" ! SENATE 109TH CONGRESS

2d Session 

REPORT

109–355 

Calendar No. 652 

COMMUNICATIONS OPPORTUNITY, PROMOTION, AND ENHANCEMENT ACT OF 

2006 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

H.R. 5252 

together with 

ADDITIONAL VIEWS 

SEPTEMBER 29, 2006.—Ordered to be printed 


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COMMUNICATIONS OPPORTUNITY, PROMOTION, AND ENHANCEMENT ACT OF 2006 


hmoore on PROD1PC68 with HMRPT
U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

49–010 

" ! SENATE 109TH CONGRESS

2d Session 

REPORT

2006

109–355 

Calendar No. 652 

COMMUNICATIONS OPPORTUNITY, PROMOTION, AND ENHANCEMENT ACT OF 

2006 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

H.R. 5252 

together with 

ADDITIONAL VIEWS 

SEPTEMBER 29, 2006.—Ordered to be printed 


hmoore on PROD1PC68 with HMRPTcongress.#13
(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED NINTH CONGRESS

SECOND SESSION

TED STEVENS, Alaska, Chairman 

DANIEL K. INOUYE, Hawaii, Co-Chairman 

JOHN MCCAIN, Arizona 

CONRAD BURNS, Montana 

TRENT LOTT, Mississippi 

KAY BAILEY HUTCHISON, Texas 

OLYMPIA J. SNOWE, Maine 

GORDON H. SMITH, Oregon 

JOHN ENSIGN, Nevada 

GEORGE ALLEN, Virginia 

JOHN E. SUNUNU, New Hampshire 

JIM DEMINT, South Carolina 

DAVID VITTER, Louisiana 

JOHN D. ROCKEFELLER IV, West Virginia 

JOHN F. KERRY, Massachusetts 

BYRON L. DORGAN, North Dakota 

BARBARA BOXER, California 

BILL NELSON, Florida 

MARIA CANTWELL, Washington 

FRANK LAUTENBERG, New Jersey 

E. BENJAMIN NELSON, Nebraska 

MARK PRYOR, Arkansas 

LISA SUTHERLAND, Staff Director 

CHRISTINE KURTH, Deputy Staff Director 

KENNETH NAHIGIAN, Chief Counsel 

MARGARET CUMMISKY, Democratic Staff Director and Chief Counsel 

SAMUEL WHITEHORN, Democratic Deputy Staff Director and General Counsel 


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Calendar No. 652 

109TH CONGRESS REPORT " ! SENATE 2d Session 109–355 

COMMUNICATIONS OPPORTUNITY, PROMOTION, AND 

ENHANCEMENT ACT OF 2006 

SEPTEMBER 29, 2006.—Ordered to be printed 

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

Transportation, submitted the following 

R E P O R T 

together with 

ADDITIONAL VIEWS 

[To accompany H.R. 5252] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (H.R. 5252) to promote the deployment 

of broadband networks and services, 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 objective of this legislation is to update the Nation’s communications laws in a manner that benefits consumers and encourages deployment of broadband infrastructure and services throughout the country and eliminate unnecessary regulations where appropriate. 

BACKGROUND AND NEEDS

Ten years have passed since Congress conducted a comprehensive review of the Nation’s communications laws. During that time 

period, technology has advanced significantly and there is an increasing need to ensure that our communications laws promote 

competitive choice and innovative communications services for consumers. To address this need, the Committee has reviewed and included multiple ways to increase the deployment of broadband. AdVerDate Aug 31 2005 01:49 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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ditionally, the Committee included provisions in this bill to increase competition in the video services market, which, in turn, 

will provide additional incentives for the deployment of broadband 

infrastructure. 

SUMMARY OF PROVISIONS

The provisions contained in H.R. 5252 focus on a wide variety of 

communications issues. Principal among these issues are titles in 

the bill designed to make needed reforms to the universal service 

system and to increase competition in the video services market, 

both of which will further Congress’ goal of advancing the deployment of broadband networks. Specifically, the bill is divided into 14 

separate titles which organized as follows: • Title I addresses several communications issues designed 

to assist military personnel and strengthen homeland security. 

Specifically, this title includes provisions designed to reduce 

the cost of phone service for military personnel located overseas and to improve the interoperable communications capabilities of our nation’s federal, state and local first responders 

through planning, training, and equipment grants. • Title II contains a variety of reforms to the current universal service system, including provisions that would expand 

the current contribution mechanism to provide jurisdiction 

over all communications service providers. It also would establish a new fund within universal service of up to $500 million 

annually to support the deployment of broadband to unserved 

areas in the United States. Additionally, the title contains 

other changes to existing law that extend certain interconnection rights, duties, and obligations to facilities-based, IP-enabled voice service providers and including certain obligations 

under the Communications Act with respect to access for persons with disabilities to IP-enabled voice providers and manufacturers of IP-enabled voice equipment. • Title III reforms the process for obtaining a video franchise 

under current law and makes other changes related to the provision of video services to consumers. Specifically, the bill 

amends Title VI of the Communications Act to require franchising authorities to issue franchises pursuant to a standard 

franchise application form that would be drafted by the Federal Communications Commission (FCC) and to require franchise authorities to consider standard franchise applications 

within 90 days. Under the standard franchise agreement, franchise authorities would be permitted to require payment of up 

to 5 percent of gross revenues as a franchise fee, require payment for the support of public, educational, and governmental 

access facilities and institutional networks subject to limits established in this title, and provide certain channel capacity for 

public educational, and governmental use. In addition to provisions affecting the process of obtaining a video franchise, Title 

III also makes a number of changes to current law designed to 

create greater uniformity in the regulation of video service providers to eliminate unnecessary obligations. To address concerns about cherry picking competitive build-out, the bill enhances current red-lining requirements. Finally, the new 

framework for video franchising would apply not only to new 


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entrants, but would also be available to incumbent cable operators either upon the expiration of their current franchise term 

or upon the arrival of a new competitive video service provider, 

whichever is earlier. • Title IV addresses issues related to the transmission of 

digital content. Specifically, the title attempts to ensure that 

satellite carriers providing national television and Internet 

service to all or substantially all of the lower 48 States also 

provide comparable services in Alaska and Hawaii to the extent technically feasible. In addition, the title provides the FCC 

with express authority to implement regulations necessary to 

protect digital broadcast television content pursuant to the 

FCC’s previous ‘‘Broadcast Flag’’ order. With respect to digital 

audio content, the title would similarly provide the FCC with 

express authority to issue regulations governing the protections of digital audio content, but may only exercise that authority if, after 1 year (and one 6 month extension if granted 

by the FCC) the newly-created Digital Audio Review Board is 

unable to agree upon a consensus standard that is consistent 

with fair use principles. • Title V affirmatively preempts state laws prohibiting public provisioning of broadband services consistent with this title 

while requiring that laws affecting the provision of such services be applied in a neutral manner among public and private 

providers. • Title VI contains provisions designed to spur the development of new, inexpensive broadband services by allowing unlicensed wireless devices to use certain vacant broadcast frequencies so long as such use protects licensees from harmful 

interference. • Title VII addresses issues related to the digital television 

transition, including changes that would improve consumer 

education, codify the FCC’s digital tuner requirement, and permit the temporary down conversion of digital broadcast signals 

by cable and satellite operators. 

• Title VIII addresses issues concerning the impact of certain programming on children and specifically strengthens existing laws related to child pornography for video service providers and operators of commercial websites. 

• Title IX establishes a number of rights for subscribers of 

Internet services in order to prevent an Internet Service Provider from undermining a consumer’s experience on the Internet and from limiting the subscriber’s ability to go wherever he 

or she wants on the Internet at whatever speed he or she purchased. In addition, this title would also provide consumers 

with the right to purchase stand-alone broadband service without having to purchase other services like video or phone service. 

• Title X contains a number of miscellaneous provisions 

amending current laws, including provisions affecting the administration and enforcement powers of the FCC, establishing 

a program for basic research in advanced information and communications technologies, preempting state regulation of the 

terms and conditions of wireless services, codifying the FCC’s 

vonage and pulver.com orders, and permanently extending the 


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Internet tax moratorium, which under current law expires on 

November 1, 2007. 

• Title XI contains provisions that would eliminate current 

restrictions limiting the licensing of low power FM stations in 

order to promote localism in broadcast radio. 

• Title XII imposes a 3 year moratorium on the imposition 

of any new taxes by state or local governments that specifically 

target providers of mobile services. 

• Title XIII contains provisions designed to protect consumers from the manipulation of Caller ID information or 

‘‘spoofing’’. 

• Title XIV focuses on a number of wireless licensing issues 

designed to improve deployment and build-out in rural and underserved areas, including provisions related to the use of 

small license areas in future auctions. 

LEGISLATIVE HISTORY

Following a series of informal listening sessions that allowed 

Members to learn about new technologies, the Committee began its 

review of the Nation’s communications laws with a series of over 

20 hearings, reviewing various policy issues addressed in this legislation. 

Upon completion of these hearings, S. 2686, the ‘‘Communications, Consumers’ Choice, and Broadband Deployment Act of 2006,’’

was introduced on May 1, 2006 by Chairman Stevens (for himself 

and Co-chairman Inouye). Subsequently, the Committee conducted 

three legislative hearings on May 18 and 25, and on June 13. After 

receiving comments from Committee Members and interested parties, the majority released a second draft of the bill on June 9 and 

a third draft on June 16. This third draft amended H.R. 5252 by 

striking everything after the enacting clause and inserting the revised language. 

On June 22, 2006, the Committee began its Executive Session 

during which it considered H.R. 5252. The Executive Session continued on June 27 and 28. Each day, the Committee adopted without objection a separate manager’s package that included a number 

of amendments. Additionally, the Committee considered several individual amendments. On the final day, the Committee, by a roll 

call vote of 15-7, ordered that H.R. 5252 be reported with amendments. 

AMENDMENTS TO TITLE I OF THE BILL

Several amendments were adopted with regard to title I of the 

bill. The first manager’s package contained an amendment by Senator Inouye that would modify section 151(b) of the bill to require 

explicitly that the Commission consider the public interest when 

streamlining its process for certifying devices allowing seamless 

mobility. It also contained an amendment by Senators McCain and 

Boxer that would modify section 152(b) of the bill to require that 

$1 billion in interoperable grant funds be administered by the Secretary of Homeland Security instead of the Secretary of Commerce. 

The McCain/Boxer amendment was adopted as modified in Executive Session by Senator Inouye’s amendment requiring that grant 

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tion 3006 of the Deficit Reduction Act. The Committee adopted an 

amendment offered by Senators Vitter and Stevens that would expedite the awarding of public safety interoperable communications 

grants, and a second degree amendment by Senator Stevens that 

would make the deadline 1 year sooner than in the amendment. 

The Committee also adopted an amendment offered by Senators 

Bill Nelson and Burns to require the role of public safety answering points and automatic-location or ‘‘E–911’’ services to be considered in the awarding of interoperable emergency communications 

grants, and to set aside such grant funds for Public Safety Answering Point (PSAP) and E–911 projects. 

AMENDMENTS TO TITLE II OF THE BILL

Several amendments were adopted with regard to title II of the 

bill. The Committee adopted by a rollcall vote of 14 to 8 an amendment by Senator Sununu, along with a series of second degree 

amendments to title II of the bill, that would codify the Commission’s rulings in FCC 04–267 and FCC 04–27 and clarify that no 

consumer protection laws are preempted by this provision. The 

Sununu amendment would also clarify that intercarrier compensation charges should be applied in a reciprocal fashion to IP-enabled 

voice services. 

The first manager’s package adopted by the Committee included 

several amendments regarding title II of the bill. An amendment 

by Senator Stevens would clarify that the State preemption provisions do not affect State or local tax laws. An amendment by Senator Burns, as modified by a second degree amendment by Senator 

Stevens, would modify the rural exemption in section 251(f)(1) of 

the Communications Act. An amendment by Senator Rockefeller 

would clarify that IP-enabled voice service providers are subject to 

payphone compensation rules. An amendment by Senators Snowe 

and Rockefeller would establish new performance goals for the ERate program. An amendment by Senators Bill Nelson and Allen 

would clarify the eligible classes of end users for the low-volume 

exception authority provided to the Commission. An amendment by 

Senators Bill Nelson and McCain would ensure that customer 

premises equipment is covered by the disability provisions in title 

II of the Communications Act and to require that the Commission 

submit a report to Congress on compliance. An amendment by Senator Cantwell would permit the Commission to exempt non-profit 

organizations offering free communications service from universal 

service contributions. An amendment by Senator DeMint would require that any E-Rate vendor that is criminally convicted of fraud 

in connection with the E-Rate program be permanently barred from 

participation in the program. An amendment by Senator Ben Nelson would provide access to Universal Service funds for certain 

health care providers in rural areas. 

The third manager’s package adopted by the Committee included 

an amendment by Senator Allen that would clarify that, for the 

purposes of determining the rights and obligations of IP-enabled 

voice service providers, certain facilities meet the definition of ‘‘facilities-based’’. An amendment by Senator Inouye, as modified, 

would improve Universal Service support of high-cost services in 

insular areas. 


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The Committee also adopted an amendment by Senator Ben Nelson, as modified by Senator Sununu, that would direct the Commission to determine a fair allocation for communications services 

offered in bundled packages between those portions that can be assessed state universal service charges and those that cannot. The 

Committee adopted an amendment by Senator Dorgan that would 

require the Commission to submit its proposed universal service 

contribution rules to Congress for a 90-day review prior to implementing the rules. 

AMENDMENTS TO TITLE III OF THE BILL

Several amendments were adopted with regard to title III of the 

bill. The second manager’s package adopted by the Committee included several amendments regarding title III of the bill. An 

amendment by Senator Stevens would address four provisions important to local franchising authorities-increasing the franchising 

period from 75 to 90 days, allowing franchising authorities to 

charge a fee on other fees paid to the local authorities, defining 

video services in a manner that includes an Internet protocol television service offered by a large incumbent telephone company, and 

preserving certain support received by local franchises with respect 

to PEG and Institutional Networks. Senator Allen’s amendment 

would make a technical clarification that entities providing video 

services with open video systems pursuant to section 653 of the Act 

are subject to title III. Senator Boxer’s amendment would remove 

a requirement that false statements made to a local franchising authority also be ‘‘willful and repeated’’ before the offending video 

service provider could be subject to franchise revocation. Senator 

Lautenberg’s amendment would preserve section 601 of the Communications Act which sets forth the purpose of title VI of that Act. 

Senator Pryor’s amendment would limit the amount that video 

service providers may charge subscribers for terminating their 

service early. An amendment by Senator Rockefeller would require 

the FCC to complete its Notice of Inquiry concerning the impact of 

violent television programming on children. 

The third manager’s package adopted by the Committee included several amendments regarding title III of the bill. An 

amendment by Senator Inouye would restate the prohibition on 

regulation of direct broadcast satellite services by local franchising 

authorities. Senator Inouye’s amendment, as modified in Executive 

Session, would provide space on the standardized franchise application for limited, additional information. An amendment by Senator 

Inouye, as modified, would preserve certain provisions regarding 

use of public rights-of-way that exist in current law. Another 

amendment by Senator Inouye, as modified to apply only to Hawaii, would modify a provision regarding PEG and Institutional 

Network support. An amendment by Senators Pryor and Bill Nelson, as modified, would provide for auxiliary enforcement of consumer protection and customer service regulation. 

AMENDMENTS TO TITLE V OF THE BILL

The first manager’s package adopted by the Committee included 

a bipartisan amendment by Senators Lautenberg, McCain and Ensign that would make technical corrections to provisions in title V 

of the bill regarding community broadband networks. 


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AMENDMENTS TO TITLE VII OF THE BILL

Several amendments were adopted with regard to title VII of the 

bill. The first manager’s package adopted by the Committee included several amendments regarding title VII of the bill. An 

amendment by Senator McCain would clarify that the restriction 

on importing analog-only televisions into the United States, or 

shipment of such sets in interstate commerce, after March 1, 2007, 

would apply specifically to manufacturers or importers. An amendment by Senator Rockefeller would amend section 701 of the bill 

to require that the Television Ratings Oversight Monitoring Board 

and the American Association of People with Disabilities be included in the public interest groups chosen by the FCC to be members of the DTV Working Group required by that section. An 

amendment by Senator DeMint would amend the satellite 

downconversion provisions in section 701 of the bill to clarify that 

carriage obligations apply only to a television broadcast station’s 

primary video signal. An amendment by Senators Bill Nelson and 

McCain to section 701 of the bill that would require the DTV Working Group to recommend to the FCC procedures for contacting persons with disabilities in order to inform them about the DTV transition. 

The third manager’s package included an amendment offered by 

Senator Rockefeller to section 701 of the bill that would require all 

television sets with a screen larger than 13 inches, measured diagonally, to be equipped with a feature designed to enable viewers 

to block all programs with a common rating. The Committee also 

adopted an amendment by Senator Bill Nelson to increase consumer awareness regarding the digital television transition. 

AMENDMENTS TO TITLE VIII OF THE BILL

The second manager’s package adopted by the Committee included amendments regarding title VIII of the bill. An amendment 

by Senator Rockefeller would prohibit interactivity with commercial matter during children’s programming. 

The third manager’s package adopted by the Committee included 

amendments by Senators Burns and Kerry, as modified and combined, that would enhance the prosecution of child pornographers. 

The package also included an amendment by Senator Dorgan 

which would require the FCC to study commercial proposals to 

broadcast radio or television material to students on school busses. 

AMENDMENTS TO TITLE IX OF THE BILL

The third manager’s package adopted by the Committee included 

an amendment by Senator Stevens regarding title IX of the bill. 

The Stevens amendment would increase the monetary fines for 

Internet neutrality violations from $11,000 to $500,000 each. 

AMENDMENTS TO TITLE X OF THE BILL

Several amendments were adopted with regard to title X of the 

bill. The Committee adopted by a rollcall vote of 19 to 3 an amendment by Senator Allen that would add a section 1013 to the bill 

that would amend section 1101(a) of the Internet Tax Freedom Act 

(47 U.S.C. 151 note) to make that Act permanent. The Allen 

amendment would permanently extend that Act’s provisions barVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00011 Fmt 6659 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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ring State governments from taxing Internet access services, which 

provisions are currently scheduled to expire on November 1, 2007. 

The second manager’s package included several amendments 

with regard to title X of the bill, which contains miscellaneous provisions. An amendment by Senator Stevens would strike from title 

X of the bill a provision that required that challenges of FCC rulings or regulations be brought in the United States District Court 

for the District of Columbia. An amendment by Senator Nelson 

would improve public safety by requiring a status report on the establishment of an E–911 implementation and coordination office 

under the Enhanced 911 Act. An amendment by Senator Bill Nelson would require the Commission to study telemedicine services 

and report to Congress on the availability of broadband facilities 

capable of providing such services. Another amendment by Senator 

Bill Nelson would amend the Children’s Television Act of 1990 to 

apply the time limitations on advertising to video service providers. 

An amendment by Senators Nelson and Pryor would ensure that 

provisions of title V of the Communications Act, regarding forfeitures for obscenity and other violations of the Act, would apply to 

companies that provide video services. Another amendment by Senators Nelson and Pryor would ensure that certain provisions of title 

VII of the Communications Act will apply to companies that provide video services. An amendment by Senator Ben Nelson would 

hold independent network affiliates harmless from section 503(b) 

penalties for network programs they have not had the opportunity 

to preview or with respect to which they have no notice from the 

network as to objectionable content. An amendment by Senator 

Inouye would require the Commission to revisit the current speed 

it deems to qualify as broadband, namely 200 kilobits per second, 

and to periodically update such classification. The Committee 

adopted an amendment by Senators Inouye, Cantwell and Dorgan 

that would add a section 1002 to the bill that would establish an 

Office of Indian Affairs within the FCC. 

The third manager’s package also included several amendments 

with regard to title X of the bill. An amendment by Senator Inouye 

would modify the regulatory forbearance provisions in section 10 of 

the Communications Act. An amendment by Senators Bill Nelson 

and Snowe would add a section 1003 to the bill to establish within 

the Commission an Office of Consumer Advocate. An amendment 

by Senators Stevens and Pryor would add to section 1006 of the bill 

a provision that would require the FCC to adopt customer service 

and consumer protection rules for wireless mobile service providers. 

An amendment by Senator Sununu would add to title X of the bill 

a provision that would codify the FCC’s decisions in its vonage and 

pulver.com proceedings and would dismiss any pending challenges 

to those decisions. This amendment would not supersede or preempt the consumer protection laws of any State, including any privacy or anti-child pornography law of a State, except to the extent 

that such laws regulate the rates for entry or exit by a provider of 

IP-enabled voice services. The Committee adopted an amendment 

by Senators Dorgan, Lott and Cantwell that would add a provision 

to title X of the bill that would require that before the FCC 

changes section 73.3555 of its rules, as those regulations were in 

effect on June 1, 2003, the FCC must issue a further Notice of Proposed Rulemaking with respect to any such changes. This section 


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added by the Dorgan/Lott/Cantwell amendment would declare null 

and void the cross-media limits rule adopted by the FCC on June 

2, 2003, pursuant to its proceeding on broadcast media ownership 

rules (FCC 03–127) and would reinstate with effect from June 2, 

2003, the FCC’s rule 73.3555, as those rules were in effect. The 

Committee adopted an amendment by Senator Dorgan that would 

add a provision to title X that would prohibit the FCC from promulgating rules regarding media ownership without first completing the regulatory action in its section 257 proceeding initiated 

on June 15, 2004, concerning diversity in media ownership. 

