47 U.S.C. § 396 : US Code - Section 396: Corporation for Public Broadcasting

Search 47 U.S.C. § 396 : US Code - Section 396: Corporation for Public Broadcasting

    (a) Congressional declaration of policy
      The Congress hereby finds and declares that - 
        (1) it is in the public interest to encourage the growth and
      development of public radio and television broadcasting,
      including the use of such media for instructional, educational,
      and cultural purposes;
        (2) it is in the public interest to encourage the growth and
      development of nonbroadcast telecommunications technologies for
      the delivery of public telecommunications services;
        (3) expansion and development of public telecommunications and
      of diversity of its programming depend on freedom, imagination,
      and initiative on both local and national levels;
        (4) the encouragement and support of public telecommunications,
      while matters of importance for private and local development,
      are also of appropriate and important concern to the Federal
      Government;
        (5) it furthers the general welfare to encourage public
      telecommunications services which will be responsive to the
      interests of people both in particular localities and throughout
      the United States, which will constitute an expression of
      diversity and excellence, and which will constitute a source of
      alternative telecommunications services for all the citizens of
      the Nation;
        (6) it is in the public interest to encourage the development
      of programming that involves creative risks and that addresses
      the needs of unserved and underserved audiences, particularly
      children and minorities;
        (7) it is necessary and appropriate for the Federal Government
      to complement, assist, and support a national policy that will
      most effectively make public telecommunications services
      available to all citizens of the United States;
        (8) public television and radio stations and public
      telecommunications services constitute valuable local community
      resources for utilizing electronic media to address national
      concerns and solve local problems through community programs and
      outreach programs;
        (9) it is in the public interest for the Federal Government to
      ensure that all citizens of the United States have access to
      public telecommunications services through all appropriate
      available telecommunications distribution technologies; and
        (10) a private corporation should be created to facilitate the
      development of public telecommunications and to afford maximum
      protection from extraneous interference and control.
    (b) Establishment of Corporation; application of District of
      Columbia Nonprofit Corporation Act
      There is authorized to be established a nonprofit corporation, to
    be known as the "Corporation for Public Broadcasting", which will
    not be an agency or establishment of the United States Government.
    The Corporation shall be subject to the provisions of this section,
    and, to the extent consistent with this section, to the District of
    Columbia Nonprofit Corporation Act.
    (c) Board of Directors; functions, duties, etc.
      (1) The Corporation for Public Broadcasting shall have a Board of
    Directors (hereinafter in this section referred to as the "Board"),
    consisting of 9 members appointed by the President, by and with the
    advice and consent of the Senate. No more than 5 members of the
    Board appointed by the President may be members of the same
    political party.
      (2) The 9 members of the Board appointed by the President (A)
    shall be selected from among citizens of the United States (not
    regular full-time employees of the United States) who are eminent
    in such fields as education, cultural and civic affairs, or the
    arts, including radio and television; and (B) shall be selected so
    as to provide as nearly as practicable a broad representation of
    various regions of the Nation, various professions and occupations,
    and various kinds of talent and experience appropriate to the
    functions and responsibilities of the Corporation.
      (3) Of the members of the Board appointed by the President under
    paragraph (1), one member shall be selected from among individuals
    who represent the licensees and permittees of public television
    stations, and one member shall be selected from among individuals
    who represent the licensees and permittees of public radio
    stations.
      (4) The members of the initial Board of Directors shall serve as
    incorporators and shall take whatever actions are necessary to
    establish the Corporation under the District of Columbia Nonprofit
    Corporation Act.
      (5) The term of office of each member of the Board appointed by
    the President shall be 6 years, except as provided in section 5(c)
    of the Public Telecommunications Act of 1992. Any member whose term
    has expired may serve until such member's successor has taken
    office, or until the end of the calendar year in which such
    member's term has expired, whichever is earlier. Any member
    appointed to fill a vacancy occurring prior to the expiration of
    the term for which such member's predecessor was appointed shall be
    appointed for the remainder of such term. No member of the Board
    shall be eligible to serve in excess of 2 consecutive full terms.
      (6) Any vacancy in the Board shall not affect its power, but
    shall be filled in the manner consistent with this chapter.
      (7) Members of the Board shall attend not less than 50 percent of
    all duly convened meetings of the Board in any calendar year. A
    member who fails to meet the requirement of the preceding sentence
    shall forfeit membership and the President shall appoint a new
    member to fill such vacancy not later than 30 days after such
    vacancy is determined by the Chairman of the Board.
    (d) Election of Chairman and Vice Chairman; compensation of Board
      members
      (1) Members of the Board shall annually elect one of their
    members to be Chairman and elect one or more of their members as a
    Vice Chairman or Vice Chairmen.
      (2) The members of the Board shall not, by reason of such
    membership, be deemed to be officers or employees of the United
    States. They shall, while attending meetings of the Board or while
    engaged in duties related to such meetings or other activities of
    the Board pursuant to this subpart, be entitled to receive
    compensation at the rate of $150 per day, including traveltime. No
    Board member shall receive compensation of more than $10,000 in any
    fiscal year. While away from their homes or regular places of
    business, Board members shall be allowed travel and actual,
    reasonable, and necessary expenses.
    (e) Officers and employees; term of office, compensation,
      qualifications, and removal; political party affiliation,
      political test or qualification when taking personnel actions
      (1) The Corporation shall have a President, and such other
    officers as may be named and appointed by the Board for terms and
    at rates of compensation fixed by the Board. No officer or employee
    of the Corporation may be compensated by the Corporation at an
    annual rate of pay which exceeds the rate of basic pay in effect
    from time to time for level I of the Executive Schedule under
    section 5312 of title 5. No individual other than a citizen of the
    United States may be an officer of the Corporation. No officer of
    the Corporation, other than the Chairman or a Vice Chairman, may
    receive any salary or other compensation (except for compensation
    for services on boards of directors of other organizations that do
    not receive funds from the Corporation, on committees of such
    boards, and in similar activities for such organizations) from any
    sources other than the Corporation for services rendered during the
    period of his or her employment by the Corporation. Service by any
    officer on boards of directors of other organizations, on
    committees of such boards, and in similar activities for such
    organizations shall be subject to annual advance approval by the
    Board and subject to the provisions of the Corporation's Statement
    of Ethical Conduct. All officers shall serve at the pleasure of the
    Board.
      (2) Except as provided in the second sentence of subsection
    (c)(1) of this section, no political test or qualification shall be
    used in selecting, appointing, promoting, or taking other personnel
    actions with respect to officers, agents, and employees of the
    Corporation.
    (f) Nonprofit and nonpolitical nature of Corporation
      (1) The Corporation shall have no power to issue any shares of
    stock, or to declare or pay any dividends.
      (2) No part of the income or assets of the Corporation shall
    inure to the benefit of any director, officer, employee, or any
    other individual except as salary or reasonable compensation for
    services.
      (3) The Corporation may not contribute to or otherwise support
    any political party or candidate for elective public office.
    (g) Purposes and activities of Corporation; powers under District
      of Columbia Nonprofit Corporation Act
      (1) In order to achieve the objectives and to carry out the
    purposes of this subpart, as set out in subsection (a) of this
    section, the Corporation is authorized to - 
        (A) facilitate the full development of public
      telecommunications in which programs of high quality, diversity,
      creativity, excellence, and innovation, which are obtained from
      diverse sources, will be made available to public
      telecommunications entities, with strict adherence to objectivity
      and balance in all programs or series of programs of a
      controversial nature;
        (B) assist in the establishment and development of one or more
      interconnection systems to be used for the distribution of public
      telecommunications services so that all public telecommunications
      entities may disseminate such services at times chosen by the
      entities;
        (C) assist in the establishment and development of one or more
      systems of public telecommunications entities throughout the
      United States; and
        (D) carry out its purposes and functions and engage in its
      activities in ways that will most effectively assure the maximum
      freedom of the public telecommunications entities and systems
      from interference with, or control of, program content or other
      activities.

