47 U.S.C. § 394 — Establishment of National Endowment

Page 232 TITLE 47—TELECOMMUNICATIONS § 392a § 392a. Repealed. Pub. L. 95–567, title II, § 201, Nov. 2, 1978, 92 Stat. 2409 Section, act June 19, 1934, ch. 652, title III, § 392A, as added June 5, 1976, Pub. L. 94–309, § 8, 90 Stat. 685, re- lated to demonstrations of telecommunications, grants and contracts. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Nov. 2, 1978, see section 403 of Pub. L. 95–567, set out as an Effective Date of 1978 Amendment note under section 390 of this title. § 393. Criteria for approval and expenditures by Secretary (a) Construction and planning grants The Secretary, in consultation with the Cor- poration, public telecommunications entities, and as appropriate with others, shall establish 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 inter- ested parties upon request. (b) Basis for determination 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 sub- section (a) and designed to achieve— (1) the provision of new telecommunications facilities to extend service to areas currently not receiving public telecommunications serv- ices; (2) the expansion of the service areas of ex- isting public telecommunications entities; (3) the development of public telecommuni- cations facilities owned by, operated by, and available to minorities and women; and (4) the improvement of the capabilities of ex- isting public broadcast stations to provide public telecommunications services, including services to underserved audiences such as deaf and hearing impaired individuals and blind and visually impaired individuals. (c) Noncommercial radio broadcast station facili- ties Of the sums appropriated pursuant to section 391 of this title for any fiscal year, a substantial amount shall be available for the expansion and development of noncommercial radio broadcast station facilities. (June 19, 1934, ch. 652, title III, § 393, as added Pub. L. 87–447, May 1, 1962, 76 Stat. 66; amended Pub. L. 90–129, title II, § 201(2), Nov. 7, 1967, 81 Stat. 367; Pub. L. 95–567, title I, § 104, Nov. 2, 1978, 92 Stat. 2408; Pub. L. 99–272, title V, § 5001(b), Apr. 7, 1986, 100 Stat. 117; Pub. L. 102–356, § 3, Aug. 26, 1992, 106 Stat. 949.) Editorial Notes AMENDMENTS 1992—Subsec. (b)(4). Pub. L. 102–356 inserted before pe- riod at end ‘‘, including services to underserved audi- ences such as deaf and hearing impaired individuals and blind and visually impaired individuals’’. 1986—Subsecs. (c), (d). Pub. L. 99–272 redesignated subsec. (d) as (c) and struck out former subsec. (c) re- lating to extension of services to new areas. 1978—Pub. L. 95–567 amended section generally, strik- ing out provisions dealing with keeping records and ac- cess to records by Secretary and Comptroller General and inserting provisions dealing with criteria for ap- proval and expenditures by Secretary. See sections 392(h) and 395(h) of this title. 1967—Pub. L. 90–129 substituted ‘‘subpart’’ for ‘‘part’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–567 effective Nov. 2, 1978, see section 403 of Pub. L. 95–567, set out as a note under section 390 of this title. § 393a. Long-range planning for facilities (a) The Secretary, in consultation with the Corporation, public telecommunications enti- ties, and as appropriate with other parties, shall develop a long-range plan to accomplish the ob- jectives set forth in section 390 of this title. Such plan shall include a detailed 5-year projec- tion of the broadcast and nonbroadcast public telecommunications facilities required to meet such objectives, and the expenditures necessary to provide such facilities. (b) Repealed. Pub. L. 104–66, title I, § 1021(a), Dec. 21, 1995, 109 Stat. 712. (June 19, 1934, ch. 652, title III, § 393A, formerly § 396, as added Pub. L. 87–447, May 1, 1962, 76 Stat. 67; renumbered § 394 and amended Pub. L. 90–129, title II, § 201(2), (4), Nov. 7, 1967, 81 Stat. 367; Pub. L. 95–567, title I, § 105, Nov. 2, 1978, 92 Stat. 2409; renumbered § 393A, Pub. L. 101–437, title II, § 203(a)(1), Oct. 17, 1990, 104 Stat. 998; Pub. L. 104–66, title I, § 1021(a), Dec. 21, 1995, 109 Stat. 712.) Editorial Notes AMENDMENTS 1995—Subsec. (b). Pub. L. 104–66 struck out subsec. (b) which read as follows: ‘‘The plan required in subsection (a) of this section shall be updated annually, and a summary of the activities of the Secretary in imple- menting the plan, shall be submitted concurrently to the President and the Congress not later than the 31st day of December of each year.’’ 1978—Pub. L. 95–567 substituted provisions dealing with long-range planning for facilities for provisions authorizing the Secretary to establish rules and regula- tions necessary for this subpart. See section 392(e) of this title. 