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[Senate Report 108-140]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-140
_______________________________________________________________________

                                     

                                                       Calendar No. 268

                    FCC REAUTHORIZATION ACT OF 2003

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                       S. H.R. deg. 1264

DATE deg.September 3, 2003.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                      one hundred eighth congress
                             first session

                     JOHN MCCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Ann Begeman, Deputy Staff Director
                  Robert W. Chamberlin, Chief Counsel
      Kevin D. Kayes, Democratic Staff Director and Chief Counsel
                Gregg Elias, Democratic General Counsel

                                                       Calendar No. 268
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-140

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

 
                    FCC REAUTHORIZATION ACT OF 2003

                                _______
                                

               September 3, 2003.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1264]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1264) ``to reauthorize the 
Federal Communications Commission, and for other purposes'', 
having considered the same, reports favorably thereon with 
amendments and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  The purpose of S. 1264 is to reauthorize the Federal 
Communications Commission (FCC or Commission) and make certain 
policy modifications through Fiscal Year 2008 so that the 
agency may continue to carry forth its charge to ensure 
interference-free communication on interstate and international 
radio, television, wire, satellite, and cable communications.

                          Background and Needs

  The FCC, an independent United States government agency 
formed to regulate interstate and foreign communications, was 
established under the Communications Act of 1934 to replace the 
former Federal Radio Commission. The Communications Act 
provided the FCC broad latitude to establish ``a rapid, 
efficient, Nation-wide, and world-wide wire and radio 
communication service''. When established, the FCC had three 
divisions (Broadcast, Telegraph, and Telephone) led by seven 
Commissioners and 233 Federal employees.
  Today, the FCC has approximately 2,000 full-time employees 
directed by five Commissioners who are charged with regulating 
interstate and international communications by radio, 
television, wire, satellite, and cable. The agency's 
jurisdiction covers the 50 States, the District of Columbia, 
and United States' possessions. The Commission has not been 
authorized since 1991.

                          Legislative History

  On June 4, 2003, the Senate Committee on Commerce, Science, 
and Transportation held a hearing entitled, ``FCC Oversight'', 
during which the Committee heard testimony from each of the 
five FCC Commissioners. On June 13, 2003, Senators McCain and 
Hollings introduced S. 1264, a bill to reauthorize the FCC. On 
June 26, 2003, the Committee held an executive session at which 
S. 1264 was considered. The bill was approved unanimously by 
voice vote and was ordered reported with amendments, including: 
an amendment offered by Senators McCain and Hollings to expand 
the reauthorization period to 5 years; an amendment offered by 
Senator Hollings to enhance enforcement rules prohibiting the 
broadcast of obscene or indecent matters; an amendment offered 
by Senator McCain requiring the FCC to provide guidance 
regarding its political advertising regulations; an amendment 
offered by Senator Stevens requiring the FCC to implement a 
rulemaking on the operation of digital television translators 
and on-channel repeaters; an amendment offered by Senator 
Sununu to provide a quadrennial review of media ownership rules 
by the FCC; and, an amendment to phase out the 50 percent 
discount for Ultra High Frequency (UHF) television broadcast 
stations when counting stations toward the national ownership 
limit.

                            Estimated Costs

  In compliance with subsection (a)(3) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraphs (1) and (2) of that subsection in 
order to expedite the business of the Senate.
  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:

     [Insert CBO letter, attached as pages ---- through ----] deg.

                      Regulatory Impact Statement

  In compliance with subsection (b)(2) of paragraph 11 
of rule XXVI of the Standing Rules of the Senate, the Committee 
states that, in its opinion, it is necessary to dispense with 
the requirements of paragraph (1) of that subsection in order 
to expedite the business of the Senate. deg.
  Because S. ------ does not create any new programs, 
the legislation will have no additional regulatory impact, and 
will result in no additional reporting requirements. The 
legislation will have no further effect on the number or types 
of individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and 
businesses. deg.
  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

  S. 1264 would reauthorize the FCC through Fiscal Year 2008 
and is intended to make changes to the Communications Act of 
1934. The number of persons covered by this legislation should 
be consistent with current levels.

                            ECONOMIC IMPACT

  S. 1264 would authorize the appropriation of funds for the 
FCC's programs. These programs are intended to establish 
regulatory policies that promote competition, innovation, and 
investment in broadband services, ensure that a comprehensive 
and sound national competitive framework for communications 
services exists, encourage the best use of spectrum 
domestically and internationally, and provide leadership for 
the rapid restoration of the nation's communications 
infrastructure in the event of disruption. S. 1264 will have no 
negative economic impact.

                                PRIVACY

  S. 1264 is not expected to have an adverse effect on the 
personal privacy of any individuals that will be impacted by 
this legislation.

                               PAPERWORK

  S. 1264 would have a minimal impact on current paperwork 
levels, and seeks to reduce the amount in some areas. Though 
the legislation would require the FCC to perform a review of 
the e-rate program and submit a report to the Congress for each 
of Fiscal Years 2004 through 2008, the bill also would lengthen 
the duration between mandated reviews of the FCC's media 
ownership rules, which had previously placed significant 
administrative burdens on the Commission.

                      Section-by-section Analysis

Section 1. Short Title; Amendment of Communications Act of 1934.
  This section provides that the act may be cited as ``The FCC 
Reauthorization Act of 2003'', and sets forth the purpose of 
the bill, which is to reauthorize the FCC through 2008.

Sec. 2. Authorizations of Appropriations.
  This section would authorize funding for the FCC for Fiscal 
Years (FY) 2004 through 2008. The President's budget requests 
$280,798,000 for the FCC in FY 2004. This bill would authorize 
the appropriation of $500,000 above the President's FY 2004 
budget to pay for travel-related expenses previously paid by 
outside sponsors. (See Section 7 of the bill entitled, ``Ban on 
Reimbursed Travel Expenses''.)
  For FY 2005, the bill would authorize funding for the FCC at 
$299,500,000, which assumes a five percent level of year-over-
year inflation and again provides $500,000 for travel related 
expenses. For FY 2006, FY 2007, and FY 2008, the bill would 
authorize funding for the FCC at a five percent increase over 
the respective previous year's funding.
  Section 2 also would require that application fees received 
under section 8 of the Communications Act of 1934 (47 U.S.C. 
158) be deposited as an offsetting collection in, and credited 
to, an account providing appropriations to carry out the 
functions of the Commission. This change would make the 
collection of application fees consistent with the collection 
of regulatory fees collected under Section 9 of the 
Communications Act of 1934 (47 U.S.C. 159).

Sec. 3. Audits and Review of E-Rate Beneficiary Compliance with Program 
        Requirements.
  This section would direct the FCC to conduct a review into 
the activities authorized by Section 254(h) of the 
Communications Act of 1934 (47 U.S.C. 254(h)), commonly 
referred to as ``e-rate'', and the operations of the National 
Education Technology Funding Corporation established by section 
708 of the Telecommunications Act of 1996. The review would be 
conducted to determine whether specific fraud or abuse of 
Federal funds has occurred in connection with such activities 
or operations. The Commission would be required to transmit a 
report of its findings and conclusions to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Energy and Commerce on the 
anniversary of the bill's enactment for each year between 2004 
and 2008. The bill would authorize the FCC to allocate such 
sums as may be necessary to perform audits of the e-rate 
program.

Sec. 4. Clarification of Congressional Intent with Respect to Biennial 
        Review Modifications; Frequency of Review.
  This section would modify Section 202(h) to require the FCC 
to conduct a review of its media ownership rules once every 
four years, and to specifically allow the FCC to repeal, 
strengthen, limit, or retain its media ownership rules during 
each 202(h) review if it determines such changes to be in the 
public interest. Section 202(h) of the Telecommunications Act 
of 1996 Act sets forth the timing and the standard the FCC 
shall use for reviewing its media ownership rules. Currently, 
202(h) requires the FCC to review its rules every two years. 
Section 4 would change that requirement to every four years. 
Some courts have interpreted Section 202(h) to carry ``with it 
a presumption in favor of repealing or modifying ownership 
rules'' as part of ``a process of deregulation'' set in place 
by the Telecommunication Act 1996 Act. Fox Television Stations 
Inc. v. FCC, 280 F.3d 1027, 1048 (D.C. Cir. 2002); Sinclair 
Broad. Group, Inc. v. FCC, 284 F.3d 148, 152 (D.C. Cir. 2002). 
When the FCC Commissioners appeared before the Committee on 
June 4, 2003, several of the Commissioners agreed that section 
202(h) allows the FCC to strengthen or repeal its broadcast 
ownership rules, but requested clarification from Congress. 
This section would provide such clarification.

Sec. 5. FCC Enforcement Enhancements.
  This section would increase the Commission's ability to 
enforce the Communications Act of 1934 by generally raising the 
statutory cap on Commission fines and forfeitures by a factor 
of ten. The Commission has sought this increased enforcement 
ability to ensure communications providers do not accept 
Commission fines as a ``cost of doing business.'' These fines 
and forfeitures have not been increased since 1991, except for 
an annual adjustment for inflation mandated by The Debt 
Collection Act of 1966.
  Specifically, this section would increase the maximum fines 
against broadcast station licensees or permittees, cable 
television operators or any other multi-channel video 
distributors, or an applicant for any broadcast or cable 
television operator license, permit, certificate, or other 
instrument or authorization issued by the Commission from 
$25,000 for each violation or each day of a continuing 
violation to $250,000 not to exceed $2,500,000 (currently set 
at $250,000). This section would increase the maximum fines 
against common carriers, or an applicant for any common carrier 
license, permit, certificate, or other instrument of 
authorization issued by the Commission from $100,000 for each 
violation or each day of a continuing violation to $1,000,000 
not to exceed $10,000,000 (currently set at $1,000,000). For 
operators not covered above, this section would increase the 
maximum fines from $10,000 for each violation or each day of a 
continuing violation to $100,000 not to exceed $750,000 
(currently set at $75,000).
  This section also would increase the statute of limitations 
for violations of the Communications Act of 1934 from one year 
to two years, and would allow the Commission to assess fines 
against direct broadcast satellite (DBS) operators for 
violations of the Communications Act of 1934 in the same manner 
that the Commission today may assess fines against broadcasters 
and cable operators.
  This section also would provide the FCC with the ability to 
seize equipment where a person engages in malicious 
interference in violation of Section 333 of the Communications 
Act of 1934 (47 U.S.C. 333). Section 333 makes it unlawful for 
a person to willfully or maliciously interfere or cause 
interference to any radio communication. Currently, the 
Communications Act of 1934 allows the Commission, through the 
Department of Justice, to seize equipment only in cases where a 
person is operating without a license, or is selling, 
marketing, or using uncertified equipment. This section would 
provide a third condition under which the Commission would be 
allowed to seize equipment.
  For example, the Commission has had cases involving licensed 
amateur radio operators who willfully or maliciously jam other 
amateurs' signals. Some of these violations pose potential 
public safety threats. The Commission has had cases where 
recreational or commercial boaters have used licensed marine 
radios to jam United States Coast Guard frequencies as well as 
frequencies used by other boaters. Seizure of equipment would 
be a valuable enforcement tool in these instances, particularly 
where those causing the interference fail to respond to less 
severe enforcement action, such as fines, or where the 
interference affects public safety.

Sec. 6. Application of Communications Act with Bankruptcy and Similar 
        Laws.
  This section would prevent successful bidders for spectrum at 
FCC auctions from avoiding their obligations to the Federal 
government by filing for bankruptcy. Language in Section 6 
would ensure that bankruptcy laws shall not be used to--
          - Avoid, discharge, stay, or set-off any pre-petition 
        debt obligation arising from an auction of licenses;
          - Prevent payment obligations of the debtor to the 
        United States if such payments were a condition of 
        receiving the license; or
          - Allow for the automatic cancellation of licenses 
        for failure to comply with any monetary or non-monetary 
        condition for holding any license, such as owing a 
        payment on an installment payment plan to the United 
        States for a license.
  Further, the bill would prevent a debtor/licensee from having 
any right or interest in the proceeds of an auction of any 
license reclaimed by the Commission for failure to pay the 
United States.
  This section also would provide the Commission with the 
authority to establish rules and procedures governing security 
interests in licenses, or the proceeds of the sale of licenses, 
and to establish an office within the Office of the Secretary 
of the FCC for the recording and perfection of security 
interests in licenses for spectrum by the FCC and private 
creditors without regard to otherwise applicable State law.

Sec. 7. Ban on Reimbursed Travel Expenses.
  This section would prevent FCC employees from accepting 
direct or indirect reimbursement from a non-governmental 
sponsor of any convention, conference, or meeting for travel 
expenses. However, the section would allow the Commission to 
establish a de minimis exception to this reimbursement ban so 
that FCC officials or employees may have a soda, a snack, a 
meal, etc. while attending a convention, conference, or 
meeting.

Sec. 8. Application of One-Year Restrictions to Certain Positions.
  This section would require Commission employees who serve in 
certain positions to be treated, for purposes of applying 
limitations on post-employment contact with the agency, the 
same as a person employed at level five of the Senior Executive 
Service. This section in effect would prevent Commission 
employees who serve in certain positions of authority at the 
Commission, or successor positions, from lobbying employees at 
the Commission until a one-year ``cooling off'' period has 
passed without regard to their level of pay.

