U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

39—010

" SENATE ! 108TH CONGRESS

2d Session 

REPORT

2004

108–428

Calendar No. 816

THE SAVE LIVES ACT OF 2004

REPORT

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION

ON

S. 2820

DECEMBER 7, 2004.—Ordered to be printed 


congress.#13
(II)

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED EIGHTH CONGRESS

SECOND SESSION

JOHN MCCAIN, Arizona, Chairman 

TED STEVENS, Alaska 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

SAM BROWNBACK, Kansas 

GORDON SMITH, Oregon 

PETER G. FITZGERALD, Illinois 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

JOHN E. SUNUNU, New Hampshire 

ERNEST F. HOLLINGS, South Carolina 

DANIEL K. INOUYE, Hawaii 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

JOHN B. BREAUX, Louisiana 

BYRON L. DORGAN, North Dakota 

RON WYDEN, Oregon 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK LAUTENBERG, New Jersey 

JEANNE BUMPUS, Staff Director and General Counsel 

ROB FREEMAN, Deputy Staff Director 

SAMUEL WHITEHORN, Democratic Staff Director and Chief Counsel 

MARGARET SPRING, Democratic Senior Counsel 

Calendar No. 816

108TH CONGRESS REPORT " SENATE ! 2d Session 108–428

THE SAVE LIVES ACT OF 2004

DECEMBER 7, 2004.—Ordered to be printed

Mr. MCCAIN, from the Committee on Commerce, Science, and 

Transportation, submitted the following 

R E P O R T 

[To accompany S. 2820]

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 2820) to ensure the availability of 

certain spectrum for public safety entities by amending the Communications Act of 1934 to establish January 1, 2009, as the date 

by which the transition to digital television shall be completed, and 

for other purposes, having considered the same, reports favorably 

thereon with an amendment (in the nature of a substitute) and recommends that the bill (as amended) do pass. 

PURPOSE OF THE BILL

The purpose of the SAVE LIVES Act is to provide by January 

2009 public safety professionals, such as firefighters and police officers, with spectrum for wireless emergency communications and for 

other purposes. In order for this to occur, the SAVE LIVES Act 

would require television stations currently broadcasting on this 

spectrum to vacate by December 31, 2008. The legislation would 

also authorize funding for grants to public safety organizations for 

training and new interoperable equipment and authorize the Department of Homeland Security’s (DHS) SAFECOM program. 

BACKGROUND AND NEEDS

In 1997, responding to a request from the public safety community for more spectrum, Congress passed legislation providing public safety professionals with 24 megahertz (MHz) in the 700 MHz 

2

1See Balanced Budget Act of 1997, P.L.105–33, Title III. See Also 47 U.S.C. 337(a)(1). 

2See http://www.9-11commission.gov/report/index.htm, page 397.

band. 1 The Federal Communications Commission (FCC) responded 

by allocating the frequencies 764–776 MHz and 794–806 MHz, 

broadcast television channels 63–64 and 68–69 respectively, for 

public safety use after the broadcasters cease using this spectrum 

when the Nation transitions from analog to digital television. 

Full use of spectrum in the 700 MHz band can be extremely 

helpful to public safety organizations given the spectrum’s propagation characteristics. Signals sent over these frequencies can penetrate walls, can travel great distances and can assist multiple jurisdictions in deploying interoperable communications systems. 

There are over 50,000 public safety agencies, which include 2.5 

million of the Nation’s first responders (such as firefighters, police 

officers, and ambulance services) and a number of local, State, Federal—and in some cases—regional authorities. Communications, 

often wireless, are vital to these agencies’ effectiveness and to the 

safety of their members and the public. The Association of Public 

Safety Communications Officials (APCO) argues that access to 

spectrum in the 700 MHz band is critical to reduce commercial 

transmission interference to emergency communications, to expand 

capacity, to help achieve implementation of high-speed services, to 

provide interoperability, and to promote technical standardization. 

Interoperability, also referred to as compatibility or interconnectivity, allows different systems to readily contact each other 

and provides needed redundancy. 

The lead program for fostering interoperability is SAFECOM, 

part of the DHS, while the National Telecommunications and Information Administration, part of the Department of Commerce, administers spectrum used by Federal entities. SAFECOM serves as 

the umbrella program within the Federal government to coordinate 

the efforts of local, tribal, State and Federal public safety agencies 

to promote effective, efficient and interoperable wireless communications. SAFECOM, however, has no authority over spectrum 

management decisions. 

The 9/11 Commission, in its final report, discussed the immediate need for ‘‘the expedited and increased assignment of radio 

spectrum for public safety purposes.’’ 2 On September 8, 2004, the 

Committee on Commerce, Science, and Transportation held a hearing on implementing the 9/11 Commission’s recommendation. Chief 

Stephen T. Devine of the Missouri State Highway Patrol testified 

at the hearing on behalf of public safety organizations and this legislation: 

The spectrum [allocated to public safety by Congress in 

1997, but currently being used for television broadcasting] 

would nearly double the amount of spectrum available for 

public safety mobile voice and data communications * * *. 

Thus, Congress needs to change existing law to establish 

a firm date for nationwide access to this spectrum. State 

and local governments need a firm date so they can proceed with planning, funding, and construction of new radio 

systems, safe in the knowledge that the spectrum will be 

there when the systems are ready to be deployed. 

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LEGISLATIVE HISTORY

On September 8, 2004, Senator McCain introduced the SAVE 

LIVES Act, a bill to ensure the availability of certain spectrum for 

public safety, and for other purposes. That same day, the Senate 

Commerce, Science, and Transportation Committee held a hearing 

to review the 9/11 Commission’s recommendation that Congress 

provide public safety organizations with spectrum on an expedited 

basis for wireless emergency communications systems. 

On September 22, 2004, the Committee held an executive session 

at which the SAVE LIVES Act was considered. The bill was 

amended by Senators Burns and Lautenberg and then ordered reported. 

ESTIMATED COSTS

In accordance with paragraph 11(a) of rule XXVI of the Standing 

Rules of the Senate and section 403 of the Congressional Budget 

Act of 1974, the Committee provides the following cost estimate, 

prepared by the Congressional Budget Office:

S. 2820—SAVE LIVES Act 

Summary: S. 2820 would amend federal laws governing the use 

of the electromagnetic spectrum by public safety agencies and television broadcasters. The bill would appropriate up to $1 billion on 

subsidize consumer purchases of certain television products. It also 

would authorize the appropriation of $117 million in funding over 

the 2005–2009 period for programs aimed at improving the interoperability of radio systems used by public safety agencies. 

CBO estimates that enacting the bill would increase direct 

spending by $500 million over the 2005–2009 period and another 

$500 million thereafter. CBO estimates that implementing the legislation would add $83 million to discretionary spending over the 

2005–2009 period, assuming appropriation of the authorized 

amounts. Enacting S. 2820 would not affect revenues. 

S. 2820 contains intergovernmental mandates as defined in the 

Unfunded Mandates Reform Act (UMRA) because it would require 

seven public broadcasting stations to vacate their current television 

channels by January 1, 2008. CBO estimates, however, that the associated costs to state, local, and tribal governments would be 

small and would not exceed the threshold established in UMRA 

($60 million in 2004, adjusted annually for inflation). 

S. 2820 would impose private-sector mandates as defined in 

UMRA on television broadcasters and manufacturers, importers, 

and retailers of equipment capable of receiving analog broadcast 

television signals. The bill would increase the local and public affairs requirements for holders of broadcast licenses. It also would 

require television broadcasters to vacate certain channels by January 1, 2008. Finally, the bill would require certain manufacturers, 

importers and retailers to place labels on their equipment regarding the end of over-the-air broadcasts of analog television signals. 

Based on information from the industry and the Federal Communications Commission (FCC), CBO expects that the aggregate direct cost to comply with those mandates would exceed the annual 

threshold established by UMRA for private-sector mandates would 

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exceed the annual threshold established by UMRA for private-sector mandates ($120 million in 2004, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary impact of S. 2820 is shown in the following table. The costs 

of this legislation fall within budget functions 370 (commerce and 

housing credit) and 750 (administration of justice).

By fiscal year, in million of dollars—

2005 2006 2007 2008 2009

CHANGES IN DIRECT SPENDING

Estimated Budget Authority .......................................................................... 0 0 0 1,000 0

Estimated Outlays ......................................................................................... 0 0 0 150 350

CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level ........................................................................................ 22 23 23 24 25

Estimated Outlays ......................................................................................... 3 13 20 23 24

Basis of Estimate: For this estimate, CBO assumes that the bill 

will be enacted in calendar year 2004 and that the authorized 

amounts will be appropriated near the start of each fiscal year. 

Outlay estimates are based on spending patterns of similar programs. CBO estimates that enacting S. 2820 would increase direct 

spending by $1 billion over the next 10 years, but that spending 

would not begin until 2008. Discretionary spending also would increase by $83 million over the 2005–2009 period, assuming appropriation of the authorized amounts. 

Direct spending 

S. 2820 would appropriate up to $1 billion of the proceeds from 

auctioning certain spectrum for a new program to subsidize certain 

consumer purchases of digital television products. Under this bill, 

proceeds from auctions of licenses to use certain frequencies now 

used by television broadcasters would be deposited in a new Digital 

Transition Consumer Assistance Fund. The bill would direct the 

Secretary of Commerce to spend up to $1 billion of the money in 

that fund to assist households in purchasing equipment or services 

that would enable them to receive digital rather than analog television signals. Under current law, the Federal Communications 

Commission is supposed to auction those frequencies before its auction authority expires and deposit the proceeds in the Treasury. 

CBO estimates that $1 billion would become available to the new 

fund in 2008 and that it would be spent over the following six 

years. This estimate reflects CBO’s baseline assumption that auctions of the affected television frequencies are likely to occur in fiscal year 2007 (the year the FCC’s auction authority expires under 

current law) and that proceeds would be deposited by 2008. CBO 

expects that the department would spend the entire $1 billion authorized for the new program, as shown in the table below, given 

the large number of households that currently lack access to digital 

television signals.

5

By fiscal year, in millions of dollars—

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DIGITAL TRANSITION CONSUMER ASSISTANCE FUND

Estimated Outlays ......................... 0 0 0 150 350 200 150 100 50 0

Spending subject to appropriation 

S. 2820 would authorize funding for two new programs to enhance the interoperability of communications systems used by public safety agencies. The bill would authorize a new research and development initiative at the Department of Homeland Security 

(DHS) on systems, standards, and a strategic plan for interoperable 

communication systems. The authorized amounts range from $22 

million in 2005 to $25 million in 2009 and would total $117 million 

over the 2005–2009 period. Based on experience with similar activities, CBO estimates that outlays for these programs would total 

$83 million over the 2005–2009 period. 

The bill also would authorize DHS to assist state and local firstresponder agencies to acquire and deploy interoperable communications systems. Funding for this program would be subject to appropriation and limited to the amounts in the Digital Transition Consumer Assistance Fund that are in excess of the amounts spent by 

the Department of Commerce to assist households in converting 

form analog to digital television. Because the Commerce program 

is likely to take several years to implement, CBO expects that 

grants for first-responders would not be made until after 2009.

