49–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 114–27 

FEDERAL COMMUNICATIONS COMMISSION 

CONSOLIDATED REPORTING ACT OF 2015 

FEBRUARY 24, 2015.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. UPTON, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 734] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 734) to amend the Communications Act of 1934 to 

consolidate the reporting obligations of the Federal Communications Commission in order to improve congressional oversight and 

reduce reporting burdens, having considered the same, report favorably thereon without amendment and recommend that the bill 

do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 3 

Committee Consideration ........................................................................................ 3 

Committee Votes ...................................................................................................... 4 

Committee Oversight Findings ............................................................................... 4 

Statement of General Performance Goals and Objectives .................................... 4 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 4 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 4 

Committee Cost Estimate ....................................................................................... 4 

Congressional Budget Office Estimate ................................................................... 4 

Federal Mandates Statement ................................................................................. 6 

Duplication of Federal Programs ............................................................................ 6 

Disclosure of Directed Rule Makings ..................................................................... 6 

Advisory Committee Statement .............................................................................. 6 

Applicability to Legislative Branch ........................................................................ 6 

Section-by-Section Analysis of the Legislation ...................................................... 6 

Changes in Existing Law Made by the Bill, as Reported ..................................... 10 


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PURPOSE AND SUMMARY

H.R. 734, the ‘‘Federal Communications Commission Consolidated Reporting Act of 2015,’’ consolidates eight separate reports of 

the Federal Communications Commission (FCC or Commission) 

into a single comprehensive report with a focus on intermodal competition, deploying communications capabilities to unserved communities, and eliminating regulatory barriers. By consolidating 

these reports, H.R. 734 would reduce the reporting burdens on the 

FCC while encouraging the agency to analyze competition in the 

marketplace as a whole rather than based on archaic regulatory 

silos. The bill also eliminates twelve outdated reports, including 

references to reports repealed more than a decade ago and a report 

on competition between telegraph companies and telephone companies. 

BACKGROUND AND NEED FOR LEGISLATION

The communications and technology sector is rapidly evolving. 

Analog broadcasting has become digital and high-definition. Phone 

companies have become broadband and video companies, and cable 

operators now operate Voice-over-Internet-Protocol networks. Satellite providers now offer television and broadband services, and 

wireless telephones are now used by all Americans for calling, 

texting, watching video, listening to music, and surfing the web. 

And emerging on the Internet are online video distributors, pointto-point voice and video conferencing services, personalized radio 

stations, and other new competitors. The traditional silos that once 

defined the communications marketplace are no more. 

Despite the converging marketplace, Federal law still requires 

the FCC to treat these providers differently. Nowhere is that clearer than in the reporting requirements imposed on the Commission. 

Under current law, the FCC must write separate congressional reports each year on video competition, satellite competition, the 

competitive effects of satellite privatization, broadband deployment, 

international broadband deployment, cable pricing, and wireless 

competition. These reports are in addition to a congressionally 

mandated triennial report on barriers to market entry for small 

businesses, as well as the FCC’s yearly reports regarding telephone 

penetration, telephone subscribership, and pricing among telecommunications services. Because the FCC is required to draft separate reports on discrete components within the communications 

marketplace, it is more difficult for the Commission to focus on the 

sector as a whole. 

The FCC has been unable to keep pace with all of its current reporting obligations. For example, the Communications Act requires 

the Commission to produce each year a Status of Competition in 

the Market for the Delivery of Video Programming Report. In 2009, 

the Commission released a Notice of Inquiry seeking information 

for calendar year 2007, see Annual Assessment of the Status of 

Competition in the Market for Delivery of Video Programming, MB 

Docket No. 07–269, Notice of Inquiry, 24 FCC Rcd 542 (2009). 

Later that year, the FCC released a supplemental Notice of Inquiry 

covering 2008 and 2009, see Annual Assessment of the Status of 

Competition in the Market for Delivery of Video Programming, MB 

Docket No. 07–269, Supplemental Notice of Inquiry, 24 FCC Rcd 


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4402 (2009), and sought additional information in 2011, see Annual 

Assessment of the Status of Competition in the Market for Delivery 

of Video Programming, MB Docket No. 07–269, Further Notice of 

Inquiry, 26 FCC Rcd 14091 (2011). In July 2012, the Commission 

released the video competition report covering 2007 to 2010, see 

Annual Assessment of the Status of Competition in the Market for 

Delivery of Video Programming, MB Docket No. 07–269, Fourteenth Report, 27 FCC Rcd 8610 (2010). Following that delayed release, the Commission announced that rather than completing the 

2010 quadriennial review, it would incorporate the report into the 

2014 review. Similarly, the Commission released its second annual 

Satellite Competition Report in 2008, but did not submit its third 

report (covering 2008, 2009, and 2010) until December 2011. See 

Third Report and Analysis of Competitive Market Conditions with 

Respect to Domestic and International Satellite Communications 

Services; Report and Analysis of Competitive Market Conditions 

with Respect to Domestic and International Satellite Communications Services, IB Docket Nos. 09–16, 10–99, Third Report, FCC 

11–183 (rel. Dec. 13, 2011). These delays frustrate effective congressional oversight of the Commission’s work and preclude timely 

analysis of the status of competition and deployment. 

To reduce the reporting burdens on the Commission, H.R. 734 

consolidates eight separate reports of the FCC into a single biennial report timed to the Congressional calendar. To reflect the convergence of the communications marketplace, the new report requires the FCC to conduct a holistic review of the communications 

marketplace. And to streamline the operations of the FCC, the bill 

eliminates twelve outdated reports from the Communications Act, 

including references to reports repealed more than a decade ago 

and a report on competition between telegraph companies and telephone companies. 

HEARINGS

The Committee on Energy and Commerce has not held hearings 

on the legislation during the 114th Congress. 

COMMITTEE CONSIDERATION

On February 2, Representative Walden circulated a discussion 

draft entitled the ‘‘Federal Communications Commission Consolidated Reporting Act of 2015.’’ 

On February 4, 2015, the Subcommittee on Communications and 

Technology met in open markup session to consider the discussion 

draft. Representative Scalise and Ranking Member Eshoo offered a 

bipartisan amendment to make two changes to the discussion draft. 

First, the amendment added an additional provision to the Communications Marketplace report in order to address language enacted 

as part of the STELA Reauthorization Act of 2015. The language 

requires the FCC to include the average amount of compensation 

paid by cable systems under section 325 of the Communications 

Act. Second, the amendment clarified that the bill does not alter 

the FCC’s authority under Section 706. 

The Subcommittee favorably forwarded the discussion draft, as 

amended, to the full Committee by a voice vote. 


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On February 4, 2015, Representative Scalise, together with 

Chairman Walden and Ranking Member Eshoo, introduced H.R. 

734, which was substantially similar to the bill forwarded by the 

Subcommittee. 

On February 11 and 12, 2015, the Committee on Energy and 

Commerce met in open markup session to consider H.R. 734 and 

favorably reported the bill, without amendment, to the House by a 

voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no 

record votes taken in connection with ordering H.R. 734 reported. 

A motion by Chairman Upton to order H.R. 734 favorably reported 

to the House, as amended, was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee held a hearing and made findings that are reflected in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goals and objectives of H.R. 734 are to reduce the reporting 

burdens on the FCC, while encouraging the agency to analyze competition in the marketplace as a whole rather than based on archaic regulatory silos. It does so by consolidating eight separate reports of the FCC into a single, comprehensive report on the communications marketplace and eliminating references to twelve reports from the Communications Act of 1934, as amended. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 734 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the 

Rules of the House of Representatives, the Committee finds that 

H.R. 734 contains no earmarks, limited tax benefits, or limited tariff benefits. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 


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the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 23, 2015. 

Hon. FRED UPTON, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 734, the Federal Communications Commission Consolidated Reporting Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 734—Federal Communications Commission Consolidated Reporting Act of 2015 

H.R. 734 would require the Federal Communications Commission 

(FCC) to prepare a biennial report for the Congress that assesses 

certain characteristics of the communications industry. The report 

would analyze the state of competition in the markets for voice, 

video, and data services, as well as the availability of high-speed 

and high-quality telecommunications services. Further, the bill 

would require the FCC to determine whether laws and regulations 

pose a barrier to entry into communications markets and to include 

that information in the biennial report. H.R. 734 also would relieve 

the FCC of requirements to prepare certain other reports on topics 

ranging from access to satellite services to prices for cable services. 

In all, the bill would eliminate more than 20 reports and notices, 

including some that remain in current law even though deadlines 

for their completion have passed. 

Based on information from the FCC, CBO estimates that implementing the provisions of H.R. 734 would not have a significant effect on the agency’s costs. Any additional expenses the FCC would 

incur to prepare the new assessment of the communications industry would be offset by a reduction in costs that would otherwise be 

incurred for reports that would be eliminated under the bill. Moreover, under current law, the FCC is authorized to collect fees sufficient to offset the cost of its regulatory activities each year. Therefore, CBO estimates that the net cost to implement the provisions 

of H.R. 734 would be negligible, assuming annual appropriation actions consistent with the agency’s authorities. Enacting H.R. 734 

would not affect direct spending or revenues; therefore, pay-as-yougo procedures do not apply. 

H.R. 734 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Susan Willie. The estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 


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FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 734 establishes or reauthorizes a program 

of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

Enacting H.R. 734 does not direct any specific rule makings to 

be completed within the meaning of 5 U.S.C. 551. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 defines the short title of the legislation as the ‘‘Federal 

Communications Commission Consolidated Reporting Act of 2015.’’ 

Section 2. Communications Marketplace Report 

Section 2 adds section 13 to the Communications Act. 

New section 13(a)—Communications Marketplace Report 

This subsection requires the Commission to publish and submit 

to Congress a Communications Marketplace Report timed to the 

two-year congressional cycle. By requiring the submission of that 

report in the last quarter of every even-numbered year, each new 

Congress will have a fresh review of the communications marketplace when it assumes office. Requiring the Communications Marketplace Report every other year rather than every year also 

should reduce the administrative burden on the Commission and 

the reporting burden on the public. 

New section 13(b)—Contents 

This subsection specifies the contents of each Communications 

Marketplace Report. 

Paragraph (1) requires the FCC to assess the state of competition 

in the communications marketplace across all providers of communications, including, for example, telecommunications carriers, 


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broadcasters, cable operators, broadband providers, satellite providers, and online voice and video providers. This section of the report is intended to consolidate the ORBIT Act Report, see Communications Satellite Act of 1962 § 646, the Satellite Competition Report, see Pub. L. No. 109–34 § 4, the Status of Competition in the 

Market for the Delivery of Video Programming Report, see Communications Act of 1934 § 628(g), the Report on Cable Industry Prices, 

see Communications Act of 1934 § 623(k), and the State of Competitive Market Conditions with Respect to Commercial Mobile 

Radio Services Report, see Communications Act of 1934 

§ 332(c)(1)(C). The consolidation of the reports is not intended to 

prevent the Commission from examining the same issues it previously reviewed separately, including the examination of cable 

pricing, but rather to encourage a more holistic approach. Nor is 

the Commission required to assess the state of competition in the 

exact same way it has done so in the past. Instead, the Commission 

should use the best economic and technical analysis feasible to examine competition within the marketplace as a whole. 

Paragraph (2) requires the FCC to assess the state of deployment 

of communications capabilities in the United States, including advanced telecommunications capability, regardless of the technology 

used. This section of the report is intended to consolidate the 

Broadband Deployment Report, see Telecommunications Act of 

1996 § 706(b), and the International Broadband Data Report, see 

Broadband Data Improvement Act § 103(b). It is not meant to affect 

whatever authority, if any, section 706(b) of the Telecommunications Act of 1996 grants the Commission. As with the competition section of the report, this section does not delineate the precise 

metrics the FCC must use in carrying out its assessment; instead, 

the agency should use the best available information to assess the 

state of deployment, taking into account the variety of technologies 

used to deploy broadband infrastructure throughout the United 

States. 

Paragraph (3) requires the FCC to assess whether laws, regulations, or regulatory practices (regardless of the level of government 

that established or enforces those laws, regulations, or regulatory 

practices) pose a barrier to competitive entry into the communications marketplace or to the competitive expansion of existing providers of communications services. This section of the report is intended to incorporate the Triennial Report Identifying and Eliminating Market Entry Barriers for Entrepreneurs and Other Small 

Businesses, see Communications Act of 1934 § 257(c). As with the 

competition and deployment sections of the report, this section does 

not bind the Commission to highlight with particularity regulations 

it has passed to overcome barriers to competitive entry and competitive expansion, although it is free to examine such regulations 

as a part of its functional assessment of regulatory barriers. 

Paragraphs (4)–(5) require the FCC to identify the topics it plans 

to address over the next two years as a result of these assessments 

and to report on its progress on those topics previously identified. 

This section of the report is not intended to consolidate any existing report. This section is, however, intended to facilitate congressional oversight by providing a guide to Congress regarding the 

topics the Commission is likely to focus on, along with references 

to the first three sections of the report, as appropriate, to demVerDate Sep 11 2014 00:22 Feb 27, 2015 Jkt 049006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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onstrate how the FCC’s assessments have shaped its agenda. By 

identifying a topic in this section, the Commission is not binding 

itself to act on that topic; conversely, the Commission remains free 

to act on topics not so identified. Nevertheless, this section requires 

the Commission to report back on what actions, if any, it took to 

address each topic identified in the previous report, and the Commission is expected to make a good-faith attempt to identify topics 

and address topics previously identified. 

New section 13(c)—Extension 

This subsection allows a chairman designated by the President 

in the last quarter of an even-number year, when the report is due, 

to submit the agenda portion of the report to Congress as an addendum during the first quarter of the following year. 

New section 13(d)—Special Considerations 

This subsection identifies five special considerations that the 

FCC must take into account when drafting the Communications 

Marketplace Report. 

First, when assessing competition, the Commission must take 

into account all forms of competition, including intermodal, facilities-based, and Internet-based competition. This is a response to 

the traditional competition reports conducted by the Commission 

that examine competition within a single industry segment despite 

competition from non-traditional industry segments, such as competition to terrestrial radio broadcasters from satellite radio, Internet-based radio, and online music marketplaces. The inclusion of 

facilities-based competition reflects the importance of deployment 

of physical infrastructure for competitive purposes, as reflected in 

the second section of the report. It is not meant, however, to preclude the assessment of competition from resellers, such as mobile 

virtual network operators. The inclusion of Internet-based competition is intended to ensure that the FCC takes into account the 

growing challenge to established business models presented by online competition in all its forms. 

Second, when assessing deployment, the Commission must compile a list of geographical areas that are not served by any provider 

of advanced telecommunications capability. This is intended to emphasize, as the Broadband Deployment Report did, see Telecommunications Act of 1996 § 706(c), the importance of identifying 

the areas of the country that are unserved by any provider of advanced telecommunications capability. 

Third, the Commission may use readily available data to draw 

appropriate comparisons between the United States communications marketplace and the international communications marketplace and to correlate its assessments with demographic information. In preparing its International Broadband Data Reports in the 

past, the Commission has noted that ‘‘many nations do not collect 

the data required to achieve fully the international comparisons’’ 

and that even when data is available, it may not be useful for 

drawing comparisons with the United States. International Comparison Requirements Pursuant to the Broadband Data Improvement Act International Broadband Data Report, IB Docket No. 10– 

171, Second Report, 26 FCC Rcd 7378, 7380, para. 4 (2011). This 

provision is intended to recognize these difficulties and empower 


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the FCC to consider readily available data to draw appropriate and 

accurate comparisons and correlations in conducting the assessments for the Communications Marketplace Report. 

Fourth, when assessing competition and regulatory barriers, the 

FCC must specially consider market entry barriers for small businesses. This special consideration is intended to ensure that the 

Commission pays special attention to the challenges and opportunities facing small businesses in the communications marketplace. 

Fifth, for the purposes of continuity of the language enacted as 

part of the STELA Reauthorization Act of 2014, the FCC shall include the aggregate average total amount paid by cable systems 

under section 325 of the Communications Act. 

Section 3. Consolidation of redundant reports; conforming amendments 

This section eliminates the eight reports consolidated into the 

Communications Marketplace Report, namely the ORBIT Act Report, see Communications Satellite Act of 1962 § 646, the Satellite 

Competition Report, see Pub. L. No. 109–34 § 4, the Status of Competition in the Market for the Delivery of Video Programming Report, see Communications Act of 1934 § 628(g), the Report on Cable 

Industry Prices, see Communications Act of 1934 § 623(k), the 

State of Competitive Market Conditions with Respect to Commercial Mobile Radio Services Report, see Communications Act of 1934 

§ 332(c)(1)(C), the Broadband Deployment Report, see Telecommunications Act of 1996 § 706(b), the International Broadband 

Data Report, see Broadband Data Improvement Act § 103(b), and 

the Triennial Report Identifying and Eliminating Market Entry 

Barriers for Entrepreneurs and Other Small Businesses, see Communications Act of 1934 § 257(c). As described above, consolidating 

these reports is not intended to preclude the Commission from continuing to collect and report similar data if doing so is an accurate 

and efficient method of assessing competition, deployment, or regulatory barriers. 

This section eliminates a reference to the Report on Competition 

between Wire Telephone and Wire Telegraph Providers, see Communications Act of 1934 § 215(b), given the evolution of the communications marketplace past telegraph services. 

This section strikes from the Communications Act several reports 

that have either expired of their own accord or been repealed by 

the Federal Reports Elimination and Sunset Act of 1995, Pub. L. 

No. 104–66. An example of the former is a report on the rescheduling of Auction 31 (Upper 700 MHz), which was completed as part 

of Auction 73 in 2008. See Communications Act of 1934 

§ 309(j)(15)(C)(iv). An example of the latter is the annual report of 

the Commission, see Communications Act of 1934 § 4(k), which was 

identified in the 1995 Clerk’s List of Reports to be Made to Congress, see House Doc. No. 103–7, at 167, and effectively terminated 

in 2000, see Pub. L. No. 104–66, § 3003(a)(1). This section is not intended to remove the discretion of any agency to continue to report 

to Congress on those topics should it find doing so useful. 

Section 4. Effect on authority 

Section 4 specifies that this legislation does not alter the authority of the Commission in any way. Specifically, this legislation 


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should not be construed to expand or contract the Commission’s 

ability to collect data, nor should this legislation be construed to 

alter any authority or obligation the Commission has under section 

706 of the Telecommunications Act of 1996, if any. 

Section 5. Other reports 

Section 5 clarifies that nothing in the Act prohibits or prevents 

the FCC from producing additional reports within its existing authority. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

COMMUNICATIONS ACT OF 1934 

TITLE I—GENERAL PROVISIONS 

* * * * * * * 

SEC. 4. PROVISIONS RELATING TO THE COMMISSION. 

(a) The Federal Communications Commission (in this Act referred to as the ‘‘Commission’’) shall be composed of five Commissioners appointed by the President, by and with the advice and 

consent of the Senate, one of whom the President shall designate 

as chairman. 

(b)(1) Each member of the Commission shall be a citizen of the 

United States. 

(2)(A) No member of the Commission or person employed by the 

Commission shall— 

(i) be financially interested in any company or other entity 

engaged in the manufacture or sale of telecommunications 

equipment which is subject to regulation by the Commission; 

(ii) be financially interested in any company or other entity 

engaged in the business of communication by wire or radio or 

in the use of the electromagnetic spectrum; 

(iii) be financially interested in any company or other entity 

which controls any company or other entity specified in clause 

(i) or clause (ii), or which derives a significant portion of its 

total income from ownership of stocks, bonds, or other securities of any such company or other entity; or 

(iv) be employed by, hold any official relation to, or own any 

stocks, bonds, or other securities of, any person significantly 

regulated by the Commission under this Act; 

except that the prohibitions established in this subparagraph shall 

apply only to financial interests in any company or other entity 

which has a significant interest in communications, manufacturing, 

or sales activities which are subject to regulation by the Commission. 

(B)(i) The Commission shall have authority to waive, from time 

to time, the application of the prohibitions established in subparagraph (A) to persons employed by the Commission if the CommisVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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sion determines that the financial interests of a person which are 

involved in a particular case are minimal, except that such waiver 

authority shall be subject to the provisions of section 208 of title 

18, United States Code. The waiver authority established in this 

subparagraph shall not apply with respect to members of the Commission. 

(ii) In any case in which the Commission exercises the waiver authority established in this subparagraph, the Commission shall 

publish notice of such action in the Federal Register øand shall furnish notice of such action to the appropriate committees of each 

House of the Congress. Each such notice shall include information 

regarding the identity of the person receiving the waiver, the position held by such person, and the nature of the financial interests 

which are the subject of the waiver¿. (3) The Commission, in determining whether a company or other 

entity has a significant interest in communications, manufacturing, 

or sales activities which are subject to regulation by the Commission, shall consider (without excluding other relevant factors)— 

(A) the revenues, investments, profits, and managerial efforts directed to the related communications, manufacturing, or 

sales activities of the company or other entity involved, as compared to the other aspects of the business of such company or 

other entity; 

(B) the extent to which the Commission regulates and oversees the activities of such company or other entity; 

(C) the degree to which the economic interests of such company or other entity may be affected by any action of the Commission; and 

(D) the perceptions held by the public regarding the business 

activities of such company or other entity. 

(4) Members of the Commission shall not engage in any other 

business, vocation, profession, or employment while serving as such 

members. 

(5) The maximum number of commissioners who may be members of the same political party shall be a number equal to the 

least number of commissioners which constitutes a majority of the 

full membership of the Commission. 

(c) Commissioners shall be appointed for terms of five years and 

until their successors are appointed and have been confirmed and 

taken the oath of office, except that they shall not continue to serve 

beyond the expiration of the next session of Congress subsequent 

to the expiration of said fixed term of office; except that any person 

chosen to fill a vacancy shall be appointed only for the unexpired 

term of the Commissioner whom he succeeds. No vacancy in the 

Commission shall impair the right of the remaining commissioners 

to exercise all the powers of the Commission. 

(d) Each Commissioner shall receive an annual salary at the annual rate payable from time to time for level IV of the Executive 

Schedule, payable in monthly installments. The Chairman of the 

Commission, during the period of his service as Chairman, shall receive an annual salary at the annual rate payable from time to 

time for level III of the Executive Schedule. 

(e) The principal office of the Commission shall be in the District 

of Columbia, where its general sessions shall be held; but whenever 

the convenience of the public or of the parties may be promoted or 


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delay or expense prevented thereby, the Commission may hold special sessions in any part of the United States. 

(f)(1) The Commission shall have authority, subject to the provisions of the civil-service laws and the Classification Act of 1949, as 

amended, to appoint such officers, engineers, accountants, attorneys, inspectors, examiners, and other employees as are necessary 

in the exercise of its functions. 

(2) Without regard to the civil-service laws, but subject to the 

Classification Act of 1949, each commissioner may appoint three 

professional assistants and a secretary, each of whom shall perform 

such duties as such commissioner shall direct. In addition, the 

chairman of the Commission may appoint, without regard to the 

civil-service laws, but subject to the Classification Act of 1949, an 

administrative assistant who shall perform such duties as the 

chairman shall direct. 

(3) The Commission shall fix a reasonable rate of extra compensation for overtime services of engineers in charge and radio engineers of the Field Engineering and Monitoring Bureau of the 

Federal Communications Commission, who may be required to remain on duty between the hours of 5 o’clock postmeridian and 8 

o’clock antemeridian or on Sundays or holidays to perform services 

in connection with the inspection of ship radio equipment and apparatus for the purposes of part II of title III of this Act or the 

Great Lakes Agreement, on the basis of one-half day’s additional 

pay for each two hours or fraction thereof of at least one hour that 

the overtime extends beyond 5 o’clock postmeridian (but not to exceed two and one-half days’ pay for the full period from 5 o’clock 

postmeridian to 8 o’clock antemeridian) and two additional days’ 

pay for Sunday or holiday duty. The said extra compensation for 

overtime services shall be paid by the master, owner, or agent of 

such vessel to the local United States collector of customs or his 

representative, who shall deposit such collection into the Treasury 

of the United States to an appropriately designated receipt account: 

Provided, That the amounts of such collections received by the said 

collector of customs or his representatives shall be covered into the 

Treasury as miscellaneous receipts; and the payments of such extra 

compensation to the several employees entitled thereto shall be 

made from the annual appropriations for salaries and expenses of 

the Commission: Provided further, That to the extent that the annual appropriations which are hereby authorized to be made from 

the general fund of the Treasury are insufficient, there are hereby 

authorized to be appropriated from the general fund of the Treasury such additional amounts as may be necessary to the extent 

that the amounts of such receipts are in excess of the amounts appropriated: Provided further, That such extra compensation shall 

be paid if such field employees have been ordered to report for duty 

and have so reported whether the actual inspection of the radio 

equipment or apparatus takes place or not: And provided further, 

That in those ports where customary working hours are other than 

those hereinabove mentioned, the engineers in charge are vested 

with authority to regulate the hours of such employees so as to 

agree with prevailing working hours in said ports where inspections are to be made, but nothing contained in this proviso shall 

be construed in any manner to alter the length of a working day 

for the engineers in charge and radio engineers or the overtime pay 


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herein fixed: and Provided further, That, in the alternative, an entity designated by the Commission may make the inspections referred to in this paragraph. 

(4)(A) The Commission, for purposes of preparing or administering any examination for an amateur station operator license, 

may accept and employ the voluntary and uncompensated services 

of any individual who holds an amateur station operator license of 

a higher class than the class of license for which the examination 

is being prepared or administered. In the case of examinations for 

the highest class of amateur station operator license, the Commission may accept and employ such services of any individual who 

holds such class of license. 

(B)(i) The Commission, for purposes of monitoring violations of 

any provision of this Act (and of any regulation prescribed by the 

Commission under this Act) relating to the amateur radio service, 

may— 

(I) recruit and train any individual licensed by the Commission to operate an amateur station; and 

(II) accept and employ the voluntary and uncompensated 

services of such individual. 

(ii) The Commission, for purposes of recruiting and training individuals under clause (i) and for purposes of screening, annotating, 

and summarizing violation reports referred under clause (i), may 

accept and employ the voluntary and uncompensated services of 

any amateur station operator organization. 

(iii) The functions of individuals recruited and trained under this 

subparagraph shall be limited to— 

(I) the detection of improper amateur radio transmissions; 

(II) the conveyance to Commission personnel of information 

which is essential to the enforcement of this Act (or regulations 

prescribed by the Commission under this Act) relating to the 

amateur radio service; and 

(III) issuing advisory notices, under the general direction of 

the Commission, to persons who apparently have violated any 

provision of this Act (or regulations prescribed by the Commission under this Act) relating to the amateur radio service. 

Nothing in this clause shall be construed to grant individuals recruited and trained under this subparagraph any authority to issue 

sanctions to violators or to take any enforcement action other than 

any action which the Commission may prescribe by rule. 

(C)(i) The Commission, for purposes of monitoring violations of 

any provision of this Act (and of any regulation prescribed by the 

Commission under this Act) relating to the citizens band radio 

service, may— 

(I) recruit and train any citizens band radio operator; and 

(II) accept and employ the voluntary and uncompensated 

services of such operator. 

(ii) The Commission, for purposes of recruiting and training individuals under clause (i) and for purposes of screening, annotating, 

and summarizing violation reports referred under clause (i), may 

accept and employ the voluntary and uncompensated services of 

any citizens band radio operator organization. The Commission, in 

accepting and employing services of individuals under this subparagraph, shall seek to achieve a broad representation of individuals and organizations interested in citizens band radio operation. 


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(iii) The functions of individuals recruited and trained under this 

subparagraph shall be limited to— 

(I) the detection of improper citizens band radio transmissions; 

(II) the conveyance to Commission personnel of information 

which is essential to the enforcement of this Act (or regulations 

prescribed by the Commission under this Act) relating to the 

citizens band radio service; and 

(III) issuing advisory notices, under the general direction of 

the Commission, to persons who apparently have violated any 

provision of this Act (or regulations prescribed by the Commission under this Act) relating to the citizens band radio service. 

Nothing in this clause shall be construed to grant individuals recruited and trained under this subparagraph any authority to issue 

sanctions to violators or to take any enforcement action other than 

any action which the Commission may prescribe by rule. 

(D) The Commission shall have the authority to endorse certification of individuals to perform transmitter installation, operation, 

maintenance, and repair duties in the private land mobile services 

and fixed services (as defined by the Commission by rule) if such 

certification programs are conducted by organizations or committees which are representative of the users in those services and 

which consist of individuals who are not officers or employees of 

the Federal Government. 

(E) The authority of the Commission established in this paragraph shall not be subject to or affected by the provisions of part 

III of title 5, United States Code, or section 3679(b) of the Revised 

Statutes (31 U.S.C. 665(b)). 

(F) Any person who provides services under this paragraph shall 

not be considered, by reason of having provided such services, a 

Federal employee. 

(G) The Commission, in accepting and employing services of individuals under subparagraphs (A) and (B), shall seek to achieve a 

broad representation of individuals and organizations interested in 

amateur station operation. 

(H) The Commission may establish rules of conduct and other 

regulations governing the service of individuals under this paragraph. 

(I) With respect to the acceptance of voluntary uncompensated 

services for the preparation, processing, or administration of examinations for amateur station operator licenses, pursuant to subparagraph (A) of this paragraph, individuals, or organizations which 

provide or coordinate such authorized volunteer services may recover from examinees reimbursement for out-of-pocket costs. 

(5)(A) The Commission, for purposes of preparing and administering any examination for a commercial radio operator license or 

endorsement, may accept and employ the services of persons that 

the Commission determines to be qualified. Any person so employed may not receive compensation for such services, but may recover from examinees such fees as the Commission permits, considering such factors as public service and cost estimates submitted 

by such person. 

(B) The Commission may prescribe regulations to select, oversee, 

sanction, and dismiss any person authorized under this paragraph 

to be employed by the Commission. 


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(C) Any person who provides services under this paragraph or 

who provides goods in connection with such services shall not, by 

reason of having provided such service or goods, be considered a 

Federal or special government employee. 

(g)(1) The Commission may make such expenditures (including 

expenditures for rent and personal services at the seat of government and elsewhere, for office supplies, lawbooks, periodicals, and 

books of reference, for printing and binding, for land for use as 

sites for radio monitoring stations and related facilities, including 

living quarters where necessary in remote areas, for the construction of such stations and facilities, and for the improvement, furnishing, equipping, and repairing of such stations and facilities and 

of laboratories and other related facilities (including construction of 

minor subsidiary buildings and structures not exceeding $25,000 in 

any one instance) used in connection with technical research activities), as may be necessary for the execution of the functions vested 

in the Commission and as may be appropriated for by the Congress 

in accordance with the authorizations of appropriations established 

in section 6. All expenditures of the Commission, including all necessary expenses for transportation incurred by the commissioners 

or by their employees, under their orders, in making any investigation or upon any official business in any other places than in the 

city of Washington, shall be allowed and paid on the presentation 

of itemized vouchers therefor approved by the chairman of the 

Commission or by such other members or officer thereof as may be 

designated by the Commission for that purpose. 

ø(2)(A) If— 

ø(i) the necessary expenses specified in the last sentence of 

paragraph (1) have been incurred for the purpose of enabling 

commissioners or employees of the Commission to attend and 

participate in any convention, conference, or meeting; 

ø(ii) such attendance and participation are in furtherance of 

the functions of the Commission; and 

ø(iii) such attendance and participation are requested by the 

person sponsoring such convention, conference, or meeting; 

then the Commission shall have authority to accept direct reimbursement from such sponsor for such necessary expenses. 

ø(B) The total amount of unreimbursed expenditures made by 

the Commission for travel for any fiscal year, together with the 

total amount of reimbursements which the Commission accepts 

under subparagraph (A) for such fiscal year, shall not exceed the 

level of travel expenses appropriated to the Commission for such 

fiscal year. 

ø(C) The Commission shall submit to the appropriate committees 

of the Congress, and publish in the Federal Register, quarterly reports specifying reimbursements which the Commission has accepted under this paragraph. 

ø(D) The provisions of this paragraph shall cease to have any 

force or effect at the end of fiscal year 1994. 

ø(E) Funds which are received by the Commission as reimbursements under the provisions of this paragraph after the close of a 

fiscal year shall remain available for obligation.¿ 

(3)(A) Notwithstanding any other provision of law, in furtherance 

of its functions the Commission is authorized to accept, hold, administer, and use unconditional gifts, donations, and bequests of 


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real, personal, and other property (including voluntary and uncompensated services, as authorized by section 3109 of title 5, United 

States Code). 

(B) The Commission, for purposes of providing radio club and 

military-recreational call signs, may utilize the voluntary, uncompensated, and unreimbursed services of amateur radio organizations authorized by the Commission that have tax-exempt status 

under section 501(c)(3) of the Internal Revenue Code of 1986. 

(C) For the purpose of Federal law on income taxes, estate taxes, 

and gift taxes, property or services accepted under the authority of 

subparagraph (A) shall be deemed to be a gift, bequest, or devise 

to the United States. 

(D) The Commission shall promulgate regulations to carry out 

the provisions of this paragraph. Such regulations shall include 

provisions to preclude the acceptance of any gift, bequest, or donation that would create a conflict of interest or the appearance of a 

conflict of interest. 

(h) Three members of the Commission shall constitute a quorum 

thereof. The Commission shall have an official seal which shall be 

judicially noticed. 

(i) The Commission may perform any and all acts, make such 

rules and regulations, and issue such orders, not inconsistent with 

this Act, as may be necessary in the execution of its functions. 

(j) The Commission may conduct its proceedings in such manner 

as will best conduce to the proper dispatch of business and to the 

ends of justice. No commissioner shall participate in any hearing 

or proceeding in which he has a pecuniary interest. Any party may 

appear before the Commission and be heard in person or by attorney. Every vote and official act the Commission shall be entered of 

record, and its proceedings shall be public upon the request of any 

party interested. The Commission is authorized to withhold publication of records or proceedings containing secret information affecting the national defense. 

ø(k) The Commission shall make an annual report to Congress, 

copies of which shall be distributed as are other reports transmitted to Congress. Such reports shall contain— 

ø(1) such information and data collected by the Commission 

as may be considered of value in the determination of questions connected with the regulation of interstate and foreign 

wire and radio communication and radio transmission of energy; 

ø(2) such information and data concerning the functioning of 

the Commission as will be of value to Congress in appraising 

the amount and character of the work and accomplishments of 

the Commission and the adequacy of its staff and equipment; 

ø(3) an itemized statement of all funds expended during the 

preceding year by the Commission, of the sources of such 

funds, and of the authority in this Act or elsewhere under 

which such expenditures were made; and 

ø(4) specific recommendations to Congress as to additional 

legislation which the Commission deems necessary or desirable, including all legislative proposals submitted for approval 

to the Director of the Office of Management and Budget.¿ 

ø(l)¿ (k) All reports of investigations made by the Commission 

shall be entered of record, and a copy thereof shall be furnished to 


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the party who may have complained, and to any common carrier 

or licensee that may have been complained of. 

