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[House Report 114-27]
[From the U.S. Government Publishing Office]

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

                          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, point-to-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 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.
    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 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-you-go 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.

                       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, 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 Sec. 646, the Satellite Competition Report, see 
Pub. L. No. 109-34 Sec. 4, the Status of Competition in the 
Market for the Delivery of Video Programming Report, see 
Communications Act of 1934 Sec. 628(g), the Report on Cable 
Industry Prices, see Communications Act of 1934 Sec. 623(k), 
and the State of Competitive Market Conditions with Respect to 
Commercial Mobile Radio Services Report, see Communications Act 
of 1934 Sec. 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 Sec. 706(b), and the 
International Broadband Data Report, see Broadband Data 
Improvement Act Sec. 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 Sec. 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 
demonstrate 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 Sec. 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 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 Sec. 646, the 
Satellite Competition Report, see Pub. L. No. 109-34 Sec. 4, 
the Status of Competition in the Market for the Delivery of 
Video Programming Report, see Communications Act of 1934 
Sec. 628(g), the Report on Cable Industry Prices, see 
Communications Act of 1934 Sec. 623(k), the State of 
Competitive Market Conditions with Respect to Commercial Mobile 
Radio Services Report, see Communications Act of 1934 
Sec. 332(c)(1)(C), the Broadband Deployment Report, see 
Telecommunications Act of 1996 Sec. 706(b), the International 
Broadband Data Report, see Broadband Data Improvement Act 
Sec. 103(b), and the Triennial Report Identifying and 
Eliminating Market Entry Barriers for Entrepreneurs and Other 
Small Businesses, see Communications Act of 1934 Sec. 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 Sec. 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 Sec. 309(j)(15)(C)(iv). An example of the latter is the 
annual report of the Commission, see Communications Act of 1934 
Sec. 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, Sec. 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 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 Commission 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 
[and 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 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 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.
  (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.
  (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.
  [(2)(A) If--
          [(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;
          [(ii) such attendance and participation are in 
        furtherance of the functions of the Commission; and
          [(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.
  [(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.
  [(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.
  [(D) The provisions of this paragraph shall cease to have any 
force or effect at the end of fiscal year 1994.
  [(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 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.
  [(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--
          [(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;
          [(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;
          [(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
          [(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.]
  [(l)] (k) All reports of investigations made by the 
Commission shall be entered of record, and a copy thereof shall 
be furnished to the party who may have complained, and to any 
common carrier or licensee that may have been complained of.
  [(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.
  [(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.
  [(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 (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 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
------------------------------------------------------------------------
                                                               Annual
                      Bureau/Category                        Regulatory
                                                                 Fee
------------------------------------------------------------------------
Private Radio Bureau
  Exclusive use services (per license)
   Land Mobile (above 470 MHz, Base Station and SMRS) (47            $16
    C.F.R. Part 90).......................................
   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)
   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.             135
   Part 74)...............................................
  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                370
   C.F.R. Part 76)........................................
Common Carrier Bureau
  Radio Facilities
   Cellular Radio (per 1,000 subscribers) (47 C.F.R. Part             60
    22)...................................................
   Personal Communications (per 1,000 subscribers) (47                60
    C.F.R.)...............................................
   Space Station (per operational station in                      65,000
    geosynchronous orbit) (47 C.F.R. Part 25).............
   Space Station (per system in low-earth orbit) (47              90,000
    C.F.R. Part 25).......................................
   Public Mobile (per 1,000 subscribers) (47 C.F.R. Part              60
    22)...................................................
   Domestic Public Fixed (per call sign) (47 C.F.R. Part              55
    21)...................................................
   International Public Fixed (per call sign) (47 C.F.R.             110
    Part 23)..............................................
  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              60
   lines).................................................
  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             220
   equivalent)............................................
------------------------------------------------------------------------

