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[Senate Report 114-58]
[From the U.S. Government Publishing Office]

                                                  Calendar No. 100

114th Congress} 					   {Report
 1st Session  }                   SENATE                   {114-58   
____________________________________________________________________
  .                               
                       
                       FEDERAL COMMUNICATIONS COMMISSION 
                     CONSOLIDATED REPORTING ACT OF 2015

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   ON

                                 S. 253
                                 

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                  May 22, 2015.--Ordered to be printed
                  
                                ___________
                                
                                
                                
                      U.S. GOVERNMENT PUBLISHING OFFICE          
                          WASHINGTON : 2015
_____________________________________________________________________                  
       
             
                  
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                    one hundred fourteenth congress
                             first session

                   JOHN THUNE, South Dakota, Chairman
 ROGER F. WICKER, Mississippi         BILL NELSON, Florida
 ROY BLUNT, Missouri                  MARIA CANTWELL, Washington
 MARCO RUBIO, Florida                 CLAIRE McCASKILL, Missouri
 KELLY AYOTTE, New Hampshire          AMY KLOBUCHAR , Minnesota
 TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
 DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
 JERRY MORAN, Kansas                  ED MARKEY, Massachusetts
 DAN SULLIVAN, Alaska                 CORY BOOKER, New Jersey
 RON JOHNSON, Wisconsin               TOM UDALL, New Mexico
 DEAN HELLER, Nevada                  JOE MANCHIN, West Virginia
 CORY GARDNER, Colorado               GARY PETERS, Michigan
 STEVE DAINES, Montana
                    David Schwietert, Staff Director
                   Nick Rossi, Deputy Staff Director
                    Rebecca Seidel, General Counsel
                 Kim Lipsky, Democratic Staff Director
           Christopher Day, Democratic Deputy Staff Director
                 Clint Odom, Democratic General Counsel
                 
                 
                                                       Calendar No. 100
114th Congress                                                   Report
                                 SENATE
 1st Session                                                     114-58

======================================================================

  FEDERAL COMMUNICATIONS COMMISSION CONSOLIDATED REPORTING ACT OF 2015

                                _______
                                

                  May 22, 2015.--Ordered to be printed

                                _______
                                

Mr. Thune, from the Committee on Commerce, Science, and Transportation, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 253]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 253) 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, reports favorably thereon 
with an amendment (in the nature of a substitute) and 
recommends that the bill (as amended) do pass.

                          Purpose of the Bill

    The purpose of this legislation, as reported, is to 
consolidate several reports of the Federal Communications 
Commission (FCC or Commission) into a single biennial report on 
the state of the communications marketplace. The new biennial 
consolidated report would provide members of Congress relevant 
and timely marketplace information to improve communications-
related policymaking and oversight.

                          Background and Needs

    Changes in technology, consumer behavior, and the law, 
including regulations, have facilitated convergence of what 
were once distinct modes of communication, including wireline 
telephony, cable television, broadcast television and radio, 
and mobile voice and data.
    Federal communications laws have been enacted and amended 
at different points in time, often to address or anticipate 
particular changes in industry structure and consumer 
expectations. Many communications laws have included FCC 
reporting requirements that reflect each law's discrete policy 
goals, including assessments of sector-specific competition.
    Under current law, the FCC is directed to annually prepare 
separate reports to Congress on video competition, satellite 
competition, the competitive effects of satellite 
privatization, broadband deployment, international broadband 
deployment, cable television pricing, and wireless competition. 
In addition, the Commission is required to produce a triennial 
report on barriers to market entry for small businesses, as 
well as yearly reports regarding telephone penetration, 
telephone subscribership, and pricing among telecommunications 
services.
    These reports each offer meaningful information about 
competition among and deployment of voice, video, and advanced 
communications services. The varied timing and isolated subject 
focus of the existing reports, however, may not provide 
policymakers with a complete picture that could be offered by a 
single, timely report on competition and deployment in the 
communications marketplace as a whole. Also, the many existing 
reports collectively create a burden on the Commission that 
could be lessened and managed more efficiently through report 
consolidation. S. 253 would reduce reporting burdens on the FCC 
and direct it to holistically analyze the communications 
marketplace, including rural, urban, residential, and business 
markets, rather than continue to report separately on sector-
specific and technology-specific bases.
    The consolidated biennial report established by S. 253 
would replace the multiple, sector-specific reports currently 
required by statute, thereby allowing the Commission to 
redirect its limited resources and providing congressional 
policymakers with more useful information with which to judge 
the efficacy of existing statutes and the potential value of 
proposed changes to the law.

                         Summary of Provisions

    S. 253 would amend the Communications Act of 1934 to 
require the FCC to publish and submit to Congress a 
communications marketplace report in the last quarter of every 
even-numbered year. The new consolidated report would be 
required to assess competition, deployment, and barriers to 
entry and expansion present in the communications marketplace. 
The FCC would also be required to include in the consolidated 
report an agenda for addressing the challenges and 
opportunities identified by its assessments over the next two 
years.
    S. 253, in turn, repeals the ORBIT Act Report, the 
Satellite Competition Report, the Status of Competition in the 
Market for the Delivery of Video Programming Report, the 
Triennial Report Identifying and Eliminating Market Entry 
Barriers for Entrepreneurs and Other Small Businesses, and the 
State of Competitive Market Conditions With Respect to 
Commercial Mobile Radio Services Report. The legislation also 
would direct that the Report on Cable Industry Prices and the 
International Broadband Data Report be included in the new 
consolidated report.

                          Legislative History

    S. 253, the Federal Communications Commission Consolidated 
Reporting Act of 2015, was introduced by Senator Dean Heller on 
January 26, 2015, and referred to the Committee on Commerce, 
Science, and Transportation of the Senate. The bill is also 
cosponsored by Senator Brian Schatz.
    On February 24, 2015, the Committee considered the bill, as 
amended in the nature of a substitute, in an open Executive 
Session. Senator Markey offered an amendment to maintain the 
International Broadband Data Report and include it in the 
consolidated report established by S. 253. The amendment was 
adopted by unanimous consent. The Committee, without objection, 
ordered that S. 253, as amended, be reported.