Also with regard to title X, the Committee adopted an amendment by Senators Bill Nelson, DeMint and Cantwell that would require within 180 days of enactment that the FCC amend its rules 

requiring collection of data twice a year through its Form 477, 

which provides a snapshot of broadband deployment and local 

phone competition throughout the United States. The new provision would require that broadband service providers report information, by zip code area where broadband service is provided, including the percentage of households offered service and the percentage of such households subscribing, as well as the average 

price per megabyte of download and upload speed, the broadband 

service’s actual average throughput, and contention ratio of the 

number of users sharing the same line. The FCC would, however, 

be required to exempt a broadband service provider from such reporting requirements if a provider’s compliance is cost prohibitive, 

as defined and determined by the FCC. This section would further 

require that, with respect to areas unserved by any broadband 

service provider, the FCC use Census Bureau data to provide an 

annual report to Congress with information on such area’s population, population density and average per capita income. The Committee adopted an amendment by Senator Bill Nelson that would 

prohibit FCC bureau chiefs and persons in similar positions at the 

FCC from lobbying the FCC until one year after leaving the FCC. 

The third manager’s package adopted by the Committee included 

a second degree amendment by Senator Sununu that would require 

the FCC to complete within 270 days of enactment of the bill the 

proceeding on special access rates in FCC Dockets No. 05–25 and 

01–321. 

AMENDMENTS ADOPTED AS NEW TITLES TO THE BILL

The Committee adopted by a rollcall vote of 14 to 7 an amendment by Senator McCain that would add a new title XI to the bill. 

The McCain amendment would repeal language enacted in the 

2000 Commerce, Justice, and State appropriations bill that required the FCC to delay the licensing of low power FM (LPFM) stations on third adjacent channels to full power FM stations. The 

amendment would direct the FCC to modify its rules to eliminate 

third adjacent minimum distance separation requirements between 

LPFM stations and full power FM stations, FM translator stations, 

and FM booster stations. The amendment would also require interference protection for radio stations that provide reading services 

over the radio frequencies to assist the blind. Such radio reading 

service (RRS) stations broadcast using a sub-carrier frequency, 

which is more susceptible to LPFM interference due to its spacing 

on an FM channel. The FCC currently has a temporary rule preVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00013 Fmt 6659 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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venting LPFM stations from operating on a third adjacent channel 

to a RRS. This section would direct the FCC to make this rule permanent. The amendment would require the FCC when licensing 

FM translator stations to ensure that licenses are available to both 

FM translator stations and low-power FM stations, according to the 

needs of the local community. 

The Committee adopted by a rollcall vote of 21 to 1 an amendment by Senators McCain, Allen, Bill Nelson and Stevens that 

would add a new title XII to the bill. This amendment would for 

three years after enactment prohibit States and localities from levying new taxes that single out wireless phone service, but would 

not affect existing taxes. 

The Committee adopted an amendment by Senator Bill Nelson 

that would add a new title XIII to the bill. The Bill Nelson amendment would make it unlawful to cause any caller identification 

service to transmit misleading or inaccurate caller identification information and would require the FCC to adopt rules within 6 

months of enactment to implement such prohibition. 

The Committee adopted an amendment by Senators Burns and 

Snowe that would add a new title XIV to the bill. The Burns/Snowe 

amendment would require the FCC to reconfigure the 700 MHz 

band plan, provided such action does not delay the DTV transition 

or auction of recovered analog broadcast spectrum, in order to encourage rural deployment, and to direct the FCC to review spectrum use. 

The Committee, by a rollcall vote of 15–7, ordered that H.R. 5252 

be reported with amendments. 

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: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, Setpember 15, 2006. 

Hon. TED STEVENS, 

Chairman, Committee on Commerce, Science, and Transportation, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5252, the Communications Act of 2006. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contacts are Susan Willie (for federal costs), Sarah Puro (for the impact on state and local governments), and Philip Webre (for the impact on the private sector). 

Sincerely, 

DONALD B. MARRON, Acting Director. 

Enclosure. 

H.R. 5252—Communications Act of 2006 

Summary: H.R. 5252 would make numerous changes to provisions of current law that regulate telecommunications. The act 


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would direct how local governments may issue franchises to providers of video service. The act also would create a new program 

in the Universal Service Fund (USF) to support the development 

of broadband service to unserved areas and make other changes to 

existing USF programs. H.R. 5252 also would authorize the appropriation of $250 million over the 2007–2011 period for research 

grants on advanced communication services. 

CBO estimates that enacting H.R. 5252 would increase direct spending by $5.2 billion over the 2007–2016 time period. Over the same period, CBO estimates that revenues would increase by $5.0 

billion. In addition, assuming appropriation of the authorized 

amounts, CBO estimates that implementing H.R. 5252 would result in discretionary outlays of $175 million over the 2007–2011 period. 

H.R. 5252 contains several intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA). In particular, the act would limit certain intergovernmental entities from 

imposing certain fees on providers of cable services, permanently 

extend a prohibition on certain state and local taxation of Internet 

access services, and impose a three-year moratorium on certain 

new state and local taxes that apply to mobile telephone service. 

The act also would eliminate the rights of certain state and local 

governments to appeal and bring court cases relating to the Internet-based telephone service known as Voice-over-Internet-Protocol 

(VOIP). Other provisions of the act would preempt state and local 

laws and require certain intergovernmental entities to notify and 

file reports with the Federal Communications Commission (FCC). 

CBO estimates that the net direct costs of these mandates to 

state and local governments would exceed the threshold established 

in UMRA ($64 million in 2006, adjusted annually for inflation) in 

at least one of the first five years after enactment. Those costs, in 

the form of forgone revenues, would peak during the 2008–2009 pe- riod, and total at least $150 million—and perhaps as high as $400 

million—in those two years. Costs would decrease after 2009 but 

would likely remain above $100 million through 2011. 

H.R. 5252 also would impose numerous private-sector mandates 

as defined in UMRA on providers of telecommunications services, 

Internet Protocol-enabled (IP-enabled) voice services, Internet service providers, manufacturers and distributors of television receivers, broadcasters, video and satellite service providers, and others. 

At the same time, the act would provide some forms of regulatory 

and tax relief for portions of those industries. Based on information 

from government and industry sources, CBO estimates that the aggregate costs of complying with the mandates in H.R. 5252 would 

exceed the annual threshold established by UMRA for private-sector mandates ($128 million in 2006, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5252 is shown in the following table. The costs 

of this legislation fall within budget functions 370 (commerce and 

housing credit), 250 (science, space, and technology), and 950 (undistributed offsetting receipts). 

Basis of estimate: For this estimate, CBO assumes that the act 

will be enacted early in fiscal year 2007 and that the necessary 

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


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Outlay estimates are based on historical spending patterns for existing or similar programs. CBO estimates that enacting H.R. 5252 

would increase direct spending by $5.2 billion over the 2007–2016 

period and increase revenues by $5.0 billion over the same period. 

In addition, assuming appropriation of the amounts authorized, 

CBO estimates that implementing H.R. 5252 would result in discretionary outlays of $175 million over the 2007–2011 period. 

By fiscal year, in millions of dollars— 

2007 2008 2009 201O 2011 2012 2013 2014 2015 2016 

CHANGES IN DIRECT SPENDING 

Universal Service Fund Provisions: 

Antideficiency Act Exemption: 

Estimated Budget Authority ............ 0 0 0 0 0 0 0 0 0 0 

Estimated Outlays ........................... 0 107 47 3 2 1 0 0 0 0 

Broadband Service Fund: 

Estimated Budget Authority ............ 70 400 500 500 500 500 500 500 500 500 

Estimated Outlays ........................... 0 426 513 500 500 500 500 500 500 500 

Audits: 

Estimated Budget Authority ............ 20 40 41 42 42 43 44 45 46 47 

Estimated Outlays ........................... 19 39 41 42 42 43 44 45 46 47 

Rural Health Care Program: 

Estimated Budget Authority ............ 5 8 13 13 13 13 13 14 14 14 

Estimated Outlays ........................... 0 8 12 13 13 13 13 14 14 14 

Unlicensed Use of Television—Broadband 

Spectrum: 

Estimated Budget Authority ..................... 0 25 0 0 50 25 0 0 0 0 

Estimated Outlays .................................... 0 25 0 0 50 25 0 0 0 0 

Total Changes: 

Estimated Budget Authority ..................... 95 473 554 555 605 580 557 559 560 561 

Estimated Outlays .................................... 19 605 613 558 607 581 557 559 560 561 

CHANGES IN REVENUES 

Estimated Revenues .......................................... 95 448 553 554 555 556 558 559 560 561 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Authorization Level ............................................ 40 45 50 55 60 0 0 0 0 0 

Estimated Outlays ............................................. 9 28 39 47 52 43 17 6 2 1 

Direct spending 

Several provisions of H.R. 5252 would affect direct spending. 

Title II would expand or create new programs in the Universal 

Service Fund. Title VI would modify terms and conditions governing the use of certain radio frequencies by users without licenses from the FCC. 

Universal Service Fund. Created by the Telecommunications Act 

of 1996, the USF redistributes income from interstate telecommunications carriers to other carriers providing services to 

high-cost areas, low-income households, schools, libraries, and nonprofit rural health care providers. The cash flows from the USF appear in the budget as revenues (for fund collections, discussed 

below) and direct spending (for amounts distributed from the fund). 

Title II would create new programs within the Universal Service 

Fund, expand an existing program, and permanently exempt the 

fund from the provisions of the Antideficiency Act. CBO estimates 

that enacting these provisions would increase direct spending by 

about $5.1 billion over the 2007–2016 period and increase revenue 

collections by $5.0 billion over the same period. 

Antideficiency Act Exemption. Section 211 would permanently 

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sions of the Antideficiency Act. Under current law, the program 

has a temporary exemption from the act that will expire at the end 

of calendar year 2006. Without this exemption, the Schools and Library program would be unable to obligate funds until sufficient resources to meet its obligation are available. 

The Schools and Libraries program distributes funds to eligible 

institutions to provide affordable Internet and telecommunications 

services. When the USF receives and approves a grant application, 

it obligates funds to be paid to the recipient pending compliance 

with certain grant conditions. Under current law, the fund has 

temporary authority to obligate funds without sufficient amounts 

available to meet those obligations. H.R. 5252 would make that authority permanent, allowing the program to obligate and spend 

funds faster than it would without the exemption. CBO estimates 

that this provision would increase the rate of spending and thus increase costs by about $160 million over the 2007–2016 period. 

Broadband Service Fund. Section 252 would create a new program to promote the development of broadband service in areas of 

the United States that the FCC determines to be unserved. The 

program would provide financial assistance for certain broadband 

service providers to install equipment and infrastructure to offer 

broadband service in certain areas. H.R. 5252 would limit the 

amount that could be obligated under this program to $500 million 

per year. Based on the administration of existing USF programs, 

CBO expects that the proposed Broadband Service Fund would operate at the maximum authorized level. CBO estimates that this 

provision would increase direct spending by nearly $4.5 billion over 

the 2007–2016 period. (The provision also would increase revenue collections by about $4.5 billion over the same period.) 

Audits. Section 258 would require the FCC to periodically audit 

entities that receive funds from the Universal Service Fund, as 

well as communications carriers who contribute to the fund. The 

audits would be administered by the Universal Service Administrative Company to determine how recipients use the support received 

from the fund and how costs of services provided by fund contributors differ between service areas. Based on information from the 

FCC about the cost of audits, CBO estimates that this provision 

would increase the expenses (and revenue collections) of the fund 

by about $400 million over the 2007–2016 period. 

Rural Health Care Program. Section 260 would expand the population of eligible health care providers that could receive support 

under the Rural Health Care Support Program. This program provides reduced rates for Internet and telecommunication services to 

certain rural public and nonprofit health care providers. H.R. 5252 

would increase the pool of eligible health care providers to include 

critical access hospitals, hospice providers, school health clinics, 

and others. CBO estimates that this provision would increase direct spending by about $115 million over the 2007–2016 period 

(and result in increased revenue collections of $120 million over the 

same period). 

Unlicensed Use of Television Broadcast Spectrum. Title VI would 

modify the FCC’s policies regarding the use of television broadcast 

spectrum by unlicensed devices. The commission’s recently announced timetable for unlicensed use of those frequencies set a goal 

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vision is completed in 2009. Under the FCC’s plan, such devices 

could operate on a secondary basis on most of the frequencies spanning channels 5 through 51. This act would modify that plan by directing the FCC to allow certified unlicensed devices to begin operating on channels 2 through 51 beginning within 270 days after the 

act is enacted, subject to certain limitations. CBO estimates that 

enacting H.R. 5252 would reduce offsetting receipts from future 

spectrum auction proceeds by $100 million over the 2009–2012 period, relative to current law. 

CBO anticipates that allowing unlicensed devices on channels 2 

through 4 would result in fewer channels being auctioned for new 

broadcast stations relative to current law, thereby reducing offsetting receipts by an estimated $75 million by 2012. Although unlicensed devices would operate on a secondary basis, experience suggests that the presence of such incumbents would put pressure on 

the FCC to limit the number of new licensees in the broadcast 

bands. CBO expects that this impact would be most pronounced in 

major markets because of the relative scarcity of spectrum in those 

areas. For this estimate, CBO assumes that enacting this act would 

result in a 50 percent reduction in the $150 million CBO projects 

otherwise would be collected from auctions of licenses for those 

channels. 

In addition, CBO expects that allowing unlicensed operations on 

channels 2 through 4 would reduce demand for some of the licenses 

scheduled to be offered by the FCC in 2008 as part of the ‘‘700 

megahertz’’ auction. The impact on that auction is likely to be 

small, however, because of the significant engineering constraints 

on use of those channels by secondary devices. For this estimate, 

CBO assumes that those three channels could serve as a substitute 

for only 20 percent of the licenses being auctioned, and that the effect on the value of those licenses would fall by no more than 1 percent. Based on CBO’s baseline projection of receipts from that auction, which totals $12.5 billion, the net impact of this act on the 

700 megahertz auction would total about $25 million. 

Revenues 

As noted above, assessments made by the Universal Service 

Fund to support its programs are recorded in the budget as revenues, and are calculated to generate an amount sufficient to cover 

the costs of the fund. All USF spending is supported by assessments on telecommunications firms; thus, CBO estimates that new 

revenues collected by the fund to support the proposed Broadband 

Service program, program audits, and the expansion of the Rural 

Health Care program would total $5.0 billion over the 2007–2016 

period. 

Several provisions of the act could increase federal revenues as 

a result of the collection of additional civil and forfeiture penalties 

assessed for violations of FCC laws and regulations. Collections of 

civil penalties and forfeiture penalties are recorded in the budget 

as revenues. CBO estimates that any additional revenues that 

would result from enacting H.R. 5252 would not be significant because of the relatively small number of cases likely to be involved. 


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Spending subject to appropriation 

Title X would establish a program within the National Science 

Foundation (NSF) to support basic research in advanced information and communications technology. The NSF would make grants 

designed to improve the availability and affordability of advanced 

communications services to higher education and nonprofit research institutions. The act would authorize the appropriation of 

$250 million over the 2007–2011 period for this grant program. 

Based on the spending patterns of similar programs, CBO estimates that outlays over this period would total $175 million. 

Title X would create two new administrative offices at the FCC— the Office of Indian Affairs and the Office of Consumer Advocate. 

Other provisions of the act would require the FCC to undertake numerous rulemakings regarding the USF Broadband program, video 

service and cable franchising, consumer protection requirements for 

mobile services, and appropriate use of Caller–10 services, among 

others. The act would also require the FCC to prepare a number 

of reports for the Congress concerning the availability of video services, proposals to allow radio and television content to be broadcast 

in school buses, the availability of broadband service, and the impact of spectrum leasing rules. Based on information from the FCC, 

CBO estimates that these new requirements would cost about $35 

million over the 2007–2011 period. Under current law, the FCC is 

authorized to collect fees from the telecommunications industry sufficient to offset the cost of its regulatory and user information programs. CBO assumes that the additional costs of implementing 

these administrative provisions of H.R. 5252 would be offset by an 

increase in collections credited to the FCC’s annual appropriations 

and would have no significant net cost. 

Estimated impact on State, local, and tribal governments: H.R. 

5252 contains several intergovernmental mandates as defined in 

UMRA. Specifically, the act would: • Limit the fees that intergovernmental entities—primarily 

municipal governments—may impose on providers of cable 

services; • Permanently extend a prohibition on certain state and 

local taxes on the provision of certain Internet access services; • Impose a three-year moratorium on certain new state and 

local taxes that apply to mobile telephone service; • Prohibit intergovernmental entities—primarily municipal 

governments—from imposing certain requirements on providers of cable services and from negotiating future changes in 

franchise agreements including, the structure of franchise fee 

payments and the number of public, educational, and governmental (PEG) channels provided by the video service provider; • Eliminate appeals regarding two recent FCC decisions that 

relate to an Internet-based telephone service known as VOIP; • Preempt state laws that prohibit municipal governments 

from providing services for Internet access; • Preempt a variety of other state and local laws with respect to the granting of franchises for cable service, consumer 

protection, caller-ID, and certain requirements that information be available to the public; 

• Require local franchise authorities to adhere to certain 

timelines for granting franchises; and 


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• Require certain state and local government entities to notify and file reports with the FCC. 

CBO estimates that the net direct costs of these mandates to 

state and local governments would exceed the threshold established 

in UMRA ($64 million in 2006, adjusted annually for inflation) in 

at least one of the first five years after enactment. Those costs, in 

the form of forgone revenues, would peak during the 2008–2009 pe- riod and total at least $150 million—land perhaps as high as $400 

million—in each of those two years. Costs would decrease after 2009 but would likely remain above $100 million through 2011. 

Most of those costs would stem from the first three provisions outlined above. The following discussion focuses on the costs of these 

provisions. 

Estimated direct costs of Mandates to State and local governments 

UMRA includes in its definition of the direct costs of a mandate 

the amounts that state and local governments would be prohibited 

from raising in revenues to comply with that mandate. The most 

significant direct costs of H.R. 5252 would be the revenues that 

state and local governments would likely collect under current law 

from providers of video service, Internet access services, and mobile 

phone service but would be precluded from collecting under H.R. 

5252. 

Limiting Fees Paid by Providers of Video Service. Title III would 

establish new provisions for the franchising of video service providers. In doing so, the act would place requirements on certain 

units of local government, preempt their authority to regulate and 

negotiate with video service providers, and prohibit some state and 

local governments from charging certain fees to providers of video 

services. The act also would prohibit certain local governments 

from imposing franchise fees on services delivered using certain 

technologies. At the same time, by increasing competition in some 

markets, enacting the act likely would lead to more people subscribing to cable services that are subject to local franchise fees. 

Thus, local governments would gain new revenues that partially 

offset these costs. 

Under current law, Local Franchise Authorities (LFAs) in most 

states negotiate compensation with cable providers seeking to serve 

their franchise area. (In at least four states, the law provides for 

a statewide franchise). Each agreement is different, and the 

amount of forgone revenue from H.R. 5252’s prohibition would depend on the specifics of each franchise agreement preempted by the 

act. 

Current federal law caps fees for the franchise at 5 percent of 

gross revenues—a fee maintained in H.R. 5252. Local governments, 

however, also negotiate fees for certain additional services that the 

video service provider must supply. These services include public, 

educational, and governmental programming and a type of private 

network for some public entities called an institutional network 

(INET). INETs typically connect schools, police and fire stations, libraries, and other municipal buildings. On average, these fees total 

between 1 percent and 3 percent of the gross revenues of the provider. Based on the franchise agreement that an LFA has with 

cable provider, provisions of H.R. 5252 would limit fees that those 

LFAs with an INET may charge video providers. There is a great 


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deal of uncertainty as to the number of franchise areas with 

INETs, but government sources suggest that no more than half of 

franchise areas have one. 

By prohibiting some intergovernmental entities from charging 

certain video service providers more than 1 percent of gross revenues to provide PEG programing and other services, H.R. 5252 

would lead to a loss in state and local revenues. CBO estimates 

that the net costs of this prohibition—that is, the amount of revenues state and local governments would no longer be able to collect, offset by franchise fees generated from increased competition—could total about $100 million in some years during the 

2007–2011 period. Such costs, however, could be significantly 

lower, depending on the pace at which there is competition in the 

market for video services and the changes in technology for the delivery of such services. 

Permanent Extension of the Internet Tax Freedom Act. Section 

1013 would permanently extend the moratorium on certain state 

and local taxation of Internet access and would eliminate an exception to that prohibition that allows certain states to continue collecting such taxes. Under current law, the moratorium is set to expire on November 1, 2007. 

