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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2686 Introduced in Senate (IS)]

109th CONGRESS
  2d Session
                                S. 2686

    To amend the Communications Act of 1934 and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 1, 2006

Mr. Stevens (for himself and Mr. Inouye) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
    To amend the Communications Act of 1934 and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Communications, Consumer's Choice, 
and Broadband Deployment Act of 2006''.

SEC. 2. AMENDMENT OF COMMUNICATIONS ACT OF 1934.

    Except as otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Communications Act of 
1934 (47 U.S.C. 151 et seq.).

SEC. 3. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Amendment of Communications Act of 1934.
Sec. 3. Table of contents.
                       TITLE I--WAR ON TERRORISM

                         Subtitle A--Call Home

Sec. 103. Telephone rates for members of armed forces deployed abroad.
Sec. 102. Repeal of existing authorization.
                      Subtitle B--Interoperability

Sec. 151. Interoperable emergency communications.
          TITLE II--UNIVERSAL SERVICE REFORM; INTERCONNECTION

Sec. 201. Short title.
             Subtitle A--Contributions to Universal Service

Sec. 211. Stabilization of universal service funding.
Sec. 212. Telecommunications services for libraries.
Sec. 213. Modification of rural video service exemption.
Sec. 214. Interconnection.
            Subtitle B--Distributions From Universal Service

Sec. 251. Broadband requirement.
Sec. 252. Establishment of broadband account within universal service 
                            fund.
Sec. 253. Eligible telecommunications carrier guidelines.
Sec. 254. Primary line.
Sec. 255. Phantom traffic.
Sec. 256. Random audits.
Sec. 257. Waste, fraud, and abuse.
              TITLE III--STREAMLINING FRANCHISING PROCESS

Sec. 301. Short title.
 Subtitle A--Updating the 1934 Act and Leveling the Regulatory Playing 
                                 Field

Sec. 311. Application of title VI to video services and video service 
                            providers.
Sec. 312. Purpose; franchise applications; scope.
Sec. 313. Standard franchise application form.
Sec. 314. Definitions.
        Subtitle B--Streamlining the Provision of Video Services

Sec. 331. Franchise requirements and related provisions.
Sec. 332. Renewal; revocation.
Sec. 333. PEG and institutional network obligations.
Sec. 334. Services, facilities, and equipment.
Sec. 337. Shared facilities.
Sec. 338. Consumer protection and customer service.
Sec. 339. Redlining.
          Subtitle C--Miscellaneous and Conforming Amendments

Sec. 351. Miscellaneous amendments.
           Subtitle D--Effective Dates and Transition Rules.

Sec. 381. Effective dates; phase-in.
                        TITLE IV--VIDEO CONTENT

Sec. 401. Short title.
                       Subtitle A--Sports Freedom

Sec. 401. Short title.
Sec. 402. Development of competition and diversity in video programming 
                            distribution. 
Sec. 403. Regulations.
                     Subtitle B--National Satellite

Sec. 431. Availability of certain licensed services in noncontiguous 
                            States.
                    Subtitle C--Video and Audio Flag

Sec. 451. Short title.
Sec. 452. Digital video broadcasting.
Sec. 453. Digital audio broadcasting.
Sec. 454. Digital Audio Review Board.
                      TITLE V--MUNICIPAL BROADBAND

Sec. 501. Short title.
Sec. 502. State regulation of municipal broadband networks.
                 TITLE VI--WIRELESS INNOVATION NETWORKS

Sec. 601. Short title.
Sec. 602. Eligible television spectrum made available for wireless use.
                     TITLE VII--DIGITAL TELEVISION

Sec. 701. Analog and digital television sets and converter boxes; 
                            consumer education and requirements to 
                            reduce the government cost of the converter 
                            box program.
Sec. 702. Digital stream requirement for the blind.
Sec. 703. Status of international coordination.
                    TITLE VIII--PROTECTING CHILDREN

Sec. 801. Video transmission of child pornography.
                     TITLE IX--INTERNET NEUTRALITY

Sec. 901. Neutral networks for consumers.
                         TITLE X--MISCELLANEOUS

Sec. 1001. Commissioner participation in forums and meetings.
Sec. 1002. Severability.

                       TITLE I--WAR ON TERRORISM

                         Subtitle A--Call Home

SEC. 103. TELEPHONE RATES FOR MEMBERS OF ARMED FORCES DEPLOYED ABROAD.

    (a) In General.--The Federal Communications Commission shall take 
such action as may be necessary to reduce the cost of calling home for 
Armed Forces personnel who are stationed outside the United States 
under official military orders or deployed outside the United States in 
support of military operations, training exercises, or other purposes 
as approved by the Secretary of Defense, including the reduction of 
such costs through the waiver of government fees, assessments, or other 
charges for such calls. The Commission may not regulate rates in order 
to carry out this section.
    (b) Factors to Consider.--In taking the action described in 
subsection (a), the Commission, in coordination with the Department of 
Defense and the Department of State, shall--
            (1) evaluate and analyze the costs to Armed Forces 
        personnel of such telephone calls to and from American military 
        bases abroad;
            (2) evaluate methods of reducing the rates imposed on such 
        calls, including deployment of new technology such as voice 
        over Internet protocol or other Internet protocol technology;
            (3) encourage telecommunications carriers (as defined in 
        section 3(44) of the Communications Act of 1934 (47 U.S.C. 
        153(44))) to adopt flexible billing procedures and policies for 
        Armed Forces personnel and their dependents for telephone calls 
        to and from such Armed Forces personnel; and
            (4) seek agreements with foreign governments to reduce 
        international surcharges on such telephone calls.
    (c) Definitions.--In this section:
            (1) Armed forces.--The term ``Armed Forces'' has the 
        meaning given that term by section 2101(2) of title 5, United 
        States Code.
            (2) Military base.--The term ``military base'' includes 
        official duty stations to include vessels, whether such vessels 
        are in port or underway outside of the United States.

SEC. 102. REPEAL OF EXISTING AUTHORIZATION.

    Section 213 of the Telecommunications Authorization Act of 1992 (47 
U.S.C. 201 note) is repealed.

                      Subtitle B--Interoperability

SEC. 151. INTEROPERABLE EMERGENCY COMMUNICATIONS.

    (a) In General.--Section 3006 of Public Law 109-171 (47 U.S.C. 309 
note) is amended by redesignating subsection (d) as subsection (g) and 
by inserting after subsection (c) the following:
    ``(d) Interoperable Communications System Equipment Deployment.--
            ``(1) In general.--The Assistant Secretary shall allocate a 
        portion of the funds made available to carry out this section 
        to make interoperable communications system equipment grants 
        for equipment that can utilize reallocated public safety 
        spectrum.
            ``(2) Allocation of funds.--The Secretary shall allocate 
        the funds as follows:
                    ``(A) A portion to be equally distributed to each 
                State.
                    ``(B) A majority to be distributed to the States 
                based on the threat and risk factors used by the 
                Secretary of Homeland Security for the purposes of 
                allocating discretionary grants under the heading 
                ``Office for Domestic Preparedness, State and Local 
                Programs'' in the Department of Homeland Security 
                Appropriations Act, 2006.
            ``(3) Eligibility.--A State may not receive funds allocated 
        to it under paragraph (2) unless it has established a statewide 
        interoperable communications plan approved by the Secretary of 
        Homeland Security.
            ``(4) Use of funds.--A State shall use any funds received 
        under this subsection for the purchase of equipment and 
        infrastructure that complies with SAFECOM guidance, including 
        any standards that may be referenced by SAFECOM guidance.
    ``(e) Coordination and Planning Grant Initiative.--
            ``(1) In general.--The Assistant Secretary, in consultation 
        with the Secretary of Homeland Security, shall allocate a 
        portion of the funds made available to carry out this section 
        for emergency communication and coordination planning grants. 
        The grants shall supplement, and be in addition to, any Federal 
        funds otherwise made available by grant or otherwise to the 
        States for emergency planning.
            ``(2) Allocation.--The Secretary shall allocate funds under 
        this subsection as follows:
                    ``(A) A portion shall be equally distributed to 
                each State for use by State and local governments; and
                    ``(B) A majority shall be distributed to the States 
                based on the threat and risk factors used by the 
                Secretary of Homeland Security for the purposes of 
                allocating discretionary grants under the heading 
                ``Office for Domestic Preparedness, State and Local 
                Programs'' in the Department of Homeland Security 
                Appropriations Act, 2006.
            ``(3) Coordination and planning guidelines.--Except as 
        provided in paragraph (4), a State shall use its emergency 
        communication coordination and planning grant to establish a 
        statewide plan consistent with the State communications 
        interoperability planning methodology developed by the SAFECOM 
        program within the Department of Homeland Security or a 
        regional plan established pursuant to a regional planning 
        agency consistent with this section. In establishing the plan, 
        the Governor or the Governor's designee shall consult with the 
        Secretary of Homeland Security or the Secretary's designee. A 
        State shall submit its statewide plan to the Public Safety and 
        Homeland Security Bureau of the Federal Communications 
        Commission for approval and the Secretary of Homeland Security 
        for approval.
    ``(f) Strategic Technology Reserves Initiative.--
            ``(1) In general.--The Assistant Secretary, in consultation 
        with the Secretary of Homeland Security, shall allocate a 
        portion the funds made available to carry out this section to 
        establish and implement a strategic technology reserve to pre-
        position or secure communications equipment in advance for 
        immediate deployment in an emergency or major disaster (as 
        defined in section 102(2) of Public Law 93-288 (42 U.S.C. 
        5122)).
            ``(2) Requirements and characteristics.--A reserve 
        established under paragraph (1) shall--
                    ``(A) be capable of re-establishing communications 
                when existing infrastructure is damaged or destroyed in 
                a major disaster or other event; and
                    ``(B) include appropriate current, widely-used 
                equipment, such as Land Mobile Radio Systems, cellular 
                and satellite telephones, Cells On Wheels, Cells On 
                Light Trucks, backup batteries, generators, fuel, and 
                computers.
            ``(3) Additional characteristics.--Portions of the reserve 
        may be virtual and may include items donated on an in-kind 
        contribution basis.
            ``(4) Consultation.--In developing the reserve, the 
        Secretary shall seek advice from the Secretary of Defense and 
        the Secretary of Homeland Security, as well as from 
        communications providers, first responders, emergency managers, 
        and State, local, and tribal governments.
            ``(5) Allocation and use of funds.--The Secretary shall 
        allocate--
                    ``(A) a portion of the reserve's funds for block 
                grants to States to enable each State to establish a 
                strategic technology reserve within its borders in a 
                secure location to allow immediate deployment; and
                    ``(B) a portion of the reserve's funds for regional 
                Federal strategic technology reserves to facilitate any 
                Federal response when necessary, to be held in secure 
                locations around the country for immediate deployment 
                to every region of the country including remote areas 
                and noncontiguous States.
    ``(g) Common Standards; Applications.--
            ``(1) Common standards.--In carrying out this section, the 
        Assistant Secretary, in cooperation with the Secretary of 
        Homeland Security shall develop and implement common standards 
        to the greatest extent practicable.
            ``(2) Applications.--To be eligible for assistance under 
        the programs established in this section, each State shall 
        submit an application, at such time, in such form, and 
        containing such information as the Assistant Secretary may 
        require, including--
                    ``(A) a detailed explanation of how assistance 
                received under the program would be used to improve 
                local communications interoperability and ensure 
                interoperability with other appropriate Federal, State, 
                local, tribal, and regional agencies in a regional or 
                national emergency; and
                    ``(B) assurance that the equipment and system 
                would--
                            ``(i) not be incompatible with the 
                        communications architecture developed under 
                        section 7303(a)(1)(E) of the Intelligence 
                        Reform Act of 2004;
                            ``(ii) meet any voluntary consensus 
                        standards developed under section 7303(a)(1)(D) 
                        of that Act; and
                            ``(iii) be consistent with the common grant 
                        guidance established under section 
                        7303(a)(1)(H) of that Act.''.
    (b) Seamless Mobility.--Within 180 days of the enactment of this 
Act, the Federal Communications Commission shall establish a 
streamlined process to review and approve deployment of multi-mode 
devices that permit communication across multiple platforms, 
facilities, or networks notwithstanding any other provision of law.

          TITLE II--UNIVERSAL SERVICE REFORM; INTERCONNECTION

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Internet and Universal Service Act 
of 2006''.

             Subtitle A--Contributions to Universal Service

SEC. 211. STABILIZATION OF UNIVERSAL SERVICE FUNDING.

    (a) Ensuring an Equitable Contribution Base for Universal 
Service.--
            (1) In general.--Section 254(d) (47 U.S.C. 254(d)) is 
        amended to read as follows:
    `(d) Universal Service Support Contributions.--
            ``(1) Contribution mechanism.--
                    ``(A) In general.--Each communications service 
                provider shall contribute as provided in this 
                subsection to support universal service.
                    ``(B) Requirements.--The Commission shall ensure 
                that the contributions required by this subsection 
                are--
                            ``(i) applied in a manner that is as 
                        competitively and technologically neutral as 
                        possible; and
                            ``(ii) specific, predictable, and 
                        sufficient to sustain the funding of networks 
                        used to preserve and advance universal service.
                    ``(C) Adjustments.--The Commission may adjust the 
                contribution for providers for their low volume 
                residential customers.
            ``(2) Exemptions.--The Commission may exempt a 
        communications service provider or any class of communications 
        service providers from the requirements of this subsection--
                    ``(A) if the services of such a provider are 
                limited to such an extent that the level of its 
                contributions would be de minimis; or
                    ``(B) with respect to communications service 
                provided pursuant to the Commission's Lifeline 
                Assistance Program.
            ``(3) Contribution assessment flexibility.--
                    ``(A) Methodology.--To achieve the principles in 
                this section, the Commission may base universal service 
                contributions upon--
                            ``(i) revenue from communications service;
                            ``(ii) working phone numbers or any other 
                        identifier protocol or connection to the 
                        networks; or
                            ``(iii) network capacity.
                    ``(B) Use of more than 1 methodology.--If no single 
                methodology employed under subparagraph (A) achieves 
                the principles described in this subsection, the 
                Commission may employ a combination of any such 
                methodologies.
                    ``(C) Removal of interstate/intrastate 
                distinction.--For the purpose of universal service 
                contributions, the Commission may assess the 
                interstate, intrastate, or international portions of 
                communications service.
                    ``(D) Group plan discount.--If the Commission 
                utilizes a methodology under subparagraph (A) based in 
                whole or in part on working phone numbers, it may 
                provide a discount for up to 3 additional phones 
                provided under a group or family pricing plan.
                    ``(E) Preservation of universal service funds.--
                Nothing in this subsection precludes a State from 
                establishing or maintaining State universal service 
                pursuant to subsection (f).
            ``(4) Non-discriminatory eligibility requirement.--A 
        communications service provider is not exempted from the 
        requirements of this subsection solely on the basis that such 
        provider is not eligible to receive support under this section.
            ``(6) Billing.--
                    ``(A) In general.--A communications service 
                provider that contributes to universal service under 
                this section may place on any customer bill a separate 
                line item charge that does not exceed the amount for 
                the customer that the provider is required to 
                contribute under this subsection that shall be 
                identified as the `Federal Universal Service Fee'.
                    ``(B) Limitation.--If such a provider bills 
                customers for administrative costs associated with its 
                collection and remission of universal service fees 
                under this subsection--
                            ``(i) the administrative costs shall be a 
                        separate line item charge on the bill and shall 
                        be identified as `Optional Company 
                        Administrative Fee'; and
                            ``(ii) the amount billed for such costs may 
                        not exceed the estimated direct costs 
                        attributable to such administrative costs.
            ``(7) Definitions.--In this subsection:
                    ``(A) Broadband service.--The term `broadband 
                service' means any service used for transmission of 
                information of a user's choosing with a transmission 
                speed of at least 200 kilobits per second in at least 1 
                direction, regardless of the transmission medium or 
                technology employed, that connects to the public 
                Internet for a fee directly--
                            ``(i) to the public; or
                            ``(ii) to such classes of users as to be 
                        effectively available directly to the public.
                    ``(B) Communications service.--The term 
                `communications service' means telecommunications 
                service, broadband service, or IP-enabled voice service 
                (whether offered separately or as part of a bundle of 
                services).
                    ``(C) IP-enabled voice service.--The term `IP-
                enabled voice service' means the provision of real-time 
                2-way voice communications offered to the public, or 
                such classes of users as to be effectively available to 
                the public, transmitted through customer premises 
                equipment using TCP/IP protocol, or a successor 
                protocol, for a fee (whether part of a bundle of 
                services or separately) with 2-way interconnection 
                capability such that the service can originate traffic 
                to, and terminate traffic from, the public switched 
                telephone network.''.
            (2) Conforming amendment.--Section 254(b)(4) (47 U.S.C. 
        254(b)(4)) is amended by striking ``telecommunications 
        services'' and inserting ``communications services (as defined 
        in subsection (d)(7)(B)''.
    (b) Proper Accounting of Universal Service Contributions.--
            (1) From all budgets.--Notwithstanding any other provision 
        of law, the receipts and disbursements of universal service 
        under section 254 of the Communications Act of 1934 (47 U.S.C. 
        254) shall not be counted as new budget authority, outlays, 
        receipts, or deficit or surplus for purposes of--
                    (A) the budget of the United States Government as 
                submitted by the President;
                    (B) the Congressional budget;
                    (C) the Balanced Budget and Emergency Deficit 
                Control Act of 1985; or
                    (D) any other statute requiring budget sequesters.
            (2) Additional exemptions.--Section 1341, subchapter II of 
        chapter 15, and sections 3302, 3321, 3322, and 3325 of title 
        31, United States Code, shall not apply to--
                    (A) the collection and receipt of universal service 
                contributions, including the interest earned on such 
                contributions; or
                    (B) disbursements or other obligations authorized 
                by the Commission under section 254 of the 
                Communications Act of 1934 (47 U.S.C. 254).
    (c) Financial Management.--The Federal Communications Commission 
and the Administrator of the Universal Service Fund--
            (1) shall account for the financial transactions of the 
        Fund in accordance with generally accepted accounting 
        principles for Federal agencies;
            (2) shall maintain the accounts of the Fund in accordance 
        with the United States Government Standard General Ledger; and
            (3) may invest unexpended balances only in Federal 
        securities (as defined in section 113(b)(5) of Office of 
        Management and Budget circular OMB A-11).
    (d) Rulemaking.--Not later than 180 days after the date of 
enactment of this Act, the Federal Communications Commission shall 
issue a rule to implement section 254(d) of the Communications Act of 
1934 (47 U.S.C. 254(d)) as amended by subsection (a).