ø(m)¿ (l) The Commission shall provide for the publication of its 

reports and decisions in such form and manner as may be best 

adapted for public information and use, and such authorized publications shall be competent evidence of the reports and decisions of 

the Commission therein contained in all courts of the United States 

and of the several States without any further proof or authentication thereof. 

ø(n)¿ (m) Rates of compensation of persons appointed under this 

section shall be subject to the reduction applicable to officers and 

employees of the Federal Government generally. 

ø(o)¿ (n) For the purpose of obtaining maximum effectiveness 

from the use of radio and wire communications in connection with 

safety of life and property, the Commission shall investigate and 

study all phases of the problem and the best methods of obtaining 

the cooperation and coordination of these systems. 

* * * * * * * 

SEC. 9. REGULATORY FEES. 

(a) GENERAL AUTHORITY.— (1) RECOVERY OF COSTS.—The Commission, in accordance 

with this section, shall assess and collect regulatory fees to recover the costs of the following regulatory activities of the 

Commission: enforcement activities, policy and rulemaking activities, user information services, and international activities. 

(2) FEES CONTINGENT ON APPROPRIATIONS.—The fees described in paragraph (1) of this subsection shall be collected 

only if, and only in the total amounts, required in Appropriations Acts. 

(b) ESTABLISHMENT AND ADJUSTMENT OF REGULATORY FEES.— (1) IN GENERAL.—The fees assessed under subsection (a) 

shall— 

(A) be derived by determining the full-time equivalent 

number of employees performing the activities described in 

subsection (a) within the Private Radio Bureau, Mass 

Media Bureau, Common Carrier Bureau, and other offices 

of the Commission, adjusted to take into account factors 

that are reasonably related to the benefits provided to the 

payor of the fee by the Commission’s activities, including 

such factors as service area coverage, shared use versus 

exclusive use, and other factors that the Commission determines are necessary in the public interest; 

(B) be established at amounts that will result in collection, during each fiscal year, of an amount that can reasonably be expected to equal the amount appropriated for 

such fiscal year for the performance of the activities described in subsection (a); and 

(C) until adjusted or amended by the Commission pursuant to paragraph (2) or (3), be the fees established by the 

Schedule of Regulatory Fees in subsection (g). 

(2) MANDATORY ADJUSTMENT OF SCHEDULE.—For any fiscal 

year after fiscal year 1994, the Commission shall, by rule, revise the Schedule of Regulatory Fees by proportionate increases or decreases to reflect, in accordance with paragraph 


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(1)(B), changes in the amount appropriated for the performance of the activities described in subsection (a) for such fiscal 

year. Such proportionate increases or decreases shall— 

(A) be adjusted to reflect, within the overall amounts described in appropriations Acts under the authority of paragraph (1)(A), unexpected increases or decreases in the 

number of licensees or units subject to payment of such 

fees; and 

(B) be established at amounts that will result in collection of an aggregate amount of fees pursuant to this section that can reasonably be expected to equal the aggregate amount of fees that are required to be collected by appropriations Acts pursuant to paragraph (1)(B). 

Increases or decreases in fees made by adjustments pursuant 

to this paragraph shall not be subject to judicial review. In 

making adjustments pursuant to this paragraph the Commission may round such fees to the nearest $5 in the case of fees 

under $1,000, or to the nearest $25 in the case of fees of $1,000 

or more. 

(3) PERMITTED AMENDMENTS.—In addition to the adjustments required by paragraph (2), the Commission shall, by 

regulation, amend the Schedule of Regulatory Fees if the Commission determines that the Schedule requires amendment to 

comply with the requirements of paragraph (1)(A). In making 

such amendments, the Commission shall add, delete, or reclassify services in the Schedule to reflect additions, deletions, or 

changes in the nature of its services as a consequence of Commission rulemaking proceedings or changes in law. Increases 

or decreases in fees made by amendments pursuant to this 

paragraph shall not be subject to judicial review. 

(4) NOTICE TO CONGRESS.—The Commission shall— 

(A) transmit to the Congress notification of any adjustment made pursuant to paragraph (2) immediately upon 

the adoption of such adjustment; and 

(B) transmit to the Congress notification of any amendment made pursuant to paragraph (3) not later than 90 

days before the effective date of such amendment. 

(c) ENFORCEMENT.— (1) PENALTIES FOR LATE PAYMENT.—The Commission shall 

prescribe by regulation an additional charge which shall be assessed as a penalty for late payment of fees required by subsection (a) of this section. Such penalty shall be 25 percent of 

the amount of the fee which was not paid in a timely manner. 

(2) DISMISSAL OF APPLICATIONS FOR FILINGS.—The Commission may dismiss any application or other filing for failure to 

pay in a timely manner any fee or penalty under this section. 

(3) REVOCATIONS.—In addition to or in lieu of the penalties 

and dismissals authorized by paragraphs (1) and (2), the Commission may revoke any instrument of authorization held by 

any entity that has failed to make payment of a regulatory fee 

assessed pursuant to this section. Such revocation action may 

be taken by the Commission after notice of the Commission’s 

intent to take such action is sent to the licensee by registered 

mail, return receipt requested, at the licensee’s last known address. The notice will provide the licensee at least 30 days to 


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either pay the fee or show cause why the fee does not apply 

to the licensee or should otherwise be waived or payment deferred. A hearing is not required under this subsection unless 

the licensee’s response presents a substantial and material 

question of fact. In any case where a hearing is conducted pursuant to this section, the hearing shall be based on written evidence only, and the burden of proceeding with the introduction 

of evidence and the burden of proof shall be on the licensee. 

Unless the licensee substantially prevails in the hearing, the 

Commission may assess the licensee for the costs of such hearing. Any Commission order adopted pursuant to this subsection shall determine the amount due, if any, and provide 

the licensee with at least 30 days to pay that amount or have 

its authorization revoked. No order of revocation under this 

subsection shall become final until the licensee has exhausted 

its right to judicial review of such order under section 402(b)(5) 

of this title. 

(d) WAIVER, REDUCTION, AND DEFERMENT.—The Commission may 

waive, reduce, or defer payment of a fee in any specific instance for 

good cause shown, where such action would promote the public interest. 

(e) DEPOSIT OF COLLECTIONS.—Moneys received from fees established under this section shall be deposited as an offsetting collection in, and credited to, the account providing appropriations to 

carry out the functions of the Commission. 

(f) REGULATIONS.— (1) IN GENERAL.—The Commission shall prescribe appropriate rules and regulations to carry out the provisions of this 

section. 

(2) INSTALLMENT PAYMENTS.—Such rules and regulations 

shall permit payment by installments in the case of fees in 

large amounts, and in the case of fees in small amounts, shall 

require the payment of the fee in advance for a number of 

years not to exceed the term of the license held by the payor. 

(g) SCHEDULE.—Until amended by the Commission pursuant to 

subsection (b), the Schedule of Regulatory Fees which the Federal 

Communications Commission shall, subject to subsection (a)(2), assess and collect shall be as follows: 

Schedule of Regulatory Fees 

Bureau/Category Annual Regulatory Fee 

Private Radio Bureau 

Exclusive use services (per license) 

Land Mobile (above 470 MHz, Base Station and SMRS) (47 

C.F.R. Part 90) ........................................................................ $16 

Microwave (47 C.F.R. Part 94) .................................................. 16 

Interactive Video Data Service (47 C.F.R. Part 95) ................ 16 

Shared use services (per license unless otherwise noted) .............. 7 

Amateur vanity call-signs ................................................................. 7 

Mass Media Bureau (per license) 

AM radio (47 C.F.R. Part 73) 

Class D Daytime ........................................................................ 250 

Class A Fulltime ........................................................................ 900 

Class B Fulltime ........................................................................ 500 

Class C Fulltime ........................................................................ 200 

Construction permits ................................................................. 100 

FM radio (47 C.F.R. Part 73) 


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Schedule of Regulatory Fees—Continued 

Bureau/Category Annual Regulatory Fee 

Classes C, C1, C2, B .................................................................. 900 

Classes A, B1, C3 ....................................................................... 600 

Construction permits ................................................................. 500 

TV (47 C.F.R. Part 73) 

VHF Commercial 

Markets 1 thru 10 ............................................................... 18,000 

Markets 11 thru 25 ............................................................. 16,000 

Markets 26 thru 50 ............................................................. 12,000 

Markets 51 thru 100 ........................................................... 8,000 

Remaining Markets ............................................................ 5,000 

Construction permits .......................................................... 4,000 

UHF Commercial 

Markets 1 thru 10 ............................................................... 14,400 

Markets 11 thru 25 ............................................................. 12,800 

Markets 26 thru 50 ............................................................. 9,600 

Markets 51 thru 100 ........................................................... 6,400 

Remaining Markets ............................................................ 4,000 

Construction permits .......................................................... 3,200 

Low Power TV, TV Translator, and TV Booster (47 C.F.R. Part 

74) ................................................................................................... 135 

Broadcast Auxiliary (47 C.F.R. Part 74) ......................................... 25 

International (HF) Broadcast (47 C.F.R. Part 73) .......................... 200 

Cable Antenna Relay Service (47 C.F.R. Part 78) .......................... 220 

Cable Television System (per 1,000 subscribers) (47 C.F.R. Part 

76) ................................................................................................... 370 

Common Carrier Bureau 

Radio Facilities 

Cellular Radio (per 1,000 subscribers) (47 C.F.R. Part 22) .... 60 

Personal Communications (per 1,000 subscribers) (47 

C.F.R.) ..................................................................................... 60 

Space Station (per operational station in geosynchronous 

orbit) (47 C.F.R. Part 25) ....................................................... 65,000 

Space Station (per system in low-earth orbit) (47 C.F.R. Part 

25) ............................................................................................ 90,000 

Public Mobile (per 1,000 subscribers) (47 C.F.R. Part 22) ..... 60 

Domestic Public Fixed (per call sign) (47 C.F.R. Part 21) ...... 55 

International Public Fixed (per call sign) (47 C.F.R. Part 23) 110 

Earth Stations (47 C.F.R. Part 25) 

VSAT and equivalent C-Band antennas (per 100 antennas) 6 

Mobile satellite earth stations (per 100 antennas) ................. 6 

Earth station antennas 

Less than 9 meters (per 100 antennas) ............................ 6 

9 Meters or more 

Transmit/Receive and Transmit Only (per meter) .... 85 

Receive only (per meter) .............................................. 55 

Carriers 

Inter-Exchange Carrier (per 1,000 presubscribed access lines) .... 60 

Local Exchange Carrier (per 1,000 access lines) ............................ 60 

Competitive access provider (per 1,000 subscribers) ...................... 60 

International circuits (per 100 active 64KB circuit or equivalent) 220 

(h) EXCEPTIONS.—The charges established under this section 

shall not be applicable to (1) governmental entities or nonprofit entities; or (2) to amateur radio operator licenses under part 97 of the 

Commission’s regulations (47 C.F.R. Part 97). 

(i) ACCOUNTING SYSTEM.—The Commission shall develop accounting systems necessary to making the adjustments authorized 

by subsection (b)(3). øIn the Commission’s annual report, the Commission shall prepare an analysis of its progress in developing such 

systems and¿ The Commission shall afford interested persons the 

opportunity to submit comments concerning the allocation of the 


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costs of performing the functions described in subsection (a) among 

the services in the Schedule. 

* * * * * * * 

SEC. 13. COMMUNICATIONS MARKETPLACE REPORT. 

(a) IN GENERAL.—In the last quarter of every even-numbered year, 

the Commission shall publish on its website and submit to the Committee on Energy and Commerce of the House of Representatives 

and the Committee on Commerce, Science, and Transportation of 

the Senate a report on the state of the communications marketplace. 

(b) CONTENTS.—Each report required by subsection (a) shall— 

(1) assess the state of competition in the communications 

marketplace, including competition to deliver voice, video, 

audio, and data services among providers of telecommunications, providers of commercial mobile service (as defined in 

section 332), multichannel video programming distributors (as 

defined in section 602), broadcast stations, providers of satellite 

communications, Internet service providers, and other providers 

of communications services; 

(2) assess the state of deployment of communications capabilities, including advanced telecommunications capability (as defined in section 706 of the Telecommunications Act of 1996 (47 

U.S.C. 1302)), regardless of the technology used for such deployment, including whether advanced telecommunications capability is being deployed to all Americans in a reasonable and 

timely fashion; 

(3) assess whether laws, regulations, or regulatory practices 

(whether those of the Federal Government, States, political subdivisions of States, Indian tribes or tribal organizations (as 

such terms are defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)), or 

foreign governments) pose a barrier to competitive entry into the 

communications marketplace or to the competitive expansion of 

existing providers of communications services; 

(4) describe the agenda of the Commission for the next 2-year 

period for addressing the challenges and opportunities in the 

communications marketplace that were identified through the 

assessments under paragraphs (1) through (3); and 

(5) describe the actions that the Commission has taken in 

pursuit of the agenda described pursuant to paragraph (4) in 

the previous report submitted under this section. 

(c) EXTENSION.—If the President designates a Commissioner as 

Chairman of the Commission during the last quarter of an evennumbered year, the portion of the report required by subsection 

(b)(4) may be published on the website of the Commission and submitted to the Committee on Energy and Commerce of the House of 

Representatives and the Committee on Commerce, Science, and 

Transportation of the Senate as an addendum during the first quarter of the following odd-numbered year. 

(d) SPECIAL REQUIREMENTS.— 

(1) ASSESSING COMPETITION.—In assessing the state of competition under subsection (b)(1), the Commission shall consider 

all forms of competition, including the effect of intermodal competition, facilities-based competition, and competition from new 


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and emergent communications services, including the provision 

of content and communications using the Internet. 

(2) ASSESSING DEPLOYMENT.—In assessing the state of deployment under subsection (b)(2), the Commission shall compile a 

list of geographical areas that are not served by any provider 

of advanced telecommunications capability. 

(3) INTERNATIONAL COMPARISONS AND DEMOGRAPHIC INFOR- MATION.—The Commission may use readily available data to 

draw appropriate comparisons between the United States communications marketplace and the international communications 

marketplace and to correlate its assessments with demographic 

information. 

(4) CONSIDERING SMALL BUSINESSES.—In assessing the state 

of competition under subsection (b)(1) and regulatory barriers 

under subsection (b)(3), the Commission shall consider market 

entry barriers for entrepreneurs and other small businesses in 

the communications marketplace in accordance with the national policy under section 257(b). 

(5) CONSIDERING CABLE RATES.—In assessing the state of 

competition under subsection (b)(1), the Commission shall include in each report required by subsection (a) the aggregate average total amount paid by cable systems in compensation 

under section 325 during the period covered by such report. 

TITLE II—COMMON CARRIERS 

PART I—COMMON CARRIER REGULATION 

* * * * * * * 

SEC. 215. TRANSACTIONS RELATING TO SERVICES, EQUIPMENT, AND 

SO FORTH. 

(a) The Commission shall examine into transactions entered into 

by any common carrier which relate to the furnishing of equipment, supplies, research, services, finances, credit, or personnel to 

such carrier and/or which may affect the changes made or to be 

made and/or the services rendered or to be rendered by such carrier, in wire or radio communications subject to this Act, and shall 

report to the Congress whether any such transactions have affected 

or are likely to affect adversely the ability of the carrier to render 

adequate service to the public, or may result in any undue or unreasonable increase in charges or in the maintenance of undue or 

unreasonable charges for such service; and in order to fully examine into such transactions the Commission shall have access to and 

the right of inspection and examination of all accounts, records, 

and memoranda including all documents, papers, and correspondence now or hereafter existing, of persons furnishing such equipment, supplies, research, services, finances, credit, or personnel. 

The Commission shall include in its report its recommendations for 

necessary legislation in connection with such transactions, and 

shall report specifically whether in its opinion legislation should be 

enacted (1) authorizing the Commission to declare any such transactions void or to permit such transactions to be carried out subject 

to such modification of their terms and conditions as the Commission shall deem desirable in the public interest; and/or (2) subVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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jecting such transactions to the approval of the Commission where 

the person furnishing or seeking to furnish the equipment, supplies, research, service, finances, credit or personnel is a person directly or indirectly controlling or controlled by, or under direct or 

indirect common control with, such carrier; and/or (3) authorizing 

the Commission to require that all or any transactions of carriers 

involving the furnishing of equipment, supplies, research, services, 

finances, credit, or personnel to such carrier be upon competitive 

bids on such terms and conditions and subject to such regulations 

as it shall prescribe as necessary in the public interest. 

ø(b) The Commission shall investigate the methods by which and 

the extent to which wire telephone companies are furnishing wire 

telegraph service and wire telegraph companies are furnishing wire 

telephone service, and shall report its findings to Congress together 

with its recommendations as to whether additional legislation on 

this subject is desirable.¿ 

ø(c)¿ (b) The Commission shall examine all contracts of common 

carriers subject to this Act which prevent the other party thereto 

from dealing with another common carrier subject to this Act, and 

shall report its findings to Congress, together with its recommendations as to whether additional legislation on this subject is desirable. 

* * * * * * * 

SEC. 227. RESTRICTIONS ON THE USE OF TELEPHONE EQUIPMENT. 

(a) DEFINITIONS.—As used in this section— 

(1) The term ‘‘automatic telephone dialing system’’ means 

equipment which has the capacity— 

(A) to store or produce telephone numbers to be called, 

using a random or sequential number generator; and 

(B) to dial such numbers. 

(2) The term ‘‘established business relationship’’, for purposes only of subsection (b)(1)(C)(i), shall have the meaning 

given the term in section 64.1200 of title 47, Code of Federal 

Regulations, as in effect on January 1, 2003, except that— 

(A) such term shall include a relationship between a person or entity and a business subscriber subject to the same 

terms applicable under such section to a relationship between a person or entity and a residential subscriber; and 

(B) an established business relationship shall be subject 

to any time limitation established pursuant to paragraph 

(2)(G)). 

(3) The term ‘‘telephone facsimile machine’’ means equipment which has the capacity (A) to transcribe text or images, 

or both, from paper into an electronic signal and to transmit 

that signal over a regular telephone line, or (B) to transcribe 

text or images (or both) from an electronic signal received over 

a regular telephone line onto paper. 

(4) The term ‘‘telephone solicitation’’ means the initiation of 

a telephone call or message for the purpose of encouraging the 

purchase or rental of, or investment in, property, goods, or 

services, which is transmitted to any person, but such term 

does not include a call or message (A) to any person with that 

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son with whom the caller has an established business relationship, or (C) by a tax exempt nonprofit organization. 

(5) The term ‘‘unsolicited advertisement’’ means any material 

advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person 

without that person’s prior express invitation or permission, in 

writing or otherwise. 

(b) RESTRICTIONS ON THE USE OF AUTOMATED TELEPHONE EQUIP- MENT.— 

(1) PROHIBITIONS.—It shall be unlawful for any person within the United States, or any person outside the United States, 

or any person outside the United States if the recipient is within the United States if the recipient is within the United 

States— 

(A) to make any call (other than a call made for emergency purposes or made with the prior express consent of 

the called party) using any automatic telephone dialing 

system or an artificial or prerecorded voice— 

(i) to any emergency telephone line (including any 

‘‘911’’ line and any emergency line of a hospital, medical physician or service office, health care facility, poison control center, or fire protection or law enforcement agency); 

(ii) to the telephone line of any guest room or patient room of a hospital, health care facility, elderly 

home, or similar establishment; or 

(iii) to any telephone number assigned to a paging 

service, cellular telephone service, specialized mobile 

radio service, or other radio common carrier service, or 

any service for which the called party is charged for 

the call; 

(B) to initiate any telephone call to any residential telephone line using an artificial or prerecorded voice to deliver a message without the prior express consent of the 

called party, unless the call is initiated for emergency purposes or is exempted by rule or order by the Commission 

under paragraph (2)(B); 

(C) to use any telephone facsimile machine, computer, or 

other device to send, to a telephone facsimile machine, an 

unsolicited advertisement, unless— 

(i) the unsolicited advertisement is from a sender 

with an established business relationship with the recipient; 

(ii) the sender obtained the number of the telephone 

facsimile machine through— 

(I) the voluntary communication of such number, within the context of such established business relationship, from the recipient of the unsolicited advertisement, or 

(II) a directory, advertisement, or site on the 

Internet to which the recipient voluntarily agreed 

to make available its facsimile number for public 

distribution, 

except that this clause shall not apply in the case of 

an unsolicited advertisement that is sent based on an 


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established business relationship with the recipient 

that was in existence before the date of enactment of 

the Junk Fax Prevention Act of 2005 if the sender possessed the facsimile machine number of the recipient 

before such date of enactment; and 

(iii) the unsolicited advertisement contains a notice 

meeting the requirements under paragraph (2)(D), 

except that the exception under clauses (i) and (ii) shall 

not apply with respect to an unsolicited advertisement 

sent to a telephone facsimile machine by a sender to whom 

a request has been made not to send future unsolicited advertisements to such telephone facsimile machine that 

complies with the requirements under paragraph (2)(E); or 

(D) to use an automatic telephone dialing system in such 

a way that two or more telephone lines of a multi-line 

business are engaged simultaneously. 

(2) REGULATIONS; EXEMPTIONS AND OTHER PROVISIONS.—The 

Commission shall prescribe regulations to implement the requirements of this subsection. In implementing the requirements of this subsection, the Commission— 

(A) shall consider prescribing regulations to allow businesses to avoid receiving calls made using an artificial or 

prerecorded voice to which they have not given their prior 

express consent; 

(B) may, by rule or order, exempt from the requirements 

of paragraph (1)(B) of this subsection, subject to such conditions as the Commission may prescribe— 

(i) calls that are not made for a commercial purpose; 

and 

(ii) such classes or categories of calls made for commercial purposes as the Commission determines— 

(I) will not adversely affect the privacy rights 

that this section is intended to protect; and 

(II) do not include the transmission of any unsolicited advertisement; 

(C) may, by rule or order, exempt from the requirements 

of paragraph (1)(A)(iii) of this subsection calls to a telephone number assigned to a cellular telephone service that 

are not charged to the called party, subject to such conditions as the Commission may prescribe as necessary in the 

interest of the privacy rights this section is intended to 

protect; 

(D) shall provide that a notice contained in an unsolicited advertisement complies with the requirements under 

this subparagraph only if— 

(i) the notice is clear and conspicuous and on the 

first page of the unsolicited advertisement; 

(ii) the notice states that the recipient may make a 

request to the sender of the unsolicited advertisement 

not to send any future unsolicited advertisements to a 

telephone facsimile machine or machines and that failure to comply, within the shortest reasonable time, as 

determined by the Commission, with such a request 

meeting the requirements under subparagraph (E) is 

unlawful; 


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(iii) the notice sets forth the requirements for a request under subparagraph (E); 

(iv) the notice includes— 

(I) a domestic contact telephone and facsimile 

machine number for the recipient to transmit such 

a request to the sender; and 

(II) a cost-free mechanism for a recipient to 

transmit a request pursuant to such notice to the 

sender of the unsolicited advertisement; the Commission shall by rule require the sender to provide 

such a mechanism and may, in the discretion of 

the Commission and subject to such conditions as 

the Commission may prescribe, exempt certain 

classes of small business senders, but only if the 

Commission determines that the costs to such 

class are unduly burdensome given the revenues 

generated by such small businesses; 

(v) the telephone and facsimile machine numbers 

and the cost-free mechanism set forth pursuant to 

clause (iv) permit an individual or business to make 

such a request at any time on any day of the week; 

and 

(vi) the notice complies with the requirements of 

subsection (d); 

(E) shall provide, by rule, that a request not to send future unsolicited advertisements to a telephone facsimile 

machine complies with the requirements under this subparagraph only if— 

(i) the request identifies the telephone number or 

numbers of the telephone facsimile machine or machines to which the request relates; 

(ii) the request is made to the telephone or facsimile 

number of the sender of such an unsolicited advertisement provided pursuant to subparagraph (D)(iv) or by 

any other method of communication as determined by 

the Commission; and 

(iii) the person making the request has not, subsequent to such request, provided express invitation or 

permission to the sender, in writing or otherwise, to 

send such advertisements to such person at such telephone facsimile machine; 

(F) may, in the discretion of the Commission and subject 

to such conditions as the Commission may prescribe, allow 

professional or trade associations that are tax-exempt nonprofit organizations to send unsolicited advertisements to 

their members in furtherance of the association’s tax-exempt purpose that do not contain the notice required by 

paragraph (1)(C)(iii), except that the Commission may take 

action under this subparagraph only— 

(i) by regulation issued after public notice and opportunity for public comment; and 

(ii) if the Commission determines that such notice 

required by paragraph (1)(C)(iii) is not necessary to 

protect the ability of the members of such associations 


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to stop such associations from sending any future unsolicited advertisements; and 

(G)(i) may, consistent with clause (ii), limit the duration 

of the existence of an established business relationship, 

however, before establishing any such limits, the Commission shall— 

(I) determine whether the existence of the exception 

under paragraph (1)(C) relating to an established business relationship has resulted in a significant number 

of complaints to the Commission regarding the sending of unsolicited advertisements to telephone facsimile machines; 

(II) determine whether a significant number of any 

such complaints involve unsolicited advertisements 

that were sent on the basis of an established business 

relationship that was longer in duration than the 

Commission believes is consistent with the reasonable 

expectations of consumers; 

(III) evaluate the costs to senders of demonstrating 

the existence of an established business relationship 

within a specified period of time and the benefits to recipients of establishing a limitation on such established business relationship; and 

(IV) determine whether with respect to small businesses, the costs would not be unduly burdensome; 

and 

(ii) may not commence a proceeding to determine whether to limit the duration of the existence of an established 

business relationship before the expiration of the 3-month 

period that begins on the date of the enactment of the 

Junk Fax Prevention Act of 2005. 

(3) PRIVATE RIGHT OF ACTION.—A person or entity may, if 

otherwise permitted by the laws or rules of court of a State, 

bring in an appropriate court of that State— 

(A) an action based on a violation of this subsection or 

the regulations prescribed under this subsection to enjoin 

such violation, 

(B) an action to recover for actual monetary loss from 

such a violation, or to receive $500 in damages for each 

such violation, whichever is greater, or 

(C) both such actions. 

If the court finds that the defendant willfully or knowingly violated this subsection or the regulations prescribed under this 

subsection, the court may, in its discretion, increase the 

amount of the award to an amount equal to not more than 3 

times the amount available under subparagraph (B) of this 

paragraph. 

(c) PROTECTION OF SUBSCRIBER PRIVACY RIGHTS.— 

(1) RULEMAKING PROCEEDING REQUIRED.—Within 120 days 

after the date of enactment of this section, the Commission 

shall initiate a rulemaking proceeding concerning the need to 

protect residential telephone subscribers’ privacy rights to 

avoid receiving telephone solicitations to which they object. 

The proceeding shall— 


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(A) compare and evaluate alternative methods and procedures (including the use of electronic databases, telephone network technologies, special directory markings, 

industry-based or company-specific ‘‘do not call’’ systems, 

and any other alternatives, individually or in combination) 

for their effectiveness in protecting such privacy rights, 

and in terms of their cost and other advantages and disadvantages; 

(B) evaluate the categories of public and private entities 

that would have the capacity to establish and administer 

such methods and procedures; 

(C) consider whether different methods and procedures 

may apply for local telephone solicitations, such as local 

telephone solicitations of small businesses or holders of 

second class mail permits; 

(D) consider whether there is a need for additional Commission authority to further restrict telephone solicitations, including those calls exempted under subsection 

(a)(3) of this section, and, if such a finding is made and 

supported by the record, propose specific restrictions to the 

Congress; and 

(E) develop proposed regulations to implement the methods and procedures that the Commission determines are 

most effective and efficient to accomplish the purposes of 

this section. 

(2) REGULATIONS.—Not later than 9 months after the date of 

enactment of this section, the Commission shall conclude the 

rulemaking proceeding initiated under paragraph (1) and shall 

prescribe regulations to implement methods and procedures for 

protecting the privacy rights described in such paragraph in an 

efficient, effective, and economic manner and without the imposition of any additional charge to telephone subscribers. 

(3) USE OF DATABASE PERMITTED.—The regulations required 

by paragraph (2) may require the establishment and operation 

of a single national database to compile a list of telephone 

numbers of residential subscribers who object to receiving telephone solicitations, and to make that compiled list and parts 

thereof available for purchase. If the Commission determines 

to require such a database, such regulations shall— 

(A) specify a method by which the Commission will select an entity to administer such database; 

(B) require each common carrier providing telephone exchange service, in accordance with regulations prescribed 

by the Commission, to inform subscribers for telephone exchange service of the opportunity to provide notification, in 

accordance with regulations established under this paragraph, that such subscriber objects to receiving telephone 

solicitations; 

(C) specify the methods by which each telephone subscriber shall be informed, by the common carrier that provides local exchange service to that subscriber, of (i) the 

subscriber’s right to give or revoke a notification of an objection under subparagraph (A), and (ii) the methods by 

which such right may be exercised by the subscriber; 


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(D) specify the methods by which such objections shall 

be collected and added to the database; 

(E) prohibit any residential subscriber from being 

charged for giving or revoking such notification or for 

being included in a database compiled under this section; 

(F) prohibit any person from making or transmitting a 

telephone solicitation to the telephone number of any subscriber included in such database; 

(G) specify (i) the methods by which any person desiring 

to make or transmit telephone solicitations will obtain access to the database, by area code or local exchange prefix, 

as required to avoid calling the telephone numbers of subscribers included in such database; and (ii) the costs to be 

recovered from such persons; 

(H) specify the methods for recovering, from persons accessing such database, the costs involved in identifying, 

collecting, updating, disseminating, and selling, and other 

activities relating to, the operations of the database that 

are incurred by the entities carrying out those activities; 

(I) specify the frequency with which such database will 

be updated and specify the method by which such updating will take effect for purposes of compliance with the 

regulations prescribed under this subsection; 

(J) be designed to enable States to use the database 

mechanism selected by the Commission for purposes of administering or enforcing State law; 

(K) prohibit the use of such database for any purpose 

other than compliance with the requirements of this section and any such State law and specify methods for protection of the privacy rights of persons whose numbers are 

included in such database; and 

(L) require each common carrier providing services to 

any person for the purpose of making telephone solicitations to notify such person of the requirements of this section and the regulations thereunder. 

(4) CONSIDERATIONS REQUIRED FOR USE OF DATABASE METH- OD.—If the Commission determines to require the database 

mechanism described in paragraph (3), the Commission shall— 

(A) in developing procedures for gaining access to the 

database, consider the different needs of telemarketers 

conducting business on a national, regional, State, or local 

level; 

(B) develop a fee schedule or price structure for recouping the cost of such database that recognizes such differences and— 

(i) reflect the relative costs of providing a national, 

regional, State, or local list of phone numbers of subscribers who object to receiving telephone solicitations; 

(ii) reflect the relative costs of providing such lists 

on paper or electronic media; and 

(iii) not place an unreasonable financial burden on 

small businesses; and 

(C) consider (i) whether the needs of telemarketers operating on a local basis could be met through special markings of area white pages directories, and (ii) if such direcVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00029 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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tories are needed as an adjunct to database lists prepared 

by area code and local exchange prefix. 

(5) PRIVATE RIGHT OF ACTION.—A person who has received 

more than one telephone call within any 12-month period by 

or on behalf of the same entity in violation of the regulations 

prescribed under this subsection may, if otherwise permitted 

by the laws or rules of court of a State bring in an appropriate 

court of that State— 

(A) an action based on a violation of the regulations prescribed under this subsection to enjoin such violation, 

(B) an action to recover for actual monetary loss from 

such a violation, or to receive up to $500 in damages for 

each such violation, whichever is greater, or 

(C) both such actions. 

It shall be an affirmative defense in any action brought under 

this paragraph that the defendant has established and implemented, with due care, reasonable practices and procedures to 

effectively prevent telephone solicitations in violation of the 

regulations prescribed under this subsection. If the court finds 

that the defendant willfully or knowingly violated the regulations prescribed under this subsection, the court may, in its 

discretion, increase the amount of the award to an amount 

equal to not more than 3 times the amount available under 

subparagraph (B) of this paragraph. 

(6) RELATION TO SUBSECTION (b).—The provisions of this subsection shall not be construed to permit a communication prohibited by subsection (b). 

(d) TECHNICAL AND PROCEDURAL STANDARDS.— 

(1) PROHIBITION.—It shall be unlawful for any person within 

the United States— 

(A) to initiate any communication using a telephone facsimile machine, or to make any telephone call using any 

automatic telephone dialing system, that does not comply 

with the technical and procedural standards prescribed 

under this subsection, or to use any telephone facsimile 

machine or automatic telephone dialing system in a manner that does not comply with such standards; or 

(B) to use a computer or other electronic device to send 

any message via a telephone facsimile machine unless 

such person clearly marks, in a margin at the top or bottom of each transmitted page of the message or on the first 

page of the transmission, the date and time it is sent and 

an identification of the business, other entity, or individual 

sending the message and the telephone number of the 

sending machine or of such business, other entity, or individual. 

(2) TELEPHONE FACSIMILE MACHINES.—The Commission shall 

revise the regulations setting technical and procedural standards for telephone facsimile machines to require that any such 

machine which is manufactured after one year after the date 

of enactment of this section clearly marks, in a margin at the 

top or bottom of each transmitted page or on the first page of 

each transmission, the date and time sent, an identification of 

the business, other entity, or individual sending the message, 


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and the telephone number of the sending machine or of such 

business, other entity, or individual. 

(3) ARTIFICIAL OR PRERECORDED VOICE SYSTEMS.—The Commission shall prescribe technical and procedural standards for 

systems that are used to transmit any artificial or prerecorded 

voice message via telephone. Such standards shall require 

that— 

(A) all artificial or prerecorded telephone messages (i) 

shall, at the beginning of the message, state clearly the 

identity of the business, individual, or other entity initiating the call, and (ii) shall, during or after the message, 

state clearly the telephone number or address of such business, other entity, or individual; and 

(B) any such system will automatically release the called 

party’s line within 5 seconds of the time notification is 

transmitted to the system that the called party has hung 

up, to allow the called party’s line to be used to make or 

receive other calls. 

(e) PROHIBITION ON PROVISION OF INACCURATE CALLER IDENTIFICATION INFORMATION.— 

(1) IN GENERAL.—It shall be unlawful for any person within 

the United States, in connection with any telecommunications 

service or IP-enabled voice service, to cause any caller identification service to knowingly transmit misleading or inaccurate 

caller identification information with the intent to defraud, 

cause harm, or wrongfully obtain anything of value, unless 

such transmission is exempted pursuant to paragraph (3)(B). 

(2) PROTECTION FOR BLOCKING CALLER IDENTIFICATION INFORMATION.—Nothing in this subsection may be construed to prevent or restrict any person from blocking the capability of any 

caller identification service to transmit caller identification information. 

(3) REGULATIONS.— (A) IN GENERAL.—Not later than 6 months after the date 

of enactment of the Truth in Caller ID Act of 2009, the 

Commission shall prescribe regulations to implement this 

subsection. 