The Internet Tax Freedom Act (ITFA) currently prohibits state 

and local governments from imposing taxes on Internet access until 

November 1, 2007. Based on information from government and industry sources, CBO estimates that permanently extending the 

ITFA would result in revenue losses for about 25 states and some 

local governments totaling between $100 million and $175 million, 

annually, beginning in November 2007. CBO expects that forgone 

revenues from this provision would peak within the next few years 

and then decline due to the rapidly decreasing prices for services 

that could have been subject to tax in the absence of this provision 

and the relatively slower growth of new subscribers. 

Moratorium on New Taxes on Cell Phone Services. Title XII 

would impose a three-year moratorium on certain new taxes imposed by state and local governments that apply to the provision 

of mobile telephone service. State and local governments would be 

prohibited from raising the tax rate on current taxes and from enacting any new statutes that would impose other taxes or fees on 

mobile telephone services over the next three years: 2007, 2008, 

and 2009. 

There is significant uncertainty about the number of governments that would impose taxes in the absence of this legislation 

and the amount of revenue they would raise. Based on information 

from industry sources, however, CBO expects that many local governments likely would act to either raise current tax rates or impose new taxes on mobile telephone services. Over the past five 

years, subscribers to mobile phone services have been increasing by 

more than 10 percent annually. At the same time, consumer expenditures for and use of traditional wireline phones has decreased. State and local governments have traditionally taxed such 

telephone services and these market forces have had a negative impact on state and local tax collections. It is likely that at least some 

of these governments that have not already moved to recoup those 

revenue losses would do so in the absence of this legislation. 


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While it is difficult to predict what state and local governments 

would do in the absence of the moratorium, based on governmental 

and industry sources, CBO estimates that, in aggregate, they 

would likely forgo between $100 million and $150 million annually 

in each of the three years the moratorium would be in effect. 

Estimated impact on the private sector: H.R. 5252 would impose 

numerous private-sector mandates as defined in UMRA on providers of telecommunications services, IP-enabled voice services, 

Internet service providers, manufacturers and distributors of television receivers, broadcasters, video and satellite service providers, 

and others. At the same time, the act would provide some forms 

of regulatory and tax relief for portions of those industries. Based 

on information from government and industry sources, CBO estimates that the aggregate costs of complying with the mandates in 

H.R. 5252 would exceed the annual threshold established by 

UMRA for private-sector mandates ($128 million in 2006, adjusted 

annually for inflation). 

The major provisions of the act would impose private-sector mandates by: 

• Imposing new standards for multimode devices; 

• Increasing payments by telephone companies to the Universal Service Fund; 

• Imposing new regulations on interconnections among providers of telephone services; 

• Imposing new requirements on video service providers regarding franchise applications, interconnection with other providers, reporting and termination fees; 

• Regulating video content by: 

—Requiring satellite carriers to serve subscribers in 

Alaska and Hawaii; 

—Requiring manufacturers to include output control 

technologies in their products that receive over-the-air digital broadcasts; and 

—Making changes to certain FCC licenses related to 

transmissions on digital technologies; 

• Requiring broadcasters and retailers to use various methods to educate consumers about the transition to digital broadcasts; 

• Imposing energy standards on digital converter boxes; 

• Requiring cable companies to carry analog video streams; 

• Requiring broadcasters and multiple-channel video programming distributors to provide video description for the 

blind; 

• Requiring video service providers to prevent easy access to 

certain commercial matter during the broadcast of children’s 

programming; 

• Requiring Internet service providers to meet consumer 

protection guidelines; 

• Prohibiting the transmission of false or misleading information over caller-ID services; and 

• Requiring some providers to comply with reporting requirements, customer service and consumer protection requirements, as well as other incremental changes in industry regulations. 


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Based on its review of the legislation, CBO expects that the mandates contained in the titles on Interoperability (title I); Universal 

Service Reform and Interconnection (title II), Video Franchising 

(title III), Video Content (title IV), Digital Television (title VII), 

Protecting Children (title VIII), Internet Consumer Bill of Rights 

(title IX) and Truth in Caller ID (title XIII) would have the greatest cost to private-sector entities as defined in UMRA. What follows 

is a summary of the major provisions related to private-sector mandates. 

Interoperability: Standards for multimode devices 

Section 151 contains a mandate on manufacturers of multimode 

devices. Multimode devices, as the term is used in the act, refers 

to cell phones that contain multiple transmitters, for example a 

‘‘Wi-Fi’’ or ‘‘Bluetooth’’ transmitter. Manufacturers of such devices 

would be required to meet standards governing the acceptable level 

of radio frequency exposure. The cost of complying with this mandate would depend on the regulations to be issued by the FCC. 

Universal Service Fund 

Contributions to the Universal Service Fund. Section 211 would 

impose mandates on all communications service providers. The 

Universal Service Fund helps to underwrite telephone service predominantly for rural and, low-income customers. The act would require the FCC to develop a new contribution system and require 

all telecommunications companies—including Internet phone companies and broadband providers that currently do not contribute to 

universal service support—to make payments to the fund. Under 

current law, providers must pay fees into the USF on revenues received from providing interstate telecommunication service; revenues from intrastate services are exempt. This section would expand the base from which fees are derived for universal service to 

all forms of revenues. In the aggregate, the level of universal service fees is determined by the spending by the USF. 

Fee Increases to the Universal Service Fund. Section 252 would 

establish a new program (the Broadband for Unserved Areas Program) funded by the Universal Service Fund to encourage the deployment of high-speed Internet access in unserved rural areas. 

The program would consist of grants distributed on a competitive 

basis and be administered by the Universal Service Administrative 

Company. The act would cap spending for these grants at $500 million per year with unobligated balances used to support universal 

service more generally. 

To pay for the program, the FCC would have to raise universal 

service fees on telecommunications carriers since, under section 

254(d) of the Communications Act, universal service fees have to be 

sufficient to preserve universal service and this new program is to 

be funded under section 254(d). CBO estimates that the additional 

fees collected for this program would exceed $400 million from fiscal 2008 onward. 

Section 260 would increase the number of categories of rural 

health care providers eligible for subsidies under the Rural Health 

Care program of the Universal Service Fund. CBO estimates that 

these added fees will cost the industry roughly $10 million annually beginning in 2008. 


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Regulation of interconnection 

Section 213 would prohibit an incumbent telephone service provider from refusing to interconnect and carry the traffic of another 

carrier merely because the second provider is an IP-enabled carrier. 

Additionally, this section would eliminate the current exemption on 

IP-enabled voice carriers from ‘‘paying compensation for interstate 

traffic owed to another provider or carrier solely on the basis that 

such traffic is IP-enabled * * * ’’ Based on information from government and industry sources, the incremental cost of making 

interconnection available to IP-enabled carriers would be minimal. 

Secondly, this section would require IP-enabled voice carriers to 

pay all the traffic-related access charges that other telephone service providers currently must pay. According to industry estimates, 

IP-enabled telephone providers would pay about $200 million in 

such access charges in 2007 and increasing amounts thereafter. 

Those payments would be made to other telephone companies that 

are currently required to pay such charges and would represent 

within-industry transfers. 

Section 213 would require IP-enabled telephone providers to notify customers detailing the customer’s responsibility for ensuring 

access to emergency services. According to industry sources, the 

cost to provide such notices would be small. 

Section 257 would require voice communications providers to 

label traffic with sufficient information to allow for traffic identification by other communication networks that transport, transit, 

or terminate such traffic, including information on the identity of 

the originating provider, the calling and called parties. Currently, 

identifying information is often lost as traffic is passed from network to network. Without identifying information the carrier completing the call cannot identify the carrier originating the call and 

collect payment for the service of completing the call. CBO has no 

basis to estimate the cost of this labeling requirement. 

Regulation of the video services franchising process 

Regulation of Franchise Agreements. Section 312 would require 

video service providers to use a standard application form when applying for a new franchise. The form would require no additional 

information compared to the information applicants currently provide to a franchise authority during the application process. Consequently, this mandate should impose no new costs. 

Section 331 would establish requirements for franchise agreements and place limits on the fees and contributions that video 

service providers have to make under such agreements. The act 

would on average lower the fees franchisees currently have to pay. 

The section does permit the parties to negotiate tradeoffs between 

the franchise fees and the PEG contributions. Furthermore, under 

the legislation franchising authorities could no longer require a 

video service provider to construct a new institutional computer 

network. (Such networks are typically used by public agencies or 

enterprises.) 

Section 337 would prohibit discrimination by video service providers against potential subscribers on the basis of the race, religion, or income of that group. Discrimination based on race or religion is currently prohibited under law. The act would impose a 

mandate by prohibiting video service providers from discriminating 


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based on income. Existing franchise agreements tend to have buildout requirements, requiring the franchisee to serve all households 

in areas where the minimum population density is above a certain 

threshold. But until now the franchises were required to cover the 

entire area under the jurisdiction of the franchising authority. 

Under the act, since the applicants would be able to define their 

service area, video service providers could serve only portions of a 

community. While economic redlining typically occurs in non-network goods, such as housing, some companies may try to serve only 

areas with relatively higher incomes. The act would prohibit such 

actions. CBO has no basis to estimate the prevalence of such economic discrimination in the absence of this legislation, nor the cost 

of ending such discrimination. 

Interconnection. Section 333 would require multiple video service 

providers that serve a single franchise area to interconnect to 

transmit the public, educational, or governmental use channels 

without material degradation. If the video service providers cannot 

come to terms voluntarily on how to implement this requirement, 

they would have to comply with regulations issued by the FCC regarding interconnecting and cost-sharing. Estimates of the costs of 

these connections vary between $5 million and $30 million annually, depending on the number of new franchises. In addition, the 

installation of interconnection equipment could add another 10 percent to that cost in a one-time expense. 

Reporting Requirements for Video Service Providers. Section 315 

would require companies to provide an annual report to the FCC 

on the family tiers—packages of channels free of obscene and indecent programming—the company offers, the prices, marketing efforts and subscription levels of such family tiers. Such a report 

would impose low costs on the companies. 

In addition, at the request of the franchise authority, the video 

service providers would have to make their books and records 

available for periodic audits. Such a request would not impose substantial cost upon the video service provider directly. 

Prohibition on Early Termination Fees. Section 336 would amend 

the Communications Act to make it ‘‘unlawful for a video service 

provider to charge a subscriber an amount in excess of one month’s 

subscription fee as a penalty or service charge for terminating a 

subscription to the video service provider’s service before the date 

on which the subscription term ends.’’ CBO interprets this language to include only the service or penalty fee, and not any fee 

for missing or damaged equipment, which would not be a service 

fee. 

Many video service providers have year-long agreements with 

penalty fees for early termination. This provision is not retroactive 

so it would not affect existing contracts. The cable companies have 

already acquired their customers, paid for their investment and are 

willing to concentrate on offering month-to-month contracts. (Satellite companies are exempt.) This provision would mostly affect 

over-builders: that is, companies entering into the territory of an 

existing cable franchise. Such companies often have early termination clauses in their service agreements. Based on information 

from industry sources, CBO estimates that limiting these clauses 

would cost such new companies about $10 million to $12 million 

annually over the next five years. 


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Regulation of video content 

Satellite Services. Section 401 would expand the requirements on 

current satellite carriers and service resellers to provide service to 

subscribers in Alaska and Hawaii that is comparable to what they 

provide in the contiguous United States. This section also would require that each satellite for which a future license is to be used ‘‘for 

service in the contiguous United States’’ for direct-to-home video 

services or for any other direct-to-consumer service satisfy capability requirements. (Those requirements would be stated in terms 

of earthbound signal strength and satellite reception for providing 

service to Alaska and Hawaii.) Both the specific satellite capability 

requirements as well as the extent of the corresponding service provision (that is, to large cities in Alaska and Hawaii or to the entirety of each state) varies by type of satellite service. According to 

industry sources, the cost to comply with this provision would increase the cost of a satellite carrier to comply with a license by 

about 15 percent. 

Digital Content Protection. Sections 452 and 454 would authorize 

and ratify earlier FCC Reports and Orders mandating the use of 

output control technologies (‘‘broadcast flags’’) and approving— based on interim criteria—a specific set of technologies for that 

purpose. As a result, those sections would impose several mandates 

on the private sector. In particular, section 452 would require that 

an approved output control technology be incorporated into television receivers, digital recording equipment, and certain other devices that directly or indirectly receive over-the-air digital televison 

broadcasts. Section 454 would require the commission to initiate a 

process that would impose similar controls on digital radio. 

CBO expects that the costs to the private sector of complying 

with the broadcast flag requirement of section 452 would not exceed the annual threshold established in UMRA for private-sector 

mandates because the expense of complying with it is limited by 

the several factors, including: (i) the approved output control technologies have already been implemented in microelectronic components that are inexpensive to manufacture, avoiding thereby as 

well expensive design efforts for new chips; and (ii) the costs to license the intellectual property embodied in the approved output 

control technologies are limited to administrative fees. In contrast, 

the costs to implement the requirements of section 454 would depend on the outcome of FCC proceedings. 

Licensing Terms for Broadcast Flag Technologies. Section 

452(d)(3) would modify the terms under which the output control 

technologies approved in currently-signed licenses for some of the 

output control technologies considered in previous rulemaking by 

the FCC (FCC 03–273—In the Matter of Digital Broadcast Content 

Protection, Report and Order and Further Notice of Proposed Rulemaking, November 4, 2003) and (FCC 04–193—In the Matter of 

Digital Output Protection Technology and Recording Method Certification, Order, August 12, 2004). This section would thereby impose a private-sector mandate by requiring that licenses for approved output control technologies for equipment receiving overthe-air digital television broadcasts be modified to remove clauses 

which prevent licensees from asserting patent rights; otherwise, 

the associated technologies lose their approval. CBO has no basis 

to estimate the cost of this mandate. 


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Compulsory License Terms and Conditions. Section 453 would 

create compulsory licenses for certain parties that make use of digital audio broadcasts. It also would establish the conditions that 

such entities must satisfy in order to qualify for them. It thus 

would impose two mandates on the private sector requiring that: • Organizations that monitor digital radio broadcasts or satellite transmissions, either for allocating royalties due to copyright owners or for providing other types of measurement services (e.g., for determining the frequency of news stories about 

Members of Congress) receive a free, or de minimis-cost license 

for ‘‘access(ing) and retransmit(ing) any content contained in 

such transmissions protected by copyright protection or similar 

technologies’’ in order to carry out their activities; and • Organizations benefitting from such free or de minimiscost licenses ‘‘employ reasonable methods to protect’’ the digital 

audio content they access under those licenses ‘‘from further 

distribution.’’ CBO cannot estimate the cost to the private sector of these requirements. Currently, organizations making such use of audio 

broadcasts or transmissions that are affected through existing technology do not pay royalties, and do not incur substantial costs to 

protect that content. The two provisions of section 453 would effectively maintain a no-royalty regime under a new technology—digital audio—and private-sector sources cannot project either forgone 

royalties or additional costs of protecting the associated digital content. 

Digital television education 

H.R. 5252 includes several provisions to educate consumers 

about the nation’s transition to digital-only television broadcasting 

by February 2009. Section 701 would impose mandates by requiring manufacturers to put labels on all analog TV sets sold in the 

United States warning consumers of the pending analog switch off 

in February 2009. Section 701 also would require that a retailer of 

analog-only television sets that sells such television sets via direct 

mail, catalog, or electronic means to include in all advertisements 

or descriptions of such television set a warning about the transition 

to digital-only broadcasts. The cost of such labeling is likely to be 

minimal. Television sets already have printed packaging and 

screen labels. Changing these labels is not likely to be expensive. 

Section 701 also would impose notification requirements on 

broadcasters for their public service announcements (PSAs). Each 

broadcast television licensee would be required to air two 30-second 

public service announcements each day for three months beginning 

December 2007 to inform consumers about the federally subsidized 

digital-to-analog convertor box discount program. Beginning November 17, 2008, broadcasters would have to start running PSAs 

alerting consumers to the coming switch of analog broadcasts. Such 

public service announcements must be in English, Spanish, and 

other languages as appropriate. 

CBO assumes that the broadcasters will be making many such 

announcements on their own to let their audience know of the shift 

in their broadcast frequency during the transition to digital television. CBO also assumes that the mandated public service announcements would replace other public service announcements 


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during those periods. Consequently, CBO expects that this requirement for public service announcements would not impose substantial additional cost on broadcasters. 

Section 701(b) requires the FCC to establish a consumer outreach plan, including a requirement that all the licensed broadcasters in a designated market area submit a joint plan to the FCC 

that addresses the public outreach and public service announcement requirements. This joint plan would include a description of 

how each broadcaster intends to fulfill the PSA requirements, market research by each broadcaster regarding projected local consumer demand for converter boxes, and be shared with retailers in 

the area to help inform their stocking plans. CBO estimates that 

these requirements could be fulfilled at a small cost for each television market. The report to the FCC would be due July 15, 2007. 

Energy standards for digital television converter boxes 

Section 701 would require the Assistant Secretary of Commerce 

for Communication and Information, in consultation with the Secretary of Energy, to set the energy standards for digital-to-analog 

set-top converter boxes. The new standards would have to be set 

within one year of enactment. Under current law, the converter 

boxes are supposed to go on sale in January of 2008. If the energy 

standards do not go into effect until a year after passage, which 

would be October 2007 at earliest, the two-month gap would not 

give the supply chain sufficient time to stock the stores with the 

requisite boxes. 

The energy standards themselves could lower the costs of the 

manufacturers of digital to analog set top converter boxes, if the 

national standards are lower than the standards set by various 

states that have such regulations. The cost of the mandate would 

depend on final rules set by the Department of Commerce. 

Carriage of analog video streams 

Section 701(d) would require cable operators to carry both the 

original digital video stream as well as a downconverted analog 

version of it. The legislation would permit such down conversion 

declaring that it is not material degradation. The section also 

would permit the cable companies to convert high definition digital 

video streams into standard definition digital video streams. Cable 

companies with capacity of less than 550 megahertz are exempted 

from the requirement to carry both streams. The National Cable 

and Telecommunications Association has committed its members to 

carry both streams. Consequently, the industry is already implementing the policy. The mandate would become effective on the day 

that analog television transmissions cease. 

Video description rule to aid the blind 

Section 702 would reinstate the video description rules of the 

FCC report and order entitled Implementation of Video Description 

of Video Programming (15 FCCR 15,230). Reinstating the provisions of that report and order would constitute a new mandate by 

requiring affiliates of the top four commercial television broadcast 

networks in the top 25 television markets to provide at least 50 

hours per calendar quarter of prime time or children’s programming with video description. This section also would require each 


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multichannel video programming distributor (MVPD) with at least 

50,000 subscribers to provide at least 50 hours per calendar quarter of prime time or children’s programming with video description 

on each of the top five nationally distributed networks they carry. 

In addition, all broadcast stations and MVPDs with video description capability, regardless of market size, would be required to 

‘‘pass through’’ any video description received from network programs they distribute. According to data from the FCC, more than 

80 percent of broadcast affiliates and almost 70 percent of MVPDs 

in their top 25 respective markets possessed video description capability by the year 2000. Based on information from government 

sources, CBO estimates that the incremental cost to the industry 

of implementing the mandates in section 702 would not exceed $15 

million annually over the next five years. 

Protecting children 

Title VIII would impose a mandate on video service providers by 

requiring them to follow new guidelines to be established by FCC 

to prevent the offering of child pornography. The cost of this mandate would depend on the regulations established by FCC. Further, 

this title would make it the responsibility of video service providers, as well as cable operators, multichannel video programing 

distributors, satellite carriers, providers of over-the-air broadcast 

programming, and broadband providers to prevent interactivity 

with commercial matter during the broadcast of any children’s programming. The mandate would take effect immediately. And finally, this title contains a mandate on owners and operators of 

commercial web sites that contain ‘‘sexually explicit’’ materials. 

Owners of these sites would be required to comply with new requirements to be set by the FTC. The cost of complying with these 

mandates would depend on the results of future rulemaking. 

Consumer Internet Bill of Rights 

Section 903 contains a Consumer Internet Bill of Rights that 

would direct Internet service providers to allow subscribers to access and post lawful content, access the web pages of the consumers’ choosing, run any applications of the consumers’ choosing, 

connect any legal devise to the network, and receive ‘‘clear and conspicuous’’ information about connection speeds, capabilities, and 

pricing. At present, most if not all Internet service providers provide the access required by this section. This mandate would preempt businesses from changing their current practices. Consequently, these rights could be provided at little cost to the Internet service providers. 

In addition, section 905 would require Internet service providers 

to offer high-speed Internet services without requiring consumers 

to also subscribe to additional telecommunications services. Currently, most Internet service providers and cable companies offer 

stand-alone Internet access. Phone companies are also offering 

stand-alone packages in their fiber-optic offerings. Similarly, most 

wireless companies that are in the process of rolling out Internet 

access also offer stand-alone versions of the service. Such service 

may require purchase of special cards to use with computers. Because the industry is largely moving in this direction, the incremental cost to comply with this mandate would be relatively small. 


