Broadcast Tax Certificate Legislation Introduced

RADIO ONLINE | Wednesday, April 5, 2017

Rep. G.K. Butterfield (D-NC) has introduced "Expanding Broadcast Ownership Opportunities Act of 2017," a bill directing the FCC to take certain actions to increase diversity of ownership in the broadcasting industry. The proposed legislation would require the Commission to bring back a tax certificate program for broadcast station transactions furthering ownership by socially and economically disadvantaged individuals. It also requires biennial reports to Congress containing recommendations for how to increase the total number of broadcast stations that are owned or controlled by members of minority groups or women, or by both members of minority groups and women.

The proposed bill noted, that with respect to radio stations, women owned approximately 7 percent of FM broadcast radio stations, and minorities owned less than 3 percent of stations. Women and minority ownership is 5 to 10 times higher in other industries than in the broadcasting industry. During the 17 years that a minority tax certificate program was in place at the Commission (from 1978 to 1995), the Commission issued 287 certificates for radio outlets and 40 certificates for television stations.

In response NAB Executive VP/Communications Dennis Wharton said, "NAB thanks Rep. Butterfield for introducing legislation that would increase diversity in broadcast station ownership. Broadcasters have long supported market-based solutions that expand the diversity of voices at radio and television stations, and NAB has worked with partners from across industries to help women and minorities achieve their dreams of station ownership. We will continue our work with regulators, lawmakers and stakeholders on addressing this important issue and support swift passage of this legislation."