      (2) In order to carry out the purposes set forth in subsection
    (a) of this section, the Corporation is authorized to - 
        (A) obtain grants from and make contracts with individuals and
      with private, State, and Federal agencies, organizations, and
      institutions;
        (B) contract with or make grants to public telecommunications
      entities, national, regional, and other systems of public
      telecommunications entities, and independent producers and
      production entities, for the production or acquisition of public
      telecommunications services to be made available for use by
      public telecommunications entities, except that - 
          (i) to the extent practicable, proposals for the provision of
        assistance by the Corporation in the production or acquisition
        of programs or series of programs shall be evaluated on the
        basis of comparative merit by panels of outside experts,
        representing diverse interests and perspectives, appointed by
        the Corporation; and
          (ii) nothing in this subparagraph shall be construed to
        prohibit the exercise by the Corporation of its prudent
        business judgement with respect to any grant to assist in the
        production or acquisition of any program or series of programs
        recommended by any such panel;

        (C) make payments to existing and new public telecommunications
      entities to aid in financing the production or acquisition of
      public telecommunications services by such entities, particularly
      innovative approaches to such services, and other costs of
      operation of such entities;
        (D) establish and maintain, or contribute to, a library and
      archives of noncommercial educational and cultural radio and
      television programs and related materials and develop public
      awareness of, and disseminate information about, public
      telecommunications services by various means, including the
      publication of a journal;
        (E) arrange, by grant to or contract with appropriate public or
      private agencies, organizations, or institutions, for
      interconnection facilities suitable for distribution and
      transmission of public telecommunications services to public
      telecommunications entities;
        (F) hire or accept the voluntary services of consultants,
      experts, advisory boards, and panels to aid the Corporation in
      carrying out the purposes of this subpart;
        (G) conduct (directly or through grants or contracts) research,
      demonstrations, or training in matters related to public
      television or radio broadcasting and the use of nonbroadcast
      communications technologies for the dissemination of
      noncommercial educational and cultural television or radio
      programs;
        (H) make grants or contracts for the use of nonbroadcast
      telecommunications technologies for the dissemination to the
      public of public telecommunications services; and
        (I) take such other actions as may be necessary to accomplish
      the purposes set forth in subsection (a) of this section.