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Truth in caller-ID 

By prohibiting certain transmissions of caller-ID information, 

section 1302 contains a mandate on persons who would legitimately need to transmit such information. This section would make 

it illegal to transmit misleading or inaccurate caller-ID information, but would require the FCC to promulgate regulations to implement this section. The FCC would have the discretion to exempt 

‘‘legitimate’’ reasons to transmit false caller-ID information (for example, battered women’s shelters). The cost of complying with this 

mandate, if any, would depend on the regulations established by 

the FCC. 

Previous CBO estimate: On May 3, 2006, CBO transmittd a cost 

estimate for H.R. 5252, the Communications Opportunity, Promotion, and Enhancement Act of 2006, as ordered reported by the 

House Committee on Energy and Commerce on April 27, 2006. 

That version of the legislation did not contain provisions to add or 

change Universal Service Fund programs or permit the use of unlicensed radio spectrum. The House version contained a broader provision to cap certain fees charged by local franchising authorities, 

which would result in net revenue losses to those entities totaling 

between $100 million and $350 million annually by 2011. Further, 

the House legislation did not contain the moratorium on new taxes 

placed on mobile telephone services or the permanent extension of 

the Internet Tax Freedom Act. CBO’s cost estimates reflect the different provisions in the two versions of H.R. 5252. 

The Senate version of H.R. 5252 has a provision in common with 

the House version of the act. Both versions of the legislation would 

require Internet service providers to offer stand-alone Internet 

service—broadband in the House version and the highest Internet 

access speed offered in the case or the Senate version. In both instances, CBO noted that most of the Internet service providers already offered stand-alone service, and thus, that the likely cost of 

that private-sector mandate would be low. 

Estimated prepared by: Federal costs: Susan Willie and Kathleen 

Gramp; Impact on State and local and tribal governments: Sarah 

Puro; Impact on the private sector: Craig Cammarata, Fatimot 

Ladipo, Nathan Musick, Amy Petz, and 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: 

NUMBER OF PERSONS COVERED

The FCC may issue regulations to implement the requirement 

set forth in the reported bill that touch on a number of aspects of 

communications policy with implications for large portions of the 

communications industry. 


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ECONOMIC IMPACT

H.R. 5252 would not have an adverse economic impact on the nation’s economy. This bill would facilitate the deployment of advanced communications networks which would trigger significant 

investment by communications companies and the competition in 

voice and video services facilitated by the bill is projected to result 

in billions of dollars worth of savings for American consumers. 

PRIVACY

The reported bill would not materially impact the personal privacy of U.S. citizens. 

PAPERWORK

The reported bill has some reporting requirements for various 

sectors of the communications industry but should not significantly 

increase paperwork requirements for individuals and businesses. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title 

This section would provide that the legislation may be cited as 

the ‘‘Advanced Telecommunications and Opportunities Reform Act’’

or the ‘‘Communications Act of 2006’’. 

Section 2. Amendment of Communications Act of 1934 

This section clarifies that unless otherwise specified, any amendment or repeal is to the Communications Act of 1934 (47 U.S.C. 

151 et seq.). 

Section 3. Table of contents 

This section sets forth the table of contents for this Act, which 

is comprised of fourteen separate titles. 

TITLE I—WAR ON TERRORISM

SUBTITLE A—CALL HOME

Section 101. Telephone rates for members of armed forces deployed 

abroad 

Section 101 would require the FCC to take such action as may 

be necessary, except for rate regulation, to reduce phone rates for 

Armed Forces personnel deployed overseas. 

Subsection 101(a) would require the FCC to take such action as 

may be necessary to reduce telephone rates for Armed Forces personnel deployed overseas, including the waiver of government fees, 

assessments, or other costs, but would preclude the Commission 

from regulating rates to do so. 

Subsection 101(b) would require that in seeking to reduce phone 

rates, the Commission shall (1) evaluate and analyze the costs of 

calls to and from official duty stations including vessels whether in 

port or underway, (2) evaluate methods of reducing rates including 

deployment of new technology such as Voice over Internet Protocol 

(VoIP) or other Internet protocol technology, (3) encourage providers of telecommunications to adopt flexible billing procedures 

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sonnel from their families, and (4) seek agreements with foreign 

governments to reduce international surcharges on phone calls. 

Subsection 101(c) defines ‘‘armed forces’’ and ‘‘military base’’ as 

used in Subtitle A. 

Section 102. Repeal of existing authorization 

Section 102 would repeal section 213 of the Telecommunications 

Authorization Act of 1992 (47 U.S.C. 201 note), which currently requires the FCC to seek to reduce phone rates for Armed Forces personnel in certain specified countries. 

SUBTITLE B—INTEROPERABILITY

Section 151. Interoperable emergency communications 

Subsection 151(a) would amend section 3006 of the Deficit Reduction Act of 2005, Public Law 109–171 (47 U.S.C. 309 note), by 

adding requirements for awarding the $1 billion in grant funds 

made available under the Deficit Reduction Act for public safety 

agencies to improve interoperable emergency communications. The 

new subsection also would require the allocation of funds for interoperable communications system equipment, coordination and 

planning, and strategic technology reserves that would provide key 

public safety officials with a cache of emergency interoperable communications equipment during an emergency or major disaster. 

This section would also amend the Deficit Reduction Act to require 

that the grant program be administered by the Secretary of Homeland Security instead of the Secretary of Commerce as currently required under that Act. 

New subsection 3006(d) would require the Secretary of Homeland 

Security to make at least 25 percent of grant funds available for 

equipment that can utilize reallocated public safety spectrum, or 

for equipment that can enable interoperability with systems or networks that can utilize such spectrum. The Secretary would be required to allocate a majority of such funds to public safety agencies 

(as defined by section 3006) based on threat and risk factors used 

by the Department of Homeland Security (DHS) to allocate discretionary grants under the heading ‘‘Office for Domestic Preparedness, State and Local Programs’’ in the DHS Appropriations Act of 

2006, P.L. 109–90. The Secretary would be required to allocate the 

remainder of such funds equally to each State for allocation by the 

States to public safety agencies. 

New subsection 3006(e) would require the Secretary of Homeland 

Security to make at least 25 percent of the grant funds available 

for interoperable emergency communications coordination, planning, and training grants. The Secretary would be required to allocate a majority of such coordination, planning and training grants 

to public safety agencies (as defined by section 3006) based on 

threat and risk factors used by DHS to allocate discretionary 

grants under the heading ‘‘Office for Domestic Preparedness, State 

and Local Programs’’ in the DHS Appropriations Act of 2006, P.L. 

109–90. The Secretary would be required to allocate the remainder 

of such coordination, planning, and training grants equally to each 

State for allocation by the States to public safety agencies. 

New subsection 3006(f) would require the Secretary of Homeland 

Security to make up to 25 percent of the grant funds available to 


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establish and implement a strategic technology reserve to preposition or secure interoperable communications systems in advance for 

immediate deployment in an emergency or major disaster. In allocating grants, the Secretary would be required to consider the continuing evolution of communications technologies and devices and 

to ensure that a substantial part of the reserve involves contracts 

for rapid deployment of equipment, supplies, and systems rather 

than warehoused equipment. Notwithstanding this requirement, 

the Secretary would be required to ensure that reserves include 

equipment on hand for the Governor of each State and other key 

emergency response officials. The Secretary would be required to 

allocate a portion of the strategic reserve funds for block grants to 

each State to establish a reserve within its borders and a portion 

for regional Federal reserves to be held in each of the Federal 

Emergency Management Agency’s regional offices and each of the 

noncontiguous States. 

New subsection 3006(g) would require the Secretary of Homeland 

Security to identify and if necessary encourage the development 

and implementation of consensus standards for interoperable communications systems to the greatest extent possible. It would condition grant eligibility on submission of an application at such time 

and in such form as the Secretary of Homeland Security may require. Such application would be required to include a detailed explanation of how grants would be used to improve local communications interoperability and ensure inter-agency interoperability during an emergency or major disaster. This section would require assurance by grant applicants that they would purchase equipment 

and systems compatible with the flexible and open architecture requirements promulgated by DHS pursuant to the Intelligence Reform and Terrorism Prevention Act of 2004, P.L. 108–458 (IRTPA). 

Grant administrators would also be required to obtain assurances 

that purchases would meet voluntary consensus standards developed by DHS under section 7303(a)(1)(D) of IRTPA and would be 

consistent with the common grant guidance established under section 7303(a)(1)(H) of that Act. 

New subsection 3006(h) would require the Secretary of Homeland 

Security, in consultation with the FCC, to promulgate regulations 

to implement the new provisions required by Subsection 151(a) 

within 90 days of enactment, specifically with respect to new subsections 3006(d) through (f). 

Subsection 151(b) would require the FCC within 180 days of enactment to streamline its process, if consistent with the public interest, for certifying multi-mode devices such as a wireless phone 

with more than one type of radio transmitter. 

Subsection 151(c) would require the FCC, in coordination with 

the Secretary of Homeland Security, within 1 year, to evaluate the 

technical feasibility of creating a back-up emergency communications system that takes into account next generation and advanced 

technologies. In doing so, the Commission would be required to 

evaluate all reasonable options, including satellites, wireless and 

terrestrially-based communications systems. The Commission 

would further be required to include in its evaluation a survey of 

Federal agencies; the feasibility of using private networks; the 

technical options, costs, and deployment methods of software and 

equipment for public safety entities; and the feasibility and cost of 


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necessary changes to network operations centers of terrestrialbased or satellite systems. The Commission would also be required 

to submit to Congress a report detailing its findings, including a 

full inventory of existing public and private resources most efficiently capable of providing emergency communications. 

Subsection 151(d) would require the Secretary of Homeland Security to take into consideration the role of PSAPs and E–911 systems, and to reserve a portion of the grant funds for projects that 

enable interoperability and advance E–911 deployment. 

Section 152. Transfer of Public Safety Grant Program to the Department of Homeland Security 

Section 152 would amend section 3006 of the Deficit Reduction 

Act (DRA) to state that the interoperable communications grant 

program requirements in that section shall be administered by the 

Secretary of Homeland Security rather than the Assistant Secretary of Commerce. This section would also prohibit DHS from 

using grant funds for any purpose other than those provided in section 3006 of the DRA. 

Section 153. Public safety interoperable communications grants 

Section 153 would require the Secretary of Homeland Security to 

award the entire $1 billion authorized for grant funds no later than 

September 30, 2006. 

Section 154. Eligibility of IP-enabled services 

Section 154 would amend section 158(b)(1)(A) of the National 

Telecommunications and Information Administration (NTIA) Organization Act to authorize Phase II implementation grants under 

that Act to be used for services related to the migration to an E–

911 capable emergency network that uses Internet Protocol and 

provides E–911 services. 

TITLE II—UNIVERSAL SERVICE REFORM; INTERCONNECTION

General remarks on the importance of universal service 

Through the years our nation’s universal service program has ensured that rural Americans have access to basic and advanced communications services that are comparable in price and scope to 

those available to any other American. Accordingly, today all Americans enjoy the benefits that are afforded by the resulting product 

of this policy, a nationwide integrated communications network 

comprised of all forms of communications technologies. 

The concept of universal service has been an integral part of 

America’s communications policy for nearly 100 years. Initially established as more of a regulatory scheme, the policy was later enacted in statutory terms via the Communications Act of 1934. Congress more formally and extensively codified the policy in detailed 

terms within the Telecommunications Act of 1996. Recently, this 

Committee held a series of hearings on the subject of universal 

service and our nation’s communications policies. The overriding 

conclusion of these forums was that our nation must not only maintain, but should move aggressively to strengthen and enhance our 

national policy of universal service to ensure it is able to help lead 

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tering. The dramatic changes we have observed take place with regard to communications technologies in just the past decade mandates that we do no less. 

Accordingly the Committee had devoted an entire title of the 

Communications Act of 2006 to effectuating this universal service 

endeavor. The language provides a broad definition of communications service that overcomes the dilemmas of viewing services from 

a particular technological or regulatory perspective, while at the 

same time giving the FCC the flexibility it needs to craft a rational 

contribution mechanism. And importantly the language includes a 

series of provisions designed to ensure universal service support is 

appropriately utilized and otherwise accounted for. 

Section 201. Short title 

SUBTITLE A—CONTRIBUTIONS TO UNIVERSAL SERVICE

Section 211. Stabilization of universal service funding 

Subsection (a) would amend section 254(d) of the Communications Act to expand the base of support for the universal service 

program. 

New section 254(d)(1)(A) would require communications service 

providers (providers of telecommunications service , broadband 

service and IP-enabled voice service) to contribute to universal 

service. 

New section 254(d)(1)(B) would require the Commission to allocate contributions between such entities in a manner that is as 

competitively and technologically neutral as possible, and is specific, predictable and sufficient to preserve and sustain universal 

service. In addition, any methodology would not charge a particular 

service, transaction, or activity more than once for universal service contributions under this section. This language would not preclude a service, transaction or activity from being assessed for both 

a Federal and a State universal service program. 

New section 254(d)(1)(C) would require the Commission to adjust 

requirements for low volume users in setting its contribution mechanism. 

Proposed section 254(d)(2) would allow the Commission to exempt providers from universal service contributions if contributions 

would be de minimis; the communications service is provided pursuant to the Lifeline Assistance Program; the communications service is provided only to in-vehicle emergency communications customers; or the communications service is provided by a not-for-profit communications service provider, which provides voice mailboxes 

to low income consumers and the homeless. The Committee does 

not intend this section to reduce or otherwise limit the FCC’s existing authority under section 254 to assist low-income and disadvantaged populations to receive communications services. 

New section 254(d)(3)(A) would provide the Commission with 

flexibility to assess contributions on the basis of total revenue, inuse working phone numbers or any other identifier protocol or network connections, or network capacity. 

New section 254(d)(3)(B) would provide that the Commission may 

use more than one methodology provided in new section 

254(d)(3)(A) if no one methodology meets all of the goals of supporting universal service. 


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New section 254(d)(3)(C) would provide the Commission with authority in connection with contribution assessments over the interstate, intrastate, and international portions of communications 

service. 

New section 254(d)(3)(D) would permit the Commission to provide a discount for residential group or family plans if it adopted 

a numbers based contribution mechanism. 

New section 254(d)(4) would state that providers of communications service are not exempt from contributing to universal service 

solely because they do not receive funds from universal service. 

New section 254(d)(5) would allow any entity that contributes to 

universal service to reflect the amount of the contribution on its 

billing statements, but would prohibit including administrative 

costs in such line item and would prohibit any separate delineation 

of any administrative costs. 

New section 254(d)(6) would define ‘‘broadband service’’, ‘‘communications service’’, ‘‘in-vehicle emergency communications’’, ‘‘connection’’, ‘‘IP-enabled voice service’’, and ‘‘working phone numbers’’. 

New section 254(f) would provide additional flexibility to States 

in administering State universal service programs. States would be 

permitted to assess the revenue, in-use working phone numbers or 

any other network connections, capacity, or any combination thereof. This section would permit States to impose universal service assessments on telecommunications service and IP-enabled voice 

services. 

Subsection 211(a)(2) would make a conforming amendment to 

section 254(b)(4). 

Subsection (b)(1) would hold the universal service funds outside 

of the budget of the United States, the Congressional budget, the 

Balanced Budget and Emergency Deficit Control Act of 1985 or any 

other law requiring budget sequesters. 

Subsection (b)(2) would exempt the collections and disbursements 

of the universal service program from sections of title 31 of the 

United States Code. 

Subsection (c) would require that universal service accounts be 

kept in accordance with generally accepted accounting principles 

for Federal agencies and in accordance with the U.S. Government 

Standard General Ledger. The subsection would limit the investment of unexpended universal service balances to Federal securities. 

Subsection (d) would require the Commission to complete its 

rulemaking implementing new section 254(d) within 180 days. 

Subsection (e) would require that any rule issued under subsection (d) be provided to Congress 90 days before its effective date. 

The Committee notes that nothing in this section should be interpreted as precluding the Commission or States from taking a similar approach with respect to collecting telecommunications relay 

service funding. 

Section 212. Modification of rural video service exemption 

Subsection (a) would amend section 251(f)(1) so that certain rural 

carriers could offer video service without losing the exemption provided by section 251(f)(1), but would require such carriers to interconnect. 


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Subsection (b) would extend the interconnection requirements of 

section 251 to 2 percent carriers that would otherwise be exempt. 

Section 213. Interconnection 

New section 715(a) would give facilities-based IP-enabled voice 

service providers the same rights, duties, and obligations as telecommunications carriers under sections 251 and 252 of the Communications Act as well as obligations under section 276 of the 

Communications Act, if the provider elects to assert such rights. 

The Commission shall apply this standard in a manner that ensures that only bona fide providers of services who are legitimately 

deploying facilities are able to take advantage of the provision, but 

should not use it to create barriers of entry for new providers who 

are deploying facilities. The section would also provide that telecommunications carriers cannot refuse traffic solely because it is 

IP-enabled. Similarly, providers would not be able to avoid paying 

compensation for interstate traffic owed to other providers solely on 

the basis that the traffic is IP-enabled. 

New section 715(b) would extend the rights, obligations and duties of sections 225, 255 and 710 to IP-enabled voice service providers and manufacturers of IP-enabled voice service equipment. 

As new Internet technologies change the way our nation communicates and receives information, people with disabilities will be 

presented with new opportunities to enhance their independence 

and productivity provided that safeguards are put into place to ensure that these individuals are able to access these technologies to 

the same extent as non-disabled Americans. This section would ensure that IP-enabled technologies incorporate features that permit 

disability access, while these technologies are still being developed, 

rather than later, when retrofitting them could become burdensome 

and expensive. 

New section 715(c) would require IP-enabled voice service providers to provide notice to customers with an emergency response 

system that the IP-enabled voice service could impact the functioning of their system. 

New section 715(e) would clarify that this section does not affect 

tax law. 

New section 715(f) would define the terms ‘‘emergency response 

system’’, ‘‘emergency response center’’, ‘‘facilities-based’’, and ‘‘IPenabled voice service’’. 

Section 214. Treatment of substitute services under section 254(g) 

New section 214 would extend the requirements of section 254(g) 

to services that are effective substitutes for interexchange telecommunications service. 

SUBTITLE B—DISTRIBUTIONS FROM UNIVERSAL SERVICE

Section 251. Encouraging broadband deployment 

New section 251(a) would require an eligible communications 

carrier to file biennial reports on broadband deployment to the 

Commission and State Commissions detailing for each of its service 

areas: (1) the percentage of households to which it offers broadband 

service, (2) the percentage of households that subscribe to 

broadband service, (3) the service plans and speeds at which 


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broadband service is offered, (4) the types of technologies used in 

offering broadband service, and (5) any planned upgrade or rollout 

of broadband service in the next 2 years. 

New section 251(b) would provide for protection of sensitive business information. 

New section 251(c) would require the Commission to include the 

data in its section 706 reports, but only in a manner that complies 

with new section 251(b). 

Section 252. Establishment of broadband program within universal 

service fund 

New section 254A(a) would establish a broadband for unserved 

areas program to provide financial assistance for the deployment of 

broadband equipment and infrastructure in unserved areas. The 

program shall focus primarily on the initial deployment, but may 

provide some ongoing financial assistance for the first few years to 

ensure that a provider has time to gain subscribers. In determining 

whether to provide any continuing assistance, smaller carriers with 

2 percent or fewer of the Nation’s broadband connections to end 

users should be given preference, while providers with more than 

2 percent of the Nation’s broadband connections to end users 

should be presumed to not need continuing assistance. 

New section 254A(b)(1) would require the Commission to establish rules implementing the broadband for unserved areas program 

and provides the Commission with guidance as to what its rules 

should cover. 

New section 254A(b)(2) would clarify that wired, wireless, and 

satellite broadband providers are eligible and that satellite 

broadband customer premise equipment would be supported. 

New section 254A(b)(3) would provide that the availability of satellite broadband service in an area where subscribership to such 

service is de minimis does not preclude an area from eligibility. 

New section 254A(b)(4) would state that multiple areas within a 

State may be designated as unserved. 

New section 254A(c) would limit the size of the fund to $500 million per fiscal year, would specify that unused funds be applied to 

support section 254 generally, and would limit support to 1 facilities-based service provider per unserved area. 

New section 254A(d) would specify that section 410 of the Communications Act would not apply to this subsection. 

New section 254A(e) would define ‘‘broadband service’’ and require the Commission to review the transmission speeds in the definition biannually. 

New section 254(A)(f) would require the Commission to make annual reports to Congress about the sufficiency of funds for this program. 

Funding clarification 

The Committee wishes to make it absolutely clear that while the 

funds authorized for this program are to be collected and distributed by the Universal Service Administrative Company (USAC) via 

the statutory and regulatory directives associated with section 

254(d) of the Communications Act as amended, that just as is the 

case with all the other programs operated via that section of Federal law, each has its own funding authorizations and obligations 


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and the committee does not intend for funds collected for this program to result in any decrease in funding for any other universal 

service program. 

Section 253. Competitive neutrality principle 

Section 253 would amend section 254(b) of the Communications 

Act by adding a new paragraph that would state that universal 

service support mechanisms and rules should be competitively neutral. Such a provision would clarify that the Commission should not 

unfairly favor one technology or provider over another. For example, the Commission should not favor wireline providers over wireless providers. 