                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 253--Federal Communications Commission Consolidated Reporting Act of 
        2015

    S. 253 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. If the FCC fails to meet the reporting 
deadline as provided in the bill, the agency would be required 
to notify the Congress of the delay and provide the completion 
date for the report.
    S. 253 also would relieve the FCC of requirements to 
prepare certain other reports for the Congress 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 S. 253 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 preparing the 
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 S. 253 would be negligible, assuming annual 
appropriation actions consistent with the agency's authorities. 
Enacting S. 253 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    S. 253 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.
    On February 23, 2015, CBO transmitted a cost estimate for 
H.R. 734, the Federal Communications Commission Consolidated 
Reporting Act of 2015, as ordered reported by the House 
Committee on Energy and Commerce on February 12, 2015. The two 
bills are similar, as are the CBO cost estimates.
    The CBO staff contact for this estimate is Susan Willie. 
The estimate was approved by Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                           Regulatory Impact

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    The number of persons covered by S. 253 should be 
consistent with the current levels of individuals impacted 
under the provisions of law that are addressed in the bill.

                            economic impact

    S. 253 would not have an adverse impact on the Nation's 
economy.

                                privacy

    S. 253 would have no impact on the personal privacy of U.S. 
citizens.

                               paperwork

    S. 253 would not significantly increase paperwork 
requirements for individuals and businesses.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis

Section 1. Short title.

    Section 1 would provide that the legislation may be cited 
as the ``Federal Communications Commission Consolidated 
Reporting Act of 2015''.

Section 2. Communications marketplace report.

    Section 2 would amend title I of the Communications Act of 
1934 by adding a new section 13.
    New section 13(a) would require the FCC to publish and 
submit to Committee on Commerce, Science, and Transportation of 
the Senate and Committee on Energy and Commerce of the House of 
Representatives in the last quarter of every even-numbered year 
a report on the state of the communications marketplace.
    New section 13(b) would require the FCC to include in each 
report: an assessment of the state of competition in the 
communications marketplace; an assessment of the state of 
deployment of communications capabilities, regardless of the 
technology used for such deployment; an assessment of barriers 
to competitive entry into the communications marketplace or 
competitive expansion of existing providers of communications 
services; and, a description of the agenda of the Commission 
for the next two-year period for addressing the challenges and 
opportunities identified in the report.
    New section 13(c) would provide for an extension of the 
report deadline if the Senate confirms the Chairman of the FCC 
during the third or fourth quarter of an even-numbered year. In 
such an instance, the report may be published and submitted by 
March 1 of the following odd-numbered year.
    New section 13(d) would require, as part of the report, 
that the FCC consider intermodal, facilities-based, and 
Internet-based competition in its assessment of competition and 
to compile a list of geographic areas not served by any 
provider of advanced telecommunications capability in its 
assessment of deployment. The new section also would require 
the FCC to consider market entry barriers for entrepreneurs and 
other small businesses in its assessments of competition and 
barriers to competitive entry and expansion.
    New section 13(e) would require the Commission to notify, 
by letter, the Committee on Commerce, Science, and 
Transportation of the Senate and Committee on Energy and 
Commerce of the House of Representatives of any delay in the 
publication of the report. Such notice would be required to be 
made within seven days following the deadline and every 60 days 
until publication.

Section 3. Consolidation of redundant reports; conforming amendments.

    Section 3(a) would amend the Communications Satellite Act 
of 1962 to repeal the ORBIT Act Report.
    Section 3(b) would amend Public Law 109-34 to repeal the 
Satellite Competition Report.
    Section 3(c) would amend the Broadband Data Improvement Act 
to require the FCC to include the International Broadband Data 
Report in the new biennial report established by the underlying 
bill.
    Section 3(d) would amend section 628 of the Communications 
Act of 1934 to repeal the Status of Competition in the Market 
for the Delivery of Video Programming Report.
    Section 3(e) would amend section 623(k) of the 
Communications Act of 1934 to require the Commission to include 
the Report on Cable Industry Prices in the new biennial report 
established by the underlying bill. While the legislation would 
reduce the frequency of FCC cable industry price reporting 
obligations from annual to biennial, the Committee intends that 
the Commission continue to provide information identified by 
section 623 (k), separately for each year.
    Section 110 of Public Law 113-200, the STELA 
Reauthorization Act of 2014, amended section 623(k) of the 
Communications Act of 1934 to direct the FCC to include in its 
Report on Cable Industry Prices the aggregate average total 
amount paid by cable systems in compensation under section 325 
of the Communication Act of 1934. The Committee intends that 
the FCC's reporting under this requirement show how 
compensation under section 325 has changed or may change over 
time. The Committee therefore intends that the FCC include 
compensation under section 325 for as many prior periods as it 
determines such information is attainable without unnecessary 
burden.
    Section 3(f) would amend section 257 of the Communications 
Act of 1934 to repeal the Triennial Report Identifying and 
Eliminating Market Entry Barriers for Entrepreneurs and Other 
Small Businesses.
    Section 3(g) would amend section 332 of the Communications 
Act of 1934 to repeal the State of Competitive Market 
Conditions With Respect to Commercial Mobile Radio Services 
report.
    Section 3(h) would amend section 4 of the Communications 
Act of 1934 to repeal the reference to annual reports 
terminated by prior legislation.
    Section 3(i) would strike from the Communications Act of 
1934 outdated or already repealed reports, including the Report 
on Competition between Wire Telephone and Wire Telegraph 
Providers, the 1997 Report on Spectrum Auctions, and several 
reports repealed by the Federal Reports Elimination and Sunset 
Act of 1995.

Section 4. Effect on authority.

    Section 4 would provide that nothing in the underlying 
legislation be construed to expand or contract the authority of 
the FCC.

Section 5. Other reports.

    Section 5 would provide that nothing in the underlying 
legislation be construed to prohibit or otherwise prevent the 
Commission from producing any additional reports otherwise 
within its authority.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

                  COMMUNICATIONS SATELLITE ACT OF 1962

                        [47 U.S.C. 701 et seq.]