Finally, S. 2820 would direct various agencies to prepare reports 

and implement various rulemaking proceedings. Based on information from the Office of Management and Budget and affected agencies, CBO estimates that the cost of those activities would not be 

significant. 

Estimated impact on state, local, and tribal governments: S. 2820 

contains an intergovernmental mandate as defined in UMRA because it would require seven public broadcasting stations to vacate 

their current television channels by January 1, 2008, more quickly 

than under current law. Based on information from industry 

sources and the FCC, CBO estimates that stations affected by the 

bill would face costs totaling no more than $2 million per station 

depending on the television market in which they currently operate, possible lost contributions from members who are no longer 

able to receive the station signal, and the adjustments to their 

broadcasting technology that whey would be required to make. 

Section 11 also would require the FCC to develop new guidelines 

for programs that originate locally. However, based on information 

from the Corporation for Public Broadcasting, CBO estimates that 

the costs of the new guidelines to public television stations would 

be minimal. The aggregate costs of the mandate would thus not exceed the threshold established in UMRA ($60 million in 2004, adjusted annually for inflation). 

Estimated impact on the private sector: S. 2820 contains privatesector mandates as defined in UMRA that would affect television 

broadcasters and manufacturers, importers, and retailers of equipment capable of receiving analog broadcast television signals. The 

bill would impose mandates by: 

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• Requiring television broadcasters to increase the amount 

of local and public affairs programming; • Requiring television broadcasters to vacate certain channels by January 1, 2008; and • Requiring certain manufacturers, importers, and retailers 

to post notices on their equipment regarding the termination 

date for over-the-air broadcasts of analog television signals. 

Based on information from the industry and the FCC, CBO estimates that the aggregate direct cost to comply with those mandates 

would exceed the annual threshold established by UMRA for private-sector mandates ($120 million in 2004, adjusted annually for 

inflation). CBO cannot estimate the total cost of mandates in the 

bill because some of the requirements established by the bill would 

depend on future regulatory action for which information is not 

available. However, CBO estimates that the cost associated with 

increasing the amount of local and public affairs programing that 

broadcast licensees would have to carry is likely to be above the 

UMRA threshold. 

Minimum requirements for public interest programming 

Section 11 would direct the FCC to establish ‘‘minimum quantitative guidelines for locally originating programming, local electoral and public affairs programming, and independently produced 

programming’’ for television broadcast licensees. Under the bill, the 

FCC would have to consider the extent to which licensees have 

complied with those guidelines when reviewing an application for 

renewal of a digital broadcast license. The bill would impose a private-sector mandate by effectively increasing the requirements for 

renewal of television broadcast licences. Television stations already 

broadcast many public service announcements. Such announcements may not fulfill the requirements under the new guidelines, 

however, since those announcements are typically not locally oriented or locally produced nor do they typically deal with local electoral politics. 

To comply with the mandate, television stations would be required to reschedule or not transmit certain programs and produce 

other programs that qualify under the new guidelines. The cost of 

the mandate for licensees in the private sector would be: 

• The loss in net advertising revenues (net income) associated with rescheduling or not transmitting some commercial 

programming, and 

• The production costs of creating locally and independently 

produced programming. 

Based on information from industry sources and the FCC, CBO 

expects that the cost of complying with the new guidelines would 

be greater than UMRA’s annual threshold for private-sector mandates. 

Termination of broadcast television licenses for 24 megahertz of 

spectrum 

Current law requires all television broadcasters to give up their 

analog spectrum by December 31, 2006. TV broadcasters can receive an unlimited extension of this deadline for several reasons; 

most notably, an extension may be granted to broadcasters until at 

least 85 percent of households in their service areas are capable of 

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receiving a digital signal. Most experts agree that the 2006 deadline for vacating the analog channels will not be met by broadcasters in most markets under the current rules. The FCC has 

been considering a proposal that would require broadcasters to give 

up their analog broadcast licenses by January 1, 2009. Of the spectrum released as part of the transition to digital television, current 

law requires that 24 megahertz (4 channels) in the 700 megahertz 

band be turned over for use by public safety agencies. 

Section 3 of S. 2820 would require broadcasters operating on 

channels 63, 64, 68, and 69 to clear their analog and digital spectrum for public safety use by January 1, 2008. The bill would prohibit the FCC from extending broadcast licenses for those channels 

beyond the 2008 deadline. The bill also would authorize the FCC 

to modify or reassign the licenses of entities operating in the adjacent bands of the electromagnetic spectrum, if necessary, for the 

operations of the public safety services. The FCC could waive those 

requirements under the bill in two circumstances: first, if there is 

no substantive request by relevant first-responders in a designated 

market area, and second, ‘‘to the extent necessary to avoid consumer disruption while maximizing the ability of relevant public 

safety entities to use the frequencies described * * *.’’

CBO is uncertain how the FCC would implement the provisions 

of section 3. The authority to waive the requirements of the bill 

under certain conditions increases the uncertainty about the scope 

of the mandate on broadcasters. The FCC could interpret the ‘‘consumer disruption’’ clause broadly and clear few, if any, channels before the general transition to digital television, which currently appears to be set for sometime in 2009. Alternatively, the bill would 

allow the FCC to completely clear out the four relevant channels 

while permitting other television broadcasters to continue broadcasting on other analog channels through 2009. 

For purposes of this estimate, CBO assumes that the FCC would 

let the current 2006 deadline pass without clearing many of the 

channels, but that, following this bill, it would clear all the public 

safety channels by January 1, 2008. Further, CBO assumes that 

few of the adjacent channels would be cleared before the general 

transition to digital broadcasting. Clearing television broadcasters 

from the initial four channels could affect 31 analog broadcast stations and four digital broadcast stations in the United States, including Puerto Rico. 

For purposes of this estimate, CBO assumes that the FCC would 

require television stations to cease over-the-air broadcasts on the 

four designated channels, while still requiring their programs to be 

‘‘retransmitted’’ to households by cable, satellite, and other multivideo services (enforcing the ‘‘must-carry’’ rules on cable companies 

and ‘‘carry one, carry all’’ rules on satellite companies). Some analysts have suggested this as a viable option since most households 

view television through cable, satellite, or other multivideo services. In this scenario, the cost to stations transmitting analog signals would end, but their over-the-air audience would also largely 

disappear. With the loss of that audience segment, the value of 

their advertising revenue would be reduced. 

Based on information from FCC and industry sources, CBO estimates that the costs to comply with the mandate facing the affected broadcasters would be small—substantially less than the 

8

UMRA threshold. The TV stations using the designated channels 

do not have large audiences and so do not command much in the 

way of advertising revenues. Some of the broadcasters might also 

face the additional costs of buying the necessary equipment to ensure that their signals get to the cable networks that are carrying 

their programs. However, most of the stations involved already 

have the digital transmitters in operation that can be used by the 

cable systems. 

Warning requirements for analog equipment 

Section 9 would require manufacturers, importers, and retailers 

to display a label (or notice) on all television apparatus (mainly TV 

sets and VCRs) involved in interstate commerce and incapable of 

receiving digital television signals. A label (or printed notice, in the 

case of retailers) would state that the equipment ‘‘will be incapable 

of displaying over-the-air television broadcast signals received after 

December 31, 2008, without the purchase of additional equipment.’’ 

While requiring such a warning would appear to constitute an enforceable duty, the bill would not establish a 2008 deadline for television broadcast conversion to digital signals, nor is there such a 

deadline in current law. Because such a label would be inconsistent 

with current law, CBO is uncertain how to measure the potential 

costs of compliance. 

Estimate prepared by: Federal Costs: Kathleen Gramp. Impact 

on State, Local, and Tribal Governments: Sarah Puro. Impact on 

the Private Sector: Philip Webre. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

REGULATORY IMPACT STATEMENT

In accordance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following evaluation of the regulatory impact of the legislation, as reported: 

The SAVE LIVES Act would have no additional regulatory impact and would result in no additional reporting requirements because the FCC is already taking action to move the Nation from 

analog to digital television. 

NUMBER OF PERSONS COVERED

The SAVE LIVES Act would impact a majority of the Nation’s 

citizens by allowing public safety organizations to communicate 

with each other and adjacent communities’ public safety organizations. This would provide citizens with a more secure community. 

ECONOMIC IMPACT

The SAVE LIVES Act would authorize funds to support grants 

to public safety organizations for new interoperable communications equipment and to assist citizens who may lose their ability 

to view some television stations. These funds would be raised from 

the auction of the returned analog television broadcast spectrum. 

9

PRIVACY

The SAVE LIVES Act is not expected to have an adverse effect 

on the personal privacy of any individuals that will be impacted by 

this legislation. 

PAPERWORK

The SAVE LIVES Act would have a minimal impact on current 

paperwork levels as the FCC is already managing the Nation’s 

transition to digital television and accepting information from 

broadcast television licensees about their public interest programming. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

Section 1 would provide that the act may be cited as ‘‘The Spectrum Availability for Emergency-Response and Law-Enforcement 

To Improve Vital Emergency Services Act,’’ to be known as The 

SAVE LIVES Act. 

Section 2. Findings 

Section 2 would provide Congress’ findings in support of the legislation. 

Section 3. Prevention of delay in the reassignment of 24 megahertz 

for public safety purposes 

Section 3 would provide spectrum in the frequencies of 764–776 

megahertz and 794–806 megahertz, currently being used to broadcast television channels 63–64 and 68–69 respectively, to public 

safety organizations by January 1, 2008. This section would also 

allow the FCC to modify or re-assign licenses assigned to the frequencies surrounding these channels as necessary to permit operations by public safety organizations. However, the legislation 

would allow the FCC to waive this requirement if a public safety 

organization fails to make a bona fide request for the spectrum in 

the affected area and the removal of the broadcast television stations would create widespread consumer disruption because the 

station and the public safety organizations can not operate together 

on the spectrum due to interference. 

The Committee believes a bona fide request is one where a public 

safety organization can show that it has the need for the spectrum 

for interoperable emergency wireless communications, and has the 

funding and ability to begin using the spectrum upon the broadcaster vacating this spectrum. If there is disagreement as to whether the public safety organization has made a bona fide request, the 

Committee believes the parties should file with the FCC for a determination. Congress’ intention is for this spectrum never to lay 

vacant, but rather to be used either for broadcasting or emergency 

wireless communications as needed in each community. It is also 

Congress’ intention that in such a review public safety’s need for 

the spectrum should be permanent. 

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Section 4. Study of public safety communications capabilities and 

needs and spectrum uses 

Section 4 would require the FCC, in consultation with the Department of Homeland Security (DHS), to conduct a study to assess 

public safety’s communications needs over the next ten years, including the need for additional spectrum, the ability of broadband 

and narrowband applications to be performed on public safety spectrum, and whether other first responders such as hospitals and 

health care workers should be included in an interoperable national communications system. Additionally, this section would ask 

the FCC to study the feasibility of reallocating some of the spectrum in the 700 MHz band for unlicensed broadband use. The FCC 

would be required to report back to the Senate Commerce, Science 

and Transportation Committee and House Energy and Commerce 

Committee within one year of the bill’s enactment. 