Section 254. Transition rules for modifications adversely affecting 

carriers 

This section would require the Commission to adopt transition 

mechanisms of not less than 5 years in duration to alleviate any 

harmful effect of changes to the support provided to existing eligible communications carriers. 

Section 255. Eligibility guidelines 

This section amends section 214 of the Communications Act to 

set forth eligibility guidelines for eligible communications carriers. 

New section 214(e)(7)(A)(i) would require eligible communications 

carriers to commit to providing service throughout their designated 

service area to all customers. 

New section 214(e)(7)(A)(ii) would require eligible communications carriers to certify the timely provisioning of service so long 

as it can be done at a reasonable cost. 

New section 214(e)(7)(A)(iii) would require eligible communications carriers to submit a plan specifying proposed upgrades or network improvements that would be accomplished with universal 

service funding over the next two years. 

New section 214(e)(7)(A)(iv) would require eligible communications carriers to demonstrate their ability to remain functional in 

emergencies. 

New section 214(e)(7)(A)(v) would require eligible communications carriers to commit to meeting applicable consumer protection 

and service quality standards. 

New section 214(e)(7)(vi) would require eligible communications 

carriers to comply with annual reporting requirements. 

New section 214(e)(7)(B) would only apply the eligibility criteria 

on prospective basis. 

New section 214(e)(7)(C) would require that any application for 

status as an eligible communications carrier be acted on within 6 

months. The Committee expects that the Commission would acknowledge the differences in service areas tied to existing plant 

and geographic licenses between different providers. 

New section 214(e)(7)(D) would define ‘‘eligible communications 

carrier’’. 

Section 256. Primary line 

New section 214(e)(8) would prohibit the Commission from limiting universal service support to a single connection or primary 


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line and ensure that all residential and business lines are eligible 

for support. 

Section 257. Phantom traffic 

New section 254(m)(1) would require any telecommunications 

service or IP-enabled voice service to identify its traffic with the 

identity of the originating provider, the class of service, the calling 

and called parties, and such other information as the Commission 

deems appropriate to the extent it is technically possible. It would 

also require such information not be stripped during transport by 

any provider unless permitted by the Commission. In the case of 

IP traffic, it is not the Committee’s intent that every packet be required to include the identification information so long as the information is conveyed within the whole of the packets transmitted. 

New section 254(m)(2) would require the Commission, in consultation with State Commissions, to initiate a rulemaking within 

180 days to establish rules and enforcement provisions for traffic 

identification. 

New section 254(m)(3) would require the Commission to establish 

and enforce clear penalties, fines and sanctions. 

New section 254(m)(4) would define ‘‘voice communication service’’ for this subsection. 

Subsection (b) would make conforming edits to include payphone 

calls within the definition in 47 U.S.C. 276(d). 

Section 258. Random audits 

New section 254(N) would require random audits of all recipients 

of universal service funds regarding the receipt and use of universal service funds. With respect to eligible communications carriers, such audits would also examine its relative costs to provide 

service compared to similar carriers. The Commission would also 

be required to take appropriate remedial action with respect to improper use of universal service funds. The audits would be funded 

out of universal service program funds. 

Section 259. Integrity and accountability 

Section 259(a) would require the Commission to—

(1) ensure the integrity and accountability of all universal 

service programs established under sections 254 and 254A; and 

(2) within 180 days—

(A) identify appropriate fiscal controls and accountability 

standards for all universal service programs; 

(B) define the administrative structure and processes of 

USAC; 

(C) create performance goals and measures for the program; 

(D) create performance goals and measures for the 

schools and libraries program; and 

(E) establish appropriate enforcement actions for rule 

violations and actions taken in connection with the schools 

and libraries program. 

Specifically, the bill directs the Commission and USAC to develop processes for measuring the progress of schools and libraries 

toward achieving advances in connectivity goals, such as speed and 

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flect the Universal Service support mechanism’s longstanding mission to provide schools and libraries with access to an evolving 

level of advanced communications services and that the measures 

should acknowledge schools’ and libraries’ unique, individual advanced telecommunications requirements, which vary greatly by 

State, school or library. For example, the State of Maine’s laptop 

program leverages E-rate supported connectivity in a different way 

than the internal connection and classroom computers model used 

in West Virginia. In another case, the Pribil School District in 

Alaska graduated two students educated solely through video conference provided through E-rate connectivity. 

Data collection for the performance measure system should be 

minimally burdensome on applicants. Such collection could occur as 

a component of the existing application submission process. Reporting progress as part of the application process would enable USAC 

to measure progress over time and meet the GAO Report 05–151 

recommendation to collect data on private schools and libraries, as 

well. 

Subsection 259(b) would permanently ban any vendor that has 

been convicted of a criminal fraud from participating in the schools 

and libraries program. 

Section 260. Improving effectiveness of rural healthcare support 

mechanism 

This section would amend section 254(h) of the Communications 

Act. 

Subsection (a)(1) would make formatting changes. 

Subsection (a)(2) would add ‘‘deployment of reasonable infrastructure’’ as part of what carriers must provide upon request. 

Subsection (a)(3)would clarify that carriers should be reimbursed 

promptly. 

Subsection (a)(4) would provide that public or nonprofit 

healthcare providers in rural areas would be eligible for discounts 

and would amend the definition of ‘‘rural area’’. 

Subsections (a)(5) and (6) would expand the list of health care 

providers. 

Subsection (b) would clarify that nothing in this Act is meant to 

alter the amount of support or the means of distribution for the 

schools, libraries, rural health care, life-line, link-up and toll limitation programs. 

Subsection (c) would require that the American Community Survey be expanded to collect Internet access information. 

Section 261. Communications services for libraries 

This section would amend section 254(h)(4) of the Communications Act to clarify that Native American libraries or library consortia are eligible to receive funds regardless of the entity that provides such library or library consortia with assistance under the Library Services and Technology Act. 

Section 262. USF support for insular areas 

This section would require the Federal Communications Commission within 180 days of enactment to issue an order establishing 

a predictable and sufficient support mechanism as part of the Federal Universal Service Fund for eligible carriers in insular areas. 


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The areas covered by these rules would expressly include any insular area that is a state comprised entirely of islands, and would include assistance for high-cost communications transport services 

used by carriers whose service territory includes multiple noncontiguous service areas. 

TITLE III—STREAMLINING THE FRANCHISING PROCESS

In drafting the franchise title, the Committee attempted to address concerns expressed by the local governments. These changes 

include: (1) increasing the number of days for the franchise application process from 75 to 90 days, (2) providing the full amount of 

financial support for PEG channels that the franchising authorities 

are currently receiving (including lump sum payments from cable 

operators), (3) allowing local governments to impose a franchise fee 

on the fee that charged to subscribers, (4) striking the provision in 

the bill which required all appeals to be filed with the United 

States Court of Appeals for the District of Columbia Circuit, (5) including a tax savings clause to clarify that franchise reform would 

not limit local governments’ authority to impose taxes, (6) and 

clarifying that the scope of the provision does not extend to video 

service providers, such as AT&T’s Internet protocol video offering, 

nor does it apply to video packages offered by providers. 

Section 301. Short title 

This section would provide that title III of the Communications 

Act of 2006 may be cited as ‘‘Video Competition and Savings for 

Consumers Act of 2006’’. 

SUBTITLE A—UPDATING THE 1934 ACT AND LEVELING THE

REGULATORY PLAYING FIELD

Section 311. Application of title VI to video services and video service providers 

This section replaces and updates certain terminology in title VI 

(47 U.S.C. 521 et seq.). For example, instead of using the term 

‘‘cable operator’’, the new title VI would refer to such entity as a 

‘‘video service provider’’. 

Section 312. Franchise applications; Scope 

This section adds a new section 603 to title VI that would require 

a franchising authority to grant a franchise application within 90 

calendar days after receiving a completed franchise application. 

The terms of such agreement would take effect 15 days after a 

video service provider receives a completed franchise application 

from a franchising authority. If, however, a video service provider 

rejects the franchising authority’s terms within that 15 day window, the terms of the application would not take effect. Also, a 

franchising authority would not be required to complete an application if the video service provider’s franchise had been previously revoked. Section 603(c) would provide an appeals process for applicants who are denied a franchise and who have previously had a 

franchise revoked. 

Upon applying for a franchise, a video service provider would be 

required to use a standardized application form that would be promulgated by the FCC. Upon receiving such franchise application 


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from a video service provider, a franchising authority would be required to do several things. First, it would be required to publish 

a public notice of the application within 15 days of receipt of the 

application - if required to do so by State or local law. Second, a 

franchising authority would be required to complete and return the 

application within 90 calendar days after receiving the application 

from the video service provider. It would be within the purview of 

the franchising authority to decide and fill out the following items 

on the application: (1) the franchise fee percentage, (2) the number 

of PEG channels, (3) any fee percentage that may be assessed to 

support PEG and institutional networks, and (4) the point of contact for the franchising authority. A franchising authority would be 

required to address such items in a manner that is consistent with 

the requirements of this title. For example, since this title would 

authorize a franchising authority to collect up to five percent of the 

video service provider’s gross revenue as a franchise fee, a franchising authority could not select a franchise fee percentage above 

five percent. 

If a franchising authority fails to return the franchise application 

within the 90 day period, the franchise application would be 

deemed granted on the 91st day with the following terms: (1) the 

term of the franchise would be fifteen years, (2) the percentage of 

gross revenue would be equal to the percentage of gross revenue 

paid by the cable operator that has the most subscribers in the 

franchise area (or five percent if there is no cable operator in the 

area), and (3) the number of PEG channels required subject to 

terms set forth in section 611. 

Section 604. No effect on State laws of general applicability. 

This section would clarify that this title would not affect State 

or local laws of general applicability unless such laws are inconsistent with this title. 

Section 605. Direct broadcast satellite service. 

This section would clarify that no State or local government 

could regulate direct broadcast satellite services. However, the section would also clarify that this section could not be interpreted to 

prevent a State from imposing taxes on a provider of direct-to-home 

satellite service and could not be interpreted to preempt State or 

local laws of general applicability. 

Section 313. Standard franchise application form 

This section would amend section 612 (47 U.S.C. 532). Section 

612 would require the FCC to promulgate a standard franchise application form within 30 days of enactment. Section 612 would require that the form include a statement that includes specific compliance commitments to be signed by the video service provider. 

Section 612 would also set forth the specific provisions that would 

be required to be included in the form. 

Section 314. Definitions 

This section would amend section 602 (47 U.S.C. 522) to include 

definitions. The Committee notes that the new definitions of ‘‘video 

service’’ and ‘‘video service provider’’ are added. These new terms 

include all wireline multichannel video distributors that use the 

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mittee also notes that all such distributors are also included under 

the current definitions of ‘‘cable operator,’’ ‘‘cable service,’’ and 

‘‘cable system.’’ Other than specifying the use of a ‘‘closed transmission path,’’ these definitions are technology-neutral, and include 

providers that use Internet protocol transmission or switched video. 

The Committee does not view that any wireline multichannel video 

programming distributor would have the legal authority to consider 

itself outside of the existing franchise framework or the new framework which is set forth in this legislation by bundling video services with Internet access services or some other service. Additionally, the definition of ‘‘video service provider’’ excludes any person 

to the extent that person is providing satellite service, ‘‘including 

if such [satellite] service is bundled with, or offered in conjunction 

with, an Internet access service or other broadband capability.’’ The 

Committee notes that this language is only intended to exclude the 

combination of a satellite video and broadband Internet access 

service delivered to the same subscriber location. It is not intended 

that this language exclude the provision of wireline multichannel 

video service by any person in any franchise area, even if that person is delivering video via satellite elsewhere in that franchise area 

or in any other location. It also does not exclude wireline multichannel video service that is bundled with any other satellite-delivered service. 

Section 315. Family tier study 

This section would commend cable operators, satellite providers 

and other multichannel video programming distributors for engaging in a voluntary effort to offer family program tiers. It would require all multichannel video programming distributors to submit 

annually reports to the FCC on the details of each family tier that 

is offered, including the subscribership level for every tier and 

package offered. The FCC would be required to keep such specific 

information confidential but would be required to aggregate the information and annually submit a report to Congress. 

Section 316. Notice of inquiry on violent programming 

This section would require, within 180 days of enactment, the 

FCC to finish its Notice of Inquiry and issue its findings regarding 

the matter of Violent Television Programming and Its Impact on 

Children, MB Docket No. 04–261. 

SUBTITLE B—STREAMLINING THE PROVISION OF VIDEO SERVICES

Section 331. Franchise requirements and related provisions 

This section would amend section 621 (47 U.S.C. 541) by striking 

section 621(a) and inserting new language that would prevent a 

franchising authority from granting an exclusive franchise or 

granting a franchise for a term shorter than 5 years or longer than 

15 years. The section would also preserve a local authority’s right 

to manage public rights-of-way and easements. It also would protect property owners by continuing to allow State or local governments to require that property owners be justly compensated by 

the video service provider for any damage incurred by the video 

service provider in the installation, construction, operation or removal of facilities. It would require that the video service provider 


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ensure the safety of its facilities and ensure that the cost of installation, construction, or removal of such facilities be borne by the 

video service provider, subscriber or both. 

This section would also amend section 622 (47 U.S.C. 452) by inserting new language in subsections (a) and (b). It would allow a 

franchising authority to impose and collect a franchise fee but 

would not allow a franchising authority to discriminate among 

video service providers in assessing such fees. The franchise fee assessed for any 12 month period could not exceed 5 percent of the 

video service provider’s gross revenue for that period. It would 

allow fees to be paid on a prepaid or deferred basis and would set 

forth the parameters for doing so. And, it would allow for a State 

or local government to enter into a voluntary agreement with a 

video service provider to reduce the franchise fee in exchange for 

the video service provider making available to the government any 

such alternative valuable consideration such as equipment. It 

would set forth that a franchising authority could require a video 

service provider to pay a fee not more than 1 percent of its gross 

revenue for support of PEG access facilities and institutional networks or a proportional amount of such grants and services for 

PEG calculated on a per subscriber basis. In order to calculate the 

per subscriber amount, a video service provider would be required 

to provide the franchising authority with sufficient information 

which would be treated as confidential and proprietary. This section would, however, provide a special rule for Hawaii in that the 

per subscriber calculation would not only apply to PEG access facilities but would also apply to institutional networks. 

In regard to existing institutional networks, a franchising authority would be permitted to require a cable operator or video 

service provider to continue providing its institutional network 

even if the underlying franchise subsequently expires. It would not 

require a video service provider to construct a new institutional 

network. However, it would include a special rule for Hawaii in 

that such requirement would not only apply to situations where institutional networks were currently required under a franchise but 

also in situations where a cable operator had committed to provide 

an institutional network or additional institutional network services. 

This section also makes clear that nothing in this section is intended to impact State or local taxation laws. 

The section also would allow a franchising authority to conduct 

an audit no more than once a year which would consist of a review 

of the video service provider’s business records to ensure that the 

franchising authority is receiving the proper amount of fees. Procedures would be established by the FCC for these audits and a franchising authority would be required to keep such information confidential. A video service provider would be required to reimburse 

a franchising authority for the cost of the audit if a franchising authority identifies an underpayment of over 5 percent of any fee. A 

statute of limitation would be imposed such that a franchising authority would not be able to review any fee that was remitted or 

paid more than 3 years prior. 

Generally accepted accounting principles (GAAP) would be applicable to this section. 


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This section would also provide the definition of ‘‘franchise fee’’

and the definition of ‘‘gross revenue’’. 

Section 332. Renewal; Revocation 

This section would strike existing sections 625 and 626 and insert a new section 625 that would allow a video service provider 

to submit a written renewal application not more than 180 days before the franchise is set to expire. The standard application form 

would be the form that a video service provider would be required 

to use. Section 625 would also include a revocation section that 

would allow a franchising authority to revoke a franchise if it determines, after providing the video service provider with an opportunity for a hearing, that such provider: (1) violated any Federal 

or State law or FCC regulation, relating to the provision of video 

services in the franchise area, (2) made false statements, or material omissions, in anything that it filed with the franchising authority or the FCC relating to the provision of video services in the 

franchise area, (3) violated the rights-of-way management laws of 

the franchise area, or (4) violated the terms of the franchise agreement including any commercial agreement authorized under section 622(b)(3). Prior to revoking any franchise, a franchising authority would be required to first provide written notice to a video 

service provider of the alleged violation and a reasonable opportunity to cure such violation. Any decision made by a franchising 

authority regarding revocation would be considered final for purposes of appeal. 

Section 333. PEG and institutional network obligations 

This section would strike existing section 611 (47 U.S.C. 531) and 

inserts a new section that would require a video service provider 

that obtains a franchise to provide at least the same channel capacity for PEG use that the cable operator or video service provider 

with the greatest number of PEG channels provides in the franchise area on the date that the video service provider’s franchise 

goes into effect. If no cable operator or video service provider exists 

in the area at that time, then the video service provider could be 

required by the franchising authority to provide up to 3 PEG channels. The section would also provide an adjustment opportunity 

such that every 15 years after a franchise is granted, a franchising 

authority could require a video service provider to increase the 

channel capacity by no more than the greater of 1 additional channel or 10 percent of the PEG channel capacity required of the video 

service provider. Subject to section 624(d)(1), this section would 

make clear that a video service provider could not exercise any editorial control over any PEG channels except that it could refuse to 

transmit any PEG or portion of a public access program that contains obscenity. The section would also set forth the video service 

provider’s requirements including to whom it would have to provide 

PEG programming to, its PEG transmission responsibilities, its 

PEG interconnection and cost-sharing responsibilities, and its display of the program information for the PEG channels. It would 

also set forth that a franchising authority would be the entity responsible for the production of any such programming. 


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Section 334. Services, facilities and equipment 

This section would amend section 624 (47 U.S.C. 544) by eliminating certain provisions regarding a franchising authority’s authority to establish requirements regarding services, facilities, and 

equipment. 

Section 335. Shared facilities 

This section would strike existing section 627, redesignate existing sections 628 and 629 as new sections 626 and 627 and add a 

new section 628 regarding shared facilities that would prohibit a 

video service programming provider that has an attributable interest in a video service programming vendor from refusing to provide 

access to video programming only because that video service provider uses a headend for a video service system that is also used 

under a shared ownership or leasing agreement for another video 

service system. This section would be of particular use to rural 

telephone companies. 

Section 336. Consumer protection and customer service 

This section would replace existing section 632 (47 U.S.C. 552) 

and require the FCC to promulgate regulations within 120 days 

after the date of enactment regarding customer service and consumer protection requirements for video service providers. As part 

of its rulemaking, the FCC would be required to consider comments 

from interested parties, which would include national associations 

representing franchising authorities and consumers. The regulations would include penalties to be paid to subscribers. The regulations would take effect 60 days after a final rule is promulgated. 

Such regulations would be enforced by a franchising authority but 

a franchising authority could refer an enforcement matter to a 

State attorney general or a State consumer protection agency. A 

video service provider would be permitted to appeal any enforcement action to the FCC. Subsection (b) would prohibit an early termination fee in excess of 1 month’s subscription fee. 

Section 337. Redlining 

This section would provide redlining rules to be applied to all 

video service providers. It would make it unlawful for a video service provider to deny access to its video service to a group due to 

the group’s income, race, or religion. The redlining complaints 

would be submitted by a resident of the franchising area or submitted by a franchising authority on behalf of residents in its area, 

but the decision to file such a complaint in a court of competent 

jurisdiction shall be subject to the discretion of the State’s attorney 

general. The State attorney general would be required to render a 

decision on whether to file a complaint within 180 days of receiving 

such complaint, either by filing such complaint with a court of competent jurisdiction or notifying the resident or franchising authority that it will not file a complaint with the court. Any adjudication 

of such complaint would be based on the totality of the video service provider’s deployments in its service areas. If a court determines that a redlining violation occurred, it shall ensure that the 

video service provider remedies the violation, and it may assess a 

civil penalty as may be authorized by the State law for a violation 

of the State’s antidiscrimination laws. This section would provide 


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that a video service provider cannot be found in violation of this 

redlining section if service is denied due to technical feasibility, 

commercial feasibility, operational limitations, or physical barriers 

precluding the effective provision of video service. Additionally, the 

section would clarify that this section would not authorize the use 

of quotas, goals, or timetables as a remedy. The section would also 

require each franchising authority to report to the Commission on 

a video service provider’s deployment in its franchise area starting 

3 years after the date of enactment. In turn, the FCC would be required to develop a standardized, electronic data-based, report form 

to be used for this requirement. The video service providers would 

be required to provide a franchising authority with the appropriate 

information so that the report can be completed. Starting within 4 

years after enactment, and every 4 years thereafter, the FCC 

would be required to report such information regarding buildout to 

the Senate Committee on Commerce, Science, and Transportation 

and the House of Representatives Committee on Energy and Commerce. 

Section 338. Application of section 503(b) 

This section would make video service providers subject to the 

same penalties outlined in section 503(b) to which cable television 

operators or cable television system operators are subject. 