    Nothing contained in this paragraph shall be construed to commit
    the Federal Government to provide any sums for the payment of any
    obligation of the Corporation which exceeds amounts provided in
    advance in appropriation Acts.
      (3) To carry out the foregoing purposes and engage in the
    foregoing activities, the Corporation shall have the usual powers
    conferred upon a nonprofit corporation by the District of Columbia
    Nonprofit Corporation Act, except that the Corporation is
    prohibited from - 
        (A) owning or operating any television or radio broadcast
      station, system, or network, community antenna television system,
      interconnection system or facility, program production facility,
      or any public telecommunications entity, system, or network; and
        (B) producing programs, scheduling programs for dissemination,
      or disseminating programs to the public.

      (4) All meetings of the Board of Directors of the Corporation,
    including any committee of the Board, shall be open to the public
    under such terms, conditions, and exceptions as are set forth in
    subsection (k)(4) of this section.
      (5) The Corporation, in consultation with interested parties,
    shall create a 5-year plan for the development of public
    telecommunications services. Such plan shall be updated annually by
    the Corporation.
    (h) Free or reduced rate interconnection service; access to
      facilities
      (1) Nothing in this chapter, or in any other provision of law,
    shall be construed to prevent United States communications common
    carriers from rendering free or reduced rate communications
    interconnection services for public television or radio services,
    subject to such rules and regulations as the Commission may
    prescribe.
      (2) Subject to such terms and conditions as may be established by
    public telecommunications entities receiving space satellite
    interconnection facilities or services purchased or arranged for,
    in whole or in part, with funds authorized under this part, other
    public telecommunications entities shall have reasonable access to
    such facilities or services for the distribution of educational and
    cultural programs to public telecommunications entities. Any
    remaining capacity shall be made available to other persons for the
    transmission of noncommercial educational and cultural programs and
    program information relating to such programs, to public
    telecommunications entities, at a charge or charges comparable to
    the charge or charges, if any, imposed upon a public
    telecommunications entity for the distribution of noncommercial
    educational and cultural programs to public telecommunications
    entities. No such person shall be denied such access whenever
    sufficient capacity is available.
    (i) Report to Congress
      (1) The Corporation shall submit an annual report for the
    preceding fiscal year ending September 30 to the President for
    transmittal to the Congress on or before the 15th day of May of
    each year. The report shall include - 
        (A) a comprehensive and detailed report of the Corporation's
      operations, activities, financial condition, and accomplishments
      under this subpart and such recommendations as the Corporation
      deems appropriate;
        (B) a comprehensive and detailed inventory of funds distributed
      by Federal agencies to public telecommunications entities during
      the preceding fiscal year;
        (C) a listing of each organization that receives a grant from
      the Corporation to produce programming, the name of the producer
      of any programming produced under each such grant, the title or
      description of any program so produced, and the amount of each
      such grant; (!1)

        (D) the summary of the annual report provided to the Secretary
      pursuant to section 398(b)(4) of this title.