Section 5. Statutory authority for the Department of Homeland Security’s ‘‘SAFECOM’’ program 

Section 5 would authorize DHS’ SAFECOM program for five 

years. SAFECOM serves as the umbrella program within the Federal government to coordinate the efforts of local, tribal, State and 

Federal public safety agencies to promote effective, efficient and 

interoperable wireless communications. In pursuit of this goal, 

SAFECOM has begun an inventory of all Federal grants to public 

safety organizations to better understand the amount of Federal 

funding to localities for emergency communications systems. This 

inventory is expected to be complete by October 2005. 

SAFECOM has also served as a consultant to many States and 

localities assisting with the development of their interoperable 

emergency communications systems. However, most importantly, 

SAFECOM has completed the development of critical standards for 

public safety communications equipment mandating interoperability, which is now included as a condition on all monies provided 

to localities by the Federal government for public safety communications equipment. This should provide for greater national interoperability and decreased costs for localities. Recognizing the need 

for a centralized office to handle all aspects of emergency communications planning, the Administration created SAFECOM and this 

section would recognize SAFECOM’s necessity and authorize it. 

Section 6. Grant program to provide enhanced interoperability of 

communications for first responders 

Section 6 would authorize the Office for Domestic Preparedness 

in DHS to establish a grant program to assist State, local, tribal 

and regional public safety organization with the purchase and 

training costs of acquiring new wireless emergency communications 

system. 

Section 7. Digital transition public safety communications grant 

and consumer assistance fund 

Section 7 would authorize the appropriation of auction revenues 

from the sale of returned analog broadcast spectrum to be used for 

two programs. The first program, and the priority use for these 

funds, would allocate $1 billion to create a subsidy to limit the disruption of broadcast services to the public, especially for those who 

11

rely exclusively on over-the-air broadcast television. This total cost 

of this subsidy program is not to exceed $1 billion. When the New 

America Foundation testified before the Senate Commerce Committee in June 2004, it testified that the cost to assist these 17.4 

million over-the-air consumers is slightly less than $1 billion dollars for equipment, assuming that digital-to-analog converter boxes 

retail for approximately $75 per box. At that same hearing, Motorola testified that they will introduce a digital-to-analog converter 

box for $67 per unit in 2005. Motorola calculated that such a price 

per unit would cap the cost of providing converters at less than 

$840 million nationwide to all over-the-air consumers. The same 

month of the hearing, Zenith Electronics announced that the company intends to retail digital-to-analog converter boxes at $50 to 

$70 per unit within four years. 

The Committee believes that the auction revenues should provide 

sufficient funds to cover the cost of equipment to ensure those who 

rely exclusively on over-the-air broadcast television will not have 

their television sets ‘‘go dark’’ on December 31, 2008. The New 

America Foundation expects the auction of the analog spectrum to 

yield $30-to-$40 billion in revenue to the Treasury, which equates 

roughly to less than 3 percent of the Federal revenue likely from 

the auction of the analog television spectrum. In testimony before 

the Senate Commerce Committee, FCC Chairman Powell stated 

that some estimates go as high as $70 billion. 

After funding the consumer subsidy program, the legislation 

would authorize the appropriation of such sums as required to support a grant program to provide public safety organizations with 

emergency communications equipment so these groups can begin 

using the 24 MHz of spectrum. The amount would be determined 

by the Director of the Office of Management and Budget (OMB) 

and be based on a National Baseline Interoperability study currently being conducted by the DHS. This study is currently being 

performed to determine the precise amount that is already being 

provided by the Federal government to local and regional public 

safety organizations for the purchase of new communications 

equipment and for the funding of emergency communications training. There are numerous grant programs throughout the Federal 

government, however no agency has ever studied how many grants 

are being provided and for what amount. After this study is completed, as required by this legislation by December 31, 2005, the 

Federal government will best know how much money is needed to 

ensure that public safety organizations have the equipment necessary to immediately begin using the 700 MHz spectrum January 

1, 2009. 

At the September 8, 2004 hearing, a public safety representative 

testified, ‘‘There also needs to be expanded funding for equipment, 

and more extensive planning and cooperation among public safety 

personnel at all levels of government. This includes local governments who must interoperate with their neighbors and with overlapping jurisdictions, regional authorities covering large metropolitan areas and sometimes crossing State borders, States through 

their State Interoperability Executive Committees (SIECs), and the 

Federal government.’’ This section was drafted in response to such 

requests from public safety organizations and localities. 

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Section 8. Digital transition program 

Section 8 would establish the program to assist the over-the-air 

viewers with the purchase or acquisition of digital-to-analog converter devices, or other equipment or services to ensure they are 

able to view television after December 31, 2008. The program 

would be developed by the Department of Commerce in conjunction 

with the OMB and established no later than January 1, 2008. This 

section would require the program to give priority to funding equipment or services to low income viewers, to offer these viewers technology neutral options and to be conducted at the lowest feasible 

administrative cost. 

Section 9. Label requirement for analog television sets 

Section 9 would require, after September 30, 2005, the labeling 

of all analog television sets to communicate to buyers that the television sets will be incapable of displaying over-the-air television 

broadcast signals after December 31, 2008 without the purchase of 

additional equipment. This section would also require retailers to 

post the same information at their retail outlets. 

Section 10. Report on consumer education program requirements 

Section 10 would require, within one year of enactment, that the 

Department of Commerce report back to the Senate Commerce, 

Sciend and Transportation Committee and House Energy and Commerce Committee any recommendations on an effective program to 

educate consumers about the digital television transition; the need, 

if any, for Federal funding, and the duration of such a program. 

Section 11. FCC to issue decision in certain proceedings 

Section 11 would require the FCC to issue a decision by a date 

certain in some of its open DTV proceedings, including a proceeding on whether cable or satellite companies should be required 

to carry broadcasters’ multi-cast channels, and a proceeding on 

what public interest obligations broadcasters should have for the 

digital television service. Additionally, this section would require 

the FCC to set forth specific guidelines on the amount of locally 

originated programming, local electoral and public affairs programming, and independently produced programming for television 

broadcast licensees. After setting forth such guidelines, the FCC is 

then required in its review of any application for renewal of a commercial or noncommercial digital television broadcast license, to 

consider the extent to which the applicant or licensee has complied 

with such guidelines. 

Section 12. Definitions 

Section 12 sets forth definitions for this Act. 

ROLLCALL VOTES IN COMMITTEE

In accordance with paragraph 7(c) of rule XXVI of the Standing 

Rules of the Senate, the Committee provides the following description of the record votes during its consideration of S. 1963:

Senator Lautenberg offered an amendment to require the FCC to 

publish minimum quantitative guidelines for locally originated proVerDate jul 14 2003 19:59 Dec 10, 2004 Jkt 039010 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\SR428.XXX SR428
13

gramming. By a rollcall vote of 13 yeas and 8 nays as follows, the 

amendment was adopted:

YEAS—13 NAYS—8

Ms. Snowe Mr. Stevens1

Mr. Fitzgerald Mr. Burns 

Mr. Hollings Mr. Lott 

Mr. Inouye1 Mrs. Hutchison1

Mr. Rockefeller1 Mr. Smith1

Mr. Breaux Mr. Ensign 

Mr. Dorgan Mr. Allen1

Mr. Wyden Mr. Sununu1

Mrs. Boxer1

Mr. Nelson 

Ms. Cantwell 

Mr. Lautenberg 

Mr. McCain

1By proxy

Mr. McCain, for himself and Mr. Hollings, offered a second degree amendment to the amendment proposed by Mr. Burns to modify the exception provided for the December 31, 2008, deadline. By 

a rollcall vote of 9 yeas and 13 nays, the amendment was not 

agreed to. 

YEAS—9 NAYS—13

Mr. Brownback Mr. Stevens1

Mr. Fitzgerald Mr. Burns 

Mr. Ensign Mr. Lott 

Mr. Sununu1 Mrs. Hutchison 

Mr. Wyden Ms. Snowe 

Mrs. Boxer Mr. Smith 

Mr. Nelson Mr. Allen1

Mr. Lautenberg Mr. Hollings 

Mr. McCain Mr. Inouye1

Mr. Rockefeller1

Mr. Breaux 

Mr. Dorgan 

Ms. Cantwell 1By proxy

Mr. Burns, for himself and Mr. Hollings, offered an amendment 

to prevent delay in the reassignment of 24 megaHertz for public 

safety purposes. By a rollcall vote of 13 yeas and 9 nays as follows, 

the amendment was adopted: 

YEAS—13 NAYS—9

Mr. Stevens1 Mr. Brownback 

Mr. Burns Mr. Fitzgerald 

Mr. Lott Mr. Ensign 

Mrs. Hutchison Mr. Sununu 

Ms. Snowe Mr. Wyden 

Mr. Smith Mrs. Boxer 

Mr. Allen1 Mr. Nelson 

Mr. Hollings Mr. Lautenberg 

Mr. Inouye1 Mr. McCain 

14

Mr. Rockefeller1

Mr. Breaux 

Mr. Dorgan 

Ms. Cantwell

1By proxy 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows (existing law proposed to be omitted 

is enclosed in black brackets, new material is printed in italic, existing law in which no change is proposed is shown in roman): 

HOMELAND SECURITY ACT OF 2002

TITLE III—SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND

SECURITY

SEC. 302. RESPONSIBILITIES AND AUTHORITIES OF THE UNDER SECRETARY FOR SCIENCE AND TECHNOLOGY. 

[6 U.S.C. 182]

(a) IN GENERAL.—The Secretary, acting through the Under Secretary for Science and Technology, shall have the responsibility 

for—

(1) advising the Secretary regarding research and development efforts and priorities in support of the Department’s missions; 

(2) developing, in consultation with other appropriate executive agencies, a national policy and strategic plan for, identifying priorities, goals, objectives and policies for, and coordinating the Federal Government’s civilian efforts to identify and 

develop countermeasures to chemical, biological, radiological, 

nuclear, and other emerging terrorist threats, including the development of comprehensive, research-based definable goals for 

such efforts and development of annual measurable objectives 

and specific targets to accomplish and evaluate the goals for 

such efforts; 

(3) supporting the Under Secretary for Information Analysis 

and Infrastructure Protection, by assessing and testing homeland security vulnerabilities and possible threats; 

(4) conducting basic and applied research, development, demonstration, testing, and evaluation activities that are relevant 

to any or all elements of the Department, through both intramural and extramural programs, except that such responsibility does not extend to human health-related research and 

development activities; 

(5) establishing priorities for, directing, funding, and conducting national research, development, test and evaluation, 

and procurement of technology and systems for—

(A) preventing the importation of chemical, biological, 

radiological, nuclear, and related weapons and material; 

and 

(B) detecting, preventing, protecting against, and responding to terrorist attacks; 

15

(6) establishing a system for transferring homeland security 

developments or technologies to Federal, State, local government, and private sector entities; 

(7) entering into work agreements, joint sponsorships, contracts, or any other agreements with the Department of Energy regarding the use of the national laboratories or sites and 

support of the science and technology base at those facilities; 

(8) collaborating with the Secretary of Agriculture and the 

Attorney General as provided in section 212 of the Agricultural 

Bioterrorism Protection Act of 2002 (7 U.S.C. 8401), as amended by section 1709(b); 

(9) collaborating with the Secretary of Health and Human 

Services and the Attorney General in determining any new biological agents and toxins that shall be listed as ‘‘select agents’’ 

in Appendix A of part 72 of title 42, Code of Federal Regulations, pursuant to section 351A of the Public Health Service 

Act (42 U.S.C. 262a); 

(10) supporting United States leadership in science and technology; 

(11) establishing and administering the primary research 

and development activities of the Department, including the 

long-term research and development needs and capabilities for 

all elements of the Department; 

(12) coordinating and integrating all research, development, 

demonstration, testing, and evaluation activities of the Department; 

(13) coordinating with other appropriate executive agencies 

in developing and carrying out the science and technology 

agenda of the Department to reduce duplication and identify 

unmet needs; and 

(14) developing and overseeing the administration of guidelines for merit review of research and development projects 

throughout the Department, and for the dissemination of research conducted or sponsored by the Department.