(B) CONTENT OF REGULATIONS.— (i) IN GENERAL.—The regulations required under 

subparagraph (A) shall include such exemptions from 

the prohibition under paragraph (1) as the Commission determines is appropriate. 

(ii) SPECIFIC EXEMPTION FOR LAW ENFORCEMENT

AGENCIES OR COURT ORDERS.—The regulations required under subparagraph (A) shall exempt from the 

prohibition under paragraph (1) transmissions in connection with— 

(I) any authorized activity of a law enforcement 

agency; or 

(II) a court order that specifically authorizes the 

use of caller identification manipulation. 

ø(4) REPORT.—Not later than 6 months after the enactment 

of the Truth in Caller ID Act of 2009, the Commission shall report to Congress whether additional legislation is necessary to 

prohibit the provision of inaccurate caller identification inforVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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mation in technologies that are successor or replacement technologies to telecommunications service or IP-enabled voice 

service.¿ 

(5) PENALTIES.— (A) CIVIL FORFEITURE.— (i) IN GENERAL.—Any person that is determined by 

the Commission, in accordance with paragraphs (3) 

and (4) of section 503(b), to have violated this subsection shall be liable to the United States for a forfeiture penalty. A forfeiture penalty under this paragraph shall be in addition to any other penalty provided for by this Act. The amount of the forfeiture 

penalty determined under this paragraph shall not exceed $10,000 for each violation, or 3 times that 

amount for each day of a continuing violation, except 

that the amount assessed for any continuing violation 

shall not exceed a total of $1,000,000 for any single act 

or failure to act. 

(ii) RECOVERY.—Any forfeiture penalty determined 

under clause (i) shall be recoverable pursuant to section 504(a). 

(iii) PROCEDURE.—No forfeiture liability shall be determined under clause (i) against any person unless 

such person receives the notice required by section 

503(b)(3) or section 503(b)(4). 

(iv) 2-YEAR STATUTE OF LIMITATIONS.—No forfeiture 

penalty shall be determined or imposed against any 

person under clause (i) if the violation charged occurred more than 2 years prior to the date of issuance 

of the required notice or notice or apparent liability. 

(B) CRIMINAL FINE.—Any person who willfully and knowingly violates this subsection shall upon conviction thereof 

be fined not more than $10,000 for each violation, or 3 

times that amount for each day of a continuing violation, 

in lieu of the fine provided by section 501 for such a violation. This subparagraph does not supersede the provisions 

of section 501 relating to imprisonment or the imposition 

of a penalty of both fine and imprisonment. 

(6) ENFORCEMENT BY STATES.— (A) IN GENERAL.—The chief legal officer of a State, or 

any other State officer authorized by law to bring actions 

on behalf of the residents of a State, may bring a civil action, as parens patriae, on behalf of the residents of that 

State in an appropriate district court of the United States 

to enforce this subsection or to impose the civil penalties 

for violation of this subsection, whenever the chief legal officer or other State officer has reason to believe that the 

interests of the residents of the State have been or are 

being threatened or adversely affected by a violation of 

this subsection or a regulation under this subsection. 

(B) NOTICE.—The chief legal officer or other State officer 

shall serve written notice on the Commission of any civil 

action under subparagraph (A) prior to initiating such civil 

action. The notice shall include a copy of the complaint to 

be filed to initiate such civil action, except that if it is not 


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feasible for the State to provide such prior notice, the 

State shall provide such notice immediately upon instituting such civil action. 

(C) AUTHORITY TO INTERVENE.—Upon receiving the notice required by subparagraph (B), the Commission shall 

have the right— 

(i) to intervene in the action; 

(ii) upon so intervening, to be heard on all matters 

arising therein; and 

(iii) to file petitions for appeal. 

(D) CONSTRUCTION.—For purposes of bringing any civil 

action under subparagraph (A), nothing in this paragraph 

shall prevent the chief legal officer or other State officer 

from exercising the powers conferred on that officer by the 

laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of 

witnesses or the production of documentary and other evidence. 

(E) VENUE; SERVICE OR PROCESS.— 

(i) VENUE.—An action brought under subparagraph 

(A) shall be brought in a district court of the United 

States that meets applicable requirements relating to 

venue under section 1391 of title 28, United States 

Code. 

(ii) SERVICE OF PROCESS.—In an action brought 

under subparagraph (A)— 

(I) process may be served without regard to the 

territorial limits of the district or of the State in 

which the action is instituted; and 

(II) a person who participated in an alleged violation that is being litigated in the civil action 

may be joined in the civil action without regard to 

the residence of the person. 

(7) EFFECT ON OTHER LAWS.—This subsection does not prohibit any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency of the United 

States, a State, or a political subdivision of a State, or of an 

intelligence agency of the United States. 

(8) DEFINITIONS.—For purposes of this subsection: 

(A) CALLER IDENTIFICATION INFORMATION.—The term 

‘‘caller identification information’’ means information provided by a caller identification service regarding the telephone number of, or other information regarding the origination of, a call made using a telecommunications service 

or IP-enabled voice service. 

(B) CALLER IDENTIFICATION SERVICE.—The term ‘‘caller 

identification service’’ means any service or device designed to provide the user of the service or device with the 

telephone number of, or other information regarding the 

origination of, a call made using a telecommunications 

service or IP-enabled voice service. Such term includes 

automatic number identification services. 

(C) IP-ENABLED VOICE SERVICE.—The term ‘‘IP-enabled 

voice service’’ has the meaning given that term by section 

9.3 of the Commission’s regulations (47 C.F.R. 9.3), as 


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those regulations may be amended by the Commission 

from time to time. 

(9) LIMITATION.—Notwithstanding any other provision of this 

section, subsection (f) shall not apply to this subsection or to 

the regulations under this subsection. 

(f) EFFECT ON STATE LAW.— (1) STATE LAW NOT PREEMPTED.—Except for the standards 

prescribed under subsection (d) and subject to paragraph (2) of 

this subsection, nothing in this section or in the regulations 

prescribed under this section shall preempt any State law that 

imposes more restrictive intrastate requirements or regulations 

on, or which prohibits— 

(A) the use of telephone facsimile machines or other electronic devices to send unsolicited advertisements; 

(B) the use of automatic telephone dialing systems; 

(C) the use of artificial or prerecorded voice messages; or 

(D) the making of telephone solicitations. 

(2) STATE USE OF DATABASES.—If, pursuant to subsection 

(c)(3), the Commission requires the establishment of a single 

national database of telephone numbers of subscribers who object to receiving telephone solicitations, a State or local authority may not, in its regulation of telephone solicitations, require 

the use of any database, list, or listing system that does not 

include the part of such single national database that relates 

to such State. 

(g) ACTIONS BY STATES.— (1) AUTHORITY OF STATES.—Whenever the attorney general of 

a State, or an official or agency designated by a State, has reason to believe that any person has engaged or is engaging in 

a pattern or practice of telephone calls or other transmissions 

to residents of that State in violation of this section or the regulations prescribed under this section, the State may bring a 

civil action on behalf of its residents to enjoin such calls, an action to recover for actual monetary loss or receive $500 in damages for each violation, or both such actions. If the court finds 

the defendant willfully or knowingly violated such regulations, 

the court may, in its discretion, increase the amount of the 

award to an amount equal to not more than 3 times the 

amount available under the preceding sentence. 

(2) EXCLUSIVE JURISDICTION OF FEDERAL COURTS.—The district courts of the United States, the United States courts of 

any territory, and the District Court of the United States for 

the District of Columbia shall have exclusive jurisdiction over 

all civil actions brought under this subsection. Upon proper application, such courts shall also have jurisdiction to issue writs 

of mandamus, or orders affording like relief, commanding the 

defendant to comply with the provisions of this section or regulations prescribed under this section, including the requirement that the defendant take such action as is necessary to remove the danger of such violation. Upon a proper showing, a 

permanent or temporary injunction or restraining order shall 

be granted without bond. 

(3) RIGHTS OF COMMISSION.—The State shall serve prior written notice of any such civil action upon the Commission and 

provide the Commission with a copy of its complaint, except in 


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any case where such prior notice is not feasible, in which case 

the State shall serve such notice immediately upon instituting 

such action. The Commission shall have the right (A) to intervene in the action, (B) upon so intervening, to be heard on all 

matters arising therein, and (C) to file petitions for appeal. 

(4) VENUE; SERVICE OF PROCESS.—Any civil action brought 

under this subsection in a district court of the United States 

may be brought in the district wherein the defendant is found 

or is an inhabitant or transacts business or wherein the violation occurred or is occurring, and process in such cases may be 

served in any district in which the defendant is an inhabitant 

or where the defendant may be found. 

(5) INVESTIGATORY POWERS.—For purposes of bringing any 

civil action under this subsection, nothing in this section shall 

prevent the attorney general of a State, or an official or agency 

designated by a State, from exercising the powers conferred on 

the attorney general or such official by the laws of such State 

to conduct investigations or to administer oaths or affirmations 

or to compel the attendance of witnesses or the production of 

documentary and other evidence. 

(6) EFFECT ON STATE COURT PROCEEDINGS.—Nothing contained in this subsection shall be construed to prohibit an authorized State official from proceeding in State court on the 

basis of an alleged violation of any general civil or criminal 

statute of such State. 

(7) LIMITATION.—Whenever the Commission has instituted a 

civil action for violation of regulations prescribed under this 

section, no State may, during the pendency of such action instituted by the Commission, subsequently institute a civil action 

against any defendant named in the Commission’s complaint 

for any violation as alleged in the Commission’s complaint. 

(8) DEFINITION.—As used in this subsection, the term ‘‘attorney general’’ means the chief legal officer of a State. 

(h) JUNK FAX ENFORCEMENT REPORT.—The Commission shall 

submit an annual report to Congress regarding the enforcement 

during the past year of the provisions of this section relating to 

sending of unsolicited advertisements to telephone facsimile machines, which report shall include— 

(1) the number of complaints received by the Commission 

during such year alleging that a consumer received an unsolicited advertisement via telephone facsimile machine in violation 

of the Commission’s rules; 

(2) the number of citations issued by the Commission pursuant to section 503 during the year to enforce any law, regulation, or policy relating to sending of unsolicited advertisements 

to telephone facsimile machines; 

(3) the number of notices of apparent liability issued by the 

Commission pursuant to section 503 during the year to enforce 

any law, regulation, or policy relating to sending of unsolicited 

advertisements to telephone facsimile machines; 

(4) for each notice referred to in paragraph (3)— 

(A) the amount of the proposed forfeiture penalty involved; 

(B) the person to whom the notice was issued; 


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(C) the length of time between the date on which the 

complaint was filed and the date on which the notice was 

issued; and 

(D) the status of the proceeding; 

(5) the number of final orders imposing forfeiture penalties 

issued pursuant to section 503 during the year to enforce any 

law, regulation, or policy relating to sending of unsolicited advertisements to telephone facsimile machines; 

(6) for each forfeiture order referred to in paragraph (5)— 

(A) the amount of the penalty imposed by the order; 

(B) the person to whom the order was issued; 

(C) whether the forfeiture penalty has been paid; and 

(D) the amount paid; 

(7) for each case in which a person has failed to pay a forfeiture penalty imposed by such a final order, whether the 

Commission referred such matter for recovery of the penalty; 

and 

(8) for each case in which the Commission referred such an 

order for recovery— 

(A) the number of days from the date the Commission 

issued such order to the date of such referral; 

(B) whether an action has been commenced to recover 

the penalty, and if so, the number of days from the date 

the Commission referred such order for recovery to the 

date of such commencement; and 

(C) whether the recovery action resulted in collection of 

any amount, and if so, the amount collected. 

* * * * * * * 

PART II—DEVELOPMENT OF COMPETITIVE 

MARKETS 

* * * * * * * 

SEC. 257. MARKET ENTRY BARRIERS PROCEEDING. 

(a) ELIMINATION OF BARRIERS.—Within 15 months after the date 

of enactment of the Telecommunications Act of 1996, the Commission shall complete a proceeding for the purpose of identifying and 

eliminating, by regulations pursuant to its authority under this Act 

(other than this section), market entry barriers for entrepreneurs 

and other small businesses in the provision and ownership of telecommunications services and information services, or in the provision of parts or services to providers of telecommunications services 

and information services. 

(b) NATIONAL POLICY.—In carrying out subsection (a), the Commission shall seek to promote the policies and purposes of this Act 

favoring diversity of media voices, vigorous economic competition, 

technological advancement, and promotion of the public interest, 

convenience, and necessity. 

ø(c) PERIODIC REVIEW.—Every 3 years following the completion 

of the proceeding required by subsection (a), the Commission shall 

review and report to Congress on— 

ø(1) any regulations prescribed to eliminate barriers within 

its jurisdiction that are identified under subsection (a) and that 


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can be prescribed consistent with the public interest, convenience, and necessity; and 

ø(2) the statutory barriers identified under subsection (a) 

that the Commission recommends be eliminated, consistent 

with the public interest, convenience, and necessity.¿ 

* * * * * * * 

TITLE III—SPECIAL PROVISIONS 

RELATING TO RADIO 

PART I—GENERAL PROVISIONS 

* * * * * * * 

SEC. 309. ACTION UPON APPLICATIONS; FORM OF AND CONDITIONS 

ATTACHED TO LICENSES. 

(a) Subject to the provisions of this section, the Commission shall 

determine, in the case of each application filed with it to which section 308 applies, whether the public interest, convenience, and necessity will be served by the granting of such application, and, if 

the Commission, upon examination of such application and upon 

consideration of such other matters as the Commission may officially notice, shall find that public interest, convenience, and necessity would be served by the granting thereof, it shall grant such application. 

(b) Except as provided in subsection (c) of this section, no such 

application— 

(1) for an instrument of authorization in the case of a station 

in the broadcasting or common carrier services, or 

(2) for an instrument of authorization in the case of a station 

in any of the following categories: 

(A) industrial radio positioning stations for which frequencies are assigned on an exclusive basis, 

(B) aeronautical en route stations, 

(C) aeronautical advisory stations, 

(D) airdrome control stations, 

(E) aeronautical fixed stations, and 

(F) such other stations or classes of stations, not in the 

broadcasting or common carrier services, as the Commission shall by rule prescribe, 

shall be granted by the Commission earlier than thirty days following issuance of public notice by the Commission of the acceptance for filing of such application or of any substantial amendment 

thereof. 

(c) Subsection (b) of this section shall not apply— 

(1) to any minor amendment of an application to which such 

subsection is applicable, or 

(2) to any application for— 

(A) a minor change in the facilities of an authorized station, 

(B) consent to an involuntary assignment or transfer 

under section 310(b) or to an assignment or transfer thereunder which does not involve a substantial change in ownership or control, 


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(C) a license under section 319(c) or, pending application 

for or grant of such license, any special or temporary authorization to permit interim operation to facilitate completion of authorized construction or to provide substantially the same service as would be authorized by such license, 

(D) extension of time to complete construction of authorized facilities, 

(E) an authorization of facilities for remote pickups, studio links and similar facilities for use in the operation of 

a broadcast station, 

(F) authorizations pursuant to section 325(c) where the 

programs to be transmitted are special events not of a continuing nature, 

(G) a special temporary authorization for nonbroadcast 

operation not to exceed thirty days where no application 

for regular operation is contemplated to be filed or not to 

exceed sixty days pending the filing of an application for 

such regular operation, or 

(H) an authorization under any of the proviso clauses of 

section 308(a). 

(d)(1) Any party in interest may file with the Commission a petition to deny any application (whether as originally filed or as 

amended) to which subsection (b) of this section applies at any time 

prior to the day of Commission grant thereof without hearing or 

the day of formal designation thereof for hearing; except that with 

respect to any classification of applications, the Commission from 

time to time by rule may specify a shorter period (no less than thirty days following the issuance of public notice by the Commission 

of the acceptance for filing of such application or of any substantial 

amendment thereof), which shorter period shall be reasonably related to the time when the applications would normally be reached 

for processing. The petitioner shall serve a copy of such petition on 

the applicant. The petition shall contain specific allegations of fact 

sufficient to show that the petitioner is a party in interest and that 

a grant of the application would be prima facie inconsistent with 

subsection (a) (or subsection (k) in the case of renewal of any 

broadcast station license). Such allegations of fact shall, except for 

those of which official notice may be taken, be supported by affidavit of a person or persons with personal knowledge thereof. The 

applicant shall be given the opportunity to file a reply in which allegations of fact or denials thereof shall similarly be supported by 

affidavit. 

(2) If the Commission finds on the basis of the application, the 

pleadings filed, or other matters which it may officially notice that 

there are no substantial and material questions of fact and that a 

grant of the application would be consistent with subsection (a) (or 

subsection (k) in the case of renewal of any broadcast station license), it shall make the grant, deny the petition, and issue a concise statement of the reasons for denying the petition, which statement shall dispose of all substantial issues raised by the petition. 

If a substantial and material question of fact is presented or if the 

Commission for any reason is unable to find that grant of the application would be consistent with subsection (a) (or subsection (k) 


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in the case of renewal of any broadcast station license), it shall proceed as provided in subsection (e). 

(e) If, in the case of any application to which subsection (a) of 

this section applies, a substantial and material question of fact is 

presented or the Commission for any reason is unable to make the 

finding specified in such subsection, it shall formally designate the 

application for hearing on the ground or reasons then obtaining 

and shall forthwith notify the applicant and all other known parties in interest of such action and the ground and reasons therefor, 

specifying with particularity the matters and things in issue but 

not including issues or requirements phrased generally. When the 

Commission has so designated an application for hearing, the parties in interest, if any, who are not notified by the Commission of 

such action may acquire the status of a party to the proceeding 

thereon by filing a petition for intervention showing the basis for 

their interest not more than thirty days after publication of the 

hearing issues or any substantial amendment thereto in the Federal Register. 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. The burden of proceeding with the introduction of evidence and the burden of proof 

shall be upon the applicant, except that with respect to any issue 

presented by a petition to deny or a petition to enlarge the issues, 

such burdens shall be as determined by the Commission. 

(f) When an application subject to subsection (b) has been filed, 

the Commission, notwithstanding the requirements of such subsection, may, if the grant of such application is otherwise authorized by law and if it finds that there are extraordinary circumstances requiring temporary operations in the public interest 

and that delay in the institution of such temporary operations 

would seriously prejudice the public interest, grant a temporary authorization, accompanied by a statement of its reasons therefor, to 

permit such temporary operations for a period not exceeding 180 

days, and upon making like findings may extend such temporary 

authorization for additional periods not to exceed 180 days. When 

any such grant of a temporary authorization is made, the Commission shall give expeditious treatment to any timely filed petition to 

deny such application and to any petition for rehearing of such 

grant filed under section 405. 

(g) The Commission is authorized to adopt reasonable classifications of applications and amendments in order to effectuate the 

purposes of this section. 

(h) 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 706 

of this Act. 

(i) RANDOM SELECTION.— 


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(1) GENERAL AUTHORITY.—Except as provided in paragraph 

(5), if there is more than one application for any initial license 

or construction permit, then the Commission shall have the authority to grant such license or permit to a qualified applicant 

through the use of a system of random selection. 

(2) No license or construction permit shall be granted to an applicant selected pursuant to paragraph (1) unless the Commission determines the qualifications of such applicant pursuant to subsection (a) and section 308(b). When substantial and material questions of fact exist concerning such qualifications, the Commission 

shall conduct a hearing in order to make such determinations. For 

the purposes of making such determinations, the Commission may, 

by rule, and notwithstanding any other provision of law— 

(A) adopt procedures for the submission of all or part of the 

evidence in written form; 

(B) delegate the function of presiding at the taking of written 

evidence to Commission employees other than administrative 

law judges; and 

(C) omit the determination required by subsection (a) with 

respect to any application other than the one selected pursuant 

to paragraph (1). 

(3)(A) The Commission shall establish rules and procedures to 

ensure that, in the administration of any system of random selection under this subsection used for granting licenses or construction permits for any media of mass communications, significant 

preferences will be granted to applicants or groups of applicants, 

the grant to which of the license or permit would increase the diversification of ownership of the media of mass communications. To 

further diversify the ownership of the media of mass communications, an additional significant preference shall be granted to any 

applicant controlled by a member or members of minority group. 

(B) The Commission shall have authority to require each qualified applicant seeking a significant preference under subparagraph 

(A) to submit to the Commission such information as may be necessary to enable the Commission to make a determination regarding whether such applicant shall be granted such preference. Such 

information shall be submitted in such form, at such times, and in 

accordance with such procedures, as the Commission may require. 

(C) For purposes of this paragraph: 

(i) The term ‘‘media of mass communication’’ includes television, 

radio, cable television, multipoint distribution service, direct broadcast satellite service, and other services, the licensed facilities of 

which may be substantially devoted toward providing programming 

or other information services within the editorial control of the licensee. 

(ii) The term ‘‘minority group’’ includes Blacks, Hispanics, American Indians, Alaska Natives, Asians, and Pacific Islanders. 

(4)(A) The Commission shall, after notice and opportunity for 

hearing, prescribe rules establishing a system of random selection 

for use by the Commission under this subsection in any instance 

in which the Commission, in its discretion, determines that such 

use is appropriate for the granting of any license or permit in accordance with paragraph (1). 

(B) The Commission shall have authority to amend such rules 

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sions of this subsection. Any such amendment shall be made after 

notice and opportunity for hearing. 

(C) Not later than 180 days after the date of enactment of this 

subparagraph, the Commission shall prescribe such transfer disclosures and antitrafficking restrictions and payment schedules as are 

necessary to prevent the unjust enrichment of recipients of licenses 

or permits as a result of the methods employed to issue licenses 

under this subsection. 

(5) TERMINATION OF AUTHORITY.—(A) Except as provided in 

subparagraph (B), the Commission shall not issue any license 

or permit using a system of random selection under this subsection after July 1, 1997. 

(B) Subparagraph (A) of this paragraph shall not apply with 

respect to licenses or permits for stations described in section 

397(6) of this Act. 

(j) USE OF COMPETITIVE BIDDING.— 

(1) GENERAL AUTHORITY.—If, consistent with the obligations 

described in paragraph (6)(E), mutually exclusive applications 

are accepted for any initial license or construction permit, 

then, except as provided in paragraph (2), the Commission 

shall grant the license or permit to a qualified applicant 

through a system of competitive bidding that meets the requirements of this subsection. 

(2) EXEMPTIONS.—The competitive bidding authority granted 

by this subsection shall not apply to licenses or construction 

permits issued by the Commission— 

(A) for public safety radio services, including private internal radio services used by State and local governments 

and non-government entities and including emergency 

road services provided by not-for-profit organizations, 

that— 

(i) are used to protect the safety of life, health, or 

property; and 

(ii) are not made commercially available to the public; 

(B) for initial licenses or construction permits for digital 

television service given to existing terrestrial broadcast licensees to replace their analog television service licenses; 

or 

(C) for stations described in section 397(6) of this Act. 

(3) DESIGN OF SYSTEMS OF COMPETITIVE BIDDING.—For each 

class of licenses or permits that the Commission grants 

through the use of a competitive bidding system, the Commission shall, by regulation, establish a competitive bidding methodology. The Commission shall seek to design and test multiple 

alternative methodologies under appropriate circumstances. 

The Commission shall, directly or by contract, provide for the 

design and conduct (for purposes of testing) of competitive bidding using a contingent combinatorial bidding system that permits prospective bidders to bid on combinations or groups of licenses in a single bid and to enter multiple alternative bids 

within a single bidding round. In identifying classes of licenses 

and permits to be issued by competitive bidding, in specifying 

eligibility and other characteristics of such licenses and permits, and in designing the methodologies for use under this 


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subsection, the Commission shall include safeguards to protect 

the public interest in the use of the spectrum and shall seek 

to promote the purposes specified in section 1 of this Act and 

the following objectives: 

(A) the development and rapid deployment of new technologies, products, and services for the benefit of the public, including those residing in rural areas, without administrative or judicial delays; 

(B) promoting economic opportunity and competition and 

ensuring that new and innovative technologies are readily 

accessible to the American people by avoiding excessive 

concentration of licenses and by disseminating licenses 

among a wide variety of applicants, including small businesses, rural telephone companies, and businesses owned 

by members of minority groups and women; 

(C) recovery for the public of a portion of the value of the 

public spectrum resource made available for commercial 

use and avoidance of unjust enrichment through the methods employed to award uses of that resource; 

(D) efficient and intensive use of the electromagnetic 

spectrum; 

(E) ensure that, in the scheduling of any competitive bidding under this subsection, an adequate period is allowed— 

(i) before issuance of bidding rules, to permit notice 

and comment on proposed auction procedures; and 

(ii) after issuance of bidding rules, to ensure that interested parties have a sufficient time to develop business plans, assess market conditions, and evaluate the 

availability of equipment for the relevant services; and 

(F) for any auction of eligible frequencies described in 

section 113(g)(2) of the National Telecommunications and 

Information Administration Organization Act (47 U.S.C. 

923(g)(2)), the recovery of 110 percent of estimated relocation or sharing costs as provided to the Commission pursuant to section 113(g)(4) of such Act. 

(4) CONTENTS OF REGULATIONS.—In prescribing regulations 

pursuant to paragraph (3), the Commission shall— 

(A) consider alternative payment schedules and methods 

of calculation, including lump sums or guaranteed installment payments, with or without royalty payments, or 

other schedules or methods that promote the objectives described in paragraph (3)(B), and combinations of such 

schedules and methods; 

(B) include performance requirements, such as appropriate deadlines and penalties for performance failures, to 

ensure prompt delivery of service to rural areas, to prevent 

stockpiling or warehousing of spectrum by licensees or permittees, and to promote investment in and rapid deployment of new technologies and services; 

(C) consistent with the public interest, convenience, and 

necessity, the purposes of this Act, and the characteristics 

of the proposed service, prescribe area designations and 

bandwidth assignments that promote (i) an equitable distribution of licenses and services among geographic areas, 


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(ii) economic opportunity for a wide variety of applicants, 

including small businesses, rural telephone companies, 

and businesses owned by members of minority groups and 

women, and (iii) investment in and rapid deployment of 

new technologies and services; 

(D) ensure that small businesses, rural telephone companies, and businesses owned by members of minority groups 

and women are given the opportunity to participate in the 

provision of spectrum-based services, and, for such purposes, consider the use of tax certificates, bidding preferences, and other procedures; 

(E) require such transfer disclosures and antitrafficking 

restrictions and payment schedules as may be necessary to 

prevent unjust enrichment as a result of the methods employed to issue licenses and permits; and 

(F) prescribe methods by which a reasonable reserve 

price will be required, or a minimum bid will be established, to obtain any license or permit being assigned pursuant to the competitive bidding, unless the Commission 

determines that such a reserve price or minimum bid is 

not in the public interest. 

(5) BIDDER AND LICENSEE QUALIFICATION.—No person shall 

be permitted to participate in a system of competitive bidding 

pursuant to this subsection unless such bidder submits such 

information and assurances as the Commission may require to 

demonstrate that such bidder’s application is acceptable for filing. No license shall be granted to an applicant selected pursuant to this subsection unless the Commission determines that 

the applicant is qualified pursuant to subsection (a) and sections 308(b) and 310. Consistent with the objectives described 

in paragraph (3), the Commission shall, by regulation, prescribe expedited procedures consistent with the procedures authorized by subsection (i)(2) for the resolution of any substantial and material issues of fact concerning qualifications. 

(6) RULES OF CONSTRUCTION.—Nothing in this subsection, or 

in the use of competitive bidding, shall— 

(A) alter spectrum allocation criteria and procedures established by the other provisions of this Act; 

(B) limit or otherwise affect the requirements of subsection (h) of this section, section 301, 304, 307, 310, or 

706, or any other provision of this Act (other than subsections (d)(2) and (e) of this section); 

(C) diminish the authority of the Commission under the 

other provisions of this Act to regulate or reclaim spectrum 

licenses; 

(D) be construed to convey any rights, including any expectation of renewal of a license, that differ from the rights 

that apply to other licenses within the same service that 

were not issued pursuant to this subsection; 

(E) be construed to relieve the Commission of the obligation in the public interest to continue to use engineering 

solutions, negotiation, threshold qualifications, service regulations, and other means in order to avoid mutual exclusivity in application and licensing proceedings; 


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(F) be construed to prohibit the Commission from 

issuing nationwide, regional, or local licenses or permits; 

(G) be construed to prevent the Commission from awarding licenses to those persons who make significant contributions to the development of a new telecommunications 

service or technology; or 

(H) be construed to relieve any applicant for a license or 

permit of the obligation to pay charges imposed pursuant 

to section 8 of this Act. 

(7) CONSIDERATION OF REVENUES IN PUBLIC INTEREST DETERMINATIONS.— 

(A) CONSIDERATION PROHIBITED.—In making a decision 

pursuant to section 303(c) to assign a band of frequencies 

to a use for which licenses or permits will be issued pursuant to this subsection, and in prescribing regulations pursuant to paragraph (4)(C) of this subsection, the Commission may not base a finding of public interest, convenience, 

and necessity on the expectation of Federal revenues from 

the use of a system of competitive bidding under this subsection. 

(B) CONSIDERATION LIMITED.—In prescribing regulations 

pursuant to paragraph (4)(A) of this subsection, the Commission may not base a finding of public interest, convenience, and necessity solely or predominantly on the expectation of Federal revenues from the use of a system of 

competitive bidding under this subsection. 

(C) CONSIDERATION OF DEMAND FOR SPECTRUM NOT AFFECTED.—Nothing in this paragraph shall be construed to 

prevent the Commission from continuing to consider consumer demand for spectrum-based services. 

(8) TREATMENT OF REVENUES.— 

(A) GENERAL RULE.—Except as provided in subparagraphs (B), (D), (E), (F), and (G), all proceeds from the use 

of a competitive bidding system under this subsection shall 

be deposited in the Treasury in accordance with chapter 33 

of title 31, United States Code. 

(B) RETENTION OF REVENUES.—Notwithstanding subparagraph (A), the salaries and expenses account of the 

Commission shall retain as an offsetting collection such 

sums as may be necessary from such proceeds for the costs 

of developing and implementing the program required by 

this subsection. Such offsetting collections shall be available for obligation subject to the terms and conditions of 

the receiving appropriations account, and shall be deposited in such accounts on a quarterly basis. Such offsetting 

collections are authorized to remain available until expended. øNo sums may be retained under this subparagraph during any fiscal year beginning after September 

30, 1998, if the annual report of the Commission under 

section 4(k) for the second preceding fiscal year fails to include in the itemized statement required by paragraph (3) 

of such section a statement of each expenditure made for 

purposes of conducting competitive bidding under this subsection during such second preceding fiscal year.¿ 


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(C) DEPOSIT AND USE OF AUCTION ESCROW ACCOUNTS.— Any deposits the Commission may require for the qualification of any person to bid in a system of competitive bidding pursuant to this subsection shall be deposited in an 

interest bearing account at a financial institution designated for purposes of this subsection by the Commission 

(after consultation with the Secretary of the Treasury). 

Within 45 days following the conclusion of the competitive 

bidding— 

(i) the deposits of successful bidders shall be paid to 

the Treasury, except as otherwise provided in subparagraphs (D)(ii), (E)(ii), (F), and (G); 

(ii) the deposits of unsuccessful bidders shall be returned to such bidders; and 

(iii) the interest accrued to the account shall be deposited in the general fund of the Treasury, where 

such amount shall be dedicated for the sole purpose of 

deficit reduction. 

(D) PROCEEDS FROM REALLOCATED FEDERAL SPECTRUM.— 

(i) IN GENERAL.—Except as provided in clause (ii), 

cash proceeds attributable to the auction of any eligible frequencies described in section 113(g)(2) of the 

National Telecommunications and Information Administration Organization Act (47 U.S.C. 923(g)(2)) shall 

be deposited in the Spectrum Relocation Fund established under section 118 of such Act, and shall be 

available in accordance with that section. 

(ii) CERTAIN OTHER PROCEEDS.—Notwithstanding 

subparagraph (A) and except as provided in subparagraph (B), in the case of proceeds (including deposits 

and upfront payments from successful bidders) attributable to the auction of eligible frequencies described 

in paragraph (2) of section 113(g) of the National Telecommunications and Information Administration Organization Act that are required to be auctioned by 

section 6401(b)(1)(B) of the Middle Class Tax Relief 

and Job Creation Act of 2012, such portion of such 

proceeds as is necessary to cover the relocation or 

sharing costs (as defined in paragraph (3) of such section 113(g)) of Federal entities relocated from such eligible frequencies shall be deposited in the Spectrum 

Relocation Fund. The remainder of such proceeds shall 

be deposited in the Public Safety Trust Fund established by section 6413(a)(1) of the Middle Class Tax 

Relief and Job Creation Act of 2012. 

(E) TRANSFER OF RECEIPTS.— 

(i) ESTABLISHMENT OF FUND.—There is established 

in the Treasury of the United States a fund to be 

known as the Digital Television Transition and Public 

Safety Fund. 

(ii) PROCEEDS FOR FUNDS.—Notwithstanding subparagraph (A), the proceeds (including deposits and 

upfront payments from successful bidders) from the 

use of a competitive bidding system under this subsection with respect to recovered analog spectrum 


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shall be deposited in the Digital Television Transition 

and Public Safety Fund. 

(iii) TRANSFER OF AMOUNT TO TREASURY.—On September 30, 2009, the Secretary shall transfer 

$7,363,000,000 from the Digital Television Transition 

and Public Safety Fund to the general fund of the 

Treasury. 

(iv) RECOVERED ANALOG SPECTRUM.—For purposes of 

clause (i), the term ‘‘recovered analog spectrum’’ has 

the meaning provided in paragraph (15)(C)(vi). 

(F) CERTAIN PROCEEDS DESIGNATED FOR PUBLIC SAFETY

TRUST FUND.—Notwithstanding subparagraph (A) and except as provided in subparagraphs (B) and (D)(ii), the proceeds (including deposits and upfront payments from successful bidders) from the use of a system of competitive 

bidding under this subsection pursuant to section 

6401(b)(1)(B) of the Middle Class Tax Relief and Job Creation Act of 2012 shall be deposited in the Public Safety 

Trust Fund established by section 6413(a)(1) of such Act. 

(G) INCENTIVE AUCTIONS.— 

(i) IN GENERAL.—Notwithstanding subparagraph (A) 

and except as provided in subparagraph (B), the Commission may encourage a licensee to relinquish voluntarily some or all of its licensed spectrum usage rights 

in order to permit the assignment of new initial licenses subject to flexible-use service rules by sharing 

with such licensee a portion, based on the value of the 

relinquished rights as determined in the reverse auction required by clause (ii)(I), of the proceeds (including deposits and upfront payments from successful 

bidders) from the use of a competitive bidding system 

under this subsection. 