Sec. 9. Video Description Rules Authority.
  This section would provide the Commission with the authority 
to reinstate, within 90 days after the enactment of the bill, 
its video description rules vacated by the District of Columbia 
Circuit Court of Appeals in Motion Picture Association of 
America, Inc., et al, v. Federal Communications Commission, et 
al, 309 F.3d 796 (D.C. Cir. 2002). The Committee intends that 
the FCC would be allowed to include, when reinstating its rules 
within 90 days, subsequent modifications it had made to its 
original rules. See Implementation of Video Description of 
Video Programming, Memorandum Opinion and Order on 
Reconsideration, 16 F.C.C. Rcd. 1251 (Jan. 18, 2001). This 
section also would provide the FCC with authority to make 
additional changes to its video description rules. Video 
description is often provided over a second audio program (SAP) 
channel. The Committee is mindful that there are other uses of 
the SAP channel, such as the broadcast of Spanish or other 
language translation of programming and the broadcast of 
reading services for the visually impaired, that are beneficial 
to the community. The Committee expects the FCC to balance the 
benefits of these services with the provision of video 
description service in formulating its rules.
  This section also would require the FCC to initiate a 
proceeding, within 180 days after the enactment of the bill, to 
consider whether it is economically and technically feasible 
and consistent with the public interest to include ``accessible 
information'' in its video description rules. ``Accessible 
information'' may include written information displayed on a 
television screen during regular programming, hazardous 
warnings and other emergency information, local and national 
news bulletins, and any other information the Commission deems 
appropriate.

Sec. 10. Political Broadcasting Regulations Review.
  This section would require the Commission to complete a 
rulemaking August 1, 2004, to provide additional guidance to 
broadcasters by and cable television systems about how to 
comply with existing obligations to identify the true sponsors 
of political ads and to establish procedures for dealing with 
complaints about violations of the FCC's existing regulations 
regarding political ads.
  47 C.F.R. 73.1212 and 47 C.F.R. 76.1615 require broadcast 
stations to announce the true identity of the person or entity 
paying for advertising and to exercise ``reasonable diligence'' 
to obtain information that will enable them to make this 
required announcement. Similar requirements exist for cable 
television system operators. This section asks the Commission 
to provide guidance as to what constitutes an exercise of 
reasonable diligence, because current FCC regulations provide 
little guidance. This presents a particular problem in the 
context of political matter and issue advertising, where groups 
sponsoring negative advertising may operate under pseudonyms 
that conceal their true sponsors.
  This section also would require the FCC to create procedures 
for handling complaints concerning violations of its existing 
regulations on advertisements regarding political matter and 
issue advertisements, including the following:
          Sponsorship Identification. These regulations require 
        broadcast stations and cable television operators to 
        announce the true identity of sponsors of political 
        matter and issue advertising and, in the case of 
        broadcast stations, maintain for public inspection a 
        list of the CEOs or boards of directors of groups that 
        pay for such advertising (47 C.F.R. 73.1212 and 
        76.1615);
          Equal Access for Candidates. These regulations 
        require broadcast stations and cable television systems 
        to afford equal access to their facilities to legally 
        qualified candidates for public office (47 C.F.R. 
        73.1940, 73.1941 and 76.205);
          Candidate Rates. These regulations require broadcast 
        stations and cable television systems to provide the 
        ``lowest unit charge'' for certain candidate 
        advertising (47 C.F.R. 73.1942 and 76.206);
          Political File. These regulations require broadcast 
        stations and cable television systems to keep and 
        permit public inspection of a political file containing 
        all requests for broadcast time made by or on behalf of 
        a candidate for public office (47 C.F.R. 73.1943 and 
        76.1701); and
          Reasonable Access. These regulations allow for the 
        revocation of a station license for willful or repeated 
        failure to allow reasonable access to, or permit 
        purchases of reasonable amounts of time for, the use of 
        a broadcasting station by a candidate for Federal 
        office (47 C.F.R. 73.1944) and require DBS providers to 
        provide reasonable access to, or purchases of 
        reasonable amount of time for the use of, their 
        facilities by candidates for Federal office and equal 
        opportunities to legally qualified candidates (47 
        C.F.R. 25.701(b)).

Sec. 11. Special Rules for Indecent Broadcasting.
  This section would amend section 503 of the Communications 
Act of 1934 (47 U.S.C. 503) by adding a new section that would 
affect the FCC's enforcement of broadcasts that are obscene or 
indecent. It is a violation of Federal law to broadcast obscene 
or indecent programming. Specifically, title 18 of the United 
States Code, section 1464, prohibits the utterance of ``any 
obscene, indecent, or profane language by means of radio 
communication''. Congress has given the Commission the 
responsibility for administratively enforcing that section. In 
doing so, the Commission may, among other things, impose a 
monetary forfeiture pursuant to section 503(b)(1) of the 
Communications Act. Pursuant to the new section, if a broadcast 
includes obscene or indecent matter from more than one 
individual during the same program, the FCC must treat the 
obscene or indecent matter from each individual as a separate 
violation.
  This section also would require the Commission to commence a 
license or construction permit revocation proceeding against a 
broadcaster if the Commission has reason to believe that the 
broadcaster has violated section 1464 of title 18. The 
Committee expects the circumstances under which the Commission 
would have reason to believe that a broadcaster has committed 
such a violation to be limited to those in which the Commission 
has issued a forfeiture order against a broadcaster or issued a 
Notice of Apparent Liability (NAL) that has been paid by the 
respective broadcaster. The Committee expects the Commission to 
proceed expeditiously in addressing indecency enforcement 
actions, consistent with the due process rights of 
broadcasters. This section would also change the presumption in 
any such revocation hearing by requiring the Commission to 
revoke a license or construction permit unless the Commission 
determines that such action would not be in the public 
interest. The Committee expects the Commission to give 
substantial weight in any such revocation hearing to whether 
the broadcaster has committed repeated violations of the 
indecency or obscenity laws and remedial efforts by the 
broadcaster.

Sec. 12. Phase-Out of UHF Discount.
  The FCC's rules prohibit any one entity from controlling 
commercial broadcast television stations where the combined 
audience reach exceeds 45 percent of the nation's television 
households. See 47 C.F.R. Sec.  73.3555(e). In developing the 
national broadcast television ownership cap, the FCC determined 
that Ultra High Frequency (UHF) stations should be counted as 
half that of a Very High Frequency (VHF) station. (See 47 
C.F.R. Sec.  73.3555(e)(2)) This is known as the ``UHF 
discount''. The UHF discount is intended to recognize that 
deficiencies in over-the-air UHF reception result in fewer 
households receiving the signal in comparison to VHF 
broadcasts. Nevertheless, since 1985, when the UHF discount was 
enacted, improvements in technology, greater carriage of UHF 
stations on MVPDs, and the impact of the DTV transition have 
led many to argue that the current rule is no longer warranted.
  This section would eliminate the FCC's use of the UHF 
discount for any broadcast television station granted, 
transferred, or assigned after June 2, 2003. The amendment also 
would ``sunset'' the UHF discount on January 1, 2008.

Sec. 13. Digital Translators.
  Section 336(f)(4) of the Act authorizes television 
translators to operate in digital format on the current 
channels. The FCC, however, has promulgated no rules to 
implement this law. This section would require the Commission 
to initiate a rulemaking within 60 days after the enactment of 
the bill, to establish rules and standards for the operation of 
digital translators and digital on-channel repeaters.
  Broadcasters often provide service to rural or remote areas 
through the use television translators and on-channel 
repeaters. In many rural areas, these sources offer the only 
viable option for providing over-the-air television service. 
This section is intended to expedite the authorization and 
operation of digital translators and on-channel repeaters. It 
would ensure that populations served by analog broadcast 
operations will continue to receive service through digital 
broadcast operations. Nothing in this provision is intended to 
alter the primary status of full service television stations as 
they relate to digital translators. In conducting this 
proceeding, the FCC should ensure that digital translators do 
not create addition interference beyond levels currently 
authorized by the FCC for digital transmission, nor conflict 
with the channel assignments of full service analog and digital 
television stations.
  The failure of specified digital translator rules is 
preventing populations served by translators from taking part 
in the nation's transition to digital broadcast and denying 
them access to broadcasters' digital services, including 
educational programming, public safety announcements, and local 
public affairs programming. Notably, public television licenses 
often operate with the assistance of a translator. There are 
over 700 public television station translators nationwide. The 
Committee recognizes the importance of ensuring that all areas 
of the United States enjoy the benefits of digital television. 
Also, in authorizing digital on-channel repeaters, the FCC 
should ensure that such authorizations remain consistent with 
FCC interference rules and policies.

                      Rollcall Votes in Committee

  In accordance with paragraph 7(c) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following description of the record votes during its 
consideration of S. 1264:
  Senator Lautenberg offered an amendment to phase out the 
attribution discount permitted for UHF television stations. By 
rollcall vote of 13 yeas and 10 nays as follows, the amendment 
was adopted:
        YEAS--13                      NAYS--10
Mr. Lott                            Mr. Stevens
Mrs. Hutchison                      Mr. Burns
Ms. Snowe\1\                        Mr. Brownback\1\
Mr. Hollings                        Mr. Smith
Mr. Inouye\1\                       Mr. Fitzgerald
Mr. Rockefeller\1\                  Mr. Ensign\1\
Mr. Kerry\1\                        Mr. Allen\1\
Mr. Dorgen\1\                       Mr. Sununu
Mr. Wyden\1\                        Mr. Breaux
Mrs. Boxer\1\                       Mr. McCain
Mr. Nelson\1\
Ms. Cantwell\1\
Mr. Lautenberg

    \1\By proxy

                        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 ACT OF 1934

SEC. 4. [47 U.S.C. 154] PROVISIONS RELATING TO THE COMMISSION.