      (2) The officers and directors of the Corporation shall be
    available to testify before appropriate committees of the Congress
    with respect to such report, the report of any audit made by the
    Comptroller General pursuant to subsection (l) of this section, or
    any other matter which such committees may determine.
    (j) Repeal, alteration, or amendment
      The right to repeal, alter, or amend this section at any time is
    expressly reserved.
    (k) Financing restrictions
      (1)(A) There is hereby established in the Treasury a fund which
    shall be known as the Public Broadcasting Fund (hereinafter in this
    subsection referred to as the "Fund"), to be administered by the
    Secretary of the Treasury.
      (B) There is authorized to be appropriated to the Fund for each
    of the fiscal years 1978, 1979, and 1980, an amount equal to 40
    percent of the total amount of non-Federal financial support
    received by public broadcasting entities during the fiscal year
    second preceding each such fiscal year, except that the amount so
    appropriated shall not exceed $121,000,000 for fiscal year 1978,
    $140,000,000 for fiscal year 1979, and $160,000,000 for fiscal year
    1980.
      (C) There is authorized to be appropriated to the Fund, for each
    of the fiscal years 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988,
    1989, 1990, 1991, 1992, and 1993, an amount equal to 40 percent of
    the total amount of non-Federal financial support received by
    public broadcasting entities during the fiscal year second
    preceding each such fiscal year, except that the amount so
    appropriated shall not exceed $265,000,000 for fiscal year 1992,
    $285,000,000 for fiscal year 1993, $310,000,000 for fiscal year
    1994, $375,000,000 for fiscal year 1995, and $425,000,000 for
    fiscal year 1996.
      (D) In addition to any amounts authorized under any other
    provision of this or any other Act to be appropriated to the Fund,
    $20,000,000 are hereby authorized to be appropriated to the Fund
    (notwithstanding any other provision of this subsection)
    specifically for transition from the use of analog to digital
    technology for the provision of public broadcasting services for
    fiscal year 2001.
      (E) Funds appropriated under this subsection shall remain
    available until expended.
      (F) In recognition of the importance of educational programs and
    services, and the expansion of public radio services, to unserved
    and underserved audiences, the Corporation, after consultation with
    the system of public telecommunications entities, shall prepare and
    submit to the Congress an annual report for each of the fiscal
    years 1994, 1995, and 1996 on the Corporation's activities and
    expenditures relating to those programs and services.
      (2)(A) The funds authorized to be appropriated by this subsection
    shall be used by the Corporation, in a prudent and financially
    responsible manner, solely for its grants, contracts, and
    administrative costs, except that the Corporation may not use any
    funds appropriated under this subpart for purposes of conducting
    any reception, or providing any other entertainment, for any
    officer or employee of the Federal Government or any State or local
    government. The Corporation shall determine the amount of non-
    Federal financial support received by public broadcasting entities
    during each of the fiscal years referred to in paragraph (1) for
    the purpose of determining the amount of each authorization, and
    shall certify such amount to the Secretary of the Treasury, except
    that the Corporation may include in its certification non-Federal
    financial support received by a public broadcasting entity during
    its most recent fiscal year ending before September 30 of the year
    for which certification is made. Upon receipt of such
    certification, the Secretary of the Treasury shall make available
    to the Corporation, from such funds as may be appropriated to the
    Fund, the amount authorized for each of the fiscal years pursuant
    to the provisions of this subsection.
      (B) Funds appropriated and made available under this subsection
    shall be disbursed by the Secretary of the Treasury on a fiscal
    year basis.
      (3)(A)(i) The Corporation shall establish an annual budget for
    use in allocating amounts from the Fund. Of the amounts
    appropriated into the Fund available for allocation for any fiscal
    year - 
        (I) $10,200,000 shall be available for the administrative
      expenses of the Corporation for fiscal year 1989, and for each
      succeeding fiscal year the amount which shall be available for
      such administrative expenses shall be the sum of the amount made
      available to the Corporation under this subclause for such
      expenses in the preceding fiscal year plus the greater of 4
      percent of such amount or a percentage of such amount equal to
      the percentage change in the Consumer Price Index, except that
      none of the amounts allocated under subclauses (II), (III), and
      (IV) and clause (v) shall be used for any administrative expenses
      of the Corporation and not more than 5 percent of all the amounts
      appropriated into the Fund available for allocation for any
      fiscal year shall be available for such administrative expenses;
        (II) 6 percent of such amounts shall be available for expenses
      incurred by the Corporation for capital costs relating to
      telecommunications satellites, the payment of programming
      royalties and other fees, the costs of interconnection facilities
      and operations (as provided in clause (iv)(I)), and grants which
      the Corporation may make for assistance to stations that
      broadcast programs in languages other than English or for
      assistance in the provision of affordable training programs for
      employees at public broadcast stations, and if the available
      funding level permits, for projects and activities that will
      enhance public broadcasting;
        (III) 75 percent of the remainder (after allocations are made
      under subclause (I) and subclause (II)) shall be allocated in
      accordance with clause (ii); and
        (IV) 25 percent of such remainder shall be allocated in
      accordance with clause (iii).

      (ii) Of the amounts allocated under clause (i)(III) for any
    fiscal year - 
        (I) 75 percent of such amounts shall be available for
      distribution among the licensees and permittees of public
      television stations pursuant to paragraph (6)(B); and
        (II) 25 percent of such amounts shall be available for
      distribution under subparagraph (B)(i), and in accordance with
      any plan implemented under paragraph (6)(A), for national public
      television programming.

      (iii) Of the amounts allocated under clause (i)(IV) for any
    fiscal year - 
        (I) 70 percent of such amounts shall be available for
      distribution among the licensees and permittees of public radio
      stations pursuant to paragraph (6)(B);
        (II) 7 percent of such amounts shall be available for
      distribution under subparagraph (B)(i) for public radio
      programming; and
        (III) 23 percent of such amounts shall be available for
      distribution among the licensees and permittees of public radio
      stations pursuant to paragraph (6)(B), solely to be used for
      acquiring or producing programming that is to be distributed
      nationally and is designed to serve the needs of a national
      audience.

      (iv)(I) From the amount provided pursuant to clause (i)(II), the
    Corporation shall defray an amount equal to 50 percent of the total
    costs of interconnection facilities and operations to facilitate
    the availability of public television and radio programs among
    public broadcast stations.
      (II) Of the amounts received as the result of any contract, lease
    agreement, or any other arrangement under which the Corporation
    directly or indirectly makes available interconnection facilities,
    50 percent of such amounts shall be distributed to the licensees
    and permittees of public television stations and public radio
    stations. The Corporation shall not have any authority to establish
    any requirements, guidelines, or limitations with respect to the
    use of such amounts by such licensees and permittees.
      (v) Of the interest on the amounts appropriated into the Fund
    which is available for allocation for any fiscal year - 
        (I) 75 percent shall be available for distribution for the
      purposes referred to in clause (ii)(II); and
        (II) 25 percent shall be available for distribution for the
      purposes referred to in clause (iii)(II) and (III).

