the imposition of sanctions or penalties upon any licensee for his conduct as such or for alleged deficiencies in the operation of his station."

SEC. 12. Section 309 of such Act, as amended, is amended to read as follows:

"HEARINGS ON APPLICATIONS FOR LICENSES; FORM OF LICENSES; CONDITIONS ATTACHED TO LICENSES

"SEC. 309. (a) If upon examination of any application provided for in section 308 the Commission shall determine that public interest, convenience, and necessity would be served by the granting thereof, it shall authorize the issuance of the instrument of authorization for which application is made in accordance with said finding.

"(b) If upon examination of any such application the Commission is unable to make the finding specified in subsection (a) of this section, it shall forthwith notify the applicant and other known parties in interest of the grounds and reasons for its inability to make such finding. Such notice, which shall precede formal designation for a hearing, shall advise the applicant and all other known parties in interest of all objections made to the application as well as the source and nature of such objections. The parties in interest shall include, in addition to such others as the Commission may determine, any person whose status as the holder of a construction permit or license would be adversely affected economically or by electrical interference because of the authorization or action proposed and any person then an applicant for facilities whose status as such applicant would be adversely affected on either or both of such grounds. Following such notice, the Commission shall formally designate the application for hearing on the grounds or reasons then obtaining and shall notify the applicant and all other known parties in interest of such action and the grounds and reasons therefor, specifying with particularly, the matters and things in issue but not including issues or requirements phrased generally. The parties in interest, if any, who are not notified by the Commission of its action with respect to a particular application may acquire the status of a party to the proceeding thereon by filing a petition for intervention showing the basis for their interest at any time not less than ten days prior to the date of hearing. Any hearing subsequently held upon such application shall be a full hearing in which the applicant and all other parties in interest shall be permitted to participate but in which both the burden of proceeding with the introduction of evidence upon any issue specified by the Commission, as well as the burden of proof upon all such issues, shall be upon the applicant.

"(c) When any instrument of authorization is granted by the Commission without a hearing as provided in subsection (a) hereof, such grant shall remain subject to protest as hereinafter provided for a period of thirty days. During such thirty-day period any party in interest, as defined in subsection (b) hereof, may file a protest directed to such grant and request a hearing on said application so granted. Any protest so filed shall contain such allegations of fact as will show the protestant to be a party in interest and shall specify with particularity the matters and things in issue but shall not include issues or allegations phrased generally. Upon the filing of such protest the application involved shall be set for hearing upon the issues set forth in said protest, together with such further specific issues, if any, as may be prescribed by the Commission. In any hearing subsequently held upon such application all issues specified by the Commission shall be tried in the same manner provided in subsection (b) hereof but with respect of all issues set forth in the protest and not specifically adopted by the Commission, both the burden of proceeding with the introduction of evidence and the burden of proof shall be upon the protestant. The hearing and determination of cases arising under this subsection shall be expedited by the Commission and pending hearing and decision the effective date of the Commission's action to which protest is made shall be postponed to the date of the Commission's decision after hearing, unless the authorization involved is necessary to the maintenance or conduct of an existing service, in which event the Commission shall authorize the applicant to utilize the facilities or authorization in question pending the Commission's decision after hearing.

"(d) Such station licenses as the Commission may grant shall be in such general form as it may prescribe, but each license shall contain, in addition to other provisions, a statement of the following conditions to which such license shall be subject: (1) The station license shall not vest in the licensee any right to operate the station nor any right in the use of the frequencies designated in the

license beyond the term thereof nor in any other manner than authorized therein; (2) neither the license nor the right granted thereunder shall be assigned or otherwise transferred in violation of this Act; (3) every license issued under this Act shall be subject in terms to the right of use or control conferred by section 606 hereof."

SEC. 13. Subsection (b) of section 310 of said Act is amended to read as follows: "(b) No instrument of authorization granted by the Commission entitling the holder thereof to construct or to operate radio apparatus and no rights granted thereunder shall be transferred, assigned, or disposed of in any manner, voluntarily or involuntarily, directly or indirectly, or by transfer of control of any corporation holding such instrument of authorization, to any person except upon application to the Commission and upon finding by the Commission that the proposed transferee or assignee possesses the qualifications required of an original permittee or licensee. The procedure for handling such application shall be that provided in section 309 hereof with respect to applications for licenses."