(b) SAFECOM AUTHORIZED.— (1) IN GENERAL.—In carrying out subsection (a), the Under 

Secretary shall establish a program to address the interoperability of communications devices used by Federal, State, tribal, 

and local first responders, to be known as the Wireless Public 

Safety Interoperability Communications Program, or 

‘SAFECOM’. The Under Secretary shall coordinate the program 

with the Director of the Department of Justice’s Office of 

Science and Technology and all other Federal programs engaging in communications interoperability research, development, 

and funding activities to ensure that the program takes into account, and does not duplicate, those programs or activities. 

(2) COMPONENTS.—The program established under paragraph (1) shall be designed—

(A) to provide research on the development of a communications system architecture that would ensure the interoperability of communications devices among Federal, 

State, tribal, and local officials that would enhance the potential for a coordinated response to a national emergency; 

(B) to support the completion and promote the adoption 

of mutually compatible voluntary consensus standards deVerDate jul 14 2003 19:59 Dec 10, 2004 Jkt 039010 PO 00000 Frm 00017 Fmt 6659 Sfmt 6603 E:\HR\OC\SR428.XXX SR428
16

veloped by a standards development organization accredited by the American National Standards Institute to ensure such interoperability; and 

(C) to provide for the development of a model strategic 

plan that could be used by any State or region in developing its communications interoperability plan. 

(3) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Secretary to carry out this subsection—

(A) $22,105,000 for fiscal year 2005; 

(B) $22,768,000 for fiscal year 2006; 

(C) $23,451,000 for fiscal year 2007; 

(D) $24,155,000 for fiscal year 2008; and 

(E) $24,879,000 for fiscal year 2009. 

(c) NATIONAL BASELINE STUDY OF PUBLIC SAFETY COMMUNICA- TIONS INTEROPERABILITY.—By December 31, 2005, the Under Secretary of Homeland Security for Science and Technology shall complete a study to develop a national baseline for communications 

interoperability and develop common grant guidance for all Federal 

grant programs that provide communications-related resources or 

assistance to State and local agencies, any Federal programs conducting demonstration projects, providing technical assistance, providing outreach services, providing standards development assistance, or conducting research and development with the public safety 

community with respect to wireless communications. The Under 

Secretary shall transmit a report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce containing the Under 

Secretary’s findings, conclusions, and recommendations from the 

study.

COMMUNICATIONS ACT OF 1934

TITLE III—PROVISIONS RELATING TO RADIO

PART I—GENERAL PROVISIONS

* * * * * * * 

SEC. 303. POWERS AND DUTIES OF COMMISSION. 

[47 U.S.C. 303]

Except as otherwise provided in this Act, the Commission from 

time to time, as public convenience, interest, or necessity requires, 

shall— 

(a) Classify radio stations; 

(b) Prescribe the nature of the service to be rendered by each 

class of licensed stations and each station within any class; 

(c) Assign bands of frequencies to the various classes of stations, and assign frequencies for each individual station and 

determine the power which each station shall use and the time 

during which it may operate; 

(d) Determine the location of classes of stations or individual 

stations; 

(e) Regulate the kind of apparatus to be used with respect 

to its external effects and the purity and sharpness of the 

emissions from each station and from the apparatus therein; 

17

(f) Make such regulations not inconsistent with law as it 

may deem necessary to prevent interference between stations 

and to carry out the provisions of this Act: Provided, however, 

That changes in the frequencies, authorized power, or in the 

times of operation of any station, shall not be made without 

the consent of the station licensee unless the Commission shall 

determine that such changes will promote public convenience 

or interest or will serve public necessity, or the provisions of 

this Act will be more fully complied with; 

(g) Study new uses for radio, provide for experimental uses 

of frequencies, and generally encourage the larger and more effective use of radio in the public interest; 

(h) Have authority to establish areas or zones to be served 

by any station; 

(i) Have authority to make special regulations applicable to 

radio stations engaged in chain broadcasting; 

(j) Have authority to make general rules and regulations requiring stations to keep such records of programs, transmissions of energy, communications, or signals as it may deem 

desirable; 

(k) Have authority to exclude from the requirements of any 

regulations in whole or in part any radio station upon railroad 

rolling stock, or to modify such regulations in its discretion; 

(l)(1) Have authority to prescribe the qualifications of station 

operators, to classify them according to the duties to be performed, to fix the forms of such licenses, and to issue them to 

persons who are found to be qualified by the Commission and 

who otherwise are legally eligible for employment in the 

United States; except that such requirement relating to eligibility for employment in the United States shall not apply in 

the case of licenses issued by the Commission to (A) persons 

holding United States pilot certificates; or (B) persons holding 

foreign aircraft pilot certificates which are valid in the United 

States, if the foreign government involved has entered into a 

reciprocal agreement under which such foreign government 

does not impose any similar requirement relating to eligibility 

for employment upon citizens of the United States; 

(2) Notwithstanding paragraph (1) of this subsection, an individual to whom a radio station is licensed under the provisions of this Act may be issued an operator’s license to operate 

that station. 

(3) In addition to amateur operator licenses which the Commission may issue to aliens pursuant to paragraph (2) of this 

subsection, and notwithstanding section 301 of this Act and 

paragraph (1) of this subsection, the Commission may issue authorizations, under such conditions and terms as it may prescribe, to permit an alien licensed by his government as an 

amateur radio operator to operate his amateur radio station licensed by his government in the United States, its possessions, 

and the Commonwealth of Puerto Rico provided there is in effect a multilateral or bilateral agreement, to which the United 

States and the alien’s government are parties, for such operation on a reciprocal basis by United States amateur radio operators. Other provisions of this Act and of the Administrative 

Procedure Act shall not be applicable to any request or applicaVerDate jul 14 2003 19:59 Dec 10, 2004 Jkt 039010 PO 00000 Frm 00019 Fmt 6659 Sfmt 6601 E:\HR\OC\SR428.XXX SR428
18

tion for or modification, suspension, or cancellation of any such 

authorization. 

(m)(1) Have authority to suspend the license of any operator 

upon proof sufficient to satisfy the Commission that the licensee—

(A) has violated, or caused, aided, or abetted the violation of, any provision of any Act, treaty, or convention 

binding on the United States, which the Commission is authorized to administer, or any regulation made by the 

Commission under any such Act, treaty, or convention; or 

(B) has failed to carry out a lawful order of the master 

or person lawfully in charge of the ship or aircraft on 

which he is employed; or 

(C) has willfully damaged or permitted radio apparatus 

or installations to be damaged; or 

(D) has transmitted superfluous radio communications 

or signals or communications containing profane or obscene words, language, or meaning, or has knowingly 

transmitted—

(i) false or deceptive signals or communications, or 

(ii) a call signal or letter which has not been assigned by proper authority to the station he is operating; or 

(E) has willfully or maliciously interfered with any other 

radio communications or signals; or 

(F) has obtained or attempted to obtain, or has assisted 

another to obtain or attempt to obtain, an operator’s license by fraudulent means. 

(2) No order of suspension of any operator’s license shall take 

effect until fifteen days’ notice in writing thereof, stating the 

cause for the proposed suspension, has been given to the operator licensee who may make written application to the Commission at any time within said fifteen days for a hearing upon 

such order. The notice to the operator licensee shall not be effective until actually received by him, and from that time he 

shall have fifteen days in which to mail the said application. 

In the event that physical conditions prevent mailing of the application at the expiration of the fifteen-day period, the application shall then be mailed as soon as possible thereafter, accompanied by a satisfactory explanation of the delay. Upon receipt by the Commission of such application for hearing, said 

order of suspension shall be held in abeyance until the conclusion of the hearing which shall be conducted under such rules 

as the Commission may prescribe. Upon the conclusion of said 

hearing the Commission may affirm, modify, or revoke said 

order of suspension. 

(n) Have authority to inspect all radio installations associated with stations required to be licensed by any Act, or which 

the Commission by rule has authorized to operate without a license under section 307(e)(1); or which are subject to the provisions of any Act, treaty, or convention binding on the United 

States, to ascertain whether in construction, installation, and 

operation they conform to the requirements of the rules and 

regulations of the Commission, the provisions of any Act, the 

terms of any treaty or convention binding on the United 

19

States, and the conditions of the license or other instrument of 

authorization under which they are constructed, installed, or 

operated. 

(o) Have authority to designate call letters of all stations; 

(p) Have authority to cause to be published such call letters 

and such other announcements and data as in the judgment of 

the Commission may be required for the efficient operation of 

radio stations subject to the jurisdiction of the United States 

and for the proper enforcement of this Act; 

(q) Have authority to require the painting and/or illumination of radio towers if and when in its judgment such towers 

constitute, or there is a reasonable possibility that they may 

constitute, a menace to air navigation. The permittee or licensee, and the tower owner in any case in which the owner 

is not the permittee or licensee, shall maintain the painting 

and/or illumination of the tower as prescribed by the Commission pursuant to this section. In the event that the tower 

ceases to be licensed by the Commission for the transmission 

of radio energy, the owner of the tower shall maintain the prescribed painting and/or illumination of such tower until it is 

dismantled, and the Commission may require the owner to dismantle and remove the tower when the Administrator of the 

Federal Aviation Agency determines that there is a reasonable 

possibility that it may constitute a menace to air navigation. 

(r) Make such rules and regulations and prescribe such restrictions and conditions, not inconsistent with law, as may be 

necessary to carry out the provisions of this Act, or any international radio or wire communications treaty or convention, or 

regulations annexed thereto, including any treaty or convention insofar as it relates to the use of radio, to which the 

United States is or may hereafter become a party. 

