[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1987 Introduced in House (IH)]
103d CONGRESS
1st Session
H. R. 1987
To prohibit pay-per-view charges for entertainment events that receive
public financial support whether or including private entities,
nonprofit organizations or governmental entities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 5, 1993
Mr. Lipinski introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To prohibit pay-per-view charges for entertainment events that receive
public financial support whether or including private entities,
nonprofit organizations or governmental entities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taxpayer's Right To View Act of
1993''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) The Federal Communications Commission predicts a
diminished role for broadcast television and a more prominent
role for cable television including pay-per-view.
(2) Roughly 18,800,000 American homes are equipped to
receive pay-per-view and this number is expected to increase to
35,900,000 by 1996. Overall pay-per-view revenue is expected to
reach $1,100,000,000 by 1996.
(3) There is a growing trend toward making events available
exclusively on pay-per-view.
(4) As this trend develops, whether the consumer has access
to these events will be determined by the ability of the
consumer to pay.
(5) Professional sports leagues are beginning to see pay-
per-view as a new revenue source to keep pace with escalating
player salaries.
(6) As a result, some media analysts predict that several
of broadcast television's premier sports attractions eventually
will migrate to pay-per-view.
(7) Limited access to viewing such events as the ``Super
Bowl'' or ``World Series'' would deprive citizens of the
ability to enjoy these events which are inherent in the
American tradition.
(8) The majority of facilities in which such events are
held are funded through taxpayer money.
(9) It is unfair that taxpayers, who subsidize the
construction and maintenance of many of these facilities,
should have to pay an additional pay-per-view charge for
viewing these events.
(10) Nonprofit and public organizations including public
and private educational institutions and their athletic
organizations are exempt from the corporate income tax.
(11) Furthermore, corporations can deduct their donations
to college sporting events as charitable contributions.
(12) Tax exempt status is granted to these nonprofit and
public organizations by the Federal Government and it is unfair
to allow those who use this status to engage in pay-per-view
telecasting--thus forcing taxpayers to pay again.
(13) It is unfair that taxpayers, who subsidize the
construction and maintenance of many of these facilities,
should have to pay an additional pay-per-view charge for
viewing these events.
(14) Therefore, Congress should ensure that all taxpaying
citizens have free access to events that are sponsored by
organizations with nonprofit tax exempt status and those events
held in taxpayer subsidized facilities.
SEC. 3. PAY-PER-VIEW CHARGES PROHIBITED.
Section 623 of the Communications Act of 1934 (47 U.S.C. 543) is
amended by adding at the end thereof the following new subsection:
``(i)(1) Notwithstanding any other provision of this title, a cable
operator may not assess or collect any separate charges for any video
programming of a sporting, theatrical, or other entertainment event if
that event is performed at a facility constructed, renovated, or
maintained with tax revenues or by an organization that receives public
financial support.
``(2) The Commission and local franchising authorities are
authorized to make determinations concerning the applicability of the
prohibition contained in paragraph (1). In making such determinations--
``(A) a facility shall be considered to have been
constructed, maintained, or renovated with tax revenues if--
``(i) tax exempt financing was used to construct,
maintain, or renovate the facility,
``(ii) the facility was constructed on land donated
by a government, or leased by a government at below
market rates, or
``(iii) public infrastructure or public service for
the facility are provided by the government at below
market rates, with the exception of police, fire, and
rescue services;
``(B) an event is performed by a nonprofit or public
organization that receives tax subsidies if the event is
sponsored by, or includes the participation of a team that is a
part of, an organization--
``(i) that is exempt from Federal income taxes
under section 501 of the Internal Revenue Code of 1986,
or
``(ii) that is exempt from Federal income taxes
under section 115 of the Internal Revenue Code of 1986,
and to which donations are tax deductible under such
Code; and
``(C) notwithstanding subparagraph (A), a facility shall
not be considered to have been constructed with tax revenues if
the government has been reimbursed, through the proceeds of a
sale of the facility or otherwise, for the total amount of the
tax revenues that were used to construct the facility, as
determined under subparagraph (A), but in this section shall be
construed to exempt facilities from this subsection if the
facility is receiving current financial support.
``(3) The Commission shall prescribe, by regulation, procedures for
the administration of this subsection.''.
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