SEC. 212. TELECOMMUNICATIONS SERVICES FOR LIBRARIES.

    (a) In General.--Section 254(h)(4) (47 U.S.C. 254(h)(4)) is amended 
to read as follows:
    ``(4) Certain users not eligible.--Notwithstanding any other 
provision of this subsection, the following entities are not entitled 
to preferential rates or treatment as required by this subsection:
                    ``(A) An entity operated as a for-profit business.
                    ``(B) A school described in paragraph (7)(A) with 
                an endowment of more than $50,000,000.
                    ``(C) A library or library consortium not eligible 
                for assistance under the Library Services and 
                Technology Act (20 U.S.C. 9101 et seq.)--
                            ``(i) from a State library administrative 
                        agency; or
                            ``(ii) funded by a grant under section 261 
                        of the Library Services and Technology Act (20 
                        U.S.C. 9161) from an Indian tribe or other 
                        organization.''.
    (b) Funding.--Section 254(h)(1) (47 U.S.C. 254(h)(1)) is amended by 
adding at the end the following:
                    ``(C) Funding.--The obligations under, and 
                administrative costs of, this subsection for any 
                funding year may not exceed the sum of--
                            ``(i) the annual program funding cap 
                        established by the Commission; and
                            ``(ii) any unobligated balances from prior 
                        funding years.''.
    (c) American Community Survey Residential Internet Access 
Question.--The Secretary of Commerce, in consultation with the Federal 
Communications Commission, shall expand the American Community Survey 
conducted by the Bureau of the Census to elicit information for 
residential households, including those located on native lands, as to 
what technology such households use to access the Internet from home.

SEC. 213. MODIFICATION OF RURAL VIDEO SERVICE EXEMPTION.

    (a) Rural telephone companies.--Section 251(f)(1) (47 U.S.C. 
251(f)(1)) is amended--
            (1) by striking ``Subsection'' in subparagraph (A) and 
        inserting ``Except as provided in subparagraph (B), 
        subsection'';
            (2) by striking ``interconnection, services, or network 
        elements,'' in subparagraph (A) and inserting ``services or 
        network elements,'';
            (3) by striking ``(under subparagraph (B))'' in 
        subparagraph (A) and inserting ``(under subparagraph (C))''
            (4) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D);
            (5) by inserting after subparagraph (A) the following:
                    ``(B) Interconnection.--Notwithstanding 
                subparagraph (A), subsection (c)(2) of this section 
                shall not apply to a rural telephone company until such 
                company has received a bona fide request for 
                interconnection.'';
            (6) by striking ``exemption under subparagraph (A).'' in 
        subparagraph (C), as redesignated, and inserting 
        ``exemption.''; and
            (7) by striking subparagraph (D) as redesignated.
    (b) Other rural carriers.--Section 251(f)(2) (47 U.S.C. 251(f)(2)) 
is amended by inserting ``(other than subsection (c)(2))'' after 
``subsection (b) or (c)''.

SEC. 214. INTERCONNECTION.

    Title VII (47 U.S.C. 601 et seq.) is amended by adding after 
section 714 the following new section:

``SEC. 715. RIGHTS AND OBLIGATIONS OF IP-ENABLED VOICE SERVICE 
              PROVIDERS.

    ``(a) In General.--An IP-enabled voice service provider shall have 
the same rights, duties, and obligations as a requesting 
telecommunications carrier under sections 251 and 252, if the provider 
elects to assert such rights.
    ``(b) Disabled Services.--An IP-enabled voice service provider 
shall have the same rights, duties, and obligations as a 
telecommunications carrier under sections 225, 255, and 710. In 
revising the Commission's regulations under such sections to carry out 
this subsection, the Commission shall consider whether a service or 
equipment is marketed as a substitute for telecommunications service, 
telecommunications equipment, customer premises equipment, or 
telecommunications relay services.
    ``(c) IP-Enabled Voice Service Defined.--In this section, the term 
`IP-enabled voice service' means the provision of real-time 2-way voice 
communications offered to the public, or such classes of users as to be 
effectively available to the public, transmitted through customer 
premises equipment using TCP/IP protocol, or a successor protocol, for 
a fee (whether part of a bundle of services or separately) with 
interconnection capability such that the service can originate traffic 
to, or terminate traffic from, the public switched telephone 
network.''.

            Subtitle B--Distributions From Universal Service

SEC. 251. BROADBAND REQUIREMENT.

    Section 214(e) (47 U.S.C. 214(e)) is amended by adding at the end 
the following:
            ``(7) Broadband Service Requirement.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                an eligible communications carrier may not receive 
                universal service support under section 254 more than 
                60 months after the date of enactment of the Internet 
                and Universal Service Act of 2006 if it has not 
                deployed broadband service within its service area 
                before the end of that 60-month period unless it 
                receives a waiver under subparagraph (B).
                    ``(B) Waivers.--
                            ``(i) Application.--In order to receive a 
                        waiver under this subparagraph, an eligible 
                        communications carrier shall submit an 
                        application to the Commission.
                            ``(ii) Cost of deployment.--If an eligible 
                        communications carrier demonstrates to the 
                        satisfaction of the Commission that the cost 
                        per line of deploying such broadband service is 
                        at least 3 times the average cost per line of 
                        deploying such broadband service for all 
                        eligible communications carriers receiving 
                        universal service support, the Commission shall 
                        waive the application of subparagraph (A) to 
                        that eligible communications carrier.
                            ``(iii) Other factors.--If an eligible 
                        communications carrier demonstrates to the 
                        satisfaction of the Commission that the 
                        deployment and provision of such broadband 
                        service is not technically feasible or would 
                        materially impair the carrier's ability to 
                        continue to provide local exchange service or 
                        broadband service throughout its service area, 
                        the Commission may waive the application of 
                        subparagraph (A) to that eligible 
                        communications carrier.
                            ``(iv) Deemed approval.--If the Commission 
                        fails to act on a waiver request within 60 
                        calendar days after it receives a completed 
                        application for the waiver, the waiver shall be 
                        deemed to be granted. If the Commission 
                        requests additional information from the 
                        eligible communications carrier, the 60-day 
                        period shall be tolled beginning on the date on 
                        which request is received by the carrier and 
                        ending on the date on which the Commission 
                        receives the information requested.
                            ``(v) Term; renewal.--A waiver under this 
                        subparagraph--
                                    ``(I) shall be for a period of not 
                                more than 2 years; and
                                    ``(II) may be renewed, upon 
                                application, by the Commission if the 
                                applicant demonstrates that it is 
                                eligible for a waiver under clause (ii) 
                                or (iii).
                    ``(C) Notification of state commission.--Whenever 
                the Commission grants a waiver to an eligible 
                communications carrier under subparagraph (B) that has 
                been designated under paragraph (2) by a State 
                commission, the Commission shall notify the State 
                commission of the waiver.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Broadband service.--The term 
                        `broadband service' means any service used for 
                        transmission of information of a user's 
                        choosing with a transmission speed of at least 
                        3 megabits per second in at least 1 direction, 
                        regardless of the transmission medium or 
                        technology employed, that connects to the 
                        public Internet for a fee directly--
                                    ``(I) to the public; or
                                    ``(II) to such classes of users as 
                                to be effectively available directly to 
                                the public.
                            ``(ii) Eligible communications carrier.--
                        The term `eligible communications carrier' 
                        means an entity designated under paragraph (2), 
                        (3), or (6). Any reference to `eligible 
                        telecommunications carrier' in this section is 
                        deemed also to refer to `eligible 
                        communications carrier'.''.

SEC. 252. ESTABLISHMENT OF BROADBAND ACCOUNT WITHIN UNIVERSAL SERVICE 
              FUND.

    Part I of title II (47 U.S.C. 201 et seq.) is amended by inserting 
after section 254 the following:

``SEC. 254A. BROADBAND FOR UNSERVED AREAS ACCOUNT.

    ``(a) Account Established.--
            ``(1) In general.--There shall be, within the universal 
        service fund established pursuant to section 254, a separate 
        account to be known as the `Broadband for Unserved Areas 
        Account'.
            ``(2) Purpose.--The purpose of the Account is to provide 
        financial assistance for the deployment of broadband service to 
        unserved areas throughout the United States.
    ``(b) Implementation.--
            ``(1) In general.--Within 180 days after the date of 
        enactment of the Internet and Universal Service Act of 2006, 
        the Commission shall issue rules establishing--
                    ``(A) guidelines for determining which areas may be 
                considered to be unserved areas for purposes of this 
                section;
                    ``(B) criteria for determining which facilities-
                based providers of broadband service, and which 
                projects, are eligible for support from the Account;
                    ``(C) procedural guidelines for awarding assistance 
                from the Account on a merit-based and competitive 
                basis;
                    ``(D) guidelines for application procedures, 
                accounting and reporting requirements, and other 
                appropriate fiscal controls for assistance made 
                available from the Account; and
                    ``(E) a procedure for making funds in the Account 
                available among the several States on an equitable 
                basis.
            ``(2) Satellite service.--
                    ``(A) Eligibility of provider.--A satellite service 
                provider shall be considered to be a facility-based 
                provider eligible for support from the Account.
                    ``(B) Eligibility of cpe projects.--The deployment 
                of satellite customer premises equipment may be 
                considered to be a project eligible for support from 
                the Account.
                    ``(C) Designation of lightly served areas.--The 
                availability of broadband service by satellite in an 
                area shall not preclude the designation of that area as 
                an unserved area if the Commission determines that 
                subscribership to satellite service in the area is de 
                minimis.
                    ``(D) Multiple areas within state.--For purposes of 
                this section, there may be more than 1 unserved area 
                within a State.
            ``(3) Report.--The Commission shall transmit an annual 
        report to the Senate Committee on Commerce, Science, and 
        Transportation and the House of Representatives Committee on 
        Energy and Commerce making recommendations for an increase or 
        decrease, if necessary, in the amounts credited to the account 
        under this section.
    ``(c) Limitations.--
            ``(1) Annual amount.--Amounts obligated or expended under 
        subsection (b) for any fiscal year may not exceed $500,000,000.
            ``(2) Use of funds.--To the extent that the full amount in 
        the account is not obligated for financial assistance under 
        this section within a fiscal year, any unobligated funds shall 
        be used to support universal service under section 254.
            ``(3) Support limited to facilities-based single provider 
        per unserved area.--Assistance under this section may be 
        provided only to--
                    ``(A) facilities-based providers of broadband 
                service; and
                    ``(B) 1 facility-based provider of broadband 
                service in any unserved area.
    ``(d) Application With Sections 214, 254, and 410.--
            ``(1) Section 214(e).--Section 214(e) shall not apply to 
        the Broadband for Unserved Areas Account.
            ``(2) Section 254.--Section 254 shall be applied to the 
        Broadband for Unserved Areas Account--
                    ``(A) by disregarding--
                            ``(i) subsections (a) and (e) thereof; and
                            ``(ii) any other provision thereof 
                        determined by the Commission to be 
                        inappropriate or inapplicable to implementation 
                        of this section; and
                    ``(B) by reconciling, to the maximum extent 
                feasible and in accordance with guidelines prescribed 
                by the Commission, the implementation of this section 
                with the provisions of subsections (h) and (l) thereof.
            ``(3) Section 410.--Section 410 shall not apply to the 
        Broadband for Unserved Areas Account.
    ``(e) Broadband Service Defined.--
            ``(1) In general.--In this section, except to the extent 
        revised by the Commission under paragraph (2), the term 
        `broadband service' means any service used for transmission of 
        information of a user's choosing with a transmission speed of 
        at least 500 kilobits per second in at least 1 direction, 
        regardless of the transmission medium or technology employed, 
        that connects to the public Internet for a fee directly--
                    ``(A) to the public; or
                    ``(B) to such classes of users as to be effectively 
                available directly to the public.
            ``(2) Annual review of transmission speed.--The Commission 
        shall review the transmission speed component of the definition 
        in subparagraph (A) no less frequently than once each year and 
        revise that component as appropriate.''.

SEC. 253. ELIGIBILITY GUIDELINES.

    Section 214(e) (47 U.S.C. 214(e)), as amended by section 251, is 
amended by adding at the end the following:
            ``(8) Eligibility guidelines.--A common carrier may not be 
        designated as an eligible communications carrier (as defined in 
        paragraph (7)(D)(ii)) subsection unless it--
                    ``(A) provides a 5-year plan demonstrating how 
                high-cost universal service support will be used to 
                improve its coverage, service quality, or capacity in 
                every wire center for which it seeks designation and 
                expects to receive universal service;
                    ``(B) demonstrates its ability to remain functional 
                in emergency situations;
                    ``(C) demonstrates that it will satisfy consumer 
                protection and service quality standards;
                    ``(D) offers local usage plans comparable to those 
                offered by the incumbent local exchange carrier in the 
                areas for which it seeks designation; and
                    ``(E) acknowledges that it may be required to 
                provide equal access if all other eligible 
                telecommunications carriers in the designated service 
                area relinquish their designations pursuant to 
                paragraph (4) of this subsection.''.