(s) Have authority to require that apparatus designed to receive television pictures broadcast simultaneously with sound 

be capable of adequately receiving all frequencies allocated by 

the Commission to television broadcasting when such apparatus is shipped in interstate commerce, or is imported from 

any foreign country into the United States, for sale or resale 

to the public. 

(t) Notwithstanding the provisions of section 301(e), have authority, in any case in which an aircraft registered in the 

United States is operated (pursuant to a lease, charter, or 

similar arrangement) by an aircraft operator who is subject to 

regulation by the government of a foreign nation, to enter into 

an agreement with such government under which the Commission shall recognize and accept any radio station licenses and 

radio operator licenses issued by such government with respect 

to such aircraft. 

(u) Require that apparatus designed to receive television pictures broadcast simultaneously with sound be equipped with 

built-in decoder circuitry designed to display closed-captioned 

television transmissions when such apparatus is manufactured 

in the United States or imported for use in the United States, 

and its television picture screen is 13 inches or greater in size. 

(v) Have exclusive jurisdiction to regulate the provision of direct-to-home satellite services. As used in this subsection, the 

20

term ‘‘direct-to-home satellite services’’ means the distribution 

or broadcasting of programming or services by satellite directly 

to the subscriber’s premises without the use of ground receiving or distribution equipment, except at the subscriber’s premises or in the uplink process to the satellite. 

(w) [Omitted] 

(x) Require, in the case of an apparatus designed to receive 

television signals that are shipped in interstate commerce or 

manufactured in the United States and that have a picture 

screen 13 inches or greater in size (measured diagonally), that 

such apparatus be equipped with a feature designed to enable 

viewers to block display of all programs with a common rating, 

except as otherwise permitted by regulations pursuant to section 330(c)(4). 

(y) Have authority to allocate electromagnetic spectrum so as 

to provide flexibility of use, if—

(1) such use is consistent with international agreements 

to which the United States is a party; and 

(2) the Commission finds, after notice and an opportunity for public comment, that—

(A) such an allocation would be in the public interest; 

(B) such use would not deter investment in communications services and systems, or technology development; and 

(C) such use would not result in harmful interference among users.

(z) Require that any apparatus described in paragraph (s) sold 

or offered for sale in or affecting interstate commerce after September 30, 2005, that is incapable of receiving and displaying a digital television broadcast signal without the use of an external device 

that translates digital television broadcast signals into analog television broadcast signals have affixed to it and, if it is sold or offered 

for sale in a container, affixed to that container, a label that states 

that the apparatus will be incapable of displaying over-the-air television broadcast signals received after December 31, 2008, without 

the purchase of additional equipment.

* * * * * * *

SEC. 309. APPLICATION FOR LICENSE. 

[47 U.S.C. 309]

(a) CONSIDERATIONS IN GRANTING APPLICATION.—Subject to the 

provisions of this section, the Commission shall determine, in the 

case of each application filed with it to which section 308 applies, 

whether the public interest, convenience, and necessity will be 

served by the granting of such application, and, if the Commission, 

upon examination of such application and upon consideration of 

such other matters as the Commission may officially notice, shall 

find that public interest, convenience, and necessity would be 

served by the granting thereof, it shall grant such application. 

(b) TIME OF GRANTING APPLICATION.—Except as provided in subsection (c) of this section, no such application—

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

in the broadcasting or common carrier services, or 

21

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

in any of the following categories: 

(A) industrial radio positioning stations for which frequencies are assigned on an exclusive basis, 

(B) aeronautical en route stations, 

(C) aeronautical advisory stations, 

(D) airdrome control stations, 

(E) aeronautical fixed stations, and 

(F) such other stations or classes of stations, not in the 

broadcasting or common carrier services, as the Commission shall by rule prescribe, shall be granted by the Commission earlier than thirty days following issuance of public notice by the Commission of the acceptance for filing of 

such application or of any substantial amendment thereof. 

(c) APPLICATIONS NOT AFFECTED BY SUBSECTION (B).—Subsection 

(b) of this section shall not apply—

(1) to any minor amendment of an application to which such 

subsection is applicable, or 

(2) to any application for—

(A) a minor change in the facilities of an authorized station, 

(B) consent to an involuntary assignment or transfer 

under section 310(b) or to an assignment or transfer thereunder which does not involve a substantial change in ownership or control, 

(C) a license under section 319(c) or, pending application 

for or grant of such license, any special or temporary authorization to permit interim operation to facilitate completion of authorized construction or to provide substantially the same service as would be authorized by such license, 

(D) extension of time to complete construction of authorized facilities, 

(E) an authorization of facilities for remote pickups, studio links and similar facilities for use in the operation of 

a broadcast station, 

(F) authorizations pursuant to section 325(c) where the 

programs to be transmitted are special events not of a continuing nature, 

(G) a special temporary authorization for nonbroadcast 

operation not to exceed thirty days where no application 

for regular operation is contemplated to be filed or not to 

exceed sixty days pending the filing of an application for 

such regular operation, or 

(H) an authorization under any of the proviso clauses of 

section 308(a). 

(d) PETITION TO DENY APPLICATION; TIME; CONTENTS; REPLY; 

FINDINGS.—

(1) Any party in interest may file with the Commission a petition to deny any application (whether as originally filed or as 

amended) to which subsection (b) of this section applies at any 

time prior to the day of Commission grant thereof without 

hearing or the day of formal designation thereof for hearing; 

except that with respect to any classification of applications, 

the Commission from time to time by rule may specify a shortVerDate jul 14 2003 19:59 Dec 10, 2004 Jkt 039010 PO 00000 Frm 00023 Fmt 6659 Sfmt 6601 E:\HR\OC\SR428.XXX SR428
22

er period (no less than thirty days following the issuance of 

public notice by the Commission of the acceptance for filing of 

such application or of any substantial amendment thereof), 

which shorter period shall be reasonably related to the time 

when the applications would normally be reached for processing. The petitioner shall serve a copy of such petition on the 

applicant. The petition shall contain specific allegations of fact 

sufficient to show that the petitioner is a party in interest and 

that a grant of the application would be prima facie inconsistent with subsection (a) (or subsection (k) in the case of renewal of any broadcast station license). Such allegations of fact 

shall, except for those of which official notice may be taken, be 

supported by affidavit of a person or persons with personal 

knowledge thereof. The applicant shall be given the opportunity to file a reply in which allegations of fact or denials 

thereof shall similarly be supported by affidavit. 

(2) If the Commission finds on the basis of the application, 

the pleadings filed, or other matters which it may officially notice that there are no substantial and material questions of 

fact and that a grant of the application would be consistent 

with subsection (a) (or subsection (k) in the case of renewal of 

any broadcast station license), it shall make the grant, deny 

the petition, and issue a concise statement of the reasons for 

denying the petition, which statement shall dispose of all substantial issues raised by the petition. If a substantial and material question of fact is presented or if the Commission for any 

reason is unable to find that grant of the application would be 

consistent with subsection (a) (or subsection (k) in the case of 

renewal of any broadcast station license), it shall proceed as 

provided in subsection (e). 

(e) HEARINGS; INTERVENTION; EVIDENCE; BURDEN OF PROOF.—If, 

in the case of any application to which subsection (a) of this section 

applies, a substantial and material question of fact is presented or 

the Commission for any reason is unable to make the finding specified in such subsection, it shall formally designate the application 

for hearing on the ground or reasons then obtaining and shall 

forthwith notify the applicant and all other known parties in interest of such action and the grounds and reasons therefor, specifying 

with particularity the matters and things in issue but not including 

issues or requirements phrased generally. When the Commission 

has so designated an application for hearing the parties in interest, 

if any, who are not notified by the Commission of such action may 

acquire the status of a party to the proceeding thereon by filing a 

petition for intervention showing the basis for their interest not 

more than thirty days after publication of the hearing issues or any 

substantial amendment thereto in the Federal Register. Any hearing subsequently held upon such application shall be a full hearing 

in which the applicant and all other parties in interest shall be permitted to participate. The burden of proceeding with the introduction of evidence and the burden of proof shall be upon the applicant, except that with respect to any issue presented by a petition 

to deny or a petition to enlarge the issues, such burdens shall be 

as determined by the Commission. 

(f) TEMPORARY AUTHORIZATION OF OPERATIONS UNDER SUBSECTION (b).—When an application subject to subsection (b) has 

23

been filed, the Commission, notwithstanding the requirements of 

such subsection, may, if the grant of such application is otherwise 

authorized by law and if it finds that there are extraordinary circumstances requiring temporary operations in the public interest 

and that delay in the institution of such temporary operations 

would seriously prejudice the public interest, grant a temporary authorization, accompanied by a statement of its reasons therefor, to 

permit such temporary operations for a period not exceeding 180 

days, and upon making like findings may extend such temporary 

authorization for additional periods not to exceed 180 days. When 

any such grant of a temporary authorization is made, the Commission shall give expeditious treatment to any timely filed petition to 

deny such application and to any petition for rehearing of such 

grant filed under section 405. 

(g) CLASSIFICATION OF APPLICATIONS.—The Commission is authorized to adopt reasonable classifications of applications and 

amendments in order to effectuate the purposes of this section. 

(h) FORM AND CONDITIONS OF STATION LICENSES.—Such station 

licenses as the Commission may grant shall be in such general 

form as it may prescribe, but each license shall contain, in addition 

to other provisions, a statement of the following conditions to which 

such license shall be subject: 

(1) The station license shall not vest in the licensee any right 

to operate the station nor any right in the use of the frequencies designated in the license beyond the term thereof nor 

in any other manner than authorized therein; 

(2) neither the license nor the right granted thereunder shall 

be assigned or otherwise transferred in violation of this Act; 

(3) every license issued under this Act shall be subject in 

terms to the right of use or control conferred by section 706 of 

this Act. 

(i) RANDOM SELECTION.—

(1) GENERAL AUTHORITY.—Except as provided in paragraph 

(5), if there is more than one application for any initial license 

or construction permit, then the Commission shall have the authority to grant such license or permit to a qualified applicant 

through the use of a system of random selection. 

(2) No license or construction permit shall be granted to an 

applicant selected pursuant to paragraph (1) unless the Commission determines the qualifications of such applicant pursuant to subsection (a) and section 308(b). When substantial and 

material questions of fact exist concerning such qualifications, 

the Commission shall conduct a hearing in order to make such 

determinations. For the purpose of making such determinations, the Commission may, by rule, and notwithstanding any 

other provision of law—

(A) adopt procedures for the submission of all or part of 

the evidence in written form; 

(B) delegate the function of presiding at the taking of 

the evidence to Commission employees other than administrative law judges; and 

(C) omit the determination required by subsection (a) 

with respect to any application other than the one selected 

pursuant to paragraph (1). 

24

(3)(A) The Commission shall establish rules and procedures 

to ensure that, in the administration of any system of random 

selection under this subsection used for granting licenses or 

construction permits for any media of mass communications, 

significant preferences will be granted to applicants or groups 

of applicants, the grant to which of the license or permit would 

increase the diversification of ownership of the media of mass 

communications. To further diversify the ownership of the 

media of mass communications, an additional significant preference shall be granted to any applicant controlled by a member or members of a minority group. 