[SEC. 646. REPORTS TO CONGRESS.

                            [47 U.S.C. 765e]

  [(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.]

 INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION PRIVATIZATION 
                         REQUIREMENTS REVISION

                  [Public Law 109--34; 119 Stat. 377]

[SEC. 4. SATELLITE SERVICE REPORT.

                            [47 U.S.C. 703]

  [(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

                        [47 U.S.C. 1301 et seq.]

SEC. 103. IMPROVING FEDERAL DATA ON BROADBAND.

                            [47 U.S.C. 1303]

  (a) [Omitted]
  (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] its report under 
        section 13 of the Communications Act of 1934, 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.

           *       *       *       *       *       *       *

                       COMMUNICATIONS ACT OF 1934

                        [47 U.S.C. 151 et seq.]

SEC. 4. FEDERAL COMMUNICATIONS COMMISSION.

                            [47 U.S.C. 154]

  (a) Number of Commissioners; Appointment.--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) Qualifications.--
          (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) by 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 
        constitute a majority of the full membership of the 
        Commission.

           *       *       *       *       *       *       *

  (g) Expenditures.--
          (1) The Commission may make such expenditures 
        (including expenditures for rent and personal services 
        at the seat of government and elsewhere, for office 
        supplies, law books, 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 member 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 
                obligations.]
          [(3)] (2)
                  (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.

           *       *       *       *       *       *       *

  [(k) Annual Reports to Congress.--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 proceeding 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) Record of Reports.--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) Publication of Reports; Admissibility as 
Evidence.--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) Compensation of Appointees.--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) Use of Communications in Safety of Life and 
Property.--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.

[47 U.S.C. 159]

           *       *       *       *       *       *       *

  (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 under 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;
            (3) assess whether laws, regulations, regulatory 
        practices, or demonstrated marketplace practices pose a 
        barrier to competitive entry into the communications 
        marketplace or to the competitive expansion of existing 
        providers of communications services; and
            (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).
    (c) Extension.--If the Senate confirms the Chairman of the 
Commission during the third or fourth quarter of an even-
numbered year, the report required under subsection (a) 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 by March 1 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 include 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 
        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).
    (e) Notification of Delay in Report.--If the Commission 
fails to publish a report by the applicable deadline under 
subsection (a) or (c), the Commission shall, not later than 7 
days after the deadline and every 60 days thereafter until the 
publication of the report--
            (1) provide notification of the delay by letter to 
        the chairperson and ranking member of--
                    (A) the Committee on Energy and Commerce of 
                the House of Representatives; and
                    (B) the Committee on Commerce, Science, and 
                Transportation of the Senate;
            (2) indicate in the letter the date on which the 
        Commission anticipates the report will be published; 
        and
            (3) publish the letter on the website of the 
        Commission.

SEC. 215. EXAMINATION OF TRANSACTIONS RELATING TO FURNISHING OF 
                    SERVICES, EQUIPMENT, ETC.; REPORTS TO CONGRESS.

                            [47 U.S.C. 215]

   (a) Access to Records and Documents.--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 charges made or to be made 
and/or the services rendered or to be rendered by such carrier, 
in wire or radio communication 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, services, 
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) Wire Telephone and Telegraph Services.--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) Exclusive Dealing Contracts.--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 USE OF TELEPHONE EQUIPMENT.

[47 U.S.C. 227]

           *       *       *       *       *       *       *

  (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)] (4) 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)] (5) 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)] (6) 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)] (7) 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)] (8) Limitation.--Notwithstanding any other 
        provision of this section, subsection (f) shall not 
        apply to this subsection or to the regulations under 
        this subsection.

SEC. 257. MARKET ENTRY BARRIERS PROCEEDING.

                            [47 U.S.C. 257]

  (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.]

SEC. 303. POWERS AND DUTIES OF COMMISSION.

[47 U.S.C. 303]

           *       *       *       *       *       *       *

  (u) Require that, if technically feasible--
          (1) apparatus designed to receive or play back video 
        programming transmitted simultaneously with sound, if 
        such apparatus is manufactured in the United States or 
        imported for use in the United States and uses a 
        picture screen of any size--
                  (A) be equipped with built-in closed caption 
                decoder circuitry or capability designed to 
                display closed-captioned video programming;
                  (B) have the capability to decode and make 
                available the transmission and delivery of 
                video description services as required by 
                regulations reinstated and modified pursuant to 
                [section 713(f)] section 713(e); and
                  (C) have the capability to decode and make 
                available emergency information (as that term 
                is defined in section 79.2 of the Commission's 
                regulations (47 CFR 79.2)) in a manner that is 
                accessible to individuals who are blind or 
                visually impaired; and
          (2) notwithstanding paragraph (1) of this 
        subsection--
                  (A) apparatus described in such paragraph 
                that use a picture screen that is less than 13 
                inches in size meet the requirements of 
                subparagraph (A), (B), or (C) of such paragraph 
                only if the requirements of such subparagraphs 
                are achievable (as defined in section 716);
                  (B) any apparatus or class of apparatus that 
                are display-only video monitors with no 
                playback capability are exempt from the 
                requirements of such paragraph; and
                  (C) the Commission shall have the authority, 
                on its own motion or in response to a petition 
                by a manufacturer, to waive the requirements of 
                this subsection for any apparatus or class of 
                apparatus--
                          (i) primarily designed for activities 
                        other than receiving or playing back 
                        video programming transmitted 
                        simultaneously with sound; or
                          (ii) for equipment designed for 
                        multiple purposes, capable of receiving 
                        or playing video programming 
                        transmitted simultaneously with sound 
                        but whose essential utility is derived 
                        from other purposes.

           *       *       *       *       *       *       *

SEC. 309. APPLICATION FOR LICENSE.

[47 U.S.C. 309]

           *       *       *       *       *       *       *

  (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)] (12) 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.
          (1) 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)] (13) 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)] (14) 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)] (iv) 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)] (v) 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)] (15) 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)] (16) 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.