SEC. 14. Section 312 of such Act, as amended, is amended to read as follows: SEC. 312. (a) Any station license may be revoked (1) because of conditions coming to the attention of the Commission since the granting of such license which would have warranted the Commission in refusing to grant such license, or (2) for violation of or failure to observe the terms and conditions of any cease-and-desist order issued by the Commission pursuant to subsection (b) hereof: Provided, That no such order of revocation shall take effect until thirty days' notice in writing thereof, stating the cause for the proposed revocation, has been given to the licensee. Such licensee may make written application to the Commission at any time within said thirty days for a hearing upon such order, and upon the filing of such written application said order of revocation shall stand suspended until the conclusion of the hearing. Upon the conclusion of said hearing the Commission may affirm, modify, or revoke said order of revocation.

"(b) Where a station licensee (1) has failed to operate substantially as set forth in the license, or (2) has failed to observe any of the restrictions and conditions of this Act or of a treaty ratified by the United States, or (3) has violated or failed to observe any rule or regulation of the Commission authorized by this Act, the Commission may institute a proceeding by serving upon the licensee an order to show cause why it should not cease and desist from such action. Said order shall contain a statement of the particulars and matters with respect to which the Commission is inquiring and shall call upon the licensee to appear before the Commission at a time and place therein stated, but in no event less than thirty days after receipt of such notice, and give evidence upon the matter specified in said order. If, after hearing, or a waiver thereof by the licensee, the Commission determines that a cease and desist order should issue, it shall make a report in writing stating the findings of the Commission and the grounds and reasons therefor and shall cause the same to be served on said licensee, together with such order.

"(c) Any station license granted under the provisions of this Act or the construction permit required thereby may be modified by the Commission either for a limited time or for the duration of the term thereof, if in the judgment of the Commission such action will promote the public interest, convenience, and necessity, or the provisions of this Act or of any treaty ratified by the United States will be more fully complied with: Provided, That no such order of modification shall become final until the holder of such outstanding license or permit shall have been notified in writing of the proposed action and the grounds and reasons therefor, and shall have been given reasonable opportunity, in no event less than thirty days, to show cause by public hearing, if requested, why such order of modification should not issue.

"(d) In any case where a hearing is conducted pursuant to the provisions of this section, both the burden of proceeding with the introduction of evidence and the burden of proof shall be upon the Commission."

SEC. 15. Section 315 of such Act is amended to read as follows:

"SEC. 315. Nothing in this Act shall be understood as imposing or as authorizing or permitting the Commission to impose any obligation upon the licensee of any radio broadcast station to allow the use of such station in any political campaign. In the event that the licensee of any such station shall permit such use, it shall be in accordance with the following conditions and obligations:

"(a) When any licensee permits any person who is a legally qualified candidate for any public office in a primary, general, or other election to use a broad

cast station, or permits any person to use a broadcast station in support of any such candidate, he shall afford equal opportunities to all other such candidates for that office, or to a person designated by any such candidate, to use such broadcast station; and if any licensee permits any person to use a broadcast station in opposition to any such candidate or candidates, he shall afford equal opportunities to the candidate or candidates so opposed, or to a person designated by any such candidate, in the use of such broadcast station.

"(b) When a licensee permits an official of a regularly organized political party, or a person designated by him, to use a broadcast station in any political campaign, then the corresponding official in all other regularly organized political parties, or a person designated by him shall have equal opportunities for its use.

"(c) No licensee shall, during a political campaign, permit the use of the facilities of a broadcast station for or against any candidate for any public office except (1) by a legally qualified candidate for the same office; or (2) by a person designated, in writing, by such candidate; or (3) by a regularly organized political party whose candidate's or candidates' names appear on the ballot and whose duly chosen responsible officers designate a person to use such facilities.

"(d) When any licensee permits any person to use a broadcast station in support of or in opposition to any public measure to be voted upon as such in a referendum, initiative, recall, or other form of election, he shall afford equal opportunities (including time in the aggregate) for the presentation of each different view on such public measure.

"(e) No licensee shall permit the making of any political broadcast, or the discussion of any question by or upon behalf of any political candidate or party as herein provided, for a period beginning twenty-four hours prior to and extending throughout the day on which a National, State, or local election is to be held.