(B) The Commission shall have authority to require each 

qualified applicant seeking a significant preference under subparagraph (A) to submit to the Commission such information 

as may be necessary to enable the Commission to make a determination regarding whether such applicant shall be granted 

such preference. Such information shall be submitted in such 

form, at such times, and in accordance with such procedures, 

as the Commission may require. 

(C) For purposes of this paragraph: 

(i) The term ‘‘media of mass communications’’ includes 

television, radio, cable television, multipoint distribution 

service, direct broadcast satellite service, and other services, the licensed facilities of which may be substantially 

devoted toward providing programming or other information services within the editorial control of the licensee. 

(ii) The term ‘‘minority group’’ includes Blacks, Hispanics, American Indians, Alaska Natives, Asians, and Pacific Islanders. 

(4)(A) The Commission shall, after notice and opportunity for 

hearing, prescribe rules establishing a system of random selection for use by the Commission under this subsection in any 

instance in which the Commission, in its discretion, determines 

that such use is appropriate for the granting of any license or 

permit in accordance with paragraph (1). 

(B) The Commission shall have authority to amend such 

rules from time to time to the extent necessary to carry out the 

provisions of this subsection. Any such amendment shall be 

made after notice and opportunity for hearing. 

(C) Not later than 180 days after the date of enactment of 

this subparagraph, the Commission shall prescribe such transfer disclosures and antitrafficking restrictions and payment 

schedules as are necessary to prevent the unjust enrichment of 

recipients of licenses or permits as a result of the methods employed to issue licenses under this subsection. 

(5) TERMINATION OF AUTHORITY.—

(A) Except as provided in subparagraph (B), the Commission shall not issue any license or permit using a system of random selection under this subsection after July 1, 

1997. 

(B) Subparagraph (A) of this paragraph shall not apply 

with respect to licenses or permits for stations described in 

section 397(6) of this Act. 

(j) USE OF COMPETITIVE BIDDING.—

25

(1) GENERAL AUTHORITY.—If, consistent with the obligations 

described in paragraph (6)(E), mutually exclusive applications 

are accepted for any initial license or construction permit, 

then, except as provided in paragraph (2), the Commission 

shall grant the license or permit to a qualified applicant 

through a system of competitive bidding that meets the requirements of this subsection. 

(2) EXEMPTIONS.—The competitive bidding authority granted 

by this subsection shall not apply to licenses or construction 

permits issued by the Commission—

(A) for public safety radio services, including private internal radio services used by State and local governments 

and non-government entities and including emergency 

road services provided by not-for-profit organizations, 

that—

(i) are used to protect the safety of life, health, or 

property; and 

(ii) are not made commercially available to the public; 

(B) for initial licenses or construction permits for digital 

television service given to existing terrestrial broadcast licensees to replace their analog television service licenses; 

or 

(C) for stations described in section 397(6) of this Act. 

(3) DESIGN OF SYSTEMS OF COMPETITIVE BIDDING.—For each 

class of licenses or permits that the Commission grants 

through the use of a competitive bidding system, the Commission shall, by regulation, establish a competitive bidding methodology. The Commission shall seek to design and test multiple 

alternative methodologies under appropriate circumstances. 

The Commission shall, directly or by contract, provide for the 

design and conduct (for purposes of testing) of competitive bidding using a contingent combinatorial bidding system that permits prospective bidders to bid on combinations or groups of licenses in a single bid and to enter multiple alternative bids 

within a single bidding round. In identifying classes of licenses 

and permits to be issued by competitive bidding, in specifying 

eligibility and other characteristics of such licenses and permits, and in designing the methodologies for use under this 

subsection, the Commission shall include safeguards to protect 

the public interest in the use of the spectrum and shall seek 

to promote the purposes specified in section 1 of this Act and 

the following objectives: 

(A) the development and rapid deployment of new technologies, products, and services for the benefit of the public, including those residing in rural areas, without administrative or judicial delays; 

(B) promoting economic opportunity and competition and 

ensuring that new and innovative technologies are readily 

accessible to the American people by avoiding excessive 

concentration of licenses and by disseminating licenses 

among a wide variety of applicants, including small businesses, rural telephone companies, and businesses owned 

by members of minority groups and women; 

26

(C) recovery for the public of a portion of the value of the 

public spectrum resource made available for commercial 

use and avoidance of unjust enrichment through the methods employed to award uses of that resource; 

(D) efficient and intensive use of the electromagnetic 

spectrum; and 

(E) ensure that, in the scheduling of any competitive bidding under this subsection, an adequate period is allowed—

(i) before issuance of bidding rules, to permit notice 

and comment on proposed auction procedures; and 

(ii) after issuance of bidding rules, to ensure that interested parties have a sufficient time to develop business plans, assess market conditions, and evaluate the 

availability of equipment for the relevant services. 

(4) CONTENTS OF REGULATIONS.—In prescribing regulations 

pursuant to paragraph (3), the Commission shall—

(A) consider alternative payment schedules and methods 

of calculation, including lump sums or guaranteed installment payments, with or without royalty payments, or 

other schedules or methods that promote the objectives described in paragraph (3)(B), and combinations of such 

schedules and methods; 

(B) include performance requirements, such as appropriate deadlines and penalties for performance failures, to 

ensure prompt delivery of service to rural areas, to prevent 

stockpiling or warehousing of spectrum by licensees or permittees, and to promote investment in and rapid deployment of new technologies and services; 

(C) consistent with the public interest, convenience, and 

necessity, the purposes of this Act, and the characteristics 

of the proposed service, prescribe area designations and 

bandwidth assignments that promote (i) an equitable distribution of licenses and services among geographic areas, 

(ii) economic opportunity for a wide variety of applicants, 

including small businesses, rural telephone companies, 

and businesses owned by members of minority groups and 

women, and (iii) investment in and rapid deployment of 

new technologies and services; 

(D) ensure that small businesses, rural telephone companies, and businesses owned by members of minority groups 

and women are given the opportunity to participate in the 

provision of spectrum-based services, and, for such purposes, consider the use of tax certificates, bidding preferences, and other procedures; 

(E) require such transfer disclosures and antitrafficking 

restrictions and payment schedules as may be necessary to 

prevent unjust enrichment as a result of the methods employed to issue licenses and permits; and 

(F) prescribe methods by which a reasonable reserve 

price will be required, or a minimum bid will be established, to obtain any license or permit being assigned pursuant to the competitive bidding, unless the Commission 

determines that such a reserve price or minimum bid is 

not in the public interest. 

27

(5) BIDDER AND LICENSEE QUALIFICATION.—No person shall 

be permitted to participate in a system of competitive bidding 

pursuant to this subsection unless such bidder submits such 

information and assurances as the Commission may require to 

demonstrate that such bidder’s application is acceptable for filing. No license shall be granted to an applicant selected pursuant to this subsection unless the Commission determines that 

the applicant is qualified pursuant to subsection (a) and sections 308(b) and 310. Consistent with the objectives described 

in paragraph (3), the Commission shall, by regulation, prescribe expedited procedures consistent with the procedures authorized by subsection (i)(2) for the resolution of any substantial and material issues of fact concerning qualifications. 

(6) RULES OF CONSTRUCTION.—Nothing in this subsection, or 

in the use of competitive bidding, shall—

(A) alter spectrum allocation criteria and procedures established by the other provisions of this Act; 

(B) limit or otherwise affect the requirements of subsection (h) of this section, section 301, 304, 307, 310, or 

706, or any other provision of this Act (other than subsections (d)(2) and (e) of this section); 

(C) diminish the authority of the Commission under the 

other provisions of this Act to regulate or reclaim spectrum 

licenses; 

(D) be construed to convey any rights, including any expectation of renewal of a license, that differ from the rights 

that apply to other licenses within the same service that 

were not issued pursuant to this subsection; 

(E) be construed to relieve the Commission of the obligation in the public interest to continue to use engineering 

solutions, negotiation, threshold qualifications, service regulations, and other means in order to avoid mutual exclusivity in application and licensing proceedings; 

(F) be construed to prohibit the Commission from 

issuing nationwide, regional, or local licenses or permits; 

(G) be construed to prevent the Commission from awarding licenses to those persons who make significant contributions to the development of a new telecommunications 

service or technology; or 

(H) be construed to relieve any applicant for a license or 

permit of the obligation to pay charges imposed pursuant 

to section 8 of this Act. 

(7) CONSIDERATION OF REVENUES IN PUBLIC INTEREST DETERMINATIONS.—

(A) CONSIDERATION PROHIBITED.—In making a decision 

pursuant to section 303(c) to assign a band of frequencies 

to a use for which licenses or permits will be issued pursuant to this subsection, and in prescribing regulations pursuant to paragraph (4)(C) of this subsection, the Commission may not base a finding of public interest, convenience, 

and necessity on the expectation of Federal revenues from 

the use of a system of competitive bidding under this subsection. 

(B) CONSIDERATION LIMITED.—In prescribing regulations 

pursuant to paragraph (4)(A) of this subsection, the ComVerDate jul 14 2003 19:59 Dec 10, 2004 Jkt 039010 PO 00000 Frm 00029 Fmt 6659 Sfmt 6601 E:\HR\OC\SR428.XXX SR428
28

mission may not base a finding of public interest, convenience, and necessity solely or predominantly on the expectation of Federal revenues from the use of a system of 

competitive bidding under this subsection. 

(C) CONSIDERATION OF DEMAND FOR SPECTRUM NOT AF- FECTED.—Nothing in this paragraph shall be construed to 

prevent the Commission from continuing to consider consumer demand for spectrum-based services. 

(8) TREATMENT OF REVENUES.— (A) GENERAL RULE.—Except as provided in subparagraph (B) or subparagraph (D), all proceeds from the use 

of a competitive bidding system under this subsection shall 

be deposited in the Treasury in accordance with chapter 33 

of title 31, United States Code. 

(B) RETENTION OF REVENUES.—Notwithstanding subparagraph (A), the salaries and expenses account of the 

Commission shall retain as an offsetting collection such 

sums as may be necessary from such proceeds for the costs 

of developing and implementing the program required by 

this subsection. Such offsetting collections shall be available for obligation subject to the terms and conditions of 

the receiving appropriations account, and shall be deposited in such accounts on a quarterly basis. Such offsetting 

collections are authorized to remain available until expended. No sums may be retained under this subparagraph during any fiscal year beginning after September 

30, 1998, if the annual report of the Commission under 

section 4(k) for the second preceding fiscal year fails to include in the itemized statement required by paragraph (3) 

of such section a statement of each expenditure made for 

purposes of conducting competitive bidding under this subsection during such second preceding fiscal year. 

(C) DEPOSIT AND USE OF AUCTION ESCROW ACCOUNTS.— Any deposits the Commission may require for the qualification of any person to bid in a system of competitive bidding pursuant to this subsection shall be deposited in an 

interest bearing account at a financial institution designated for purposes of this subsection by the Commission 

(after consultation with the Secretary of the Treasury). 