SEC. 254. PRIMARY LINE.

    Section 214(e) (47 U.S.C. 214(e)), as amended by section 253, is 
amended by adding at the end the following:
            ``(9) Primary line.--In implementing the requirements of 
        this Act with respect to the distribution and use of Federal 
        universal service support the Commission shall not limit such 
        distribution and use to a single connection or primary line, 
        and all residential and business lines served by an eligible 
        telecommunications carrier shall be eligible for Federal 
        universal service support.''.

SEC. 255. PHANTOM TRAFFIC.

    Section 254 (47 U.S.C. 254) is amended by adding at the end the 
following:
    ``(i) Network Traffic Identification Accountability Standards.--
            ``(1) Network traffic identification standards.--A provider 
        of voice communications services (including an IP-enabled voice 
        service provider) shall ensure that all traffic that originates 
        on its network contains sufficient information to allow for 
        traffic identification by other communications service 
        providers that transport, transit, or terminate such traffic, 
        including information on the identity of the originating 
        provider, the calling and called parties, and such other 
        information as the Commission deems appropriate.
            ``(2) Network traffic identification rulemaking.--The 
        Commission, in consultation with the States, shall initiate a 
        single rulemaking no later than 180 days after the date of 
        enactment of the Internet and Universal Service Act of 2006 to 
        establish rules and enforcement provisions for traffic 
        identification.
            ``(3) Network traffic identification enforcement.--The 
        Commission shall adopt clear penalties, fines, and sanctions 
        for insufficiently labeled traffic.''.

SEC. 256. RANDOM AUDITS.

    Section 214(e) (47 U.S.C. 214(e)), as amended by section 254, is 
amended by adding at the end the following:
            ``(10) Audits.--Each State commission that designates an 
        eligible communications provider (as defined in paragraph 
        (7)(D)(ii) and the Commission, with respect to eligible 
        communications carriers designated by it, shall provide for 
        random periodic audits of each such carrier with respect to its 
        receipt and use of universal service support and its relative 
        cost to provide service compared to other, similarly situated, 
        universal service recipients based on their respective study 
        areas or service areas.''.

SEC. 257. WASTE, FRAUD, AND ABUSE.

    The Federal Communications Commission, in consultation with the 
Administrator of the Universal Service Administrative Company, shall--
            (1) ensure the integrity and accountability of all programs 
        established under section 254(h) of the Communications Act of 
        1934 (47 U.S.C. 254(h)); and
            (2) not later than 180 days after the date of enactment of 
        this Act, establish rules--
                    (A) identifying appropriate fiscal controls and 
                accountability standards that shall be applied to the 
                Schools and Libraries Program under section 254(h);
                    (B) including a memorandum of understanding, or 
                including contractual relationships, as the Commission 
                determines appropriate, defining the administrative 
                structure and processes by which the Universal Service 
                Administrative Company administers the Schools and 
                Libraries Program under section 254(h);
                    (C) creating performance goals and measures for the 
                Schools and Libraries Program under section 254(h), 
                such goals and measures shall be used by the Commission 
                to determine--
                            (i) how efficiently and cost-effectively 
                        funds are spent in supporting the 
                        telecommunications needs of schools and 
                        libraries; and
                            (ii) areas for improved operations; and
                    (D) establishing appropriate enforcement actions, 
                including imposition of sanctions on applicants and 
                vendors who repeatedly and knowingly violate program 
                rules set forth in section 254(h), such as debarment 
                from the program for individuals convicted of crimes or 
                held civilly liable for actions taken in connection 
                with the Schools and Libraries Program.

              TITLE III--STREAMLINING FRANCHISING PROCESS

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Video Competition and Savings for 
Consumers Act of 2006''.

 Subtitle A--Updating the 1934 Act and Leveling the Regulatory Playing 
                                 Field

SEC. 311. APPLICATION OF TITLE VI TO VIDEO SERVICES AND VIDEO SERVICE 
              PROVIDERS.

    (a) Terminology.--Title VI (47 U.S.C. 521 et seq.), except for 
section 602 (47 U.S.C. 522), is amended--
            (1) by striking ``cable operator'' and ``cable operators'' 
        each place they appear and inserting ``video service provider'' 
        or ``video service providers'', as appropriate;
            (2) by striking ``cable service'' and ``cable services'' 
        each place they appear and inserting ``video service'' or 
        ``video services'', respectively;
            (3) by striking ``cable'' each place it appears, except the 
        second place it appears in section 624(i), and inserting 
        ``video service'';
            (4) by striking ``operator'' each place it appears and 
        inserting ``provider'';
            (5) by striking ``cassette'' each place it appears; and
            (6) by striking ``tape'' each place it appears and 
        inserting ``copy''.
    (b) Headings.--Title VI (47 U.S.C. 521 et seq.) is amended--
            (1) by striking the heading for title VI and inserting 
        ``TITLE VI--VIDEO SERVICES'';
            (2) by striking the heading for part II and inserting 
        ``PART II--USE OF VIDEO SERVICES; RESTRICTIONS'';
            (3) by striking the heading for part III and inserting 
        ``PART III--FRANCHISING''; and
            (4) striking ``CABLE'' in the heading for sections 633 and 
        640 and inserting ``VIDEO SERVICE''.
    (c) Regulations.--
            (1) New regulations.--Within 120 days after the date of 
        enactment of this Act, the Commission shall issue regulations 
        to implement sections 603, 612, 621, and 622 of the 
        Communications Act of 1934, as amended by this Act.
            (2) Updating existing regulations.--Within 120 days after 
        the date of enactment of this Act, the Commission shall issue, 
        as necessary, updated regulations needed under title VI or 
        other provisions of the Communications Act of 1934 to reflect 
        the amendments made by this Act.

SEC. 312. PURPOSE; FRANCHISE APPLICATIONS; SCOPE.

    (a) Purpose.--Section 601 (47 U.S.C. 521) is amended to read as 
follows:

``SEC. 601. PURPOSE.

    ``It is the purpose of this title to establish a comprehensive 
Federal legal framework for the franchising of video services that use 
public rights-of-way.''.
    (b) Franchise Application; Scope.--Part I of title VI (47 U.S.C. 
521 et seq.) is amended by adding at the end the following:

``SEC. 603. FRANCHISE APPLICATIONS.

    ``(a) In General.--
            ``(1) 30-day process.--Except as otherwise provided in this 
        subsection, a franchising authority shall grant a franchise to 
        provide video service within its franchise area to a video 
        service provider within 30 calendar days after receiving a 
        franchise application from the video service provider that is 
        complete except for--
                    ``(A) the franchise fee, as provided by section 
                622;
                    ``(B) the number of public, educational, or 
                governmental use channels required by section 611;
                    ``(C) any fee that may be assessed under section 
                622(b)(5); and
                    ``(D) the point of contact for the franchising 
                authority.
            ``(2) Standardized application form.--A video service 
        provider shall use the standard franchise application form 
        promulgated by the Commission under section 612.
            ``(3) Responsibilities of franchise authority.--Within 15 
        calendar days after receiving a franchise application under 
        paragraph (1), a franchising authority may--
                    ``(A) complete the application form by providing 
                the information described in subparagraphs (A), (B), 
                (C) and (D) of paragraph (1) in a manner that is 
                consistent with the requirements of this title; and
                    ``(B) return the completed application to the video 
                service provider.
            ``(4) Acceptance of terms.--A franchising agreement shall 
        take effect on the date on which the completed franchise 
        application is received by the applicant under paragraph (3)(B) 
        unless the applicant notifies the franchising authority within 
        15 calendar days after receipt of the completed franchise 
        application form that the terms provided are not accepted.
            ``(5) Exception.--This subsection does not require a 
        franchise authority to approve or complete an application from 
        a video service provider if a franchise held by that provider 
        has been revoked under section 625(b) or 640 by the franchise 
        authority.
    ``(b) Deemed Approval.--Except as provided in subsection (a)(5), if 
a franchising authority fails to act on a franchise application that 
meets the requirements of paragraphs (1) and (2) of subsection (a) 
within the 30-day period, the franchise application shall be deemed to 
be granted--
            ``(1) effective on the 31st day after the franchising 
        authority received the application;
            ``(2) for a term of 15 years;
            ``(3) with a franchise fee equal to the lesser of--
                    ``(A) the fee paid by the cable operator with the 
                most subscribers offering cable service in the 
                franchise area; or
                    ``(B) 5 percent of gross revenue (determined under 
                section 622); and
            ``(4) with an obligation to provide the number of public, 
        educational, or governmental use channels required by section 
        611.
    ``(c) Procedure.--If an application is not granted within 30 days 
after its receipt by a franchising authority because of subsection 
(a)(5), the applicant may avail itself of the procedures in section 635 
of this Act.

``SEC. 604. NO EFFECT ON STATE LAWS OF GENERAL APPLICABILITY.

    ``Nothing in this title is intended to affect State or local laws 
of general applicability for all businesses, except to the extent that 
such laws are inconsistent with this title.

``SEC. 605. DIRECT BROADCAST SATELLITE SERVICE.

    ``No State or local government may regulate direct broadcast 
satellite services (as that term is used in section 335 of this 
Act).''.

SEC. 313. STANDARD FRANCHISE APPLICATION FORM.

    Section 612 (47 U.S.C. 532) is amended to read as follows:

``SEC. 612. STANDARD FRANCHISE AGREEMENT FORM.

    ``Within 30 days after the date of enactment of the Video 
Competition and Savings for Consumers Act of 2006, the Commission shall 
promulgate a standard franchise agreement form, the use of which by 
franchising authorities shall be mandatory. The franchise application 
form shall include blank spaces to be filled in by the video service 
provider and the franchising authority, as appropriate, for--
            ``(1) the name of the video service provider;
            ``(2) the name and business address of each director and 
        principal executive officers;
            ``(3) a point of contact for the video service provider;
            ``(4) a point of contact for the franchising authority;
            ``(5) the fees;
            ``(6) the period during which the franchising agreement 
        shall be in effect;
            ``(7) the public, educational, or governmental programming 
        to be provided;
            ``(8) the physical location of the headend; and
            ``(9) a description of the video service to be provided.''.

SEC. 314. DEFINITIONS.

    (a) In General.--Section 602 (47 U.S.C. 522) is amended--
            (1) by striking ``cable system'' in paragraphs (1) and (9) 
        and inserting ``video service system'';
            (2) by striking ``regulation);'' in paragraph (4) and 
        inserting ``regulation) or its equivalent (as determined by the 
        Commission).'';
            (3) by inserting after paragraph (11) the following:
            ``(11A) `headend' means the headend of a cable system or 
        video service system.'';
            (4) by inserting after paragraph (12) the following:
            ``(12A) `institutional network' means a communication 
        network that is constructed or operated by a video service 
        provider cable operator and that is generally available only to 
        subscribers who are not residential subscribers.'';
            (5) by striking ``cable operator'' in paragraph (14) and 
        inserting ``video service provider'';
            (6) by inserting after paragraph (16) the following:
            ``(16A) `satellite carrier' means an entity that uses the 
        facilities of a satellite or satellite service licensed by the 
        Federal Communications Commission and operates in the Fixed-
        Satellite Service under part 25 of title 47 of the Code of 
        Federal Regulations or the Direct Broadcast Satellite Service 
        under part 100 of title 47 of the Code of Federal Regulations, 
        to establish and operate a channel of communications for point-
        to-multipoint distribution of television station signals, and 
        that owns or leases a capacity or service on a satellite in 
        order to provide such point-to-multipoint distribution, except 
        to the extent that such entity provides such distribution 
        pursuant to tariff under the Communications Act of 1934, other 
        than for private home viewing.'';
            (7) by striking ``cable service'' in paragraph (17) and 
        inserting ``video service'';
            (8) by striking ``cable operator'' each place it appears in 
        paragraph (17) and inserting ``video service provider''; and
            (9) by inserting after paragraph (20) the following:
            ``(24) Video service.--The term `video service' means--
                    ``(A) video programming;
                    ``(B) interactive on demand services; or
                    ``(C) other programming services.
            ``(25) Video service provider.--The term `video service 
        provider'--
                    ``(A) means a provider of video service that 
                utilizes a public right-of-way in the provision of such 
                service, including a cable operator; but
                    ``(B) does not include--
                            ``(i) a satellite carrier;
                            ``(ii) any person providing video 
                        programming using radio communication directly 
                        to the recipient's premises; or
                            ``(iii) any provider of commercial mobile 
                        service (as defined in section 332(d)).''.
    (b) Stylistic Consistency.--Section 602 (47 U.S.C. 622), as amended 
by subsection (a), is amended--
            (1) by striking ``title--'' and inserting ``title:'';
            (2) by redesignating paragraphs (1) through (20) as 
        paragraphs (1) through (23);
            (3) by striking the semicolon at the end of each such 
        paragraph and inserting a period; and
            (4) by inserting after the designation of each such 
        paragraph--
                    (A) a heading, in a form consistent with the form 
                of the heading of paragraphs (24) and (25), as added by 
                subsection (a) of this section consisting of the term 
                defined by such paragraph, or the first term so defined 
                in the paragraph defines more than 1 term; and
                    (B) the words ``The term''.

        Subtitle B--Streamlining the Provision of Video Services

SEC. 331. FRANCHISE REQUIREMENTS AND RELATED PROVISIONS.