  (a) The Federal Communications Commission (in this Act 
referred to as the ``Commission'') shall be composed of five 
Commissioners appointed by the President, by and with the 
advice and consent of the Senate, one of whom the President 
shall designate as chairman.
  (b)(1) Each member of the Commission shall be a citizen of 
the United States.
  (2)(A) No member of the Commission or person employed by the 
Commission shall--
          (i) be financially interested in any company or other 
        entity engaged in the manufacture or sale of 
        telecommunications equipment which is subject to 
        regulation by the Commission;
          (ii) be financially interested in any company or 
        other entity engaged in the business of communication 
        by wire or radio or in the use of the electromagnetic 
        spectrum;
          (iii) be financially interested in any company or 
        other entity which controls any company or other entity 
        specified in clause (i) or clause (ii), or which 
        derives a significant portion of its total income from 
        ownership of stocks, bonds, or other securities of any 
        such company or other entity; or
          (iv) be employed by, hold any official relation to, 
        or own any stocks, bonds, or other securities of, any 
        person significantly regulated by the Commission under 
        this Act;
except that the prohibitions established in this subparagraph 
shall apply only to financial interests in any company or other 
entity which has a significant interest in communications, 
manufacturing, or sales activities which are subject to 
regulation by the Commission.
  (B)(i) The Commission shall have authority to waive, from 
time to time, the application of the prohibitions established 
in subparagraph (A) to persons employed by the Commission if 
the Commission determines that the financial interests of a 
person which are involved in a particular case are minimal, 
except that such waiver authority shall be subject to the 
provisions of section 208 of title 18, United States Code. The 
waiver authority established in this subparagraph shall not 
apply with respect to members of the Commission.
  (ii) In any case in which the Commission exercises the waiver 
authority established in this subparagraph, the Commission 
shall publish notice of such action in the Federal Register and 
shall furnish notice of such action to the appropriate 
committees of each House of the Congress. Each such notice 
shall include information regarding the identity of the person 
receiving the waiver, the position held by such person, and the 
nature of the financial interests which are the subject of the 
waiver.
  (3) The Commission, in determining whether a company or other 
entity has a significant interest in communications, 
manufacturing, or sales activities which are subject to 
regulation by the Commission, shall consider (without excluding 
other relevant factors)--
          (A) the revenues, investments, profits, and 
        managerial efforts directed to the related 
        communications, manufacturing, or sales activities of 
        the company or other entity involved, as compared to 
        the other aspects of the business of such company or 
        other entity;
          (B) the extent to which the Commission regulates and 
        oversees the activities of such company or other 
        entity;
          (C) the degree to which the economic interests of 
        such company or other entity may be affected by any 
        action of the Commission; and
          (D) the perceptions held by the public regarding the 
        business activities of such company or other entity.
  (4) Members of the Commission shall not engage in any other 
business, vocation, profession, or employment while serving as 
such members.
  (5) The maximum number of commissioners who may be members of 
the same political party shall be a number equal to the least 
number of commissioners which constitutes a majority of the 
full membership of the Commission.
  (c) Commissioners shall be appointed for terms of five years 
and until their successors are appointed and have been 
confirmed and taken the oath of office, except that they shall 
not continue to serve beyond the expiration of the next session 
of Congress subsequent to the expiration of said fixed term of 
office; except that any person chosen to fill a vacancy shall 
be appointed only for the unexpired term of the Commissioner 
whom he succeeds. No vacancy in the Commission shall impair the 
right of the remaining commissioners to exercise all the powers 
of the Commission.
  (d) Each Commissioner shall receive an annual salary at the 
annual rate payable from time to time for level IV of the 
Executive Schedule, payable in monthly installments. The 
Chairman of the Commission, during the period of his service as 
Chairman, shall receive an annual salary at the annual rate 
payable from time to time for level III of the Executive 
Schedule.
  (e) The principal office of the Commission shall be in the 
District of Columbia, where its general sessions shall be held; 
but whenever the convenience of the public or of the parties 
may be promoted or delay or expense prevented thereby, the 
Commission may hold special sessions in any part of the United 
States.
  (f)(1) The Commission shall have authority, subject to the 
provisions of the civil-service laws and the Classification Act 
of 1949, as amended, to appoint such officers, engineers, 
accountants, attorneys, inspectors, examiners, and other 
employees as are necessary in the exercise of its functions.
  (2) Without regard to the civil-service laws, but subject to 
the Classification Act of 1949, each commissioner may appoint 
three professional assistants and a secretary, each of whom 
shall perform such duties as such commissioner shall direct. In 
addition, the chairman of the Commission may appoint, without 
regard to the civil-service laws, but subject to the 
Classification Act of 1949, an administrative assistant who 
shall perform such duties as the chairman shall direct.
  (3) The Commission shall fix a reasonable rate of extra 
compensation for overtime services of engineers in charge and 
radio engineers of the Field Engineering and Monitoring Bureau 
of the Federal Communications Commission, who may be required 
to remain on duty between the hours of 5 o'clock postmeridian 
and 8 o'clock antemeridian or on Sundays or holidays to perform 
services in connection with the inspection of ship radio 
equipment and apparatus for the purposes of part II of title 
III of this Act or the Great Lakes Agreement, on the basis of 
one-half day's additional pay for each two hours or fraction 
thereof of at least one hour that the overtime extends beyond 5 
o'clock postmeridian (but not to exceed two and one-half days' 
pay for the full period from 5 o'clock postmeridian to 8 
o'clock antemeridian) and two additional days' pay for Sunday 
or holiday duty. The said extra compensation for overtime 
services shall be paid by the master, owner, or agent of such 
vessel to the local United States collector of customs or his 
representative, who shall deposit such collection into the 
Treasury of the United States to an appropriately designated 
receipt account: Provided, That the amounts of such collections 
received by the said collector of customs or his 
representatives shall be covered into the Treasury as 
miscellaneous receipts; and the payments of such extra 
compensation to the several employees entitled thereto shall be 
made from the annual appropriations for salaries and expenses 
of the Commission: Provided further, That to the extent that 
the annual appropriations which are hereby authorized to be 
made from the general fund of the Treasury are insufficient, 
there are hereby authorized to be appropriated from the general 
fund of the Treasury such additional amounts as may be 
necessary to the extent that the amounts of such receipts are 
in excess of the amounts appropriated: Provided further, That 
such extra compensation shall be paid if such field employees 
have been ordered to report for duty and have so reported 
whether the actual inspection of the radio equipment or 
apparatus takes place or not: And provided further, That in 
those ports where customary working hours are other than those 
hereinabove mentioned, the engineers in charge are vested with 
authority to regulate the hours of such employees so as to 
agree with prevailing working hours in said ports where 
inspections are to be made, but nothing contained in this 
proviso shall be construed in any manner to alter the length of 
a working day for the engineers in charge and radio engineers 
or the overtime pay herein fixed: and Provided further, That, 
in the alternative, an entity designated by the Commission may 
make the inspections referred to in this paragraph.
  (4)(A) The Commission, for purposes of preparing or 
administering any examination for an amateur station operator 
license, may accept and employ the voluntary and uncompensated 
services of any individual who holds an amateur station 
operator license of a higher class than the class of license 
for which the examination is being prepared or administered. In 
the case of examinations for the highest class of amateur 
station operator license, the Commission may accept and employ 
such services of any individual who holds such class of 
license.
  (B)(i) The Commission, for purposes of monitoring violations 
of any provision of this Act (and of any regulation prescribed 
by the Commission under this Act) relating to the amateur radio 
service, may--
          (I) recruit and train any individual licensed by the 
        Commission to operate an amateur station; and
          (II) accept and employ the voluntary and 
        uncompensated services of such individual.
  (ii) The Commission, for purposes of recruiting and training 
individuals under clause (i) and for purposes of screening, 
annotating, and summarizing violation reports referred under 
clause (i), may accept and employ the voluntary and 
uncompensated services of any amateur station operator 
organization.
  (iii) The functions of individuals recruited and trained 
under this subparagraph shall be limited to--
          (I) the detection of improper amateur radio 
        transmissions;
          (II) the conveyance to Commission personnel of 
        information which is essential to the enforcement of 
        this Act (or regulations prescribed by the Commission 
        under this Act) relating to the amateur radio service; 
        and
          (III) issuing advisory notices, under the general 
        direction of the Commission, to persons who apparently 
        have violated any provision of this Act (or regulations 
        prescribed by the Commission under this Act) relating 
        to the amateur radio service.
Nothing in this clause shall be construed to grant individuals 
recruited and trained under this subparagraph any authority to 
issue sanctions to violators or to take any enforcement action 
other than any action which the Commission may prescribe by 
rule.
  (C)(i) The Commission, for purposes of monitoring violations 
of any provision of this Act (and of any regulation prescribed 
by the Commission under this Act) relating to the citizens band 
radio service, may--
          (I) recruit and train any citizens band radio 
        operator; and
          (II) accept and employ the voluntary and 
        uncompensated services of such operator.
  (ii) The Commission, for purposes of recruiting and training 
individuals under clause (i) and for purposes of screening, 
annotating, and summarizing violation reports referred under 
clause (i), may accept and employ the voluntary and 
uncompensated services of any citizens band radio operator 
organization. The Commission, in accepting and employing 
services of individuals under this subparagraph, shall seek to 
achieve a broad representation of individuals and organizations 
interested in citizens band radio operation.
  (iii) The functions of individuals recruited and trained 
under this subparagraph shall be limited to--
          (I) the detection of improper citizens band radio 
        transmissions;
          (II) the conveyance to Commission personnel of 
        information which is essential to the enforcement of 
        this Act (or regulations prescribed by the Commission 
        under this Act) relating to the citizens band radio 
        service; and
          (III) issuing advisory notices, under the general 
        direction of the Commission, to persons who apparently 
        have violated any provision of this Act (or regulations 
        prescribed by the Commission under this Act) relating 
        to the citizens band radio service.
Nothing in this clause shall be construed to grant individuals 
recruited and trained under this subparagraph any authority to 
issue sanctions to violators or to take any enforcement action 
other than any action which the Commission may prescribe by 
rule.
  (D) The Commission shall have the authority to endorse 
certification of individuals to perform transmitter 
installation, operation, maintenance, and repair duties in the 
private land mobile services and fixed services (as defined by 
the Commission by rule) if such certification programs are 
conducted by organizations or committees which are 
representative of the users in those services and which consist 
of individuals who are not officers or employees of the Federal 
Government.
  (E) The authority of the Commission established in this 
paragraph shall not be subject to or affected by the provisions 
of part III of title 5, United States Code, or section 3679(b) 
of the Revised Statutes (31 U.S.C. 665(b)).
  (F) Any person who provides services under this paragraph 
shall not be considered, by reason of having provided such 
services, a Federal employee.
  (G) The Commission, in accepting and employing services of 
individuals under subparagraphs (A) and (B), shall seek to 
achieve a broad representation of individuals and organizations 
interested in amateur station operation.
  (H) The Commission may establish rules of conduct and other 
regulations governing the service of individuals under this 
paragraph.
  (I) With respect to the acceptance of voluntary uncompensated 
services for the preparation, processing, or administration of 
examinations for amateur station operator licenses, pursuant to 
subparagraph (A) of this paragraph, individuals, or 
organizations which provide or coordinate such authorized 
volunteer services may recover from examinees reimbursement for 
out-of-pocket costs.
  (5)(A) The Commission, for purposes of preparing and 
administering any examination for a commercial radio operator 
license or endorsement, may accept and employ the services of 
persons that the Commission determines to be qualified. Any 
person so employed may not receive compensation for such 
services, but may recover from examinees such fees as the 
Commission permits, considering such factors as public service 
and cost estimates submitted by such person.
  (B) The Commission may prescribe regulations to select, 
oversee, sanction, and dismiss any person authorized under this 
paragraph to be employed by the Commission.
  (C) Any person who provides services under this paragraph or 
who provides goods in connection with such services shall not, 
by reason of having provided such service or goods, be 
considered a Federal or special government employee.
  (g)(1) The Commission may make such expenditures (including 
expenditures for rent and personal services at the seat of 
government and elsewhere, for office supplies, lawbooks, 
periodicals, and books of reference, for printing and binding, 
for land for use as sites for radio monitoring stations and 
related facilities, including living quarters where necessary 
in remote areas, for the construction of such stations and 
facilities, and for the improvement, furnishing, equipping, and 
repairing of such stations and facilities and of laboratories 
and other related facilities (including construction of minor 
subsidiary buildings and structures not exceeding $25,000 in 
any one instance) used in connection with technical research 
activities), as may be necessary for the execution of the 
functions vested in the Commission and as may be appropriated 
for by the Congress in accordance with the authorizations of 
appropriations established in section 6. All expenditures of 
the Commission, including all necessary expenses for 
transportation incurred by the commissioners or by their 
employees, under their orders, in making any investigation or 
upon any official business in any other places than in the city 
of Washington, shall be allowed and paid on the presentation of 
itemized vouchers therefor approved by the chairman of the 
Commission or by such other members or officer thereof as may 
be designated by the Commission for that purpose.
  [(2)(A) If--
          [(i) the necessary expenses specified in the last 
        sentence of paragraph (1) have been incurred for the 
        purpose of enabling commissioners or employees of the 
        Commission to attend and participate in any convention, 
        conference, or meeting;
          [(ii) such attendance and participation are in 
        furtherance of the functions of the Commission; and
          [(iii) such attendance and participation are 
        requested by the person sponsoring such convention, 
        conference, or meeting;
then the Commission shall have authority to accept direct 
reimbursement from such sponsor for such necessary expenses.
  [(B) The total amount of unreimbursed expenditures made by 
the Commission for travel for any fiscal year, together with 
the total amount of reimbursements which the Commission accepts 
under subparagraph (A) for such fiscal year, shall not exceed 
the level of travel expenses appropriated to the Commission for 
such fiscal year.
  [(C) The Commission shall submit to the appropriate 
committees of the Congress, and publish in the Federal 
Register, quarterly reports specifying reimbursements which the 
Commission has accepted under this paragraph.
  [(D) The provisions of this paragraph shall cease to have any 
force or effect at the end of fiscal year 1994.
  [(E) Funds which are received by the Commission as 
reimbursements under the provisions of this paragraph after the 
close of a fiscal year shall remain available for obligation.]
  (2) Notwithstanding section 1353 of title 31, United States 
Code, section 4111 of title 5, United States Code, or any other 
provision of law in pari materia, no Commissioner or employee 
of the Commission may accept, nor may the Commission accept, 
payment or reimbursement from the nongovernmental sponsor (or 
any affiliated organization) of any convention, conference, or 
meeting for expenses for travel, subsistence, or related 
expenses incurred by a commissioner or employee of the 
Commission for the purpose of enabling that commissioner or 
employee to attend and participate in any such convention, 
conference, or meeting. The Commission may establish a de 
minimus level of payment or value to which the preceding 
sentence does not apply.
  (3)(A) Notwithstanding any other provision of law, in 
furtherance of its functions the Commission is authorized to 
accept, hold, administer, and use unconditional gifts, 
donations, and bequests of real, personal, and other property 
(including voluntary and uncompensated services, as authorized 
by section 3109 of title 5, United States Code).
  (B) The Commission, for purposes of providing radio club and 
military-recreational call signs, may utilize the voluntary, 
uncompensated, and unreimbursed services of amateur radio 
organizations authorized by the Commission that have tax-exempt 
status under section 501(c)(3) of the Internal Revenue Code of 
1986.
  (C) For the purpose of Federal law on income taxes, estate 
taxes, and gift taxes, property or services accepted under the 
authority of subparagraph (A) shall be deemed to be a gift, 
bequest, or devise to the United States.
  (D) The Commission shall promulgate regulations to carry out 
the provisions of this paragraph. Such regulations shall 
include provisions to preclude the acceptance of any gift, 
bequest, or donation that would create a conflict of interest 
or the appearance of a conflict of interest.
  (h) Three members of the Commission shall constitute a quorum 
thereof. The Commission shall have an official seal which shall 
be judicially noticed.
  (i) The Commission may perform any and all acts, make such 
rules and regulations, and issue such orders, not inconsistent 
with this Act, as may be necessary in the execution of its 
functions.
  (j) The Commission may conduct its proceedings in such manner 
as will best conduce to the proper dispatch of business and to 
the ends of justice. No commissioner shall participate in any 
hearing or proceeding in which he has a pecuniary interest. Any 
party may appear before the Commission and be heard in person 
or by attorney. Every vote and official act the Commission 
shall be entered of record, and its proceedings shall be public 
upon the request of any party interested. The Commission is 
authorized to withhold publication of records or proceedings 
containing secret information affecting the national defense.
  (k) The Commission shall make an annual report to Congress, 
copies of which shall be distributed as are other reports 
transmitted to Congress. Such reports shall contain--
          (1) such information and data collected by the 
        Commission as may be considered of value in the 
        determination of questions connected with the 
        regulation of interstate and foreign wire and radio 
        communication and radio transmission of energy;
          (2) such information and data concerning the 
        functioning of the Commission as will be of value to 
        Congress in appraising the amount and character of the 
        work and accomplishments of the Commission and the 
        adequacy of its staff and equipment;
          (3) an itemized statement of all funds expended 
        during the preceding year by the Commission, of the 
        sources of such funds, and of the authority in this Act 
        or elsewhere under which such expenditures were made; 
        and
          (4) specific recommendations to Congress as to 
        additional legislation which the Commission deems 
        necessary or desirable, including all legislative 
        proposals submitted for approval to the Director of the 
        Office of Management and Budget.
  (l) 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) 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) 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) 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.
  (p) Application With Bankruptcy Laws.--
          (1) In general.--The bankruptcy laws shall not be 
        applied--
                  (A) to avoid, discharge, stay, or set-off any 
                pre-petition debt obligation to the United 
                States arising from an auction under this Act,
                  (B) to stay the payment obligations of the 
                debtor to the United States if such payments 
                were a condition of the grant or retention of a 
                license under this Act, or
                  (C) to prevent the automatic cancellation of 
                licenses for failure to comply with any 
                monetary or non-monetary condition for holding 
                any license issued by the Commission, including 
                automatic cancellation of licenses for failure 
                to pay a monetary obligation of the debtor to 
                the United States when due under an installment 
                payment plan arising from an auction under this 
                Act,
        except that, upon cancellation of a license issued by 
        the Commission, the United States shall have an allowed 
        unsecured claim for any outstanding debt to the United 
        States with respect to such canceled licenses, and that 
        unsecured debt may be recovered by the United States 
        under its rights as a creditor under title 11, United 
        States Code, or other applicable law.
          (2) Debtor to have no interest in proceeds of 
        auction.--A debtor in a proceeding under the bankruptcy 
        laws shall have no right or interest in any portion of 
        the proceeds from an auction of any license reclaimed 
        by the Commission for failure to pay a monetary 
        obligation of the debtor to the United States in 
        connection with the grant or retention of a license 
        under this Act.
          (3) Security interests.--Notwithstanding any other 
        provision of law, the Commission may--
                  (A) establish rules and procedures governing 
                security interests in licenses, or the proceeds 
                of the sale of licenses, issued by the 
                Commission; and
                  (B) establish an office within the Office of 
                Secretary for the recording and perfection of 
                such security interests without regard to 
                otherwise applicable State law.
          (4) Bankruptcy laws defined.--In this subsection, the 
        term ``bankruptcy laws'' means title 11, United States 
        Code, or any otherwise applicable Federal or State law 
        regarding insolvencies or receiverships, including any 
        Federal law enacted or amended after the date of 
        enactment of the FCC Reauthorization Act of 2003 not 
        expressly in derogation of this subsection.