      (B)(i) The Corporation shall utilize the funds allocated pursuant
    to subparagraph (A)(ii)(II) and subparagraph (A)(iii)(II) to make
    grants for production of public television or radio programs by
    independent producers and production entities and public
    telecommunications entities, producers of national children's
    educational programming, and producers of programs addressing the
    needs and interests of minorities, and for acquisition of such
    programs by public telecommunications entities. The Corporation may
    make grants to public telecommunications entities and producers for
    the production of programs in languages other than English. Of the
    funds utilized pursuant to this clause, a substantial amount shall
    be distributed to independent producers and production entities,
    producers of national children's educational programming, and
    producers of programming addressing the needs and interests of
    minorities for the production of programs.
      (ii) All funds available for distribution under clause (i) shall
    be distributed to entities outside the Corporation and shall not be
    used for the general administrative costs of the Corporation, the
    salaries or related expenses of Corporation personnel and members
    of the Board, or for expenses of consultants and advisers to the
    Corporation.
      (iii)(I) For fiscal year 1990 and succeeding fiscal years, the
    Corporation shall, in carrying out its obligations under clause (i)
    with respect to public television programming, provide adequate
    funds for an independent production service.
      (II) Such independent production service shall be separate from
    the Corporation and shall be incorporated under the laws of the
    District of Columbia for the purpose of contracting with the
    Corporation for the expenditure of funds for the production of
    public television programs by independent producers and independent
    production entities.
      (III) The Corporation shall work with organizations or
    associations of independent producers or independent production
    entities to develop a plan and budget for the operation of such
    service that is acceptable to the Corporation.
      (IV) The Corporation shall ensure that the funds provided to such
    independent production service shall be used exclusively in pursuit
    of the Corporation's obligation to expand the diversity and
    innovativeness of programming available to public broadcasting.
      (V) The Corporation shall report annually to Congress regarding
    the activities and expenditures of the independent production
    service, including carriage and viewing information for programs
    produced or acquired with funds provided pursuant to subclause (I).
    At the end of fiscal years 1992, 1993, 1994, and 1995, the
    Corporation shall submit a report to Congress evaluating the
    performance of the independent production service in light of its
    mission to expand the diversity and innovativeness of programming
    available to public broadcasting.
      (VI) The Corporation shall not contract to provide funds to any
    such independent production service, unless that service agrees to
    comply with public inspection requirements established by the
    Corporation within 3 months after August 26, 1992. Under such
    requirements the service shall maintain at its offices a public
    file, updated regularly, containing information relating to the
    service's award of funds for the production of programming. The
    information shall be available for public inspection and copying
    for at least 3 years and shall be of the same kind as the
    information required to be maintained by the Corporation under
    subsection (l)(4)(B) of this section.
      (4) Funds may not be distributed pursuant to this subsection to
    the Public Broadcasting Service or National Public Radio (or any
    successor organization), or to the licensee or permittee of any
    public broadcast station, unless the governing body of any such
    organization, any committee of such governing body, or any advisory
    body of any such organization, holds open meetings preceded by
    reasonable notice to the public. All persons shall be permitted to
    attend any meeting of the board, or of any such committee or body,
    and no person shall be required, as a condition to attendance at
    any such meeting, to register such person's name or to provide any
    other information. Nothing contained in this paragraph shall be
    construed to prevent any such board, committee, or body from
    holding closed sessions to consider matters relating to individual
    employees, proprietary information, litigation and other matters
    requiring the confidential advice of counsel, commercial or
    financial information obtained from a person on a privileged or
    confidential basis, or the purchase of property or services
    whenever the premature exposure of such purchase would compromise
    the business interests of any such organization. If any such
    meeting is closed pursuant to the provisions of this paragraph, the
    organization involved shall thereafter (within a reasonable period
    of time) make available to the public a written statement
    containing an explanation of the reasons for closing the meeting.
      (5) Funds may not be distributed pursuant to this subsection to
    any public telecommunications entity that does not maintain for
    public examination copies of the annual financial and audit
    reports, or other information regarding finances, submitted to the
    Corporation pursuant to subsection (l)(3)(B) of this section.
      (6)(A) The Corporation shall conduct a study and prepare a plan,
    in consultation with public television licensees (or designated
    representatives of those licensees) and the Public Broadcasting
    Service, on how funds available to the Corporation under paragraph
    (3)(A)(ii)(II) can be best allocated to meet the objectives of this
    chapter with regard to national public television programming. The
    plan, which shall be based on the conclusions resulting from the
    study, shall be submitted by the Corporation to the Congress not
    later than January 31, 1990. Unless directed otherwise by an Act of
    Congress, the Corporation shall implement the plan during the first
    fiscal year beginning after the fiscal year in which the plan is
    submitted to Congress.
      (B) The Corporation shall make a basic grant from the portion
    reserved for television stations under paragraph (3)(A)(ii)(I) to
    each licensee and permittee of a public television station that is
    on the air. The Corporation shall assist radio stations to maintain
    and improve their service where public radio is the only broadcast
    service available. The balance of the portion reserved for
    television stations and the total portion reserved for radio
    stations under paragraph (3)(A)(iii)(I) shall be distributed to
    licensees and permittees of such stations in accordance with
    eligibility criteria (which the Corporation shall review
    periodically in consultation with public radio and television
    licensees or permittees, or their designated representatives) that
    promote the public interest in public broadcasting, and on the
    basis of a formula designed to - 
        (i) provide for the financial needs and requirements of
      stations in relation to the communities and audiences such
      stations undertake to serve;
        (ii) maintain existing, and stimulate new, sources of non-
      Federal financial support for stations by providing incentives
      for increases in such support; and
        (iii) assure that each eligible licensee and permittee of a
      public radio station receives a basic grant.