1967—Pub. L. 90–129, § 201(2), substituted ‘‘subpart’’ for ‘‘part’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–567 effective Nov. 2, 1978, see section 403 of Pub. L. 95–567, set out as a note under section 390 of this title. SUBPART B—NATIONAL ENDOWMENT FOR CHILDREN’S EDUCATIONAL TELEVISION § 394. Establishment of National Endowment (a) Purpose It is the purpose of this section to enhance the education of children through the creation and production of television programming specifi- cally directed toward the development of funda- mental intellectual skills. Page 233 TITLE 47—TELECOMMUNICATIONS § 394 (b) Establishment; contracts and grants (1) There is established, under the direction of the Secretary, a National Endowment for Chil- dren’s Educational Television. In administering the National Endowment, the Secretary is au- thorized to— (A) contract with the Corporation for the production of educational television program- ming for children; and (B) make grants directly to persons pro- posing to create and produce educational tele- vision programming for children. The Secretary shall consult with the Advisory Council on Children’s Educational Television in the making of the grants or the awarding of con- tracts for the purpose of making the grants. (2) Contracts and grants under this section shall be made on the condition that the pro- gramming shall— (A) during the first two years after its pro- duction, be made available only to public tele- vision licensees and permittees and non- commercial television licensees and permit- tees; and (B) thereafter be made available to any com- mercial television licensee or permittee or cable television system operator, at a charge established by the Secretary that will assure the maximum practicable distribution of such programming, so long as such licensee, per- mittee, or operator does not interrupt the pro- gramming with commercial advertisements. The Secretary may, consistent with the purpose and provisions of this section, permit the pro- gramming to be distributed to persons using other media, establish conditions relating to such distribution, and apply those conditions to any contract or grant made under this section. The Secretary may waive the requirements of subparagraph (A) if the Secretary finds that nei- ther public television licensees and permittees nor noncommercial television licensees and per- mittees will have an opportunity to air such programming in the first two years after its pro- duction. (c) Criteria for contracts and grants; applica- tions for contracts and grants (1) The Secretary, with the advice of the Advi- sory Council on Children’s Educational Tele- vision, shall establish criteria for making con- tracts and grants under this section. Such cri- teria shall be consistent with the purpose and provisions of this section and shall be made available to interested parties upon request. Such criteria shall include— (A) criteria to maximize the amount of pro- gramming that is produced with the funds made available by the Endowment; (B) criteria to minimize the costs of— (i) selection of grantees, (ii) administering the contracts and grants, and (iii) the administrative costs of the pro- gramming production; and (C) criteria to otherwise maximize the pro- portion of funds made available by the Endow- ment that are expended for the cost of pro- gramming production. (2) Applications for grants under this section shall be submitted to the Secretary in such form and containing such information as the Sec- retary shall require by regulation. (d) Amount of grants Upon approving any application for a grant under subsection (b)(1)(B), the Secretary shall make a grant to the applicant in an amount de- termined by the Secretary, except that such amounts shall not exceed 75 percent of the amount determined by the Secretary to be the reasonable and necessary cost of the project for which the grant is made. (e) Advisory Council on Children’s Educational Television (1) The Secretary shall establish an Advisory Council on Children’s Educational Television. The Secretary shall appoint ten individuals as members of the Council and designate one of such members to serve as Chairman. (2) Members of the Council shall have terms of two years, and no member shall serve for more than three consecutive terms. The members shall have expertise in the fields of education, psychology, child development, or television programming, or related disciplines. Officers and employees of the United States shall not be appointed as members. (3) While away from their homes or regular places of business in the performance of duties for the Council, the members of the Council shall serve without compensation but shall be allowed travel expenses, including per diem in lieu of subsistence, in accordance with section 5703 of title 5. (4) The Council shall meet at the call of the Chairman and shall advise the Secretary con- cerning the making of contracts and grants under this section. (f) Recordkeeping relating to grants; audits (1) Each recipient of a grant under this section shall keep such records as may be reasonably necessary to enable the Secretary to carry out the Secretary’s functions under this section, in- cluding records which fully disclose the amount and the disposition by such recipient of the pro- ceeds of such grant, the total cost of the project, the amount and nature of that portion of the cost of the project supplied by other sources, and such other records as will facilitate an effec- tive audit. (2) The Secretary and the Comptroller General of the United States, or any of their duly au- thorized representatives, shall have access for the purposes of audit and examination to any books, documents, papers, and records of the re- cipient that are pertinent to a grant received under this section. (g) Issuance of rules and regulations The Secretary is authorized to make such rules and regulations as may be necessary to carry out this section, including those relating to the order of priority in approving applica- tions for projects under this section or to deter- mining the amounts of contracts and grants for such projects. (h) Authorization of appropriations; availability There are authorized to be