"(f) Neither licensees nor the Commission shall have power of censorship over the material broadcast under the provisions of this section: Provided, That licensees shall not be liable for any libel, slander, invasion of right of privacy, or any similar liability imposed by any State, Federal, or Territorial, or local law for any statement made in any broadcast under the provisions of this section, except as to statements made by the licensee or persons under his control.

"(g) The duty of the licensee to observe the conditions herein stated shall apply to all political activities, whether local, State, or National in their scope and application. The term ‘equal opportunities' as used in this section and in section 330 of this Act means the consideration, if any, paid or promised for the use of such station, the approximate time of the day or night at which the broadcast is made, an equal amount of time, the use of the station in combination with other stations, if any, used by the original user, and in the case of network organizations, an equivalent grouping of stations connected for simultaneous broadcast or for any recorded rebroadcasts."

SEC. 16. The heading of section 326 of such Act is amended to read "Censorship", and such section is amended to read as follows:

"SEC. 326. (a) Nothing in this Act shall be understood or construed to give the Commission the power to regulate the business of the licensee of any radio broadcast station unless otherwise specifically authorized in this Act.

"(b) The Commission shall have no power to censor, alter, or in any manner affect or control the substance of any material to be broadcast by any radio broadcast station licensed pursuant to this Act, and no regulation or condition shall be promulgated or imposed by the Commission which shall interfere with the right and duty of the licensee of any such station to determine, subject to the limitations of this Act, the character and the source of the material to be broadcast: Provided, That nothing herein contained shall be construed to limit the authority of the Commission in its consideration of applications for renewal of licenses to determine whether or not the licensee has operated in the public interest."

SEC. 17. Part 1 of title III of such Act is amended by adding two new sections as follows:

"DISCUSSION OF PUBLIC OR POLITICAL QUESTIONS

"SEC. 330. When and if a radio broadcast station is used for the presentation of political or public questions otherwise than as provided for in section 315 hereof, it shall be the duty of the licensee of any such station to afford equal opportunities for the presentation of different views on such questions: Provided,

That the time, in the aggregate, devoted to different views on any such question shall not be required to exceed twice that which was made available to the original user or users. Neither the licensee of any station so used nor the Commission shall have the power to censor, alter, or in any manner affect or control the substance of any program material so used: Provided, however, That no licensee shall be required to permit the broadcasting of any material which advocates the overthrow of the Government of the United States by force or violence: And provided further, That no licensee shall be required to broadcast any material which might subject the licensee to liability for damages or to penalty or forfeiture under any local, State, or Federal law or regulation. In all cases arising under this section, the licensee shall have the right to demand and receive a complete and accurate copy of the material to be broadcast a sufficient time in advance of its intended use to permit an examination thereof and the deletion therefrom of any material necessary to conform the same to the requirements of this section. "SEC. 331. No licensee of any radio broadcast station shall permit the use of such station for the presentation of any public or political questions under section 315 or 330, unless the person or persons arranging or contracting for the broadcast time shall, prior to the proposed broadcast, disclose in writing and deliver to the licensee (a) the name of the speaker or speakers; (b) the subject of the discussion; (c) the capacity in which the speaker or speakers appear; that is, whether on their own account as an individual candidate or public officer, or as the representative, advocate, or employee of another; and how the time for the broadcast was made available, and if paid for, by whom. It shall be the duty of the licensee of the station so used to cause an announcement of the name of the speaker or speakers using the station, together with the other information required by this section, to be made both at the beginning and at the end of the broadcast: Provided, That in the case of a public officer speaking as such, the announcements shall specify only the subject of the discussion, the office held by him, whether such office is elective or appointive and by what political unit or political officer the power of election or appointment is exercised. Where more than one broadcast station or a network of such stations is used as herein provided, the requirements of this section will be met by filing the required material with the licensee of the originating station and by broadcasting the required announcements over all stations which broadcast the subject program."

SEC. 18. Part 1 of title III of such Act is further amended by adding at the end thereof a new section as follows:

"IDENTIFICATION OF SOURCE IN NEWS BROADCASTS

"SEC. 332. (a) All news items or the discussion of current events broadcast by any radio broadcast station shall be identified generally as to source and all editorial or interpretative comment, if any, concerning such items or events shall be identified as such and as to source and responsibility. It shall be the duty of the licensee of any radio broadcast station used for such purpose to cause an appropriate announcement to be made both at the beginning and at the end of any such broadcast in sufficient detail to inform the audience concerning the origin of the material being broadcast and whose editorial and other comment, if any, is being expressed. Where more than one broadcast station or a network of such stations is used as herein provided, the responsibility for compliance with the requirements of this section shall be upon the original station.