(ii) LIMITATIONS.—The Commission may not enter 

into an agreement for a licensee to relinquish spectrum usage rights in exchange for a share of auction 

proceeds under clause (i) unless— 

(I) the Commission conducts a reverse auction 

to determine the amount of compensation that licensees would accept in return for voluntarily relinquishing spectrum usage rights; and 

(II) at least two competing licensees participate 

in the reverse auction. 

(iii) TREATMENT OF REVENUES.—Notwithstanding 

subparagraph (A) and except as provided in subparagraph (B), the proceeds (including deposits and upfront payments from successful bidders) from any auction, prior to the end of fiscal year 2022, of spectrum 

usage rights made available under clause (i) that are 

not shared with licensees under such clause shall be 

deposited as follows: 

(I) $1,750,000,000 of the proceeds from the incentive auction of broadcast television spectrum 

required by section 6403 of the Middle Class Tax 

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posited in the TV Broadcaster Relocation Fund established by subsection (d)(1) of such section. 

(II) All other proceeds shall be deposited— 

(aa) prior to the end of fiscal year 2022, in 

the Public Safety Trust Fund established by 

section 6413(a)(1) of such Act; and 

(bb) after the end of fiscal year 2022, in the 

general fund of the Treasury, where such proceeds shall be dedicated for the sole purpose 

of deficit reduction. 

(iv) CONGRESSIONAL NOTIFICATION.—At least 3 

months before any incentive auction conducted under 

this subparagraph, the Chairman of the Commission, 

in consultation with the Director of the Office of Management and Budget, shall notify the appropriate committees of Congress of the methodology for calculating 

the amounts that will be shared with licensees under 

clause (i). 

(v) DEFINITION.—In this subparagraph, the term 

‘‘appropriate committees of Congress’’ means— 

(I) the Committee on Commerce, Science, and 

Transportation of the Senate; 

(II) the Committee on Appropriations of the 

Senate; 

(III) the Committee on Energy and Commerce of 

the House of Representatives; and 

(IV) the Committee on Appropriations of the 

House of Representatives. 

(9) USE OF FORMER GOVERNMENT SPECTRUM.—The Commission shall, not later than 5 years after the date of enactment 

of this subsection, issue licenses and permits pursuant to this 

subsection for the use of bands of frequencies that— 

(A) in the aggregate span not less than 10 megahertz; 

and 

(B) have been reassigned from Government use pursuant 

to part B of the National Telecommunications and Information Administration Organization Act. 

(10) AUTHORITY CONTINGENT ON AVAILABILITY OF ADDITIONAL

SPECTRUM.— (A) INITIAL CONDITIONS.—The Commission’s authority to 

issue licenses or permits under this subsection shall not 

take effect unless— 

(i) the Secretary of Commerce has submitted to the 

Commission the report required by section 113(d)(1) of 

the National Telecommunications and Information Administration Organization Act; 

(ii) such report recommends for immediate reallocation bands of frequencies that, in the aggregate, span 

not less than 50 megahertz; 

(iii) such bands of frequencies meet the criteria required by section 113(a) of such Act; and 

(iv) the Commission has completed the rulemaking 

required by section 332(c)(1)(D) of this Act. 

(B) SUBSEQUENT CONDITIONS.—The Commission’s authority to issue licenses or permits under this subsection 


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on and after 2 years after the date of the enactment of this 

subsection shall cease to be effective if— 

(i) the Secretary of Commerce has failed to submit 

the report required by section 113(a) of the National 

Telecommunications and Information Administration 

Organization Act; 

(ii) the President has failed to withdraw and limit 

assignments of frequencies as required by paragraphs 

(1) and (2) of section 114(a) of such Act; 

(iii) the Commission has failed to issue the regulations required by section 115(a) of such Act; 

(iv) the Commission has failed to complete and submit to Congress, not later than 18 months after the 

date of enactment of this subsection, a study of current and future spectrum needs of State and local government public safety agencies through the year 2010, 

and a specific plan to ensure that adequate frequencies are made available to public safety licensees; 

or 

(v) the Commission has failed under section 

332(c)(3) to grant or deny within the time required by 

such section any petition that a State has filed within 

90 days after the date of enactment of this subsection; 

until such failure has been corrected. 

(11) TERMINATION.—The authority of the Commission to 

grant a license or permit under this subsection shall expire 

September 30, 2022. 

ø(12) EVALUATION.—Not later than September 30, 1997, the 

Commission shall conduct a public inquiry and submit to the 

Congress a report— 

ø(A) containing a statement of the revenues obtained, 

and a projection of the future revenues, from the use of 

competitive bidding systems under this subsection; 

ø(B) describing the methodologies established by the 

Commission pursuant to paragraphs (3) and (4); 

ø(C) comparing the relative advantages and disadvantages of such methodologies in terms of attaining the objectives described in such paragraphs; 

ø(D) evaluating whether and to what extent— 

ø(i) competitive bidding significantly improved the 

efficiency and effectiveness of the process for granting 

radio spectrum licenses; 

ø(ii) competitive bidding facilitated the introduction 

of new spectrum-based technologies and the entry of 

new companies into the telecommunications market; 

ø(iii) competitive bidding methodologies have secured prompt delivery of service to rural areas and 

have adequately addressed the needs of rural spectrum users; and 

ø(iv) small businesses, rural telephone companies, 

and businesses owned by members of minority groups 

and women were able to participate successfully in the 

competitive bidding process; and 

ø(E) recommending any statutory changes that are needed to improve the competitive bidding process.¿ 


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(13) RECOVERY OF VALUE OF PUBLIC SPECTRUM IN CONNEC- TION WITH PIONEER PREFERENCES.— (A) IN GENERAL.—Notwithstanding paragraph (6)(G), the 

Commission shall not award licenses pursuant to a preferential treatment accorded by the Commission to persons 

who make significant contributions to the development of 

a new telecommunications service or technology, except in 

accordance with the requirements of this paragraph. 

(B) RECOVERY OF VALUE.—The Commission shall recover 

for the public a portion of the value of the public spectrum 

resource made available to such person by requiring such 

person, as a condition for receipt of the license, to agree to 

pay a sum determined by— 

(i) identifying the winning bids for the licenses that 

the Commission determines are most reasonably comparable in terms of bandwidth, scope of service area, 

usage restrictions, and other technical characteristics 

to the license awarded to such person, and excluding 

licenses that the Commission determines are subject 

to bidding anomalies due to the award of preferential 

treatment; 

(ii) dividing each such winning bid by the population 

of its service area (hereinafter referred to as the per 

capita bid amount); 

(iii) computing the average of the per capita bid 

amounts for the licenses identified under clause (i); 

(iv) reducing such average amount by 15 percent; 

and 

(v) multiplying the amount determined under clause 

(iv) by the population of the service area of the license 

obtained by such person. 

(C) INSTALLMENTS PERMITTED.—The Commission shall 

require such person to pay the sum required by subparagraph (B) in a lump sum or in guaranteed installment payments, with or without royalty payments, over a period of 

not more than 5 years. 

(D) RULEMAKING ON PIONEER PREFERENCES.—Except 

with respect to pending applications described in clause 

(iv) of this subparagraph, the Commission shall prescribe 

regulations specifying the procedures and criteria by which 

the Commission will evaluate applications for preferential 

treatment in its licensing processes (by precluding the filing of mutually exclusive applications) for persons who 

make significant contributions to the development of a new 

service or to the development of new technologies that substantially enhance an existing service. Such regulations 

shall— 

(i) specify the procedures and criteria by which the 

significance of such contributions will be determined, 

after an opportunity for review and verification by experts in the radio sciences drawn from among persons 

who are not employees of the Commission or by any 

applicant for such preferential treatment; 

(ii) include such other procedures as may be necessary to prevent unjust enrichment by ensuring that 


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the value of any such contribution justifies any reduction in the amounts paid for comparable licenses 

under this subsection; 

(iii) be prescribed not later than 6 months after the 

date of enactment of this paragraph; 

(iv) not apply to applications that have been accepted for filing on or before September 1, 1994; and 

(v) cease to be effective on the date of the expiration 

of the Commission’s authority under subparagraph 

(F). 

(E) IMPLEMENTATION WITH RESPECT TO PENDING APPLICATIONS.—In applying this paragraph to any broadband licenses in the personal communications service awarded 

pursuant to the preferential treatment accorded by the 

Federal Communications Commission in the Third Report 

and Order in General Docket 90–314 (FCC 93–550, released February 3, 1994)— 

(i) the Commission shall not reconsider the award of 

preferences in such Third Report and Order, and the 

Commission shall not delay the grant of licenses based 

on such awards more than 15 days following the date 

of enactment of this paragraph, and the award of such 

preferences and licenses shall not be subject to administrative or judicial review; 

(ii) the Commission shall not alter the bandwidth or 

service areas designated for such licenses in such 

Third Report and Order; 

(iii) except as provided in clause (v), the Commission 

shall use, as the most reasonably comparable licenses 

for purposes of subparagraph (B)(i), the broadband licenses in the personal communications service for 

blocks A and B for the 20 largest markets (ranked by 

population) in which no applicant has obtained preferential treatment; 

(iv) for purposes of subparagraph (C), the Commission shall permit guaranteed installment payments 

over a period of 5 years, subject to— 

(I) the payment only of interest on unpaid balances during the first 2 years, commencing not 

later than 30 days after the award of the license 

(including any preferential treatment used in 

making such award) is final and no longer subject 

to administrative or judicial review, except that no 

such payment shall be required prior to the date 

of completion of the auction of the comparable licenses described in clause (iii); and 

(II) payment of the unpaid balance and interest 

thereon after the end of such 2 years in accordance with the regulations prescribed by the Commission; and 

(v) the Commission shall recover with respect to 

broadband licenses in the personal communications 

service an amount under this paragraph that is equal 

to not less than $400,000,000, and if such amount is 

less than $400,000,000, the Commission shall recover 


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an amount equal to $400,000,000 by allocating such 

amount among the holders of such licenses based on 

the population of the license areas held by each licensee. 

The Commission shall not include in any amounts required to be collected under clause (v) the interest on unpaid balances required to be collected under clause (iv). 

(F) EXPIRATION.—The authority of the Commission to 

provide preferential treatment in licensing procedures (by 

precluding the filing of mutually exclusive applications) to 

persons who make significant contributions to the development of a new service or to the development of new technologies that substantially enhance an existing service 

shall expire on the date of enactment of the Balanced 

Budget Act of 1997. 

(G) EFFECTIVE DATE.—This paragraph shall be effective 

on the date of its enactment and apply to any licenses 

issued on or after August 1, 1994, by the Federal Communications Commission pursuant to any licensing procedure 

that provides preferential treatment (by precluding the filing of mutually exclusive applications) to persons who 

make significant contributions to the development of a new 

service or to the development of new technologies that substantially enhance an existing service. 

(14) AUCTION OF RECAPTURED BROADCAST TELEVISION SPECTRUM.— 

(A) LIMITATIONS ON TERMS OF TERRESTRIAL TELEVISION

BROADCAST LICENSES.—A full-power television broadcast license that authorizes analog television service may not be 

renewed to authorize such service for a period that extends 

beyond June 12, 2009. 

(B) SPECTRUM REVERSION AND RESALE.— 

(i) The Commission shall— 

(I) ensure that, as licenses for analog television 

service expire pursuant to subparagraph (A), each 

licensee shall cease using electromagnetic spectrum assigned to such service according to the 

Commission’s direction; and 

(II) reclaim and organize the electromagnetic 

spectrum in a manner consistent with the objectives described in paragraph (3) of this subsection. 

(ii) Licensees for new services occupying spectrum 

reclaimed pursuant to clause (i) shall be assigned in 

accordance with this subsection. 

(C) CERTAIN LIMITATIONS ON QUALIFIED BIDDERS PROHIBITED.—In prescribing any regulations relating to the qualification of bidders for spectrum reclaimed pursuant to subparagraph (B)(i), the Commission, for any license that may 

be used for any digital television service where the grade 

A contour of the station is projected to encompass the entirety of a city with a population in excess of 400,000 (as 

determined using the 1990 decennial census), shall not— 

(i) preclude any party from being a qualified bidder 

for such spectrum on the basis of— 


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(I) the Commission’s duopoly rule (47 C.F.R. 

73.3555(b)); or 

(II) the Commission’s newspaper cross-ownership rule (47 C.F.R. 73.3555(d)); or 

(ii) apply either such rule to preclude such a party 

that is a winning bidder in a competitive bidding for 

such spectrum from using such spectrum for digital 

television service. 

(15) COMMISSION TO DETERMINE TIMING OF AUCTIONS.— (A) COMMISSION AUTHORITY.—Subject to the provisions 

of this subsection (including paragraph (11)), but notwithstanding any other provision of law, the Commission shall 

determine the timing of and deadlines for the conduct of 

competitive bidding under this subsection, including the 

timing of and deadlines for qualifying for bidding; conducting auctions; collecting, depositing, and reporting revenues; and completing licensing processes and assigning licenses. 

(B) TERMINATION OF PORTIONS OF AUCTIONS 31 AND 44.— 

Except as provided in subparagraph (C), the Commission 

shall not commence or conduct auctions 31 and 44 on June 

19, 2002, as specified in the public notices of March 19, 

2002, and March 20, 2002 (DA 02–659 and DA 02–563). 

(C) EXCEPTION.— (i) BLOCKS EXCEPTED.—Subparagraph (B) shall not 

apply to the auction of— 

(I) the C-block of licenses on the bands of frequencies located at 710–716 megahertz, and 740– 

746 megahertz; or 

(II) the D-block of licenses on the bands of frequencies located at 716–722 megahertz. 

(ii) ELIGIBLE BIDDERS.—The entities that shall be eligible to bid in the auction of the C-block and D-block 

licenses described in clause (i) shall be those entities 

that were qualified entities, and that submitted applications to participate in auction 44, by May 8, 2002, 

as part of the original auction 44 short form filing 

deadline. 

(iii) AUCTION DEADLINES FOR EXCEPTED BLOCKS.— Notwithstanding subparagraph (B), the auction of the 

C-block and D-block licenses described in clause (i) 

shall be commenced no earlier than August 19, 2002, 

and no later than September 19, 2002, and the proceeds of such auction shall be deposited in accordance 

with paragraph (8) not later than December 31, 2002. 

ø(iv) REPORT.—Within one year after the date of enactment of this paragraph, the Commission shall submit a report to Congress— 

ø(I) specifying when the Commission intends to 

reschedule auctions 31 and 44 (other than the 

blocks excepted by clause (i)); and 

ø(II) describing the progress made by the Commission in the digital television transition and in 

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ices that warrants the scheduling of such auctions.¿ 

(v) ADDITIONAL DEADLINES FOR RECOVERED ANALOG

SPECTRUM.—Notwithstanding subparagraph (B), the 

Commission shall conduct the auction of the licenses 

for recovered analog spectrum by commencing the bidding not later than January 28, 2008, and shall deposit the proceeds of such auction in accordance with 

paragraph (8)(E)(ii) not later than June 30, 2008. 

(vi) RECOVERED ANALOG SPECTRUM.—For purposes of 

clause (v), the term ‘‘recovered analog spectrum’’ 

means the spectrum between channels 52 and 69, inclusive (between frequencies 698 and 806 megahertz, 

inclusive) reclaimed from analog television service 

broadcasting under paragraph (14), other than— 

(I) the spectrum required by section 337 to be 

made available for public safety services; and 

(II) the spectrum auctioned prior to the date of 

enactment of the Digital Television Transition and 

Public Safety Act of 2005. 

(D) RETURN OF PAYMENTS.—Within one month after the 

date of enactment of this paragraph, the Commission shall 

return to the bidders for licenses in the A-block, B-block, 

and E-block of auction 44 the full amount of all upfront 

payments made by such bidders for such licenses. 

(16) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE FRE- QUENCIES.— (A) SPECIAL REGULATIONS.—The Commission shall revise 

the regulations prescribed under paragraph (4)(F) of this 

subsection to prescribe methods by which the total cash 

proceeds from any auction of eligible frequencies described 

in section 113(g)(2) of the National Telecommunications 

and Information Administration Organization Act (47 

U.S.C. 923(g)(2)) shall at least equal 110 percent of the 

total estimated relocation or sharing costs provided to the 

Commission pursuant to section 113(g)(4) of such Act. 

(B) CONCLUSION OF AUCTIONS CONTINGENT ON MINIMUM

PROCEEDS.—The Commission shall not conclude any auction of eligible frequencies described in section 113(g)(2) of 

such Act if the total cash proceeds attributable to such 

spectrum are less than 110 percent of the total estimated 

relocation or sharing costs provided to the Commission 

pursuant to section 113(g)(4) of such Act. If the Commission is unable to conclude an auction for the foregoing reason, the Commission shall cancel the auction, return within 45 days after the auction cancellation date any deposits 

from participating bidders held in escrow, and absolve 

such bidders from any obligation to the United States to 

bid in any subsequent reauction of such spectrum. 

(C) AUTHORITY TO ISSUE PRIOR TO DEAUTHORIZATION.—In 

any auction conducted under the regulations required by 

subparagraph (A), the Commission may grant a license assigned for the use of eligible frequencies prior to the termination of an eligible Federal entity’s authorization. However, the Commission shall condition such license by reVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00053 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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quiring that the licensee cannot cause harmful interference to such Federal entity until such entity’s authorization has been terminated by the National Telecommunications and Information Administration. 

(17) CERTAIN CONDITIONS ON AUCTION PARTICIPATION PROHIBITED.— 

(A) IN GENERAL.—Notwithstanding any other provision 

of law, the Commission may not prevent a person from 

participating in a system of competitive bidding under this 

subsection if such person— 

(i) complies with all the auction procedures and 

other requirements to protect the auction process established by the Commission; and 

(ii) either— 

(I) meets the technical, financial, character, and 

citizenship qualifications that the Commission 

may require under section 303(l)(1), 308(b), or 310 

to hold a license; or 

(II) would meet such license qualifications by 

means approved by the Commission prior to the 

grant of the license. 

(B) CLARIFICATION OF AUTHORITY.—Nothing in subparagraph (A) affects any authority the Commission has to 

adopt and enforce rules of general applicability, including 

rules concerning spectrum aggregation that promote competition. 

(k) BROADCAST STATION RENEWAL PROCEDURES.— 

(1) STANDARDS FOR RENEWAL.—If the licensee of a broadcast 

station submits an application to the Commission for renewal 

of such license, the Commission shall grant the application if 

it finds, with respect to that station, during the preceding term 

of its license— 

(A) the station has served the public interest, convenience, and necessity; 

(B) there have been no serious violations by the licensee 

of this Act or the rules and regulations of the Commission; 

and 

(C) there have been no other violations by the licensee 

of this Act or the rules and regulations of the Commission 

which, taken together, would constitute a pattern of abuse. 

(2) CONSEQUENCE OF FAILURE TO MEET STANDARD.—If any licensee of a broadcast station fails to meet the requirements of 

this subsection, the Commission may deny the application for 

renewal in accordance with paragraph (3), or grant such application on terms and conditions as are appropriate, including 

renewal for a term less than the maximum otherwise permitted. 

(3) STANDARDS FOR DENIAL.—If the Commission determines, 

after notice and opportunity for a hearing as provided in subsection (e), that a licensee has failed to meet the requirements 

specified in paragraph (1) and that no mitigating factors justify 

the imposition of lesser sanctions, the Commission shall— 

(A) issue an order denying the renewal application filed 

by such licensee under section 308; and 


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(B) only thereafter accept and consider such applications 

for a construction permit as may be filed under section 308 

specifying the channel or broadcasting facilities of the 

former licensee. 

(4) COMPETITOR CONSIDERATION PROHIBITED.—In making the 

determinations specified in paragraph (1) or (2), the Commission shall not consider whether the public interest, convenience, and necessity might be served by the grant of a license 

to a person other than the renewal applicant. 

(l) APPLICABILITY OF COMPETITIVE BIDDING TO PENDING COMPARATIVE LICENSING CASES.—With respect to competing applications for initial licenses or construction permits for commercial 

radio or television stations that were filed with the Commission before July 1, 1997, the Commission shall— 

(1) have the authority to conduct a competitive bidding proceeding pursuant to subsection (j) to assign such license or permit; 

(2) treat the persons filing such applications as the only persons eligible to be qualified bidders for purposes of such proceeding; and 

(3) waive any provisions of its regulations necessary to permit such persons to enter an agreement to procure the removal 

of a conflict between their applications during the 180-day period beginning on the date of enactment of the Balanced Budget Act of 1997. 

* * * * * * * 

SEC. 331. VERY HIGH FREQUENCY STATIONS AND AM RADIO STATIONS. 

(a) VERY HIGH FREQUENCY STATIONS.—It shall be the policy of 

the Federal Communications Commission to allocate channels for 

very high frequency commercial television broadcasting in a manner which ensures that not less than one such channel shall be allocated to each State, if technically feasible. In any case in which 

licensee of a very high frequency commercial television broadcast 

station notifies the Commission to the effect that such licensee will 

agree to the reallocation of its channel to a community within a 

State in which there is allocated no very high frequency commercial television broadcast channel at the time such notification, the 

Commission shall, not withstanding any other provision of law, 

order such reallocation and issue a license to such licensee for that 

purpose pursuant to such notification for a term of not to exceed 

5 years as provided in section 307(d) of the Communications Act of 

1934. 

(b) AM RADIO STATIONS.—It shall be the policy of the Commission, in any case in which the licensee of an existing AM daytimeonly station located in a community with a population of more than 

100,000 persons that lacks a local full-time aural station licensed 

to that community and that is located within a Class I station primary service area notifies the Commission that such licensee seeks 

to provide full-time service, to ensure that such a licensee is able 

to place a principal community contour signal over its entire community of license 24 hours a day, if technically feasible. øThe Commission shall report to the appropriate committees of Congress 


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within 30 days after the date of enactment of this Act on how it 

intends to meet this policy goal.¿ 

SEC. 332. MOBILE SERVICES. 

(a) In taking actions to manage the spectrum to be made available for use by the private mobile services, the Commission shall 

consider, consistent with section 1 of this Act, whether such actions 

will— 

(1) promote the safety of life and property; 

(2) improve the efficiency of spectrum use and reduce the 

regulatory burden upon spectrum users, based upon sound engineering principles, user operational requirements, and marketplace demands; 

(3) encourage competition and provide services to the largest 

feasible number of users; or 

(4) increase interservice sharing opportunities between private mobile services and other services. 

(b)(1) The Commission, in coordinating the assignment of frequencies to stations in the private mobile services and in the fixed 

services (as defined by the Commission by rule), shall have authority to utilize assistance furnished by advisory coordinating committees consisting of individuals who are not officers or employees of 

the Federal Government. 

(2) The authority of the Commission established in this subsection shall not be subject to or affected by the provisions of part 

III of title 5, United States Code, or section 3679(b) of the Revised 

Statutes (31 U.S.C. 665(b)). 

(3) Any person who provides assistance to the Commission under 

this subsection shall not be considered, by reason of having provided such assistance, a Federal employee. 

(4) Any advisory coordinating committee which furnishes assistance to the Commission under this subsection shall not be subject 

to the provisions of the Federal Advisory Committee Act. 

(c) REGULATORY TREATMENT OF MOBILE SERVICES.— (1) COMMON CARRIER TREATMENT OF COMMERCIAL MOBILE

SERVICES.—(A) A person engaged in the provision of a service 

that is a commercial mobile service shall, insofar as such person is so engaged, be treated as a common carrier for purposes 

of this Act, except for such provisions of title II as the Commission may specify by regulation as inapplicable to that service 

or person. In prescribing or amending any such regulation, the 

Commission may not specify any provision of section 201, 202, 

or 208, and may specify any other provision only if the Commission determines that— 

(i) enforcement of such provision is not necessary in 

order to ensure that the charges, practices, classifications, 

or regulations for or in connection with that service are 

just and reasonable and are not unjustly or unreasonably 

discriminatory; 

(ii) enforcement of such provision is not necessary for the 

protection of consumers; and 

(iii) specifying such provision is consistent with the public interest. 

(B) Upon reasonable request of any person providing commercial mobile service, the Commission shall order a common 

carrier to establish physical connections with such service purVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00056 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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suant to the provisions of section 201 of this Act. Except to the 

extent that the Commission is required to respond to such a 

request, this subparagraph shall not be construed as a limitation or expansion of the Commission’s authority to order interconnection pursuant to this Act. 

(C) øThe Commission shall review competitive market conditions with respect to commercial mobile services and shall include in its annual report an analysis of those conditions. Such 

analysis shall include an identification of the number of competitors in various commercial mobile services, an analysis of 

whether or not there is effective competition, an analysis of 

whether any of such competitors have a dominant share of the 

market for such services, and a statement of whether additional providers or classes of providers in those services would 

be likely to enhance competition.¿ As a part of making a determination with respect to the public interest under subparagraph (A)(iii), the Commission shall consider whether the proposed regulation (or amendment thereof) will promote competitive market conditions, including the extent to which such regulation (or amendment) will enhance competition among providers of commercial mobile services. If the Commission determines that such regulation (or amendment) will promote competition among providers of commercial mobile services, such 

determination may be the basis for a Commission finding that 

such regulation (or amendment) is in the public interest. 

(D) The Commission shall, not later than 180 days after the 

date of enactment of this subparagraph, complete a rulemaking 

required to implement this paragraph with respect to the licensing of personal communications services, including making 

any determinations required by subparagraph (C). 

(2) NON-COMMON CARRIER TREATMENT OF PRIVATE MOBILE

SERVICES.—A person engaged in the provision of a service that 

is a private mobile service shall not, insofar as such person is 

so engaged, be treated as a common carrier for any purpose 

under this Act. A common carrier (other than a person that 

was treated as a provider of a private land mobile service prior 

to the enactment of the Omnibus Budget Reconciliation Act of 

1993) shall not provide any dispatch service on any frequency 

allocated for common carrier service, except to the extent such 

dispatch service is provided on stations licensed in the domestic public land mobile radio service before January 1, 1982. The 

Commission may by regulation terminate, in whole or in part, 

the prohibition contained in the preceding sentence if the Commission determines that such termination will serve the public 

interest. 

(3) STATE PREEMPTION.—(A) Notwithstanding sections 2(b) 

and 221(b), no State or local government shall have any authority to regulate the entry of or the rates charged by any 

commercial mobile service or any private mobile service, except 

that this paragraph shall not prohibit a State from regulating 

the other terms and conditions of commercial mobile services. 

Nothing in this subparagraph shall exempt providers of commercial mobile services (where such services are a substitute 

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ments imposed by a State commission on all providers of telecommunications services necessary to ensure the universal 

availability of telecommunications service at affordable rates. 

Notwithstanding the first sentence of this subparagraph, a 

State may petition the Commission for authority to regulate 

the rates for any commercial mobile service and the Commission shall grant such petition if such State demonstrates 

that— 

(i) market conditions with respect to such services fail to 

protect subscribers adequately from unjust and unreasonable rates or rates that are unjustly or unreasonably discriminatory; or 

(ii) such market conditions exist and such service is a replacement for land line telephone exchange service for a 

substantial portion of the telephone land line exchange 

service within such State. 

The Commission shall provide reasonable opportunity for public comment in response to such petition, and shall, within 9 

months after the date of its submission, grant or deny such petition. If the Commission grants such petition, the Commission 

shall authorize the State to exercise under State law such authority over rates, for such periods of time, as the Commission 

deems necessary to ensure that such rates are just and reasonable and not unjustly or unreasonably discriminatory. 

(B) If a State has in effect on June 1, 1993, any regulation 

concerning the rates for any commercial mobile service offered 

in such State on such date, such State may, no later than 1 

year after the date of enactment of the Omnibus Budget Reconciliation Act of 1993, petition the Commission requesting 

that the State be authorized to continue exercising authority 

over such rates. If a State files such a petition, the State’s existing regulation shall, notwithstanding subparagraph (A), remain in effect until the Commission completes all action (including any reconsideration) on such petition. The Commission 

shall review such petition in accordance with the procedures 

established in such subparagraph, shall complete all action (including any reconsideration) within 12 months after such petition is filed, and shall grant such petition if the State satisfies 

the showing required under subparagraph (A)(i) or (A)(ii). If 

the Commission grants such petition, the Commission shall authorize the State to exercise under State law such authority 

over rates, for such period of time, as the Commission deems 

necessary to ensure that such rates are just and reasonable 

and not unjustly or unreasonably discriminatory. After a reasonable period of time, as determined by the Commission, has 

elapsed from the issuance of an order under subparagraph (A) 

or this subparagraph, any interested party may petition the 

Commission for an order that the exercise of authority by a 

State pursuant to such subparagraph is no longer necessary to 

ensure that the rates for commercial mobile services are just 

and reasonable and not unjustly or unreasonably discriminatory. The Commission shall provide reasonable opportunity for 

public comment in response to such petition, and shall, within 

9 months after the date of its submission, grant or deny such 

petition in whole or in part. 


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(4) REGULATORY TREATMENT OF COMMUNICATIONS SATELLITE

CORPORATION.—Nothing in this subsection shall be construed 

to alter or affect the regulatory treatment required by title IV 

of the Communications Satellite Act of 1962 of the corporation 

authorized by title III of such Act. 

(5) SPACE SEGMENT CAPACITY.—Nothing in this section shall 

prohibit the Commission from continuing to determine whether 

the provision of space segment capacity by satellite systems to 

providers of commercial mobile services shall be treated as 

common carriage. 

(6) FOREIGN OWNERSHIP.—The Commission, upon a petition 

for waiver filed within 6 months after the date of enactment 

of the Omnibus Budget Reconciliation Act of 1993, may waive 

the application of section 310(b) to any foreign ownership that 

lawfully existed before May 24, 1993, of any provider of a private land mobile service that will be treated as a common carrier as a result of the enactment of the Omnibus Budget Reconciliation Act of 1993, but only upon the following conditions: 

(A) The extent of foreign ownership interest shall not be 

increased above the extent which existed on May 24, 1993. 

(B) Such waiver shall not permit the subsequent transfer of ownership to any other person in violation of section 

310(b). 

(7) PRESERVATION OF LOCAL ZONING AUTHORITY.— (A) GENERAL AUTHORITY.—Except as provided in this 

paragraph, nothing in this Act shall limit or affect the authority of a State or local government or instrumentality 

thereof over decisions regarding the placement, construction, and modification of personal wireless service facilities. 

(B) LIMITATIONS.— (i) The regulation of the placement, construction, 

and modification of personal wireless service facilities 

by any State or local government or instrumentality 

thereof— 

(I) shall not unreasonably discriminate among 

providers of functionally equivalent services; and 

(II) shall not prohibit or have the effect of prohibiting the provision of personal wireless services. 

(ii) A State or local government or instrumentality 

thereof shall act on any request for authorization to 

place, construct, or modify personal wireless service 

facilities within a reasonable period of time after the 

request is duly filed with such government or instrumentality, taking into account the nature and scope of 

such request. 

(iii) Any decision by a State or local government or 

instrumentality thereof to deny a request to place, 

construct, or modify personal wireless service facilities 

shall be in writing and supported by substantial evidence contained in a written record. 

(iv) No State or local government or instrumentality 

thereof may regulate the placement, construction, and 

modification of personal wireless service facilities on 


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the basis of the environmental effects of radio frequency emissions to the extent that such facilities 

comply with the Commission’s regulations concerning 

such emissions. 

(v) Any person adversely affected by any final action 

or failure to act by a State or local government or any 

instrumentality thereof that is inconsistent with this 

subparagraph may, within 30 days after such action or 

failure to act, commence an action in any court of competent jurisdiction. The court shall hear and decide 

such action on an expedited basis. Any person adversely affected by an act or failure to act by a State 

or local government or any instrumentality thereof 

that is inconsistent with clause (iv) may petition the 

Commission for relief. 

(C) DEFINITIONS.—For purposes of this paragraph— 

(i) the term ‘‘personal wireless services’’ means commercial mobile services, unlicensed wireless services, 

and common carrier wireless exchange access services; 

(ii) the term ‘‘personal wireless service facilities’’ 

means facilities for the provision of personal wireless 

services; and 

(iii) the term ‘‘unlicensed wireless service’’ means 

the offering of telecommunications services using duly 

authorized devices which do not require individual licenses, but does not mean the provision of direct-tohome satellite services (as defined in section 303(v)). 

(8) MOBILE SERVICES ACCESS.—A person engaged in the provision of commercial mobile services, insofar as such person is 

so engaged, shall not be required to provide equal access to 

common carriers for the provision of telephone toll services. If 

the Commission determines that subscribers to such services 

are denied access to the provider of telephone toll services of 

the subscribers’ choice, and that such denial is contrary to the 

public interest, convenience, and necessity, then the Commission shall prescribe regulations to afford subscribers unblocked 

access to the provider of telephone toll services of the subscribers’ choice through the use of a carrier identification code 

assigned to such provider or other mechanism. The requirements for unblocking shall not apply to mobile satellite services unless the Commission finds it to be in the public interest 

to apply such requirements to such services. 

(d) DEFINITIONS.—For purposes of this section— 

(1) the term ‘‘commercial mobile service’’ means any mobile 

service (as defined in section 3) that is provided for profit and 

makes interconnected service available (A) to the public or (B) 

to such classes of eligible users as to be effectively available to 

a substantial portion of the public, as specified by regulation 

by the Commission; 

(2) the term ‘‘interconnected service’’ means service that is 

interconnected with the public switched network (as such 

terms are defined by regulation by the Commission) or service 

for which a request for interconnection is pending pursuant to 

subsection (c)(1)(B); and 


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(3) the term ‘‘private mobile service’’ means any mobile service (as defined in section 3) that is not a commercial mobile 

service or the functional equivalent of a commercial mobile 

service, as specified by regulation by the Commission. 

* * * * * * * 

SEC. 336. BROADCAST SPECTRUM FLEXIBILITY. 

(a) COMMISSION ACTION.—If the Commission determines to issue 

additional licenses for advanced television services, the Commission— 

(1) should limit the initial eligibility for such licenses to persons that, as of the date of such issuance, are licensed to operate a television broadcast station or hold a permit to construct 

such a station (or both); and 

(2) shall adopt regulations that allow the holders of such licenses to offer such ancillary or supplementary services on designated frequencies as may be consistent with the public interest, convenience, and necessity. 

(b) CONTENTS OF REGULATIONS.—In prescribing the regulations 

required by subsection (a), the Commission shall— 

(1) only permit such licensee or permittee to offer ancillary 

or supplementary services if the use of a designated frequency 

for such services is consistent with the technology or method 

designated by the Commission for the provision of advanced 

television services; 

(2) limit the broadcasting of ancillary or supplementary services on designated frequencies so as to avoid derogation of any 

advanced television services, including high definition television broadcasts, that the Commission may require using such 

frequencies; 

(3) apply to any other ancillary or supplementary service 

such of the Commission’s regulations as are applicable to the 

offering of analogous services by any other person, except that 

no ancillary or supplementary service shall have any rights to 

carriage under section 614 or 615 or be deemed a multichannel 

video programming distributor for purposes of section 628; 

(4) adopt such technical and other requirements as may be 

necessary or appropriate to assure the quality of the signal 

used to provide advanced television services, and may adopt 

regulations that stipulate the minimum number of hours per 

day that such signal must be transmitted; and 

(5) prescribe such other regulations as may be necessary for 

the protection of the public interest, convenience, and necessity. 