SEC. 331. VERY HIGH FREQUENCY STATIONS AND AM RADIO STATIONS.

[47 U.S.C. 331]

           *       *       *       *       *       *       *

  (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.

                            [47 U.S.C. 332]

  (a) Factors Which Commission Must Consider.--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 market-place 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) Advisory Coordinating Committees.--
          (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.

[47 U.S.C. 336]

           *       *       *       *       *       *       *

  (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),
          (1) 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.

           *       *       *       *       *       *       *

SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

[47 U.S.C. 338]

           *       *       *       *       *       *       *

  (k) Definitions.--As used in this section:
          (1) Distributor.--The term ``distributor'' means an 
        entity which contracts to distribute secondary 
        transmissions from a satellite carrier and, either as a 
        single channel or in a package with other programming, 
        provides the secondary transmission either directly to 
        individual subscribers or indirectly through other 
        program distribution entities.
          (2) Eligible satellite carrier.--The term ``eligible 
        satellite carrier'' means any satellite carrier that is 
        not a party to a carriage contract that--
                  (A) governs carriage of at least 30 qualified 
                noncommercial educational television stations; 
                and
                  (B) is in force and effect within 150 days 
                after the date of enactment of the Satellite 
                Television Extension and Localism Act of 2010.
          (3) Local receive facility.--The term ``local receive 
        facility'' means the reception point in each local 
        market which a satellite carrier designates for 
        delivery of the signal of the station for purposes of 
        retransmission.
          (4) Local market.--The term ``local market'' has the 
        meaning given that term under section 122(j) of title 
        17, United States Code.
          (5) Low power television station.--The term ``low 
        power television station'' means a low power television 
        station as defined under section 74.701(f) of title 47, 
        Code of Federal Regulations, as in effect on June 1, 
        2004. For purposes of this paragraph, the term ``low 
        power television station'' includes a low power 
        television station that has been accorded primary 
        status as a Class A television licensee under section 
        73.6001(a) of title 47, Code of Federal Regulations.
          (6) Qualified noncommercial educational television 
        station.--The term ``qualified noncommercial 
        educational television station'' means any full-power 
        television broadcast station that--
                  (A) under the rules and regulations of the 
                Commission in effect on March 29, 1990, is 
                licensed by the Commission as a noncommercial 
                educational broadcast station and is owned and 
                operated by a public agency, nonprofit 
                foundation, nonprofit corporation, or nonprofit 
                association; and
                  (B) has as its licensee an entity that is 
                eligible to receive a community service grant, 
                or any successor grant thereto, from the 
                Corporation for Public Broadcasting, or any 
                successor organization thereto, on the basis of 
                the formula set forth in [section 396(k)(6)(B)] 
                 section 396(j)(6)(B) of this title.
          (7) Satellite carrier.--The term ``satellite 
        carrier'' has the meaning given such term under section 
        119(d) of title 17, United States Code.
          (8) Secondary transmission.--The term ``secondary 
        transmission'' has the meaning given such term in 
        section 119(d) of title 17, United States Code.
          (9) Subscriber.--The term ``subscriber'' has the 
        meaning given that term under section 122(j) of title 
        17, United States Code.
          (10) Television broadcast station.--The term 
        ``television broadcast station'' has the meaning given 
        such term in section 325(b)(7).

           *       *       *       *       *       *       *

SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE 
                    CARRIERS.

[47 U.S.C. 339]

           *       *       *       *       *       *       *

  (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)] (1) 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)] (2) 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)] (3) Objective verification.--
                  (A) In general.--If a subscriber's request 
                for a waiver under [paragraph (2)] paragraph 
                (1) 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)] (4) Definition.--Notwithstanding subsection 
        (d)(4), for purposes of [paragraphs (2) and (4)] 
        paragraphs (1) and (3) 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.

           *       *       *       *       *       *       *

SEC. 396. CORPORATION FOR PUBLIC BROADCASTING.

[47 U.S.C. 396]

           *       *       *       *       *       *       *

  [(i) Report to Congress.--
          [(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.]
  [(j)] (i) Repeal, Alteration, or Amendment.--The right to 
repeal, alter, or amend this section at any time is expressly 
reserved.
  [(k)] (j) Financing Restrictions.--
          (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); and
                                  (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)(1), 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 broadcast 
                        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 (iii) (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 interests 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)] (V) 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)] 
                                subsection (k)(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)] 
        subsection (k)(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 appropriated 
                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.
  [(l)] (k) Financial Management and Records.--
          (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 requirement 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 auditor'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 entities. 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 biennially to the 
                        Corporation a copy of the audit report 
                        required pursuant to 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, the 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 project 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)] subsection 
                (j)(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)] 
                subsection (j)(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)] subsection (j)(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) Needs of Minorities and Other Groups.--
          [(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.]

SEC. 398. FEDERAL INTERFERENCE OR CONTROL.

[47 U.S.C. 398]

           *       *       *       *       *       *       *

  (b) Equal Opportunity Employment.--.
          (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.

           *       *       *       *       *       *       *

SEC. 399B. OFFERING OF CERTAIN SERVICES, FACILITIES, OR PRODUCTS BY 
                    PUBLIC BROADCAST STATIONS.

[47 U.S.C. 399b]

           *       *       *       *       *       *       *

  (c) Use of Funds From Offering Services, etc.--Any public 
broadcast station which engages in any offering specified in 
subsection (b)(1) may not use any funds distributed by the 
Corporation under [section 396(k)] section 396(j) to defray any 
costs associated with such offering. Any such offering by a 
public broadcast station shall not interfere with the provision 
of public telecommunications services by such station.

           *       *       *       *       *       *       *

SEC. 615. CARRIAGE OF NONCOMMERCIAL EDUCATIONAL TELEVISION.

