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CRITERIA FOR APPROVAL AND EXPENDITURES BY SECRETARY OF

COMMERCE

SEC. 393.175 [47 U.S.C. 393] (a) The Secretary, in consultation with the Corporation, public telecommunications entities, and as appropriate with others, shall estblish criteria for making construction and planning grants. Such criteria shall be consistent with the objectives and provisions set forth in this subpart, and shall be made available to interested parties upon request.

(b) The Secretary shall base determinations of whether to approve applications for grants under this subpart, and the amount of such grants, on criteria developed pursuant to subsection (a) and designed to achieve

(1) the provision of new telecommunications facilities to extend service to areas currently not receiving public telecommunications services;

(2) the expansion of the service areas of existing public telecommunications entities;

(3) the development of public telecommunications facilities owned by, operated by, and available to minorities and women; and

(4) the improvement of the capabilities of existing public broadcast stations to provide public telecommunications services.

(c) of the sums appropriated pursuant to section 391 for any fiscal year, a substantial amount shall be available for the expansion and development of noncommercial radio broadcast station facilities.

(g) The Secretary shall require that the recipient of a grant or contract under this section submit a summary and evaluation of the results of the demonstration at least annually for each year in which funds are received pursuant to this section.

(h) There are authorized to be appropriated $1,000,000 for the fiscal year ending September 30, 1977, and $250,000 for the period July 1, 1976, through September 30, 1976, to carry out the provisions of this section. Sums appropriated under this subsection for any fiscal year or period shall remain available for payment of grants or contracts for projects for which applications approved under this section have been submitted within one year after the last day of such fiscal year or period.

175 Section 393 was amended to read as above by Public Law 95-567, approved November 2, 1978, 92 Stat. 2405, 2408. This section was originally added by Public Law 87-477, approved May 1, 1962, 76 Stat. 66, and was amended by Public Law 90-129, approved November 7, 1967, 81 Stat. 367. The section previously read as follows:

RECORDS

SEC. 393. (a) Each recipient of assistance under this subpart shall keep such records as may be reasonably necessary to enable the Secretary to carry out his functions under this subpart, including records which fully disclose the amount and the disposition by such recipient of the proceeds 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.

(b) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this subpart.

LONG-RANGE PLANNING FOR FACILITIES

SEC. 394.176 [47 U.S.C. 394] (a) The Secretary, in consultation with the Corporation, public telecommunications entities, and as appropriate with other parties, shall develop a long-range plan to accomplish the objectives set forth in section 390. Such plan shall include a detailed 5-year projection of the broadcast and nonbroadcast public telecommunications facilities required to meet such objectives, and the expenditures necessary to provide such facilities. (b) The plan required in subsection (a) shall be updated annually, and a summary of the activities of the Secretary in implementing the plan, shall be submitted concurrently to the President and the Congress not later than the 31st day of December of each year.

Subpart B177-Telecommunications Demonstrations

ASSISTANCE FOR DEMONSTRATION PROJECTS

SEC. 395.178 [47 U.S.C. 395] (a) It is the purpose of this subpart to promote the development of nonbroadcast telecommunications facilities and services for the transmission, distribution, and delivery of health, education, and public or social service information. The Secretary is authorized, upon receipt of an application in such form and containing such information as he may by regulation require, to make grants to, and enter into contracts with, public and private nonprofit agencies, organizations, and institutions for the purpose of carrying out telecommunications demonstrations.

(b) The Secretary may approve an application submitted under subsection (a) if he determines that

(1) the project for which application is made will demonstrate innovative methods or techniques of utilizing nonbroad

176 Section 394 was amended to read as above by Public Law 95-567, approved November 2, 1978, 92 Stat. 2405, 2409. The section previously read as follows:

RULES AND REGULATIONS

SEC. 394. The Secretary is authorized to make such rules and regulations as may be necessary to carry out this subpart, including regulations relating to the order of priority in approving ap plications for projects under section 392 or to determining the amounts of grants for such projects. This section, formerly section 396, added by Public Law 87-447, approved May 1, 1962, 76 Stat. 67, was amended by substituting "subpart" for "part" and was redesignated section 394 by Public Law 90-129, approved November 7, 1967, 81 Stat. 367.