    (a) General Franchise Requirements.--Section 621 (47 U.S.C. 541) is 
amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--
            ``(1) Award of franchise.--A franchising authority may 
        not--
                    ``(A) grant an exclusive franchise; or
                    ``(B) grant a franchise for a term shorter than 5 
                years or longer than 15 years.
            ``(2) Preservation of local government power to manage 
        public rights-of-way; easements.--
                    ``(A) In general.--Nothing in this title affects 
                the authority of a State or local government to apply 
                its laws or regulations governing the use of the public 
                rights of way in a manner that is reasonable, 
                competitively neutral, nondiscriminatory, and 
                consistent with State statutory police powers, 
                including permitting, payments for bonds, security 
                funds, letters of credit, insurance, indemnification, 
                penalties, or liquidated damages to ensure compliance 
                with such laws and regulations.
                    ``(B) Limitations on permitting fees.--
                            ``(i) In general.--A State or local 
                        government may not--
                                    ``(I) impose a permitting fee on a 
                                video service provider that exceeds the 
                                estimated direct costs incurred by the 
                                State or local government in issuing 
                                the permit;
                                    ``(II) impose any conditions for 
                                market entry or use this section as a 
                                barrier to entry by a video service 
                                provider; or
                                    ``(III) take any action that would 
                                delay the provision of video services 
                                by a video service provider in a local 
                                franchise area.
                            ``(ii) Reconciliation of overcharges.--
                        Within 30 days after any re-estimate of 
                        estimated direct costs for purposes of clause 
                        (i)(I) that--
                                    ``(I) requires a reduction in the 
                                permitting fee, the State or local 
                                government shall refund the excess, if 
                                any, to the video service provider; or
                                    ``(II) results in an increase in 
                                the permitting fee, the video service 
                                provider shall pay the difference 
                                between the amount paid and the 
                                increased fee to the State or local 
                                government.
                    ``(C) Timely action required.--In managing the 
                public rights-of-way a State or local government that 
                issues permits or licenses for use of the public 
                rights-of-way shall act upon any such request for use 
                in a timely manner.
                    ``(D) New roads.--Nothing in this section shall 
                affect the ability of a State or local government to 
                impose reasonable limits on access to public rights-of-
                way associated with newly constructed roads.
                    ``(E) Prevention of abuse of power.--If the 
                Commission determines in a proceeding brought by a 
                video service provider to enforce this subsection that 
                a franchising authority abused the authority provided 
                by this section in violation of subparagraph (B), the 
                Commission may award reasonable attorneys' fees and 
                Commission costs to the video service provider.''; and
            (2) by striking paragraph (1) of subsection (b) and 
        inserting ``(1) Except to the extent provided in subsection 
        (f), a video service provider may not provide video service 
        without a franchise.''.
    (b) Franchise Fee.--Section 622 (47 U.S.C. 542) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) In General.--A franchising authority may impose and collect a 
franchise fee from a video service provider that provides video 
services within the local franchise area of that authority.
    ``(b) Amount.--
            ``(1) In general.--The franchise fee imposed by a 
        franchising authority under subsection (a) for any 12-month 
        period may not exceed 5 percent of the video service provider's 
        gross revenue derived in such period. For purposes of this 
        section, the 12-month period shall be the 12-month period 
        applicable under the franchise for accounting purposes.
            ``(2) Prepaid or deferred payment arrangements.--Nothing in 
        this subsection prohibits a franchising authority and a video 
        service provider from agreeing that franchise fees which 
        lawfully could be collected for any such 12-month period shall 
        be paid on a prepaid or deferred basis, except that the sum of 
        the fees paid during the term of the franchise may not exceed 
        the amount, including the time value of money, which would have 
        lawfully been collected if such fees had been paid per annum.
            ``(3) Franchising authority and video service provider 
        agreements.--Nothing in this section precludes a State or local 
        government and a video service provider from entering into a 
        voluntary commercial agreement, whereby in consideration for a 
        mutually agreed upon reduction in the franchise fee under 
        paragraph (1), the video service provider makes available to 
        the local unit of government services, equipment, capabilities, 
        or other valuable consideration.
            ``(4) PEG and institutional network financial support.--
                    ``(A) In general.--A video service provider with a 
                franchise under this section for a franchise area may 
                be required to pay an amount equal to not more than 1 
                percent of the video service provider's gross revenue 
                in the franchise area to the franchising authority for 
                the support of public, educational, and governmental 
                use and institutional networks. The payment shall be 
                assessed and collected in a manner consistent with this 
                section.
                    ``(B) Existing franchise institutional networks.--A 
                franchising authority may require a cable operator to 
                continue to provide any institutional network provided 
                by that cable operator before executing a franchise 
                agreement under this title.
                    ``(C) Incremental costs.--If the incremental cost 
                of operating an institutional network under 
                subparagraph (B) is less than 1 percent of the video 
                service provider's gross revenue, the video service 
                provider may deduct the incremental cost of operating 
                the institutional network from the contribution 
                required under subparagraph (A). The franchising 
                authority shall reimburse the video service provider 
                for the amount by which the incremental cost of 
                operating such institutional network exceeds any fee 
                required under subparagraph (A).
                    ``(D) Adjustment.--Every 15 years after the 
                commencement of a franchise granted after April 30, 
                2006, a franchising authority may require a video 
                service provider to increase the channel capacity 
                designated for public, educational, or governmental 
                use, and the channel capacity designated for such use 
                on any institutional networks required under 
                subparagraph (A). The increase may not exceed the 
                greater of--
                            ``(i) 1 channel; or
                            ``(ii) 10 percent of the public, 
                        educational, or governmental channel capacity 
                        required of the video service provider before 
                        the required increase.''; and
            (2) by striking subsections (d) through (h) and inserting 
        the following:
    ``(d) Other Taxes, Fees, and Assessments Not Affected.--
            ``(1) In general.--Nothing in this section shall be 
        construed to modify, impair, or supersede, or authorize the 
        modification, impairment, or supersession of, any State or 
        local law pertaining to taxation.
            ``(2) Generally applicable taxes, fees, and assessments.--
        Nothing in this section shall be construed to modify, impair, 
        or supersede any Federal, State, or local tax, fee, or 
        assessment, or other charges that are--
                    ``(A) applicable to services other than video 
                service; or
                    ``(B) generally applicable (including any such tax, 
                fee, assessment, or charge imposed on both utilities 
                and video service providers or their services other 
                than a tax, fee, assessment, or charge that is unduly 
                discriminatory against video service providers or video 
                service subscribers).
            ``(3) Telecommunications services.--Nothing in this section 
        is intended to modify, impair, or supersede the ability of any 
        State to impose a tax, fee, or assessment (including any such 
        tax, fee, or assessment that is imposed by the State and 
        remitted to its political subdivisions) that is--
                    ``(A) measured by the sales price of a 
                telecommunications service and required to be paid by 
                all telecommunications service providers or their 
                customers (including video service providers) on a 
                nondiscriminatory basis; and
                    ``(B) in lieu of any compensation or other charge 
                for using or occupying the public rights-of-way to 
                provide telecommunications service, including the 
                franchise fee authorized by this section.
    ``(e) Annual Review.--
            ``(1) Audit procedure.--A franchising authority that 
        believes that it is not receiving the full amount of the video 
        service fee imposed under this section may petition its State 
        commission to commence an audit to ensure compliance with the 
        definition of gross revenue and the calculation of fees under 
        this section. The State commission shall coordinate audits to 
        the maximum extent possible to avoid unnecessary duplication 
        and cost on carriers.
            ``(2) Reimbursement of franchising authority for 
        substantial deficiencies.--If there is a final determination, 
        after the dispute resolution procedures under subsection (f) 
        have been completed, that the video service provider has 
        underpaid the franchise fee imposed under this section by 5 
        percent or more for the 12-month period that was the subject of 
        the review, the video service provider shall reimburse the 
        franchising authority for the reasonable costs associated with 
        the review. Those costs include any reasonable amount paid by 
        the franchising authority to an independent third party for 
        conducting the review other than any amount paid to an 
        independent third party under a contingency fee arrangement.
            ``(3) Statute of limitations.--A franchising authority may 
        not request a review under paragraph (1) for any 12-month 
        period ending more than 36 months before the date on which the 
        request is submitted.
    ``(f) Dispute Resolution Procedure.--
            ``(1) Notice; 30-day period.--If there is a dispute between 
        a franchising authority and a video service provider over the 
        amount or payment of the fee authorized by this section that 
        has not been resolved between the parties in a reasonable 
        period of time under normal business procedures, the aggrieved 
        party may give the other party written notice of intent to 
        initiate the dispute resolution procedure provided by this 
        subsection. Within 30 calendar days after the notice has been 
        received by the second party, representatives of each party 
        with authority to settle the dispute shall meet at a mutually 
        agreed upon time and place to attempt to negotiate a resolution 
        of the dispute.
            ``(2) 60-day period; commission complaint procedure.--
                    ``(A) In general.--If the dispute has not been 
                resolved within 60 calendar days after the notice has 
                been received by the second party, either party may 
                file a complaint with the Commission.
                    ``(B) Information provided in the course of 
                negotiations.--For the purpose of any adjudication by 
                the Commission under this subsection, information 
                provided by either party to the other in negotiations 
                under subparagraph (A) shall be treated as compromise 
                and settlement negotiations for purposes of the Federal 
                Rules of Evidence.
                    ``(C) Statute of limitations.--Notwithstanding 
                subparagraph (A), no complaint may be filed with the 
                Commission under this paragraph more than 3 years after 
                the end of the quarter to which the disputed amount 
                relates, unless the 3-year period is extended by 
                written agreement between the video service provider 
                and the local government franchising authority.
                    ``(D) Procedural requirements.--The Commission 
                shall adopt rules establishing procedures for handling 
                complaints under this paragraph, which shall require 
                that--
                            ``(i) the complaint be heard by an 
                        administrative law judge;
                            ``(ii) any decision of the administrative 
                        law judge be directly reviewable by the 
                        Commission upon the request of either party;
                            ``(iii) any review by the Commission be 
                        limited to the record before the administrative 
                        law judge;
                            ``(iv) the complaint be treated as a 
                        restricted proceeding under subpart H of part 1 
                        of the Commission's regulations (47 C.F.R. part 
                        1, subpart H); and
                            ``(v) any review of the Commission's 
                        decision shall be brought as provided in 
                        section 402(a) of this Act.
    ``(g) GAAP Standards.--For purposes of this section, all financial 
determinations and computations shall be made in accordance with 
generally accepted accounting principles except as otherwise provided.
    ``(h) Definitions.--In this section:
            ``(1) Franchise fee.--The term `franchise fee'--
                    ``(A) includes any tax, fee, or assessment of any 
                kind imposed by a franchising authority or other 
                governmental entity on a video service provider or 
                subscriber, or both, solely because of their status as 
                such; but
                    ``(B) does not include--
                            ``(i) any tax, fee, or assessment of 
                        general applicability (including any such tax, 
                        fee, or assessment imposed on both utilities 
                        and video service providers or their services 
                        but not including a tax, fee, or assessment 
                        which is unduly discriminatory against video 
                        service providers or subscribers);
                            ``(ii) any fee that is required by the 
                        franchise under section 622(b);
                            ``(iii) requirements or charges incidental 
                        to the awarding or enforcing of the franchise, 
                        including payments for bonds, security funds, 
                        letters of credit, insurance, indemnification, 
                        penalties, or liquidated damages; or
                            ``(iv) any fee imposed under title 17, 
                        United States Code.
            ``(2) Gross revenue.--
                    ``(A) In general.--The term `gross revenue' means 
                all consideration of any kind or nature including cash, 
                credits, property, and in-kind contributions (services 
                or goods) received by a video service provider from the 
                provision of broadband video service within a local 
                franchise area including--
                            ``(i) all charges and fees paid by 
                        subscribers for the provision of video service, 
                        including fees attributable to video service 
                        when that service is sold individually or as 
                        part of package, bundle, or functionally 
                        integrated with services other than video 
                        service; and
                            ``(ii) revenue received by a video service 
                        provider as compensation for carriage of video 
                        programming on the provider's system.
                    ``(B) Affiliates.--The gross revenue of a video 
                service provider includes gross revenue of an affiliate 
                to the extent the exclusion of the affiliate's gross 
                revenue would have the effect of permitting the video 
                service provider to evade the payment of franchise fees 
                which would otherwise be paid by that video service 
                provider for video services provided within the local 
                franchise area of the franchising authority imposing 
                the fee.
                    ``(C) Revenue from bundled or functionally 
                integrated service.--In the case of a video service 
                that is bundled or functionally integrated with other 
                services, capabilities, or applications, the portion of 
                the video service provider's revenue attributable to 
                such other services, capabilities, or applications 
                shall be included in gross revenue unless the video 
                service provider can reasonably identify the division 
                or exclusion of such revenue from its books and records 
                kept in the regular course of business.
                    ``(D) Exclusions.--Gross revenue of a video service 
                provider (or an affiliate to the extent otherwise 
                included in the gross revenue of the video service 
                provider under subparagraph (B)) does not include--
                            ``(i) any revenue not actually received, 
                        even if billed, such as bad debts net of any 
                        recoveries of bad debts;
                            ``(ii) refunds, rebates, credits, or 
                        discounts to subscribers or a municipality to 
                        the extent not excluded under clause (i);
                            ``(iii) subject to subparagraph (C), any 
                        revenues received by a video service provider 
                        or its affiliates from the provision of 
                        services or capabilities other than video 
                        service, including--
                                    ``(I) voice, Internet access, or 
                                other broadband-enabled applications; 
                                and
                                    ``(II) services, capabilities, and 
                                applications that are sold or provided 
                                as part of a package or bundle of 
                                services or capabilities, or that are 
                                functionally integrated with video 
                                service;
                            ``(iv) any revenues received by a video 
                        service provider or its affiliates for the 
                        provision of directory or Internet advertising, 
                        including yellow pages, white pages, banner 
                        advertisement, and electronic publishing;
                            ``(v) any amounts attributable to the 
                        provision of video services to subscribers at 
                        no charge, including the provision of such 
                        services to public institutions without charge;
                            ``(vi) any revenue derived from home 
                        shopping channels;
                            ``(vii) any revenue forgone from the 
                        provision of video service at no charge to any 
                        person other than forgone revenue exchanged for 
                        trades, barters, services, or other items of 
                        value;
                            ``(viii) any tax, fee, or assessment of 
                        general applicability imposed on a subscriber, 
                        subscription, or subscription-related 
                        transaction by Federal, State, or local 
                        government that is required to be collected by 
                        the video service provider and remitted to the 
                        taxing authority, including sales taxes, use 
                        taxes, and utility user taxes;
                            ``(ix) any revenue from the sale of capital 
                        assets or surplus equipment;
                            ``(x) the reimbursement by programmers for 
                        marketing costs actually incurred by a video 
                        service provider for the introduction of new 
                        programming; or
                            ``(xi) any revenue from the sale of video 
                        services for resale to the extent that the 
                        purchaser certifies in writing that it will--
                                    ``(I) resell the service; and
                                    ``(II) pay any applicable franchise 
                                fee with respect thereto.''.

SEC. 332. RENEWAL; REVOCATION.

    Part II of title VI (47 U.S.C. 541 et seq.) is amended--
            (1) by striking section 623 and redesignating sections 624 
        and 624A as sections 623 and 624, respectively; and
            (2) by striking sections 625 and 626 and inserting the 
        following:

``SEC. 625. RENEWAL; REVOCATION.

    ``(a) Renewal.--A video service provider may submit a written 
application for renewal of its franchise to a franchising authority not 
more than 180 days before the franchise expires. Any such application 
shall be made on the standard application form promulgated by the 
Commission under section 612 and shall be treated under section 603 in 
the same manner as any other franchise application.
    ``(b) Revocation.--A franchising authority may revoke a video 
service provider's franchise to provide video services if it 
determines, after notice and an opportunity for a hearing, that the 
video service provider has willfully and repeatedly--
            ``(1) violated any Federal or State law, or any Commission 
        regulation, relating to the provision of video services in the 
        franchise area;
            ``(2) made false statements, or material omissions, in any 
        filing with the Commission relating to the provision of video 
        service in the franchise area; or
            ``(3) violated the rights-of-way management laws or 
        regulations of any franchising authority in the franchise area 
        relating to the provision of video service in the franchise 
        area.
    ``(c) Notice; Opportunity To Cure.--A franchising authority may not 
revoke a franchise unless it first provides--
            ``(1) written notice to the video service provider of the 
        alleged violation in which the revocation would be based; and
            ``(2) a reasonable opportunity to cure the violation.
    ``(d) Finality of Decision.--Any decision of a franchising 
authority to revoke a franchise under this section is final for 
purposes of appeal. A video service provider whose franchise is revoked 
by a franchising authority may avail itself of the procedures in 
section 635 of this Act.
    ``(e) Prevention of Abuse of Power.--A franchising authority may 
not use this section as a barrier to entry by a video service provider. 
If the Commission determines, in a proceeding brought by a video 
service provider to enforce this subsection, that a franchising 
authority abused the authority provided by this section in violation of 
the preceding sentence, the Commission may award reasonable attorneys' 
fees and Commission costs to the video service provider.''.

SEC. 333. PEG AND INSTITUTIONAL NETWORK OBLIGATIONS.

    Section 611 (47 U.S.C. 531) is amended to read as follows:

``SEC. 611. CHANNELS FOR PUBLIC, EDUCATIONAL, OR GOVERNMENTAL USE.