      (7) The funds distributed pursuant to paragraph (3)(A)(ii)(I) and
    (iii)(I) may be used at the discretion of the recipient for
    purposes related primarily to the production or acquisition of
    programming.
      (8)(A) Funds may not be distributed pursuant to this subpart to
    any public broadcast station (other than any station which is owned
    and operated by a State, a political or special purpose subdivision
    of a State, or a public agency) unless such station establishes a
    community advisory board. Any such station shall undertake good
    faith efforts to assure that (i) its advisory board meets at
    regular intervals; (ii) the members of its advisory board regularly
    attend the meetings of the advisory board; and (iii) the
    composition of its advisory board are (!2) reasonably
    representative of the diverse needs and interests of the
    communities served by such station.

      (B) The board shall be permitted to review the programming goals
    established by the station, the service provided by the station,
    and the significant policy decisions rendered by the station. The
    board may also be delegated any other responsibilities, as
    determined by the governing body of the station. The board shall
    advise the governing body of the station with respect to whether
    the programming and other policies of such station are meeting the
    specialized educational and cultural needs of the communities
    served by the station, and may make such recommendations as it
    considers appropriate to meet such needs.
      (C) The role of the board shall be solely advisory in nature,
    except to the extent other responsibilities are delegated to the
    board by the governing body of the station. In no case shall the
    board have any authority to exercise any control over the daily
    management or operation of the station.
      (D) In the case of any public broadcast station (other than any
    station which is owned and operated by a State, a political or
    special purpose subdivision of a State, or a public agency) in
    existence on November 2, 1978, such station shall comply with the
    requirements of this paragraph with respect to the establishment of
    a community advisory board not later than 180 days after November
    2, 1978.
      (E) The provision of subparagraph (A) prohibiting the
    distribution of funds to any public broadcast station (other than
    any station which is owned and operated by a State, a political or
    special purpose subdivision of a State, or a public agency) unless
    such station establishes a community advisory board shall be the
    exclusive remedy for the enforcement of the provisions of this
    paragraph.
      (9) Funds may not be distributed pursuant to this subsection to
    the Public Broadcasting Service or National Public Radio (or any
    successor organization) unless assurances are provided to the
    Corporation that no officer or employee of the Public Broadcasting
    Service or National Public Radio (or any successor organization),
    as the case may be, will be compensated in excess of reasonable
    compensation as determined pursuant to Section (!3) 4958 of title
    26 for services that the officer or employee renders to
    organization,(!4) and unless further assurances are provided to the
    Corporation that no officer or employee of such an entity will be
    loaned money by that entity on an interest-free basis.


      (10)(A) There is hereby established in the Treasury a fund which
    shall be known as the Public Broadcasting Satellite Interconnection
    Fund (hereinafter in this subsection referred to as the "Satellite
    Interconnection Fund"), to be administered by the Secretary of the
    Treasury.
      (B) There is authorized to be appropriated to the Satellite
    Interconnection Fund, for fiscal year 1991, the amount of
    $200,000,000. If such amount is not appropriated in full for fiscal
    year 1991, the portion of such amount not yet appropriated is
    authorized to be appropriated for fiscal years 1992 and 1993. Funds
    appropriated to the Satellite Interconnection Fund shall remain
    available until expended.
      (C) The Secretary of the Treasury shall make available and
    disburse to the Corporation, at the beginning of fiscal year 1991
    and of each succeeding fiscal year thereafter, such funds as have
    been appropriated to the Satellite Interconnection Fund for the
    fiscal year in which such disbursement is to be made.
      (D) Notwithstanding any other provision of this subsection except
    paragraphs (4), (5), (8), and (9), all funds appropriated to the
    Satellite Interconnection Fund and interest thereon - 
        (i) shall be distributed by the Corporation to the licensees
      and permittees of noncommercial educational television broadcast
      stations providing public telecommunications services or the
      national entity they designate for satellite interconnection
      purposes and to those public telecommunications entities
      participating in the public radio satellite interconnection
      system or the national entity they designate for satellite
      interconnection purposes, exclusively for the capital costs of
      the replacement, refurbishment, or upgrading of their national
      satellite interconnection systems and associated maintenance of
      such systems; and
        (ii) shall not be used for the administrative costs of the
      Corporation, the salaries or related expenses of Corporation
      personnel and members of the Board, or for expenses of
      consultants and advisers to the Corporation.