Prior section 394, which was added by Public Law 87-447, approved May 1, 1962, 76 Stat. 67, was amended and redesignated section 397 by Public Law 90-129, approved November 7, 1967, 81 Stat. 367.

177 The heading of Subpart B was redesignated as "Subpart C" and a new Subpart B was added by Public Law 95-567, approved November 2, 1978, 92 Stat. 2405, 2409. The subpart was originally added by Public Law 90-129, approved November 7, 1967, 81 Stat. 368.

178 Section 395 was amended to read as above by Public Law 95-567, approved November 2, 1978, 92 Stat. 2405, 2409-11. Public Law 95-567 also deleted the former Section 395. The section was originally added by Public Law 87-447, approved May 1, 1962, 76 Stat. 67, and was amended by Public Law 90-129, approved November 7, 1967, 81 Stat. 367, and further amended by Public Law 94-309, approved June 5, 1976, 90 Stat. 684. The prior amended section read as follows:

COORDINATION WITH THE COMMISSION AND THE CORPORATION

SEC. 395. The Federal Communications Commission is authorized to provide such assistance in carrying out the provisions of this subpart as may be requested by the Secretary. The Secretary shall provide for close coordination with the Federal Communications Commission in the administration of his functions under this subpart which are of interest to or affect the functions of the Commission. The Secretary shall provide for close coordination with the Corporation for Public Broadcasting in the administration of his functions under this subpart which are of interest to or affect the functions of this Corporation.

cast telecommunications equipment or facilities to satisfy the purpose of this subpart;

(2) demonstrations and related activities assisted under this subpart will remain under the administration and control of the applicant;

(3) the applicant has the managerial and technical capability to carry out the project for which the application is made; and (4) the facilities and equipment acquired or developed pursuant to the application will be used substantially for the transmission, distribution, and delivery of health, education, or public or social service information.

(c) Upon approving any application under this subpart with respect to any project, the Secretary shall make a grant to or enter into a contract with the applicant in an amount determined by the Secretary not to exceed the reasonable and necessary cost of such project. The Secretary shall pay such amount from the sums available therefor, in advance or by way of reimbursement, and in such installments consistent with established practice, as he may determine.

(d) Funds made available pursuant to this subpart shall not be available for the construction, remodeling, or repair of structures to house the facilities or equipment acquired or developed with such funds, except that such funds may be used for minor remodeling which is necessary for and incidental to the installation of such facilities or equipment.

(e) For purposes of this section, the term "nonbroadcast telecommunications facilities" includes, but is not limited to, cable television systems, communications satellite systems and related terminal equipment, and other modes of transmitting, emitting, or receiving images and sounds or intelligence by means of wire, radio, optical, electromagnetic or other means.

(f) The funding of any demonstration pursuant to this subpart shall continue for not more than 3 years from the date of the original grant or contract.

(g) The Secretary shall require that the recipient of a grant or contract under this subpart submit a summary and evaluation of the results of the demonstration at least annually for each year in which funds are received pursuant to this section.

(h)(1) Each recipient of assistance under this subpart shall keep such records as may be reasonably necessary to enable the Secre tary to carry out the Secretary's functions under this subpart, including records which fully disclose the amount and the disposition by such recipient of the proceeds of such assistance, the total cost of the project or undertaking in connection with which such assistance is given or used, 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.

(2) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purposes of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this subpart.

(i) The Secretary is authorized to make such rules and regulations as may be necessary to carry out this subpart, including regulations relating to the order of priority in approving applications for projects under this subpart or to determining the amounts of grants for such projects.