    ``(a) In General.--A video service provider that obtains a 
franchise shall provide channel capacity for public, educational, or 
governmental use that is not less than the channel capacity required of 
the video service provider with the greatest number of public, 
educational, or governmental use channels in the franchise area on the 
effective date of that franchise. If there is no other video service 
provider in the franchise area on the effective date of the franchise, 
the video service provider shall provide the amount of channel capacity 
for such use as determined by Commission rule.
    ``(b) Editorial Control.--Subject to section 623(b)(1), a video 
service provider shall not exercise any editorial control over any 
public, educational, or governmental use of channel capacity provided 
pursuant to this section, but a video service provider may refuse to 
transmit any public access program or portion of a public access 
program which contains obscenity.
    ``(c) Transmission and Production of Programming.--
            ``(1) PEG programming.--A video service provider shall 
        ensure that all subscribers receive any public, educational, or 
        governmental programming carried by the video service provider 
        within the subscriber's franchise area.
            ``(2) Production responsibility.--The production of any 
        programming provided under this subsection shall be the 
        responsibility of the franchising authority.
            ``(3) Transmission responsibility.--The video service 
        provider shall be responsible for the transmission from the 
        signal origination point (or points) of the programming, or 
        from the point of interconnection with another video service 
        provider already offering the public, educational, or 
        governmental programming under paragraph (4), to the video 
        service provider's subscribers, or any public, educational, or 
        governmental programming produced by or for the franchising 
        authority and carried by the video service provider pursuant to 
        this section.
            ``(4) Interconnection; cost-sharing.--Unless 2 video 
        service providers otherwise agree to the terms for 
        interconnection and cost sharing, such video service providers 
        shall comply with regulations prescribed by the Commission 
        providing for--
                    ``(A) the interconnection between 2 video service 
                providers in a franchise area for transmission of 
                public, educational, or governmental programming, 
                without material degradation in signal quality or 
                functionality; and
                    ``(B) the reasonable allocation of the costs of 
                such interconnection between such video service 
                providers.
            ``(5) Display of program information.--The video service 
        provider shall display the program information for public, 
        educational, or governmental programming in any print or 
        electronic program guide in the same manner in which it 
        displays program information for other video programming in the 
        franchise area. The video service provider shall not omit 
        public, educational, or governmental programming from any 
        navigational device, guide, or menu containing other video 
        programming that is available to subscribers in the franchise 
        area.''.

SEC. 334. SERVICES, FACILITIES, AND EQUIPMENT.

    Section 623 of title VI, as redesignated by section 332, is 
amended--
            (1) by striking subsections (a), (b), (c), (e), and (h) and 
        redesignating subsections (d), (f), (g), and (i) as subsections 
        (a) through (d), respectively; and
            (2) by inserting ``or wire'' after ``cable'' in subsection 
        (d), as redesignated.

SEC. 337. SHARED FACILITIES.

    Part III of title VI (47 U.S.C. 541 et seq.) is amended--
            (1) by striking section 627 and redesignating sections 628 
        (after its amendment by section 402) and 629 as sections 626 
        and 627, respectively; and
            (2) by adding at the end the following:

``SEC. 628. ACCESS TO PROGRAMMING FOR SHARED FACILITIES.

    ``(a) In General.--A video service programming vendor in which a 
video service provider has an attributable interest may not deny a 
video service provider with a franchise under this title access to 
video programming solely because that video service provider uses a 
headend for its video service system that is also used, under a shared 
ownership or leasing agreement, as the headend for another video 
service system.
    ``(b) Video Service Programming Vendor Defined.--The term `video 
service programming vendor' means a person engaged in the production, 
creation, or wholesale distribution for sale of video programming that 
is primarily intended for direct receipt by video service providers for 
retransmission to their video service subscribers.''.

SEC. 338. CONSUMER PROTECTION AND CUSTOMER SERVICE.

    Section 632 (47 U.S.C. 552) is amended to read as follows:

``SEC. 632. CONSUMER PROTECTION AND CUSTOMER SERVICE.

    ``(a) Regulations.--
            ``(1) In general.--Not later than 120 days after the date 
        of enactment of the Video Competition and Savings for Consumers 
        Act of 2006, the Commission, after receiving comments from 
        interested parties, including franchising authorities and 
        consumer representatives, shall promulgate regulations, which 
        may include penalties, with respect to customer service and 
        consumer protection requirements for video service providers.
            ``(2) Effective date of regulations.--The regulations 
        required by subsection (a) shall take effect 60 days after the 
        date on which a final rule is promulgated by the Commission.
    ``(b) State Commission Authority.--A State commission shall have 
the authority to enforce regulations promulgated under subsection (a).
    ``(c) Franchising Authority Standing.--A franchising authority 
shall have standing to file a complaint, otherwise initiate an 
enforcement proceeding, or intervene in a proceeding on behalf of 
consumers in its franchise area under the regulations promulgated under 
subsection (a).''.

SEC. 339. REDLINING.

    Part IV of title VI (47 U.S.C. 551 et seq.) is amended by adding at 
the end the following:

``SEC. 642. REDLINING.

    ``(a) In General.--A video service provider may not deny access to 
its video service to any group of potential residential video service 
subscribers because of the income, race, or religion of that group.
    ``(b) Enforcement.--This section shall be enforced by the 
Commission through a complaint-initiated adjudication process. A 
complaint may be filed by a resident of the franchising area who is 
aggrieved by a violation of subsection (a) or by a franchising 
authority on behalf of residents of its franchise area.
    ``(c) Remedies.--If the Commission determines that a video service 
provider has violated subsection (a), it--
            ``(1) shall ensure that the video service provider extends 
        access to any group denied access in violation of subsection 
        (a);
            ``(2) may assess a civil penalty in such amount as may be 
        authorized under State law for the franchising area in which 
        the violation occurred for violation of its antidiscrimination 
        laws; and
            ``(3) may revoke a video service provider's franchise to 
        provide video services if it determines, after notice and an 
        opportunity for a hearing, that the video service provider has 
        willfully and repeatedly violated this section.''.

          Subtitle C--Miscellaneous and Conforming Amendments

SEC. 351. MISCELLANEOUS AMENDMENTS.

    (a) Municipal Operators.--Section 621(f) (47 U.S.C. 541(f)) is 
amended to read as follows:
    ``(f) Municipal operators.--No provision of this title shall be 
construed to prohibit a local or municipal authority that is also, or 
is affiliated with, a franchising authority from operating as a 
multichannel video programming distributor in the franchise area, 
notwithstanding the granting of one or more franchises by the 
franchising authority.''.
    (b) Procedure.--Section 622(b) (47 U.S.C. 542(b)), as amended by 
section 331(a) of this Act, is further amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Required showing in litigation.--In any lawsuit 
        challenging the amount of the franchise fee imposed under this 
        subsection, the franchising authority shall be required to 
        demonstrate that the rate structure reflects all costs of the 
        franchise fees.''.
    (c) Sunset.--Section 626(c)(5) (47 U.S.C. 546), as redesignated by 
section 334, is amended--
            (1) by striking ``10 years after the date of enactment of 
        this section,'' and inserting ``on October 5, 2012,''; and
            (2) by striking ``last year of such 10-year period,'' and 
        inserting ``12-month period ending on that date,''.
    (d) Updating.--Section 613 is amended--
            (1) by striking ``July 1, 1984,'' in subsection (g) and 
        inserting ``the date of enactment of the Communications, 
        Consumer's Choice, and Broadband Deployment of 2006''; and
            (2) by striking subsection (a) and redesignating 
        subsections (c) through (h) as subsections (a) through (f), 
        respectively.
    (e) Repeal.--Section 617 (47 U.S.C. 537) is repealed.
    (f) Enforcement.--Section 634(i) (47 U.S.C. 554(i)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.
    (g) Restructuring Part IV.--Part IV of title VI (47 U.S.C. 551 et 
seq.) is amended--
            (1) by striking sections 635A, 636, and 637; and
            (2) by redesignating sections 638, 639, 640, 641, and 642 
        (as added by section 339 of this Act) as sections 636, 637, 
        638, 639, and 640 respectively.
    (h) Conforming Amendments for Retransmission.--
            (1) Section 325(b) (47 U.S.C. 325(b)) is amended--
                    (A) by striking ``cable system'' in paragraph (1) 
                and inserting ``video service provider''; and
                    (B) by inserting ``The term `video service 
                provider' has the meaning given it in section 602(25) 
                of this Act.'' after ``title.'' in the matter following 
                subparagraph (E) of paragraph (2).
            (2) Section 336(b) (47 U.S.C. 336(b)) is amended by 
        striking ``section 614 or 615 or be deemed a multichannel video 
        programming distributor for purposes of section 628;'' and 
        inserting ``section 614 or 615;''.

           Subtitle D--Effective Dates and Transition Rules.

SEC. 381. EFFECTIVE DATES; PHASE-IN.

    (a) In General.--
            (1) 6-month delay.--Except as provided in paragraph (2), 
        the amendments made by this Act (the Video Competition and 
        Savings for Consumers Act of 2006) shall take effect 180 days 
        after the date of enactment of this Act.
            (2) Initiation of certain proceedings.--Notwithstanding 
        paragraph (1), the Federal Communications Commission shall 
        initiate any proceeding required by title VI of the 
        Communications Act of 1934, as amended by this Act, or made 
        necessary by such amendment as soon as practicable after the 
        date of enactment of this Act.
    (b) Application to Existing Franchise Agreements.--
            (1) In general.--Except as provided in paragraph (2), the 
        provisions of title VI of the Communications Act of 1934, as 
        amended by this Act, shall not apply to a franchise agreement 
        in effect on the date of enactment of this Act between a 
        franchising authority and a video service provider before the 
        expiration date of the agreement, as determined without regard 
        to any renewal or extension of the agreement. The provisions of 
        title VI of that Act, as in effect on the day before the date 
        of enactment of this Act shall continue to apply to any such 
        franchise agreement as provided by subsection (c) until the 
        earlier of--
                    (A) the expiration date of the agreement; or
                    (B) that date on which a new franchise agreement 
                that replaces the existing franchise agreement takes 
                effect.
            (2) Competition trigger.--
                    (A) Notification of existing franchisee required.--
                If a franchising authority receives an application from 
                a video service provider to provide video service in an 
                area in which cable service is provided under an 
                existing franchise agreement, it shall notify any cable 
                operator providing cable service in that area.
                    (B) New franchise agreement supersedes existing 
                agreement.--Upon receipt of notice under subparagraph 
                (A), a cable operator may submit an application for a 
                franchise under section 603 of the Communications Act 
                of 1934, as amended by this Act. When the franchise is 
                granted--
                            (i) the terms and conditions of the new 
                        franchise agreement supersede the existing 
                        franchise agreement; and
                            (ii) the provisions of title VI of the 
                        Communications Act of 1934, as amended by this 
                        Act, shall apply.
    (c) Limited Application of Old Title VI .--
            (1) In general.--Except as provided in subsection (b) or 
        otherwise explicitly provided in new title VI, the provisions 
        of old title VI (and all regulations, rulings, waivers, orders, 
        and franchise agreements under old title VI) shall continue in 
        effect after the date of enactment of this Act with respect to 
        any cable operator to which they applied before that date until 
        the earlier of--
                    (A) the expiration date of the franchise agreement 
                under which the cable operator was operating on the 
                date of enactment of this Act; or
                    (B) that date on which a new franchise agreement 
                takes effect that replaces a cable operator's franchise 
                agreement described in subparagraph (A).
            (2) Definitions.--In this subsection:
                    (A) New title vi.--The term ``new title VI'' means 
                title VI of the Communications Act of 1934 (47 U.S.C. 
                521 et seq.) as amended by this Act.
                    (B) Old title vi.--The term ``old title VI'' means 
                title VI of the Communications Act of 1934 (47 U.S.C. 
                521 et seq.) as in effect on the day before the date of 
                enactment of this Act.

                        TITLE IV--VIDEO CONTENT

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Video Content Act''.

                       Subtitle A--Sports Freedom

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``Sports Freedom Act of 2006''.

SEC. 402. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO PROGRAMMING 
              DISTRIBUTION.

    (a) In General.--Section 628 (47 U.S.C. 548), before its 
redesignation by section 337 of this Act, is amended to read as 
follows:

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

    ``(a) Purpose.--The purpose of this section is--
            ``(1) to promote the public interest, convenience, and 
        necessity by increasing competition and diversity in the 
        multichannel video programming market;
            ``(2) to increase the availability of MVPD programming and 
        satellite broadcast programming to persons in rural and other 
        areas not currently able to receive such programming; and
            ``(3) to spur the development of communications 
        technologies.
            ``(b) Prohibition.--It is unlawful for an MVPD, an MVPD 
        programming vendor in which an MVPD has an attributable 
        interest, or a satellite broadcast programming vendor to engage 
        in unfair methods of competition or unfair or deceptive acts or 
        practices, the purpose or effect of which is to hinder 
        significantly or to prevent any MVPD from providing MVPD 
        programming or satellite broadcast programming to subscribers 
        or consumers.
    ``(c) Regulations Required.--
            ``(1) Proceeding required.--Not later than 180 days after 
        the date of enactment of the Sports Freedom Act of 2006, the 
        Commission shall prescribe regulations to specify particular 
        conduct that is prohibited by subsection (b), in order to 
        promote--
                    ``(A) the public interest, convenience, and 
                necessity by increasing competition and diversity in 
                the multichannel video programming market; and
                    ``(B) the continuing development of communications 
                technologies.
            ``(2) Minimum contents of regulation.-- The regulations 
        required under paragraph (1) shall--
                    ``(A) establish effective safeguards to prevent an 
                MVPD which has an attributable interest in an MVPD 
                programming vendor or a satellite broadcast programming 
                vendor from unduly or improperly influencing the 
                decision of such vendor to sell, or the prices, terms, 
                and conditions of sale of, MVPD programming or 
                satellite broadcast programming to any unaffiliated 
                MVPD;
                    ``(B) prohibit discrimination by an MVPD 
                programming vendor in which an MVPD has an attributable 
                interest or by a satellite broadcast programming vendor 
                in the prices, terms, and conditions of sale or 
                delivery of MVPD programming or satellite broadcast 
                programming among or between cable systems, cable 
                operators, or other MVPDs, or their agents or buying 
                groups, except that an MVPD programming vendor in which 
                an MVPD has an attributable interest or such a 
                satellite broadcast programming vendor shall not be 
                prohibited from--
                            ``(i) imposing reasonable requirements 
                        for--
                                    ``(I) creditworthiness;
                                    ``(II) offering of service; and
                                    ``(III) financial stability and 
                                standards regarding character and 
                                technical quality;
                            ``(ii) establishing different prices, 
                        terms, and conditions to take into account 
                        actual and reasonable differences in the cost 
                        of creation, sale, delivery, or transmission of 
                        MVPD programming or satellite broadcast 
                        programming;
                            ``(iii) establishing different prices, 
                        terms, and conditions which take into account 
                        economies of scale, cost savings, or other 
                        direct and legitimate economic benefits 
                        reasonably attributable to the number of 
                        subscribers served by the distributor; or
                            ``(iv) entering into an exclusive contract 
                        that is permitted under subparagraph (D);
                    ``(C) prohibit practices, understandings, 
                arrangements, and activities, including exclusive 
                contracts for MVPD programming or satellite broadcast 
                programming between an MVPD and an MVPD programming 
                vendor or satellite broadcast programming vendor, that 
                prevent an MVPD from obtaining such programming from 
                any MVPD programming vendor in which an MVPD has an 
                attributable interest or any satellite broadcast 
                programming vendor in which an MVPD has an attributable 
                interest for distribution to persons in areas not 
                served by an MVPD as of the date of enactment of the 
                Sports Freedom Act of 2006; and
                    ``(D) with respect to distribution to persons in 
                areas served by an MVPD, prohibit exclusive contracts 
                for MVPD programming or satellite broadcast programming 
                between an MVPD and an MVPD programming vendor in which 
                an MVPD has an attributable interest or a satellite 
                broadcast programming vendor in which an MVPD has an 
                attributable interest, unless the Commission determines 
                (in accordance with paragraph (4)) that such contract 
                is in the public interest.
            ``(3) Preemption and rescheduling of children's programs.--
        Nothing in this section shall be construed in a manner that 
        limits the discretion of a licensee of a local television 
        broadcast station to preempt or to reschedule programming 
        specifically designed to serve educational and informational 
        needs of children in order to air timely coverage of news or 
        sporting events.
            ``(4) Limitations.--
                    ``(A) Geographic limitations.--Nothing in this 
                section shall require any person who is engaged in the 
                national or regional distribution of video programming 
                to make such programming available in any geographic 
                area beyond which such programming has been authorized 
                or licensed for distribution.
                    ``(B) Applicability to satellite retransmissions.--
                Nothing in this section shall apply--
                            ``(i) to the signal of any broadcast 
                        affiliate of a national television network or 
                        other television signal that is retransmitted 
                        by satellite but that is not satellite 
                        broadcast programming; or
                            ``(ii) to any internal satellite 
                        communication of any broadcast network or cable 
                        network that is not satellite broadcast 
                        programming.
                    ``(C) Exclusion of individual video programs.--
                Nothing in this section shall apply to a specific 
                individual video program produced by an MVPD for local 
                distribution by that MVPD and not made available 
                directly or indirectly to unaffiliated MVPDs, if--
                            ``(i) all other video programming carried 
                        on a programming channel or network on which 
                        the individual video program is carried, is 
                        made available to unaffiliated MVPDs pursuant 
                        to paragraph (2)(D); and
                            ``(ii) such specific individual video 
                        program is not the transmission of a sporting 
                        event.
                    ``(D) MVPD sports programming.--The prohibition set 
                forth in paragraph (2)(D), and the rules adopted by the 
                Commission pursuant to that paragraph, shall apply to 
                any MVPD programming that includes the transmission of 
                live sporting events, irrespective of whether an MVPD 
                has an attributable interest in the MVPD programming 
                vendor engaged in the production, creation, or 
                wholesale distribution of such MVPD programming.
            ``(5) Public interest determinations on exclusive 
        contacts.--In determining whether an exclusive contract is in 
        the public interest for purposes of paragraph (2)(D), the 
        Commission shall consider with respect to the effect of such 
        contract on the distribution of video programming in areas that 
        are served by an MVPD--
                    ``(A) the effect of such exclusive contract on the 
                development of competition in local and national 
                multichannel video programming distribution markets;
                    ``(B) the effect of such exclusive contract on 
                competition from multichannel video programming 
                distribution technologies other than cable;
                    ``(C) the effect of such exclusive contract on the 
                attraction of capital investment in the production and 
                distribution of new MVPD programming;
                    ``(D) the effect of such exclusive contract on 
                diversity of programming in the multichannel video 
                programming distribution market; and
                    ``(E) the duration of the exclusive contract.
            ``(6) Sunset provision.--The prohibition required by 
        paragraph (2)(D) shall cease to be effective 10 years after the 
        date of enactment of the Sports Freedom Act of 2006, unless the 
        Commission finds, in a proceeding conducted during the last 
        year of such 10-year period, that such prohibition continues to 
        be necessary to preserve and protect competition and diversity 
        in the distribution of video programming.
    ``(d) Adjudicatory Proceeding.--
            ``(1) In general.--An MVPD aggrieved by conduct that it 
        alleges constitutes a violation of subsection (b), or the 
        regulations of the Commission under subsection (c), may 
        commence an adjudicatory proceeding at the Commission.
            ``(2) Request for production of agreements.--In any 
        proceeding commenced under paragraph (1), the Commission shall 
        request from a party, and the party shall produce, such 
        agreements between the party and a third party relating to the 
        distribution of MVPD programming that the Commission believes 
        to be relevant to its decision regarding the matters at issue 
        in such adjudicatory proceeding.
            ``(3) Confidentiality to be maintained.--The production of 
        any agreement under paragraph (2) and its use in a Commission 
        decision in the adjudicatory proceeding under paragraph (1) 
        shall be subject to such provisions ensuring confidentiality as 
        the Commission may by regulation determine.
    ``(e) Remedies for Violations.--
            ``(1) Remedies authorized.--Upon completion of an 
        adjudicatory proceeding under subsection (d), the Commission 
        shall have the power to order appropriate remedies, including, 
        if necessary, the power to establish prices, terms, and 
        conditions of sale of programming to an aggrieved MVPD.
            ``(2) Additional remedies.--The remedies provided under 
        paragraph (1) are in addition to any remedy available to an 
        MVPD under title V or any other provision of this Act.
    ``(f) Procedures.--
            ``(1) In general.--The Commission shall prescribe 
        regulations to implement this section.
            ``(2) Content of regulations.--The regulations required 
        under paragraph (1) shall--
                    ``(A) provide for an expedited review of any 
                complaints made pursuant to this section, including the 
                issuance of a final order terminating such review not 
                later than 120 days after the date on which the 
                complaint was filed;
                    ``(B) establish procedures for the Commission to 
                collect such data as the Commission requires to carry 
                out this section, including the right to obtain copies 
                of all contracts and documents reflecting arrangements 
                and understandings alleged to violate this section; and
                    ``(C) provide for penalties to be assessed against 
                any person filing a frivolous complaint pursuant to 
                this section.
    ``(g) Reports.--The Commission shall, beginning not later than 18 
months after promulgation of the regulations required by subsection 
(c), annually report to Congress on the status of competition in the 
market for the delivery of video programming.
    ``(h) Exemptions for Prior Contracts.--
            ``(1) In general.--Nothing in this section shall affect--
                    ``(A) any contract that grants exclusive 
                distribution rights to any person with respect to 
                satellite cable programming and that was entered into 
                on or before June 1, 1990; or
                    ``(B) any contract that grants exclusive 
                distribution rights to any person with respect to MVPD 
                programming that is not satellite cable programming and 
                that was entered into on or before July 1, 2003, except 
                that the provisions of subsection (c)(2)(C) shall apply 
                for distribution to persons in areas not served by an 
                MVPD.
            ``(2) Limitation on renewals.--
                    ``(A) Satellite cable programming contracts.--A 
                contract pertaining to satellite cable programming or 
                satellite broadcast programming that was entered into 
                on or before June 1, 1990, but that is renewed or 
                extended after the date of enactment of the Sports 
                Freedom Act of 2006 shall not be exempt under paragraph 
                (1).
                    ``(B) MVPD programming contracts.-- A contract 
                pertaining to MVPD programming that is not satellite 
                cable programming that was entered into on or before 
                July 1, 2003, but that is renewed or extended after the 
                date of enactment of the Sports Freedom Act of 2006 
                shall not be exempt under paragraph (1).
    ``(i) Definitions.--In this section:
            ``(1) MVPD.--The term ``MVPD'' means multichannel video 
        programming distributor.
            ``(2) MVPD programming.--The term ``MVPD programming'' 
        includes the following:
                    ``(A) Direct receipt.--Video programming primarily 
                intended for the direct receipt by MVPDs for their 
                retransmission to MVPD subscribers (including any 
                ancillary data transmission).
                    ``(B) Additional programming.--
                            ``(i) In general.--Additional types of 
                        programming content that the Commission 
                        determines in a rulemaking proceeding to be 
                        completed not later than 120 days from the date 
                        of enactment of the Sports Freedom Act of 2006, 
                        as of the time of such rulemaking, of a type 
                        that is--
                                    ``(I) primarily intended for the 
                                direct receipt by MVPDs for their 
                                retransmission to MVPD subscribers, 
                                regardless of whether such programming 
                                content is--
                                            ``(aa) digital or analog;
                                            ``(bb) compressed or 
                                        uncompressed;
                                            ``(cc) encrypted or 
                                        unencrypted; or
                                            ``(dd) provided on a 
                                        serial, pay-per-view, or on 
                                        demand basis; and
                                    ``(II) without regard to the end 
                                user device used to access such 
                                programming or the mode of delivery of 
                                such programming content to MVPDs.
                            ``(ii) Considerations.--In making the 
                        determination under clause (i), the Commission 
                        shall consider the effect of technologies and 
                        services that combine different forms of 
                        content so that certain content or programming 
                        is not included within the meaning of MVPD 
                        programming solely because it is integrated 
                        with other content that is of a type that is 
                        primarily intended for the direct receipt by 
                        MVPDs for their retransmission to MVPD 
                        subscribers.
                            ``(iii) Modification of programming defined 
                        as mvpd programming.-- At any time after 3 
                        years following the conclusion of the 
                        rulemaking proceeding required under clause 
                        (ii), any interested MVPD or MVPD programming 
                        vendor may petition the Commission to modify 
                        the types of additional programming content 
                        included by the Commission within the 
                        definition of MVPD programming in light of--
                                    ``(I) the purpose of this section;
                                    ``(II) market conditions at the 
                                time of such petition; and
                                    ``(III) the factors to be 
                                considered by the Commission under 
                                clause (ii).
            ``(3) MVPD programming vendor.--The term `MVPD programming 
        vendor'--
                    ``(A) means a person engaged in the production, 
                creation, or wholesale distribution for sale of MVPD 
                programming; and
                    ``(B) does not include a satellite broadcast 
                programming vendor.
            ``(4) Satellite broadcast programming.-- The term 
        `satellite broadcast programming' means broadcast video 
        programming when--
                    ``(A) such programming is retransmitted by 
                satellite; and
                    ``(B) the entity retransmitting such programming is 
                not the broadcaster or an entity performing such 
                retransmission on behalf of and with the specific 
                consent of the broadcaster.
            ``(5) Satellite broadcast programming vendor.--The term 
        `satellite broadcast programming vendor' means a fixed service 
        satellite carrier that provides satellite broadcast 
        programming.
            ``(6) Satellite cable programming.--The term `satellite 
        cable programming' has the same meaning as in section 705, 
        except that such term does not include satellite broadcast 
        programming.
            ``(7) Satellite cable programming vendor.--The term 
        `satellite cable programming vendor'--
                    ``(A) means a person engaged in the production, 
                creation, or wholesale distribution for sale of 
                satellite cable programming; but
                    ``(B) does not include a satellite broadcast 
                programming vendor.
    ``(j) Common carriers.--
            ``(1) In general.--Any provision that applies to an MVPD 
        under this section shall apply to a common carrier or its 
        affiliate that provides video programming by any means directly 
        to subscribers.
            ``(2) Attributable interest.--Any provision that applies to 
        an MVPD programming vendor in which an MVPD has an attributable 
        interest shall apply to any MVPD programming vendor in which 
        such common carrier has an attributable interest.
            ``(3) Limitation.--For the purposes of this subsection, 2 
        or fewer common officers or directors shall not by itself 
        establish an attributable interest by a common carrier in an 
        MVPD programming vendor (or its parent company).''.
    (b) Effective Date.--Notwithstanding section 381 of this Act, the 
amendment made by subsection (a) shall take effect on the date of 
enactment of this Act.

SEC. 403. REGULATIONS.

    Not later than 120 days after the date of enactment of this Act, 
the Commission shall prescribe such regulations as may be necessary to 
implement section 628 of the Communications Act of 1934 (47 U.S.C. 548) 
as amended by section 402(a).

                     Subtitle B--National Satellite

SEC. 431. AVAILABILITY OF CERTAIN LICENSED SERVICES IN NONCONTIGUOUS 
              STATES.

    Notwithstanding any other provision of law, before the Federal 
Communications Commission grants a license under the Communications Act 
of 1934 (47 U.S.C. 151 et seq.) to a satellite carrier (as defined in 
section 338(k)(5) of that Act (47 U.S.C. 338(k)(5))), it shall ensure 
that, to the greatest extent technically feasible, if the license is 
granted the service provided by that carrier pursuant to the license 
will be available to subscribers in the noncontiguous States to the 
same extent as that service is available to subscribers in the 
contiguous States.

                    Subtitle C--Video and Audio Flag

SEC. 451. SHORT TITLE.

    This subtitle may be cited as the ``Digital Content Protection Act 
of 2006''.

SEC. 452. DIGITAL VIDEO BROADCASTING.

    Part I of title III (47 U.S.C. 301 et seq.) is amended by adding at 
the end the following:

``SEC. 342. PROTECTION OF DIGITAL VIDEO BROADCASTING CONTENT.

    ``(a) In General.--Within 30 days after the date of enactment of 
the Digital Content Protection Act of 2006, the Commission shall 
initiate, and within 6 months after that date conclude, a proceeding--
            ``(1) to implement its Report and Order in the matter of 
        Digital Broadcast Content Protection, FCC 03-273 and its Report 
        and Order in the matter of Digital Output Protection Technology 
        and Recording Method Certifications, FCC 04-193; and
            ``(2) to modify, if necessary, such Reports and Orders to 
        meet the requirements of subsection (b) of this section.
    ``(b) Requirements.--In the regulations promulgated under this 
section, the Commission shall permit transmission of--
            ``(1) short excerpts of broadcast digital television 
        content over the Internet; and
            ``(2) broadcast digital television content over a home 
        network or other localized network accessible to a limited 
        number of devices connected to such network; or
                    ``(C) broadcast digital television content over the 
                Internet for distance learning purposes;
            ``(2) permit government bodies or accredited nonprofit 
        educational institutions to use copyrighted work in distance 
        education courses pursuant to the Technology, Education, and 
        Copyright Harmonization Act of 2002 and the amendments made by 
        that Act;
            ``(3) permit the redistribution of news and public affairs 
        programming (not including sports) in which the primary 
        commercial value depends on timeliness as determined by the 
        broadcaster or broadcasting network; and
            ``(4) require that any authorized redistribution control 
        technology and any authorized recording method technology 
        approved by the Commission under this Section that is publicly 
        offered to licensees, be licensed on reasonable and 
        nondiscriminatory terms and conditions.
    ``(c) Review of Determinations.--The Commission may review any such 
determination described in subsection (b)(3) by a broadcaster or 
broadcasting network if the Commission receives a bona fide complaint 
alleging, or otherwise has reason to believe, that the determination is 
inconsistent with the requirements of that subsection or the 
regulations promulgated thereunder.
    ``(d) Effective Date of Regulations.--Regulations promulgated under 
this section shall take effect 12 months after the date on which the 
Commission issues a final rule under this section.''.

SEC. 453. DIGITAL AUDIO BROADCASTING.

    Part I of title III (47 U.S.C. 301 et seq.), as amended by section 
452, is further amended by adding at the end the following:

``SEC. 343. PROTECTION OF DIGITAL AUDIO BROADCASTING CONTENT.

    ``(a) In General.--Subject to section 454(d)(2) of the Digital 
Content Protection Act of 2006, the Commission may promulgate 
regulations governing the indiscriminate redistribution of audio 
content with respect to--
            ``(1) digital radio broadcasts;
            ``(2) satellite digital radio transmissions; and
            ``(3) digital radios.
    ``(b) Monitoring Organizations.--The Commission shall ensure that a 
performing rights society or a mechanical rights organization, or any 
entity acting on behalf of such a society or organization, is granted a 
license for free or for a de minimis fee to cover only the reasonable 
costs to the licensor of providing the license, and on reasonable, 
nondiscriminatory terms and conditions, to access and retransmit as 
necessary any content contained in such transmissions protected by 
content protection or similar technologies, if such licenses are for 
purposes of carrying out the activities of such society, organization, 
or entity in monitoring the public performance or other uses of 
copyrighted works, and such society, organization, or entity employs 
reasonable methods to protect any such content accessed from further 
distribution.''.

SEC. 454. DIGITAL AUDIO REVIEW BOARD.