                             * * * * * * *

SEC. 6. [47 U.S.C. 156] AUTHORIZATION OF APPROPRIATIONS.

  [(a) There are authorized to be appropriated for the 
administration of this Act by the Commission $109,831,000 for 
fiscal year 1990 and $119,831,000 for fiscal year 1991, 
together with such sums as may be necessary for increases 
resulting from adjustments in salary, pay, retirement, other 
employee benefits required by law, and other nondiscretionary 
costs, for each of the fiscal years 1990 and 1991.
  [(b) In addition to the amounts authorized to be appropriated 
under this section, not more than 4 percent of the amount of 
any fees or other charges payable to the United States which 
are collected by the Commission during fiscal year 1990 are 
authorized to be made available to the Commission until 
expended to defray the fully distributed costs of such fees 
collection.
  [(c) Of the amounts appropriated pursuant to subsection (a) 
for fiscal year 1991, such sums as may be necessary not to 
exceed $2,000,000 shall be expended for upgrading and 
modernizing equipment at the Commission's electronic emissions 
test laboratory located in Laurel, Maryland.]
  (a) In General.--There are authorized to be appropriated for 
the administration of this Act by the Commission $281,289,000 
for fiscal year 2004, $299,500,000 for fiscal year 2005, 
$318,982,000 for fiscal year 2006, and $334,931,000 for each of 
fiscal years 2007 and 2008, to carry out this Act including 
amounts necessary for unreimbursed travel, together with such 
sums as may be necessary for increases resulting from 
adjustments in salary, pay, retirement, other employee benefits 
required by law, and other nondiscretionary costs, for each of 
such years.
  (b) Staffing Levels.--The Commission may hire and maintain an 
adequate number of full time equivalent staff, to the extent of 
the amounts authorized by subsection (a), necessary to carry 
out the Commission's powers and duties under this Act.
  [(d)] (c) Regulatory Fees Offset._Of the sum appropriated in 
any fiscal year under this section, a portion, in an amount 
determined under section 9(b), shall be derived from fees 
authorized by section 9.

                             * * * * * * *

SEC. 8. [47 U.S.C. 158] APPLICATION FEES.

  (a) The Commission shall assess and collect application fees 
at such rates as the Commission shall establish or at such 
modified rates as it shall establish pursuant to the provisions 
of subsection (b) of this section.
  (b)(1) The Schedule of Application Fees established under 
this section shall be reviewed by the Commission every two 
years after October 1, 1991, and adjusted by the Commission to 
reflect changes in the Consumer Price Index. Increases or 
decreases in application fees shall apply to all categories of 
application fees, except that individual fees shall not be 
adjusted until the increase or decrease, as determined by the 
net change in the Consumer Price Index since the date of 
enactment of this section, amounts to at least $5.00 in the 
case of fees under $100.00, or 5 percent in the case of fees of 
$100.00 or more. All fees which require adjustment will be 
rounded upward to the next $5.00 increment. The Commission 
shall transmit to the Congress notification of any such 
adjustment not later than 90 days before the effective date of 
such adjustment.
  (2) Increases or decreases in application fees made pursuant 
to this subsection shall not be subject to judicial review.
  (c)(1) The Commission shall prescribe by regulation an 
additional application fee which shall be assessed as a penalty 
for late payment of application fees required by subsection (a) 
of this section. Such penalty shall be 25 percent of the amount 
of the application fee which was not paid in a timely manner.
  (2) The Commission may dismiss any application or other 
filing for failure to pay in a timely manner any application 
fee or penalty under this section.
  (d)(1) The application fees established under this section 
shall not be applicable (A) to governmental entities and 
nonprofit entities licensed in the following radio services: 
Local Government, Police, Fire, Highway Maintenance, Forestry-
Conservation, Public Safety, and Special Emergency Radio, or 
(B) to governmental entities licensed in other services.
  (2) The Commission may waive or defer payment of an charge in 
any specific instance for good cause shown, where such action 
would promote the public interest.
  [(e) Moneys received from application fees established under 
this section shall be deposited in the general fund of the 
Treasury to reimburse the United States for amounts 
appropriated for use by the Commission in carrying out its 
functions under this Act.]
  (e) Deposit of Collections.--Moneys received from fees 
established under this section shall be deposited as an 
offsetting collection in, and credited to, the account 
providing appropriations to carry out the functions of the 
Commission.
  (f) The Commission shall prescribe appropriate rules and 
regulations to carry out the provisions of this section.
  (g) Until modified pursuant to subsection (b) of this 
section, the Schedule of Application Fees which the Federal 
Communications Commission shall prescribe pursuant to 
subsection (a) of this section shall be as follows:

                      SCHEDULE OF APPLICATION FEES

Service
                                                              Fee amount

                          PRIVATE RADIO SERVICES

1. Marine Coast Stations
    a. New License (per station)..............................   $70.00 
    b. Modification of License (per station)..................    70.00 
    c. Renewal of License (per station).......................    70.00 
    d. Special Temporary Authority (Initial, Modifications, 
      Extensions).............................................   100.00 
    e. Assignments (per station)..............................    70.00 
    f. Transfers of Control (per station).....................    35.00 
    g. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
  2. Ship Stations
    a. New License (per application)..........................    35.00 
    b. Modification of License (per application)..............    35.00 
    c. Renewal of License (per application)...................    35.00 
    d. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
  3. Operational Fixed Microwave Stations
    a. New License (per station)..............................   155.00 
    b. Modification of License (per station)..................   155.00 
    c. Renewal of License (per station).......................   155.00 
    d. Special Temporary Authority (Initial, Modifications, 
      Extensions).............................................    35.00 
    e. Assignments (per station)..............................   155.00 
    f. Transfers of Control (per station).....................    35.00 
    g. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
4. Aviation (Ground Stations)
    a. New License (per station)..............................    70.00 
    b. Modification of License (per station)..................    70.00 
    c. Renewal of License (per station).......................    70.00 
    d. Special Temporary Authority (Initial, Modifications, 
      Extensions).............................................   100.00 
    e. Assignments (per station)..............................    70.00 
    f. Transfers of Control (per station).....................    35.00 
    g. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
5. Aircraft Stations
    a. New License (per application)..........................    35.00 
    b. Modification of License (per application)..............    35.00 
    c. Renewal of License (per application)...................    35.00 
    d. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
6. Land Mobile Radio Stations (including Special Emergency and 
    Public Safety Stations)
    a. New License (per call sign)............................    35.00 
    b. Modification of License (per call sign)................    35.00 
    c. Renewal of License (per call sign).....................    35.00 
    d. Special Temporary Authority (Initial, Modifications, 
      Extensions).............................................    35.00 
    e. Assignments (per station)..............................    35.00 
    f. Transfers of Control (per call sign)...................    35.00 
    g. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
    h. Reinstatement (per call sign)..........................    35.00 
    i. Specialized Mobile Radio Systems-Base Stations
        (i) New License (per call sign).......................    35.00 
        (ii) Modification of License (per call sign)..........    35.00 
        (iii) Renewal of License (per call sign)..............    35.00 
        (iv) Waiting List (annual application fee per 
          application)........................................    35.00 
        (v) Special Temporary Authority (Initial, 
          Modifications, Extensions)..........................    35.00 
        (vi) Assignments (per call sign)......................    35.00 
        (vii) Transfers of Control (per call sign)............    35.00 
        (viii) Request for Waiver
            (1) Routine (per request).........................   105.00 
            (2) Non-Routine (per rule section/per station)....   105.00 
        (ix) Reinstatements (per call sign)...................    35.00 
    j. Private Carrier Licenses
        (i) New License (per call sign).......................    35.00 
        (ii) Modification of License (per call sign)..........    35.00 
        (iii) Renewal of License (per call sign)..............    35.00 
        (iv) Special Temporary Authority (Initial, 
          Modifications, Extensions)..........................    35.00 
        (v) Assignments (per call sign).......................    35.00 
        (vi) Transfers of Control (per call sign).............    35.00 
        (vii) Request for Waiver
            (1) Routine (per request).........................   105.00 
            (2) Non-Routine (per rule section/per station)....   105.00 
        (viii) Reinstatements (per call sign).................    35.00 
7. General Mobile Radio Service
    a. New License (per call sign)............................    35.00 
    b. Modifications of License (per call sign)...............    35.00 
    c. Renewal of License (per call sign).....................    35.00 
    d. Request for Waiver
        (i) Routine (per request).............................   105.00 
        (ii) Non-Routine (per rule section/per station).......   105.00 
    e. Special Temporary Authority (Initial, Modifications, 
      Extensions).............................................    35.00 
    f. Transfer of control (per call sign)....................    35.00 
8. Restricted Radiotelephone Operator Permit..................    35.00 
9. Request for Duplicate Station License (all services).......    35.00 
10. Hearing (Comparative, New, and Modifications)............. 6,760.00 

              EQUIPMENT APPROVAL SERVICES/EXPERIMENTAL RADIO

1. Certification
    a. Receivers (except TV and FM receivers).................   285.00 
    b. All Other Devices......................................   735.00 
    c. Modifications and Class II Permissive Changes..........    35.00 
    d. Request for Confidentiality............................   105.00 
2. Type Acceptance
    a. All Devices............................................   370.00 
    b. Modifications and Class II Permissive Changes..........    35.00 
    c. Request for Confidentiality............................   105.00 
3. Type Approval (all devices)
    a. With Testing (including Major Modifications)........... 1,465.00 
    b. Without Testing (including Minor Modifications)........   170.00 
    c. Request for Confidentiality............................   105.00 
4. Notifications..............................................   115.00 
5. Advance Approval for Subscription TV System................ 2,255.00 
    a. Request for Confidentiality............................   105.00 
6. Assignment of Grantee Code for Equipment Identification....    35.00 
7. Experimental Radio Service
    a. New Construction Permit and Station Authorization (per 
      application)............................................    35.00 
    b. Modification to Existing Construction Permit and 
      Station Authorization (per application).................    35.00 
    c. Renewal of Station Authorization (per application).....    35.00 
    d. Assignment or Transfer of Control (per application)....    35.00 
    e. Special Temporary Authority (per application)..........    35.00 
    f. Additional Application Fee for Applications Containing 
      Requests to Withhold Information From Public Inspection 
      (per application).......................................    35.00 

