S. 2123 — Broadcast VOICES Act

This section defines three terms for purposes of the Act: (1) “broadcast station” (as defined in 47 U.S.C. 153); (2) “Commission” (i.e., the Federal Communications Commission); and (3) “owned by socially disadvantaged individuals” (as defined in new section 346(a) of the Communications Act of 1934).

This section states congressional findings concerning diversity of ownership and viewpoints in the broadcasting industry. Specifically, it identifies ensuring such diversity as a main mission of the Federal Communications Commission (FCC); directs the FCC to collect relevant data, improve studies, and recommend ways to increase minority- and women-owned broadcast stations; notes that among nearly 1,760 full power commercial broadcast television stations, 5% are women-owned and less than 4% are minority-owned, while among full power commercial FM radio stations, approximately 10% are women-owned and less than 3% are minority-owned; and states that from 1978 to 1995, the FCC issued 287 minority tax certificates for radio stations and 40 for television stations.

This section directs the Federal Communications Commission (FCC) to submit two biennial reports to Congress, beginning not later than 180 days after enactment of this Act and every two years thereafter. The first report contains recommendations for increasing the total number and value of broadcast stations owned by socially disadvantaged individuals. The second report identifies the total number of such stations, based on data reported to the FCC on Form 323.

This section establishes a Federal Communications Commission (FCC) tax certificate program under new Communications Act §346 for sales of interests in broadcast stations that result in or preserve ownership and control by socially disadvantaged individuals (i.e., women or individuals subjected to racial or ethnic prejudice or cultural bias, with ownership defined as more than 50% equity and management control) or sales by investors in such stations, allowing nonrecognition of gain or loss for tax purposes under new IRC §1071. The FCC must issue rules within one year of enactment, including (1) a limit on qualifying sale values of not more than $50 million, (2) a minimum post-sale holding period of two to three years for ownership by socially disadvantaged individuals, (3) cumulative annual limits on the number or value of sales per seller, (4) requirements for management participation by socially disadvantaged individuals, and (5) buyer certifications of compliance every 180 days during the holding period (with noncompliance reported to the IRS and Congress). This section further directs the FCC to (1) submit annual reports to Congress on certificates issued, (2) report within six years on expanding the program to other FCC-regulated entities, and (3) within 60 days of enactment, examine and within two years report to Congress on any nexus between broadcast ownership diversity (including by minorities or women) and viewpoint diversity on air.

This section establishes a new general business credit under new IRC §45BB for the fair market value of any broadcast station or interest therein contributed in a qualified contribution during the taxable year. A qualified contribution is a gift to a §501(c)(3) organization certified by the FCC as having a charitable purpose of training socially disadvantaged individuals (as defined in Communications Act §346(a)(2)) in broadcast station management and operations, provided the recipient holds the property for at least two years; no charitable contribution deduction is allowed under IRC §170 for such contributions. The amendments apply to contributions made in taxable years beginning after the date of enactment.