                            [47 U.S.C. 535]

  (l) Definitions.--For purposes of this section--
          (1) Qualified noncommercial educational television 
        station.--The term ``qualified noncommercial 
        educational television station'' means any television 
        broadcast station which--
                  (A)(i) under the rules and regulations of the 
                Commission in effect on March 29, 1990, is 
                licensed by the Commission as a noncommercial 
                educational television broadcast station and 
                which is owned and operated by a public agency, 
                nonprofit foundation, corporation, or 
                association; and
                          (ii) has as its licensee an entity 
                        which is eligible to receive a 
                        community service grant, or any 
                        successor grant thereto, from the 
                        Corporation for Public Broadcasting, or 
                        any successor organization thereto, on 
                        the basis of the formula set forth in 
                        [section 396(k)(6)(B)] section 
                        396(j)(6)(B); or
                  (B) is owned and operated by a municipality 
                and transmits predominantly noncommercial 
                programs for educational purposes.
          Such term includes (I) the translator of any 
        noncommercial educational television station with five 
        watts or higher power serving the franchise area, (II) 
        a full-service station or translator if such station or 
        translator is licensed to a channel reserved for 
        noncommercial educational use pursuant to section 
        73.606 of title 47, Code of Federal Regulations, or any 
        successor regulations thereto, and (III) such stations 
        and translators operating on channels not so reserved 
        as the Commission determines are qualified as 
        noncommercial educational stations.
          (2) Qualified local noncommercial educational 
        television station.--The term ``qualified local 
        noncommercial educational television station'' means a 
        qualified noncommercial educational television 
        station--
                  (A) which is licensed to a principal 
                community whose reference point, as defined in 
                section 76.53 of title 47, Code of Federal 
                Regulations (as in effect on March 29, 1990), 
                or any successor regulations thereto, is within 
                50 miles of the principal headend of the cable 
                system; or
                  (B) whose Grade B service contour, as defined 
                in section 73.683(a) of such title (as in 
                effect on March 29, 1990), or any successor 
                regulations thereto, encompasses the principal 
                headend of the cable system.

SEC. 623. REGULATION OF RATES.

[47 U.S.C. 543]

           *       *       *       *       *       *       *

  (k) Reports on Average Prices.--
          (1) In general.--The Commission shall [annually 
        publish] publish with its report under section 13 of 
        the Communications Act of 1934 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.

           *       *       *       *       *       *       *

SEC. 624A. CONSUMER ELECTRONICS EQUIPMENT COMPATIBILITY.

[47 U.S.C. 544a]

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

SEC. 628. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO PROGRAMMING 
                    DISTRIBUTION.

                            [47 U.S.C. 548]

  (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.

SEC. 713. VIDEO PROGRAMMING ACCESSIBILITY.

                            [47 U.S.C. 613]

  [(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)] (a) 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)] subsection (c); 
        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)] subsection (c).
  [(c)] (b) Deadlines for Captioning.--
          (1) In general.--The regulations prescribed pursuant 
        to [subsection (b)] subsection (a) 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)] subsection (a), as revised pursuant to 
        paragraph (2)(A) of this subsection, if the 
        requirements of this section are met, as determined by 
        the Commission.
  [(d)] (c) Exemptions.--Notwithstanding [subsection (b)] 
subsection (a)--
          (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)] (d) 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)] (e) 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)] 
                subsection (g), 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)] (f) Emergency Information.--Not later than 1 year after 
the Advisory Committee report under [subsection (e)(2)] 
subsection (d)(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)] (g) 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)] (h) 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.

          MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 2012

                  [Public Law 112--96; 126 Stat. 156]

SEC. 6401. DEADLINES FOR AUCTION OF CERTAIN SPECTRUM.

[47 U.S.C. 1451]

           *       *       *       *       *       *       *

  (b) Reallocation and Auction.--
          (1) In general.--Notwithstanding paragraph [(15)(A)] 
        (14)(A) of section 309(j) of the Communications Act of 
        1934 (47 U.S.C. 309(j)), not later than 3 years after 
        the date of the enactment of this Act, the Commission 
        shall, except as provided in paragraph (4)--
                  (A) allocate the spectrum described in 
                paragraph (2) for commercial use; and
                  (B) through a system of competitive bidding 
                under such section, grant new initial licenses 
                for the use of such spectrum, subject to 
                flexible-use service rules.
          (2) Spectrum described.--The spectrum described in 
        this paragraph is the following:
                  (A) The frequencies between 1915 megahertz 
                and 1920 megahertz.
                  (B) The frequencies between 1995 megahertz 
                and 2000 megahertz.
                  (C) The frequencies described in subsection 
                (a)(2).
                  (D) The frequencies between 2155 megahertz 
                and 2180 megahertz.
                  (E) Fifteen megahertz of contiguous spectrum 
                to be identified by the Commission.
          (3) Proceeds to cover 110 percent of federal 
        relocation or sharing costs.--Nothing in paragraph (1) 
        shall be construed to relieve the Commission from the 
        requirements of section 309(j) [(16)(B)] (15)(B) of the 
        Communications Act of 1934 (47 U.S.C. 309(j)(16)(B)).
          (4) Determination by commission.--If the Commission 
        determines that the band of frequencies described in 
        paragraph (2)(A) or the band of frequencies described 
        in paragraph (2)(B) cannot be used without causing 
        harmful interference to commercial mobile service 
        licensees in the frequencies between 1930 megahertz and 
        1995 megahertz, the Commission may not--
                  (A) allocate such band for commercial use 
                under paragraph (1)(A); or
                  (B) grant licenses under paragraph (1)(B) for 
                the use of such band.