                            MASS MEDIA SERVICES

1. Commercial TV Stations
    a. New or Major Change Construction Permits............... 2,535.00 
    b. Minor Change...........................................   565.00 
    c. Hearing (Major/Minor Change, Comparative New, or 
      Comparative Renewal).................................... 6,760.00 
    d. License................................................   170.00 
    e. Assignment or Transfer
        (i) Long Form (Forms 314/315).........................   565.00 
        (ii) Short Form (Form 316)............................    80.00 
    f. Renewal................................................   100.00 
    g. Call Sign (New or Modification)........................    55.00 
    h. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
    i. Extension of Time to Construct or Replacement of CP....   200.00 
    j. Permit to Deliver Programs to Foreign Broadcast 
      Stations................................................    55.00 
    k. Petition for Rulemaking for New Community of License... 1,565.00 
    l. Ownership Report (per report)..........................    35.00 
2. Commercial Radio Stations
    a. New and Major Change Construction Permit
        (i) AM Station........................................ 2,255.00 
        (ii) FM Station....................................... 2,030.00 
    b. Minor Change
        (i) AM Station........................................   565.00 
        (ii) FM Station.......................................   565.00 
    c. Hearing (Major/Minor Change, Comparative New, or 
      Comparative Renewal).................................... 6,760.00 
    d. License
        (i) AM................................................   370.00 
        (ii) FM...............................................   115.00 
        (iii) AM Directional Antenna..........................   425.00 
        (iv) FM Directional Antenna...........................   355.00 
        (v) AM Remote Control.................................    35.00 
    e. Assignment or Transfer
        (i) Long Form (Forms 314/315).........................   565.00 
        (ii) Short Form (Form 316)............................    80.00 
    f. Renewal................................................   100.00 
    g. Call Sign (New or Modification)........................    55.00 
    h. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
    i. Extension of Time to Construct or Replacement of CP....   200.00 
    j. Permit to Deliver Programs to Foreign Broadcast 
      Stations................................................    55.00 
    k. Petition for Rulemaking for New Community of License or 
      Higher Class Channel.................................... 1,565.00 
    l. Ownership Report (per report)..........................    35.00 
3. FM Translators
    a. New or Major Change Construction Permit................   425.00 
    b. License................................................    85.00 
    c. Assignment or Transfer.................................    80.00 
    d. Renewal................................................    35.00 
    e. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
4. TV Translators and LPTV Stations
    a. New or Major Change Construction Permit................   425.00 
    b. License................................................    85.00 
    c. Assignment or Transfer.................................    80.00 
    d. Renewal................................................    35.00 
    e. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
5. Auxiliary Services (Includes Remote Pickup stations, TV 
    Auxiliary Broadcast stations, Aural Broadcast STL and 
    Intercity Relay stations, and Low Power Auxiliary 
    stations)
    a. Major Actions..........................................    85.00 
    b. Renewals...............................................    35.00 
    c. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
6. FM/TV Boosters
    a. New and Major Change Construction Permits..............   425.00 
    b. License................................................    85.00 
    c. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
7. International Broadcast Station
    a. New Construction Permit and Facilities Change CP....... 1,705.00 
    b. License................................................   385.00 
    c. Assignment or Transfer (per station)...................    60.00 
    d. Renewal................................................    95.00 
    e. Frequency Assignment and Coordination (per frequency 
      hour)...................................................    35.00 
    f. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 
8. Cable Television Service
    a. Cable Television Relay Service
        (i) Construction Permit...............................   155.00 
        (ii) Assignment or Transfer...........................   155.00 
        (iii) Renewal.........................................   155.00 
        (iv) Modification.....................................   155.00 
        (v) Special Temporary Authority (other than to remain 
          silent or extend an existing STA to remain silent)..   100.00 
    b. Cable Special Relief Petition..........................   790.00 
    c. 76.12 Registration Statement (per statement)...........    35.00 
    d. Aeronautical Frequency Usage Notifications (per notice)    35.00 
    e. Aeronautical Frequency Usage Waivers (per waiver)......    35.00 
9. Direct Broadcast Satellite
    a. New or Major Change Construction Permit
        (i) Application for Authorization to Construct a 
          Direct Broadcast Satellite.......................... 2,030.00 
        (ii) Issuance of Construction Permit & Launch 
          Authority...........................................19,710.00 
        (iii) License to Operate Satellite....................   565.00 
    b. Hearing (Comparative New, Major/Minor Modifications, or 
      Comparative Renewal).................................... 6,760.00 
    c. Special Temporary Authority (other than to remain 
      silent or extend an existing STA to remain silent)......   100.00 

                          COMMON CARRIER SERVICES

1. All Common Carrier Services
    a. Hearing (Comparative New or Major/Minor Modifications). 6,760.00 
    b. Development Authority (Same application fee as regular 
      authority in service unless otherwise indicated)
    c. Formal Complaints and Pole Attachment Complaints Filing 
      Fee.....................................................   120.00 
    d. Proceeding under section 109(b) of the Communications 
      Assistance for Law Enforcement Act......................    5,000 
2. Domestic Public Land Mobile Stations (includes Base, 
    Dispatch, Control & Repeater Stations)
    a. New or Additional Facility (per transmitter)...........   230.00 
    b. Major Modifications (per transmitter)..................   230.00 
    c. Fill In Transmitters (per transmitter).................   230.00 
    d. Major Amendment to a Pending Application (per 
      transmitter)............................................   230.00 
    e. Assignment or Transfer
        (i) First Call Sign on Application....................   230.00 
        (ii) Each Additional Call Sign........................    35.00 
    f. Partial Assignment (per call sign).....................   230.00 
    g. Renewal (per call sign)................................    35.00 
    h. Minor Modification (per transmitter)...................    35.00 
    i. Special Temporary Authority (per frequency/per 
      location)...............................................   200.00 
    j. Extension of Time to Construct (per application).......    35.00 
    k. Notice of Completion of Construction (per application).    35.00 
    l. Auxiliary Test Station (per transmitter)...............   200.00 
    m. Subsidiary Communications Service (per request)........   100.00 
    n. Reinstatement (per application)........................    35.00 
    o. Combining Call Signs (per call sign)...................   200.00 
    p. Standby Transmitter (per transmitter/per location).....   200.00 
    q. 900 MHz Nationwide Paging
        (i) Renewal
            (1) Network Organizer.............................    35.00 
            (2) Network Operator (per operator/per city)......    35.00 
    r. Air-Ground Individual License (per station)
        (i) Initial License...................................    35.00 
        (ii) Renewal of License...............................    35.00 
        (iii) Modification of License.........................    35.00 
3. Cellular Systems (per system)
    a. New or Additional Facilities...........................   230.00 
    b. Major Modification.....................................   230.00 
    c. Minor Modification.....................................    60.00 
    d. Assignment or Transfer (including partial).............   230.00 
    e. License to Cover Construction
        (i) Initial License for Wireline Carrier..............   595.00 
        (ii) Subsequent License for Wireline Carrier..........    60.00 
        (iii) License for Nonwireline Carrier.................    60.00 
        (iv) Fill In License (all carriers)...................    60.00 
    f. Renewal................................................    35.00 
    g. Extension of Time to Complete Construction.............    35.00 
    h. Special Temporary Authority (per system)...............   200.00 
    i. Combining Cellular Geographic Service Areas (per 
      system).................................................    50.00 
4. Rural Radio (includes Central Office, Interoffice, or Relay 
    Facilities)
    a. New or Additional Facility (per transmitter)...........   105.00 
    b. Major Modification (per transmitter)...................   105.00 
    c. Major Amendment to Pending Application (per 
      transmitter)............................................   105.00 
    d. Minor Modification (per transmitter)...................    35.00 
    e. Assignments or Transfers
        (i) First Call Sign on Application....................   105.00 
        (ii) Each Additional Call Sign........................    35.00 
        (iii) Partial Assignment (per call sign)..............   105.00 
    f. Renewal (per call sign)................................    35.00 
    g. Extension of Time to Complete Construction (per 
      application)............................................    35.00 
    h. Notice of Completion of Construction (per application).    35.00 
    i. Special Temporary Authority (per frequency/per 
      location)...............................................   200.00 
    j. Reinstatement (per application)........................    35.00 
    k. Combining Call Signs (per call sign)...................   200.00 
    l. Auxiliary Test Station (per transmitter)...............   200.00 
    m. Standby Transmitter (per transmitter/per location).....   200.00 
5. Offshore Radio Service (Mobile, Subscriber, and Central 
    Stations; fees would also apply to any expansion of this 
    service into coastal waters other than the Gulf of Mexico)
    a. New or Additional Facility (per transmitter)...........   105.00 
    b. Major Modifications (per transmitter)..................   105.00 
    c. Fill In Transmitters (per transmitter).................   105.00 
    d. Major Amendment to Pending Application (per 
      transmitter)............................................   105.00 
    e. Minor Modification (per transmitter)...................    35.00 
    f. Assignment or Transfer
        (i) Each Additional Call Sign.........................    35.00 
        (ii) Partial Assignment (per call sign)...............   105.00 
    g. Renewal (per call sign)................................    35.00 
    h. Extension of Time to Complete Construction (per 
      application)............................................    35.00 
    i. Reinstatement (per application)........................    35.00 
    j. Notice of Completion of Construction (per application).    35.00 
    k. Special Temporary Authority (per frequency/per 
      location)...............................................   200.00 
    l. Combining Call Signs (per call sign)...................   200.00 
    m. Auxiliary Test Station (per transmitter)...............   200.00 
    n. Standby Transmitter (per transmitter/ per location)....   200.00 
6. Point-to-Point Microwave and Local Television Radio Service
    a. Conditional License (per station)......................   155.00 
    b. Major Modification of Conditional License or License 
      Authorization (per station).............................   155.00 
    c. Certification of Completion of Construction (per 
      station)................................................   155.00 
    d. Renewal (per licensed station).........................   155.00 
    e. Assignment or Transfer
        (i) First Station on Application......................    55.00 
        (ii) Each Additional Station..........................    35.00 
    f. Extension of Construction Authorization (per station)..    55.00 
    g. Special Temporary Authority or Request for Waiver of 
      Prior Construction Authorization (per request)..........    70.00 
7. Multipoint Distribution Service (including multichannel 
    MDS)
    a. Conditional License (per station)......................   155.00 
    b. Major Modification of Conditional License or License 
      Authorization (per station).............................   155.00 
    c. Certification of Completion of Construction (per 
      channel)................................................   455.00 
    d. Renewal (per licensed station).........................   155.00 
    e. Assignment or Transfer
        (i) First Station on Application......................    55.00 
        (ii) Each Additional Station..........................    35.00 
    f. Extension of Construction Authorization (per station)..   110.00 
    g. Special Temporary Authority or Request for Waiver of 
      Prior Construction Authorization (per request)..........    70.00 
8. Digital Electronic Message Service
    a. Conditional License (per nodal station)................   155.00 
    b. Modification of Conditional License or License 
      Authorization (per nodal station).......................   155.00 
    c. Certification of Completion of Construction (per nodal 
      station)................................................   155.00 
    d. Renewal (per licensed nodal station)...................   155.00 
    e. Assignment or Transfer
        (i) First Station on Application......................    55.00 
        (ii) Each Additional Station..........................    35.00 
    f. Extension of Construction Authorization (per station)..    55.00 
    g. Special Temporary Authority or Request for Waiver of 
      Prior Construction Authorization (per request)..........    70.00 
9. International Fixed Public Radio (Public and Control 
    Stations)
    a. Initial Construction Permit (per station)..............   510.00 
    b. Assignment or Transfer (per application)...............   510.00 
    c. Renewal (per license)..................................   370.00 
    d. Modification (per station).............................   370.00 
    e. Extension of Construction Authorization (per station)..   185.00 
    f. Special Temporary Authority or Request for Waiver (per 
      request)................................................   185.00 
10. Fixed Satellite Transmit/Receive Earth Stations
    a. Initial Application (per station)...................... 1,525.00 
    b. Modification of License (per station)..................   105.00 
    c. Assignment or Transfer
        (i) First Station on Application......................   300.00 
        (ii) Each Additional Station..........................   100.00 
    d. Developmental Station (per station).................... 1,000.00 
    e. Renewal of License (per station).......................   105.00 
    f. Special Temporary Authority or Waivers of Prior 
      Construction Authorization (per request)................   105.00 
    g. Amendment of Application (per station).................   105.00 
    h. Extension of Construction Permit (per station).........   105.00 
11. Small Transmit/Receive Earth Stations (2 meters or less 
    and operating in the 4/6 GHz frequency band)
    a. Lead Application....................................... 3,380.00 
    b. Routine Application (per station)......................    35.00 
    c. Modification of License (per station)..................   105.00 
    d. Assignment or Transfer
        (i) First Station on Application......................   300.00 
        (ii) Each Additional Station..........................    35.00 
    e. Developmental Station (per station).................... 1,000.00 
    f. Renewal of License (per station).......................   105.00 
    g. Special Temporary Authority or Waivers of Prior 
      Construction Authorization (per request)................   105.00 
    h. Amendment of Application (per station).................   105.00 
    i. Extension of Construction Permit (per station).........   105.00 
12. Receive Only Earth Stations
    a. Initial Application for Registration...................   230.00 
    b. Modification of License or Registration (per station)..   105.00 
    c. Assignment or Transfer
        (i) First Station on Application......................   300.00 
        (ii) Each Additional Station..........................   100.00 
    d. Renewal of License (per station).......................   105.00 
    e. Amendment of Application (per station).................   105.00 
    f. Extension of Construction Permit (per station).........   105.00 
    g. Waivers (per request)..................................   105.00 
13. Very Small Aperture Terminal (VSAT) Systems
    a. Initial Application (per system)....................... 5,630.00 
    b. Modification of License (per system)...................   105.00 
    c. Assignment or Transfer of System....................... 1,505.00 
    d. Developmental Station.................................. 1,000.00 
    e. Renewal of License (per system)........................   105.00 
    f. Special Temporary Authority or Waivers of Prior 
      Construction Authorization (per request)................   105.00 
    g. Amendment of Application (per system)..................   105.00 
    h. Extension of Construction Permit (per system)..........   105.00 
14. Mobile Satellite Earth Stations
    a. Initial Application of Blanket Authorization........... 5,630.00 
    b. Initial Application for Individual Earth Station....... 1,350.00 
    c. Modification of License (per system)...................   105.00 
    d. Assignment or Transfer (per system).................... 1,505.00 
    e. Developmental Station.................................. 1,000.00 
    f. Renewal of License (per system)........................   105.00 
    g. Special Temporary Authority or Waivers of Prior 
      Construction Authorization (per request)................   105.00 
    h. Amendment of Application (per system)..................   105.00 
    i. Extension of Construction Permit (per system)..........   105.00 
15. Radio determination Satellite Earth Stations
    a. Initial Application of Blanket Authorization........... 5,630.00 
    b. Initial Application for Individual Earth Station....... 1,350.00 
    c. Modification of License (per system)...................   105.00 
    d. Assignment or Transfer (per system).................... 1,505.00 
    e. Developmental Station.................................. 1,000.00 
    f. Renewal of License (per system)........................   105.00 
    g. Special Temporary Authority or Waivers of Prior 
      Construction Authorization (per request)................   105.00 
    h. Amendment of Application (per system)..................   105.00 
    i. Extension of Construction Permit (per system)..........   105.00 
16. Space Stations
    a. Application for Authority to Construct................. 2,030.00 
    b. Application for Authority to Launch & Operate
        (i) Initial Application...............................70,000.00 
        (ii) Replacement Satellite............................70,000.00 
    c. Assignment or Transfer (per satellite)................. 5,000.00 
    d. Modification........................................... 5,000.00 
    e. Special Temporary Authority or Waiver of Prior 
      Construction Authorization (per request)................   500.00 
    f. Amendment of Application............................... 1,000.00 
    g. Extension of Construction Permit/Launch Authorization 
      (per request)...........................................   500.00 
17. Section 214 Applications
    a. Overseas Cable Construction............................ 9,125.00 
    b. Cable Landing License
        (i) Common Carrier.................................... 1,025.00 
        (ii) Non-Common Carrier...............................10,150.00 
    c. Domestic Cable Construction............................   610.00 
    d. All Other 214 Applications.............................   610.00 
    e. Special Temporary Authority (all services).............   610.00 
    f. Assignments or Transfers (all services)................   610.00 
18. Recognized Private Operating Status (per application).....   610.00 
19. Telephone Equipment Registration..........................   155.00 
20. Tariff Filings
    a. Filing Fee.............................................   490.00 
    b. Special Permission Filing (per filing).................   490.00 
21. Accounting and Audits
    a. Field Audit............................................62,290.00 
    b. Review of Attest Audit.................................34,000.00 
    c. Review of Depreciation Update Study (Single State).....20,685.00 
        (i) Each Additional State.............................   680.00 
    d. Interpretation of Accounting Rules (per request)....... 2,885.00 
    e. Petition for Waiver (per petition)..................... 4,660.00 
22. Low-Earth Orbit Satellite Systems
    a. Application for Authority to Construct (per system of 
      technology identical satellites)........................ 6,000.00 
    b. Application for Authority to Launch and Operate (per 
      system of technologically identical satellites)........210,000.00 
    c. Assignment or Transfer (per request)................... 6,000.00 
    d. Modification (per request).............................15,000.00 
    e. Special Temporary Authority or Waiver of Prior 
      Construction Authorization (per request)................ 1,500.00 
    f. Amendment of Application (per request)................. 3,000.00 
    g. Extension of Construction Permit/Launch Authorization 
      (per request)........................................... 1,500.00 