  (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). [In 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 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 even-
numbered 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 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 
        information.--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) 
subjecting 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.
  [(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.]
  [(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 
        person's prior express invitation or permission, (B) to 
        any person 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 
Equipment.--
          (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 
                        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;
                          (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 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--
                  (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;
                  (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 
        method.--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 directories 
                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, 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.
          [(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 information 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 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 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 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;
                  (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.
  [(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--
          [(1) any regulations prescribed to eliminate barriers 
        within its jurisdiction that are identified under 
        subsection (a) and that can be prescribed consistent 
        with the public interest, convenience, and necessity; 
        and
          [(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,
                  (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) 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.--
          (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 
from time to time to the extent necessary too carry out the 
provisions 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 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, (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;
                  (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. 
                [No 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.]
                  (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 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 
                                Relief and Job Creation Act of 
                                2012 shall be deposited 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 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.
          [(12) Evaluation.--Not later than September 30, 1997, 
        the Commission shall conduct a public inquiry and 
        submit to the Congress a report--
                  [(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;
                  [(B) describing the methodologies established 
                by the Commission pursuant to paragraphs (3) 
                and (4);
                  [(C) comparing the relative advantages and 
                disadvantages of such methodologies in terms of 
                attaining the objectives described in such 
                paragraphs;
                  [(D) evaluating whether and to what extent--
                          [(i) competitive bidding 
                        significantly improved the efficiency 
                        and effectiveness of the process for 
                        granting radio spectrum licenses;
                          [(ii) competitive bidding facilitated 
                        the introduction of new spectrum-based 
                        technologies and the entry of new 
                        companies into the telecommunications 
                        market;
                          [(iii) competitive bidding 
                        methodologies have secured prompt 
                        delivery of service to rural areas and 
                        have adequately addressed the needs of 
                        rural spectrum users; and
                          [(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
                  [(E) recommending any statutory changes that 
                are needed to improve the competitive bidding 
                process.]
          (13) Recovery of value of public spectrum in 
        connection 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 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 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--
                                  (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.
                          [(iv) Report.--Within one year after 
                        the date of enactment of this 
                        paragraph, the Commission shall submit 
                        a report to Congress--
                                  [(I) specifying when the 
                                Commission intends to 
                                reschedule auctions 31 and 44 
                                (other than the blocks excepted 
                                by clause (i)); and
                                  [(II) describing the progress 
                                made by the Commission in the 
                                digital television transition 
                                and in the assignment and 
                                allocation of additional 
                                spectrum for advanced mobile 
                                communications services 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 
        frequencies.--
                  (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 requiring 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
                  (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 
daytime-only 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. [The Commission shall 
report to the appropriate committees of Congress 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 pursuant 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) [The 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 for land line telephone exchange service for 
        a substantial portion of the communications within such 
        State) from requirements 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.
          (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 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-to-home 
                        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
          (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 from its obligation to serve the public interest, 
convenience, and necessity. 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 the receiving appropriations account, and 
                shall be deposited in such accounts on a 
                quarterly basis.
          [(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 full-
                        power 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 engineering solution to a full-
                power station's allotted parameters 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 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 low-power 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
                          (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 low-power 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.--Low-
        power 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.
                  (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
                  (B) the station complies with the 
                Commission's regulations governing safety, 
                environmental, and sound engineering 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 
        low-power 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 
        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), 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 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 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 extent 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 
                subscribers.--
                          (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.
          (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.--
          [(1) Study of digital strength testing procedures.--
                  [(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.
                  [(B) Study considerations.--In conducting the 
                study under this paragraph, the Commission 
                shall consider whether--
                          [(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;
                          [(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;
                          [(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;
                          [(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;
                          [(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
                          [(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.
                  [(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--
                          [(i) the results of the study under 
                        this paragraph; and
                          [(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 prescribe by 
                rule a point-to-point predictive model for 
                reliably 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 Longley-Rice 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.
                  (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.
          (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;
          (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 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.

          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;
          (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.

                        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.

                          [Report to Congress

  [(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--
          [(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;
          [(B) a comprehensive and detailed inventory of funds 
        distributed by Federal agencies to public 
        telecommunications entities during the preceding fiscal 
        year;
          [(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;
          [(D) the summary of the annual report provided to the 
        Secretary pursuant to section 398(b)(4).
  [(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.

             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.
  [(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 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);
          (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 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.
  [(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.
  (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 
        non-Federal 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. 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.
  (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 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 [shall 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 audit, and they shall be afforded full 
facilities for verifying transactions 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 any recipient of assistance for the 
purpose of auditing and examining 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.
  [(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 minorities, new 
immigrant populations, people for whom English is a second 
language, and adults who lack basic reading skills.
  [(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.
  [(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.
  (3)(A) The Corporation shall incorporate into each grant 
agreement or contract with any recipient entered into on or 
after the effective 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. [The 
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 Corporation shall comply with such directive. 
Resumption of payments 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 [623(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 acquisition 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 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 regulation proceedings by 
                such authority provide a reasonable 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 such broad category. Such 
                aggregation shall not be permitted 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 Regulations.--
          (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;
                          (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.--
                  (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.--
          (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 
        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.
  (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.
  [(k) Reports on Average Prices.--
          [(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.
          [(2) Inclusion in annual report.--
                  [(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.
                  [(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.]
  [(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 service in that franchise area, but only 
                if the video programming 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.
  [(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.
  [(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.
  [(o)] (n) Streamlined Petition Process for Small Cable 
Operators.--
          (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, including 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)  [Report; regulations]  Regulations.--[Within 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. 
        [Within 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 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 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 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 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 
        contracts.--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
          (3) provide for penalties to be assessed against any 
        person filing a frivolous complaint pursuant to this 
        section.
  [(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.]
  [(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

           *       *       *       *       *       *       *

SEC. 713. VIDEO PROGRAMMING ACCESSIBILITY.

  [(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--
                          (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 pendency 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.
                  (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 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 
                        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 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

           *       *       *       *       *       *       *

[SEC. 646. REPORTS TO CONGRESS.

  [(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.
  [(b) Contents of Reports.--The reports submitted pursuant to 
subsection (a) shall include the following:
          [(1) Progress with respect to each objective since 
        the most recent preceding report.
          [(2) Views of the Parties with respect to 
        privatization.
          [(3) Views of industry and consumers on 
        privatization.
          [(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

           *       *       *       *       *       *       *

[SEC. 4. SATELLITE SERVICE REPORT.

  [(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. 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.
  [(b) Content.--The Commission shall include in the report--
          [(1) an identification of the number and market share 
        of competitors in domestic and international satellite 
        markets;
          [(2) an analysis of whether there is effective 
        competition in the market for domestic and 
        international satellite services; and
          [(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.''.
  [(b) International Comparison.--
          [(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.
          [(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--
                  [(A) a geographically diverse selection of 
                countries; and
                  [(B) communities including the capital cities 
                of such countries.
          [(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.]
  [(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.
  [(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.
  [(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

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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.
  [(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.
  [(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.]
  (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.
  [(d)] (c) Definitions.--For purposes of [this 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 enables 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.

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