Section 339. Application of title VII cable provisions to video services 

This section would amend title VII (47 U.S.C. 601) to include the 

new terms used in this Act. 

Section 340. Children’s Television Act 

This section would amend the Children’s Television Act, 47 

U.S.C. 303a(d), to include video service providers. 

Section 351. Miscellaneous and conforming amendments 

This section would clarify that no provision of this title should 

be construed to prohibit a local or municipal authority that is affiliated with a franchising authority from operating as a multichannel 

video programming distributor in that area. This section would also 

update certain dates within title VI, repeal existing section 617, 

and strike sections 636 and 637. 

This section would also amend title VI (47 U.S.C. 521 et seq.) by 

adding a new section 642 that would govern the offering or provision of IP-enabled video services by non-video service providers. 

This section clarifies and preserves the regulatory-free environment 

that has resulted in the recent explosion of innovative video programming to consumers. Under this new section, the offering or 

provision of an IP-enabled video service is exclusively an interstate 

service subject only to Federal regulations. The only authority preserved for a State, local or tribal government is in new subsection 

(d), which provides a narrow exception to the broad preemption for 

a lawful activity of a law enforcement agency. This limited exception is intended to preserve policing over obscene materials, including child pornography. New subsection (b) makes it clear that the 

scope of the provision does not extend to video service providers, 

such as AT&T’s video service offering that uses Internet protocol 


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offering, nor does it apply to video packages offered by these providers. New subsection (c) prohibits the FCC from enacting any 

rules, regulations, or otherwise regulating the offering or provision 

of an IP-enabled video service. Subsection (e) would clarify that 

there is no effect on tax laws and subsection (g) makes conforming 

edits. 

Section 381. Effective dates; Phase-in 

This section would cause the Act to become effective 180 days 

after the date of enactment, except that the FCC would be expected 

to initiate any rulemaking imposed under this Act as soon as practicable after enactment. Any existing franchise agreements would 

remain in effect for a cable operator until the earlier of either the 

expiration of the current franchise agreement or the date when a 

new franchise agreement replacing the existing agreement goes 

into effect pursuant to new section 381(b)(2). When a franchising 

authority grants a franchise to a video service provider, the video 

service provider would be required to notify the franchising authority when the video service commences in that area and the franchising authority would be required to notify immediately any 

cable operator in that franchise area that it is in receipt of such 

notice. Upon receipt of the notice, a cable operator would be permitted to submit an application for a new franchise under the new 

streamlined provisions authorized by this Act. When the cable operator’s application is granted, the new terms and conditions would 

supersede the cable operator’s existing agreement. Basic rate regulation would still apply in any franchise area until a franchising 

authority receives notice that a video service provider has begun to 

provide video service in the franchise area. 

TITLE IV—VIDEO CONTENT

SUBTITLE A—NATIONAL SATELLITE

Section 401. Availability of certain licensed services in noncontiguous States 

Subsection 401(a) would amend section 335 of the Communications Act by adding a new subsection 335(c). 

New subsection 335(c)(1) would require each satellite carrier to 

provide consumer products in Alaska and Hawaii that are comparable to those offered to subscribers in the contiguous United 

States, to the extent technically feasible, given the carrier’s satellite constellation then in use. 

New subsection 335(c)(2) would require the FCC to require that, 

to the extent technically feasible, certain minimum conditions be 

met before granting a license for a new satellite used for service 

in the contiguous United States. 

New subparagraph 335(c)(2)(A)(i) would require that in the case 

of direct-to-home video services, the satellite for which a new license is to be granted shall be capable of providing services to consumers in the Alaskan cities of Anchorage, Fairbanks and Juneau 

using signal power levels of at least 45 dBW effective isotropic radiated power and to consumers in the Hawaiian islands of Oahu, 

Maui, Kauai, Molokai and Hawaii using signal power levels of at 

least 46 dBW effective isotropic radiated power. 


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New subparagraph 335(c)(2)(A)(ii)(I) would require that in the 

case of direct-to-consumer satellite services, other than direct-tohome video services, to be offered on a satellite for which a new 

license is to be granted, the carrier shall make best efforts to ensure that such services offered on beams covering substantially the 

entire contiguous United States, are offered in a manner that allows access by consumers in Alaska and Hawaii that use a commercially available antenna. Specifically, it would require that the 

carrier make best efforts to ensure that the isotropic radiated 

downlink power and, where applicable, the efficiency of the satellite 

receive antenna (G/T) allows such use of commercially available 

equipment in Alaska and Hawaii. 

New subparagraph 335(c)(2)(A)(ii)(II) would require that in the 

case of direct-to-consumer satellite services, other than direct-tohome video services, to be offered on a satellite for which a new 

license is to be granted, the carrier shall make best efforts to ensure that such services offered on spot beams covering portions of 

the contiguous United States, are offered in a manner that allows 

access by consumers in Alaska and Hawaii that use the same antenna as used in the contiguous United States. Specifically, it 

would require that the carrier make best efforts to ensure that the 

isotropic radiated downlink power and, where applicable, the efficiency of the satellite receive antenna (G/T) allows such use of the 

same antenna in Alaska and Hawaii. 

New subparagraph 335(c)(2)(B) would exempt a carrier from the 

requirements of new subparagraph 335(c)(2)(A) in areas where a 

satellite would have a look angle of less than 8.25 degrees. 

New subparagraph 335(c)(3) defines ‘‘satellite carrier’’ as used in 

subsection 335(c) to mean any entity that uses the facilities of a 

satellite in the Fixed Satellite Service, the Direct Satellite Broadcast Service, the Mobile Satellite Service, or the Digital Audio 

Radio Service licensed by the FCC under Part 25 of its rules, or 

that is licensed or authorized by a foreign government. 

Subsection 401(b) would provide that new subsection 335(c) 

would take effect 36 months after enactment of the bill. 

Subsection 401(c) would clarify that section 401 shall not be construed as requiring any satellite carrier to take any action the FCC 

determines will materially impact the signal quality or availability 

of programming available to such carrier’s subscribers in the continental United States. 

Subsection 401(d)(1) would require the FCC to adopt rules and 

policies as necessary to implement and enforce new subsection 

335(c). 

Subsection 401(d)(2) would require that within 30 days after enactment of the bill that the FCC amend its rules, promulgated 

under section 207 of the 1996 Act, which prohibited restrictions on 

the installation or use of direct-to-home video service satellite 

dishes, to cover Hawaii. The FCC’s rule which applies to dishes 1 

meter or less in diameter or that were in Alaska would be extended 

to cover dishes in Hawaii as well. 

In general, subtitle A is designed to assist consumers in Alaska 

and Hawaii, who have historically had less access to direct broadcast satellite (DBS) and direct-to-home (DTH) satellite services that 

provide multichannel video, audio, and broadband Internet services 

than consumers in the continental United States. In particular, the 


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Committee notes that an increasing number of satellite companies 

are providing multichannel video, audio, and broadband Internet 

services directly to consumers using various types of DTH satellite 

networks. While these services are being offered to consumers in 

the continental United States, comparable DTH satellite services 

are still not widely available to consumers in Alaska and Hawaii. 

Therefore, to promote universal access to such services, a statutory 

requirement that recognizes the technological limitations of satellite carriers while advancing the provision of comparable DBS 

and DTH video, audio, and broadband Internet services in non-contiguous States is appropriate. 

Subtitle A includes language that is intended to place conditions 

on FCC authorizations to launch and operate new satellites, even 

if such satellites replace existing satellites. It is not, however, intended to place conditions on FCC authorizations to modify satellite licenses. Thus, the Committee does not intend this language 

to apply where, for example, a satellite carrier seeks to relocate a 

satellite from one orbital location to another. 

SUBTITLE B—VIDEO AND AUDIO FLAG

Section 451. Short title 

Section 451 would provide the short title for Subtitle B of the 

bill, ‘‘Digital Content Protection Act of 2006.’’

Section 452. Protection of digital broadcast video content 

Subsection 452(a) would amend section 303 of the Communications Act by adding at the end a new subsection 303(z) authorizing 

the FCC to adopt regulations and certifications as necessary to implement the FCC’s report and order on digital broadcast content 

protection, FCC 03-273, that was overturned by the D.C. Circuit. 

The new subsection would limit the FCC’s authority to preventing 

the indiscriminate redistribution of digital television content over 

the Internet or similar distribution platforms and would also authorize the FCC to modify any such regulations and certifications 

for such purpose. 

Subsection 452(b) would ratify the FCC’s broadcast video flag report and order, FCC 03-273, and its Digital Output Protection 

Technology and Recording Method Certifications order, FCC 04- 

193, subject to the limitations in subsection 452(d) of the bill. Such 

ratification would become effective 12 months after enactment of 

the bill. 

Subsection 452(c) would require the FCC, within 30 days after 

enactment of the bill, to initiate a proceeding for the approval of 

broadcast flag protection technologies and recording methods for 

use in the course of distance learning. Such proceeding would be 

conducted in accordance with the expedited procedures established 

for the Commission’s Interim Approval of Authorized Digital Output Protection Technologies and Authorized Recording Methods in 

the Report and Order. This subsection clarifies that such proceeding would have no effect on certifications made pursuant to the 

order FCC 04-193, as ratified by subsection 452(b). 

Subsection 452(d)(1) would clarify that nothing in the bill or section 303(z) as amended shall limit the FCC’s authority to approve 

digital output protection technologies and recording methods that 


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allow the redistribution of digital broadcast content within the 

home or similar environment, or the use of the Internet to transmit 

such content, where such technologies and recording methods adequately protect such content from indiscriminate redistribution. 

This subsection would also clarify that nothing in the bill or section 

303(z) shall be construed to affect rights, remedies, limitations, or 

defenses to copyright infringement, including fair use, under title 

17 of the United States Code. 

Subsection 452(d)(2) would prohibit television broadcast station 

licensees from using the Redistribution Control Descriptor adopted 

by the FCC’s broadcast flag report and order, FCC 03-273, to limit 

the redistribution of news and public affairs programming the primary commercial value of which depends on timeliness. This subsection would require the FCC to allow each broadcaster or broadcasting network to determine whether the primary commercial 

value of a particular news program depends on timeliness and 

would authorize the FCC to review such broadcaster determinations upon receipt of bona fide complaints alleging, or if it otherwise has reason to believe, that particular broadcast digital television content has violated subsection 452(d)(2)’s limitation concerning timeliness and commercial value. 

Subsection 452(d)(3) would require the FCC to require that any 

authorized redistribution control technology and recording method 

publicly available under section 452 of the bill be licensed on reasonable and nondiscriminatory terms and conditions, including 

terms preserving a licensee’s ability to assert any patent rights 

necessary for implementation of the licensed technology. 

Section 453. Protection of digital audio broadcasting content 

Subsection 453 would amend title III of the Communications Act 

by adding at the end of Part I a new section 342 concerning the 

protection of digital audio broadcasting content. 

New subsection 342(a) would authorize the Commission to promulgate regulations governing the distribution of audio content 

with respect to digital radio broadcasts, satellite digital radio transmissions, and digital radios. 

New subsection 342(b) would require that the Commission ensure that a performing rights society or mechanical rights organization be granted a license for free or for a de minimis fee, subject 

to certain conditions. 

Section 454. Digital Audio Review Board 

Subsection 454(a) would require the FCC to establish an advisory 

committee known as the Digital Audio Review Board. 

Subsection 454(b) would require members of the Digital Audio 

Review Board to be appointed by the Chairman of the FCC and to 

include representatives nominated by various industry, public interest and artist organizations, or any other group the FCC determines will be directly affected by the adoption of broadcast flag 

technology regulations. 

Subsection 454(c)(1) would require the Board to submit to the 

FCC, within 1 year after enactment of the bill, proposed regulations that represent a consensus of Board members and is consistent with fair use principles. 


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Subsection 454(c)(2) would allow the FCC to extend, for good 

cause shown, the 1-year period for the Board to propose audio 

broadcast flag regulations by not more than 6 months if the FCC 

determines that the Board has made substantial progress towards 

developing a proposed regulation, Board members are continuing to 

negotiate in good faith, and there is a reasonable expectation that 

the Board will draft and submit a proposed regulation before the 

expiration of the extension period. 

Subsection 454(d)(1) would require the FCC to initiate, within 30 

days after receiving a proposed regulation from the Board, a rulemaking proceeding to implement such regulation. 

Subsection 454(d)(2) would require the FCC in the proceeding required under subsection 454(d)(1) to give substantial deference to 

the Board’s proposed regulation and to issue a final rule not later 

than 6 months after the date on which the proceeding was initiated. 

Subsection 454(d)(3) would authorize the FCC to initiate a rulemaking proceeding, if the Board failed to submit a proposed regulation, in order to determine what, if any, regulations are necessary 

and, if such regulations are necessary, to promulgate such implementing regulations as do not harm or delay the continued roll-out 

of High-Definition Radio. 

Subsection 454(e) would set forth certain administrative provisions concerning the Digital Audio Review Board. 

Subsection 454(e)(1) would require the Board to meet at the request of the Chairman of the FCC. 

Subsection 454(e)(2) would authorize the Chairman of the FCC 

to appoint and terminate an Executive Director and such additional personnel as may be necessary to enable the Board to perform its duties. 

Subsection 454(e)(3) would authorize the Board to procure temporary and intermittent services of consultants and experts. 

Subsection 454(e)(4) would authorize the head of any Federal 

agency to, upon request of the Board, detail any Federal Government employee to the Board without reimbursement, and would 

clarify that such detail shall be without interruption or loss of civil 

service status or privilege. 

Subsection 454(e)(5) would clarify that notwithstanding section 

7(c) of the Federal Advisory Committee Act, the FCC shall provide 

the Board with such administrative and support services as are 

necessary to ensure it can carry out its functions. 

Subsection 454(e)(6) would require the Board to terminate on the 

date on which it submits a proposed regulation to the Commission 

or at the discretion of the FCC Chairman, but no later than 18 

months after its first meeting. 

TITLE V—MUNICIPAL BROADBAND

Section 501. Short title 

This section would establish the short title as the ‘‘Community 

Broadband Act’’. 


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Section 502. State regulation of municipal broadband networks 

This section would amend section 706 of the Telecommunications 

Act of 1996 to establish the framework under which local governments may offer broadband capability or services to the public. 

Subsection (c) would prohibit States from adopting or enforcing 

any statute, regulation, or other legal requirement that would prohibit or have the effect of prohibiting any municipality or public 

provider from offering advanced telecommunications capability or 

any service that utilizes that capability to itself or to the public. 

Subsection (d)(1) would mandate that, to the extent a municipality or public provider regulates competing providers, it must 

apply its ordinances, rules, policies, and fees in a competitively 

neutral and nondiscriminatory manner. Such examples of ordinances, rules, fees or policies include those related to managing the 

public rights-of-way, permitting fees, performance bonding, and reporting. 

Subsection (d)(2) would ensure that nothing in this section exempts a municipality or a public provider from any Federal or 

State telecommunications law or regulation that applies to all providers of advanced telecommunications capability or any service 

that utilizes that capability, including all applicable provisions of 

the Communications Act of 1934, as amended, the Telecommunications Act of 1996, and the Communications Assistance for Law 

Enforcement Act (CALEA). 

Subsection (e) encourages municipalities or public providers to 

partner with a private provider of advanced telecommunications capability and services before erecting a municipally-owned or public 

system. Municipalities or public providers that decide not to partner with a private entity are subject to section 706(f). 

Subsection (f)(1) would call for a municipality or public provider 

to supply notice to the public of its intent to offer advanced telecommunications capability or services and afford private or commercial providers an opportunity to bid on the offering of such capability or services. A municipality shall use their existing notice 

procedures to announce to local citizens, private providers and commercial vendors that it intends to provide advanced telecommunications capability and services. Nothing in this section, however, 

requires a public provider to accept a proposal from the private sector. 

Subsection (f)(2) would require that the notice offered under subsection (f)(1) include services and capabilities to be provided, the 

coverage area, planned service tiers and pricing, and any particular 

geographically or demographically defined services. 

Subsection (f)(3) would require any bids received from private 

providers be available for review by the public along with information about the total cost to taxpayers of such a proposal and to detail any potential alternatives. This subsection would also require 

the solicitation of public comments in response to the proposals to 

be filed within 30 days. 

Subsection (f)(4) would allow a municipality or public provider, 

after reviewing bids from private or commercial providers, to proceed with a public or municipally owned project. The project should 

be approved by the municipality using the standard process routinely employed to approve municipal projects of comparable costs. 


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Subsection (f)(5) would exempt a municipality or public provider 

that is providing or upgrading advanced telecommunications capability or services as of April 20, 2006, or any municipality or public 

provider that has put forth a proposal that as of such date is in 

the request-for-proposals (RFP) process, is being built, or has been 

approved by referendum but is the subject of a lawsuit brought before March 1, 2006. The exemption also applies to a municipality 

that issued a Request for Interest to develop a state of the art 

fiber-to-the-premises broadband network on May 22, 2006. 

Subsection (g) would prohibit Federal funds from being spent to 

reimburse or refund a municipality or public provider in the event 

a public provider offering advanced telecommunications capability 

or service falls into financial trouble or bankruptcy subject to limited exceptions. 

Subsection (h) would ensure that public providers can offer and 

provide advanced communications capability and services during a 

state of emergency. With respect to advanced telecommunications 

capability and services provided to the public, the provisions of the 

title would resume effectiveness when the emergency situation has 

been resolved. To the extent public providers use advanced telecommunications capability or services solely to meet their own internal needs (such as for traffic systems, utility monitoring, or police surveillance), none of the provisions in this title apply. In addition, section (h) would define ‘‘public provider’’. 

TITLE VI—WIRELESS INNOVATION NETWORKS

Section 601. Short title 

This section would establish the ‘‘Wireless Innovation Act of 

2006’’ or the ‘‘WIN Act of 2006’’ as the short title. 

Section 602. Eligible broadcast television spectrum made available 

for wireless use 

Section 602 would create a new section 343. 

New section 343(a) would, 270 after the date of enactment of the 

bill, authorize certified unlicensed devices to operate in eligible 

broadcast television frequencies in a manner that protects licensees 

from harmful interference. The Committee notes that the Commission’s standard for harmful interference is higher than a showing 

of any technical interference. 

New section 343(b) directs the Commission to establish technical 

and device rules to protect licensees from harmful interference. 

Since broadcasters are required to carry certain emergency alerts 

over their authorized television channels, the requirement in the 

WIN Act to protect television service from harmful interference applies to protection of emergency alert services carried over broadcast TV. The Committee notes that a pilot project is being planned 

to deploy prototypes in Alaska to provide a real world demonstration of some of the services that might be possible. The Committee 

would expect the Commission to take note of such demonstration. 

It is the Committee’s expectation that harmful interference will not 

result from such a trial. 

The Committee further notes that the Commission has stated it 

will carefully consider the feasibility of any technical plan for 

avoiding harmful interference from unlicensed devices to existing 


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authorized service to ensure that those services will be adequately 

protected. To protect authorized broadcast television service, the 

Committee urges the Commission to consider a variety of means to 

prevent harmful interference which may require different technical 

and operational solutions for different types of certified unlicensed 

devices. 

The Committee notes that it has been made aware that the Commission has the following measures available to it, though the 

Committee has no position on whether such measures would be 

needed. 

• unlicensed devices would operate only on vacant channels 

and that they comply with appropriate safeguards, such as limits on power and operating frequency. 

• protection requirements would be determined in conjunction with the use of Commission’s software and engineering 

databases; 

• installation of fixed/access devices would be performed by 

a certified professional; 

• unlicensed operations would be required to comply with 

protection ratios for the particular classes of broadcast stations 

consistent with the relevant authorized signal contours; 

• an unlicensed device would be required to identify through 

GPS or other means its geographic location within a specified 

measure of accuracy, to access a database to determine the location of other transmitters in its vicinity and to select the appropriate operating frequency, or alternatively, to use sensing 

receivers to detect the presence of other signals and select the 

appropriate frequency; 

• unlicensed devices would be required to emit periodically 

a unique identifying control signal so that its presence may be 

immediately locatable in the event of harmful interference to 

authorized TV service. 

• personal/portable devices would additionally be required to 

comply with a 100 mW power limit and have a permanently 

attached antenna with a maximum permissible gain limit of 

6dBi and to emit a unique identifying signal periodically 

throughout the day 

New section 343(b)(2) sets forth rules and procedures that the 

Commission must follow in establishing a certification process. The 

bill would require Commission certification of unlicensed devices, 

which may include testing in a laboratory certified by the Commission. 

The bill also would require the Commission, if it determines such 

devices may cause harmful interference, to require manufacturers 

of unlicensed devices operating in vacant TV channels to provide 

the capability to disable the devices remotely or to modify their 

transmission characteristics remotely. The industry has already experimented with remote identification of devices, which would enable remote disabling or modification. Since the Commission proposal requires these devices to be self-identifying, approaches for 

harmful interference mitigation include, among other methods, 

communication with the devices via a base station, the Internet, or 

a beacon. It is the Committee’s intent that the Commission have 

flexibility as to whether to require remote disabling technology. It 

is also the Committee’s expectation that some devices deployed in 


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the band would be less likely to cause interference and would not 

need such remote capabilities. 