    (a) Establishment.--The Federal Communications Commission shall 
establish an advisory committee, to be known as the Digital Audio 
Review Board.
    (b) Membership.--Members of the Board shall be appointed by the 
chairman of the Commission and shall include representatives nominated 
by--
            (1) the information technology industry;
            (2) the software industry;
            (3) the consumer electronics industry;
            (4) the radio broadcasting industry;
            (5) the satellite radio broadcasting industry;
            (6) the cable industry;
            (7) the audio recording industry;
            (8) the music publishing industry;
            (9) performing rights societies, including--
                    (A) the American Society of Composers, Authors and 
                Publishers;
                    (B) Broadcast Music, Inc.; and
                    (C) SESAC, Inc.;
            (10) public interest organizations;
            (11) organizations representing recording artists, 
        performers and musicians; and
            (12) any other group that the Commission determines will be 
        directly affected by adoption of broadcast flag technology 
        regulations.
    (c) Duty.--
            (1) In general.--Within 1 year after the date of enactment 
        of this Act, the Board shall submit to the Commission a 
        proposed regulation under section 343 of the Communications Act 
        of 1934 (47 U.S.C. 343) that--
                    (A) represents a consensus of the members of the 
                Board; and
                    (B) are consistent with fair use principles.
            (2) Extension of 1-year period.--The Commission may extend, 
        for good cause shown, the 1-year period described in paragraph 
        (1) for a period of not more than 6 months, if the Commission 
        determines that--
                    (A) substantial progress has been made by the Board 
                toward the development of a proposed regulation;
                    (B) the members of the Board are continuing to 
                negotiate in good faith; and
                    (C) there is a reasonable expectation that the 
                Board will draft and submit a proposed regulation 
                before the expiration of the extended period of time.
    (d) Commission Treatment of Proposed Regulation.--
            (1) Draft regulation.--Within 30 days after the Commission 
        receives a proposed regulation from the Board under this 
        section the Commission shall initiate a rulemaking proceeding 
        to implement the proposed regulation.
            (2) Deference; deadline.--If the Board submits a proposed 
        regulation under this section the Commission, in promulgating a 
        regulation under section 343 of the Communications Act of 1934, 
        shall--
                    (A) give substantial deference to the proposed 
                regulation submitted by the Board; and
                    (B) issue a final rule not later than 6 months 
                after the date on which the proceeding was initiated.
            (3) Commission action if no board action.--If the Board 
        does not submit a proposed regulation to the Commission within 
        1 year after the date of enactment of this Act, plus any 
        extension granted by the Commission under subsection (c), the 
        Commission may not promulgate regulations under section 343 of 
        the Communications Act of 1934, but shall submit 
        recommendations to the Senate Committee on Commerce, Science, 
        and Transportation and the House Committee on Energy and 
        Commerce.
    (e) Administrative Provisions.--
            (1) Meetings.--The Board shall meet at the call of the 
        Chairman of the Commission.
            (2) Executive director.--The Chairman of the Commission 
        may, without regard to civil service laws and regulations, 
        appoint and terminate an Executive Director and such other 
        additional personnel as may be necessary to enable the Board to 
        perform its duties. The Executive Director shall be compensated 
        at a rate not to exceed the rate of pay payable for level V of 
        the Executive Schedule under section 5316 of title 5, United 
        States Code.
            (3) Temporary and intermittent services.--In carrying out 
        its duty, the Board may procure temporary and intermittent 
        services of consultants and experts under section 3109(b) of 
        title 5, United States Code, at rates for individuals which do 
        not exceed the daily equivalent of the annual rate of basic pay 
        prescribed for level V of the Executive Schedule under section 
        5316 of such title.
            (4) Detail of government employees.--Upon request of the 
        Board, the head of any Federal agency may detail any Federal 
        Government employee to the Board without reimbursement, and 
        such detail shall be without interruption or loss of civil 
        service status or privilege.
            (5) Administrative support.--Notwithstanding section 7(c) 
        of the Federal Advisory Committee Act (5 U.S.C. App.), the 
        Commission shall provide the Board with such administrative and 
        supportive services as are necessary to ensure that the Board 
        can carry out its functions.
            (6) Termination.--The Board shall terminate on the date on 
        which it submits a proposed regulation to the Commission or at 
        the discretion of the Chairman of the Federal Communications 
        Commission.

                      TITLE V--MUNICIPAL BROADBAND

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Community Broadband Act''.

SEC. 502. STATE REGULATION OF MUNICIPAL BROADBAND NETWORKS.

    Section 706 of the Telecommunications Act of 1996 (47 U.S.C. 157 
note) is amended--
            (1) by redesignating subsection (c) as subsection (h);
            (2) by inserting after subsection (b) the following:
    ``(c) Local Government Provision of Advanced Communications 
Capability and Services.--No State or local government statute, 
regulation, or other State or local government legal requirement may 
prohibit or have the effect of prohibiting any public provider from 
providing, to any person or any public or private entity, advanced 
communications capability or any service that utilizes the advanced 
communications capability provided by such provider.
    ``(d) Safeguards.--
            ``(1) Antidiscrimination.--To the extent any public 
        provider regulates competing providers of advanced 
        communications capability, it shall apply its ordinances and 
        rules and policies, including those relating to the use of 
        public rights-of-way, permitting, performance bonding and 
        reporting, without discrimination in favor of itself or any 
        advanced communications capability provider that it owns or is 
        affiliated with, as compared to other providers of such 
        capability or services.
            ``(2) Application of general laws.--A public provider may 
        not provide advanced communications capability to the public 
        unless the provision of such capability by that public provider 
        is subject to the same laws and regulations that would apply if 
        the advanced communications capability were being provided by a 
        nongovernmental entity.
            ``(3) Open access to non-governmental entities.--If a 
        public provider initiates a project to provide advanced 
        communications capability to the public, it shall grant to a 
        requesting non-governmental entity the right to place similar 
        facilities in the same conduit, trenches, and locations as the 
        public provider for concurrent or future use under the same 
        conditions as the public provider. A public provider may limit, 
        or refuse to grant, such a right to a requesting non-
        governmental entity with respect to any such conduit, trench, 
        or location for public safety reasons.
            ``(4) Enforcement.--Paragraphs (1), (2), and (3) preempt 
        any State or local law, regulation, rule, or practice that is 
        inconsistent with the requirements of those paragraphs. If the 
        Commission determines, after notice and an opportunity for a 
        hearing, that a State or local government is engaging in any 
        act or practice that violates paragraph (1), (2), or (3), the 
        Commission shall take such action as may be necessary to enjoin 
        or restrain the State or local government from engaging in that 
        act or practice.
    ``(e) Public-Private Partnerships Encouraged.--If a public provider 
initiates a project to provide advanced communications capability to 
the public through a public-private partnership, the public provider 
shall publish a request for proposals in a publication of general 
circulation in the community in which the project is to be implemented 
and solicit bids through an open bid process.
    ``(f) Protection Against Undue Government Competition With Private 
Sector.--
            ``(1) Notice and opportunity to bid required.--If a public 
        provider decides not to initiate a project to provide advanced 
        communications capability to the public through a public-
        private partnership, then, before the public provider may 
        provide advanced communications capability to the public, it 
        shall--
                    ``(A) publish notice of its intention in media 
                generally available to the public in the area in which 
                it intends to provide such capability; and
                    ``(B) provide an opportunity for commercial 
                enterprises to bid for the rights to provide such 
                capability during the 30-day period following 
                publication of the notice.
            ``(2) Notice requirements.--The public provider shall 
        include in the notice required by paragraph (1) a description 
        of the proposed scope of the advanced communications capability 
        to be provided, including--
                    ``(A) the services to be provided (including 
                network capabilities);
                    ``(B) the coverage area;
                    ``(C) service tiers and pricing; and
                    ``(D) any proposal for providing advanced 
                communications capability to low-income areas, or other 
                demographically or geographically defined areas, that 
                are not the same as the terms, service, pricing, or 
                tiers applicable in other portions of the coverage 
                area.
            ``(3) Private sector right of first refusal.--The public 
        provider may proceed with the project only if, during the 30-
        day period, no private sector entity submits a bid to provide 
        equivalent advanced communications capability of the same scope 
        for the same or lower cost to consumers, as determined by a 
        neutral third party, and demonstrates the requisite technical 
        and financial ability to provide that capability. The neutral 
        third party shall be selected by the public provider, and the 
        private sector entity shall bear the costs of using a neutral 
        third party.
            ``(4) Application to existing arrangements and pending 
        proposals.--This subsection does not apply to--
                    ``(A) any contract or other arrangement under which 
                a public provider is providing advanced communications 
                capability to the public as of April 20, 2006; or
                    ``(B) any public provider proposal to provide 
                advanced communications capability to the public that, 
                as of April 20, 2006--
                            ``(i) is in the request-for-proposals 
                        process;
                            ``(ii) is in the process of being built; or
                            ``(iii) has been approved by referendum but 
                        is the subject of a lawsuit brought before 
                        March 1, 2006.
    ``(g) Public Safety Exemption.--Subsections (d), (e), and (f) of 
this section do not apply when a public provider provides advanced 
communications capabilities other than to the public or to such classes 
of users as effectively to be available to the public.'';
            (3) by adding at the end of subsection (h), as 
        redesignated, the following:
            ``(3) Public provider.--The term `public provider' means a 
        State or political subdivision thereof, any agency, authority, 
        or instrumentality of a State or political subdivision thereof, 
        or an Indian tribe (as defined in section 4(e) of the Indian 
        Self-Determination and Education Assistance Act (25 U.S.C. 
        450b(e)), or any entity that is owned, controlled, or otherwise 
        affiliated with a State, political subdivision thereof, agency, 
        authority, or instrumentality, or Indian tribe.''; and
            (4) by striking ``capability.--'' in paragraph (1) of 
        subsection (h), as redesignated, and inserting ``capability; 
        advanced communications capability.--'';
            (5) by striking ``is defined'' in paragraph (2) of 
        subsection (h), as redesignated, and inserting ``and `advanced 
        communications capability' mean''; and
            (6) by striking ``as'' in that paragraph.

                 TITLE VI--WIRELESS INNOVATION NETWORKS

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Wireless Innovation Act of 2006'' 
or the ``WIN Act of 2006''.

SEC. 602. ELIGIBLE TELEVISION SPECTRUM MADE AVAILABLE FOR WIRELESS USE.

    Part I of title III (47 U.S.C. 301 et seq.), as amended by section 
453 of this Act, is further amended by adding at the end the following:

``SEC. 344. ELIGIBLE BROADCAST TELEVISION SPECTRUM MADE AVAILABLE FOR 
              WIRELESS USE.

    ``(a) In General.--Effective 270 days after the date of enactment 
of the WIN Act of 2006, a certified unlicensed device may use eligible 
broadcast television frequencies in a manner that protects licensees 
from harmful interference.
    ``(b) Commission To Facilitate Use.--Within 270 days after the date 
of enactment of that Act, the Commission shall adopt minimal technical 
and device rules in ET Docket No. 04-186 to facilitate the efficient 
use of eligible broadcast television frequencies by certified 
unlicensed devices, which shall include rules and procedures--
            ``(1) to protect licensees from harmful interference from 
        certified unlicensed devices;
            ``(2) to require certification of unlicensed devices 
        designed to be operated in the eligible broadcast television 
        frequencies which shall include testing in a laboratory 
        certified by the Commission that demonstrates (A) compliance 
        with the requirements set forth pursuant to this paragraph and 
        (B) that such compliance effectively protects licensees from 
        harmful interference;
            ``(3) to require manufacturers of such devices to include a 
        means of disabling or modifying the device remotely if the 
        Commission determines that certain certified unlicensed devices 
        may cause harmful interference to licensees;
            ``(4) to address immediately any complaints from licensees 
        that a certified unlicensed device causes harmful interference 
        including verification, in the field, of actual harmful 
        interference; and
            ``(5) to limit the operation or use of certified unlicensed 
        devices within any geographic area in which a public safety 
        entity is authorized to operate as a primary licensee within 
        the eligible broadcast television frequencies.
    ``(c) Definitions.--In this section:
            ``(1) Certified unlicensed device.--The term `certified 
        unlicensed device' means a device certified under subsection 
        (b)(2).
            ``(2) Eligible broadcast television frequencies.--The term 
        `eligible broadcast television frequencies' means the following 
        frequencies:
                    ``(A) All frequencies between 54 and 72 megaHertz, 
                inclusive.
                    ``(B) All frequencies between 76 and 88 megaHertz, 
                inclusive.
                    ``(C) All frequencies between 174 and 216 
                megaHertz, inclusive.
                    ``(D) All frequencies between 470 and 608 
                megaHertz, inclusive.
                    ``(E) All frequencies between 616 and 698 
                megaHertz, inclusive.
            ``(3) Licensee.--The term `licensee' means a licensee, as 
        defined in section 3(24), that holds a license to operate in 
        the eligible broadcast television frequencies and is operating 
        in such frequencies in a manner that is not inconsistent with 
        its license.''.

                     TITLE VII--DIGITAL TELEVISION

SEC. 701. ANALOG AND DIGITAL TELEVISION SETS AND CONVERTER BOXES; 
              CONSUMER EDUCATION AND REQUIREMENTS TO REDUCE THE 
              GOVERNMENT COST OF THE CONVERTER BOX PROGRAM.

    (a) Consumer Education Requirements.--Section 330 (47 U.S.C. 330) 
is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Consumer Education Requirements Regarding Analog Receivers.--
            ``(1) Requirements for manufacturers.--The manufacturer of 
        any analog television set manufactured in the United States or 
        shipped in interstate commerce shall--
                    ``(A) place the appropriate removable label 
                described in paragraph (4) on the screen of such 
                television set; and
                    ``(B) display the consumer information required by 
                paragraph (5) on the outside of the retail packaging of 
                the television set--
                            ``(i) in a clear and conspicuous manner; 
                        and
                            ``(ii) in a manner that cannot be removed.
            ``(2) Requirements for in-store retailers.--Not later than 
        60 days after the conclusion of the rulemaking proceeding 
        required under paragraph (5), each in-store retailer shall 
        place adjacent to television sets that such retailer displays 
        for sale or rent, a separate sign containing the consumer 
        information required by paragraph (5).
            ``(3) Requirements for other retailers.--Not later than 60 
        days after the conclusion of the rulemaking proceeding required 
        under paragraph (5), any retailer of television sets described 
        in paragraph (2) that sells such television sets via direct 
        mail, catalog, or electronic means, shall include in all 
        advertisements or descriptions of such television set the 
        product and the information described in paragraph (4).
            ``(4) Product and digital television transition 
        information.--The following product and digital television 
        transition information shall be displayed as a label on analog 
        television sets, in both English and Spanish:

