FINANCING FOR PUBLIC BROADCASTING-1972 TUESDAY, FEBRUARY 1, 1972 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COMMUNICATIONS AND POWER, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 2123, Rayburn House Office Building, Hon. Torbert H. Macdonald (chairman) presiding. Mr. MACDONALD. The hearing will come to order. We are here to hear testimony concerning H.R. 11807, introduced by me, and H.R. 7443, introduced by my colleague from Rhode Island, Mr. Tiernan. The point of the hearings is to find out whether or not long-range financing for the Corporation for Public Broadcasting is a good idea. I happen to think so, but we will see. The subcommittee has dealt with this matter many times before. The Corporation for Public Broadcasting is a private, nonprofit corporation which was established by the Public Broadcasting Act of 1967. That legislation had its inception in this subcommittee almost 5 years ago. The Corporation was established to assist in the establishment and development of public radio and television broadcasting stations; secondly, to aid in the development of programs of high quality for presentation over those stations and to assist in the establishment and development of a system of interconnection. Almost from the first day in 1967 when we considered the legislation establishing the Corporation, we have been concerned with the problem of long-range financing for it. We have heard from both Democratic and Republican administrations that they would come up with the necessary legislation. As a matter of fact, on January 29, 1971, President Nixon, in his budget message to us here in the Congress, stated: "Legislation will be proposed to provide an improved financing arrangement for the Corporation." Until this day, February 1, 1972, which obviously is just about 1 year and 1 day later, no such legislation has been received by the Congress, nor, as a matter of fact, have any members of this subcommittee been given any reason to believe that such legislation will soon be forthcoming. Thus, we begin these hearings with a sense of frustration and some irritation. Before we recognize the first witness, I think it would be appropriate for me to state for the record the reasons why I personally-and other (1) members of this subcommittee, I am sure-attach such importance to providing long-range financing for the Corporation for Public Broadcasting. First, it permits the Corporation to carry out its statutory duties more efficiently and effectively, hopefully, by permitting it to plan ahead-"lead time," as it is called in other industries with adequate levels of Federal support but not dependent on Federal support. It seems to me it should provide further insulation of public broadcasting from Government interference and control over programing. We have, here in the subcommittee, I am sure, no intention of permitting public broadcasting or the Corporation to be subjected to public castigation or political pressuring by any arm of the Federal Government. It should not be, in my judgment, and I hope it will never be. But we want to hear-and this is the purpose of the hearing why long-range financing is good; we want to hear what mistakes you have made, if you have made any indeed. We would like to take a case to the floor of the Congress to give you longrange financing. "Long-range" sounds like 20 years, which it is not, obviously. We would like to take to the floor of the Congress a bill that would do well for the public and for you, and for you to give us testimony that would prove that you have been doing your job. The text of the bills and agency reports thereon covered in this hearing will be placed in the record at this point. (The text of H.R. 11807, H.R. 7443, and H.R. 12808, and agency reports thereon follow :) 92D CONGRESS 1ST SESSION H. R. 11807 IN THE HOUSE OF REPRESENTATIVES NOVEMBER 16, 1971 Mr. MACDONALD of Massachusetts introduced the following bill; which was referred to the Committee on Interstate and Foreign Commerce A BILL To provide for improved financing for the Corporation for Public Broadcasting, and for other purposes. 1 Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Public Broadcasting Act 4 of 1971". 5 TITLE I-EXPANSION OF SCOPE AND IMPROVED 6 7 8 FINANCING OF CORPORATION FOR PUBLIC SEC. 101. (a) Section 296 (g) (2) of the Communica9 tions Act of 1934 is hereby amended by striking out "and" 10 at the end of subparagraph (G), by striking out the period 11 at the end of subparagraph (H) and inserting in lieu thereof 2 1 66 '; and", and by inserting after subparagraph (II) the fol 2 lowing new subparagraphs: 3 4 5 6 7 8 9 "(I) to distribute among qualified applicants the funds under paragraph (k) (3) of this section." "(J) to encourage and assist the utilization and development of all forms of telecommunications facilities (including new technology) for the production and distribution of educational radio and television programs." (b) Subsection (k) of section 396 of the Communica10 tions Act of 1934 is amended to read as follows: 11 12 "(k) (1) There is hereby established in the Treasury a special fund which shall be known as the Public Broadcast13 ing Fund, to be dispensed in the manner and for the purposes 14 hereinafter set forth. There is appropriated to said Fund for 15 the fiscal year ending June 30, 1973, $65,000,000, and for 16 each of the four succeeding fiscal years such amount as, 17 together with the balance remaining in the Fund at the 18 close of the immediately preceding fiscal year, will bring 19 said Fund to the level of $90,000,000 for the fiscal year 20 ending June 30, 1974; $120,000,000 for the fiscal year 21 ending June 30, 1975; $140,000,000 for the fiscal year 225 222 ending June 30, 1976; and $160,000,000 for the fiscal year 23 ending June 30, 1977." 24 25 "(2) During the fiscal year ending June 30, 1973, and during each of the four succeeding fiscal years there shall |