(c) RECOVERY OF LICENSE.—If the Commission grants a license 

for advanced television services to a person that, as of the date of 

such issuance, is licensed to operate a television broadcast station 

or holds a permit to construct such a station (or both), the Commission shall, as a condition of such license, require that either the additional license or the original license held by the licensee be surrendered to the Commission for reallocation or reassignment (or 

both) pursuant to Commission regulation. 

(d) PUBLIC INTEREST REQUIREMENT.—Nothing in this section 

shall be construed as relieving a television broadcasting station 

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cessity. In the Commission’s review of any application for renewal 

of a broadcast license for a television station that provides ancillary 

or supplementary services, the television licensee shall establish 

that all of its program services on the existing or advanced television spectrum are in the public interest. Any violation of the 

Commission rules applicable to ancillary or supplementary services 

shall reflect upon the licensee’s qualifications for renewal of its license. 

(e) FEES.— 

(1) SERVICES TO WHICH FEES APPLY.—If the regulations prescribed pursuant to subsection (a) permit a licensee to offer ancillary or supplementary services on a designated frequency— 

(A) for which the payment of a subscription fee is required in order to receive such services, or 

(B) for which the licensee directly or indirectly receives 

compensation from a third party in return for transmitting 

material furnished by such third party (other than commercial advertisements used to support broadcasting for 

which a subscription fee is not required), 

the Commission shall establish a program to assess and collect 

from the licensee for such designated frequency an annual fee 

or other schedule or method of payment that promotes the objectives described in subparagraphs (A) and (B) of paragraph 

(2). 

(2) COLLECTION OF FEES.—The program required by paragraph (1) shall— 

(A) be designed (i) to recover for the public a portion of 

the value of the public spectrum resource made available 

for such commercial use, and (ii) to avoid unjust enrichment through the method employed to permit such uses of 

that resource; 

(B) recover for the public an amount that, to the extent 

feasible, equals but does not exceed (over the term of the 

license) the amount that would have been recovered had 

such services been licensed pursuant to the provisions of 

section 309(j) of this Act and the Commission’s regulations 

thereunder; and 

(C) be adjusted by the Commission from time to time in 

order to continue to comply with the requirements of this 

paragraph. 

(3) TREATMENT OF REVENUES.— 

(A) GENERAL RULE.—Except as provided in subparagraph (B), all proceeds obtained pursuant to the regulations required by this subsection shall be deposited in the 

Treasury in accordance with chapter 33 of title 31, United 

States Code. 

(B) RETENTION OF REVENUES.—Notwithstanding subparagraph (A), the salaries and expenses account of the 

Commission shall retain as an offsetting collection such 

sums as may be necessary from such proceeds for the costs 

of developing and implementing the program required by 

this section and regulating and supervising advanced television services. Such offsetting collections shall be available for obligation subject to the terms and conditions of 


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the receiving appropriations account, and shall be deposited in such accounts on a quarterly basis. 

ø(4) REPORT.—Within 5 years after the date of enactment of 

the Telecommunications Act of 1996, the Commission shall report to the Congress on the implementation of the program required by this subsection, and shall annually thereafter advise 

the Congress on the amounts collected pursuant to such program.¿ 

(4) REPORT.—The Commission shall annually advise the Congress on the amounts collected pursuant to the program required by this subsection. 

(f) PRESERVATION OF LOW-POWER COMMUNITY TELEVISION

BROADCASTING.— 

(1) CREATION OF CLASS A LICENSES.— 

(A) RULEMAKING REQUIRED.—Within 120 days after the 

date of the enactment of the Community Broadcasters Protection Act of 1999, the Commission shall prescribe regulations to establish a class A television license to be available to licensees of qualifying low-power television stations. Such regulations shall provide that— 

(i) the license shall be subject to the same license 

terms and renewal standards as the licenses for fullpower television stations except as provided in this 

subsection; and 

(ii) each such class A licensee shall be accorded primary status as a television broadcaster as long as the 

station continues to meet the requirements for a qualifying low-power station in paragraph (2). 

(B) NOTICE TO AND CERTIFICATION BY LICENSEES.—Within 30 days after the date of the enactment of the Community Broadcasters Protection Act of 1999, the Commission 

shall send a notice to the licensees of all low-power televisions licenses that describes the requirements for class A 

designation. Within 60 days after such date of enactment, 

licensees intending to seek class A designation shall submit to the Commission a certification of eligibility based on 

the qualification requirements of this subsection. Absent a 

material deficiency, the Commission shall grant certification of eligibility to apply for class A status. 

(C) APPLICATION FOR AND AWARD OF LICENSES.—Consistent with the requirements set forth in paragraph (2)(A) 

of this subsection, a licensee may submit an application for 

class A designation under this paragraph within 30 days 

after final regulations are adopted under subparagraph (A) 

of this paragraph. Except as provided in paragraphs (6) 

and (7), the Commission shall, within 30 days after receipt 

of an application of a licensee of a qualifying low-power 

television station that is acceptable for filing, award such 

a class A television station license to such licensee. 

(D) RESOLUTION OF TECHNICAL PROBLEMS.—The Commission shall act to preserve the service areas of low-power 

television licensees pending the final resolution of a class 

A application. If, after granting certification of eligibility 

for a class A license, technical problems arise requiring an 

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rameters or channel assignment in the digital television 

Table of Allotments, the Commission shall make such 

modifications as necessary— 

(i) to ensure replication of the full-power digital television applicant’s service area, as provided for in sections 73.622 and 73.623 of the Commission’s regulations (47 CFR 73.622, 73.623); and 

(ii) to permit maximization of a full-power digital 

television applicant’s service area consistent with such 

sections 73.622 and 73.623, 

if such applicant has filed an application for maximization 

or a notice of its intent to seek such maximization by December 31, 1999, and filed a bona fide application for 

maximization by May 1, 2000. Any such applicant shall 

comply with all applicable Commission rules regarding the 

construction of digital television facilities. 

(E) CHANGE APPLICATIONS.—If a station that is awarded 

a construction permit to maximize or significantly enhance 

its digital television service area, later files a change application to reduce its digital television service area, the protected contour of that station shall be reduced in accordance with such change modification. 

(2) QUALIFYING LOW-POWER TELEVISION STATIONS.—For purposes of this subsection, a station is a qualifying low-power television station if— 

(A)(i) during the 90 days preceding the date of the enactment of the Community Broadcasters Protection Act of 

1999— 

(I) such station broadcast a minimum of 18 hours 

per day; 

(II) such station broadcast an average of at least 3 

hours per week of programming that was produced 

within the market area served by such station, or the 

market area served by a group of commonly controlled 

low-power stations that carry common local programming produced within the market area served by such 

group; and 

(III) such station was in compliance with the Commission’s requirements applicable to low-power television stations; and 

(ii) from and after the date of its application for a class 

A license, the station is in compliance with the Commission’s operating rules for full-power television stations; or 

(B) the Commission determines that the public interest, 

convenience, and necessity would be served by treating the 

station as a qualifying low-power television station for purposes of this section, or for other reasons determined by 

the Commission. 

(3) COMMON OWNERSHIP.—No low-power television station 

authorized as of the date of the enactment of the Community 

Broadcasters Protection Act of 1999 shall be disqualified for a 

class A license based on common ownership with any other medium of mass communication. 

(4) ISSUANCE OF LICENSES FOR ADVANCED TELEVISION SERVICES TO TELEVISION TRANSLATOR STATIONS AND QUALIFYING


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LOW-POWER TELEVISION STATIONS.—The Commission is not required to issue any additional license for advanced television 

services to the licensee of a class A television station under 

this subsection, or to any licensee of any television translator 

station, but shall accept a license application for such services 

proposing facilities that will not cause interference to the service area of any other broadcast facility applied for, protected, 

permitted, or authorized on the date of filing of the advanced 

television application. Such new license or the original license 

of the applicant shall be forfeited after the end of the digital 

television service transition period, as determined by the Commission. A licensee of a low-power television station or television translator station may, at the option of licensee, elect to 

convert to the provision of advanced television services on its 

analog channel, but shall not be required to convert to digital 

operation until the end of such transition period. 

(5) NO PREEMPTION OF SECTION 337.—Nothing in this subsection preempts or otherwise affects section 337 of this Act. 

(6) INTERIM QUALIFICATION.— 

(A) STATIONS OPERATING WITHIN CERTAIN BANDWIDTH.— 

The Commission may not grant a class A license to a lowpower television station for operation between 698 and 806 

megahertz, but the Commission shall provide to low-power 

television stations assigned to and temporarily operating 

in that bandwidth the opportunity to meet the qualification requirements for a class A license. If such a qualified 

applicant for a class A license is assigned a channel within 

the core spectrum (as such term is defined in MM Docket 

No. 87–286, February 17, 1998), the Commission shall 

issue a class A license simultaneously with the assignment 

of such channel. 

(B) CERTAIN CHANNELS OFF-LIMITS.—The Commission 

may not grant under this subsection a class A license to 

a low-power television station operating on a channel within the core spectrum that includes any of the 175 additional channels referenced in paragraph 45 of its February 

23, 1998, Memorandum Opinion and Order on Reconsideration of the Sixth Report and Order (MM Docket No. 87– 

268). Within 18 months after the date of the enactment of 

the Community Broadcasters Protection Act of 1999, the 

Commission shall identify by channel, location, and applicable technical parameters those 175 channels. 

(7) NO INTERFERENCE REQUIREMENT.—The Commission may 

not grant a class A license, nor approve a modification of a 

class A license, unless the applicant or licensee shows that the 

class A station for which the license or modification is sought 

will not cause— 

(A) interference within— 

(i) the predicted Grade B contour (as of the date of 

the enactment of the Community Broadcasters Protection Act of 1999, or November 1, 1999, whichever is 

later, or as proposed in a change application filed on 

or before such date) of any television station transmitting in analog format; or 


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(ii)(I) the digital television service areas provided in 

the DTV Table of Allotments; (II) the areas protected 

in the Commission’s digital television regulations (47 

CFR 73.622(e) and (f)); (III) the digital television service areas of stations subsequently granted by the Commission prior to the filing of a class A application; and 

(IV) stations seeking to maximize power under the 

Commission’s rules, if such station has complied with 

the notification requirements in paragraph (1)(D); 

(B) interference within the protected contour of any lowpower television station or low-power television translator 

station that— 

(i) was licensed prior to the date on which the application for a class A license, or for the modification of 

such a license, was filed; 

(ii) was authorized by construction permit prior to 

such date; or 

(iii) had a pending application that was submitted 

prior to such date; or 

(C) interference within the protected contour of 80 miles 

from the geographic center of the areas listed in section 

22.625(b)(1) or 90.303 of the Commission’s regulations (47 

CFR 22.625(b)(1) and 90.303) for frequencies in— 

(i) the 470–512 megahertz band identified in 

section 22.621 or 90.303 of such regulations; or 

(ii) the 482–488 megahertz band in New York. 

(8) PRIORITY FOR DISPLACED LOW-POWER STATIONS.—Lowpower stations that are displaced by an application filed under 

this section shall have priority over other low-power stations in 

the assignment of available channels. 

(g) EVALUATION.—Within 10 years after the date the Commission 

first issues additional licenses for advanced television services, the 

Commission shall conduct an evaluation of the advanced television 

services program. Such evaluation shall include— 

(1) an assessment of the willingness of consumers to purchase the television receivers necessary to receive broadcasts of 

advanced television services; 

(2) an assessment of alternative uses, including public safety 

use, of the frequencies used for such broadcasts; and 

(3) the extent to which the Commission has been or will be 

able to reduce the amount of spectrum assigned to licensees. 

(h)(1) Within 60 days after receiving a request (made in such 

form and manner and containing such information as the Commission may require) under this subsection from a low-power television 

station to which this subsection applies, the Commission shall authorize the licensee or permittee of that station to provide digital 

data service subject to the requirements of this subsection as a 

pilot project to demonstrate the feasibility of using low-power television stations to provide high-speed wireless digital data service, 

including Internet access to unserved areas. 

(2) The low-power television stations to which this subsection 

applies are as follows: 

(A) KHLM–LP, Houston, Texas. 

(B) WTAM–LP, Tampa, Florida. 

(C) WWRJ–LP, Jacksonville, Florida. 


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(D) WVBG–LP, Albany, New York. 

(E) KHHI–LP, Honolulu, Hawaii. 

(F) KPHE–LP (K19DD), Phoenix, Arizona. 

(G) K34FI, Bozeman, Montana. 

(H) K65GZ, Bozeman, Montana. 

(I) WXOB–LP, Richmond, Virginia. 

(J) WIIW–LP, Nashville, Tennessee. 

(K) A station and repeaters to be determined by the Federal Communications Commission for the sole purpose of 

providing service to communities in the Kenai Peninsula 

Borough and Matanuska Susitna Borough. 

(L) WSPY–LP, Plano, Illinois. 

(M) W24AJ, Aurora, Illinois. 

(3) Notwithstanding any requirement of section 553 of title 

5, United States Code, the Commission shall promulgate regulations establishing the procedures, consistent with the requirements of paragraphs (4) and (5), governing the pilot 

projects for the provision of digital data services by certain low 

power television licensees within 120 days after the date of enactment of LPTV Digital Data Services Act. The regulations 

shall set forth— 

(A) requirements as to the form, manner, and information required for submitting requests to the Commission to 

provide digital data service as a pilot project; 

(B) procedures for testing interference to digital television receivers caused by any pilot project station or remote transmitter; 

(C) procedures for terminating any pilot project station 

or remote transmitter or both that causes interference to 

any analog or digital full-power television stations, class A 

television station, television translators or any other users 

of the core television band; 

(D) specifications for reports to be filed quarterly by each 

low power television licensee participating in a pilot 

project; 

(E) procedures by which a low power television licensee 

participating in a pilot project shall notify television broadcast stations in the same market upon commencement of 

digital data services and for ongoing coordination with 

local broadcasters during the test period; and 

(F) procedures for the receipt and review of interference 

complaints on an expedited basis consistent with paragraph (5)(D). 

(4) A low-power television station to which this subsection 

applies may not provide digital data service unless— 

(A) the provision of that service, including any remote 

return-path transmission in the case of 2-way digital data 

service, does not cause any interference in violation of the 

Commission’s existing rules, regarding interference caused 

by low power television stations to full-service analog or 

digital television stations, class A television stations, or 

television translator stations; and 

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neering practices, and any other Commission regulation 

under paragraph (3) governing pilot program operations. 

(5)(A) The Commission may limit the provision of digital 

data service by a low-power television station to which this 

subsection applies if the Commission finds that— 

(i) the provision of 2-way digital data service by that station causes any interference that cannot otherwise be remedied; or 

(ii) the provision of 1-way digital data service by that 

station causes any interference. 

(B) The Commission shall grant any such station, upon application (made in such form and manner and containing such 

information as the Commission may require) by the licensee or 

permittee of that station, authority to move the station to another location, to modify its facilities to operate on a different 

channel, or to use booster or auxiliary transmitting locations, 

if the grant of authority will not cause interference to the allowable or protected service areas of full service digital television stations, National Television Standards Committee assignments, or television translator stations, and provided, however, no such authority shall be granted unless it is consistent 

with existing Commission regulations relating to the movement, modification, and use of non-class A low power television 

transmission facilities in order— 

(i) to operate within television channels 2 through 51, inclusive; or 

(ii) to demonstrate the utility of low-power television stations to provide high-speed 2-way wireless digital data 

service. 

(C) The Commission shall require quarterly reports from 

each station authorized to provide digital data services under 

this subsection that include— 

(i) information on the station’s experience with interference complaints and the resolution thereof; 

(ii) information on the station’s market success in providing digital data service; and 

(iii) such other information as the Commission may require in order to administer this subsection. 

(D) The Commission shall resolve any complaints of interference with television reception caused by any station providing digital data service authorized under this subsection 

within 60 days after the complaint is received by the Commission. 

(6) The Commission shall assess and collect from any lowpower television station authorized to provide digital data service under this subsection an annual fee or other schedule or 

method of payment comparable to any fee imposed under the 

authority of this Act on providers of similar services. Amounts 

received by the Commission under this paragraph may be retained by the Commission as an offsetting collection to the extent necessary to cover the costs of developing and implementing the pilot program authorized by this subsection, and 

regulating and supervising the provision of digital data service 

by low-power television stations under this subsection. 

Amounts received by the Commission under this paragraph in 


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excess of any amount retained under the preceding sentence 

shall be deposited in the Treasury in accordance with chapter 

33 of title 31, United States Code. 

(7) In this subsection, the term ‘‘digital data service’’ includes— 

(A) digitally-based interactive broadcast service; and 

(B) wireless Internet access, without regard to— 

(i) whether such access is— 

(I) provided on a one-way or a two-way basis; 

(II) portable or fixed; or 

(III) connected to the Internet via a band allocated to Interactive Video and Data Service; and 

(ii) the technology employed in delivering such service, including the delivery of such service via multiple 

transmitters at multiple locations. 

(8) Nothing in this subsection limits the authority of the 

Commission under any other provision of law. 

(i) DEFINITIONS.—As used in this section: 

(1) ADVANCED TELEVISION SERVICES.—The term ‘‘advanced 

television services’’ means television services provided using 

digital or other advanced technology as further defined in the 

opinion, report, and order of the Commission entitled ‘‘Advanced Television Systems and Their Impact Upon the Existing Television Broadcast Service’’, MM Docket 87–268, adopted 

September 17, 1992, and successor proceedings. 

(2) DESIGNATED FREQUENCIES.—The term ‘‘designated frequency’’ means each of the frequencies designated by the Commission for licenses for advanced television services. 

(3) HIGH DEFINITION TELEVISION.—The term ‘‘high definition 

television’’ refers to systems that offer approximately twice the 

vertical and horizontal resolution of receivers generally available on the date of enactment of the Telecommunications Act 

of 1996, as further defined in the proceedings described in 

paragraph (1) of this subsection. 

* * * * * * * 

SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE CARRIERS. 

(a) PROVISIONS RELATING TO CARRIAGE OF DISTANT SIGNALS.— (1) CARRIAGE PERMITTED.— 

(A) IN GENERAL.—Subject to section 119 of title 17, 

United States Code, any satellite carrier shall be permitted to provide the signals of no more than two network 

stations in a single day for each television network to any 

household not located within the local markets of those 

network stations. 

(B) ADDITIONAL SERVICE.—In addition to signals provided under subparagraph (A), any satellite carrier may 

also provide service under the statutory license of section 

122 of title 17, United States Code, to the local market 

within which such household is located. The service provided under section 122 of such title may be in addition to 

the two signals provided under section 119 of such title. 

(2) REPLACEMENT OF DISTANT SIGNALS WITH LOCAL SIGNALS.—Notwithstanding any other provision of paragraph (1), 


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the following rules shall apply after the date of enactment of 

the Satellite Home Viewer Extension and Reauthorization Act 

of 2004: 

(A) RULES FOR GRANDFATHERED SUBSCRIBERS.— (i) FOR THOSE RECEIVING DISTANT SIGNALS.—In the 

case of a subscriber of a satellite carrier who is eligible 

to receive the signal of a network station solely by reason of section 119(e) of title 17, United States Code (in 

this subparagraph referred to as a ‘‘distant signal’’), 

and who, as of October 1, 2009, is receiving the distant 

signal of that network station, the following shall 

apply: 

(I) In a case in which the satellite carrier makes 

available to the subscriber the signal of a local 

network station affiliated with the same television 

network pursuant to section 338, the carrier may 

only provide the secondary transmissions of the 

distant signal of a station affiliated with the same 

network to that subscriber— 

(aa) if, within 60 days after receiving the 

notice of the satellite carrier under section 

338(h)(1) of this Act, the subscriber elects to 

retain the distant signal; but 

(bb) only until such time as the subscriber 

elects to receive such local signal. 

(II) Notwithstanding subclause (I), the carrier 

may not retransmit the distant signal to any subscriber who is eligible to receive the signal of a 

network station solely by reason of section 119(e) 

of title 17, United States Code, unless such carrier, within 60 days after the date of the enactment of the Satellite Home Viewer Extension and 

Reauthorization Act of 2004, submits to that television network the list and statement required by 

subparagraph (F)(i). 

(ii) FOR THOSE NOT RECEIVING DISTANT SIGNALS.—In 

the case of any subscriber of a satellite carrier who is 

eligible to receive the distant signal of a network station solely by reason of section 119(e) of title 17, 

United States Code, and who did not receive a distant 

signal of a station affiliated with the same network on 

October 1, 2009, the carrier may not provide the secondary transmissions of the distant signal of a station 

affiliated with the same network to that subscriber. 

(B) RULES FOR OTHER SUBSCRIBERS.— 

(i) IN GENERAL.—In the case of a subscriber of a satellite carrier who is eligible to receive the signal of a 

network station under this section (in this subparagraph referred to as a ‘‘distant signal’’), other than 

subscribers to whom subparagraph (A) applies, the following shall apply: 

(I) In a case in which the satellite carrier makes 

available to that subscriber, on January 1, 2005, 

the signal of a local network station affiliated with 

the same television network pursuant to section 


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338, the carrier may only provide the secondary 

transmissions of the distant signal of a station affiliated with the same network to that subscriber 

if the subscriber’s satellite carrier, not later than 

March 1, 2005, submits to that television network 

the list and statement required by subparagraph 

(F)(i). 

(II) In a case in which the satellite carrier does 

not make available to that subscriber, on January 

1, 2005, the signal of a local network station pursuant to section 338, the carrier may only provide 

the secondary transmissions of the distant signal 

of a station affiliated with the same network to 

that subscriber if— 

(aa) that subscriber seeks to subscribe to 

such distant signal before the date on which 

such carrier commences to carry pursuant to 

section 338 the signals of stations from the 

local market of such local network station; 

and 

(bb) the satellite carrier, within 60 days 

after such date, submits to each television 

network the list and statement required by 

subparagraph (F)(ii). 

(ii) SPECIAL CIRCUMSTANCES.—A subscriber of a satellite carrier who was lawfully receiving the distant 

signal of a network station on the day before the date 

of enactment of the Satellite Television Extension and 

Localism Act of 2010 may receive both such distant 

signal and the local signal of a network station affiliated with the same network until such subscriber 

chooses to no longer receive such distant signal from 

such carrier, whether or not such subscriber elects to 

subscribe to such local signal. 

(C) FUTURE APPLICABILITY.—A satellite carrier may not 

provide a distant signal (within the meaning of subparagraph (A) or (B)) to a person who— 

(i) is not a subscriber lawfully receiving such secondary transmission as of the date of the enactment of 

the Satellite Television Extension and Localism Act of 

2010 and, at the time such person seeks to subscribe 

to receive such secondary transmission, resides in a 

local market where the satellite carrier makes available to that person the signal of a local network station affiliated with the same television network pursuant to section 338 (and the retransmission of such signal by such carrier can reach such subscriber); or 

(ii) lawfully subscribes to and receives a distant signal on or after the date of enactment of the Satellite 

Television Extension and Localism Act of 2010, and, 

subsequent to such subscription, the satellite carrier 

makes available to that subscriber the signal of a local 

network station affiliated with the same network as 

the distant signal (and the retransmission of such signal by such carrier can reach such subscriber), unless 


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such person subscribes to the signal of the local network station within 60 days after such signal is made 

available. 

(D) SPECIAL RULES FOR DISTANT SIGNALS.— (i) ELIGIBILITY AND SIGNAL TESTING.—A subscriber of 

a satellite carrier shall be eligible to receive a distant 

signal of a network station affiliated with the same 

network under this section if, with respect to a local 

network station, such subscriber— 

(I) is a subscriber whose household is not predicted by the model specified in subsection (c)(3) 

to receive the signal intensity required under section 73.622(e)(1) or, in the case of a low-power station or translator station transmitting an analog 

signal, section 73.683(a) of title 47, Code of Federal Regulations, or a successor regulation; 

(II) is determined, based on a test conducted in 

accordance with section 73.686(d) of title 47, Code 

of Federal Regulations, or any successor regulation, not to be able to receive a signal that exceeds 

the signal intensity standard in section 

73.622(e)(1) or, in the case of a low-power station 

or translator station transmitting an analog signal, section 73.683(a) of such title, or a successor 

regulation; or 

(III) is in an unserved household, as determined 

under section 119(d)(10)(A) of title 17, United 

States Code. 

(ii) PRE-ENACTMENT DISTANT SIGNAL SUBSCRIBERS.— 

Any eligible subscriber under this subparagraph who 

is a lawful subscriber to such a distant signal as of the 

date of enactment of the Satellite Television Extension 

and Localism Act of 2010 may continue to receive such 

distant signal. 

(iii) TIME-SHIFTING PROHIBITED.—In a case in which 

the satellite carrier makes available to an eligible subscriber under this subparagraph the signal of a local 

network station pursuant to section 338, the carrier 

may only provide the distant signal of a station affiliated with the same network to that subscriber if, in 

the case of any local market in the 48 contiguous 

States of the United States, the distant signal is the 

secondary transmission of a station whose prime time 

network programming is generally broadcast simultaneously with, or later than, the prime time network 

programming of the affiliate of the same network in 

the local market. 

(iv) SAVINGS PROVISION.—Nothing in this subparagraph shall be construed to affect a satellite carrier’s 

obligations under section 338. 

(E) AUTHORITY TO GRANT STATION-SPECIFIC WAIVERS.— This paragraph shall not prohibit a retransmission of a 

distant signal of any distant network station to any subscriber to whom the signal of a local network station affiliated with the same network is available, if and to the exVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00072 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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tent that such local network station has affirmatively 

granted a waiver from the requirements of this paragraph 

to such satellite carrier with respect to retransmission of 

such distant network station to such subscriber. 

(F) NOTICES TO NETWORKS OF DISTANT SIGNAL SUB- SCRIBERS.— (i) Within 60 days after the date of enactment of the 

Satellite Home Viewer Extension and Reauthorization 

Act of 2004, each satellite carrier that provides a distant signal of a network station to a subscriber pursuant to subparagraph (A) or (B)(i) of this paragraph 

shall submit to each network— 

(I) a list, aggregated by designated market area, 

identifying each subscriber provided such a signal 

by— 

(aa) name; 

(bb) address (street or rural route number, 

city, State, and zip code); and 

(cc) the distant network signal or signals received; and 

(II) a statement that, to the best of the carrier’s 

knowledge and belief after having made diligent 

and good faith inquiries, the subscriber is qualified under the existing law to receive the distant 

network signal or signals pursuant to subparagraph (A) or (B)(i) of this paragraph. 

(ii) Within 60 days after the date a satellite carrier 

commences to carry pursuant to section 338 the signals of stations from a local market, such a satellite 

carrier that provides a distant signal of a network station to a subscriber pursuant to subparagraph (B)(ii) 

of this paragraph shall submit to each network— 

(I) a list identifying each subscriber in that local 

market provided such a signal by— 

(aa) name; 

(bb) address (street or rural route number, 

city, State, and zip code); and 

(cc) the distant network signal or signals received; and 

(II) a statement that, to the best of the carrier’s 

knowledge and belief after having made diligent 

and good faith inquiries, the subscriber is qualified under the existing law to receive the distant 

network signal or signals pursuant to subparagraph (B)(ii) of this paragraph. 

(G) OTHER PROVISIONS NOT AFFECTED.—This paragraph 

shall not affect the eligibility of a subscriber to receive secondary transmissions under section 340 of this Act or as 

an unserved household included under section 119(a)(12) 

of title 17, United States Code. 

(H) AVAILABLE DEFINED.—For purposes of this paragraph, a satellite carrier makes available a local signal to 

a subscriber or person if the satellite carrier offers that 

local signal to other subscribers who reside in the same zip 

code as that subscriber or person. 


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(3) PENALTY FOR VIOLATION.—Any satellite carrier that 

knowingly and willfully provides the signals of television stations to subscribers in violation of this subsection shall be liable for a forfeiture penalty under section 503 in the amount of 

$50,000 for each violation or each day of a continuing violation., except that paragraph (2)(D) of this subsection, relating 

to the provision of distant digital signals, shall be enforceable 

under the provisions of section 340(f) 

(b) EXTENSION OF NETWORK NONDUPLICATION, SYNDICATED EXCLUSIVITY, AND SPORTS BLACKOUT TO SATELLITE RETRANSMISSION.— 

(1) EXTENSION OF PROTECTIONS.—Within 45 days after the 

date of the enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall commence a single 

rulemaking proceeding to establish regulations that— 

(A) apply network nonduplication protection (47 CFR 

76.92) syndicated exclusivity protection (47 CFR 76.151), 

and sports blackout protection (47 CFR 76.67) to the retransmission of the signals of nationally distributed superstations by satellite carriers to subscribers; and 

(B) to the extent technically feasible and not economically prohibitive, apply sports blackout protection (47 CFR 

76.67) to the retransmission of the signals of network stations by satellite carriers to subscribers. 

(2) DEADLINE FOR ACTION.—The Commission shall complete 

all actions necessary to prescribe regulations required by this 

section so that the regulations shall become effective within 1 

year after such date of enactment. 

(c) ELIGIBILITY FOR RETRANSMISSION.— 

ø(1) STUDY OF DIGITAL STRENGTH TESTING PROCEDURES.— 

ø(A) STUDY REQUIRED.—Not later than 1 year after the 

date of the enactment of the Satellite Home Viewer Extension and Reauthorization Act of 2004, the Federal Communications Commission shall complete an inquiry regarding 

whether, for purposes of identifying if a household is 

unserved by an adequate digital signal under section 

119(d)(10) of title 17, United States Code, the digital signal 

strength standard in section 73.622(e)(1) of title 47, Code 

of Federal Regulations, or the testing procedures in section 

73.686(d) of title 47, Code of Federal Regulations, such 

statutes or regulations should be revised to take into account the types of antennas that are available to consumers. 

ø(B) STUDY CONSIDERATIONS.—In conducting the study 

under this paragraph, the Commission shall consider 

whether— 

ø(i) to account for the fact that an antenna can be 

mounted on a roof or placed in a home and can be 

fixed or capable of rotating; 

ø(ii) section 73.686(d) of title 47, Code of Federal 

Regulations, should be amended to create different 

procedures for determining if the requisite digital signal strength is present than for determining if the requisite analog signal strength is present; 


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ø(iii) a standard should be used other than the presence of a signal of a certain strength to ensure that a 

household can receive a high-quality picture using antennas of reasonable cost and ease of installation; 

ø(iv) to develop a predictive methodology for determining whether a household is unserved by an adequate digital signal under section 119(d)(10) of title 

17, United States Code; 

ø(v) there is a wide variation in the ability of reasonably priced consumer digital television sets to receive over-the-air signals, such that at a given signal 

strength some may be able to display high-quality pictures while others cannot, whether such variation is 

related to the price of the television set, and whether 

such variation should be factored into setting a standard for determining whether a household is unserved 

by an adequate digital signal; and 

ø(vi) to account for factors such as building loss, external interference sources, or undesired signals from 

both digital television and analog television stations 

using either the same or adjacent channels in nearby 

markets, foliage, and man-made clutter. 

ø(C) REPORT.—Not later than 1 year after the date of 

the enactment of the Satellite Home Viewer Extension and 

Reauthorization Act of 2004, the Federal Communications 

Commission shall submit to the Committee on Energy and 

Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the 

Senate a report containing— 

ø(i) the results of the study under this paragraph; 

and 

ø(ii) recommendations, if any, as to what changes 

should be made to Federal statutes or regulations.¿ 

(2) WAIVERS.—A subscriber who is denied the retransmission 

of a signal of a network station under section 119 of title 17, 

United States Code, may request a waiver from such denial by 

submitting a request, through such subscriber’s satellite carrier, to the network station asserting that the retransmission 

is prohibited. The network station shall accept or reject a subscriber’s request for a waiver within 30 days after receipt of 

the request. The subscriber shall be permitted to receive such 

retransmission under section 119(d)(10)(B) of title 17, United 

States Code, if such station agrees to the waiver request and 

files with the satellite carrier a written waiver with respect to 

that subscriber allowing the subscriber to receive such retransmission. If a television network station fails to accept or reject 

a subscriber’s request for a waiver within the 30-day period 

after receipt of the request, that station shall be deemed to 

agree to the waiver request and have filed such written waiver. 

(3) ESTABLISHMENT OF IMPROVED PREDICTIVE MODEL AND ON- LOCATION TESTING REQUIRED.— (A) PREDICTIVE MODEL.—Within 270 days after the date 

of the enactment of the Satellite Television Extension and 

Localism Act of 2010, the Commission shall develop and 

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ably and presumptively determining the ability of individual locations, through the use of an antenna, to receive 

signals in accordance with the signal intensity standard in 

section 73.622(e)(1) of title 47, Code of Federal Regulations, or a successor regulation, including to account for 

the continuing operation of translator stations and low 

power television stations. In prescribing such model, the 

Commission shall rely on the Individual Location LongleyRice model set forth by the Commission in CS Docket No. 

98–201, as previously revised with respect to analog signals, and as recommended by the Commission with respect 

to digital signals in its Report to Congress in ET Docket 

No. 05–182, FCC 05–199 (released December 9, 2005). The 

Commission shall establish procedures for the continued 

refinement in the application of the model by the use of 

additional data as it becomes available. 

(B) ON-LOCATION TESTING.—The Commission shall issue 

an order completing its rulemaking proceeding in ET 

Docket No. 06–94 within 270 days after the date of enactment of the Satellite Television Extension and Localism 

Act of 2010. In conducting such rulemaking, the Commission shall seek ways to minimize consumer burdens associated with on-location testing. 

(4) OBJECTIVE VERIFICATION.— 

(A) IN GENERAL.—If a subscriber’s request for a waiver 

under paragraph (2) is rejected and the subscriber submits 

to the subscriber’s satellite carrier a request for a test 

verifying the subscriber’s inability to receive a signal of the 

signal intensity referenced in clause (i) of subsection 

(a)(2)(D), the satellite carrier and the network station or 

stations asserting that the retransmission is prohibited 

with respect to that subscriber shall select a qualified and 

independent person to conduct the test referenced in such 

clause. Such test shall be conducted within 30 days after 

the date the subscriber submits a request for the test. If 

the written findings and conclusions of a test conducted in 

accordance with such clause demonstrate that the subscriber does not receive a signal that meets or exceeds the 

requisite signal intensity standard in such clause, the subscriber shall not be denied the retransmission of a signal 

of a network station under section 119(d)(10)(A) of title 17, 

United States Code. 

(B) DESIGNATION OF TESTER AND ALLOCATION OF

COSTS.—If the satellite carrier and the network station or 

stations asserting that the retransmission is prohibited are 

unable to agree on such a person to conduct the test, the 

person shall be designated by an independent and neutral 

entity designated by the Commission by rule. Unless the 

satellite carrier and the network station or stations otherwise agree, the costs of conducting the test under this 

paragraph shall be borne by the satellite carrier, if the station’s signal meets or exceeds such requisite signal intensity standard, or by the network station, if its signal fails 

to meet or exceed such standard. 


