and amount of such reduction shall be determined under
regulations prescribed by the Secretary. 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 place, and
such election shall be binding for the taxable year and all subsequent
taxable years.
``(b) Minimum Holding Period; Continued Management.--If--
``(1) there is nonrecognition of gain or loss to a taxpayer
under this section with respect to a sale of property
(determined without regard to this paragraph), and
``(2) the taxpayer ceases to fulfill any requirements of
the rules adopted by the Federal Communications Commission
under paragraph (2) or (4) of section 346(d) of the
Communications Act of 1934 (as such rules are in effect on the
date of such sale),
there shall be no nonrecognition of gain or loss under this section to
the taxpayer with respect to such sale, 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 requirements.
``(c) Basis.--For basis of property acquired on a sale treated as
an involuntary conversion under subsection (a), see section 1033(b).''.
(2) Clerical amendment.--The table of parts for subchapter
O of chapter 1 of the Internal Revenue Code of 1986 is amended
by inserting after the item relating to part IV the following
new item:
``Part V. Sale of interest in certain
broadcast stations.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to sales of interests in broadcast stations after
the date that is 1 year after the date of enactment of this Act.
(d) Sunset.--The amendments made by this section shall not apply
with respect to sales of interests in broadcast stations after the date
that is 16 years after the date of enactment of this Act.
SEC. 6. CREDIT FOR CERTAIN CONTRIBUTIONS WITH RESPECT TO BROADCAST
STATIONS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. CREDIT FOR CERTAIN CONTRIBUTIONS WITH RESPECT TO BROADCAST
STATIONS.
``(a) In General.--For purposes of section 38, 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 station, or any interest in a broadcast station, which is
contributed in a qualified contribution during such taxable year.
``(b) Qualified Contribution.--For purposes of this section--
``(1) In general.--The term `qualified contribution' means
a contribution or gift to or for the use of an entity described
in section 170(c)(2) which has as a part of its charitable
purpose the training of socially disadvantaged individuals in
the management and operation of broadcast stations (as
certified by the Federal Communications Commission), but only
if the recipient holds such station or interest for not less
than 2 years after the date of the contribution.
``(2) Socially disadvantaged individual.--The term
`socially disadvantaged individual' has the meaning given such
term in section 346(a)(2) of the Communications Act of 1934.
``(c) Broadcast Station.--For purposes of this section, the term
`broadcast station' has the same meaning as when used in section 346 of
the Communications Act of 1934.
``(d) Denial of Deduction.--No deduction shall be allowed under
section 170 with respect to any contribution for which credit is
allowed under this section.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking ``plus'' at
the end of paragraph (40), by striking the period at the end of
paragraph (41) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(42) the broadcast station contribution credit determined
under section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45BB. Credit for certain contributions with respect to broadcast
stations.''.
(d) 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 Act.
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