      (11)(A) Funds may not be distributed pursuant to this subsection
    for any fiscal year to the licensee or permittee of any public
    broadcast station if such licensee or permittee - 
        (i) fails to certify to the Corporation that such licensee or
      permittee complies with the Commission's regulations concerning
      equal employment opportunity as published under section 73.2080
      of title 47, Code of Federal Regulations, or any successor
      regulations thereto; or
        (ii) fails to submit to the Corporation the report required by
      subparagraph (B) for the preceding calendar year.

      (B) A licensee or permittee of any public broadcast station with
    more than five full-time employees to file annually with the
    Corporation a statistical report, consistent with reports required
    by Commission regulation, identifying by race and sex the number of
    employees in each of the following full-time and part-time job
    categories:
        (i) Officials and managers.
        (ii) Professionals.
        (iii) Technicians.
        (iv) Semiskilled operatives.
        (v) Skilled craft persons.
        (vi) Clerical and office personnel.
        (vii) Unskilled operatives.
        (viii) Service workers.

      (C) In addition, such report shall state the number of job
    openings occurring during the course of the year. Where the job
    openings were filled in accordance with the regulations described
    in subparagraph (A)(i), the report shall so certify, and where the
    job openings were not filled in accordance with such regulations,
    the report shall contain a statement providing reasons therefor.
    The statistical report shall be available to the public at the
    central office and at every location where more than five full-time
    employees are regularly assigned to work.
      (12) Funds may not be distributed under this subsection to any
    public broadcasting entity that directly or indirectly - 
        (A) rents contributor or donor names (or other personally
      identifiable information) to or from, or exchanges such names or
      information with, any Federal, State, or local candidate,
      political party, or political committee; or
        (B) discloses contributor or donor names, or other personally
      identifiable information, to any nonaffiliated third party unless
      - 
          (i) such entity clearly and conspicuously discloses to the
        contributor or donor that such information may be disclosed to
        such third party;
          (ii) the contributor or donor is given the opportunity,
        before the time that such information is initially disclosed,
        to direct that such information not be disclosed to such third
        party; and
          (iii) the contributor or donor is given an explanation of how
        the contributor or donor may exercise that nondisclosure
        option.
    (l) Financial management and records
      (1)(A) The accounts of the Corporation shall be audited annually
    in accordance with generally accepted auditing standards by
    independent certified public accountants or independent licensed
    public accountants certified or licensed by a regulatory authority
    of a State or other political subdivision of the United States,
    except that such requirement shall not preclude shared auditing
    arrangements between any public telecommunications entity and its
    licensee where such licensee is a public or private institution.
    The audits shall be conducted at the place or places where the
    accounts of the Corporation are normally kept. All books, accounts,
    financial records, reports, files, and all other papers, things, or
    property belonging to or in use by the Corporation and necessary to
    facilitate the audits shall be made available to the person or
    persons conducting the audits; and full facilities for verifying
    transactions with the balances or securities held by depositories,
    fiscal agents and custodians shall be afforded to such person or
    persons.
      (B) The report of each such independent audit shall be included
    in the annual report required by subsection (i) of this section.
    The audit report shall set forth the scope of the audit and include
    such statements as are necessary to present fairly the
    Corporation's assets and liabilities, surplus or deficit, with an
    analysis of the changes therein during the year, supplemented in
    reasonable detail by a statement of the Corporation's income and
    expenses during the year, and a statement of the sources and
    application of funds, together with the independent auditor's
    opinion of those statements.
      (2)(A) The financial transactions of the Corporation for any
    fiscal year during which Federal funds are available to finance any
    portion of its operations may be audited by the Government
    Accountability Office in accordance with the principles and
    procedures applicable to commercial corporate transactions and
    under such rules and regulations as may be prescribed by the
    Comptroller General of the United States. Any such audit shall be
    conducted at the place or places where accounts of the Corporation
    are normally kept. The representative of the Government
    Accountability Office shall have access to all books, accounts,
    records, reports, files, and all other papers, things, or property
    belonging to or in use by the Corporation pertaining to its
    financial transactions and necessary to facilitate the audit, and
    they shall be afforded full facilities for verifying transactions
    with the balances or securities held by depositories, fiscal
    agents, and custodians. All such books, accounts, records, reports,
    files, papers and property of the corporation shall remain in
    possession and custody of the Corporation.
      (B) A report of each such audit shall be made by the Comptroller
    General to the Congress. The report to the Congress shall contain
    such comments and information as the Comptroller General may deem
    necessary to inform Congress of the financial operations and
    condition of the Corporation, together with such recommendations
    with respect thereto as he may deem advisable. The report shall
    also show specifically any program, expenditure, or other financial
    transaction or undertaking observed in the course of the audit,
    which, in the opinion of the Comptroller General, has been carried
    on or made without authority of law. A copy of each report shall be
    furnished to the President, to the Secretary, and to the
    Corporation at the time submitted to the Congress.
      (3)(A) Not later than 1 year after November 2, 1978, the
    Corporation, in consultation with the Comptroller General, and as
    appropriate with others, shall develop accounting principles which
    shall be used uniformly by all public telecommunications entities
    receiving funds under this subpart, taking into account
    organizational differences among various categories of such
    entities. Such principles shall be designed to account fully for
    all funds received and expended for public telecommunications
    purposes by such entities.
      (B) Each public telecommunications entity receiving funds under
    this subpart shall be required - 
        (i) to keep its books, records, and accounts in such form as
      may be required by the Corporation;
        (ii)(I) to undergo a biennial audit by independent certified
      public accountants or independent licensed public accountants
      certified or licensed by a regulatory authority of a State, which
      audit shall be in accordance with auditing standards developed by
      the Corporation, in consultation with the Comptroller General; or
        (II) to submit a financial statement in lieu of the audit
      required by subclause (I) if the Corporation determines that the
      cost burden of such audit on such entity is excessive in light of
      the financial condition of such entity; and
        (iii) to furnish biennially to the Corporation a copy of the
      audit report required pursuant to clause (ii), as well as such
      other information regarding finances (including an annual
      financial report) as the Corporation may require.