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(C) AVOIDANCE OF UNDUE BURDEN.—Commission regulations prescribed under this paragraph shall seek to avoid 

any undue burden on any party. 

(D) REDUCTION OF VERIFICATION BURDENS.—Within 1 

year after the date of enactment of the Satellite Home 

Viewer Extension and Reauthorization Act of 2004, the 

Commission shall by rule exempt from the verification requirements of subparagraph (A) any request for a test 

made by a subscriber to a satellite carrier to whom the retransmission of the signals of local broadcast stations is 

available under section 338 from such carrier. 

(E) EXCEPTION.—A satellite carrier may refuse to engage 

in the testing process. If the carrier does so refuse, a subscriber in a local market in which the satellite carrier does 

not offer the signals of local broadcast stations under section 338 may, at his or her own expense, authorize a signal intensity test to be performed pursuant to the procedures specified by the Commission in section 73.686(d) of 

title 47, Code of Federal Regulations, by a tester who is 

approved by the satellite carrier and by each affected network station, or who has been previously approved by the 

satellite carrier and by each affected network station but 

not previously disapproved. A tester may not be so disapproved for a test after the tester has commenced such 

test. The tester shall give 5 business days advance written 

notice to the satellite carrier and to the affected network 

station or stations. A signal intensity test conducted in accordance with this subparagraph shall be determinative of 

the signal strength received at that household for purposes 

of determining whether the household is capable of receiving a signal. 

(5) DEFINITION.—Notwithstanding subsection (d)(4), for purposes of paragraphs (2) and (4) of this subsection, the term 

‘‘satellite carrier’’ includes a distributor (as defined in section 

119(d)(1) of title 17, United States Code), but only if the satellite distributor’s relationship with the subscriber includes 

billing, collection, service activation, and service deactivation. 

(d) DEFINITIONS.—For the purposes of this section: 

(1) LOCAL MARKET.—The term ‘‘local market’’ has the meaning given that term under section 122(j) of title 17, United 

States Code. 

(2) NATIONALLY DISTRIBUTED SUPERSTATION.—The term ‘‘nationally distributed superstation’’ means a television broadcast 

station, licensed by the Commission, that— 

(A) is not owned or operated by or affiliated with a television network that, as of January 1, 1995, offered interconnected program service on a regular basis for 15 or 

more hours per week to at least 25 affiliated television licensees in 10 or more States; 

(B) on May 1, 1991, was retransmitted by a satellite carrier and was not a network station at that time; and 

(C) was, as of July 1, 1998, retransmitted by a satellite 

carrier under the statutory license of section 119 of title 

17, United States Code. 


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(3) NETWORK STATION.—The term ‘‘network station’’ has the 

meaning given such term under section 119(d) of title 17, 

United States Code. 

(4) SATELLITE CARRIER.—The term ‘‘satellite carrier’’ has the 

meaning given such term under section 119(d) of title 17, 

United States Code. 

(5) TELEVISION NETWORK.—The term ‘‘television network’’ 

means a television network in the United States which offers 

an interconnected program service on a regular basis for 15 or 

more hours per week to at least 25 affiliated broadcast stations 

in 10 or more States. 

* * * * * * * 

PART IV—ASSISTANCE FOR PUBLIC TELECOMMUNICATIONS FACILITIES; TELECOMMUNICATIONS DEMONSTRATIONS; CORPORATION FOR PUBLIC BROADCASTING 

* * * * * * * 

Subpart D—Corporation for Public Broadcasting 

SEC. 396. DECLARATION OF POLICY. 

(a) The Congress hereby finds and declares that— 

(1) it is in the public interest to encourage the growth and 

development of public radio and television broadcasting, including the use of such media for instructional, educational, 

and cultural purposes; 

(2) it is in the public interest to encourage the growth and 

development of nonbroadcast telecommunications technologies 

for the delivery of public telecommunications services; 

(3) expansion and development of public telecommunications 

and of diversity of its programming depend on freedom, imagination, and initiative on both local and national levels; 

(4) the encouragement and support of public telecommunications, while matters of importance for private and local development, are also of appropriate and important concern to 

the Federal Government; 

(5) it furthers the general welfare to encourage public telecommunications services which will be responsive to the interests of people both in particular localities and throughout the 

United States, which will constitute an expression of diversity 

and excellence, and which will constitute a source of alternative telecommunications services for all the citizens of the 

Nation; 

(6) it is in the public interest to encourage the development 

of programming that involves creative risks and that addresses 

the needs of unserved and underserved audiences, particularly 

children and minorities; 

(7) it is necessary and appropriate for the Federal Government to complement, assist, and support a national policy that 

will most effectively make public telecommunications services 

available to all citizens of the United States; 


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(8) public television and radio stations and public telecommunications services constitute valuable local community 

resources for utilizing electronic media to address national concerns and solve local problems through community programs 

and outreach programs; 

(9) it is in the public interest for the Federal Government to 

ensure that all citizens of the United States have access to 

public telecommunications services through all appropriate 

available telecommunications distribution technologies; and 

(10) a private corporation should be created to facilitate the 

development of public telecommunications and to afford maximum protection from extraneous interference and control. 

Corporation Established 

(b) There is authorized to be established a nonprofit corporation, 

to be known as the ‘‘Corporation for Public Broadcasting’’, which 

will not be an agency or establishment of the United States Government. The Corporation shall be subject to the provisions of this 

section, and, to the extent consistent with this section, to the District of Columbia Nonprofit Corporation Act. 

Board of Directors 

(c)(1) The Corporation for Public Broadcasting shall have a Board 

of Directors (hereinafter in this section referred to as the ‘‘Board’’), 

consisting of 9 members appointed by the President, by and with 

the advice and consent of the Senate. No more than 5 members of 

the Board appointed by the President may be members of the same 

political party. 

(2) The 9 members of the Board appointed by the President (A) 

shall be selected from among citizens of the United States (not regular full-time employees of the United States) who are eminent in 

such fields as education, cultural and civic affairs, or the arts, including radio and television; and (B) shall be selected so as to provide as nearly as practicable a broad representation of various regions of the Nation, various professions and occupations, and various kinds of talent and experience appropriate to the functions 

and responsibilities of the Corporation. 

(3) Of the members of the Board appointed by the President 

under paragraph (1), one member shall be selected from among individuals who represent the licensees and permittees of public television stations, and one member shall be selected from among individuals who represent the licensees and permittees of public radio 

stations. 

(4) The members of the initial Board of Directors shall serve as 

incorporators and shall take whatever actions are necessary to establish the Corporation under the District of Columbia Nonprofit 

Corporation Act. 

(5) The term of office of each member of the Board appointed by 

the President shall be 6 years, except as provided in section 5(c) 

of the Public Telecommunications Act of 1992. Any member whose 

term has expired may serve until such member’s successor has 

taken office, or until the end of the calendar year in which such 

member’s term has expired, whichever is earlier. Any member appointed to fill a vacancy occurring prior to the expiration of the 


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term for which such member’s predecessor was appointed shall be 

appointed for the remainder of such term. No member of the Board 

shall be eligible to serve in excess of 2 consecutive full terms. 

(6) Any vacancy in the Board shall not affect its power, but shall 

be filled in the manner consistent with this Act. 

(7) Members of the Board shall attend not less than 50 percent 

of all duly convened meetings of the Board in any calendar year. 

A member who fails to meet the requirement of the preceding sentence shall forfeit membership and the President shall appoint a 

new member to fill such vacancy not later then 30 days after such 

vacancy is determined by the Chairman of the Board. 

Election of Chairman and Vice Chairman; Compensation 

(d)(1) Members of the Board shall annually elect one of their 

members to be Chairman and elect one or more of their members 

as a Vice Chairman or Vice Chairmen. 

(2) The members of the Board shall not, by reason of such membership, be deemed to be officers or employees of the United States. 

They shall, while attending meetings of the Board or while engaged 

in duties related to such meetings or other activities of the Board 

pursuant to this subpart, be entitled to receive compensation at the 

rate of $150 per day, including traveltime. No Board member shall 

receive compensation of more than $10,000 in any fiscal year. 

While away from their homes or regular places of business, Board 

members shall be allowed travel and actual, reasonable, and necessary expenses. 

Officers and Employees 

(e)(1) The Corporation shall have a President, and such other officers as may be named and appointed by the Board for terms and 

at rates of compensation fixed by the Board. No officer or employee 

of the Corporation may be compensated by the Corporation at an 

annual rate of pay which exceeds the rate of basic pay in effect 

from time to time for level I of the Executive Schedule under section 5312 of title 5, United States Code. No individual other than 

a citizen of the United States may be an officer of the Corporation. 

No officer of the Corporation, other than the Chairman or a Vice 

Chairman, may receive any salary or other compensation (except 

for compensation for services on boards of directors of other organizations that do not receive funds from the Corporation, on committees of such boards, and in similar activities for such organizations) 

from any sources other than the Corporation for services rendered 

during the period of his or her employment by the Corporation. 

Service by any officer on boards of directors of other organizations, 

on committees of such boards, and in similar activities for such organizations shall be subject to annual advance approval by the 

Board and subject to the provisions of the Corporation’s Statement 

of Ethical Conduct. All officers shall serve at the pleasure of the 

Board. 

(2) Except as provided in the second sentence of subsection (c)(1) 

of this section, no political test or qualification shall be used in selecting, appointing, promoting, or taking other personnel actions 

with respect to officers, agents, and employees of the Corporation. 


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Nonprofit and Nonpolitical Nature of the Corporation 

(f)(1) The Corporation shall have no power to issue any shares 

of stock, or to declare or pay any dividends. 

(2) No part of the income or assets of the Corporation shall inure 

to the benefit of any director, officer, employee, or any other individual except as salary or reasonable compensation for services. 

(3) The Corporation may not contribute to or otherwise support 

any political party or candidate for elective public office. 

Purposes and Activities of Corporation 

(g)(1) In order to achieve the objectives and to carry out the purposes of this subpart, as set out in subsection (a), the Corporation 

is authorized to— 

(A) facilitate the full development of public telecommunications in which programs of high quality, diversity, creativity, 

excellence, and innovation, which are obtained from diverse 

sources, will be made available to public telecommunications 

entities, with strict adherence to objectivity and balance in all 

programs or series of programs of a controversial nature; 

(B) assist in the establishment and development of one or 

more interconnection systems to be used for the distribution of 

public telecommunications services so that all public telecommunications entities may disseminate such services at 

times chosen by the entities; 

(C) assist in the establishment and development of one or 

more systems of public telecommunications entities throughout 

the United States; and 

(D) carry out its purposes and functions and engage in its activities in ways that will most effectively assure the maximum 

freedom of the public telecommunications entities and systems 

from interference with, or control of, program content or other 

activities. 

(2) In order to carry out the purposes set forth in subsection (a), 

the Corporation is authorized to— 

(A) obtain grants from and make contracts with individuals 

and with private, State, and Federal agencies, organizations, 

and institutions; 

(B) contract with or make grants to public telecommunications entities, national, regional, and other systems of public 

telecommunications entities, and independent producers and 

production entities, for the production or acquisition of public 

telecommunications services to be made available for use by 

public telecommunications entities, except that— 

(i) to the extent practicable, proposals for the provision 

of assistance by the Corporation in the production or acquisition of programs or series of programs shall be evaluated on the basis of comparative merit by panels of outside 

experts, representing diverse interests and perspectives, 

appointed by the Corporation; and 

(ii) nothing in this subparagraph shall be construed to 

prohibit the exercise by the Corporation of its prudent 

business judgement with respect to any grant to assist in 

the production or acquisition of any program or series of 

programs recommended by any such panel; 


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(C) make payments to existing and new public telecommunications entities to aid in financing the production or acquisition 

of public telecommunications services by such entities, particularly innovative approaches to such services, and other costs of 

operation of such entities; 

(D) establish and maintain, or contribute to, a library and 

archives of noncommercial educational and cultural radio and 

television programs and related materials and develop public 

awareness of, and disseminate information about, public telecommunications services by various means, including the publication of a journal; 

(E) arrange, by grant to or contract with appropriate public 

or private agencies, organizations, or institutions, for interconnection facilities suitable for distribution and transmission 

of public telecommunications services to public telecommunications entities; 

(F) hire or accept the voluntary services of consultants, experts, advisory boards, and panels to aid the Corporation in 

carrying out the purposes of this subpart; 

(G) conduct (directly or through grants or contracts) research, demonstrations, or training in matters related to public 

television or radio broadcasting and the use of nonbroadcast 

communications technologies for the dissemination of noncommercial educational and cultural television or radio programs; 

(H) make grants or contracts for the use of nonbroadcast 

telecommunications technologies for the dissemination to the 

public of public telecommunications services; and 

(I) take such other actions as may be necessary to accomplish the purposes set forth in subsection (a). 

Nothing contained in this paragraph shall be construed to commit 

the Federal Government to provide any sums for the payment of 

any obligation of the Corporation which exceeds amounts provided 

in advance in appropriation Acts. 

(3) To carry out the foregoing purposes and engage in the foregoing activities, the Corporation shall have the usual powers conferred upon a nonprofit corporation by the District of Columbia 

Nonprofit Corporation Act (D.C. Code, sec. 29–1001 et seq.), except 

that the Corporation is prohibited from— 

(A) owning or operating any television or radio broadcast station, system, or network, community antenna television system, interconnection system or facility, program production facility, or any public telecommunications entity, system, or network; and 

(B) producing programs, scheduling programs for dissemination, or disseminating programs to the public. 

(4) All meetings of the Board of Directors of the Corporation, including any committee of the Board, shall be open to the public 

under such terms, conditions, and exceptions as are set forth in 

subsection (k)(4). 

(5) The Corporation, in consultation with interested parties, shall 

create a 5-year plan for the development of public telecommunications services. Such plan shall be updated annually by the Corporation. 


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Interconnection Service 

(h)(1) Nothing in this Act, or in any other provision of law, shall 

be construed to prevent United States communications common 

carriers from rendering free or reduced rate communications interconnection services for public television or radio services, subject to 

such rules and regulations as the Commission may prescribe. 

(2) Subject to such terms and conditions as may be established 

by public telecommunications entities receiving space satellite 

interconnection facilities or services purchased or arranged for, in 

whole or in part, with funds authorized under this part, other public telecommunications entities shall have reasonable access to such 

facilities or services for the distribution of educational and cultural 

programs to public telecommunications entities. Any remaining capacity shall be made available to other persons for the transmission of noncommercial educational and cultural programs and 

program information relating to such programs, to public telecommunications entities, at a charge or charges comparable to the 

charge or charges, if any, imposed upon a public 

telecommunciations entity for the distribution of noncommercial 

educational and cultural programs to public telecommunications 

entities. No such person shall be denied such access whenever sufficient capacity is available. 

øReport to Congress 

ø(i)(1) The Corporation shall submit an annual report for the preceding fiscal year ending September 30 to the President for transmittal to the Congress on or before the 15th day of May of each 

year. The report shall include— 

ø(A) a comprehensive and detailed report of the Corporation’s operations, activities, financial condition, and accomplishments under this subpart and such recommendations as 

the Corporation deems appropriate; 

ø(B) a comprehensive and detailed inventory of funds distributed by Federal agencies to public telecommunications entities 

during the preceding fiscal year; 

ø(C) a listing of each organization that receives a grant from 

the Corporation to produce programming, the name of the producer of any programming produced under each such grant, 

the title or description of any program so produced, and the 

amount of each such grant; 

ø(D) the summary of the annual report provided to the Secretary pursuant to section 398(b)(4). 

ø(2) The officers and directors of the Corporation shall be available to testify before appropriate committees of the Congress with 

respect to such report, the report of any audit made by the Comptroller General pursuant to subsection (1), or any other matter 

which such committees may determine.¿ 

Right to Repeal, Alter, or Amend 

(j) The right to repeal, alter, or amend this section at any time 

is expressly reserved. 


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Financing; Open Meetings and Financial Records 

(k)(1)(A) There is hereby established in the Treasury a fund 

which shall be known as the Public Broadcasting Fund (hereinafter 

in this subsection referred to as the ‘‘Fund’’), to be administered by 

the Secretary of the Treasury. 

(B) There is authorized to be appropriated to the Fund, for each 

of the fiscal years 1978, 1979 and 1980, an amount equal to 40 percent of the total amount of non-Federal financial support received 

by public broadcasting entities during the fiscal year second preceding each such fiscal year, except that the amount so appropriated shall not exceed $121,000,000 for fiscal year 1978, 

$140,000,000 for fiscal year 1979, and $160,000,000 for fiscal year 

1980. 

(C) There is authorized to be appropriated to the Fund, for each 

of the fiscal years 1981, 1982, 1983, 1984, 1985, 1986, 1987, 1988, 

1989, 1990, 1991, 1992, and 1993, an amount equal to 40 percent 

of the total amount of non-Federal financial support received by 

public broadcasting entities during the fiscal year second preceding 

each such fiscal year, except that the amount so appropriated shall 

not exceed $265,000,000 for fiscal year 1992, $285,000,000 for fiscal 

year 1993, $310,000,000 for fiscal year 1994, $375,000,000 for fiscal 

year 1995, and $425,000,000 for fiscal year 1996. 

(D) In addition to any amounts authorized under any 

other provision of this or any other Act to be appropriated 

to the Fund, $20,000,000 are hereby authorized to be appropriated to the Fund (notwithstanding any other provision of this subsection) specifically for transition from the 

use of analog to digital technology for the provision of public broadcasting services for fiscal year 2001. 

(E) Funds appropriated under this subsection shall remain available until expended. 

ø(F) In recognition of the importance of educational programs 

and services, and the expansion of public radio services, to 

unserved and underserved audiences, the Corporation, after consultation with the system of public telecommunications entities, 

shall prepare and submit to the Congress an annual report for each 

of the fiscal years 1994, 1995, and 1996 on the Corporation’s activities and expenditures relating to those programs and services.¿ 

(2)(A) The funds authorized to be appropriated by this subsection 

shall be used by the Corporation, in a prudent and financially responsible manner, solely for its grants, contracts, and administrative costs, except that the Corporation may not use any funds appropriated under this subpart for purposes of conducting any reception, or providing any other entertainment, for any officer or employee of the Federal Government or any State or local government. The Corporation shall determine the amount of non-Federal 

financial support received by public broadcasting entities during 

each of the fiscal years referred to in paragraph (1) for the purpose 

of determining the amount of each authorization, and shall certify 

such amount to the Secretary of the Treasury, except that the Corporation may include in its certification non-Federal financial support received by a public broadcasting entity during its most recent 

fiscal year ending before September 30 of the year for which certification is made. Upon receipt of such certification, the Secretary of 


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the Treasury shall make available to the Corporation, from such 

funds as may be appropriated to the Fund, the amount authorized 

for each of the fiscal years pursuant to the provisions of this subsection. 

(B) Funds appropriated and made available under this subsection 

shall be disbursed by the Secretary of the Treasury on a fiscal year 

basis. 

(3)(A)(i) The Corporation shall establish an annual budget for use 

in allocating amounts from the Fund. Of the amounts appropriated 

into the Fund available for allocation for any fiscal year— 

(I) $10,200,000 shall be available for the administrative expenses of the Corporation for fiscal year 1989, and for each 

succeeding fiscal year the amount which shall be available for 

such administrative expenses shall be the sum of the amount 

made available to the Corporation under this subclause for 

such expenses in the preceding fiscal year plus the greater of 

4 percent of such amount or a percentage of such amount equal 

to the percentage change in the Consumer Price Index, except 

that none of the amounts allocated under subclauses (II), (III), 

and (IV) and clause (v) shall be used for any administrative expenses of the Corporation and not more than 5 percent of all 

the amounts appropriated into the Fund available for allocation for any fiscal year shall be available for such administrative expenses; 

(II) 6 percent of such amounts shall be available for expenses 

incurred by the Corporation for capital costs relating to telecommunications satellites, the payment of programming royalties and other fees, the costs of interconnection facilities and 

operations (as provided in clause (iv)(I)), and grants which the 

Corporation may make for assistance to stations that broadcast 

programs in languages other than English or for assistance in 

the provision of affordable training programs for employees at 

public broadcast stations, and if the available funding level 

permits, for projects and activities that will enhance public 

broadcasting; 

(III) 75 percent of the remainder (after allocations are made 

under subclause (I) and subclause (II)) shall be allocated in accordance with clause (ii); 

(IV) 25 percent of such remainder shall be allocated in accordance with clause (iii). 

(ii) Of the amounts allocated under clause (i)(III) for any fiscal 

year— 

(I) 75 percent of such amounts shall be available for distribution among the licensees and permittees of public television 

stations pursuant to paragraph (6)(B); and 

(II) 25 percent of such amounts shall be available for distribution under subparagraph (B)(i), and in accordance with 

any plan implemented under paragraph (6)(A), for national 

public television programming. 

(iii) Of the amounts allocated under clause (i)(IV) for any fiscal 

year— 

(I) 70 percent of such amounts shall be available for distribution among the licensees and permittees of public radio stations pursuant to paragraph (6)(B); 


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(II) 7 percent of such amounts shall be available for distribution under subparagraph (B)(i) for public radio programming; 

and 

(III) 23 percent of such amounts shall be available for distribution among the licensees and permittees of public radio 

stations pursuant to paragraph (6)(B), solely to be used for acquiring or producing programming that is to be distributed nationally and is designed to serve the needs of a national audience. 

(iv)(I) From the amount provided pursuant to clause (i)(II), the 

Corporation shall defray an amount equal to 50 percent of the total 

costs of interconnection facilities and operations to facilitate the 

availability of public television and radio programs among public 

broadcasts stations. 

(II) Of the amounts received as the result of any contract, lease 

agreement, or any other arrangement under which the Corporation 

directly or indirectly makes available interconnection facilities, 50 

percent of such amounts shall be distributed to the licensees and 

permittees of public television stations and public radio stations. 

The Corporation shall not have any authority to establish any requirements, guidelines, or limitations with respect to the use of 

such amounts by such licensees and permittees. 

(v) Of the interest on the amounts appropriated into the Fund 

which is available for allocation for any fiscal year— 

(I) 75 percent shall be available for distribution for the purposes referred to in clause (ii)(II); and 

(II) 25 percent shall be available for distribution for the purposes referred to in clause (ii)(II) and (III). 

(B)(i) The Corporation shall utilize the funds allocated pursuant 

to subparagraph (A)(ii)(II) and subparagraph (A)(iii)(II) to make 

grants for production of public television or radio programs by independent producers and production entities and public telecommunications entities, producers of national children’s educational programming, and producers of programs addressing the needs and interest of minorities, and for acquisition of such programs by public 

telecommunications entities. The Corporation may make grants to 

public telecommunications entities and producers for the production of programs in languages other than English. Of the funds utilized pursuant to this clause, a substantial amount shall be distributed to independent producers and production entities, producers of 

national children’s educational programming, and producers of programming addressing the needs and interests of minorities for the 

production of programs. 

(ii) All funds available for distribution under clause (i) shall be 

distributed to entities outside the Corporation and shall not be 

used for the general administrative costs of the Corporation, the 

salaries or related expenses of Corporation personnel and members 

of the Board, or for expenses of consultants and advisers to the 

Corporation. 

(iii)(I) For fiscal year 1990 and succeeding fiscal years, the Corporation shall, in carrying out its obligations under clause (i) with 

respect to public television programming, provide adequate funds 

for an independent production service. 

(II) Such independent production service shall be separate from 

the Corporation and shall be incorporated under the laws of the 


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District of Columbia for the purpose of contracting with the Corporation for the expenditure of funds for the production of public 

television programs by independent producers and independent 

production entities. 

(III) The Corporation shall work with organizations or associations of independent producers or independent production entities 

to develop a plan and budget for the operation of such service that 

is acceptable to the Corporation. 

(IV) The Corporation shall ensure that the funds provided to 

such independent production service shall be used exclusively in 

pursuit of the Corporation’s obligation to expand the diversity and 

innovativeness of programming available to public broadcasting. 

ø(V) The Corporation shall report annually to Congress regarding 

the activities and expenditures of the independent production service, including carriage and viewing information for programs produced or acquired with funds provided pursuant to subclause (I). 

At the end of fiscal years 1992, 1993, 1994, and 1995, the Corporation shall submit a report to Congress evaluating the performance 

of the independent production service in light of its mission to expand the diversity and innovativeness of programming available to 

public broadcasting.¿ 

(VI) The Corporation shall not contract to provide funds to any 

such independent production service, unless that service agrees to 

comply with public inspection requirements established by the Corporation within 3 months after the date of enactment of this subclause. Under such requirements the service shall maintain at its 

offices a public file, updated regularly, containing information relating to the service’s award of funds for the production of programming. The information shall be available for public inspection and 

copying for at least 3 years and shall be of the same kind as the 

information required to be maintained by the Corporation under 

subsection (l)(4)(B). 

(4) Funds may not be distributed pursuant to this subsection to 

the Public Broadcasting Service or National Public Radio (or any 

successor organization), or to the licensee or permittee of any public broadcast station, unless the governing body of any such organization, any committee of such governing body, or any advisory body 

of any such organization, holds open meetings preceded by reasonable notice to the public. All persons shall be permitted to attend 

any meeting of the board, or of any such committee or body, and 

no person shall be required, as a condition to attendance at any 

such meeting, to register such person’s name or to provide any 

other information. Nothing contained in this paragraph shall be 

construed to prevent any such board, committee, or body from holding closed sessions to consider matters relating to individual employees, proprietary information, litigation and other matters requiring the confidential advice of counsel, commercial or financial 

information obtained from a person on a privileged or confidential 

basis, or the purchase of property or services whenever the premature exposure of such purchase would compromise the business 

interests of any such organization. If any such meeting is closed 

pursuant to the provisions of this paragraph, the organization involved shall thereafter (within a reasonable period of time) make 

available to the public a written statement containing an explanation of the reasons for closing the meeting. 


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(5) Funds may not be distributed pursuant to this subsection to 

any public telecommunications entity that does not maintain for 

public examination copies of the annual financial and audit reports, 

or other information regarding finances, submitted to the Corporation pursuant to subsection (1)(3)(B). 

(6)(A) The Corporation shall conduct a study and prepare a plan 

in consultation with public television licensees (or designated representatives of those licensees) and the Public Broadcasting Service, on how funds available to the Corporation under paragraph 

(3)(A)(ii)(II) can be best allocated to meet the objectives of this Act 

with regard to national public television programming. The plan, 

which shall be based on the conclusions resulting from the study, 

shall be submitted by the Corporation to the Congress not later 

than January 31, 1990. Unless directed otherwise by an Act of Congress, the Corporation shall implement the plan during the first 

fiscal year beginning after the fiscal year in which the plan is submitted to Congress. 

(B) The Corporation shall make a basic grant from the portion 

reserved for television stations under paragraph (3)(A)(ii)(I) to each 

licensee and permittee of a public television station that is on the 

air. The Corporation shall assist radio stations to maintain and improve their service where public radio is the only broadcast service 

available. The balance of the portion reserved for television stations and the total portion reserved for radio stations under paragraph (3)(A)(iii)(I) shall be distributed to licensees and permittees 

of such stations in accordance with eligibility criteria (which the 

Corporation shall review periodically in consultation with public 

radio and television licensees or permittees, or their designated 

representatives) that promote the public interest in public broadcasting, and on the basis of a formula designed to— 

(i) provide for the financial needs and requirements of stations in relation to the communities and audiences such stations undertake to serve; 

(ii) maintain existing, and stimulate new, sources of nonFederal financial support for stations by providing incentives 

for increases in such support; and 

(iii) assure that each eligible licensee and permittee of a public radio station receives a basic grant. 

(7) The funds distributed pursuant to paragraph (3)(A)(ii)(I) and 

(iii)(I) may be used at the discretion of the recipient for purposes 

related primarily to the production or acquisition of programming. 

(8)(A) Funds may not be distributed pursuant to this subpart to 

any public broadcast station (other than any station which is 

owned and operated by a state, a political or special purpose subdivision of a state or a public agency) unless such station establishes a community advisory board. Any such station shall undertake good faith efforts to assure that (i) its advisory board meets 

at regular intervals; (ii) the members of its advisory board regularly attend the meetings of the advisory board; and (iii) the composition of its advisory board are reasonably representative of the 

diverse needs and interests of the communities served by such station. 

(B) The board shall be permitted to review the programming 

goals established by the station, the service provided by the station, and the significant policy decisions rendered by the station. 


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The board may also be delegated any other responsibilities, as determined by the governing body of the station. The board shall advise the governing body of the station with respect to whether the 

programming and other policies of such station are meeting the 

specialized educational and cultural needs of the communities 

served by the station, and may make such recommendations as it 

considers appropriate to meet such needs. 

(C) The role of the board shall be solely advisory in nature, except to the extent other responsibilities are delegated to the board 

by the governing body of the station. In no case shall the board 

have any authority to exercise any control over the daily management or operation of the station. 

(D) In the case of any public broadcast station (other than any 

station which is owned and operated by a state, a political or special purpose subdivision of a State, or a public agency) in existence 

on the effective date of this paragraph, such station shall comply 

with the requirements of this paragraph with respect to the establishment of a community advisory board not later than 180 days 

after such effective date. 

(E) The provision of subparagraph (A) prohibiting the distribution of funds to any public broadcast station (other than any station which is owned and operated by a State, a political or special 

purpose subdivision of a State, or a public agency) unless such station establishes a community advisory board shall be the exclusive 

remedy for the enforcement of the provisions of this paragraph. 

(9) Funds may not be distributed pursuant to this subsection to 

the Public Broadcasting Service or National Public Radio (or any 

successor organization) unless assurances are provided to the Corporation that no officer or employee of the Public Broadcasting 

Service or National Public Radio (or any successor organization), as 

the case may be, will be compensated in excess of reasonable compensation as determined pursuant to Section 4958 of the Internal 

Revenue Code for services that the officer or employee renders to 

organization, and unless further assurances are provided to the 

Corporation that no officer or employee of such an entity will be 

loaned money by that entity on an interest-free basis. 

(10)(A) There is hereby established in the Treasury a fund which 

shall be known as the Public Broadcasting Satellite Interconnection 

Fund (hereinafter in this subsection referred to as the ‘‘Satellite 

Interconnection Fund’’), to be administered by the Secretary of the 

Treasury. 

(B) There is authorized to be appropriated to the Satellite Interconnection Fund, for fiscal year 1991, the amount of $200,000,000. 

If such amount is not appropriated in full for fiscal year 1991, the 

portion of such amount not yet appropriated is authorized to be 

approriated for fiscal years 1992 and 1993. Funds appropriated to 

the Satellite Interconnection Fund shall remain available until expended. 

(C) The Secretary of the Treasury shall make available and disburse to the Corporation, at the beginning of fiscal year 1991 and 

of each succeeding fiscal year thereafter, such funds as have been 

appropriated to the Satellite Interconnection Fund for the fiscal 

year in which such disbursement is to be made. 


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(D) Notwithstanding any other provision of this subsection except 

paragraphs (4), (5), (8), and (9), all funds appropriated to the Satellite Interconnection Fund and interest thereon— 

(i) shall be distributed by the Corporation to the licensees 

and permittees of noncommercial educational television broadcast stations providing public telecommunications services or 

the national entity they designate for satellite interconnection 

purposes and to those public telecommunications entities participating in the public radio satellite interconnection system 

or the national entity they designate for satellite interconnection purposes, exclusively for the capital costs of the replacement, refurbishment, or upgrading of their national satellite 

interconnection systems and associated maintenance of such 

systems; and 

(ii) shall not be used for the administrative costs of the Corporation, the salaries or related expenses of Corporation personnel and members of the Board, or for expenses of consultants and advisers to the Corporation. 

(11)(A) Funds may not be distributed pursuant to this subsection 

for any fiscal year to the licensee or permittee of any public broadcast station if such licensee or permittee— 

(i) fails to certify to the Corporation that such licensee or 

permittee complies with the Commission’s regulations concerning equal employment opportunity as published under section 73.2080 of title 47, Code of Federal Regulations, or any 

successor regulations thereto; or 

(ii) fails to submit to the Corporation the report required by 

subparagraph (B) for the preceding calendar year. 

(B) A licensee or permittee of any public broadcast station with 

more than five full-time employees to file annually with the Corporation a statistical report, consistent with reports required by 

Commission regulation, identifying by race and sex the number of 

employees in each of the following full-time and part-time job categories: 

(i) Officials and managers. 

(ii) Professionals. 

(iii) Technicians. 

(iv) Semiskilled operatives. 

(v) Skilled craft persons. 

(vi) Clerical and office personnel. 

(vii) Unskilled operatives. 

(viii) Service workers. 

(C) In addition, such report shall state the number of job openings occurring during the course of the year. Where the job openings were filled in accordance with the regulations described in 

subparagraph (A)(i), the report shall so certify, and where the job 

openings were not filled in accordance with such regulations, the 

report shall contain a statement providing reasons therefor. The 

statistical report shall be available to the public at the central office and at every location where more than five full-time employees 

are regularly assigned to work. 

(12) Funds may not be distributed under this subsection to any 

public broadcasting entity that directly or indirectly— 

(A) rents contributor or donor names (or other personally 

identifiable information) to or from, or exchanges such names 


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or information with, any Federal, State, or local candidate, political party, or political committee; or 

(B) discloses contributor or donor names, or other personally 

identifiable information, to any nonaffiliated third party unless— 

(i) such entity clearly and conspicuously discloses to the 

contributor or donor that such information may be disclosed to such third party; 

(ii) the contributor or donor is given the opportunity, before the time that such information is initially disclosed, to 

direct that such information not be disclosed to such third 

party; and 

(iii) the contributor or donor is given an explanation of 

how the contributor or donor may exercise that nondisclosure option. 

Records and Audit 

(l)(1)(A) The accounts of the Corporation shall be audited annually in accordance with generally accepted auditing standards by 

independent certified public accountants or independent licensed 

public accountants certified or licensed by a regulatory authority of 

a State or other political subdivision of the United States, except 

that such requirements shall not preclude shared auditing arrangements between any public telecommunications entity and its licensee where such licensee is a public or private institution. The 

audits shall be conducted at the place or places where the accounts 

of the Corporation are normally kept. All books, accounts, financial 

records, reports, files, and all other papers, things, or property belonging to or in use by the Corporation and necessary to facilitate 

the audits shall be made available to the person or persons conducting the audits; and full facilities for verifying transactions with 

the balances or securities held by depositories, fiscal agents and 

custodians shall be afforded to such person or persons. 

(B) The report of each such independent audit øshall be included 

in the annual report required by subsection (i) of this section. The 

audit report¿ shall set forth the scope of the audit and include such 

statements as are necessary to present fairly the Corporation’s assets and liabilities, surplus or deficit, with an analysis of the 

changes therein during the year, supplemented in reasonable detail 

by a statement of the Corporation’s income and expenses during 

the year, and a statement of the sources and application of funds, 

together with the independent author’s opinion of those statements. 