                          TITLE 17. COPYRIGHTS

            CHAPTER 1. SUBJECT MATTER AND SCOPE OF COPYRIGHT

Sec. 114. Scope of exclusive rights in sound recordings

           *       *       *       *       *       *       *

  (d) Limitations on Exclusive Right.--Notwithstanding the 
provisions of section 106(6)--
          (1) Exempt transmissions and retransmissions.--The 
        performance of a sound recording publicly by means of a 
        digital audio transmission, other than as a part of an 
        interactive service, is not an infringement of section 
        106(6) if the performance is part of--
                  (A) a nonsubscription broadcast transmission;
                  (B) a retransmission of a nonsubscription 
                broadcast transmission: Provided, That, in the 
                case of a retransmission of a radio station's 
                broadcast transmission--
                          (i) the radio station's broadcast 
                        transmission is not willfully or 
                        repeatedly retransmitted more than a 
                        radius of 150 miles from the site of 
                        the radio broadcast transmitter, 
                        however--
                                  (I) the 150 mile limitation 
                                under this clause shall not 
                                apply when a nonsubscription 
                                broadcast transmission by a 
                                radio station licensed by the 
                                Federal Communications 
                                Commission is retransmitted on 
                                a nonsubscription basis by a 
                                terrestrial broadcast station, 
                                terrestrial translator, or 
                                terrestrial repeater licensed 
                                by the Federal Communications 
                                Commission; and
                                  (II) in the case of a 
                                subscription retransmission of 
                                a nonsubscription broadcast 
                                retransmission covered by 
                                subclause (I), the 150 mile 
                                radius shall be measured from 
                                the transmitter site of such 
                                broadcast retransmitter;
                          (ii) the retransmission is of radio 
                        station broadcast transmissions that 
                        are--
                                  (I) obtained by the 
                                retransmitter over the air;
                                  (II) not electronically 
                                processed by the retransmitter 
                                to deliver separate and 
                                discrete signals; and
                                  (III) retransmitted only 
                                within the local communities 
                                served by the retransmitter;
                          (iii) the radio station's broadcast 
                        transmission was being retransmitted to 
                        cable systems (as defined in section 
                        111(f)) by a satellite carrier on 
                        January 1, 1995, and that 
                        retransmission was being retransmitted 
                        by cable systems as a separate and 
                        discrete signal, and the satellite 
                        carrier obtains the radio station's 
                        broadcast transmission in an analog 
                        format: Provided, That the broadcast 
                        transmission being retransmitted may 
                        embody the programming of no more than 
                        one radio station; or
                          (iv) the radio station's broadcast 
                        transmission is made by a noncommercial 
                        educational broadcast station funded on 
                        or after January 1, 1995, under 
                        [section 396(k)] section 396(j) of the 
                        Communications Act of 1934 (47 U.S.C. 
                        396(k)), consists solely of 
                        noncommercial educational and cultural 
                        radio programs, and the retransmission, 
                        whether or not simultaneous, is a 
                        nonsubscription terrestrial broadcast 
                        retransmission; or
                  (C) a transmission that comes within any of 
                the following categories--
                          (i) a prior or simultaneous 
                        transmission incidental to an exempt 
                        transmission, such as a feed received 
                        by and then retransmitted by an exempt 
                        transmitter: Provided, That such 
                        incidental transmissions do not include 
                        any subscription transmission directly 
                        for reception by members of the public;
                          (ii) a transmission within a business 
                        establishment, confined to its premises 
                        or the immediately surrounding 
                        vicinity;
                          (iii) a retransmission by any 
                        retransmitter, including a multichannel 
                        video programming distributor as 
                        defined in section 602(12) of the 
                        Communications Act of 1934 (47 U.S.C. 
                        522(12)), of a transmission by a 
                        transmitter licensed to publicly 
                        perform the sound recording as a part 
                        of that transmission, if the 
                        retransmission is simultaneous with the 
                        licensed transmission and authorized by 
                        the transmitter; or
                          (iv) a transmission to a business 
                        establishment for use in the ordinary 
                        course of its business: Provided, That 
                        the business recipient does not 
                        retransmit the transmission outside of 
                        its premises or the immediately 
                        surrounding vicinity, and that the 
                        transmission does not exceed the sound 
                        recording performance complement. 
                        Nothing in this clause shall limit the 
                        scope of the exemption in clause (ii).

           *       *       *       *       *       *       *

Sec. 119. Limitations on exclusive rights: Secondary transmissions of 
                    distant television programming by satellite

