119-s2123

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2123 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2123

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 SENATE OF THE UNITED STATES

 June 18, 2025

Mr. Peters (for himself, Mr. Blumenthal, Mr. Schatz, Mr. Heinrich, Ms. 
 Baldwin, Ms. Klobuchar, and Mr. Lujan) introduced the following bill; 
 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 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 2023 shows that, of the nearly 1,760 full 
 power commercial broadcast television stations in the United 
 States, only 5 percent are owned by women and less than 4 
 percent are minority-owned. With respect to full power 
 commercial radio stations, women owned approximately 10 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 that 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 related to part IV the following 
 new part:

 ``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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