47 U.S.C. § 399b — Offering of certain services, facilities, or products by public broadcast station
submitted 92 years ago by Pub. L. 97-35 to r/title-47-TELECOMMUNICATIONS · 270 words · no verdicts yet
Public broadcast stations can sell services, facilities, or products for money, but they still cannot air paid advertisements. Money earned from federal grants can't pay for these side businesses. Stations must track this extra income separately from their other funds.
(a) "Advertisement" defined
An "advertisement" is any broadcast message paid for in exchange for something of value. It counts as an advertisement if it promotes a for-profit person's service, facility, or product; if it expresses views on a matter of public importance; or if it supports or opposes a political candidate.
(b) Offering of services, facilities, or products permitted; advertisements prohibited
A public broadcast station* may generally offer services, facilities, or products in exchange for payment. But no public broadcast station may let anyone use its airtime to broadcast an advertisement.
(c) Use of funds from offering services, etc.
If a station earns money this way, it cannot use money the Corporation* gave it under section 396(k) to pay for that side business. And this side business cannot get in the way of the station's public broadcasting service.
(d) Development of accounting system
Any station that earns money this way must build an accounting system, working with the Corporation. This system must track how much money the station earns this way, and what it costs, keeping it separate from all the station's other funding.
For purposes of this section, the term “advertisement” means any message or other programming material which is broadcast or otherwise transmitted in exchange for any remuneration, and which is intended—
to promote any service, facility, or product offered by any person who is engaged in such offering for profit;
to express the views of any person with respect to any matter of public importance or interest; or
to support or oppose any candidate for political office.
Except as provided in paragraph (2), each public broadcast station* shall be authorized to engage in the offering of services, facilities, or products in exchange for remuneration.
No public broadcast station may make its facilities available to any person for the broadcasting of any advertisement.
Any public broadcast station which engages in any offering specified in subsection (b)(1) may not use any funds distributed by the Corporation* under section 396(k) of this title to defray any costs associated with such offering. Any such offering by a public broadcast station shall not interfere with the provision of public telecommunications services* by such station.
Each public broadcast station which engages in the activity specified in subsection (b)(1) shall, in consultation with the Corporation, develop an accounting system which is designed to identify any amounts received as remuneration for, or costs related to, such activities under this section, and to account for such amounts separately from any other amounts received by such station from any source.
Source credit: (June 19, 1934, ch. 652, title III, § 399B, as added Pub. L. 97–35, title XII, § 1231, Aug. 13, 1981, 95 Stat. 731.)
- 1934Enacted · Pub. L. 97-35 · 95 Stat. 731
A history note hasn’t been published yet. The record shows enactment by Pub. L. 97-35 on 1934-06-19.
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