Within 45 days following the conclusion of the competitive 

bidding—

(i) the deposits of successful bidders shall be paid to 

the Treasury; 

(ii) the deposits of unsuccessful bidders shall be returned to such bidders; and 

(iii) the interest accrued to the account shall be 

transferred to the Telecommunications Development 

Fund established pursuant to section 714 of this Act.

(D) DISPOSITION OF CASH PROCEEDS FROM AUCTION OF

CHANNELS 52 THROUGH 69.—Cash proceeds attributable to 

the auction of any eligible frequencies between 698 and 806 

megaHertz on the electromagnetic spectrum conducted after 

the date of enactment of the SAVE LIVES Act shall be deposited in the Digital Transition Consumer Assistance 

Fund established under section 7 of that Act.

29

(9) USE OF FORMER GOVERNMENT SPECTRUM.—The Commission shall, not later than 5 years after the date of enactment 

of this subsection, issue licenses and permits pursuant to this 

subsection for the use of bands of frequencies that—

(A) in the aggregate span not less than 10 megahertz; 

and 

(B) have been reassigned from Government use pursuant 

to part B of the National Telecommunications and Information Administration Organization Act. 

(10) AUTHORITY CONTINGENT ON AVAILABILITY OF ADDITIONAL

SPECTRUM.—

(A) INITIAL CONDITIONS.—The Commission’s authority to 

issue licenses or permits under this subsection shall not 

take effect unless—

(i) the Secretary of Commerce has submitted to the 

Commission the report required by section 113(d)(1) of 

the National Telecommunications and Information Administration Organization Act; 

(ii) such report recommends for immediate reallocation bands of frequencies that, in the aggregate, span 

not less than 50 megahertz; 

(iii) such bands of frequencies meet the criteria required by section 113(a) of such Act; and 

(iv) the Commission has completed the rulemaking 

required by section 332(c)(1)(D) of this Act. 

(B) SUBSEQUENT CONDITIONS.—The Commission’s authority to issue licenses or permits under this subsection 

on and after 2 years after the date of the enactment of this 

subsection shall cease to be effective if—

(i) the Secretary of Commerce has failed to submit 

the report required by section 113(a) of the National 

Telecommunications and Information Administration 

Organization Act; 

(ii) the President has failed to withdraw and limit 

assignments of frequencies as required by paragraphs 

(1) and (2) of section 114(a) of such Act; 

(iii) the Commission has failed to issue the regulations required by section 115(a) of such Act; 

(iv) the Commission has failed to complete and submit to Congress, not later than 18 months after the 

date of enactment of this subsection, a study of current and future spectrum needs of State and local government public safety agencies through the year 2010, 

and a specific plan to ensure that adequate frequencies are made available to public safety licensees; 

or 

(v) the Commission has failed under section 

332(c)(3) to grant or deny within the time required by 

such section any petition that a State has filed within 

90 days after the date of enactment of this subsection; 

until such failure has been corrected. 

(11) TERMINATION.—The authority of the Commission to 

grant a license or permit under this subsection shall expire 

September 30, 2007. 

30

(12) EVALUATION.—Not later than September 30, 1997, the 

Commission shall conduct a public inquiry and submit to the 

Congress a report—

(A) containing a statement of the revenues obtained, and 

a projection of the future revenues, from the use of competitive bidding systems under this subsection; 

(B) describing the methodologies established by the 

Commission pursuant to paragraphs (3) and (4); 

(C) comparing the relative advantages and disadvantages of such methodologies in terms of attaining the objectives described in such paragraphs; 

(D) evaluating whether and to what extent—

(i) competitive bidding significantly improved the efficiency and effectiveness of the process for granting 

radio spectrum licenses; 

(ii) competitive bidding facilitated the introduction 

of new spectrum-based technologies and the entry of 

new companies into the telecommunications market; 

(iii) competitive bidding methodologies have secured 

prompt delivery of service to rural areas and have adequately addressed the needs of rural spectrum users; 

and 

(iv) small businesses, rural telephone companies, 

and businesses owned by members of minority groups 

and women were able to participate successfully in the 

competitive bidding process; and 

(E) recommending any statutory changes that are needed to improve the competitive bidding process. 

(13) RECOVERY OF VALUE OF PUBLIC SPECTRUM IN CONNECTION WITH PIONEER PREFERENCES.—

(A) IN GENERAL.—Notwithstanding paragraph (6)(G), the 

Commission shall not award licenses pursuant to a preferential treatment accorded by the Commission to persons 

who make significant contributions to the development of 

a new telecommunications service or technology, except in 

accordance with the requirements of this paragraph. 

(B) RECOVERY OF VALUE.—The Commission shall recover 

for the public a portion of the value of the public spectrum 

resource made available to such person by requiring such 

person, as a condition for receipt of the license, to agree to 

pay a sum determined by—

(i) identifying the winning bids for the licenses that 

the Commission determines are most reasonably comparable in terms of bandwidth, scope of service area, 

usage restrictions, and other technical characteristics 

to the license awarded to such person, and excluding 

licenses that the Commission determines are subject 

to bidding anomalies due to the award of preferential 

treatment; 

(ii) dividing each such winning bid by the population 

of its service area (hereinafter referred to as the per 

capita bid amount); 

(iii) computing the average of the per capita bid 

amounts for the licenses identified under clause (i); 

31

(iv) reducing such average amount by 15 percent; 

and 

(v) multiplying the amount determined under clause 

(iv) by the population of the service area of the license 

obtained by such person. 

(C) INSTALLMENTS PERMITTED.—The Commission shall 

require such person to pay the sum required by subparagraph (B) in a lump sum or in guaranteed installment payments, with or without royalty payments, over a period of 

not more than 5 years. 

(D) RULEMAKING ON PIONEER PREFERENCES.—Except 

with respect to pending applications described in clause 

(iv) of this subparagraph, the Commission shall prescribe 

regulations specifying the procedures and criteria by which 

the Commission will evaluate applications for preferential 

treatment in its licensing processes (by precluding the filing of mutually exclusive applications) for persons who 

make significant contributions to the development of a new 

service or to the development of new technologies that substantially enhance an existing service. Such regulations 

shall—

(i) specify the procedures and criteria by which the 

significance of such contributions will be determined, 

after an opportunity for review and verification by experts in the radio sciences drawn from among persons 

who are not employees of the Commission or by any 

applicant for such preferential treatment; 

(ii) include such other procedures as may be necessary to prevent unjust enrichment by ensuring that 

the value of any such contribution justifies any reduction in the amounts paid for comparable licenses 

under this subsection; 

(iii) be prescribed not later than 6 months after the 

date of enactment of this paragraph; 

(iv) not apply to applications that have been accepted for filing on or before September 1, 1994; and 

(v) cease to be effective on the date of the expiration 

of the Commission’s authority under subparagraph 

(F). 

(E) IMPLEMENTATION WITH RESPECT TO PENDING APPLICATIONS.—In applying this paragraph to any broadband licenses in the personal communications service awarded 

pursuant to the preferential treatment accorded by the 

Federal Communications Commission in the Third Report 

and Order in General Docket 90-314 (FCC 93-550, released 

February 3, 1994)—

(i) the Commission shall not reconsider the award of 

preferences in such Third Report and Order, and the 

Commission shall not delay the grant of licenses based 

on such awards more than 15 days following the date 

of enactment of this paragraph, and the award of such 

preferences and licenses shall not be subject to administrative or judicial review; 

32

(ii) the Commission shall not alter the bandwidth or 

service areas designated for such licenses in such 

Third Report and Order; 

(iii) except as provided in clause (v), the Commission 

shall use, as the most reasonably comparable licenses 

for purposes of subparagraph (B)(i), the broadband licenses in the personal communications service for 

blocks A and B for the 20 largest markets (ranked by 

population) in which no applicant has obtained preferential treatment; 

(iv) for purposes of subparagraph (C), the Commission shall permit guaranteed installment payments 

over a period of 5 years, subject to—

(I) the payment only of interest on unpaid balances during the first 2 years, commencing not 

later than 30 days after the award of the license 

(including any preferential treatment used in 

making such award) is final and no longer subject 

to administrative or judicial review, except that no 

such payment shall be required prior to the date 

of completion of the auction of the comparable licenses described in clause (iii); and 

(II) payment of the unpaid balance and interest 

thereon after the end of such 2 years in accordance with the regulations prescribed by the Commission; and 

(v) the Commission shall recover with respect to 

broadband licenses in the personal communications 

service an amount under this paragraph that is equal 

to not less than $400,000,000, and if such amount is 

less than $400,000,000, the Commission shall recover 

an amount equal to $400,000,000 by allocating such 

amount among the holders of such licenses based on 

the population of the license areas held by each licensee. The Commission shall not include in any 

amounts required to be collected under clause (v) the 

interest on unpaid balances required to be collected 

under clause (iv). 

(F) EXPIRATION.—The authority of the Commission to 

provide preferential treatment in licensing procedures (by 

precluding the filing of mutually exclusive applications) to 

persons who make significant contributions to the development of a new service or to the development of new technologies that substantially enhance an existing service 

shall expire on the date of enactment of the Balanced 

Budget Act of 1997. 

(G) EFFECTIVE DATE.—This paragraph shall be effective 

on the date of its enactment and apply to any licenses 

issued on or after August 1, 1994, by the Federal Communications Commission pursuant to any licensing procedure 

that provides preferential treatment (by precluding the filing of mutually exclusive applications) to persons who 

make significant contributions to the development of a new 

service or to the development of new technologies that substantially enhance an existing service. 

33

(14) AUCTION OF RECAPTURED BROADCAST TELEVISION SPECTRUM.—

(A) LIMITATIONS ON TERMS OF TERRESTRIAL TELEVISION

BROADCAST LICENSES.—A television broadcast license that 

authorizes analog television service may not be renewed to 

authorize such service for a period that extends beyond 

December 31, 2006. 

(B) EXTENSION.—The Commission shall extend the date 

described in subparagraph (A) for any station that requests such extension in any television market if the Commission finds that—

(i) one or more of the stations in such market that 

are licensed to or affiliated with one of the four largest 

national television networks are not broadcasting a 

digital television service signal, and the Commission 

finds that each such station has exercised due diligence and satisfies the conditions for an extension of 

the Commission’s applicable construction deadlines for 

digital television service in that market; 

(ii) digital-to-analog converter technology is not generally available in such market; or 

(iii) in any market in which an extension is not 

available under clause (i) or (ii), 15 percent or more of 

the television households in such market—

(I) do not subscribe to a multichannel video programming distributor (as defined in section 602) 

that carries one of the digital television service 

programming channels of each of the television 

stations broadcasting such a channel in such market; and 

(II) do not have either—

(a) at least one television receiver capable of 

receiving the digital television service signals 

of the television stations licensed in such market; or 

(b) at least one television receiver of analog 

television service signals equipped with digital-to-analog converter technology capable of 

receiving the digital television service signals 

of the television stations licensed in such market. 