(2)(A) The financial transactions of the Corporation for any fiscal 

year during which Federal funds are available to finance any portion of its operations may be audited by the General Accounting Office in accordance with the principles and procedures applicable to 

commercial corporate transactions and under such rules and regulations as may be prescribed by the Comptroller General of the 

United States. Any such audit shall be conducted at the place or 

places where accounts of the Corporation are normally kept. The 

representative of the General Accounting Office shall have access 

to all books, accounts, records, reports, files, and all other papers, 

things, or property belonging to or in use by the Corporation pertaining to its financial transactions and necessary to facilitate the 

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actions with the balances or securities held by depositories, fiscal 

agents, and custodians. All such books, accounts, records, reports, 

files, papers and property of the Corporation shall remain in possession and custody of the Corporation. 

(B) A report of each such audit shall be made by the Comptroller 

General to the Congress. The report to the Congress shall contain 

such comments and information as the Comptroller General may 

deem necessary to inform Congress of the financial operations and 

condition of the Corporation, together with such recommendations 

with respect thereto as he may deem advisable. The report shall 

also show specifically any program, expenditure, or other financial 

transaction or undertaking observed in the course of the audit, 

which, in the opinion of the Comptroller General, has been carried 

on or made without authority of law. A copy of each report shall 

be furnished to the President, to the Secretary, and to the Corporation at the time submitted to the Congress. 

(3)(A) Not later than 1 year after the effective date of this paragraph, the Corporation, in consultation with the Comptroller General, and as appropriate with others, shall develop accounting principles which shall be used uniformly by all public telecommunications entities receiving funds under this subpart, taking into account organizational differences among various categories of such 

entites. Such principles shall be designed to account fully for all 

funds received and expended for public telecommunications purposes by such entities. 

(B) Each public telecommunications entity receiving funds under 

this subpart shall be required— 

(i) to keep its books, records, and accounts in such form as 

may be required by the Corporation; 

(ii)(I) to undergo a biennial audit by independent certified 

public accountants or independent licensed public accountants 

certified or licensed by a regulatory authority of a State, which 

audit shall be in accordance with auditing standards developed 

by the Corporation, in consultation with the Comptroller General; or 

(II) to submit a financial statement in lieu of the audit required by subclause (I) if the Corporation determines that the 

cost burden of such audit on such entity is excessive in light 

of the financial condition of such entity; and 

(iii) to furnish biennuially to the Corporation a copy of the 

audit report required pursuant to the clause (ii), as well as 

such other information regarding finances (including an annual 

financial report) as the Corporation may require. 

(C) Any recipient of assistance by grant or contract under this 

section, other than a fixed price contract awarded pursuant to competitive bidding procedures, shall keep such records as may be reasonably necessary to disclose fully the amount and the disposition 

by such recipient of such assistance, that total cost of the project 

or undertaking in connection with which such assistance is given 

or used, and the amount and nature of that portion of the cost of 

the projects or undertaking supplied by other sources, and such 

other records as will facilitate an effective audit. 

(D) The Corporation or any of its duly authorized representatives 

shall have access to any books, documents, papers, and records of 

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ining all funds received or expended for public telecommunications 

purposes by the recipient. The Comptroller General of the United 

States or any of his duly authorized representatives also shall have 

access to such books, documents, papers, and records for the purpose of auditing and examining all funds received or expended for 

public telecommunications purposes during any fiscal year for 

which Federal funds are available to the Corporation. 

(4)(A) The Corporation shall maintain the information described 

in subparagraphs (B), (C), and (D) at its offices for public inspection and copying for at least 3 years, according to such reasonable 

guidelines as the Corporation may issue. This public file shall be 

updated regularly. This paragraph shall be effective upon its enactment and shall apply to all grants awarded after January 1, 1993. 

(B) Subsequent to any award of funds by the Corporation for the 

production or acquisition of national broadcasting programming 

pursuant to subsection (k)(3)(A) (ii)(II) or (iii)(II), the Corporation 

shall make available for public inspection the following: 

(i) Grant and solicitation guidelines for proposals for such 

programming. 

(ii) The reasons for selecting the proposal for which the 

award was made. 

(iii) Information on each program for which the award was 

made, including the names of the awardee and producer (and 

if the awardee or producer is a corporation or partnership, the 

principals of such corporation or partnership), the monetary 

amount of the award, and the title and description of the program (and of each program in a series of programs). 

(iv) A report based on the final audit findings resulting from 

any audit of the award by the Corporation or the Comptroller 

General. 

(v) Reports which the Corporation shall require to be provided by the awardee relating to national public broadcasting 

programming funded, produced, or acquired by the awardee 

with such funds. Such reports shall include, where applicable, 

the information described in clauses (i), (ii), and (iii), but shall 

exclude proprietary, confidential, or privileged information. 

(C) The Corporation shall make available for public inspection 

the final report required by the Corporation on an annual basis 

from each recipient of funds under subsection (k)(3)(A)(iii)(III), excluding proprietary, confidential, or privileged information. 

(D) The Corporation shall make available for public inspection an 

annual list of national programs distributed by public broadcasting 

entities that receive funds under subsection (k)(3)(A) (ii)(III) or 

(iii)(II) and are engaged primarily in the national distribution of 

public television or radio programs. Such list shall include the 

names of the programs (or program series), producers, and providers of funding. 

ø(m)(1) Prior to July 1, 1989, and every three years thereafter, 

the Corporation shall compile an assessment of the needs of minority and diverse audiences, the plans of public broadcasting entities 

and public telecommunications entities to address such needs, the 

ways radio and television can be used to help these underrepresented groups, and projections concerning minority employment 

by public broadcasting entities and public telecommunications entities. Such assessment shall address the needs of racial and ethnic 


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minorities, new immigrant populations, people for whom English is 

a second language, and adults who lack basic reading skills. 

ø(2) Commencing July 1, 1989, the Corporation shall prepare an 

annual report on the provision by public broadcasting entities and 

public telecommunications entities of service to the audiences described in paragraph (1). Such report shall address programming 

(including that which is produced by minority producers), training, 

minority employment, and efforts by the Corporation to increase 

the number of minority public radio and television stations eligible 

for financial support from the Corporation. Such report shall include a summary of the statistical reports received by the Corporation pursuant to subsection (k)(11), and a comparison of the information contained in those reports with the information submitted 

by the Corporation in the previous year’s annual report. 

ø(3) As soon as they have been prepared, each assessment and 

annual report required under paragraphs (1) and (2) shall be submitted to Congress.¿ 

Subpart E—General 

* * * * * * * 

SEC. 398. FEDERAL INTERFERENCE OR CONTROL PROHIBITED; 

EQUAL EMPLOYMENT OPPORTUNITY. 

(a) Nothing contained in this part shall be deemed (1) to amend 

any other provision of, or requirement under, this Act; or (2) except 

to the extent authorized in subsection (b), to authorize any department, agency, officer, or employee of the United States to exercise 

any direction, supervision, or control over public telecommunications, or over the Corporation or any of its grantees or contractors, or over the charter or bylaws of the Corporation, or over the 

curriculum, program of instruction, or personnel of any educational 

institution, school system, or public telecommunications entity. 

(b)(1) Equal opportunity in employment shall be afforded to all 

persons by the Public Broadcasting Service and National Public 

Radio (or any successor organization) and by all public telecommunications entities receiving funds pursuant to subpart C 

(hereinafter in this subsection referred to as ‘‘recipients’’), in accordance with the equal employment opportunity regulations of the 

Commission, and no person shall be subjected to discrimination in 

employment by any recipient on the grounds of race, color, religion, 

national origin, or sex. 

(2)(A) The Secretary is authorized and directed to enforce this 

subsection and to prescribe such rules and regulations as may be 

necessary to carry out the functions of the Secretary under this 

subsection. 

(B) The Secretary shall provide for close coordination with the 

Commission in the administration of the responsibilities of the Secretary under this subsection which are of interest to or affect the 

functions of the Commission so that, to the maximum extent possible consistent with the enforcement responsibilities of each, the 

reporting requirements of public telecommunications entities shall 

be uniformly based upon consistent definitions and categories of information. 

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fective date of the rules and regulations prescribed by the Secretary pursuant to paragraph (2)(A), a statement indicating that, 

as a material part of the terms and conditions of the grant agreement or contract, the recipient will comply with the provisions of 

paragraph (1) and the rules and regulations prescribed pursuant to 

paragraph (2)(A). Any person which desires to be a recipient (within the meaning of paragraph (1)) of funds under subpart C shall, 

before receiving any such funds, provide to the Corporation any information which the Corporation may require to satisfy itself that 

such person is affording equal opportunity in employment in accordance with the requirements of this subsection. Determinations 

made by the Corporation in accordance with the preceding sentence 

shall be based upon guidelines relating to equal opportunity in employment which shall be established by rule by the Secretary. 

(B) If the Corporation is not satisfied that any such person is affording equal opportunity in employment in accordance with the requirements of this subsection, the Corporation shall notify the Secretary, and the Secretary shall review the matter and make a final 

determination regarding whether such person is affording equal opportunity in employment. In any case in which the Secretary conducts a review under the preceding sentence the Corporation shall 

make funds available to the person involved pursuant to the grant 

application of such person (if the Corporation would have approved 

such application but for the finding of the Corporation under this 

paragraph) pending a final determination of the Secretary upon 

completion of such review. The Corporation shall monitor the equal 

employment opportunity practices of each recipient throughout the 

duration of the grant or contract. 

(C) The provisions of subparagraph (A) and subparagraph (B) 

shall take effect on the effective date of the rules and regulations 

prescribed by the Secretary pursuant to paragraph (2)(A). 

(4) Based upon its responsibilities under paragraph (3), the Corporation shall provide an annual report for the preceding fiscal 

year ending September 30 to the Secretary on or before the 15th 

day of February of each year. The report shall contain information 

in the form required by the Secretary. øThe Corporation shall submit a summary of such report to the President and the Congress 

as part of the report required in section 396(i).¿ The Corporation 

shall provide other information in the form which the Secretary 

may require in order to carry out the functions of the Secretary 

under this subsection. 

(5) Whenever the Secretary makes a final determination, pursuant to the rules and regulations which the Secretary shall prescribe, that a recipient is not in compliance with paragraph (1), the 

Secretary shall within 10 days after such determination, notify the 

recipient in writing of such determination and request the recipient 

to secure compliance. Unless the recipient within 120 days after receipt of such written notice— 

(A) demonstrates to the Secretary that the violation has been 

corrected; or 

(B) enters into a compliance agreement approved by the Secretary; 

the Secretary shall direct the Corporation to reduce or suspend any 

further payments of funds under this part to the recipient and the 

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ments shall take place only when the Secretary certifies to the Corporation that the recipient has entered into a compliance agreement approved by the Secretary. A recipient whose funds have 

been reduced or suspended under this paragraph may apply at any 

time to the Secretary for such certification. 

(c) Nothing in this section shall be construed to authorize any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over the content or distribution of public telecommunications programs and services, or 

over the curriculum or program of instruction of any educational 

institution or school system. 

* * * * * * * 

TITLE VI—CABLE COMMUNICATIONS 

* * * * * * * 

PART II—USE OF CABLE CHANNELS AND 

CABLE OWNERSHIP RESTRICTIONS 

* * * * * * * 

SEC. 613. OWNERSHIP RESTRICTIONS. 

(a) It shall be unlawful for a cable operator to hold a license for 

multichannel multipoint distribution service, or to offer satellite 

master antenna television service separate and apart from any 

franchised cable service, in any portion of the franchise area served 

by that cable operator’s cable system. The Commission— 

(1) shall waive the requirements of this paragraph for all existing multichannel multipoint distribution services and satellite master antenna television services which are owned by a 

cable operator on the date of enactment of this paragraph; 

(2) may waive the requirements of this paragraph to the extent the Commission determines is necessary to ensure that all 

significant portions of a franchise area are able to obtain video 

programming; and 

(3) shall not apply the requirements of this subsection to any 

cable operator in any franchise area in which a cable operator 

is subject to effective competition as determined under section 

ø623(l)¿ 623(k). 

(c) The Commission may prescribe rules with respect to the ownership or control of cable systems by persons who own or control 

other media of mass communications which serve the same community served by a cable system. 

(d) Any State or franchising authority may not prohibit the ownership or control of a cable system by any person because of such 

person’s ownership or control of any other media of mass communications or other media interests. Nothing in this section shall be 

construed to prevent any State or franchising authority from prohibiting the ownership or control of a cable system in a jurisdiction 

by any person (1) because of such person’s ownership or control of 

any other cable system in such jurisdiction; or (2) in circumstances 

in which the State or franchising authority determines that the acVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00096 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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quisition of such a cable system may eliminate or reduce competition in the delivery of cable service in such jurisdiction. 

(e)(1) Subject to paragraph (2), a State or franchising authority 

may hold any ownership interest in any cable system. 

(2) Any State or franchising authority shall not exercise any editorial control regarding the content of any cable service on a cable 

system in which such governmental entity holds ownership interest 

(other than programming on any channel designated for educational or governmental use), unless such control is exercised 

through an entity separate from the franchising authority. 

(f)(1) In order to enhance effective competition, the Commission 

shall, within one year after the date of enactment of the Cable Television Consumer Protection and Competition Act of 1992, conduct 

a proceeding— 

(A) to prescribe rules and regulations establishing reasonable 

limits on the number of cable subscribers a person is authorized to reach through cable systems owned by such person, or 

in which such person has an attributable interest; 

(B) to prescribe rules and regulations establishing reasonable 

limits on the number of channels on a cable system that can 

be occupied by a video programmer in which a cable operator 

has an attributable interest; and 

(C) to consider the necessity and appropriateness of imposing 

limitations on the degree to which multichannel video programming distributors may engage in the creation or production of video programming. 

(2) In prescribing rules and regulations under paragraph (1), the 

Commission shall, among other public interest objectives— 

(A) ensure that no cable operator or group of cable operators 

can unfairly impede, either because of the size of any individual operator or because of joint actions by a group of operators of sufficient size, the flow of video programming from the 

video programmer to the consumer; 

(B) ensure that cable operators affiliated with video programmers do not favor such programmers in determining carriage on their cable systems or do not unreasonably restrict the 

flow of the video programming of such programmers to other 

video distributors; 

(C) take particular account of the market structure, ownership patterns, and other relationships of the cable television industry, including the nature and market power of the local 

franchise, the joint ownership of cable systems and video programmers, and the various types of non-equity controlling interests; 

(D) account for any efficiencies and other benefits that might 

be gained through increased ownership or control; 

(E) make such rules and regulations reflect the dynamic nature of the communications marketplace; 

(F) not impose limitations which would bar cable operators 

from serving previously unserved rural areas; and 

(G) not impose limitations which would impair the development of diverse and high quality video programming. 

(g) This section shall not apply to prohibit any combination of 

any interests held by any person on July 1, 1984, to the extent of 

the interests so held as of such date, if the holding of such interests 


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was not inconsistent with any applicable Federal or State law or 

regulations in effect on that date. 

(h) For purposes of this section, the term ‘‘media of mass communications’’ shall have the meaning given such term under section 

309(i)(3)(C)(i) of this Act. 

* * * * * * * 

PART III—FRANCHISING AND REGULATION 

* * * * * * * 

SEC. 623. REGULATION OF RATES. 

(a) COMPETITION PREFERENCE; LOCAL AND FEDERAL REGULATION.— 

(1) IN GENERAL.—No Federal agency or State may regulate 

the rates for the provision of cable service except to the extent 

provided under this section and section 612. Any franchising 

authority may regulate the rates for the provision of cable 

service, or any other communications service provided over a 

cable system to cable subscribers, but only to the extent provided under this section. No Federal agency, State, or franchising authority may regulate the rates for cable service of a 

cable system that is owned or operated by a local government 

or franchising authority within whose jurisdiction that cable 

system is located and that is the only cable system located 

within such jurisdiction. 

(2) PREFERENCE FOR COMPETITION.—If the Commission finds 

that a cable system is subject to effective competition, the rates 

for the provision of cable service by such system shall not be 

subject to regulation by the Commission or by a State or franchising authority under this section. If the Commission finds 

that a cable system is not subject to effective competition— 

(A) the rates for the provision of basic cable service shall 

be subject to regulation by a franchising authority, or by 

the Commission if the Commission exercises jurisdiction 

pursuant to paragraph (6), in accordance with the regulations prescribed by the Commission under subsection (b); 

and 

(B) the rates for cable programming services shall be 

subject to regulation by the Commission under subsection 

(c). 

(3) QUALIFICATION OF FRANCHISING AUTHORITY.—A franchising authority that seeks to exercise the regulatory jurisdiction permitted under paragraph (2)(A) shall file with the Commission a written certification that— 

(A) the franchising authority will adopt and administer 

regulations with respect to the rates subject to regulation 

under this section that are consistent with the regulations 

prescribed by the Commission under subsection (b); 

(B) the franchising authority has the legal authority to 

adopt, and the personnel to administer, such regulations; 

and 

(C) procedural laws and regulations applicable to rate 

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able opportunity for consideration of the views of interested parties. 

(4) APPROVAL BY COMMISSION.—A certification filed by a 

franchising authority under paragraph (3) shall be effective 30 

days after the date on which it is filed unless the Commission 

finds, after notice to the authority and a reasonable opportunity for the authority to comment, that— 

(A) the franchising authority has adopted or is administering regulations with respect to the rates subject to 

regulation under this section that are not consistent with 

the regulations prescribed by the Commission under subsection (b); 

(B) the franchising authority does not have the legal authority to adopt, or the personnel to administer, such regulations; or 

(C) procedural laws and regulations applicable to rate 

regulation proceedings by such authority do not provide a 

reasonable opportunity for consideration of the views of interested parties. 

If the Commission disapproves a franchising authority’s certification, the Commission shall notify the franchising authority of 

any revisions or modifications necessary to obtain approval. 

(5) REVOCATION OF JURISDICTION.—Upon petition by a cable 

operator or other interested party, the Commission shall review the regulation of cable system rates by a franchising authority under this subsection. A copy of the petition shall be 

provided to the franchising authority by the person filing the 

petition. If the Commission finds that the franchising authority 

has acted inconsistently with the requirements of this subsection, the Commission shall grant appropriate relief. If the 

Commission, after the franchising authority has had a reasonable opportunity to comment, determines that the State and 

local laws and regulations are not in conformance with the regulations prescribed by the Commission under subsection (b), 

the Commission shall revoke the jurisdiction of such authority. 

(6) EXERCISE OF JURISDICTION BY COMMISSION.—If the Commission disapproves a franchising authority’s certification 

under paragraph (4), or revokes such authority’s jurisdiction 

under paragraph (5), the Commission shall exercise the franchising authority’s regulatory jurisdiction under paragraph 

(2)(A) until the franchising authority has qualified to exercise 

that jurisdiction by filing a new certification that meets the requirements of paragraph (3). Such new certification shall be effective upon approval by the Commission. The Commission 

shall act to approve or disapprove any such new certification 

within 90 days after the date it is filed. 

(7) AGGREGATION OF EQUIPMENT COSTS.— 

(A) IN GENERAL.—The Commission shall allow cable operators, pursuant to any rules promulgated under subsection (b)(3), to aggregate, on a franchise, system, regional, or company level, their equipment costs into broad 

categories, such as converter boxes, regardless of the varying levels of functionality of the equipment within each 

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mitted with respect to equipment used by subscribers who 

receive only a rate regulated basic service tier. 

(B) REVISION TO COMMISSION RULES; FORMS.—Within 120 

days of the date of enactment of the Telecommunications 

Act of 1996, the Commission shall issue revisions to the 

appropriate rules and forms necessary to implement subparagraph (A). 

(b) ESTABLISHMENT OF BASIC SERVICE TIER RATE REGULA- TIONS.— 

(1) COMMISSION OBLIGATION TO SUBSCRIBERS.—The Commission shall, by regulation, ensure that the rates for the basic 

service tier are reasonable. Such regulations shall be designed 

to achieve the goal of protecting subscribers of any cable system that is not subject to effective competition from rates for 

the basic service tier that exceed the rates that would be 

charged for the basic service tier if such cable system were 

subject to effective competition. 

(2) COMMISSION REGULATIONS.—Within 180 days after the 

date of enactment of the Cable Television Consumer Protection 

and Competition Act of 1992, the Commission shall prescribe, 

and periodically thereafter revise, regulations to carry out its 

obligations under paragraph (1). In prescribing such regulations, the Commission— 

(A) shall seek to reduce the administrative burdens on 

subscribers, cable operators, franchising authorities, and 

the Commission; 

(B) may adopt formulas or other mechanisms and procedures in complying with the requirements of subparagraph 

(A); and 

(C) shall take into account the following factors: 

(i) the rates for cable systems, if any, that are subject to effective competition; 

(ii) the direct costs (if any) of obtaining, transmitting, and otherwise providing signals carried on the 

basic service tier, including signals and services carried on the basic service tier pursuant to paragraph 

(7)(B), and changes in such costs; 

(iii) only such portion of the joint and common costs 

(if any) of obtaining, transmitting, and otherwise providing such signals as is determined, in accordance 

with regulations prescribed by the Commission, to be 

reasonably and properly allocable to the basic service 

tier, and changes in such costs; 

(iv) the revenues (if any) received by a cable operator from advertising from programming that is carried as part of the basic service tier or from other consideration obtained in connection with the basic service tier; 

(v) the reasonably and properly allocable portion of 

any amount assessed as a franchise fee, tax, or charge 

of any kind imposed by any State or local authority on 

the transactions between cable operators and cable 

subscribers or any other fee, tax, or assessment of general applicability imposed by a governmental entity 

applied against cable operators or cable subscribers; 


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(vi) any amount required, in accordance with paragraph (4), to satisfy franchise requirements to support 

public, educational, or governmental channels or the 

use of such channels or any other services required 

under the franchise; and 

(vii) a reasonable profit, as defined by the Commission consistent with the Commission’s obligations to 

subscribers under paragraph (1). 

(3) EQUIPMENT.—The regulations prescribed by the Commission under this subsection shall include standards to establish, 

on the basis of actual cost, the price or rate for— 

(A) installation and lease of the equipment used by subscribers to receive the basic service tier, including a converter box and a remote control unit and, if requested by 

the subscriber, such addressable converter box or other 

equipment as is required to access programming described 

in paragraph (8); and 

(B) installation and monthly use of connections for additional television receivers. 

(4) COSTS OF FRANCHISE REQUIREMENTS.—The regulations 

prescribed by the Commission under this subsection shall include standards to identify costs attributable to satisfying franchise requirements to support public, educational, and governmental channels or the use of such channels or any other services required under the franchise. 

(5) IMPLEMENTATION AND ENFORCEMENT.—The regulations 

prescribed by the Commission under this subsection shall include additional standards, guidelines, and procedures concerning the implementation and enforcement of such regulations, which shall include— 

(A) procedures by which cable operators may implement 

and franchising authorities may enforce the regulations 

prescribed by the Commission under this subsection; 

(B) procedures for the expeditious resolution of disputes 

between cable operators and franchising authorities concerning the administration of such regulations; 

(C) standards and procedures to prevent unreasonable 

charges for changes in the subscriber’s selection of services 

or equipment subject to regulation under this section, 

which standards shall require that charges for changing 

the service tier selected shall be based on the cost of such 

change and shall not exceed nominal amounts when the 

system’s configuration permits changes in service tier selection to be effected solely by coded entry on a computer 

terminal or by other similarly simple method; and 

(D) standards and procedures to assure that subscribers 

receive notice of the availability of the basic service tier required under this section. 

(6) NOTICE.—The procedures prescribed by the Commission 

pursuant to paragraph (5)(A) shall require a cable operator to 

provide 30 days’ advance notice to a franchising authority of 

any increase proposed in the price to be charged for the basic 

service tier. 

(7) COMPONENTS OF BASIC TIER SUBJECT TO RATE REGULATION.— 


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(A) MINIMUM CONTENTS.—Each cable operator of a cable 

system shall provide its subscribers a separately available 

basic service tier to which subscription is required for access to any other tier of service. Such basic service tier 

shall, at a minimum, consist of the following: 

(i) All signals carried in fulfillment of the requirements of sections 614 and 615. 

(ii) Any public, educational, and governmental access programming required by the franchise of the 

cable system to be provided to subscribers. 

(iii) Any signal of any television broadcast station 

that is provided by the cable operator to any subscriber, except a signal which is secondarily transmitted by a satellite carrier beyond the local service 

area of such station. 

(B) PERMITTED ADDITIONS TO BASIC TIER.—A cable operator may add additional video programming signals or 

services to the basic service tier. Any such additional signals or services provided on the basic service tier shall be 

provided to subscribers at rates determined under the regulations prescribed by the Commission under this subsection. 

(8) BUY-THROUGH OF OTHER TIERS PROHIBITED.— 

(A) PROHIBITION.—A cable operator may not require the 

subscription to any tier other than the basic service tier required by paragraph (7) as a condition of access to video 

programming offered on a per channel or per program 

basis. A cable operator may not discriminate between subscribers to the basic service tier and other subscribers with 

regard to the rates charged for video programming offered 

on a per channel or per program basis. 

(B) EXCEPTION; LIMITATION.—The prohibition in subparagraph (A) shall not apply to a cable system that, by 

reason of the lack of addressable converter boxes or other 

technological limitations, does not permit the operator to 

offer programming on a per channel or per program basis 

in the same manner required by subparagraph (A). This 

subparagraph shall not be available to any cable operator 

after— 

(i) the technology utilized by the cable system is 

modified or improved in a way that eliminates such 

technological limitation; or 

(ii) 10 years after the date of enactment of the Cable 

Television Consumer Protection and Competition Act 

of 1992, subject to subparagraph (C). 

(C) WAIVER.—If, in any proceeding initiated at the request of any cable operator, the Commission determines 

that compliance with the requirements of subparagraph 

(A) would require the cable operator to increase its rates, 

the Commission may, to the extent consistent with the 

public interest, grant such cable operator a waiver from 

such requirements for such specified period as the Commission determines reasonable and appropriate. 

(c) REGULATION OF UNREASONABLE RATES.— 


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(1) COMMISSION REGULATIONS.—Within 180 days after the 

date of enactment of the Cable Television Consumer Protection 

and Competition Act of 1992, the Commission shall, by regulation, establish the following: 

(A) criteria prescribed in accordance with paragraph (2) 

for identifying, in individual cases, rates for cable programming services that are unreasonable; 

(B) fair and expeditious procedures for the receipt, consideration, and resolution of complaints from any franchising authority (in accordance with paragraph (3)) alleging that a rate for cable programming services charged by 

a cable operator violates the criteria prescribed under subparagraph (A), which procedures shall include the minimum showing that shall be required for a complaint to obtain Commission consideration and resolution of whether 

the rate in question is unreasonable; and 

(C) the procedures to be used to reduce rates for cable 

programming services that are determined by the Commission to be unreasonable and to refund such portion of the 

rates or charges that were paid by subscribers after the filing of the first complaint filed with the franchising authority under paragraph (3) and that are determined to be unreasonable. 

(2) FACTORS TO BE CONSIDERED.—In establishing the criteria 

for determining in individual cases whether rates for cable programming services are unreasonable under paragraph (1)(A), 

the Commission shall consider, among other factors— 

(A) the rates for similarly situated cable systems offering 

comparable cable programming services, taking into account similarities in facilities, regulatory and governmental costs, the number of subscribers, and other relevant factors; 

(B) the rates for cable systems, if any, that are subject 

to effective competition; 

(C) the history of the rates for cable programming services of the system, including the relationship of such rates 

to changes in general consumer prices; 

(D) the rates, as a whole, for all the cable programming, 

cable equipment, and cable services provided by the system, other than programming provided on a per channel or 

per program basis; 

(E) capital and operating costs of the cable system, including the quality and costs of the customer service provided by the cable system; and 

(F) the revenues (if any) received by a cable operator 

from advertising from programming that is carried as part 

of the service for which a rate is being established, and 

changes in such revenues, or from other consideration obtained in connection with the cable programming services 

concerned. 

(3) REVIEW OF RATE CHANGES.—The Commission shall review 

any complaint submitted by a franchising authority after the 

date of enactment of the Telecommunications Act of 1996 concerning an increase in rates for cable programming services 

and issue a final order within 90 days after it receives such a 


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complaint, unless the parties agree to extend the period for 

such review. A franchising authority may not file a complaint 

under this paragraph unless, within 90 days after such increase becomes effective it receives subscriber complaints. 

(4) SUNSET OF UPPER TIER RATE REGULATION.—This subsection shall not apply to cable programming services provided 

after March 31, 1999. 

(d) UNIFORM RATE STRUCTURE REQUIRED.—A cable operator shall 

have a rate structure, for the provision of cable service, that is uniform throughout the geographic area in which cable service is provided over its cable system. This subsection does not apply to (1) 

a cable operator with respect to the provision of cable service over 

its cable system in any geographic area in which the video programming services offered by the operator in that area are subject 

to effective competition, or (2) any video programming offered on a 

per channel or per program basis. Bulk discounts to multiple dwelling units shall not be subject to this subsection, except that a cable 

operator of a cable system that is not subject to effective competition may not charge predatory prices to a multiple dwelling unit. 

Upon a prima facie showing by a complainant that there are reasonable grounds to believe that the discounted price is predatory, 

the cable system shall have the burden of showing that its discounted price is not predatory. 

(e) DISCRIMINATION; SERVICES FOR THE HEARING IMPAIRED.— 

Nothing in this title shall be construed as prohibiting any Federal 

agency, State, or a franchising authority from— 

(1) prohibiting discrimination among subscribers and potential subscribers to cable service, except that no Federal agency, 

State, or franchising authority may prohibit a cable operator 

from offering reasonable discounts to senior citizens or other 

economically disadvantaged group discounts; or 

(2) requiring and regulating the installation or rental of 

equipment which facilitates the reception of cable service by 

hearing impaired individuals. 

(f) NEGATIVE OPTION BILLING PROHIBITED.—A cable operator 

shall not charge a subscriber for any service or equipment that the 

subscriber has not affirmatively requested by name. For purposes 

of this subsection, a subscriber’s failure to refuse a cable operator’s 

proposal to provide such service or equipment shall not be deemed 

to be an affirmative request for such service or equipment. 

(g) COLLECTION OF INFORMATION.—The Commission shall, by regulation, require cable operators to file with the Commission or a 

franchising authority, as appropriate, within one year after the 

date of enactment of the Cable Television Consumer Protection and 

Competition Act of 1992 and annually thereafter, such financial information as may be needed for purposes of administering and enforcing this section. 

(h) PREVENTION OF EVASIONS.—Within 180 days after the date of 

enactment of the Cable Television Consumer Protection and Competition Act of 1992, the Commission shall, by regulation, establish 

standards, guidelines, and procedures to prevent evasions, including evasions that result from retiering, of the requirements of this 

section and shall, thereafter, periodically review and revise such 

standards, guidelines, and procedures. 


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(i) SMALL SYSTEM BURDENS.—In developing and prescribing regulations pursuant to this section, the Commission shall design such 

regulations to reduce the administrative burdens and cost of compliance for cable systems that have 1,000 or fewer subscribers. 

(j) RATE REGULATION AGREEMENTS.—During the term of an 

agreement made before July 1, 1990, by a franchising authority 

and a cable operator providing for the regulation of basic cable 

service rates, where there was not effective competition under 

Commission rules in effect on that date, nothing in this section (or 

the regulations thereunder) shall abridge the ability of such franchising authority to regulate rates in accordance with such an 

agreement. 

ø(k) REPORTS ON AVERAGE PRICES.— 

ø(1) IN GENERAL.—The Commission shall annually publish 

statistical reports on the average rates for basic cable service 

and other cable programming, and for converter boxes, remote 

control units, and other equipment of cable systems that the 

Commission has found are subject to effective competition 

under subsection (a)(2) compared with cable systems that the 

Commission has found are not subject to such effective competition. 

ø(2) INCLUSION IN ANNUAL REPORT.— ø(A) IN GENERAL.—The Commission shall include in its 

report under paragraph (1) the aggregate average total 

amount paid by cable systems in compensation under section 325. 

ø(B) FORM.—The Commission shall publish information 

under this paragraph in a manner substantially similar to 

the way other comparable information is published in such 

report.¿ 

ø(l)¿ (k) DEFINITIONS.—As used in this section— 

(1) The term ‘‘effective competition’’ means that— 

(A) fewer than 30 percent of the households in the franchise area subscribe to the cable service of a cable system; 

(B) the franchise area is— 

(i) served by at least two unaffiliated multichannel 

video programming distributors each of which offers 

comparable video programming to at least 50 percent 

of the households in the franchise area; and 

(ii) the number of households subscribing to programming services offered by multichannel video programming distributors other than the largest multichannel video programming distributor exceeds 15 

percent of the households in the franchise area; 

(C) a multichannel video programming distributor operated by the franchising authority for that franchise area 

offers video programming to at least 50 percent of the 

households in that franchise area; or 

(D) a local exchange carrier or its affiliate (or any multichannel video programming distributor using the facilities 

of such carrier or its affiliate) offers video programming 

services directly to subscribers by any means (other than 

direct-to-home satellite services) in the franchise area of 

an unaffiliated cable operator which is providing cable 

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gramming services so offered in that area are comparable 

to the video programming services provided by the unaffiliated cable operator in that area. 

(2) The term ‘‘cable programming service’’ means any video 

programming provided over a cable system, regardless of service tier, including installation or rental of equipment used for 

the receipt of such video programming, other than (A) video 

programming carried on the basic service tier, and (B) video 

programming offered on a per channel or per program basis. 

ø(m)¿ (l) SPECIAL RULES FOR SMALL COMPANIES.— (1) IN GENERAL.—Subsections (a), (b), and (c) do not apply to 

a small cable operator with respect to— 

(A) cable programming services, or 

(B) a basic service tier that was the only service tier subject to regulation as of December 31, 1994, 

in any franchise area in which that operator services 50,000 or 

fewer subscribers. 

(2) DEFINITION OF SMALL CABLE OPERATOR.—For purposes of 

this subsection, the term ‘‘small cable operator’’ means a cable 

operator that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United 

States and is not affiliated with any entity or entities whose 

gross annual revenues in the aggregate exceed $250,000,000. 

ø(n)¿ (m) TREATMENT OF PRIOR YEAR LOSSES.—Notwithstanding 

any other provision of this section or of section 612, losses associated with a cable system (including losses associated with the 

grant or award of a franchise) that were incurred prior to September 4, 1992, with respect to a cable system that is owned and 

operated by the original franchisee of such system shall not be disallowed, in whole or in part, in the determination of whether the 

rates for any tier of service or any type of equipment that is subject 

to regulation under this section are lawful. 

ø(o)¿ (n) STREAMLINED PETITION PROCESS FOR SMALL CABLE OP- ERATORS.— 

(1) IN GENERAL.—Not later than 180 days after the date of 

the enactment of this subsection, the Commission shall complete a rulemaking to establish a streamlined process for filing 

of an effective competition petition pursuant to this section for 

small cable operators, particularly those who serve primarily 

rural areas. 