The Commission would be required to immediately address any 

complaints from licensees, including through verification in the 

field, of the presence of harmful interference. The bill would also 

require that public safety entities authorized to operate as a primary licensee in the eligible broadcast television frequencies be 

protected from harmful interference. 

New section 343(c) would define ‘‘certified unlicensed device’’, ‘‘eligible broadcast television frequencies’’, and ‘‘licensee’’. 

The Committee seeks to encourage innovative and affordable 

broadband services for all Americans, and particularly rural Americans for whom wireless Internet access is very likely to be the most 

cost-effective broadband service deployed in their market. In addition, the Committee seeks to ensure that other new and inventive 

uses can become a reality such as the use of technologically advanced wireless networks and the wireless office or home, where 

voice, video, music, data and other applications are distributed 

from a single connection. The Committee also seeks to promote 

more efficient use of the radio spectrum for the benefit of the 

American public. 

The Committee believes that the digital television transition or 

standards activities do not adversely affect the Commission’s ability to act on this issue or to put in place rules to protect broadcast 

television operations. As the Commission stated in paragraph 2 of 

its May 2004 NPRM on TV white spaces, ‘‘We recognize that broadcasters are currently undergoing a transition to digital operation, 

during which channel availability is likely to change more frequently. Our approach would appropriately account for these 

changes.’’ In paragraph 15 of the NPRM, the Commission further 

states: ‘‘We believe that with appropriate safeguards it would be 

possible to allow unlicensed operation in the TV bands without 

causing harmful interference to television services, disrupting the 

DTV transition, or adversely affecting the other services that use 

this spectrum.’’ Nonetheless, the Committee notes that it expects 

the FCC to rigorously enforce the requirement that an unlicensed 

device not cause harmful interference to TV signals. 

TITLE VII—DIGITAL TELEVISION

Section 701. Analog and digital television sets and converter boxes; 

Consumer education and requirements to reduce the government cost of the converter box program 

Section 701 of the bill would amend section 330 of the Communications Act by redesignating current sections in order to insert a 

new subsection 330(d) concerning consumer education requirements regarding analog television receivers and the transition to 

digital television that will occur on February 17, 2009. 

New subsection 330(d)(1) would require any analog only television set manufactured in the United States or shipped in interstate commerce for the purpose of retail sale to carry a removable 

label on its screen that displays a consumer alert, as well as a label 

on the outside of retail packaging for such a set that is clear, conspicuous and cannot be removed. 


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New subsection 330(d)(2) would require, within 120 days after 

enactment of the bill, that any retailer that sells analog only television sets via direct mail, catalog or electronic means include in 

all advertisements or descriptions of such television set the product 

and digital television transition information set forth in new subsection 330(d)(3). 

New paragraph 330(d)(3)(A) would provide the specific language 

to be included on consumer alert labels that new subsection 330(d) 

would require to be attached to television set screens, retail packaging or included in all advertisements or descriptions for analog 

only sets sold via direct mail, catalog or electronic means. 

New paragraph 330(d)(3)(B) would require that all television sets 

with a picture screen 13 inches in diameter (measured diagonally) 

or greater shall be equipped with blocking technology like the Vchip to enable viewers to block display of all programs with a common rating. 

New subsection 330(d)(4) would require the FCC to engage in a 

public outreach program within 1 month after enactment of the bill 

to educate consumers about the digital television transition. This 

subsection would also direct the FCC to maintain and publicize a 

consumer information website and telephone hotline. 

New subsection 330(d)(5) would require each commercial television broadcast licensee or permittee to broadcast daily, from December 1, 2007, through March 1, 2008, and again from November 

17, 2008, through February 17, 2009, two 30-second public service 

announcements (PSAs) at such times as the Commission may require in order to assure the widest possible audience. Such PSAs 

would be required to be provided in English and Spanish and other 

languages as appropriate, to notify the public of the digital television transition and converter box program, and to contain the address of the FCC consumer information website and toll free number required by subsection 330(d)(4). The Committee intends that 

at least one Public Service Announcement must be during 

primetime and must be aired during the daytime hours. 

New subsection 330(d)(6) would require the FCC, in addition to 

any other civil or criminal penalty required by law, to issue civil 

forfeitures for violations of the requirements of new subsection 

330(d) in an amount equal to not more than three times the 

amount of penalties under section 503(a)(2)(A) of the Communications Act. 

New subsection 330(d)(7) would sunset after December 1, 2009 

the requirements of new subsection 330(d), as they apply to manufacturers and retailers, excluding the consumer labeling provisions 

contained therein. 

Subsection 701(b) would require the FCC to establish an advisory 

committee to help consumers with the digital television transition 

and would impose certain requirements and guidelines for such advisory committee. 

Subsection 701(b)(1) would require within 60 days of enactment 

that the FCC establish an advisory committee, to be known as the 

DTV Working Group, to consult with State and local governments 

and the NTIA to promote consumer outreach and provide logistical 

assistance to consumers with special needs, including assistance relating to the converter box subsidy program. The working group 

would be required to ensure that the converter box subsidy proVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00058 Fmt 6659 Sfmt 6602 E:\HR\OC\SR355.XXX SR355

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gram includes a means to reach and assist elderly, disabled, lowincome, and non-English speaking households with delivery and installation of converter boxes. 

Subsection 701(b)(2) would require the FCC to appoint to the 

DTV Working Group representatives of groups involved with or affected by the transition to digital television and clarifies that 

Group members shall serve without compensation and shall not be 

considered Federal employees by reason of their service on the advisory committee. 

Subsection 701(b)(3) would establish that the purpose of the DTV 

Working Group is to advise the FCC in creating and implementing 

a national plan to inform consumers about the digital television 

transition; to ensure that the FCC’s national plan at a minimum 

includes recommended procedures for broadcaster PSAs, toll-free 

information hotlines, and retail displays or notices; and to ensure 

the FCC’s national plan includes a requirement that all broadcasters in a designated market area submit a joint plan to the FCC 

addressing the public outreach and PSA requirements required by 

title VII of the bill. In addition, subparagraph 701(b)(3)(C) would 

require that the television broadcaster joint plan required for each 

designated market area (i) include a description of how each television broadcaster will fulfill the PSA requirements under new subsection 330(d)(7), include (ii) market research by each commercial 

television broadcaster regarding projected consumer demand for 

converter boxes in their designated market area, and (iii) be shared 

with retailers inside their designated market areas so that such retailers may stock the appropriate amount of converter boxes to 

meet consumer needs. 

Subparagraph 701(b)(3)(C) would require the working group to 

work with the FCC and NITA to ensure that the converter box subsidy program adequately serves those consumers with the greatest 

need, including analog-only consumers. 

Subparagraphs 701(b)(3)(D) and (E) would require the DTV 

Working Group to provide the FCC with 2 DTV Progress Reports 

that reflect private sector efforts to inform consumers about the 

digital transition and to minimize potential consumer disruption. 

Subparagraph 701(b)(3)(F) would require that the DTV Working 

Group recommend to the FCC procedures for contacting persons 

with disabilities, which procedures shall include use of telecommunications relay services for persons with hearing or speech 

disabilities, distribution of printed materials in braille, or other alternative formats for those with vision or learning disabilities. This 

subparagraph would require the FCC procedures to include other 

alternative formats, including websites accessible to those with disabilities. 

Subsection 701(c)(1) would amend Part I of title III of the Communications Act by inserting a new section 303A that would make 

it unlawful for a manufacturer or importer to import into the 

United States or ship in interstate commerce for sale or resale to 

the public, a television broadcast receiver (as defined in section 

15.3(w) of the FCC’s rules) that is not equipped with a tuner capable of receiving and decoding digital signals. 

Subsection 701(c)(2) would forbid the FCC from revising the digital television reception capability implementation schedule under 

section 15.117(i) of its regulations, except to conform that section 


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to the requirements of new section 303A of the Communications 

Act. 

Subsection 701(c)(3) would require, within 1 year after the date 

of enactment, that the Assistant Secretary of Commerce for Communications and Information, in consultation with the Secretary of 

Energy, to set the energy standards for digital-to-analog converter 

boxes, taking into consideration of the cost of the converter box. 

The standards would be required to meet the criteria specified in 

section 325(o) of the Energy Policy and Conservation Act, 42 U.S.C. 

6295(o). Such standards would solely govern converter boxes manufactured or imported for use in the United States on and after the 

effective date established by the Assistant Secretary, but such limitation would not apply after May 17, 2010. 

Subparagraph 701(c)(3)(C) would amend section 3005(d) of the 

Digital Television Transition and Public Safety Act of 2005, 47 

U.S.C. 309 note, by making a conforming change. 

Subsection 701(d)(1) would amend section 614(b)(4) of the Communications Act by redesignating certain provisions and inserting 

new provisions concerning the carriage of digital broadcast television signals by cable operators and to allow cable operators to 

down-convert such broadcast signals if the licensee of the broadcast 

television station relies on section 614 or 615 for carriage of its signal and program-related material on that cable operator’s system 

in a relevant market. This section is not intended to alter the current rules requiring carriage of only the primary signal of the 

broadcaster for each must-carry station. The use of the phrases 

‘‘digital video signal requiring carriage’’ and ‘‘digital video signal’’

in the language added by section 701(d) of the bill is intended to 

refer to primary video, since that is the only video stream ‘‘requiring’’ carriage under section 614 of the Cable Act, and does not affect the digital must carry obligations of cable operators. 

New subparagraph 614(b)(4)(B) would require a cable operator to 

carry without material degradation any digital video signal and 

program-related material transmitted by a television station transmitting broadcast programming exclusively in the digital television 

service in a local market where the cable operator’s cable system 

is located. 

New subparagraph 614(b)(4)(C) would allow a cable operator to 

offer a broadcaster’s digital video signal and program-related materials in any analog or digital format or formats, whether or not 

doing so requires conversion, so long as (i) the cable operator offers 

the signal and material in the converted analog or digital format 

without material degradation and (ii) also offers such signal and 

material in the manner required by paragraph 614(b)(4), as amended by the bill. 

New subparagraph 614(b)(4)(D)(i) would require that, notwithstanding the requirement in new subparagraph 614(b)(4)(B) to 

carry the digital signal and material in the format transmitted by 

the local television station subject to the prohibition on material 

degradation, until February 17, 2014 a cable operator shall offer 

the digital signal and material in the format or formats necessary 

to be viewable on analog and digital televisions and would permit 

such cable operator to convert the digital signal and material to 

standard-definition digital format. 


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New subparagraph 614(b)(4)(D)(ii) would require a cable operator 

with a cable system with an activated capacity of 550 megahertz 

or less to offer the digital signal and material of the local television 

station converted to an analog format but would authorize such 

system operator to offer the digital video signal and any programrelated material in any digital format or formats. 

New subparagraph 614(b)(4)(E) would authorize a cable operator 

to perform any conversion permitted or required under new paragraph 614(b)(4) at any location, from the cable head-end to the customer premises, inclusive. 

New subparagraph 614(b)(4)(F) would clarify that any conversion 

permitted or required by paragraph 614(b)(4), as amended, would 

not by itself be treated as material degradation. 

New subparagraph 614(b)(4)(G) would clarify that the obligation 

to carry program-related material under paragraph 614(b)(4) as 

amended would be effective only to the extent technically feasible. 

New subparagraph 614(b)(4)(H) would clarify that for purposes of 

paragraph 614(b)(4), as amended, a signal shall be in standard definition digital format if such signal meets the criteria for such format specified in section 73.682 of the FCC’s rules or a successor 

regulation. 

Subsection 701(d)(2) would amend clause (iii) of section 

623(b)(7)(A) of the Communications Act to clarify that the basic tier 

requirements in that provision would apply to any analog signal 

and any digital video signal of any television broadcast station that 

is provided by the cable operator to any subscriber, instead of the 

current language which simply mentions ‘‘any signal.’’ Subparagraph 701(d)(2)(B) would require that with respect to 

any television broadcast station, subsection 701(d) and the amendments made by paragraph 701(d)(2) shall take effect on the date 

the broadcaster ceases transmissions in the analog television service. 

Subparagraph 701(d)(3) would amend section 614 of the Communications Act by redesignating an existing subsection and inserting 

a new subsection 614(h) that would clarify that for purposes of sections 614 and 615, transmission of a digital signal over a cable system in a compressed bitstream shall not be considered material 

degradation as long as such compression does not materially affect 

the picture quality the consumer receives. 

Subsection 701(e) would amend section 338 of the Communications Act by adding at the end a new subsection 338(l) in order to 

impose requirements concerning the carriage of digital broadcast 

television primary video by satellite carriers and to allow satellite 

carriers to down-convert such broadcast primary video if the licensee of the broadcast television station relies on section 338 for 

carriage of its signal and program-related material on that satellite 

carrier’s system in a relevant market in the United States. 

New subparagraph 338(l)(1) would require that, with respect to 

any television broadcast station transmitting broadcast programming exclusively in the digital television service in a local market 

in the United States, a satellite carrier carrying the digital signal 

of any other television broadcast station in that local market shall 

carry the station’s video signal required to be carried and programrelated material without material degradation, if the licensee for 

that station relies on section 338 to obtain carriage of the station’s 


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video signal and program-related material on that satellite carrier’s 

system in that market. 

New subparagraph 338(l)(2) would require that a satellite carrier 

shall offer the video signal and program-related material of a local 

television station broadcasting exclusively in the digital television 

service in such station’s format if the satellite carrier carries the 

video signal of any other local station in the same digital format 

and thus triggers the carry-one, carry-all provisions of section 338. 

New subparagraph 338(l)(3) would allow a satellite carrier to 

offer the digital video signal and program-related material of a 

local television broadcast station in any analog or digital format or 

formats, whether or not doing so requires conversion, so long as (i) 

the satellite carrier offers the signal and material in the converted 

analog or digital format without material degradation and (ii) also 

offers such signal and material in the manner required by subsection 338(l), as amended by the bill. 

New subparagraph 338(l)(4) would require that, notwithstanding 

the requirement in new paragraph 338(l)(1) or (2), to carry the digital signal and material in the format transmitted by the local television station subject to the prohibition on material degradation, 

until February 17, 2014, a satellite carrier shall offer the digital 

signal and material in the format or formats necessary to be 

viewable on analog and digital televisions and would permit the 

satellite carrier to convert the digital signal and material to standard-definition digital format in lieu of offering it in the digital format transmitted by the local television station. 

New subparagraph 338(l)(5) would authorize a satellite carrier to 

perform any conversion permitted or required under new subsection 338(l) at any location, from the local receive facility to the 

customer premises, inclusive. 

New subparagraph 338(l)(6) would clarify that any conversion 

permitted or required by subsection 338(l), as amended, would not 

by itself be treated as material degradation. 

New subparagraph 338(l)(7) would clarify that the obligation to 

carry program-related material under section 338, as amended, 

would be effective only to the extent technically feasible. 

New subparagraph 338(l)(8) would clarify that for purposes of 

subsection 338(l), as amended, a signal shall be in standard definition digital format if such signal meets the criteria for such format 

specified in section 73.682 of the FCC’s rules or a successor regulation. 

New subparagraph 338(l)(9) would clarify that for purposes of 

section 338, transmission of a digital signal by a satellite carrier 

in a compressed bitstream shall not be considered material degradation as long as such compression does not materially affect the 

picture quality the consumer receives. 

Section 702. Digital stream requirement for the blind 

Section 702 would ratify the FCC’s video description rules for the 

blind that were overturned by the United States Court of Appeals 

for the District of Columbia Circuit and would require the FCC, 

within 45 days after the date of enactment, to republish such rules 

and authorize it to amend, repeal or otherwise modify such rules. 

This section would also require the FCC to initiate a proceeding 

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sible information requirements in its video description rules and to 

complete that proceeding within 1 year. The section would also require the FCC to extend the video description rules to digital 

broadcast programming and video programming as defined in section 602(23) of the Communications Act, as appropriate in the public interest. 

Although this section states that the Commission may amend, 

repeal or otherwise modify such rules, it is not intended that these 

rules be repealed in their entirety. Rather, certain rules may need 

to be repealed to the extent that they pertain to the transmission 

of analog television programming, after the transition to digital television programming is completed in 2009. For example, reliance 

on use of the secondary audio program channel or analog-based 

video descriptions may be replaced with rules that more appropriately apply to the digital television environment. 

Section 703. Status of international coordination 

Section 703 would require the FCC to submit a report every 6 

months to Congress on the status of international coordination 

with Canada and Mexico of the DTV table of allotments until such 

coordination is complete. 

Section 704. Certain border stations 

Section 704 would amend section 309(j)(14) of the Communications Act to provide an additional 2 years for Spanish-language stations that serve communities within 50 miles of the United States 

border with Mexico to complete the transition to digital television, 

so long as such extension does not prevent the auction of recovered 

analog spectrum, prevent the use of recovered spectrum by public 

safety services, or interfere with any channels reserved for public 

safety use as designated in FCC ET Docket No. 97–157. 

TITLE VIII—PROTECTING CHILDREN

Section 801. Video transmission of child pornography 

This section would amend section 621 of the Communications Act 

to require that all video service providers comply with the Commission’s regulations relative to child pornography and would direct 

the Commission to promulgate regulations preventing video service 

providers from offering child pornography. 

Section 802. Additional child pornography amendments 

Subsection (a) would increase the fines under 42 U.S.C. 

13032(b)(4) for failure to report a violation of the enumerated sections of title 18 of the United States Code involving child pornography. 

Subsection (b) would require marks or notices to be included in 

commercial websites that display sexually explicit material and 

that the first page of a website not contain sexually explicit material. The subsection would provide exceptions for websites that restrict access to a specific set of individuals. The FTC, in consultation with the Attorney General, would be charged with establishing 

clearly identifiable marks or notices to be used by websites. The 

subsection would also make clear that the requirements apply to 

the website and not to services that allow consumers to access 


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websites. The terms ‘‘website’’, ‘‘sexually explicit material’’, ‘‘Internet’’ and ‘‘Internet Access Service’’ would all be defined. A violation 

of this subsection would be punishable by a fine, imprisonment of 

not more than 5 years, or both. 

Subsection (c) would amend Chapter 110 of title 18 by adding a 

new section. 

New section 2252C(a) would make it unlawful to embed anything 

into the source code of a website to deceive another person into 

viewing obscene material or deceive a minor into viewing material 

that is harmful to minors. 

New section 2252C(b) would define ‘‘material harmful to minors’’, 

‘‘sex’’ and ‘‘source code’’. 

New section 2252(c) would set penalties of fine, imprisonment of 

up to 2 years, or both, for obscene material; and a fine, imprisonment of up to 4 years, or both, for material harmful to minors. 

Subsection (d) would amend section 2255(a) of title 18 to ensure 

that any minor who has been a victim may bring suit even after 

they are a minor and that the personal injury could also extend 

pass when the victim was a minor. The section also increases the 

amount of the deemed damages. 

Section 803. Prevention of interactivity with commercial matter during children’s programming 

This section would require each cable operator, video service provider, multichannel video programming distributor, satellite carrier, or any other provider of cable or over-the-air children’s programming to prevent any interactivity with such programming for 

the purpose of selling or promoting a product, service, or brand. 

The Committee would expect that children’s programming be defined as the FCC defines it. 

Section 804. FCC study of bus-casting 

This section would require the Commission to conduct a study 

and report to Congress within six months on commercial proposals 

to broadcast radio and television material to public education students who ride school buses. 

TITLE IX—INTERNET CONSUMER BILL OF RIGHTS ACT

Section 901. Short title 

This section establishes the short title as the ‘‘Internet Consumer 

Bill of Rights Act of 2006’’. 

Section 902. Findings 

This section sets forth Congressional findings. Among the key 

findings are the Commission should preserve an approach that favors the free market with respect to the Internet and an approach 

that encourages the free-flow of ideas and information. 

Section 903. Consumer Internet bill of rights 

Subsection (a) would establish that every Internet service provider shall allow each subscriber to: 

• Access and post any lawful content of that subscriber’s 

choosing. 

• Access any web page of that subscriber’s choosing. 


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• Access and run any voice application, software, or service 

of that subscriber’s choosing. 

• Access and run any video application, software, or service 

of that subscriber’s choosing. 

• Access and run any email application, software, or service 

of that subscriber’s choosing. 

• Access and run any search engine of that subscriber’s 

choosing. 

• Access and run any other application, software, or service 

of that subscriber’s choosing. 

• Connect any legal device of that subscriber’s choosing to 

the Internet access equipment of that subscriber, if such device 

does not harm the network of the Internet service provider. 

• Receive clear and conspicuous information, in plain language, about the estimated speeds, capabilities, limitations, 

and pricing of any Internet service offered to the public. 

Subsection (b) would state that subscribers would enjoy the 

rights enumerated under subsection (a) without any interference 

from Federal, State or local government for lawful activities, without interference from the Internet service provider, subject only to 

the limitations of the service that the subscriber purchased as may 

be clearly enumerated by the Internet service provider. As a result, 

subject to the limits of the service purchased, an Internet service 

provider cannot interfere with a subscriber’s access to any legal 

Internet activity or slow down the subscriber’s Internet service. 