  (a) Secondary Transmissions by Satellite Carriers.--
          (1) Non-network stations.--Subject to the provisions 
        of paragraphs (4), (5), and (7) of this subsection and 
        section 114(d), secondary transmissions of a 
        performance or display of a work embodied in a primary 
        transmission made by a non-network station shall be 
        subject to statutory licensing under this section if 
        the secondary transmission is made by a satellite 
        carrier to the public for private home viewing or for 
        viewing in a commercial establishment, with regard to 
        secondary transmissions the satellite carrier is in 
        compliance with the rules, regulations, or 
        authorizations of the Federal Communications Commission 
        governing the carriage of television broadcast station 
        signals, and the carrier makes a direct or indirect 
        charge for each retransmission service to each 
        subscriber receiving the secondary transmission or to a 
        distributor that has contracted with the carrier for 
        direct or indirect delivery of the secondary 
        transmission to the public for private home viewing or 
        for viewing in a commercial establishment.
          (2) Network stations.--
                  (A) In general.--Subject to the provisions of 
                subparagraph (B) of this paragraph and 
                paragraphs (4), (5), (6), and (7) of this 
                subsection and section 114(d), secondary 
                transmissions of a performance or display of a 
                work embodied in a primary transmission made by 
                a network station shall be subject to statutory 
                licensing under this section if the secondary 
                transmission is made by a satellite carrier to 
                the public for private home viewing, with 
                regard to secondary transmissions the satellite 
                carrier is in compliance with the rules, 
                regulations, or authorizations of the Federal 
                Communications Commission governing the 
                carriage of television broadcast station 
                signals, and the carrier makes a direct or 
                indirect charge for such retransmission service 
                to each subscriber receiving the secondary 
                transmission.
                  (B) Secondary transmissions to unserved 
                households.--
                          (i) In general.--The statutory 
                        license provided for in subparagraph 
                        (A) shall be limited to secondary 
                        transmissions of the signals of no more 
                        than two network stations in a single 
                        day for each television network to 
                        persons who reside in unserved 
                        households.
                          (ii) Accurate determinations of 
                        eligibility.--
                                  (I) Accurate predictive 
                                model.--In determining 
                                presumptively whether a person 
                                resides in an unserved 
                                household under subsection 
                                (d)(10)(A), a court shall rely 
                                on the Individual Location 
                                Longley-Rice model set forth by 
                                the Federal Communications 
                                Commission in Docket No. 98-
                                201, as that model may be 
                                amended by the Commission over 
                                time under [section 339(c)(3)] 
                                section 339(c)(2) of the 
                                Communications Act of 1934 to 
                                increase the accuracy of that 
                                model.
                                  (II) Accurate measurements.--
                                For purposes of site 
                                measurements to determine 
                                whether a person resides in an 
                                unserved household under 
                                subsection (d)(10)(A), a court 
                                shall rely on [section 
                                339(c)(4)] section 339(c)(3) of 
                                the Communications Act of 1934.
                                  (III) Accurate predictive 
                                model with respect to digital 
                                signals.--Notwithstanding 
                                subclause (I), in determining 
                                presumptively whether a person 
                                resides in an unserved 
                                household under subsection 
                                (d)(10)(A) with respect to 
                                digital signals, a court shall 
                                rely on a predictive model set 
                                forth by the Federal 
                                Communications Commission 
                                pursuant to a rulemaking as 
                                provided in [section 339(c)(3)] 
                                section 339(c)(2) of the 
                                Communications Act of 1934 (47 
                                U.S.C. 339(c)(3)), as that 
                                model may be amended by the 
                                Commission over time under such 
                                section to increase the 
                                accuracy of that model. Until 
                                such time as the Commission 
                                sets forth such model, a court 
                                shall rely on the predictive 
                                model 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).
                          (iii) C-band exemption to unserved 
                        households.--
                                  (I) In general.--The 
                                limitations of clause (i) shall 
                                not apply to any secondary 
                                transmissions by C-band 
                                services of network stations 
                                that a subscriber to C-band 
                                service received before any 
                                termination of such secondary 
                                transmissions before October 
                                31, 1999.
                                  (II) Definition.--In this 
                                clause, the term ``C-band 
                                service'' means a service that 
                                is licensed by the Federal 
                                Communications Commission and 
                                operates in the Fixed Satellite 
                                Service under part 25 of title 
                                47, Code of Federal 
                                Regulations.
                  (C) Submission of subscriber lists to 
                networks.--
                          (i) Initial lists.--A satellite 
                        carrier that makes secondary 
                        transmissions of a primary transmission 
                        made by a network station pursuant to 
                        subparagraph (A) shall, not later than 
                        90 days after commencing such secondary 
                        transmissions, submit to the network 
                        that owns or is affiliated with the 
                        network station a list identifying (by 
                        name and address, including street or 
                        rural route number, city, State, and 9-
                        digit zip code) all subscribers to 
                        which the satellite carrier makes 
                        secondary transmissions of that primary 
                        transmission to subscribers in unserved 
                        households.
                          (ii) Monthly lists.--After the 
                        submission of the initial lists under 
                        clause (i), the satellite carrier 
                        shall, not later than the 15th of each 
                        month, submit to the network a list, 
                        aggregated by designated market area, 
                        identifying (by name and address, 
                        including street or rural route number, 
                        city, State, and 9-digit zip code) any 
                        persons who have been added or dropped 
                        as subscribers under clause (i) since 
                        the last submission under this 
                        subparagraph.
                          (iii) Use of subscriber 
                        information.--Subscriber information 
                        submitted by a satellite carrier under 
                        this subparagraph may be used only for 
                        purposes of monitoring compliance by 
                        the satellite carrier with this 
                        subsection.
                          (iv) Applicability.--The submission 
                        requirements of this subparagraph shall 
                        apply to a satellite carrier only if 
                        the network to which the submissions 
                        are to be made places on file with the 
                        Register of Copyrights a document 
                        identifying the name and address of the 
                        person to whom such submissions are to 
                        be made. The Register shall maintain 
                        for public inspection a file of all 
                        such documents.
          (3) Statutory license where retransmissions into 
        local market available.--
                  (A) Rules for subscribers to signals under 
                subsection (e).--
                          (i) For those receiving distant 
                        signals.--In the case of a subscriber 
                        of a satellite carrier who is eligible 
                        to receive the secondary transmission 
                        of the primary transmission of a 
                        network station solely by reason of 
                        subsection (e) (in this subparagraph 
                        referred to as a ``distant signal''), 
                        and who, as of October 1, 2004, 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 
                                secondary transmission of the 
                                primary transmission of a local 
                                network station affiliated with 
                                the same television network 
                                pursuant to the statutory 
                                license under section 122, the 
                                statutory license under 
                                paragraph (2) shall apply only 
                                to secondary transmissions by 
                                that satellite carrier to that 
                                subscriber of the distant 
                                signal of a station affiliated 
                                with the same television 
                                network--
                                          (aa) if, within 60 
                                        days after receiving 
                                        the notice of the 
                                        satellite carrier under 
                                        section 338(h)(1) of 
                                        the Communications Act 
                                        of 1934, the subscriber 
                                        elects to retain the 
                                        distant signal; but
                                          (bb) only until such 
                                        time as the subscriber 
                                        elects to receive such 
                                        loca signal.
                                  (II) Notwithstanding 
                                subclause (I), the statutory 
                                license under paragraph (2) 
                                shall not apply with respect to 
                                any subscriber who is eligible 
                                to receive the distant signal 
                                of a television network station 
                                solely by reason of subsection 
                                (e), unless the satellite 
                                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 a list, 
                                aggregated by designated market 
                                area (as defined in section 
                                122(j)(2)(C)), that--
                                          (aa) identifies that 
                                        subscriber by name and 
                                        address (street or 
                                        rural route number, 
                                        city, State, and zip 
                                        code) and specifies the 
                                        distant signals 
                                        received by the 
                                        subscriber; and
                                          (bb) states, to the 
                                        best of the satellite 
                                        carrier's knowledge and 
                                        belief, after having 
                                        made diligent and good 
                                        faith inquiries, that 
                                        the subscriber is 
                                        eligible under 
                                        subsection (e) to 
                                        receive the distant 
                                        signals.
                          (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 
                        subsection (e) and who did not receive 
                        a distant signal of a station 
                        affiliated with the same network on 
                        October 1, 2004, the statutory license 
                        under paragraph (2) shall not apply to 
                        secondary transmissions by that 
                        satellite carrier to that subscriber of 
                        the distant signal of a station 
                        affiliated with the same network.
                  (B) Rules for lawful subscribers as of date 
                of enactment of 2010 act.--In the case of a 
                subscriber of a satellite carrier who, on the 
                day before the date of the enactment of the 
                Satellite Television Extension and Localism Act 
                of 2010, was lawfully receiving the secondary 
                transmission of the primary transmission of a 
                network station under the statutory license 
                under paragraph (2) (in this subparagraph 
                referred to as the ``distant signal''), other 
                than subscribers to whom subparagraph (A) 
                applies, the statutory license under paragraph 
                (2) shall apply to secondary transmissions by 
                that satellite carrier to that subscriber of 
                the distant signal of a station affiliated with 
                the same television network, and the 
                subscriber's household shall continue to be 
                considered to be an unserved household with 
                respect to such network, until such time as the 
                subscriber elects to terminate such secondary 
                transmissions, whether or not the subscriber 
                elects to subscribe to receive the secondary 
                transmission of the primary transmission of a 
                local network station affiliated with the same 
                network pursuant to the statutory license under 
                section 122.
                  (C) Future applicability.--
                          (i) When local signal available at 
                        time of subscription.--The statutory 
                        license under paragraph (2) shall not 
                        apply to the secondary transmission by 
                        a satellite carrier of the primary 
                        transmission of a network station to a 
                        person who 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 secondary transmission 
                        of the primary transmission of a local 
                        network station affiliated with the 
                        same network pursuant to the statutory 
                        license under section 122.
                          (ii) When local signal available 
                        after subscription.--In the case of a 
                        subscriber who lawfully subscribes to 
                        and receives the secondary transmission 
                        by a satellite carrier of the primary 
                        transmission of a network station under 
                        the statutory license under paragraph 
                        (2) (in this clause referred to as the 
                        ``distant signal'') on or after the 
                        date of the enactment of the Satellite 
                        Television Extension and Localism Act 
                        of 2010, the statutory license under 
                        paragraph (2) shall apply to secondary 
                        transmissions by that satellite carrier 
                        to that subscriber of the distant 
                        signal of a station affiliated with the 
                        same television network, and the 
                        subscriber's household shall continue 
                        to be considered to be an unserved 
                        household with respect to such network, 
                        until such time as the subscriber 
                        elects to terminate such secondary 
                        transmissions, but only if such 
                        subscriber subscribes to the secondary 
                        transmission of the primary 
                        transmission of a local network station 
                        affiliated with the same network within 
                        60 days after the satellite carrier 
                        makes available to the subscriber such 
                        secondary transmission of the primary 
                        transmission of such local network 
                        station.
                  (D) Other provisions not affected.--This 
                paragraph shall not affect the applicability of 
                the statutory license to secondary 
                transmissions to unserved households included 
                under paragraph (11).
                  (E) Waiver.--A subscriber who is denied the 
                secondary transmission of a network station 
                under subparagraph (B) or (C) may request a 
                waiver from such denial by submitting a 
                request, through the subscriber's satellite 
                carrier, to the network station in the local 
                market affiliated with the same network where 
                the subscriber is located. The network station 
                shall accept or reject the subscriber's request 
                for a waiver within 30 days after receipt of 
                the request. If the network station fails to 
                accept or reject the subscriber's request for a 
                waiver within that 30-day period, that network 
                station shall be deemed to agree to the waiver 
                request. Unless specifically stated by the 
                network station, a waiver that was granted 
                before the date of the enactment of the 
                Satellite Home Viewer Extension and 
                Reauthorization Act of 2004 under [section 
                339(c)(2)] section 339(c)(1) of the 
                Communications Act of 1934 shall not constitute 
                a waiver for purposes of this subparagraph.
                  (F) Available defined.--For purposes of this 
                paragraph, a satellite carrier makes available 
                a secondary transmission of the primary 
                transmission of a local station to a subscriber 
                or person if the satellite carrier offers that 
                secondary transmission to other subscribers who 
                reside in the same 9-digit zip code as that 
                subscriber or person.