appropriated $2,000,000 for fiscal year 1991, $4,000,000 for fiscal year 1992, $5,000,000 for fiscal year 1993, and Page 234 TITLE 47—TELECOMMUNICATIONS § 395 1 So in original. Probably should be ‘‘within’’. $6,000,000 for fiscal year 1994 to be used by the Secretary to carry out the provisions of this sec- tion. Sums appropriated under this subsection for any fiscal year shall remain available for contracts and grants for projects for which ap- plications approved under this section have been submitted wtihin 1 one year after the last day of such fiscal year. (i) Definitions For purposes of this section— (1) the term ‘‘educational television pro- gramming for children’’ means any television program which is directed to an audience of children who are 16 years of age or younger and which is designed for the intellectual de- velopment of those children, except that such term does not include any television program which is directed to a general audience but which might also be viewed by a significant number of children; and (2) the term ‘‘person’’ means an individual, partnership, association, joint stock company, trust, corporation, or State or local govern- mental entity. (June 19, 1934, ch. 652, title III, § 394, as added Pub. L. 101–437, title II, § 203(a)(3), Oct. 17, 1990, 104 Stat. 998; amended Pub. L. 102–538, title I, § 152, formerly § 132, Oct. 27, 1992, 106 Stat. 3540, renumbered § 152, Pub. L. 103–66, title VI, § 6001(a)(2), Aug. 10, 1993, 107 Stat. 379.) Editorial Notes PRIOR PROVISIONS A prior section 394, act June 19, 1934, § 394, was renum- bered section 393A by Pub. L. 101–437 and transferred to section 393a of this title. Another prior section 394, act June 19, 1934, § 394, was renumbered section 397 by Pub. L. 90–129 and trans- ferred to section 397 of this title. AMENDMENTS 1992—Subsec. (h). Pub. L. 102–538 substituted ‘‘1991,’’ for ‘‘1991 and’’ and inserted ‘‘, $5,000,000 for fiscal year 1993, and $6,000,000 for fiscal year 1994’’ after ‘‘1992’’. Statutory Notes and Related Subsidiaries TERMINATION OF ADVISORY COUNCILS Advisory councils established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a council established by the Presi- dent or an officer of the Federal Government, such council is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a council established by Congress, its duration is other- wise provided by law. See sections 1001(2) and 1013 of Title 5, Government Organization and Employees. CONGRESSIONAL FINDINGS Pub. L. 101–437, title II, § 202, Oct. 17, 1990, 104 Stat. 997, provided that: ‘‘The Congress finds that— ‘‘(1) children in the United States are lagging be- hind those in other countries in fundamental intellec- tual skills, including reading, writing, mathematics, science, and geography; ‘‘(2) these fundamental skills are essential for the future governmental and industrial leadership of the United States; ‘‘(3) the United States must act now to greatly im- prove the education of its children; ‘‘(4) television is watched by children about three hours each day on average and can be effective in teaching children; ‘‘(5) educational television programming for chil- dren is aired too infrequently either because public broadcast licensees and permittees lack funds or be- cause commercial broadcast licensees and permittees or cable television system operators do not have the economic incentive; and ‘‘(6) the Federal Government can assist in the cre- ation of children’s educational television by estab- lishing a National Endowment for Children’s Edu- cational Television to supplement the children’s edu- cational programming funded by other governmental entities.’’ SUBPART C—TELECOMMUNICATIONS DEMONSTRATIONS § 395. Assistance for demonstration projects (a) Authorization for grants and contracts It is the purpose of this subpart to promote the development of nonbroadcast telecommuni- cations facilities and services for the trans- mission, distribution, and delivery of health, education, and public or social service informa- tion. The Secretary is authorized, upon receipt of an application in such form and containing such information as he may by regulation re- quire, to make grants to, and enter into con- tracts with, public and private nonprofit agen- cies, organizations, and institutions for the pur- pose of carrying out telecommunications dem- onstrations. (b) Application approval 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 tech- niques of utilizing nonbroadcast telecommuni- cations equipment or facilities to satisfy the purpose of this subpart; (2) demonstrations and related activities as- sisted under this subpart will remain under the administration and control of the appli- cant; (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, dis- tribution, and delivery of health, education, or public or social service information. (c) Contract with applicant Upon approving any application under this subpart with respect to any project, the Sec- retary shall make a grant to or enter into a con- tract with the applicant in an amount deter- mined by the Secretary not to exceed the rea- sonable and necessary cost of such project. The Secretary shall pay such amount from the sums available therefor, in advance or by way of reim- bursement, and in such installments consistent with established practice, as he may determine. (d) Use of funds Funds made available pursuant to this subpart shall not be available for the construction, re- modeling, or repair of structures to house the