(C) SPECTRUM REVERSION AND RESALE.—

(i) The Commission shall—

(I) ensure that, as licenses for analog television 

service expire pursuant to subparagraph (A) or 

(B), each licensee shall cease using electromagnetic spectrum assigned to such service according to the Commission’s direction; and 

(II) reclaim and organize the electromagnetic 

spectrum in a manner consistent with the objectives described in paragraph (3) of this subsection. 

(ii) Licensees for new services occupying spectrum 

reclaimed pursuant to clause (i) shall be assigned in 

accordance with this subsection. 

34

(D) CERTAIN LIMITATIONS ON QUALIFIED BIDDERS PROHIB- ITED.—In prescribing any regulations relating to the qualification of bidders for spectrum reclaimed pursuant to subparagraph (C)(i), the Commission, for any license that may 

be used for any digital television service where the grade 

A contour of the station is projected to encompass the entirety of a city with a population in excess of 400,000 (as 

determined using the 1990 decennial census), shall not—

(i) preclude any party from being a qualified bidder 

for such spectrum on the basis of—

(I) the Commission’s duopoly rule (47 C.F.R. 

73.3555(b)); or 

(II) the Commission’s newspaper cross-ownership rule (47 C.F.R. 73.3555(d)); or 

(ii) apply either such rule to preclude such a party 

that is a winning bidder in a competitive bidding for 

such spectrum from using such spectrum for digital 

television service.

(E) EXCEPTION TO 2006 DEADLINE.—

(i) Notwithstanding subparagraph (B), the Commission shall not grant any extension under such subparagraph from the limitation of subparagraph (A) with respect to the frequencies assigned, pursuant to section 

337(a)(1), for public safety services. The Commission 

shall take all actions necessary to complete assignment 

of the electromagnetic spectrum between 764 and 776 

megahertz and between 794 and 806 megahertz for 

public safety services and to permit operations by public safety services on those frequencies commencing no 

later than January 1, 2008. 

(ii) Beginning January 1, 2008, the Commission may 

modify or reassign the licenses of licensees assigned to 

frequencies between 758 and 764 megahertz, 776 and 

782 megahertz, and 788 and 794 megahertz as necessary to permit operations by public safety services on 

frequencies between 764 and 776 megahertz and between 794 and 806 megahertz. 

(iii) The Commission may waive the requirements of 

clauses (i) and (ii) and such other rules as necessary—

(I) in the absence of a bona fide request from relevant first responders in the affected designated 

market area (as that term is defined in section 

122(j) of title 17, United States Code); and 

(II) to the extent necessary to avoid consumer 

disruption while maximizing the ability of relevant 

public safety entities to use frequencies described 

in this subparagraph in the affected designated 

market area (as so defined).

(15) COMMISSION TO DETERMINE TIMING OF AUCTIONS.— (A) COMMISSION AUTHORITY.—Subject to the provisions 

of this subsection (including paragraph (11)), but notwithstanding any other provision of law, the Commission shall 

determine the timing of and deadlines for the conduct of 

competitive bidding under this subsection, including the 

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35

ducting auctions; collecting, depositing, and reporting revenues; and completing licensing processes and assigning licenses. 

(B) TERMINATION OF PORTIONS OF AUCTIONS 31 AND 44.—

Except as provided in subparagraph (C), the Commission 

shall not commence or conduct auctions 31 and 44 on June 

19, 2002, as specified in the public notices of March 19, 

2002, and March 20, 2002 (DA 02-659 and DA 02-563). 

(C) EXCEPTION.— (i) BLOCKS EXCEPTED.—Subparagraph (B) shall not 

apply to the auction of—

(I) the C-block of licenses on the bands of frequencies located at 710-716 megahertz, and 740- 

746 megahertz; or 

(II) the D-block of licenses on the bands of frequencies located at 716-722 megahertz. 

(ii) ELIGIBLE BIDDERS.—The entities that shall be eligible to bid in the auction of the C-block and D-block 

licenses described in clause (i) shall be those entities 

that were qualified entities, and that submitted applications to participate in auction 44, by May 8, 2002, 

as part of the original auction 44 short form filing 

deadline. 

(iii) AUCTION DEADLINES FOR EXCEPTED BLOCKS.— Notwithstanding subparagraph (B), the auction of the 

C-block and D-block licenses described in clause (i) 

shall be commenced no earlier than August 19, 2002, 

and no later than September 19, 2002, and the proceeds of such auction shall be deposited in accordance 

with paragraph (8) not later than December 31, 2002. 

(iv) REPORT.—Within one year after the date of enactment of this paragraph, the Commission shall submit a report to Congress—

(I) specifying when the Commission intends to 

reschedule auctions 31 and 44 (other than the 

blocks excepted by clause (i)); and 

(II) describing the progress made by the Commission in the digital television transition and in 

the assignment and allocation of additional spectrum for advanced mobile communications services that warrants the scheduling of such auctions. 

(D) RETURN OF PAYMENTS.—Within one month after the 

date of enactment of this paragraph, the Commission shall 

return to the bidders for licenses in the A-block, B-block, 

and E-block of auction 44 the full amount of all upfront 

payments made by such bidders for such licenses. 

(k) BROADCAST STATION RENEWAL PROCEDURES.—

(1) STANDARDS FOR RENEWAL.—If the licensee of a broadcast 

station submits an application to the Commission for renewal 

of such license, the Commission shall grant the application if 

it finds, with respect to that station, during the preceding term 

of its license—

(A) the station has served the public interest, convenience, and necessity; 

36

(B) there have been no serious violations by the licensee 

of this Act or the rules and regulations of the Commission; 

and 

(C) there have been no other violations by the licensee 

of this Act or the rules and regulations of the Commission 

which, taken together, would constitute a pattern of abuse. 

(2) CONSEQUENCE OF FAILURE TO MEET STANDARD.—If any licensee of a broadcast station fails to meet the requirements of 

this subsection, the Commission may deny the application for 

renewal in accordance with paragraph (3), or grant such application on terms and conditions as are appropriate, including 

renewal for a term less than the maximum otherwise permitted. 

(3) Standards for denial. If the Commission determines, after 

notice and opportunity for a hearing as provided in subsection 

(e), that a licensee has failed to meet the requirements specified in paragraph (1) and that no mitigating factors justify the 

imposition of lesser sanctions, the Commission shall—

(A) issue an order denying the renewal application filed 

by such licensee under section 308; and 

(B) only thereafter accept and consider such applications 

for a construction permit as may be filed under section 308 

specifying the channel or broadcasting facilities of the 

former licensee. 

(4) COMPETITOR CONSIDERATION PROHIBITED.—In making the 

determinations specified in paragraph (1) or (2), the Commission shall not consider whether the public interest, convenience, and necessity might be served by the grant of a license 

to a person other than the renewal applicant. 

(l) APPLICABILITY OF COMPETITIVE BIDDING TO PENDING COM- PARATIVE LICENSING CASES.—With respect to competing applications for initial licenses or construction permits for commercial 

radio or television stations that were filed with the Commission before July 1, 1997, the Commission shall—

(1) have the authority to conduct a competitive bidding proceeding pursuant to subsection (j) to assign such license or permit; 

(2) treat the persons filing such applications as the only persons eligible to be qualified bidders for purposes of such proceeding; and 

(3) waive any provisions of its regulations necessary to permit such persons to enter an agreement to procure the removal 

of a conflict between their applications during the 180-day period beginning on the date of enactment of the Balanced Budget Act of 1997. 

* * * * * * *

[47 U.S.C. 330]

SEC. 330. PROHIBITION AGAINST SHIPMENT OF CERTAIN TELEVISION 

RECEIVERS. 

(a) No person shall ship in interstate commerce, or import from 

any foreign country into the United States, for sale or resale to the 

public, apparatus described in paragraph (s) of section 303 unless 

it complies with rules prescribed by the Commission pursuant to 

37

the authority granted by that paragraph: Provided, That this section shall not apply to carriers transporting such apparatus without trading in it. 

(b) No person shall ship in interstate commerce, manufacture, assemble, or import from any foreign country into the United States, 

any apparatus described in section 303(u) of this Act except in accordance with rules prescribed by the Commission pursuant to the 

authority granted by that section. Such rules shall provide performance and display standards for such built-in decoder circuitry. 

Such rules shall further require that all such apparatus be able to 

receive and display closed captioning which have been transmitted 

by way of line 21 of the vertical blanking interval and which conform to the signal and display specifications set forth in the Public 

Broadcasting System engineering report numbered E-7709-C dated 

May 1980, as amended by the Telecaption II Decoder Module Performance Specification published by the National Captioning Institute, November 1985. As new video technology is developed, the 

Commission shall take such action as the Commission determines 

appropriate to ensure that closed-captioning service continues to be 

available to consumers. This subsection shall not apply to carriers 

transporting such apparatus without trading it. 

(c)(1) Except as provided in paragraph (2), no person shall ship 

in interstate commerce or manufacture in the United States any 

apparatus described in section 303(x) of this Act except in accordance with rules prescribed by the Commission pursuant to the authority granted by that section. 

(2) This subsection shall not apply to carriers transporting apparatus referred to in paragraph (1) without trading in it. 

(3) The rules prescribed by the Commission under this subsection 

shall provide for the oversight by the Commission of the adoption 

of standards by industry for blocking technology. Such rules shall 

require that all such apparatus be able to receive the rating signals 

which have been transmitted by way of line 21 of the vertical 

blanking interval and which conform to the signal and blocking 

specifications established by industry under the supervision of the 

Commission. 

(4) As new video technology is developed, the Commission shall 

take such action as the Commission determines appropriate to ensure that blocking service continues to be available to consumers. 

If the Commission determines that an alternative blocking technology exists that—

(A) enables parents to block programming based on identifying programs without ratings, 

(B) is available to consumers at a cost which is comparable 

to the cost of technology that allows parents to block programming based on common ratings, and 

(C) will allow parents to block a broad range of programs on 

a multichannel system as effectively and as easily as technology that allows parents to block programming based on 

common ratings, the Commission shall amend the rules prescribed pursuant to section 303(x) to require that the apparatus described in such section be equipped with either the 

blocking technology described in such section or the alternative 

blocking technology described in this paragraph.

38

(d) SHIPMENT OF UNLABELED OBSOLESCENT TELEVISION SETS.— No person shall ship in interstate commerce or manufacture in the 

United States any apparatus described in section 303(s) of this Act 

except in accordance with rules prescribed by the Commission under 

section 303(z) of this Act.

ø(d)¿ (e) For the purposes of this section, and sections 303(s), 

303(u), and 303(x)—

(1) The term ‘‘interstate commerce’’ means (A) commerce between any State, the District of Columbia, the Commonwealth 

of Puerto Rico, or any possession of the United States and any 

place outside thereof which is within the United States, (B) 

commerce between points in the same State, the District of Columbia, the Commonwealth of Puerto Rico, or possession of the 

United States but through any place outside thereof, or (C) 

commerce wholly within the District of Columbia or any possession of the United States. 

(2) The term ‘‘United States’’ means the several States, the 

District of Columbia, the Commonwealth of Puerto Rico, and 

the possessions of the United States, but does not include the 

Canal Zone.

Æ