           *       *       *       *       *       *       *

          (13) Waivers.--A subscriber who is denied the 
        secondary transmission of a signal of a network station 
        under subsection (a)(2)(B) may request a waiver from 
        such denial by submitting a request, through the 
        subscriber's satellite carrier, to the network station 
        asserting that the secondary transmission is 
        prohibited. The network station shall accept or reject 
        a subscriber's request for a waiver within 30 days 
        after receipt of the request. 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. Unless specifically stated by the network 
        station, a waiver that was granted before the date of 
        the enactment of the Satellite Home Viewer Extension 
        and Reauthorization Act of 2004 under [section 
        339(c)(2)] section 339(c)(1) of the Communications Act 
        of 1934, and that was in effect on such date of 
        enactment, shall constitute a waiver for purposes of 
        this paragraph.
          (14) Restricted transmission of out-of-state distant 
        network signals into certain markets.--
                  (A) Out-of-state network affiliates.--
                Notwithstanding any other provision of this 
                title, the statutory license in this subsection 
                and subsection (b) shall not apply to any 
                secondary transmission of the primary 
                transmission of a network station located 
                outside of the State of Alaska to any 
                subscriber in that State to whom the secondary 
                transmission of the primary transmission of a 
                television station located in that State is 
                made available by the satellite carrier 
                pursuant to section 122.
                  (B) Exception.--The limitation in 
                subparagraph (A) shall not apply to the 
                secondary transmission of the primary 
                transmission of a digital signal of a network 
                station located outside of the State of Alaska 
                if at the time that the secondary transmission 
                is made, no television station licensed to a 
                community in the State and affiliated with the 
                same network makes primary transmissions of a 
                digital signal.

                                  [all]
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