(2) CONSTRUCTION.—Nothing in this subsection shall be construed to have any effect on the duty of a small cable operator 

to prove the existence of effective competition under this section. 

(3) DEFINITION OF SMALL CABLE OPERATOR.—In this subsection, the term ‘‘small cable operator’’ has the meaning given 

the term in subsection (m)(2). 

* * * * * * * 

SEC. 624A. CONSUMER ELECTRONICS EQUIPMENT COMPATIBILITY. 

(a) FINDINGS.—The Congress finds that— 

(1) new and recent models of television receivers and video 

cassette recorders often contain premium features and functions that are disabled or inhibited because of cable scrambling, encoding, or encryption technologies and devices, includVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00106 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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ing converter boxes and remote control devices required by 

cable operators to receive programming; 

(2) if these problems are allowed to persist, consumers will 

be less likely to purchase, and electronics equipment manufacturers will be less likely to develop, manufacture, or offer for 

sale, television receivers and video cassette recorders with new 

and innovative features and functions; 

(3) cable operators should use technologies that will prevent 

signal thefts while permitting consumers to benefit from such 

features and functions in such receivers and recorders; and 

(4) compatibility among televisions, video cassette recorders, 

and cable systems can be assured with narrow technical standards that mandate a minimum degree of common design and 

operation, leaving all features, functions, protocols, and other 

product and service options for selection through open competition in the market. 

(b) COMPATIBLE INTERFACES.— 

(1) øREPORT; REGULATIONS¿ REGULATIONS.—øWithin 1 year 

after the date of enactment of this section, the Commission, in 

consultation with representatives of the cable industry and the 

consumer electronics industry, shall report to Congress on 

means of assuring¿ The Commission shall issue such regulations as are necessary to assure compatibility between televisions and video cassette recorders and cable systems, consistent with the need to prevent theft of cable service, so that 

cable subscribers will be able to enjoy the full benefit of both 

the programming available on cable systems and the functions 

available on their televisions and video cassette recorders. 

øWithin 180 days after the date of submission of the report required by this subsection, the Commission shall issue such regulations as are necessary to assure such compatibility.¿ 

(2) SCRAMBLING AND ENCRYPTION.—In issuing the regulations referred to in paragraph (1), the Commission shall determine whether and, if so, under what circumstances to permit 

cable systems to scramble or encrypt signals or to restrict cable 

systems in the manner in which they encrypt or scramble signals, except that the Commission shall not limit the use of 

scrambling or encryption technology where the use of such 

technology does not interfere with the functions of subscribers’ 

television receivers or video cassette recorders. 

(c) RULEMAKING REQUIREMENTS.— 

(1) FACTORS TO BE CONSIDERED.—In prescribing the regulations required by this section, the Commission shall consider— 

(A) the need to maximize open competition in the market for all features, functions, protocols, and other product 

and service options of converter boxes and other cable converters unrelated to the descrambling or decryption of 

cable television signals; 

(B) the costs and benefits to consumers of imposing compatibility requirements on cable operators and television 

manufacturers in a manner that, while providing effective 

protection against theft or unauthorized reception of cable 

service, will minimize interference with or nullification of 

the special functions of subscribers’ television receivers or 


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video cassette recorders, including functions that permit 

the subscriber— 

(i) to watch a program on one channel while simultaneously using a video cassette recorder to tape a 

program on another channel; 

(ii) to use a video cassette recorder to tape two consecutive programs that appear on different channels; 

and 

(iii) to use advanced television picture generation 

and display features; and 

(C) the need for cable operators to protect the integrity 

of the signals transmitted by the cable operator against 

theft or to protect such signals against unauthorized reception. 

(2) REGULATIONS REQUIRED.—The regulations prescribed by 

the Commission under this section shall include such regulations as are necessary— 

(A) to specify the technical requirements with which a 

television receiver or video cassette recorder must comply 

in order to be sold as ‘‘cable compatible’’ or ‘‘cable ready’’; 

(B) to require cable operators offering channels whose 

reception requires a converter box— 

(i) to notify subscribers that they may be unable to 

benefit from the special functions of their television receivers and video cassette recorders, including functions that permit subscribers— 

(I) to watch a program on one channel while simultaneously using a video cassette recorder to 

tape a program on another channel; 

(II) to use a video cassette recorder to tape two 

consecutive programs that appear on different 

channels; and 

(III) to use advanced television picture generation and display features; and 

(ii) to the extent technically and economically feasible, to offer subscribers the option of having all other 

channels delivered directly to the subscribers’ television receivers or video cassette recorders without 

passing through the converter box; 

(C) to promote the commercial availability, from cable 

operators and retail vendors that are not affiliated with 

cable systems, of converter boxes and of remote control devices compatible with converter boxes; 

(D) to ensure that any standards or regulations developed under the authority of this section to ensure compatibility between televisions, video cassette recorders, and 

cable systems do not affect features, functions, protocols, 

and other product and service options other than those 

specified in paragraph (1)(B), including telecommunications interface equipment, home automation communications, and computer network services; 

(E) to require a cable operator who offers subscribers the 

option of renting a remote control unit— 

(i) to notify subscribers that they may purchase a 

commercially available remote control device from any 


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source that sells such devices rather than renting it 

from the cable operator; and 

(ii) to specify the types of remote control units that 

are compatible with the converter box supplied by the 

cable operator; and 

(F) to prohibit a cable operator from taking any action 

that prevents or in any way disables the converter box 

supplied by the cable operator from operating compatibly 

with commercially available remote control units. 

(d) REVIEW OF REGULATIONS.—The Commission shall periodically 

review and, if necessary, modify the regulations issued pursuant to 

this section in light of any actions taken in response to such regulations and to reflect improvements and changes in cable systems, 

television receivers, video cassette recorders, and similar technology. 

* * * * * * * 

SEC. 628. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO 

PROGRAMMING DISTRIBUTION. 

(a) PURPOSE.—The purpose of this section is to promote the public interest, convenience, and necessity by increasing competition 

and diversity in the multichannel video programming market, to 

increase the availability of satellite cable programming and satellite broadcast programming to persons in rural and other areas 

not currently able to receive such programming, and to spur the 

development of communications technologies. 

(b) PROHIBITION.—It shall be unlawful for a cable operator, a satellite cable programming vendor in which a cable operator has an 

attributable interest, or a satellite broadcast programming vendor 

to engage in unfair methods of competition or unfair or deceptive 

acts or practices, the purpose or effect of which is to hinder significantly or to prevent any multichannel video programming distributor from providing satellite cable programming or satellite 

broadcast programming to subscribers or consumers. 

(c) REGULATIONS REQUIRED.— (1) PROCEEDING REQUIRED.—Within 180 days after the date 

of enactment of this section, the Commission shall, in order to 

promote the public interest, convenience, and necessity by increasing competition and diversity in the multichannel video 

programming market and the continuing development of communications technologies, prescribe regulations to specify particular conduct that is prohibited by subsection (b). 

(2) MINIMUM CONTENTS OF REGULATIONS.—The regulations to 

be promulgated under this section shall— 

(A) establish effective safeguards to prevent a cable operator which has an attributable interest in a satellite cable 

programming vendor or a satellite broadcast programming 

vendor from unduly or improperly influencing the decision 

of such vendor to sell, or the prices, terms, and conditions 

of sale of, satellite cable programming or satellite broadcast programming to any unaffiliated multichannel video 

programming distributor; 

(B) prohibit discrimination by a satellite cable programming vendor in which a cable operator has an attributable 

interest or by a satellite broadcast programming vendor in 


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the prices, terms, and conditions of sale or delivery of satellite cable programming or satellite broadcast programming among or between cable systems, cable operators, or 

other multichannel video programming distributors, or 

their agents or buying groups; except that such a satellite 

cable programming vendor in which a cable operator has 

an attributable interest or such a satellite broadcast programming vendor shall not be prohibited from— 

(i) imposing reasonable requirements for creditworthiness, offering of service, and financial stability 

and standards regarding character and technical quality; 

(ii) establishing different prices, terms, and conditions to take into account actual and reasonable differences in the cost of creation, sale, delivery, or transmission of satellite cable programming or satellite 

broadcast programming; 

(iii) establishing different prices, terms, and conditions which take into account economies of scale, cost 

savings, or other direct and legitimate economic benefits reasonably attributable to the number of subscribers served by the distributor; or 

(iv) entering into an exclusive contract that is permitted under subparagraph (D); 

(C) prohibit practices, understandings, arrangements, 

and activities, including exclusive contracts for satellite 

cable programming or satellite broadcast programming between a cable operator and a satellite cable programming 

vendor or satellite broadcast programming vendor, that 

prevent a multichannel video programming distributor 

from obtaining such programming from any satellite cable 

programming vendor in which a cable operator has an attributable interest or any satellite broadcast programming 

vendor in which a cable operator has an attributable interest for distribution to persons in areas not served by a 

cable operator as of the date of enactment of this section; 

and 

(D) with respect to distribution to persons in areas 

served by a cable operator, prohibit exclusive contracts for 

satellite cable programming or satellite broadcast programming between a cable operator and a satellite cable 

programming vendor in which a cable operator has an attributable interest or a satellite broadcast programming 

vendor in which a cable operator has an attributable interest, unless the Commission determines (in accordance with 

paragraph (4)) that such contract is in the public interest. 

(3) LIMITATIONS.— 

(A) GEOGRAPHIC LIMITATIONS.—Nothing in this section 

shall require any person who is engaged in the national or 

regional distribution of video programming to make such 

programming available in any geographic area beyond 

which such programming has been authorized or licensed 

for distribution. 

(B) APPLICABILITY TO SATELLITE RETRANSMISSIONS.— 

Nothing in this section shall apply (i) to the signal of any 


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broadcast affiliate of a national television network or other 

television signal that is retransmitted by satellite but that 

is not satellite broadcast programming, or (ii) to any internal satellite communication of any broadcast network or 

cable network that is not satellite broadcast programming. 

(4) PUBLIC INTEREST DETERMINATIONS ON EXCLUSIVE CON- TRACTS.—In determining whether an exclusive contract is in 

the public interest for purposes of paragraph (2)(D), the Commission shall consider each of the following factors with respect to the effect of such contract on the distribution of video 

programming in areas that are served by a cable operator: 

(A) the effect of such exclusive contract on the development of competition in local and national multichannel 

video programming distribution markets; 

(B) the effect of such exclusive contract on competition 

from multichannel video programming distribution technologies other than cable; 

(C) the effect of such exclusive contract on the attraction 

of capital investment in the production and distribution of 

new satellite cable programming; 

(D) the effect of such exclusive contract on diversity of 

programming in the multichannel video programming distribution market; and 

(E) the duration of the exclusive contract. 

(5) SUNSET PROVISION.—The prohibition required by paragraph (2)(D) shall cease to be effective 10 years after the date 

of enactment of this section, unless the Commission finds, in 

a proceeding conducted during the last year of such 10-year period, that such prohibition continues to be necessary to preserve and protect competition and diversity in the distribution 

of video programming. 

(d) ADJUDICATORY PROCEEDING.—Any multichannel video programming distributor aggrieved by conduct that it alleges constitutes a violation of subsection (b), or the regulations of the Commission under subsection (c), may commence an adjudicatory proceeding at the Commission. 

(e) REMEDIES FOR VIOLATIONS.— (1) REMEDIES AUTHORIZED.—Upon completion of such adjudicatory proceeding, the Commission shall have the power to 

order appropriate remedies, including, if necessary, the power 

to establish prices, terms, and conditions of sale of programming to the aggrieved multichannel video programming distributor. 

(2) ADDITIONAL REMEDIES.—The remedies provided in paragraph (1) are in addition to and not in lieu of the remedies 

available under title V or any other provision of this Act. 

(f) PROCEDURES.—The Commission shall prescribe regulations to 

implement this section. The Commission’s regulations shall— 

(1) provide for an expedited review of any complaints made 

pursuant to this section; 

(2) establish procedures for the Commission to collect such 

data, including the right to obtain copies of all contracts and 

documents reflecting arrangements and understandings alleged to violate this section, as the Commission requires to 

carry out this section; and 


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(3) provide for penalties to be assessed against any person 

filing a frivolous complaint pursuant to this section. 

ø(g) REPORTS.—The Commission shall, beginning not later than 

18 months after promulgation of the regulations required by subsection (c), annually report to Congress on the status of competition 

in the market for the delivery of video programming.¿ 

ø(j)¿ (g) COMMON CARRIERS.—Any provision that applies to a 

cable operator under this section shall apply to a common carrier 

or its affiliate that provides video programming by any means directly to subscribers. Any such provision that applies to a satellite 

cable programming vendor in which a cable operator has an attributable interest shall apply to any satellite cable programming vendor in which such common carrier has an attributable interest. For 

the purposes of this subsection, two or fewer common officers or directors shall not by itself establish an attributable interest by a 

common carrier in a satellite cable programming vendor (or its parent company). 

(h) EXEMPTIONS FOR PRIOR CONTRACTS.— 

(1) IN GENERAL.—Nothing in this section shall affect any contract that grants exclusive distribution rights to any person 

with respect to satellite cable programming and that was entered into on or before June 1, 1990, except that the provisions 

of subsection (c)(2)(C) shall apply for distribution to persons in 

areas not served by a cable operator. 

(2) LIMITATION ON RENEWALS.—A contract that was entered 

into on or before June 1, 1990, but that is renewed or extended 

after the date of enactment of this section shall not be exempt 

under paragraph (1). 

(i) DEFINITIONS.—As used in this section: 

(1) The term ‘‘satellite cable programming’’ has the meaning 

provided under section 705 of this Act, except that such term 

does not include satellite broadcast programming. 

(2) The term ‘‘satellite cable programming vendor’’ means a 

person engaged in the production, creation, or wholesale distribution for sale of satellite cable programming, but does not 

include a satellite broadcast programming vendor. 

(3) The term ‘‘satellite broadcast programming’’ means 

broadcast video programming when such programming is retransmitted by satellite and the entity retransmitting such 

programming is not the broadcaster or an entity performing 

such retransmission on behalf of and with the specific consent 

of the broadcaster. 

(4) The term ‘‘satellite broadcast programming vendor’’ 

means a fixed service satellite carrier that provides service 

pursuant to section 119 of title 17, United States Code, with 

respect to satellite broadcast programming. 

* * * * * * * 

TITLE VII—MISCELLANEOUS 

PROVISIONS 

* * * * * * * 


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SEC. 713. VIDEO PROGRAMMING ACCESSIBILITY. 

ø(a) COMMISSION INQUIRY.—Within 180 days after the date of enactment of the Telecommunications Act of 1996, the Federal Communications Commission shall complete an inquiry to ascertain the 

level at which video programming is closed captioned. Such inquiry 

shall examine the extent to which existing or previously published 

programming is closed captioned, the size of the video programming provider or programming owner providing closed captioning, 

the size of the market served, the relative audience shares 

achieved, or any other related factors. The Commission shall submit to the Congress a report on the results of such inquiry.¿ 

(b) ACCOUNTABILITY CRITERIA.—Within 18 months after such 

date of enactment, the Commission shall prescribe such regulations 

as are necessary to implement this section. Such regulations shall 

ensure that— 

(1) video programming first published or exhibited after the 

effective date of such regulations is fully accessible through the 

provision of closed captions, except as provided in subsection 

(d); and 

(2) video programming providers or owners maximize the accessibility of video programming first published or exhibited 

prior to the effective date of such regulations through the provision of closed captions, except as provided in subsection (d). 

(c) DEADLINES FOR CAPTIONING.— 

(1) IN GENERAL.—The regulations prescribed pursuant to 

subsection (b) shall include an appropriate schedule of deadlines for the provision of closed captioning of video programming once published or exhibited on television. 

(2) DEADLINES FOR PROGRAMMING DELIVERED USING INTERNET PROTOCOL.— 

(A) REGULATIONS ON CLOSED CAPTIONING ON VIDEO PROGRAMMING DELIVERED USING INTERNET PROTOCOL.—Not 

later than 6 months after the submission of the report to 

the Commission required by subsection (e)(1) of the Twenty-First Century Communications and Video Accessibility 

Act of 2010, the Commission shall revise its regulations to 

require the provision of closed captioning on video programming delivered using Internet protocol that was published or exhibited on television with captions after the effective date of such regulations. 

(B) SCHEDULE.—The regulations prescribed under this 

paragraph shall include an appropriate schedule of deadlines for the provision of closed captioning, taking into account whether such programming is prerecorded and edited for Internet distribution, or whether such programming 

is live or near-live and not edited for Internet distribution. 

(C) COST.—The Commission may delay or waive the regulation promulgated under subparagraph (A) to the extent 

the Commission finds that the application of the regulation to live video programming delivered using Internet 

protocol with captions after the effective date of such regulations would be economically burdensome to providers of 

video programming or program owners. 

(D) REQUIREMENTS FOR REGULATIONS.—The regulations 

prescribed under this paragraph— 


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(i) shall contain a definition of ‘‘near-live programming’’ and ‘‘edited for Internet distribution’’; 

(ii) may exempt any service, class of service, program, class of program, equipment, or class of equipment for which the Commission has determined that 

the application of such regulations would be economically burdensome for the provider of such service, program, or equipment; 

(iii) shall clarify that, for the purposes of implementation, of this subsection, the terms ‘‘video programming distributors’’ and ‘‘video programming providers’’ 

include an entity that makes available directly to the 

end user video programming through a distribution 

method that uses Internet protocol; 

(iv) and describe the responsibilities of video programming providers or distributors and video programming owners; 

(v) shall establish a mechanism to make available to 

video programming providers and distributors information on video programming subject to the Act on an 

ongoing basis; 

(vi) shall consider that the video programming provider or distributor shall be deemed in compliance if 

such entity enables the rendering or pass through of 

closed captions and makes a good faith effort to identify video programming subject to the Act using the 

mechanism created in (v); and 

(vii) shall provide that de minimis failure to comply 

with such regulations by a video programming provider or owner shall not be treated as a violation of 

the regulations. 

(3) ALTERNATE MEANS OF COMPLIANCE.—An entity may meet 

the requirements of this section through alternate means than 

those prescribed by regulations pursuant to subsection (b), as 

revised pursuant to paragraph (2)(A) of this subsection, if the 

requirements of this section are met, as determined by the 

Commission. 

(d) EXEMPTIONS.—Notwithstanding subsection (b)— 

(1) the Commission may exempt by regulation programs, 

classes of programs, or services for which the Commission has 

determined that the provision of closed captioning would be 

economically burdensome to the provider or owner of such programming; 

(2) a provider of video programming or the owner of any program carried by the provider shall not be obligated to supply 

closed captions if such action would be inconsistent with contracts in effect on the date of enactment of the Telecommunications Act of 1996, except that nothing in this section shall be 

construed to relieve a video programming provider of its obligations to provide services required by Federal law; and 

(3) a provider of video programming or program owner may 

petition the Commission for an exemption from the requirements of this section, and the Commission may grant such petition upon a showing that the requirements contained in this 

section would be economically burdensome. During the pendVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00114 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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ency of such a petition, such provider or owner shall be exempt 

from the requirements of this section. The Commission shall 

act to grant or deny any such petition, in whole or in part, 

within 6 months after the Commission receives such petition, 

unless the Commission finds that an extension of the 6-month 

period is necessary to determine whether such requirements 

are economically burdensome. 

(e) UNDUE BURDEN.—The term ‘‘undue burden’’ means significant 

difficulty or expense. In determining whether the closed captions 

necessary to comply with the requirements of this paragraph would 

result in an undue economic burden, the factors to be considered 

include— 

(1) the nature and cost of the closed captions for the programming; 

(2) the impact on the operation of the provider or program 

owner; 

(3) the financial resources of the provider or program owner; 

and 

(4) the type of operations of the provider or program owner. 

(f) VIDEO DESCRIPTION.— 

(1) REINSTATEMENT OF REGULATIONS.—On the day that is 1 

year after the date of enactment of the Twenty-First Century 

Communications and Video Accessibility Act of 2010, the Commission shall, after a rulemaking, reinstate its video description regulations contained in the Implementation of Video Description of Video Programming Report and Order (15 F.C.C.R. 

15,230 (2000)), recon. granted in part and denied in part, (16 

F.C.C.R. 1251 (2001)), modified as provided in paragraph (2). 

(2) MODIFICATIONS TO REINSTATED REGULATIONS.—Such regulations shall be modified only as follows: 

(A) The regulations shall apply to video programming, as 

defined in subsection (h), insofar as such programming is 

transmitted for display on television in digital format. 

(B) The Commission shall update the list of the top 25 

designated market areas, the list of the top 5 national nonbroadcast networks that have at least 50 hours per quarter of prime time programming that is not exempt under 

this paragraph, and the beginning calendar quarter for 

which compliance shall be calculated. 

(C) The regulations may permit a provider of video programming or a program owner to petition the Commission 

for an exemption from the requirements of this section 

upon a showing that the requirements contained in this 

section be economically burdensome. 

(D) The Commission may exempt from the regulations 

established pursuant to paragraph (1) a service, class of 

services, program, class of programs, equipment, or class of 

equipment for which the Commission has determined that 

the application of such regulations would be economically 

burdensome for the provider of such service, program, or 

equipment. 

(E) The regulations shall not apply to live or near-live 

programming. 

(F) The regulations shall provide for an appropriate 

phased schedule of deadlines for compliance. 


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(G) The Commission shall consider extending the exemptions and limitations in the reinstated regulations for technical capability reasons to all providers and owners of 

video programming. 

(3) INQUIRIES ON FURTHER VIDEO DESCRIPTION REQUIREMENTS.—The Commission shall commence the following inquiries not later than 1 year after the completion of the phase-in 

of the reinstated regulations and shall report to Congress 1 

year thereafter on the findings for each of the following: 

(A) VIDEO DESCRIPTION IN TELEVISION PROGRAMMING.— 

The availability, use, and benefits of video description on 

video programming distributed on television, the technical 

and creative issues associated with providing such video 

description, and the financial costs of providing such video 

description for providers of video programming and program owners. 

(B) VIDEO DESCRIPTION IN VIDEO PROGRAMMING DISTRIBUTED ON THE INTERNET.—The technical and operational 

issues, costs, and benefits of providing video descriptions 

for video programming that is delivered using Internet 

protocol. 

(4) CONTINUING COMMISSION AUTHORITY.— 

(A) IN GENERAL.—The Commission may not issue additional regulations unless the Commission determines, at 

least 2 years after completing the reports required in paragraph (3), that the need for and benefits of providing video 

description for video programming, insofar as such programming is transmitted for display on television, are 

greater than the technical and economic costs of providing 

such additional programming. 

(B) LIMITATION.—If the Commission makes the determination under subparagraph (A) and issues additional 

regulations, the Commission may not increase, in total, the 

hour requirement for additional described programming by 

more than 75 percent of the requirement in the regulations 

reinstated under paragraph (1). 

(C) APPLICATION TO DESIGNATED MARKET AREAS.— 

(i) IN GENERAL.—After the Commission completes 

the reports on video description required in paragraph 

(3), the Commission shall phase in the video description regulations for the top 60 designated market 

areas, except that the Commission may grant waivers 

to entities in specific designated market areas where 

it deems appropriate. 

(ii) PHASE-IN DEADLINE.—The phase-in described in 

clause (i) shall be completed not later than 6 years 

after the date of enactment of the Twenty-First Century Communications and Video Accessibility Act of 

2010. 

(iii) REPORT.—Nine years after the date of enactment of the Twenty-First Century Communications 

and Video Accessibility Act of 2010, the Commission 

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mittee on Commerce, Science, and Transportation of 

the Senate a report assessing— 

(I) the types of described video programming 

that is available to consumers; 

(II) consumer use of such programming; 

(III) the costs to program owners, providers, and 

distributors of creating such programming; 

(IV) the potential costs to program owners, providers, and distributors in designated market 

areas outside of the top 60 of creating such programming; 

(V) the benefits to consumers of such programming; 

(VI) the amount of such programming currently 

available; and 

(VII) the need for additional described programming in designated market areas outside the top 

60. 

(iv) ADDITIONAL MARKET AREAS.—Ten years after the 

date of enactment of the Twenty-First Century Communications and Video Accessibility Act of 2010, the 

Commission shall have the authority, based upon the 

findings, conclusions, and recommendations contained 

in the report under clause (iii), to phase in the video 

description regulations for up to an additional 10 designated market areas each year— 

(I) if the costs of implementing the video description regulations to program owners, providers, and distributors in those additional markets are reasonable, as determined by the Commission; and 

(II) except that the Commission may grant 

waivers to entities in specific designated market 

areas where it deems appropriate. 

(g) EMERGENCY INFORMATION.—Not later than 1 year after the 

Advisory Committee report under subsection (e)(2) is submitted to 

the Commission, the Commission shall complete a proceeding to— 

(1) identify methods to convey emergency information (as 

that term is defined in section 79.2 of title 47, Code of Federal 

Regulations) in a manner accessible to individuals who are 

blind or visually impaired; and 

(2) promulgate regulations that require video programming 

providers and video programming distributors (as those terms 

are defined in section 79.1 of title 47, Code of Federal Regulations) and program owners to convey such emergency information in a manner accessible to individuals who are blind or visually impaired. 

(h) DEFINITIONS.—For purposes of this section, section 303, and 

section 330: 

(1) VIDEO DESCRIPTION.—The term ‘‘video description’’ means 

the insertion of audio narrated descriptions of a television program’s key visual elements into natural pauses between the 

program’s dialogue. 

(2) VIDEO PROGRAMMING.—The term ‘‘video programming’’ 

means programming by, or generally considered comparable to 


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programming provided by a television broadcast station, but 

not including consumer-generated media (as defined in section 

3). 

(j) PRIVATE RIGHTS OF ACTIONS PROHIBITED.—Nothing in this 

section shall be construed to authorize any private right of action 

to enforce any requirement of this section or any regulation thereunder. The Commission shall have exclusive jurisdiction with respect to any complaint under this section. 

* * * * * * * 

COMMUNICATIONS SATELLITE ACT OF 1962 

* * * * * * * 

TITLE VI—COMMUNICATIONS 

COMPETITION AND PRIVATIZATION 

* * * * * * * 

Subtitle C—Deregulation and Other 

Statutory Changes 

* * * * * * * 

øSEC. 646. REPORTS TO CONGRESS. 

ø(a) ANNUAL REPORTS.—The President and the Commission shall 

report to the Committees on Commerce and International Relations 

of the House of Representatives and the Committees on Commerce, 

Science, and Transportation and Foreign Relations of the Senate 

within 90 calendar days of the enactment of this title, and not less 

than annually thereafter, on the progress made to achieve the objectives and carry out the purposes and provisions of this title. 

Such reports shall be made available immediately to the public. 

ø(b) CONTENTS OF REPORTS.—The reports submitted pursuant to 

subsection (a) shall include the following: 

ø(1) Progress with respect to each objective since the most 

recent preceding report. 

ø(2) Views of the Parties with respect to privatization. 

ø(3) Views of industry and consumers on privatization. 

ø(4) Impact privatization has had on United States industry, 

United States jobs, and United States industry’s access to the 

global marketplace.¿ 

* * * * * * * 

PUBLIC LAW 109–34 

* * * * * * * 

øSEC. 4. SATELLITE SERVICE REPORT. 

ø(a) ANNUAL REPORT.—The Federal Communications Commission shall review competitive market conditions with respect to domestic and international satellite communications services and 

shall include in an annual report an analysis of those conditions. 


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The Commission shall transmit a copy of the report to the Senate 

Committee on Commerce, Science, and Transportation and the 

House of Representatives Committee on Energy and Commerce. 

ø(b) CONTENT.—The Commission shall include in the report— 

ø(1) an identification of the number and market share of 

competitors in domestic and international satellite markets; 

ø(2) an analysis of whether there is effective competition in 

the market for domestic and international satellite services; 

and 

ø(3) a list of any foreign nations in which legal or regulatory 

practices restrict access to the market for satellite services in 

such nation in a manner that undermines competition or favors a particular competitor or set of competitors.¿ 

BROADBAND DATA IMPROVEMENT ACT 

* * * * * * * 

SEC. 103 IMPROVING FEDERAL DATA ON BROADBAND. 

(a) IMPROVING SECTION 706 INQUIRY.—Section 706 of the Telecommunications Act of 1996 (47 U.S.C. 157 note) is amended— 

(1) by striking ‘‘regularly’’ in subsection (b) and inserting 

‘‘annually’’; 

(2) by redesignating subsection (c) as subsection (d); and 

(3) by inserting after subsection (b) the following: 

‘‘(c) DEMOGRAPHIC INFORMATION FOR UNSERVED AREAS.—As part 

of the inquiry required by subsection (b), the Commission shall 

compile a list of geographical areas that are not served by any provider of advanced telecommunications capability (as defined by section 706(c)(1) of the Telecommunications Act of 1996 (47 U.S.C. 157 

note)) and to the extent that data from the Census Bureau is available, determine, for each such unserved area— 

‘‘(1) the population; 

‘‘(2) the population density; and 

‘‘(3) the average per capita income.’’. 

ø(b) INTERNATIONAL COMPARISON.— ø(1) IN GENERAL.—As part of the assessment and report required by section 706 of the Telecommunications Act of 1996 

(47 U.S.C. 157 note), the Federal Communications Commission 

shall include information comparing the extent of broadband 

service capability (including data transmission speeds and 

price for broadband service capability) in a total of 75 communities in at least 25 countries abroad for each of the data rate 

benchmarks for broadband service utilized by the Commission 

to reflect different speed tiers. 

ø(2) CONTENTS.—The Commission shall choose communities 

for the comparison under this subsection in a manner that will 

offer, to the extent possible, communities of a population size, 

population density, topography, and demographic profile that 

are comparable to the population size, population density, topography, and demographic profile of various communities 

within the United States. The Commission shall include in the 

comparison under this subsection— 

ø(A) a geographically diverse selection of countries; and 

ø(B) communities including the capital cities of such 

countries. 


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ø(3) SIMILARITIES AND DIFFERENCES.—The Commission shall 

identify relevant similarities and differences in each community, including their market structures, the number of competitors, the number of facilities-based providers, the types of technologies deployed by such providers, the applications and services those technologies enable, the regulatory model under 

which broadband service capability is provided, the types of applications and services used, business and residential use of 

such services, and other media available to consumers.¿ 

ø(c)¿ (b) CONSUMER SURVEY OF BROADBAND SERVICE CAPABILITY.— 

(1) IN GENERAL.—For the purpose of evaluating, on a statistically significant basis, the national characteristics of the use 

of broadband service capability, the Commission shall conduct 

and make public periodic surveys of consumers in urban, suburban, and rural areas in the large business, small business, 

and residential consumer markets to determine— 

(A) the types of technology used to provide the 

broadband service capability to which consumers subscribe; 

(B) the amounts consumers pay per month for such capability; 

(C) the actual data transmission speeds of such capability; 

(D) the types of applications and services consumers 

most frequently use in conjunction with such capability; 

(E) for consumers who have declined to subscribe to 

broadband service capability, the reasons given by such 

consumers for declining such capability; 

(F) other sources of broadband service capability which 

consumers regularly use or on which they rely; and 

(G) any other information the Commission deems appropriate for such purpose. 

(2) PUBLIC AVAILABILITY.—The Commission shall make publicly available the results of surveys conducted under this subsection at least once per year. 

ø(d)¿ (c) IMPROVING CENSUS DATA ON BROADBAND.—The Secretary of Commerce, in consultation with the Federal Communications Commission, shall expand the American Community Survey 

conducted by the Bureau of the Census to elicit information for residential households, including those located on native lands, to determine whether persons at such households own or use a computer at that address, whether persons at that address subscribe 

to Internet service and, if so, whether such persons subscribe to 

dial-up or broadband Internet service at that address. 

ø(e)¿ (d) PROPRIETARY INFORMATION.—Nothing in this title shall 

reduce or remove any obligation the Commission has to protect proprietary information, nor shall this title be construed to compel the 

Commission to make publicly available any proprietary information. 

TELECOMMUNICATIONS ACT OF 1996 

* * * * * * * 


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TITLE VII—MISCELLANEOUS 

PROVISIONS 

* * * * * * * 

SEC. 706. ADVANCED TELECOMMUNICATIONS INCENTIVES. 

(a) IN GENERAL.—The Commission and each State commission 

with regulatory jurisdiction over telecommunications services shall 

encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans (including, 

in particular, elementary and secondary schools and classrooms) by 

utilizing, in a manner consistent with the public interest, convenience, and necessity, price cap regulation, regulatory forbearance, 

measures that promote competition in the local telecommunications 

market, or other regulating methods that remove barriers to infrastructure investment. 

ø(b) INQUIRY.—The Commission shall, within 30 months after the 

date of enactment of this Act, and annually thereafter, initiate a 

notice of inquiry concerning the availability of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) and 

shall complete the inquiry within 180 days after its initiation. In 

the inquiry, the Commission shall determine whether advanced 

telecommunications capability is being deployed to all Americans in 

a reasonable and timely fashion. If the Commission’s determination 

is negative, it shall take immediate action to accelerate deployment 

of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications 

market. 

ø(c) DEMOGRAPHIC INFORMATION FOR UNSERVED AREAS.—As part 

of the inquiry required by subsection (b), the Commission shall 

compile a list of geographical areas that are not served by any provider of advanced telecommunications capability (as defined by section 706(c)(1) of the Telecommunications Act of 1996 (47 U.S.C. 157 

note)) and to the extent that data from the Census Bureau is available, determine, for each such unserved area— 

ø(1) the population; 

ø(2) the population density; and 

ø(3) the average per capita income.¿ 

(b) DETERMINATION.—If the Commission determines in its report 

under section 13 of the Communications Act of 1934, after considering the availability of advanced telecommunications capability to 

all Americans (including, in particular, elementary and secondary 

schools and classrooms), that advanced telecommunications capability is not being deployed to all Americans in a reasonable and 

timely fashion, the Commission shall take immediate action to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market. 

ø(d)¿ (c) DEFINITIONS.—For purposes of øthis subsection¿ this 

section: 

(1) ADVANCED TELECOMMUNICATIONS CAPABILITY.—The term 

‘‘advanced telecommunications capability’’ is defined, without 

regard to any transmission media or technology, as high-speed, 

switched, broadband telecommunications capability that enVerDate Sep 11 2014 23:20 Feb 26, 2015 Jkt 049006 PO 00000 Frm 00121 Fmt 6659 Sfmt 6602 E:\HR\OC\HR027.XXX HR027

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ables users to originate and receive high-quality voice, data, 

graphics, and video telecommunications using any technology. 

(2) ELEMENTARY AND SECONDARY SCHOOLS.—The term ‘‘elementary and secondary schools’’ means elementary and secondary schools, as defined in section 9101 of the Elementary 

and Secondary Education Act of 1965. 

* * * * * * * 

Æ 


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