      (C) Any recipient of assistance by grant or contract under this
    section, other than a fixed price contract awarded pursuant to
    competitive bidding procedures, shall keep such records as may be
    reasonably necessary to disclose fully the amount and the
    disposition by such recipient of such assistance, the total cost of
    the project or undertaking in connection with which such assistance
    is given or used, and the amount and nature of that portion of the
    cost of the project or undertaking supplied by other sources, and
    such other records as will facilitate an effective audit.
      (D) The Corporation or any of its duly authorized representatives
    shall have access to any books, documents, papers, and records of
    any recipient of assistance for the purpose of auditing and
    examining all funds received or expended for public
    telecommunications purposes by the recipient. The Comptroller
    General of the United States or any of his duly authorized
    representatives also shall have access to such books, documents,
    papers, and records for the purpose of auditing and examining all
    funds received or expended for public telecommunications purposes
    during any fiscal year for which Federal funds are available to the
    Corporation.
      (4)(A) The Corporation shall maintain the information described
    in subparagraphs (B), (C), and (D) at its offices for public
    inspection and copying for at least 3 years, according to such
    reasonable guidelines as the Corporation may issue. This public
    file shall be updated regularly. This paragraph shall be effective
    August 26, 1992, and shall apply to all grants awarded after
    January 1, 1993.
      (B) Subsequent to any award of funds by the Corporation for the
    production or acquisition of national broadcasting programming
    pursuant to subsection (k)(3)(A)(ii)(II) or (iii)(II) of this
    section, the Corporation shall make available for public inspection
    the following:
        (i) Grant and solicitation guidelines for proposals for such
      programming.
        (ii) The reasons for selecting the proposal for which the award
      was made.
        (iii) Information on each program for which the award was made,
      including the names of the awardee and producer (and if the
      awardee or producer is a corporation or partnership, the
      principals of such corporation or partnership), the monetary
      amount of the award, and the title and description of the program
      (and of each program in a series of programs).
        (iv) A report based on the final audit findings resulting from
      any audit of the award by the Corporation or the Comptroller
      General.
        (v) Reports which the Corporation shall require to be provided
      by the awardee relating to national public broadcasting
      programming funded, produced, or acquired by the awardee with
      such funds. Such reports shall include, where applicable, the
      information described in clauses (i), (ii), and (iii), but shall
      exclude proprietary, confidential, or privileged information.

      (C) The Corporation shall make available for public inspection
    the final report required by the Corporation on an annual basis
    from each recipient of funds under subsection (k)(3)(A)(iii)(III)
    of this section, excluding proprietary, confidential, or privileged
    information.
      (D) The Corporation shall make available for public inspection an
    annual list of national programs distributed by public broadcasting
    entities that receive funds under subsection (k)(3)(A)(ii)(III) or
    (iii)(II) of this section and are engaged primarily in the national
    distribution of public television or radio programs. Such list
    shall include the names of the programs (or program series),
    producers, and providers of funding.
    (m) Needs of minorities and other groups
      (1) Prior to July 1, 1989, and every three years thereafter, the
    Corporation shall compile an assessment of the needs of minority
    and diverse audiences, the plans of public broadcasting entities
    and public telecommunications entities to address such needs, the
    ways radio and television can be used to help these
    underrepresented groups, and projections concerning minority
    employment by public broadcasting entities and public
    telecommunications entities. Such assessment shall address the
    needs of racial and ethnic minorities, new immigrant populations,
    people for whom English is a second language, and adults who lack
    basic reading skills.
      (2) Commencing July 1, 1989, the Corporation shall prepare an
    annual report on the provision by public broadcasting entities and
    public telecommunications entities of service to the audiences
    described in paragraph (1). Such report shall address programming
    (including that which is produced by minority producers), training,
    minority employment, and efforts by the Corporation to increase the
    number of minority public radio and television stations eligible
    for financial support from the Corporation. Such report shall
    include a summary of the statistical reports received by the
    Corporation pursuant to subsection (k)(11) of this section, and a
    comparison of the information contained in those reports with the
    information submitted by the Corporation in the previous year's
    annual report.
      (3) As soon as they have been prepared, each assessment and
    annual report required under paragraphs (1) and (2) shall be
    submitted to Congress.