                            `CONSUMER ALERT

          `This TV only has an ``analog'' broadcast tuner and 
        will require a converter box after February 17, 2009 to 
        receive over-the-air broadcasts with an antenna because 
        of the Nation's transition to digital broadcasting on 
        that date as required by Federal law. It should 
        continue to work as before with cable and satellite TV 
        services, gaming consoles, VCRs, DVD players, and 
        similar products.'.
            ``(5) Consumer information.--The consumer information 
        required by this paragraph shall--
                    ``(A) be developed by the Commission in a 
                rulemaking proceeding concluded not later than 60 days 
                after the date of enactment of the Communications, 
                Consumer's Choice, and Broadband Deployment of 2006;
                    ``(B) clearly explain--
                            ``(i) what the digital transition is;
                            ``(ii) how it serves the public interest;
                            ``(iii) how it will benefit public safety 
                        and improve wireless services;
                            ``(iv) how it may affect television 
                        viewers, including--
                                    ``(I) the deadline for termination 
                                of analog television broadcasting;
                                    ``(II) the options consumers have 
                                after such termination to continue to 
                                receive broadcast programming;
                                    ``(III) the information that 
                                analog-only television sets will 
                                continue to work as before with cable 
                                and satellite television systems, 
                                gaming consoles, VCRs, DVD players and 
                                recorders, camcorders, and similar 
                                products; and
                                    ``(IV) the capabilities of 
                                television sets, including digital 
                                sets;
                            ``(v) how the transition will affect 
                        subscribers of multichannel video programming 
                        distributors (as defined in section 602); and
                            ``(vi) that consumers who have analog-only 
                        television sets will need a converter box in 
                        order to receive over-the-air broadcast 
                        programming; and
                    ``(C) include any additional information the 
                Commission deems appropriate with respect to any 
                television set.
            ``(6) Commission outreach.--
                    ``(A) In general.--Beginning within 1 month after 
                the date of enactment of the Communications, Consumer's 
                Choice, and Broadband Deployment of 2006, the 
                Commission shall engage in a public outreach program to 
                educate consumers about the digital television 
                transition, including the consumer information 
                described in paragraph (5).
                    ``(B) Website.--The Commission shall maintain and 
                publicize a website, or an easily accessible page on 
                its website, containing such consumer information as 
                well as any links to other websites the Commission 
                determines to be appropriate.
            ``(7) Public service announcements.--Each day from July 17, 
        2009, through February 17, 2009, each television broadcast 
        licensee or permittee shall broadcast 2 30-second public 
        service announcements at such times as the Commission may 
        require notifying the public of the digital transition and 
        containing the address of the website provided by the 
        Commission under paragraph (6) and such additional consumer 
        information as the Commission may require, including the 
        consumer information described in paragraph (5).
            ``(8) Penalty.--In addition to any other civil or criminal 
        penalty provided by law, the Commission shall issue civil 
        forfeitures for violations of the requirements of this 
        subsection in an amount equal to not more than 3 times the 
        amount of the forfeiture penalty established by section 
        503(a)(2)(A).
            ``(9) Sunset.--The requirements of this subsection shall 
        cease to apply to manufacturers and retailers on April 1, 2009, 
        unless the Commission determines that the information required 
        to be displayed under this subsection should continue to be 
        displayed in the public interest.''.
    (b) DTV Working Group on Consumer Education, Outreach, and 
Technical Assistance.--
            (1) In general.--Within 60 days after the date of enactment 
        of this Act, the Federal Communications Commission shall 
        establish an advisory committee, to be known as the DTV Working 
        Group, to consult with State and local governments, providers 
        of low income assistance programs, educational institutions, 
        and community groups to promote consumer outreach and to 
        provide logistical assistance to consumers, including converter 
        box delivery and installation.
            (2) Membership.--The Commission shall appoint to the DTV 
        Working Group representatives of groups involved with the 
        transition to digital television, including the Commission, the 
        National Telecommunications and Information Administration, 
        other Federal agencies, television broadcasters, multichannel 
        video programming distributors, consumer electronics 
        manufacturers and manufacturers of peripheral devices, 
        broadcast antenna and tuner manufacturers, retail providers of 
        consumer electronics equipment, consumers, and public interest 
        groups (including the American Association of Retired Persons). 
        Members of the DTV Working Group shall serve without 
        compensation and shall not be considered Federal employees by 
        reason of their service on the advisory committee.
            (3) Purposes.--The purposes of the DTV Working Group are--
                    (A) to advise the Commission in creating and 
                implementing a national plan to inform consumers about 
                the digital television transition as required by 
                section 330(d)(6) of the Communications Act of 1934 (47 
                U.S.C. 330(d)(6));
                    (B) to ensure that the Commission's national plan 
                includes, at a minimum--
                            (i) recommended procedures for public 
                        service announcements by broadcasters and 
                        multichannel video programming distributors, 
                        toll-free information hotlines, retail displays 
                        or notices, such as making available at the 
                        point of sale for television sets and equipment 
                        designed to receive over-the-air broadcast 
                        television signals a sufficient supply of free 
                        handbills containing that consumer information; 
                        and
                            (ii) recommended procedures for direct 
                        mail, billboards, and community events related 
                        to the digital television transition;
                    (C) to ensure that the Commission's national plan 
                includes a requirement that all licensed broadcasters 
                in a designated market area submit a joint plan to the 
                Commission addressing the public outreach and public 
                service announcement requirements required by this 
                title to inform consumers in those areas of the 
                transition to digital television that--
                            (i) includes a description of how each 
                        broadcaster will fulfill the public service 
                        announcement requirements required under 
                        section 330(d)(7) of the Communications Act of 
                        1934 (47 U.S.C. 330(d)(7));
                            (ii) includes market research by each 
                        broadcaster regarding projected consumer demand 
                        for converter boxes in their designated market 
                        area; and
                            (iii) will be shared with retailers inside 
                        their designated market area so that such 
                        retailers may stock the appropriate amount of 
                        converter boxes to meet the needs of consumers 
                        within each designated market area; and
                    (D) to provide to the Commission a DTV Progress 
                Report that reflects ongoing and planned efforts by the 
                private sector, both nationally and in various 
                television broadcast markets, to inform consumers about 
                the digital transition and to minimize potential 
                disruption to consumers attributable to the transition 
                to digital broadcasting.
    (c) Requirements To Promote Sale of Digital Televisions and 
Converter Boxes.--
            (1) Digital tuner mandate.--Part I of title III (47 U.S.C. 
        301 et seq.) is amended by inserting after section 303 the 
        following:

``SEC. 303A. REQUIREMENTS FOR DIGITAL TELEVISION SETS AND CERTAIN OTHER 
              EQUIPMENT.

    ``(a) In General.--It is unlawful to sell, or offer for sale, at 
retail after March 1, 2007, a television set with a picture screen 13 
inches or greater in size (measured diagonally) unless that television 
set is equipped with a tuner capable of receiving and decoding digital 
signals.
    ``(b) Retail Defined.--In this section, the term `retail' means the 
first sale for purposes other than resale.''.
            (2) Commission not to change schedule.--The Federal 
        Communications Commission may not revise the digital television 
        reception capability implementation schedule under section 
        15.117(i) of its regulations (47 C.F.R. 15.117(i)) except to 
        conform that section to the requirements of section 303A of the 
        Communications Act of 1934.
            (3) Converter boxes.--The Commission shall set the energy 
        standards for converter boxes. Notwithstanding any other 
        provision of law, those standards shall govern the energy 
        standards for converter boxes sold for use in the United 
        States. This paragraph shall not apply after May 17, 2009.
    (d) Downconversion From Digital Signals to Analog Signals.
            (1) Digital-to-analog conversion.--Section 614(b)(4) (47 
        U.S.C. 534(b)(4)) is amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (I); and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Digital video signal.--With respect to any 
                television station that is transmitting broadcast 
                programming exclusively in the digital television 
                service in a local market, a cable operator of a cable 
                system in that market shall carry any digital video 
                signal requiring carriage under this section and 
                program-related material in the digital format 
                transmitted by that station, without material 
                degradation, if the licensee for that station relies on 
                this section or section 615 to obtain carriage of the 
                digital video signal and program-related material on 
                that cable system in that market.
                    ``(C) Multiple formats permitted.--A cable operator 
                of a cable system may offer the digital video signal 
                and program-related material of a local television 
                station described in subparagraph (A) in any analog or 
                digital format or formats, whether or not doing so 
                requires conversion from the format transmitted by the 
                local television station, so long as--
                            ``(i) the cable operator offers the digital 
                        video signal and program-related material in 
                        the converted analog or digital format or 
                        formats without material degradation; and
                            ``(ii) also offers the digital video signal 
                        and program-related material in the manner or 
                        manners required by this paragraph.
                    ``(D) Transitional conversions.--Notwithstanding 
                the requirement in subparagraph (B) to carry the 
                digital video signal and program-related material in 
                the digital format transmitted by the local television 
                station, but subject to the prohibition on material 
                degradation, until February 17, 2014--
                            ``(i) a cable operator--
                                    ``(I) shall offer the digital video 
                                signal and program-related material in 
                                the format or formats necessary for 
                                such stream and material to be viewable 
                                on analog and digital televisions; and
                                    ``(II) may convert the digital 
                                video signal and program-related 
                                material to standard-definition digital 
                                format in lieu of offering it in the 
                                digital format transmitted by the local 
                                television station;
                            ``(ii) notwithstanding clause (i), a cable 
                        operator of a cable system with an activated 
                        capacity of 550 megahertz or less--
                                    ``(I) shall offer the digital video 
                                signal and program-related material of 
                                the local television station described 
                                in subparagraph (A), converted to an 
                                analog format; and
                                    ``(II) may, but shall not be 
                                required to, offer the digital video 
                                signal and program-related material in 
                                any digital format or formats.
                    ``(E) Location and method of conversion.--A cable 
                operator of a cable system may perform any conversion 
                permitted or required by this paragraph at any 
                location, from the cable head-end to the customer 
                premises, inclusive.
                    ``(F) Conversions not treated as degradation.--Any 
                conversion permitted or required by this paragraph 
                shall not, by itself, be treated as a material 
                degradation.
                    ``(G) Carriage of program-related material.--The 
                obligation to carry program-related material under this 
                paragraph is effective only to the extent technically 
                feasible.
                    ``(H) Definition of standard-definition format.--
                For purposes of this paragraph, a stream shall be in 
                standard definition digital format if such stream meets 
                the criteria for such format specified in the standard 
                recognized by the Commission in section 73.682 of its 
                rules (47 C.F.R. 73.682) or a successor regulation.''.
            (2) Tiering.--
                    (A) Amendment to communications act.--Clause (iii) 
                of section 623(b)(7)(A) (47 U.S.C. 543(b)(7)(A)(iii)) 
                is amended to read as follows:
                            ``(iii) Any analog signal and any digital 
                        video signal of any television broadcast 
                        station that is provided by the cable operator 
                        to any subscriber, except a signal which is 
                        secondarily transmitted by a satellite carrier 
                        beyond the local service area of such 
                        station.''.
                    (B) Effective date.--With respect to any television 
                broadcast station, this subsection and the amendments 
                made by this paragraph shall take effect on the date 
                the broadcaster ceases transmissions in the analog 
                television service.
            (3) Material degradation.--Section 614 (47 U.S.C. 534) is 
        amended--
                    (A) by redesignating subsection (h) as subsection 
                (i); and
                    (B) by inserting after subsection (g) the 
                following:
    ``(i) Material Degradation.--For purposes of this section and 
section 615, transmission of a digital signal over a cable system in a 
compressed bitstream shall not be considered material degradation as 
long as such compression does not materially affect the picture quality 
the consumer receives.''.

SEC. 702. DIGITAL STREAM REQUIREMENT FOR THE BLIND.

    (a) Rules Reinstated.--The video description rules of the Federal 
Communications Commission contained in the report and order identified 
as Implementation of Video Description of Video Programming, Report and 
Order, 15 F.C.C.R. 15,230 (2000), shall, notwithstanding the decision 
of the United States Court of Appeals for the District of Columbia 
Circuit in Motion Picture Association of America, Inc., et al., v. 
Federal Communications Commission, et al. (309 F. 3d 796, November 8, 
2002), be considered to be authorized and ratified by law.
    (b) Continuing Authority of Commission.--The Federal Communications 
Commission--
            (1) shall, within 45 days after the date of enactment of 
        this Act, republish its video description rules contained in 
        the report and order Implementation of Video Description of 
        Video Programming, Report and Order, 15 F.C.C.R. 15,230 (2000);
            (2) may amend, repeal, or otherwise modify such rules; and
            (3) shall initiate a proceeding within 120 days after the 
        date of enactment of this Act, and complete that proceeding 
        within 1 year, to consider incorporating accessible information 
        requirements in its video description rules.
    (c) Accessible Information Defined.--In this section, the term 
``accessible information'' may include written information displayed on 
television screens during regular programming, hazardous warnings and 
other emergency information, local and national news bulletins, and any 
other information the Commission deems appropriate.

SEC. 703. STATUS OF INTERNATIONAL COORDINATION.

    Until the date on which the international coordination with Canada 
and Mexico of the DTV table of allotments is complete (as determined by 
the Federal Communications Commission), the Federal Communications 
Commission shall submit a report every 6 months on the status of that 
international coordination to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Energy and Commerce.

                    TITLE VIII--PROTECTING CHILDREN

SEC. 801. VIDEO TRANSMISSION OF CHILD PORNOGRAPHY.

    Section 621 (47 U.S.C. 541) is amended by adding at the end the 
following:
    ``(j) Child Pornography.--
            ``(1) In general.--A video service provider authorized to 
        provide video service in a local franchise area shall comply 
        with the regulations on child pornography promulgated pursuant 
        to paragraph (2).
            ``(2) Regulations.--Not later than 180 days after the date 
        of enactment of the Communications, Consumer's Choice, and 
        Broadband Deployment of 2006, the Commission shall promulgate 
        regulations to require a video service to prevent the 
        distribution of child pornography (as such term is defined in 
        section 254(h)(7)(F)) over its network.''.

                     TITLE IX--INTERNET NEUTRALITY

SEC. 901. NEUTRAL NETWORKS FOR CONSUMERS.

    (a) In General.--Beginning 1 year after the date of enactment of 
this Act, the Federal Communications Commission shall report annually 
to the Senate Committee on Commerce, Science, and Transportation and 
the House of Representatives Committee on Energy and Commerce for 5 
years regarding--
            (1) the developments in Internet traffic processing, 
        routing, peering, transport, and interconnection;
            (2) how such developments impact the free flow of 
        information over the public Internet and the consumer 
        experience using the public Internet;
            (3) business relationships between broadband service 
        providers and applications and online user services; and
            (4) the development of and services available over public 
        and private Internet offerings.
    (b) Determinations and Recommendations.--If the Commission 
determines that there are significant problems with any of the matters 
described in subsection (a) the Commission shall make such 
recommendations in its next annual report under subsection (a) as it 
deems necessary and appropriate to ensure that consumers can access 
lawful content and run Internet applications and services over the 
public Internet subject to the bandwidth purchased and the needs of law 
enforcement agencies. The Commission shall include recommendations for 
appropriate enforcement mechanisms but may not recommend additional 
rulemaking authority for the Commission.

                         TITLE X--MISCELLANEOUS

SEC. 1001. COMMISSIONER PARTICIPATION IN FORUMS AND MEETINGS.

    (a) In General.--Section 5 (47 U.S.C. 155) is amended by adding at 
the end the following:
    ``(f) Meetings.--
            ``(1) Attendance required.--Notwithstanding 552b of title 
        5, United States Code, and section 4(h) of this Act, the 
        Commission may conduct a meeting that is not open to the public 
        if the meeting is attended by--
                    ``(A) all members of the Commission; or
                    ``(B) at least 1 member of the political party 
                whose members are in the minority.
            ``(2) Voting prohibited.--The Commission may not vote or 
        make any final decision on any matter pending before it in a 
        meeting that is not open to the public, unless--
                    ``(A) otherwise authorized by section 552b(b) of 
                title 5, United States Code; or
                    ``(B) the Commission has moved its operations 
                outside Washington, D.C., pursuant to a Continuity of 
                Operations Plan.
            ``(3) Publication of summary.--If the Commission conducts a 
        meeting that is not open to the public under this section, the 
        Commission shall promptly publish an executive summary 
        describing the matters discussed at that meeting after the 
        meeting ends, except for such matters as the Commission 
        determines may be withheld under section 552b(c) of title 5, 
        United States Code. This paragraph does not apply to a meeting 
        described in paragraph (4).
            ``(4) Quorum unnecessary for certain meetings.--Neither 
        section 552b of title 5, United States Code, nor paragraph (1) 
        of this subsection applies to--
                    ``(A) a meeting of 3 or more members of the 
                Commission with the President, any person employed by 
                the Office of the President, any official of a Federal, 
                State, or local agency, a Member of Congress or his 
                staff;
                    ``(B) the attendance, by 3 or more members of the 
                Commission, at a forum or conference to discuss general 
                communications issues; or
                    ``(C) a meeting of 3 or more members of the 
                Commission when the Continuity of Operations Plan is in 
                effect and the Commission is operating under the terms 
                of that Plan.
            ``(5) Savings clause.--Nothing in this subsection shall be 
        construed to prohibit the Commission from doing anything 
        authorized by section 552b of title 5, United States Code.''.

SEC. 1002. SEVERABILITY.

    If any provision of this Act, an amendment made by this Act, or the 
application of such provision or amendment to any person or 
circumstance is held to be unconstitutional, the remainder of this Act, 
the amendments made by this Act, and the application of such provisions 
to any person or circumstance shall not be affected thereby.
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