The Independent Broadcasters of Ireland (IBI) have welcomed a "major breakthrough" to reform the sector.
Fianna Fáil's published draft legislation to acknowledge the role played by independent radio.
It also takes steps to establish a new scheme to underpin this with support from the TV license fee.
John Purcell, chairman of the IBI, says the bill is "hugely significant" as it explicitly recognises the public service role of independent radio.
The group represents Ireland's 34 local, regional and national independent radio stations.