(j) The Commission is authorized to provide such assistance in carrying out the provisions of this subpart as may be requested by the Secretary. The Secretary shall provide for close coordination with the Commission in the administration of the Secretary's functions under this subpart which are of interest to or affect the functions of the Commission. The Secretary shall provide for close coordination with the Corporation in the administration of the Secretary's functions udner this subpart which are of interest to or affect the functions of the Corporation.

(k) There are authorized to be appropriated $1,000,000 for each of the fiscal years 1979, 1980, and 1981, to be used by the Secretary to carry out the provisions of this subpart. Sums appropriated under this subsection for any fiscal year shall remain available for payment of grants or contracts for projects for which applications approved under this subpart have been submitted within one year after the last day of such fiscal year.

Subpart C 179-Corporation for Public Broadcasting

DECLARATION OF POLICY

SEC. 396.180 [47 U.S.C. 396] (a) 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 alterna

179 Subpart C redesignated by Public Law 95-567, approved November 2, 1978, 92 Stat. 2409. This Subpart was originally Subpart B, added by Public Law 90-129, approved November 7, 1967, 81 Stat. 368.

180 Section 396 was added by Public Law 90-129, approved November 7, 1967, 81 Stat. 368. Prior section 396, which was added by Public Law 87-447, approved May 1, 1962, 76 Stat. 67, was redesignated as section 394.

tive telecommunications services for all the citizens of the Nation; 181

(6) 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; and

(7) a private corporation should be created to facilitate the development of public telecommunications and to afford maximum protection from extraneous interference and control.182

Corporation Established

(b) 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.

Board of Directors 183

(c)(1) The Corporation for Public Broadcasting shall have a Board of Directors (hereinafter in this section referred to as

181 Paragraph (5) was amended by Public Law 97-35, approved August 13, 1981, 95 Stat. 357, 725, by adding all that follows after "excellence." 182 Section 296(a) was amended to read as above by Public Law 95-567, approved November 2, 1978, 92 Stat. 2405, 2411. The section previously read as follows:

CONGRESSIONAL DECLARATION OF POLICY

SEC. 396. (a) The Congress hereby finds and declares

(1) that it is in the public interest to encourage the growth and development of noncommercial educational radio and television broadcasting, including the use of such media for instructional purposes;

(2) that expansion and development of noncommercial educational radio and television broadcasting and of diversity of its programming depend on freedom, imagination, and inititive on both the local and national levels;

(3) that the encouragement and support of noncommercial educational radio and television broadcasting, while matters of importance for private and local development, are also of appropriate and important concerns to the Federal Government;

4) that it furthers the general welfare to encourage noncommercial educational radio and television broadcast programming which will be responsive to the interests of people both in particular localities and throughout the United States, and which will constitute an expression of diversity and excellence;

(5) that it is necessary and appropriate for the Federal Government to complement, assist, and support a national policy that will most effectively make noncommercial educational radio and television service available to all the citizens of the United States;

(6) that a private corporation should be created to facilitate the development of educational radio and television broadcasting and to afford maximum protection to such broadcasting from extraneous interference and control.

183 Subsection 396(c) was amended to read as above by Public Law 97-35, 95 Stat. 357, 725-26, August 13, 1981. Section 1225(a)(2) of the statute stated:

(2)(Á) The amendment made in paragraph (1) of the statute shall not affect the continuation in office of any individual serving on the Board of Directors of the Corporation for Public Broadcasting on the date of the enactment of this Act.

(B) The first 5 vacancies occurring on the Board after October 1, 1983 (other than any vacancy in the office of Chairman) shall not be filled, so as to reduce the membership of the Board to 10 members in addition to the Chairman of the Board.

Subsequently, subparagraph (B) of the statute was revised. Public Law 97-410, 96 Stat. 2043, 2044, Jan. 3, 1983, amended section 1225(a)(2)(B) to read as follows:

(B) Notwithstanding the provisions of subsection (c) of section 396 of the Communications Act of 1934, in the case of the offices of director the terms of which expired March 1982, persons appointed to fill two of such vacancies existing as of December 13, 1982, shall be appointed for terms which shall expire on March 1, 1984 and shall not be representative of

Continued

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