"(b) Nothing contained in sections 315, 330, and 331 hereof shall apply to broadcasts devoted to general news reports or descriptions or presentations of current events in which reference to a particular candidate or to public or political questions is incidental to the general purpose of the broadcast."

SEC. 19. Part 1 of title III of such Act is further amended by adding at the end thereof a new section as follows:

"LIMITATIONS ON CHAIN BROADCASTING AND STATION OWNERSHIP

"SEC. 333. (a) No radio broadcast station shall enter into any contract, arrangements, or understanding, express or implied, with a network organization—

"(1) under which the station is prevented or hindered from, or penalized for, broadcasting the program of any other network organization on time otherwise available for that purpose (including time optioned but upon which no notice of exercise has been given); or

"(2) which prevents or hinders another station serving the same or substantially the same area from broadcasting the network's programs not taken

by the former station, or which prevents or hinders another station serving a substantially different area from broadcasting any program of the network organization; or

"(3) which provides, by original term, provisions for renewal, or otherwise that the station will broadcast the programs of the network organization for a period longer than three years; or

"(4) which gives any network organization an option upon periods of time which are unspecified or which gives one or more network organizations options upon specified periods of time totaling more than 50 per centum of the total number of hours for which the station is licensed to operate or upon a total of more than two hours in many consecutive three-hour period or options which can be exercised upon notice to the station of less than fifty-six days; or

"(5) which prevents the station from rejecting or refusing network programs which the station reasonably believes to be unsatisfactory, unsuitable, or contrary to the public interest, or from substituting a program of outstanding local or national importance for any offered by the network; or

"(6) under which the network fixes or attempts to fix or control the rates charged by the station for the sale of broadcast time for other than the network's programs.

"(b) No person shall own, control, or operate more than one such network in a single broadcast band: Provided, That this subsection shall not be applicable if such networks are not operated simultaneously, or if there is no substantial overlap in the territory served by the group of stations comprising each such network.

"(c) One year after the date of enactment of this Act the Commission shall observe the following limitations upon its licensing powers:

"(1) No person (including all persons under common control) shall own or control or be the licensee of more than one broadcast station in any single broadcast ban when such stations cover the same or substantially the same

area.

"(2) The Commission shall make or promulgate no rule or regulation of general application, the purpose or effect of which will be to fix or limit the number of broadcast stations which may be licensed to any person, but in acting upon individual applications the Commission is hereby authorized and directed to make and maintain a fair and equitable distribution of radio broadcast facilities as between various applicants therefor when such action can be taken consistent with the requirements of section 307 and the equities of existing licensees: Provided, That no person (including all persons under common control) shall own or control or be the licensee of broadcast stations in any single band which in the aggregate provide a primary service, under the standards of good engineering practice established by the Commission, for more than 25 per centum of the population of the continental United States as determined in the last preceding decennial

census.

"(d) It shall be the duty of the Commission to take such action as is necessary to expedite compliance with the provisions of this section including, where necessary, the voluntary transfer of outstanding construction permits and licenses for stations of the class or classes affected thereby from licensees or permittees made ineligible to hold the same to persons who are qualified under the provisions of this section. The term 'control' as used in this section means the actual or legal right to the direction, supervision, and control of a broadcast station or its licensee or permittee, whether resulting from ownership of a controlling percentage of the issued shares of stock or other evidences of ownership of the entity holding the license or permit, or from other cogent proof of the actual or legal right to such direction, supervision, or control."

SEC. 20. Part I of title III of such Act is further amended by adding at the end thereof a new section as follows:

INDECENT LANGUAGE AND FALSE STATEMENTS

"SEC. 334. No person shall utter any obscene, indecent, or profane language, and no person shall knowingly make or publish any false accusation or charge against any person, by means of radio communication.”

SEC. 21. The heading of section 401 of such Act is amended to read "Jurisdiction to Enforce Act and Orders of Commission; Declaratory Orders"; and