                      MISCELLANEOUS APPLICATION FEES

1. International Telecommunications Settlements Administrative 
    Fee for Collections (per line item).......................     2.00 
2. Radio Operator Examinations................................
    a. Commercial Radio Operator Examination..................    35.00 
    b. Renewal of Commercial Radio Operator License, Permit, 
      or Certificate..........................................    35.00 
    c. Duplicate or Replacement Commercial Radio Operator 
      License, Permit, or Certificate.........................    35.00 
3. Ship Inspections...........................................
    a. Inspection of Oceangoing Vessels Under Title III, Part 
      II of the Communications Act (per inspection)...........   620.00 
    b. Inspection of Passenger Vessels Under Title III, Part 
      III of the Communications Act (per inspection)..........   320.00 
    c. Inspection of Vessels Under the Great Lakes Agreement 
      (per inspection)........................................    75.00 
    d. Inspection of Foreign Vessels Under the Safety of Life 
      at Sea (SOLAS) Convention (per inspection)..............   540.00 
    e. Temporary Waiver for Compulsorily Equipped Vessel......    60.00 

                             * * * * * * *

SEC. 11. [47 U.S.C. 161] REGULATORY REFORM.

  (a) Biennial Review of Regulations.--In every even-numbered 
year (beginning with 1998), the Commission--
          (1) shall review all regulations issued under this 
        Act in effect at the time of the review that apply to 
        the operations or activities of any provider of 
        telecommunications service; and
          (2) shall determine whether any such regulation is no 
        longer necessary in the public interest as the result 
        of meaningful economic competition between providers of 
        such service.
  (b) Effect of Determination.--The Commission shall repeal or 
modify any regulation it determines to be no longer necessary 
in the public interest.
  (c) Ownership Rules.--Subsections (a) and (b) do not apply to 
ownership rules reviewable under section 202(h) of the 
Telecommunications Act of 1996.

                             * * * * * * *

SEC. 336. [47 U.S.C. 336] BROADCAST SPECTRUM FLEXIBILITY.

  (a) Commission Action.--If the Commission determines to issue 
additional licenses for advanced television services, the 
Commission--
          (1) should limit the initial eligibility for such 
        licenses to persons that, as of the date of such 
        issuance, are licensed to operate a television 
        broadcast station or hold a permit to construct such a 
        station (or both); and
          (2) shall adopt regulations that allow the holders of 
        such licenses to offer such ancillary or supplementary 
        services on designated frequencies as may be consistent 
        with the public interest, convenience, and necessity.
  (b) Contents of Regulations.--In prescribing the regulations 
required by subsection (a), the Commission shall--
          (1) only permit such licensee or permittee to offer 
        ancillary or supplementary services if the use of a 
        designated frequency for such services is consistent 
        with the technology or method designated by the 
        Commission for the provision of advanced television 
        services;
          (2) limit the broadcasting of ancillary or 
        supplementary services on designated frequencies so as 
        to avoid derogation of any advanced television 
        services, including high definition television 
        broadcasts, that the Commission may require using such 
        frequencies;
          (3) apply to any other ancillary or supplementary 
        service such of the Commission's regulations as are 
        applicable to the offering of analogous services by any 
        other person, except that no ancillary or supplementary 
        service shall have any rights to carriage under section 
        614 or 615 or be deemed a multichannel video 
        programming distributor for purposes of section 628;
          (4) adopt such technical and other requirements as 
        may be necessary or appropriate to assure the quality 
        of the signal used to provide advanced television 
        services, and may adopt regulations that stipulate the 
        minimum number of hours per day that such signal must 
        be transmitted; and
          (5) prescribe such other regulations as may be 
        necessary for the protection of the public interest, 
        convenience, and necessity.
  (c) Recovery of License.--If the Commission grants a license 
for advanced television services to a person that, as of the 
date of such issuance, is licensed to operate a television 
broadcast station or holds a permit to construct such a station 
(or both), the Commission shall, as a condition of such 
license, require that either the additional license or the 
original license held by the licensee be surrendered to the 
Commission for reallocation or reassignment (or both) pursuant 
to Commission regulation.
  (d) Public Interest Requirement.--Nothing in this section 
shall be construed as relieving a television broadcasting 
station from its obligation to serve the public interest, 
convenience, and necessity. In the Commission's review of any 
application for renewal of a broadcast license for a television 
station that provides ancillary or supplementary services, the 
television licensee shall establish that all of its program 
services on the existing or advanced television spectrum are in 
the public interest. Any violation of the Commission rules 
applicable to ancillary or supplementary services shall reflect 
upon the licensee's qualifications for renewal of its license.
  (e) Fees.--
          (1) Services to which fees apply.--If the regulations 
        prescribed pursuant to subsection (a) permit a licensee 
        to offer ancillary or supplementary services on a 
        designated frequency--
                  (A) for which the payment of a subscription 
                fee is required in order to receive such 
                services, or
                  (B) for which the licensee directly or 
                indirectly receives compensation from a third 
                party in return for transmitting material 
                furnished by such third party (other than 
                commercial advertisements used to support 
                broadcasting for which a subscription fee is 
                not required),
        the Commission shall establish a program to assess and 
        collect from the licensee for such designated frequency 
        an annual fee or other schedule or method of payment 
        that promotes the objectives described in subparagraphs 
        (A) and (B) of paragraph (2).
          (2) Collection of fees.--The program required by 
        paragraph (1) shall--
                  (A) be designed (i) to recover for the public 
                a portion of the value of the public spectrum 
                resource made available for such commercial 
                use, and (ii) to avoid unjust enrichment 
                through the method employed to permit such uses 
                of that resource;
                  (B) recover for the public an amount that, to 
                the extent feasible, equals but does not exceed 
                (over the term of the license) the amount that 
                would have been recovered had such services 
                been licensed pursuant to the provisions of 
                section 309(j) of this Act and the Commission's 
                regulations thereunder; and
                  (C) be adjusted by the Commission from time 
                to time in order to continue to comply with the 
                requirements of this paragraph.
          (3) Treatment of revenues.--
                  (A) General rule.--Except as provided in 
                subparagraph (B), all proceeds obtained 
                pursuant to the regulations required by this 
                subsection shall be deposited in the Treasury 
                in accordance with chapter 33 of title 31, 
                United States Code.
                  (B) Retention of revenues.--Notwithstanding 
                subparagraph (A), the salaries and expenses 
                account of the Commission shall retain as an 
                offsetting collection such sums as may be 
                necessary from such proceeds for the costs of 
                developing and implementing the program 
                required by this section and regulating and 
                supervising advanced television services. Such 
                offsetting collections shall be available for 
                obligation subject to the terms and conditions 
                of the receiving appropriations account, and 
                shall be deposited in such accounts on a 
                quarterly basis.
          (4) Report.--Within 5 years after the date of 
        enactment of the Telecommunications Act of 1996, the 
        Commission shall report to the Congress on the 
        implementation of the program required by this 
        subsection, and shall annually thereafter advise the 
        Congress on the amounts collected pursuant to such 
        program.
  (f) Preservation of Low-Power Community Television 
Broadcasting.--
          (1) Creation of class a licenses.--
                  (A) Rulemaking Required.--Within 120 days 
                after the date of the enactment of the 
                Community Broadcasters Protection Act of 1999, 
                the Commission shall prescribe regulations to 
                establish a class A television license to be 
                available to licensees of qualifying low-power 
                television stations. Such regulations shall 
                provide that--
                          (i) the license shall be subject to 
                        the same license terms and renewal 
                        standards as the licenses for full-
                        power television stations except as 
                        provided in this subsection; and
                          (ii) each such class A licensee shall 
                        be accorded primary status as a 
                        television broadcaster as long as the 
                        station continues to meet the 
                        requirements for a qualifying low-power 
                        station in paragraph (2).
                  (B) Notice to and certification by 
                licensees.--Within 30 days after the date of 
                the enactment of the Community Broadcasters 
                Protection Act of 1999, the Commission shall 
                send a notice to the licensees of all low-power 
                televisions licenses that describes the 
                requirements for class A designation. Within 60 
                days after such date of enactment, licensees 
                intending to seek class A designation shall 
                submit to the Commission a certification of 
                eligibility based on the qualification 
                requirements of this subsection. Absent a 
                material deficiency, the Commission shall grant 
                certification of eligibility to apply for class 
                A status.
                  (C) Application for and award of licenses.--
                Consistent with the requirements set forth in 
                paragraph (2)(A) of this subsection, a licensee 
                may submit an application for class A 
                designation under this paragraph within 30 days 
                after final regulations are adopted under 
                subparagraph (A) of this paragraph. Except as 
                provided in paragraphs (6) and (7), the 
                Commission shall, within 30 days after receipt 
                of an application of a licensee of a qualifying 
                low-power television station that is acceptable 
                for filing, award such a class A television 
                station license to such licensee.
                  (D) Resolution of technical problems.--The 
                Commission shall act to preserve the service 
                areas of low-power television licensees pending 
                the final resolution of a class A application. 
                If, after granting certification of eligibility 
                for a class A license, technical problems arise 
                requiring an engineering solution to a full-
                power station's allotted parameters or channel 
                assignment in the digital television Table of 
                Allotments, the Commission shall make such 
                modifications as necessary--
                          (i) to ensure replication of the 
                        full-power digital television 
                        applicant's service area, as provided 
                        for in sections 73.622 and 73.623 of 
                        the Commission's regulations (47 CFR 
                        73.622, 73.623); and
                          (ii) to permit maximization of a 
                        full-power digital television 
                        applicant's service area consistent 
                        with such sections 73.622 and 73.623,
                if such applicant has filed an application for 
                maximization or a notice of its intent to seek 
                such maximization by December 31, 1999, and 
                filed a bona fide application for maximization 
                by May 1, 2000. Any such applicant shall comply 
                with all applicable Commission rules regarding 
                the construction of digital television 
                facilities.
                  (E) Change applications.--If a station that 
                is awarded a construction permit to maximize or 
                significantly enhance its digital television 
                service area, later files a change application 
                to reduce its digital television service area, 
                the protected contour of that station shall be 
                reduced in accordance with such change 
                modification.
          (2) Qualifying low-power television stations.--For 
        purposes of this subsection, a station is a qualifying 
        low-power television station if--
                  (A)(i) during the 90 days preceding the date 
                of the enactment of the Community Broadcasters 
                Protection Act of 1999--
                          (I) such station broadcast a minimum 
                        of 18 hours per day;
                          (II) such station broadcast an 
                        average of at least 3 hours per week of 
                        programming that was produced within 
                        the market area served by such station, 
                        or the market area served by a group of 
                        commonly controlled low-power stations 
                        that carry common local programming 
                        produced within the market area served 
                        by such group; and
                          (III) such station was in compliance 
                        with the Commission's requirements 
                        applicable to low-power television 
                        stations; and
                  (ii) from and after the date of its 
                application for a class A license, the station 
                is in compliance with the Commission's 
                operating rules for full-power television 
                stations; or
                  (B) the Commission determines that the public 
                interest, convenience, and necessity would be 
                served by treating the station as a qualifying 
                low-power television station for purposes of 
                this section, or for other reasons determined 
                by the Commission.
          (3) Common ownership.--No low-power television 
        station authorized as of the date of the enactment of 
        the Community Broadcasters Protection Act of 1999 shall 
        be disqualified for a class A license based on common 
        ownership with any other medium of mass communication.
          (4) Issuance of licenses for advanced television 
        services to television translator stations and 
        qualifying low-power television stations.--The 
        Commission is not required to issue any additional 
        license for advanced television services to the 
        licensee of a class A television station under this 
        subsection, or to any licensee of any television 
        translator station, but shall accept a license 
        application for such services proposing facilities that 
        will not cause interference to the service area of any 
        other broadcast facility applied for, protected, 
        permitted, or authorized on the date of filing of the 
        advanced television application. Such new license or 
        the original license of the applicant shall be 
        forfeited after the end of the digital television 
        service transition period, as determined by the 
        Commission. A licensee of a low-power television 
        station or television translator station may, at the 
        option of licensee, elect to convert to the provision 
        of advanced television services on its analog channel, 
        but shall not be required to convert to digital 
        operation until the end of such transition period. 
        Within 60 days after the date of enactment of the FCC 
        Reauthorization Act of 2003, the Commission shall 
        initiate a rulemaking implementing this section to 
        authorize the operation of digital television 
        translators and digital on-channel repeaters.
          (5) No preemption of section 337.--Nothing in this 
        subsection preempts or otherwise affects section 337 of 
        this Act.
          (6) Interim qualification.--
                  (A) Stations operating within certain 
                bandwidth.--The Commission may not grant a 
                class A license to a low-power television 
                station for operation between 698 and 806 
                megahertz, but the Commission shall provide to 
                low-power television stations assigned to and 
                temporarily operating in that bandwidth the 
                opportunity to meet the qualification 
                requirements for a class A license. If such a 
                qualified applicant for a class A license is 
                assigned a channel within the core spectrum (as 
                such term is defined in MM Docket No. 87-286, 
                February 17, 1998), the Commission shall issue 
                a class A license simultaneously with the 
                assignment of such channel.
                  (B) Certain channels off-limits.--The 
                Commission may not grant under this subsection 
                a class A license to a low-power television 
                station operating on a channel within the core 
                spectrum that includes any of the 175 
                additional channels referenced in paragraph 45 
                of its February 23, 1998, Memorandum Opinion 
                and Order on Reconsideration of the Sixth 
                Report and Order (MM Docket No. 87-268). Within 
                18 months after the date of the enactment of 
                the Community Broadcasters Protection Act of 
                1999, the Commission shall identify by channel, 
                location, and applicable technical parameters 
                those 175 channels.
          (7) No interference requirement.--The Commission may 
        not grant a class A license, nor approve a modification 
        of a class A license, unless the applicant or licensee 
        shows that the class A station for which the license or 
        modification is sought will not cause--
                  (A) interference within--
                          (i) the predicted Grade B contour (as 
                        of the date of the enactment of the 
                        Community Broadcasters Protection Act 
                        of 1999, or November 1, 1999, whichever 
                        is later, or as proposed in a change 
                        application filed on or before such 
                        date) of any television station 
                        transmitting in analog format; or
                          (ii)(I) the digital television 
                        service areas provided in the DTV Table 
                        of Allotments; (II) the areas protected 
                        in the Commission's digital television 
                        regulations (47 CFR 73.622(e) and (f 
                        )); (III) the digital television 
                        service areas of stations subsequently 
                        granted by the Commission prior to the 
                        filing of a class A application; and 
                        (IV) stations seeking to maximize power 
                        under the Commission's rules, if such 
                        station has complied with the 
                        notification requirements in paragraph 
                        (1)(D);
                  (B) interference within the protected contour 
                of any low-power television station or low-
                power television translator station that--
                          (i) was licensed prior to the date on 
                        which the application for a class A 
                        license, or for the modification of 
                        such a license, was filed;
                          (ii) was authorized by construction 
                        permit prior to such date; or
                          (iii) had a pending application that 
                        was submitted prior to such date; or
                  (C) interference within the protected contour 
                of 80 miles from the geographic center of the 
                areas listed in section 22.625(b)(1) or 90.303 
                of the Commission's regulations (47 CFR 
                22.625(b)(1) and 90.303) for frequencies in--
                          (i) the 470-512 megahertz band 
                        identified in 
                        section 22.621 or 90.303 of such 
                        regulations; or
                          (ii) the 482-488 megahertz band in 
                        New York.
          (8) Priority for displaced low-power stations.--Low-
        power stations that are displaced by an application 
        filed under this section shall have priority over other 
        low-power stations in the assignment of available 
        channels.
  (g) Evaluation.--Within 10 years after the date the 
Commission first issues additional licenses for advanced 
television services, the Commission shall conduct an evaluation 
of the advanced television services program. Such evaluation 
shall include--
          (1) an assessment of the willingness of consumers to 
        purchase the television receivers necessary to receive 
        broadcasts of advanced television services;
          (2) an assessment of alternative uses, including 
        public safety use, of the frequencies used for such 
        broadcasts; and
          (3) the extent to which the Commission has been or 
        will be able to reduce the amount of spectrum assigned 
        to licensees.
  (h)(1) Within 60 days after receiving a request (made in such 
form and manner and containing such information as the 
Commission may require) under this subsection from a low-power 
television station to which this subsection applies, the 
Commission shall authorize the licensee or permittee of that 
station to provide digital data service subject to the 
requirements of this subsection as a pilot project to 
demonstrate the feasibility of using low-power television 
stations to provide high-speed wireless digital data service, 
including Internet access to unserved areas.
          (2) The low-power television stations to which this 
        subsection applies are as follows:
                  (A) KHLM-LP, Houston, Texas.
                  (B) WTAM-LP, Tampa, Florida.
                  (C) WWRJ-LP, Jacksonville, Florida.
                  (D) WVBG-LP, Albany, New York.
                  (E) KHHI-LP, Honolulu, Hawaii.
                  (F) KPHE-LP (K19DD), Phoenix, Arizona.
                  (G) K34FI, Bozeman, Montana.
                  (H) K65GZ, Bozeman, Montana.
                  (I) WXOB-LP, Richmond, Virginia.
                  (J) WIIW-LP, Nashville, Tennessee.
                  (K) A station and repeaters to be determined 
                by the Federal Communications Commission for 
                the sole purpose of providing service to 
                communities in the Kenai Peninsula Borough and 
                Matanuska Susitna Borough.
                  (L) WSPY-LP, Plano, Illinois.
                  (M) W24AJ, Aurora, Illinois.
          (3) Notwithstanding any requirement of section 553 of 
        title 5, United States Code, the Commission shall 
        promulgate regulations establishing the procedures, 
        consistent with the requirements of paragraphs (4) and 
        (5), governing the pilot projects for the provision of 
        digital data services by certain low power television 
        licensees within 120 days after the date of enactment 
        of LPTV Digital Data Services Act. The regulations 
        shall set forth--
                  (A) requirements as to the form, manner, and 
                information required for submitting requests to 
                the Commission to provide digital data service 
                as a pilot project;
                  (B) procedures for testing interference to 
                digital television receivers caused by any 
                pilot project station or remote transmitter;
                  (C) procedures for terminating any pilot 
                project station or remote transmitter or both 
                that causes interference to any analog or 
                digital full-power television stations, class A 
                television station, television translators or 
                any other users of the core television band;
                  (D) specifications for reports to be filed 
                quarterly by each low power television licensee 
                participating in a pilot project;
                  (E) procedures by which a low power 
                television licensee participating in a pilot 
                project shall notify television broadcast 
                stations in the same market upon commencement 
                of digital data services and for ongoing 
                coordination with local broadcasters during the 
                test period; and
                  (F) procedures for the receipt and review of 
                interference complaints on an expedited basis 
                consistent with paragraph (5)(D).
          (4) A low-power television station to which this 
        subsection applies may not provide digital data service 
        unless--
                  (A) the provision of that service, including 
                any remote return-path transmission in the case 
                of 2-way digital data service, does not cause 
                any interference in violation of the 
                Commission's existing rules, regarding 
                interference caused by low power television 
                stations to full-service analog or digital 
                television stations, class A television 
                stations, or television translator stations; 
                and
                  (B) the station complies with the 
                Commission's regulations governing safety, 
                environmental, and sound engineering practices, 
                and any other Commission regulation under 
                paragraph (3) governing pilot program 
                operations.
          (5)(A) The Commission may limit the provision of 
        digital data service by a low-power television station 
        to which this subsection applies if the Commission 
        finds that--
                  (i) the provision of 2-way digital data 
                service by that station causes any interference 
                that cannot otherwise be remedied; or
                  (ii) the provision of 1-way digital data 
                service by that station causes any 
                interference.
          (B) The Commission shall grant any such station, upon 
        application (made in such form and manner and 
        containing such information as the Commission may 
        require) by the licensee or permittee of that station, 
        authority to move the station to another location, to 
        modify its facilities to operate on a different 
        channel, or to use booster or auxiliary transmitting 
        locations, if the grant of authority will not cause 
        interference to the allowable or protected service 
        areas of full service digital television stations, 
        National Television Standards Committee assignments, or 
        television translator stations, and provided, however, 
        no such authority shall be granted unless it is 
        consistent with existing Commission regulations 
        relating to the movement, modification, and use of non-
        class A low power television transmission facilities in 
        order--
                  (i) to operate within television channels 2 
                through 51, inclusive; or
                  (ii) to demonstrate the utility of low-power 
                television stations to provide high-speed 2-way 
                wireless digital data service.
          (C) The Commission shall require quarterly reports 
        from each station authorized to provide digital data 
        services under this subsection that include--
                  (i) information on the station's experience 
                with interference complaints and the resolution 
                thereof;
                  (ii) information on the station's market 
                success in providing digital data service; and
                  (iii) such other information as the 
                Commission may require in order to administer 
                this subsection.
          (D) The Commission shall resolve any complaints of 
        interference with television reception caused by any 
        station providing digital data service authorized under 
        this subsection within 60 days after the complaint is 
        received by the Commission.
          (6) The Commission shall assess and collect from any 
        low-power television station authorized to provide 
        digital data service under this subsection an annual 
        fee or other schedule or method of payment comparable 
        to any fee imposed under the authority of this Act on 
        providers of similar services. Amounts received by the 
        Commission under this paragraph may be retained by the 
        Commission as an offsetting collection to the extent 
        necessary to cover the costs of developing and 
        implementing the pilot program authorized by this 
        subsection, and regulating and supervising the 
        provision of digital data service by low-power 
        television stations under this subsection. Amounts 
        received by the Commission under this paragraph in 
        excess of any amount retained under the preceding 
        sentence shall be deposited in the Treasury in 
        accordance with chapter 33 of title 31, United States 
        Code.
          (7) In this subsection, the term ``digital data 
        service'' includes--
                  (A) digitally-based interactive broadcast 
                service; and
                  (B) wireless Internet access, without regard 
                to--
                          (i) whether such access is--
                                  (I) provided on a one-way or 
                                a two-way basis;
                                  (II) portable or fixed; or
                                  (III) connected to the 
                                Internet via a band allocated 
                                to Interactive Video and Data 
                                Service; and
                          (ii) the technology employed in 
                        delivering such service, including the 
                        delivery of such service via multiple 
                        transmitters at multiple locations.
          (8) Nothing in this subsection limits the authority 
        of the Commission under any other provision of law.
  (i) Definitions.--As used in this section:
          (1) Advanced television services.--The term 
        ``advanced television services'' means television 
        services provided using digital or other advanced 
        technology as further defined in the opinion, report, 
        and order of the Commission entitled ``Advanced 
        Television Systems and Their Impact Upon the Existing 
        Television Broadcast Service'', MM Docket 87-268, 
        adopted September 17, 1992, and successor proceedings.
          (2) Designated frequencies.--The term ``designated 
        frequency'' means each of the frequencies designated by 
        the Commission for licenses for advanced television 
        services.
          (3) High definition television.--The term ``high 
        definition television'' refers to systems that offer 
        approximately twice the vertical and horizontal 
        resolution of receivers generally available on the date 
        of enactment of the Telecommunications Act of 1996, as 
        further defined in the proceedings described in 
        paragraph (1) of this subsection.

                             * * * * * * *

SEC. 503. [47 U.S.C. 503] FORFEITURES IN CASES OF REBATES AND OFFSETS.

  (a) Any person who shall deliver messages for interstate or 
foreign transmission to any carrier, or for whom as sender or 
receiver, any such carrier shall transmit any interstate or 
foreign wire or radio communication, who shall knowingly by 
employee, agent, officer, or otherwise, directly or indirectly, 
by or through any means or device whatsoever, receive or accept 
from such common carrier any sum of money or any other valuable 
consideration as a rebate or offset against the regular charges 
for transmission of such messages as fixed by the schedules of 
charges provided for in this Act, shall in addition to any 
other penalty provided by this Act forfeit to the United States 
a sum of money three times the amount of money so received or 
accepted and three times the value of any other consideration 
so received or accepted, to be ascertained by the trial court; 
and in the trial of said action all such rebates or other 
considerations so received or accepted for a period of six 
years prior to the commencement of the action, may be included 
therein, and the amount recovered shall be three times the 
total amount of money, or three times the total value of such 
consideration, so received or accepted, or both, as the case 
may be.
  (b)(1) Any person who is determined by the Commission, in 
accordance with paragraph (3) or (4) of this subsection, to 
have--
          (A) willfully or repeatedly failed to comply 
        substantially with the terms and conditions of any 
        license, permit, certificate, or other instrument or 
        authorization issued by the Commission;
          (B) willfully or repeatedly failed to comply with any 
        of the provisions of this Act or of any rule, 
        regulation, or order issued by the Commission under 
        this Act or under any treaty, convention, or other 
        agreement to which the United States is a party and 
        which is binding upon the United States;
          (C) violated any provision of section 317(c) or 
        508(a) of this Act; or
          (D) violated any provision of section 1304, 1343, or 
        1464 of title 18, United States Code;
shall be liable to the United States for a forfeiture penalty. 
A forfeiture penalty under this subsection shall be in addition 
to any other penalty provided for by this Act; except that this 
subsection shall not apply to any conduct which is subject to 
forfeiture under title II, part II or III of title III, or 
section 506 of this Act.
  (2)(A) If the violator is (i) a broadcast station licensee or 
permittee, (ii) a cable television [operator, or] operator or 
any other multichannel video distributor, or (iii) an applicant 
for any broadcast or cable television operator license, permit, 
certificate, or other instrument or authorization issued by the 
Commission, the amount of any forfeiture penalty determined 
under this section shall not exceed [$25,000] $250,000 for each 
violation or each day of a continuing violation, except that 
the amount assessed for any continuing violation shall not 
exceed a total of [$250,000] $2,500,000 for any single act or 
failure to act described in paragraph (1) of this subsection.
  (B) If the violator is a common carrier subject to the 
provisions of this Act or an applicant for any common carrier 
license, permit, certificate, or other instrument of 
authorization issued by the Commission, the amount of any 
forfeiture penalty determined under this subsection shall not 
exceed [$100,000] $1,000,000 for each violation or each day of 
a continuing violation, except that the amount assessed for any 
continuing violation shall not exceed a total of [$1,000,000] 
$10,000,000 for any single act or failure to act described in 
paragraph (1) of this subsection.
  (C) In any case not covered in subparagraph (A) or (B), the 
amount of any forfeiture penalty determined under this 
subsection shall not exceed [$10,000] $100,000 for each 
violation or each day of a continuing violation, except that 
the amount assessed for any continuing violation shall not 
exceed a total of [$75,000] $750,000 for any single act or 
failure to act described in paragraph (1) of this subsection.
  (D) The amount of such forfeiture penalty shall be assessed 
by the Commission, or its designee, by written notice. In 
determining the amount of such a forfeiture penalty, the 
Commission or its designee shall take into account the nature, 
circumstances, extent, and gravity of the violation and, with 
respect to the violator, the degree of culpability, any history 
of prior offenses, ability to pay, and such other matters as 
justice may require.
  (3)(A) At the discretion of the Commission, a forfeiture 
penalty may be determined against a person under this 
subsection after notice and an opportunity for a hearing before 
the Commission or an administrative law judge thereof in 
accordance with section 554 of title 5, United States Code. Any 
person against whom a forfeiture penalty is determined under 
this paragraph may obtain review thereof pursuant to section 
402(a).
  (B) If any person fails to pay an assessment of a forfeiture 
penalty determined under subparagraph (A) of this paragraph, 
after it has become a final and unappealable order or after the 
appropriate court has entered final judgment in favor of the 
Commission, the Commission shall refer the matter to the 
Attorney General of the United States, who shall recover the 
amount assessed in any appropriate district court of the United 
States. In such action, the validity and appropriateness of the 
final order imposing the forfeiture penalty shall not be 
subject to review.
  (4) Except as provided in paragraph (3) of this subsection, 
no forfeiture penalty shall be imposed under this subsection 
against any person unless and until--
          (A) the Commission issues a notice of apparent 
        liability, in writing, with respect to such person;
          (B) such notice has been received by such person, or 
        until the Commission has sent such notice to the last 
        known address of such person, by registered or 
        certified mail; and
          (C) such person is granted an opportunity to show, in 
        writing, within such reasonable period of time as the 
        Commission prescribes by rule or regulation, why no 
        such forfeiture penalty should be imposed.
Such a notice shall (i) identify each specific provision, term, 
and condition of any Act, rule, regulation, order, treaty, 
convention, or other agreement, license, permit, certificate, 
instrument, or authorization which such person apparently 
violated or with which such person apparently failed to comply; 
(ii) set forth the nature of the act or omission charged 
against such person and the facts upon which such charge is 
based; and (iii) state the date on which such conduct occurred. 
Any forfeiture penalty determined under this paragraph shall be 
recoverable pursuant to section 504(a) of this Act.
  (5) No forfeiture liability shall be determined under this 
subsection against any person, if such person does not hold a 
license, permit, certificate, or other authorization issued by 
the Commission, and if such person is not an applicant for a 
license, permit, certificate, or other authorization issued by 
the Commission, unless, prior to the notice required by 
paragraph (3) of this subsection or the notice of apparent 
liability required by paragraph (4) of this subsection, such 
person (A) is sent a citation of the violation charged; (B) is 
given a reasonable opportunity for a personal interview with an 
official of the Commission, at the field office of the 
Commission which is nearest to such person's place of 
residence; and (C) subsequently engages in conduct of the type 
described in such citation. The provisions of this paragraph 
shall not apply, however, if the person involved is engaging in 
activities for which a license, permit, certificate, or other 
authorization is required, or is a cable television system 
operator, if the person involved is transmitting on frequencies 
assigned for use in a service in which individual station 
operation is authorized by rule pursuant to section 307(e), or 
in the case of violations of section 303(q), if the person 
involved is a nonlicensee tower owner who has previously 
received notice of the obligations imposed by section 303(q) 
from the Commission or the permittee or licensee who uses that 
tower. Whenever the requirements of this paragraph are 
satisfied with respect to a paricular person, such person shall 
not be entitled to receive any additional citation of the 
violation charged, with respect to any conduct of the type 
described in the citation sent under this paragraph.
  (6) No forfeiture penalty shall be determined or imposed 
against any person under this subsection if--
          (A) such person holds a broadcast station license 
        issued under title III of this Act and if the violation 
        charged occurred--
                  (i) more than [1 year] 2 years prior to the 
                date of issuance of the required notice or 
                notice of apparent liability; or
                  (ii) prior to the date of commencement of the 
                current term of such license,
        whichever is earlier; or
          (B) such person does not hold a broadcast station 
        license issued under title III of this Act and if the 
        violation charged occurred more than [1 year] 2 years 
        prior to the date of issuance of the required notice or 
        notice of apparent liability.
For purposes of this paragraph, ``date of commencement of the 
current term of such license'' means the date of commencement 
of the last term of license for which the licensee has been 
granted a license by the Commission. A separate license term 
shall not be deemed to have commenced as a result of continuing 
a license in effect under section 307(c) pending decision on an 
application for renewal of the license.
  (c) Special Rules for Broadcasting Obscene or Indecent 
Matter.--
          (1) Multiple violations.--If the violation of section 
        1464 of title 18, United States Code, involves the 
        broadcast of obscene or indecent matter from more than 
        1 individual during the same program, then the 
        broadcast of such matter from each individual shall be 
        considered a separate violation.
          (2) Revocation proceeding to be commenced.--If the 
        Commission has reason to believe that an entity 
        described in subsection (b)(2)(A)(i) of this section 
        has violated section 1464 of title 18, United States 
        Code, then the Commission shall commence a proceeding 
        under section 312(a)(6) to revoke the station license 
        or construction permit of that entity and shall revoke 
        such station license or construction permit unless the 
        Commission determines that such action would not be in 
        the public interest.

                             * * * * * * *

SEC. 510. [47 U.S.C. 510] FORFEITURE OF COMMUNICATIONS DEVICES.

  (a) Any electronic, electromagnetic, radio frequency, or 
similar device, or component thereof, used, sent, carried, 
manufactured, assembled, possessed, offered for sale, sold, or 
advertised with willful and knowing intent to violate section 
301 or 302, and any equipment used to create malicious 
interference in violation of section 333, or rules prescribed 
by the Commission under such sections, may be seized and 
forfeited to the United States.
  (b) Any property subject to forfeiture to the United States 
under this section may be seized by the Attorney General of the 
United States upon process issued pursuant to the supplemental 
rules for certain admiralty and maritime claims by any district 
court of the United States having jurisdiction over the 
property, except that seizure without such process may be made 
if the seizure is incident to a lawful arrest or search.
  (c) All provisions of law relating to--
          (1) the seizure, summary and judicial forfeiture, and 
        condemnation of property for violation of the customs 
        laws;
          (2) the disposition of such property or the proceeds 
        from the sale thereof;
          (3) the remission or mitigation of such forfeitures; 
        and
          (4) the compromise of claims with respect to such 
        forfeitures;
  shall apply to seizures and forfeitures incurred, or alleged 
to have been incurred, under the provisions of this section, 
insofar as applicable and not inconsistent with the provisions 
of this section, except that such seizures and forfeitures 
shall be limited to the communications device, devices, or 
components thereof.
  (d) Whenever property is forfeited under this section, the 
Attorney General of the United States may forward it to the 
Commission or sell any forfeited property which is not harmful 
to the public. The proceeds from any such sale shall be 
deposited in the general fund of the Treasury of the United 
States.

                             * * * * * * *

                     TELECOMMUNICATIONS ACT OF 1996

SEC. 202. BROADCAST OWNERSHIP.

  (a) National Radio Station Ownership Rule Changes Required.--
The Commission shall modify section 73.3555 of its regulations 
(47 C.F.R. 73.3555) by eliminating any provisions limiting the 
number of AM or FM broadcast stations which may be owned or 
controlled by one entity nationally.
  (b) Local Radio Diversity.--
          (1) Applicable caps.--The Commission shall revise 
        section 73.3555(a) of its regulations (47 C.F.R. 
        73.3555) to provide that--
                  (A) in a radio market with 45 or more 
                commercial radio stations, a party may own, 
                operate, or control up to 8 commercial radio 
                stations, not more than 5 of which are in the 
                same service (AM or FM);
                  (B) in a radio market with between 30 and 44 
                (inclusive) commercial radio stations, a party 
                may own, operate, or control up to 7 commercial 
                radio stations, not more than 4 of which are in 
                the same service (AM or FM);
                  (C) in a radio market with between 15 and 29 
                (inclusive) commercial radio stations, a party 
                may own, operate, or control up to 6 commercial 
                radio stations, not more than 4 of which are in 
                the same service (AM or FM); and
                  (D) in a radio market with 14 or fewer 
                commercial radio stations, a party may own, 
                operate, or control up to 5 commercial radio 
                stations, not more than 3 of which are in the 
                same service (AM or FM), except that a party 
                may not own, operate, or control more than 50 
                percent of the stations in such market.
          (2) Exception.--Notwithstanding any limitation 
        authorized by this subsection, the Commission may 
        permit a person or entity to own, operate, or control, 
        or have a cognizable interest in, radio broadcast 
        stations if the Commission determines that such 
        ownership, operation, control, or interest will] result 
        in an increase in the number of radio broadcast 
        stations in operation.
  (c) Television Ownership Limitations.--
          (1) National ownership limitations.--The Commission 
        shall modify its rules for multiple ownership set forth 
        in section 73.3555 of its regulations (47 C.F.R. 
        73.3555)--
                  (A) by eliminating the restrictions on the 
                number of television stations that a person or 
                entity may directly or indirectly own, operate, 
                or control, or have a cognizable interest in, 
                nationwide; and
                  (B) by increasing the national audience reach 
                limitation for television stations to 35 
                percent.
          (2) Local ownership limitations.--The Commission 
        shall conduct a rulemaking proceeding to determine 
        whether to retain, modify, or eliminate its limitations 
        on the number of television stations that a person or 
        entity may own, operate, or control, or have a 
        cognizable interest in, within the same television 
        market.
  (d) Relaxation of One-To-A-Market.--With respect to its 
enforcement of its one-to-a-market ownership rules under 
section 73.3555 of its regulations, the Commission shall extend 
its waiver policy to any of the top 50 markets, consistent with 
the public interest, convenience, and necessity.
  (e) Dual Network Changes.--The Commission shall revise 
section 73.658(g) of its regulations (47 C.F.R. 658(g)) to 
permit a television broadcast station to affiliate with a 
person or entity that maintains 2 or more networks of 
television broadcast stations unless such dual or multiple 
networks are composed of--
          (1) two or more persons or entities that, on the date 
        of enactment of the Telecommunications Act of 1996, are 
        ``networks'' as defined in section 73.3613(a)(1) of the 
        Commission's regulations (47 C.F.R. 73.3613(a)(1)); or
          (2) any network described in paragraph (1) and an 
        English-language program distribution service that, on 
        such date, provides 4 or more hours of programming per 
        week on a national basis pursuant to network 
        affiliation arrangements with local television 
        broadcast stations in markets reaching more than 75 
        percent of television homes (as measured by a national 
        ratings service).
  (f) Cable Cross Ownership.--
          (1) Elimination of restrictions.--The Commission 
        shall revise section 76.501 of its regulations (47 
        C.F.R. 76.501) to permit a person or entity to own or 
        control a network of broadcast stations and a cable 
        system.
          (2) Safeguards against discrimination.--The 
        Commission shall revise such regulations if necessary 
        to ensure carriage, channel positioning, and 
        nondiscriminatory treatment of nonaffiliated broadcast 
        stations by a cable system described in paragraph (1).
  (g) Local Marketing Agreements.--Nothing in this section 
shall be construed to prohibit the origination, continuation, 
or renewal of any television local marketing agreement that is 
in compliance with the regulations of the Commission.
  [(h) Further Commission Review.--The Commission shall review 
its rules adopted pursuant to this section and all of its 
ownership rules biennially as part of its regulatory reform 
review under section 11 of the Communications Act of 1934 and 
shall] determine whether any of such rules are necessary in the 
public interest as the result of competition. The Commission 
shall repeal or modify any regulation it determines to be no 
longer in the public interest.]
  (h) Further Commission Review.--
          (1) In general.--The Commission shall review its 
        rules adopted pursuant to this section, and all of its 
        ownership rules quadrennially (beginning with 2007), 
        and shall determine whether--
                  (A) any rule requires strengthening or 
                broadening;
                  (B) any rule requires limiting or narrowing;
                  (C) any rule should be repealed; or
                  (D) any rule should be retained.
          (2) Change, repeal, or retain.--The Commission shall 
        change, repeal, or retain such rules pursuant to its 
        review under paragraph (1) as it determines to be in 
        the public interest.
  (i) Elimination of Statutory Restriction.--Section 613(a) (47 
U.S.C. 533(a)) is amended--
          (1) by striking paragraph (1);
          (2) by redesignating paragraph (2) as subsection (a);
          (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively;
          (4) by striking ``and'' at the end of paragraph (1) 
        (as so redesignated);
          (5) by striking the period at the end of paragraph 
        (2) (as so redesignated) and inserting ``; and''; and
          (6) by adding at the end the following new paragraph:
          ``(3) shall not apply the requirements of this 
        subsection to any cable operator in any franchise area 
        in which a cable operator is subject to effective 
        competition as determined under section 623(l).''.

                                
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