Section 904. Application of the First Amendment 

This section would clarify that the First Amendment applies to 

the Internet and ensures that no Federal, State, local government 

or Internet service provider may alter a user’s Internet experience 

on the basis of religious views, political views, or any other views 

expressed unless specifically authorized by law. 

Section 905. Stand-Alone Internet service shall be offered to the 

public 

This section would require that Internet service providers offer 

any Internet service that it offers as part of a bundle on an individual basis as well. This section does not require that such service 

be offered at the same price. The intent of the section is to help 

ensure that a robust Internet service marketplace develops. The 

only limitation on this section would be technical feasibility. 

Section 905 does not require an Internet service provider to make 

the transmission or transport component of its Internet service separately available to a subscriber or to any other person or entity. 

Nothing in section 905 prohibits an Internet service provider from 

offering Internet service combined with any other service offering, 

or requires such provider to offer stand-alone Internet service at 

the same price as it offers such service in combination with other 

services. 

Section 906. Network security, worms, viruses, denial of service, parental controls, and blocking child pornography 

This section preserves the ability of an Internet service provider 

to perform network management functions that are related to the 


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integrity and security of the network, to offer parental controls, 

and to tailor services pursuant to a subscriber’s request. 

Section 907. Enforcement 

Subsection (a) would require the Commission to establish an adjudicatory process under which subscribers may bring complaints 

for the violation of section 903 against Internet service providers. 

Subsection (b) establishes that penalties for violations may be up to $500,000.00, per violation. 

Subsection (c) would establish that equitable relief is also available to the Commission in enforcing this title. 

Section 908. Commission prohibited from issuing regulations 

This section would prohibit the Commission from promulgating 

any regulations not tied to establishing the adjudicatory process 

under this title. The Commission would also be prohibited from enlarging or modifying the obligations imposed on Internet service 

providers under this title. 

Section 909. FCC review 

Subsection (a) would direct the Commission to study the Internet 

market and report annually to Congress on a number of factors designed to ensure that Internet service providers are not acting in 

a manner that would limit the consumer’s Internet experience or 

in a way that would lessen competition in any industry segment 

tied to the Internet. 

Subsection (b) would direct the Commission to make appropriate 

recommendations to Congress as part of its report. 

Section 910. Exceptions 

Paragraph 910(1) would exclude advertising by an Internet service provider as part of the Internet service from the requirements 

of this title. 

Paragraph 901(2) would exclude services in which Internet service is a secondary and minor component from the requirements of 

this title. For example, a video service provider could offer an option, in conjunction with a video service provided under title VI, 

that would allow consumers to purchase products that they see on 

video programs, with information needed to execute the transaction 

transmitted over the Internet. If such transmission is limited to 

communications needed to execute that transaction, that service 

would not satisfy the definition of ‘‘Internet service’’ and would not 

be subject to the requirements of this title. The Committee also 

notes that simply bundling an Internet service with a video service 

would not be interpreted as excluding the Internet service from the 

obligations of this title. 

Section 911. FCC to revisit broadband speeds 

SEction 911 would require the Commission to review its 

broadband speeds for definitional purposes on a biannual basis. In 

doing so, the Commission shall ensure that it does not define 

‘‘broadband’’ in a way that disfavors a particular technology. As as 

result, the Commission may need to, at some point, define 

‘‘broadband’’ differently for various service, i.e., wireless versus 

wireline services. 


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Section 912. Protection of emergency communications 

This section would clarify the duty of Internet providers to ensure the necessary priority for the timely and effective delivery of 

911 and E–911 emergency communications. 

Section 913. Definitions 

This section would define the terms ‘‘Internet service’’ and ‘‘subscriber’’. The definition of subscriber is intended to focus on those 

who use the Internet for their individual use and does not include 

the Internet service that a company like Google or Yahoo might 

purchase in connection with their company’s offerings to other 

Internet users. 

TITLE X—MISCELLANEOUS

Section 1001. Commissioner participation in forums and meetings 

Section 1001 would amend 47 U.S.C. § 155 to allow more flexibility for FCC Commissioners to meet with one another. 

Section 1002. Office of Indian Affairs 

Section 1002 would establish an Office of Indian Affairs within 

the FCC and provide direction concerning the relationship of such 

office to Tribal Governments. This section would also set forth the 

purposes of such office. 

Section 1003. Office of Consumer Advocate 

Section 1003 would establish an Office of Consumer Advocate 

within the FCC, to be headed by a Director appointed by the FCC. 

This section provides that such office shall be independent of other 

bureaus and offices of the FCC but that its staff shall be bound by 

the same code of conduct, personnel practices and other relevant 

practices and procedures as the FCC. This section would also set 

forth the procedures for appointing and removing the Director of 

such office, as well as various characteristics of such position such 

as term, qualifications, duties, responsibilities and authority. 

Subsection 1003(g) would require that the Director of the Office 

of Consumer Advocate, in exercising discretion as to whether the 

Office will represent residential consumers in a particular matter, 

shall consider the importance and extent of the interests and 

whether those interests would be adequately represented. In cases 

where there may be a conflict among or between classes of residential consumers in a particular matter, the Director would be authorized to choose to represent one of the interests or none of the 

interests. 

Subsection 1003(h) would establish an Advisory Committee to assist the Director of the Office of Consumer Advocate in carrying out 

the Director’s duties, as appropriate and reasonable. This subsection would set forth requirements concerning such Advisory 

Committee’s composition, and the qualification of its members. 

Subsection 1003(i) would provide that the FCC budget would include an account separate from other FCC bureaus and offices, 

which would be used exclusively by the Office in the performance 

of its duties. It would also require that the budget for the Office 

be separately identified in the FCC’s annual budget request and 


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that $200,000 be authorized to be made available to the Office for 

each fiscal year. 

Subsection 1003(j) would clarify that the creation of the Office 

shall in no way derogate the standing of any State consumer advocate or any national association of State consumer advocates to appear before the Commission. 

Section 1004. Data on local competition in different product markets 

Subsection 1004(a) of the bill would require that not later than 

180 days after enactment, and every year thereafter, the FCC shall 

conduct an inquiry regarding the extent to which providers of communications service have deployed their own local transmission facilities. 

Subsection 1004(b) would require all providers of communications service to submit annual reports to the FCC describing the 

extent to which they have deployed their own local transmission facilities, and that in defining product markets for such reports the 

FCC use the methodology set forth in the U.S. Department of Justice and Federal Trade Commission Horizontal Merger Guidelines, 

and distinguishing at a minimum between the products demanded 

by residential customers, small and medium-sized business customers and large business customers. 

Subsection 1004(c) would require that not later than one year 

after enactment and each year thereafter, the FCC report to the 

Congress on the extent to which providers of telecommunications 

service, broadband service (at least 200 kilobits per second in at 

least 1 direction) and IP-enabled voice service have deployed their 

own local transmission facilities, with such report analyzing separately the extent of actual facilities-based competition in each wire 

center in the product markets defined by the FCC for purposes of 

subsection 1004(b). 

Subsection 1004(d) would define the following terms: (1) ‘‘broadband service’’, (2) ‘‘communications service’’, (3) ‘‘IP-enabled 

voice service’’, and (4) ‘‘local transmission facilities’’. 

Section 1005. Improved enforcement options 

Section 1005 of the bill would amend section 503(b)(2)(B) of the 

Communications Act by increasing ten-fold the penalties that may 

be assessed against common carriers. This section would also 

amend section 503(b)(6) to impose a statute of limitations of 3 

years for violations. 

Subsection 1005(c) would amend section 503(b) of the Communications Act to limit the circumstances under which an independent network affiliate may be fined for violation of title 18, 

United States Code. 

Section 1006. Mobile services terms and conditions 

Subsection 1006(a) of the bill would expand subparagraph (A) of 

section 332(c)(3) of the Communications Act to preempt State laws 

from regulating or adjudicating terms or conditions of commercial 

mobile service or private mobile service except for State laws of 

general applicability. 

Subsection 1006(b) of the bill would require the FCC to adopt 

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ice and consumer protection requirements for providers of commercial mobile service or private mobile service, as such terms are defined in section 332 of the Communications Act. 

Subsection 1006(c) would require that the amendments required 

by subsection 1006(a) of the bill take effect 180 days after the FCC 

adopts the final FCC rule required by subsection 1006(b). 

Subsection 1006(d) would require the FCC to initiate and conclude not later than 180 days after enactment a proceeding to prevent a telecommunications carrier from listing any charge or fee on 

a subscriber’s billing statement as a separate charge or fee unless 

it is a charge or fee (i) for telecommunications service or other services provided to a subscriber, (ii) for nonpayment, early termination 

of service, or other lawful penalty, (iii) for Federal, State, or local 

sales or excise taxes, or (iv) that is expressly authorized by law or 

regulation to appear on a billing statement as a separately stated 

charge or fee. 

Section 1007. Severability 

Section 1007 would provide that any provision in the Act held to 

be unconstitutional shall not affect remaining provisions not addressed by such holding. 

Section 1008. Clarification of certain jurisdictional issues 

Section 1008 would codify the FCC’s decisions in the vonage and 

pulver.com proceedings, WC Dockets No. 03–211 and 03–45, and 

would prohibit the Commission from taking action to undermine, 

alter or amend such decisions except to apply such decisions to 

similar services sharing similar basic characteristics. This section 

would also dismiss any pending challenges to the vonage and 

pulver.com decisions and would clarify that nothing in the section 

shall be construed to supersede or preempt the consumer protection 

laws of any State, including any privacy or anti-child pornography 

law of a State, except to the extent that such laws regulate the 

rates for entry or exit by a service provider. 

Section 1009. FCC to issue a further notice of proposed rulemaking 

before changing the broadcast media ownership rules 

Section 1009 of the bill would require that before the FCC 

changes section 73.3555 of its rules, as those regulations were in 

effect on June 1, 2003, the FCC must issue a further Notice of Proposed Rulemaking with respect to any such changes. This section 

would declare null and void the cross-media limits rule adopted by 

the FCC on June 2, 2003, pursuant to its proceeding on broadcast 

media ownership rules, FCC 03-127, and would reinstate with effect from June 2, 2003, the FCC’s rule 73.3555, as those rules were 

in effect. 

Section 1010. Diversity in media ownership 

Section 1010 of the bill would prohibit the FCC from promulgating rules regarding media ownership without first completing 

its section 257 proceeding initiated on June 15, 2004, concerning localism and diversity in media ownership. 


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Section 1011. Broadband reporting requirements 

Section 1011 of the bill would require that, within 180 days of 

enactment, the FCC amend its rules requiring collection of data 

twice a year through its Form 477, which provides a snapshot of 

broadband deployment and local phone competition throughout the 

United States. This section would require that broadband service 

providers report information, by zip code where broadband service 

is provided, including the percentage of households offered service 

and the percentage of such households subscribing, as well as the 

average price per megabyte of download and upload speed, the 

broadband service’s actual average throughput, and contention 

ratio of the number of users sharing the same line. The FCC 

would, however, be required to exempt a broadband service provider from such reporting requirements if a provider’s compliance 

is cost prohibitive, as defined and determined by the FCC. This section would further require that, with respect to areas unserved by 

any broadband service provider, the FCC use Census Bureau data 

to provide an annual report to Congress with information on such 

area’s population, population density and average per capita income. 

Section 1012. Application of one-year restrictions to certain positions 

Section 1012 of the bill would deem certain positions at the FCC 

to be subject to the limitations on employment under 18 U.S.C. 

207(c)(2)(A)(ii), regardless of basic pay. This would prohibit FCC 

bureau chiefs and persons in similar positions at the FCC from lobbying the FCC until one year after leaving the FCC. 

Section 1013. Internet Tax Freedom Act Amendment 

Section 1013 of the bill would amend section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 151 note) to make that Act permanent. This would permanently extend that Act’s provisions barring 

State governments from taxing Internet access services, which provisions are currently scheduled to expire on November 1, 2007. 

Section 1014. Status of E–911 Implementation and Coordination 

Office 

Section 1014 of the bill would require the NTIA and National 

Highway Traffic Safety Administration to submit with 90 days of 

enactment, a report to Congress on the progress of the E–911 Implementation and Coordination Office and plans of that Office to 

meet the requirements established in P.L. 108–494. 

Section 1015. Federal Communications Commission telemedicine report 

Section 1015 would require the Commission to submit within 180 

days of enactment a report to Congress concerning telemedicine applications with regard to their use of broadband connections, including price information for such connections. 

Section 1016. Federal information and communications technology 

research 

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munications services to all Americans. It also establishes a Federal 

Advanced Information and Communications Technology Research 

Board within the NSF and authorizes research grants. 

Subsection 1016(b) would direct the Commission and NTIA to develop a plan to increase the sharing of spectrum between Federal 

and non-Federal Government users and to establish a pilot program for that purpose. It also would direct the Commission and 

NTIA to identify 10 megahertz of spectrum for the pilot program 

and requires a report to Congress on the program within 2 years. 

Section 1017. Forbearance 

Section 1017 of the bill would amend section 10 of the Communications Act, which requires the FCC to forbear from regulating 

telecommunications carriers or telecommunications services, or 

classes thereof, under certain circumstances. This section would 

change the current provision in section 10 by which forbearance 

would be deemed to apply if the FCC does not deny a forbearance 

petition within the statutory time limit and insert a provision instead that requires a petition to be voted on by the FCC within 

that time period. This section would also clarify that the FCC may 

grant or deny a petition, but must do so by majority vote. 

Section 1018. Deadline for certain Commission proceedings 

Section 1018 would require the FCC to complete, within 270 days 

of enactment its proceedings on special access rates in FCC Dockets No. 05–25 and 01–321. 

TITLE XI—LOCAL COMMUNITY RADIO ACT

Section 1101. Short title 

Section 1101 would provide the short title for title XI of the bill, 

the ‘‘Local Community Radio Act of 2006.’’

Section 1102. Repeal of prior law 

Section 1102 would repeal language in the 2000 Commerce, 

State, and Justice Appropriations bill that required the FCC to 

delay the licensing of LPFM stations on third adjacent channels to 

full power FM stations. See section 632 of the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 2001 (Public Law 106–553; 114 Stat. 16 2762A–

111). 

Section 1103. Minimum distance separation requirements 

Section 1103 would direct the FCC to modify its rules to eliminate third adjacent minimum distance separation requirements between LPFM stations and full power FM stations, FM translator 

stations, and FM booster stations. 

Section 1104. Protection of radio reading services 

Section 1104 would provide interference protection to ‘‘radio 

reading service’’ (RRS) stations that provide reading services over 

the radio frequencies to assist the blind. These stations broadcast 

using a sub-carrier frequency, which is more susceptible to LPFM 

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ating on a third adjacent channel to a RRS. This section would direct the FCC to make this rule permanent. 

Section 1105. Ensuring availability of spectrum for LPFM stations 

Section 1105 would require the FCC when licensing FM translator stations to ensure that licenses are available to both FM 

translator stations and low-power FM stations, according to the 

needs of the local community. 

Section 1106. Federal Communications Commission rules 

Section 1106 would direct the FCC to retain its third-adjacent 

channel protection for full-power FM stations in certain significantly populated States. 

TITLE XII—CELL PHONE TAX MORATORIUM

Section 1201. Short title 

Section 1201 would provide the short title for title XII of the bill, 

the ‘‘Cell Phone Tax Moratorium Act of 2006.’’

Section 1202. Moratorium 

Section 1202 would for three years after enactment prohibit 

States and localities from levying new taxes that single out wireless phone service, but would not affect existing taxes. 

TITLE XIII—TRUTH IN CALLER ID

Section 1301. Short title 

Section 1301 would provide the short title for title XIII of the 

bill, the ‘‘Truth in Caller ID Act of 2006.’’

Section 1302. Prohibition regarding manipulation of caller identification information 

Section 1302 of the bill would make it unlawful to cause any caller identification service to transmit misleading or inaccurate caller 

identification information and would require the FCC to adopt 

rules within 6 months of enactment to implement such prohibition 

and to report to Congress as to whether additional legislation is 

necessary. 

TITLE XIV—RURAL WIRELESS AND BROADBAND SERVICE

Section 1401. Short title 

Section 1402 would provide the short title for title XIV of the bill, 

the ‘‘Rural Wireless and Broadband Service Act of 2006.’’

Section 1402. Small geographic licensing areas 

Section 1402 would amend section 309(j)(4)(C) of the Communications Act to require the FCC to consider licensing spectrum in 

smaller geographic areas in order to encourage wireless deployment and build-out in rural and underserved areas. 

Section 1403. Report on the impact of secondary market transactions 

Section 1403 would amend subsection 309(j) of the Act by adding 

a new paragraph 309(j)(17). 


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New subparagraph 309(j)(17) would require the FCC to within 2 

years after enactment, and every 2 years thereafter, to report to 

Congress analyzing and evaluating the impact of the FCC’s rules 

concerning spectrum leasing, as well as its spectrum partitioning 

and spectrum disaggregation rules, in facilitating the deployment 

of wireless services, particularly in rural and underserved areas. 

New subparagraph 309(j)(18) would require the FCC, in coordination with NTIA, to develop an integrated national database the 

provides detailed information about spectrum assignments and licensing, but would specifically prohibit providing public access to 

information protected under chapter 5 of title 5, United States 

Code, or information that if disclosed would compromise national 

security. 

Section 1404. Radio spectrum review 

Section 1404 would amend Part I of title III of the Communications Act by inserting a new section 344 that would require the 

FCC to review spectrum use. 

New subsection 344(a) would require that not later than 5 years 

after enactment, and every 5 years thereafter, the FCC and NTIA 

shall conduct a band-by-band analysis of the spectrum managed by 

each agency and report to Congress on any bands that are not 

being effectively or efficiently utilized. 

New subsection 344(b) would authorize the FCC and NTIA, in 

conducting the analysis required by new subsection 344(a), to require licensees and other spectrum users to provide spectrum usage 

information and would exempt the collection of such information 

from the Paperwork Reduction Act. 

Section 1405. 700 MHz license areas 

Section 1405 would require the FCC, within 180 days after enactment, to initiate a rulemaking to reconfigure portions of the 700 

MHz band, including that portion that will contain recovered analog spectrum to be auctioned beginning on January 28, 2008 under 

the Deficit Reduction Act, for small geographic licenses areas. This 

section would require that such rulemaking must consider the January 28, 2008 auction and the promotion of infrastructure build-out 

and service to rural areas as well as the competitive benefits, 

unique characteristics, and special needs of regional and smaller 

wireless carriers. The FCC’s reconfiguration rulemaking would be 

subject to the restriction in section 1406. 

Section 1406. No interference with DTV transition 

Section 1406 would prohibit the FCC from undertaking any reconfiguration of the band plan under section 1405 if such reconfiguration would be likely to delay the auction of recovered spectrum 

or the terminations of licenses required by section 3002(b) of the 

Deficit Reduction Act, P.L. 109–171. 

Section 1407. Effective date 

Section 1407 would provide that title XIV and the amendments 

made by it would take effect 90 days after enactment. 

øThe Committee directs the FCC to complete action no later than 

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tion are permissible under the FCC’s Over-the-Air Reception Devices (OTARD) Rules (ET Docket No. 05–247).¿ 

ROLLCALL VOTES IN COMMITTEE

Senator Sununu offered an amendment to the bill that would 

codify the FCC’s decisions in the vonage and pulver.com proceedings, WC Dockets No. 03–211 and 03–45, and would prohibit 

the Commission from taking action to undermine, alter or amend 

such decisions except to apply such decisions to similar services 

sharing similar basic characteristics. The amendment also would 

dismiss any pending challenges to the vonage and pulver.com decisions and would clarify that nothing in the section shall be construed to supersede or preempt the consumer protection laws of 

any State, including any privacy or anti-child pornography law of 

a State, except to the extent that such laws regulate the rates for 

entry or exit by a service provider. By a roll call vote of 14 yeas 

and 8 nays as follows, the amendment was adopted. 

YEAS—14 NAYS—8 

Mr. McCain1 Mr. Burns 

Mr. Lott1 Mr. Vitter 

Mrs. Hutchison1 Mr. Inouye 

Ms. Snowe Mr. Rockefeller1

Mr. Smith Mr. Kerry1

Mr. Ensign Mr. Dorgan 

Mr. Allen Mr. Nelson of Nebraska 

Mr. Sununu Mr. Pryor 

Mr. DeMint 

Mrs. Boxer 

Mr. Nelson of Florida 

Ms. Cantwell 

Mr. Lautenberg 

Mr. Stevens 

1By proxy 

Senator Dorgan offered an amendment to the bill that would 

strike the preemption provisions added by the Sununu amendment. 

By a roll call vote of 15 nays and 7 yeas, the amendment was defeated. 

YEAS—7 NAYS—15 

Mr. Inouye Mr. McCain1

Mr. Rockefeller Mr. Burns 

Mr. Kerry Mr. Lott 

Mr. Dorgan Mrs. Hutchison1

Mr. Nelson of Florida1 Ms. Snowe1

Mr. Nelson of Nebraska1 Mr. Smith1

Mr. Pryor Mr. Ensign 

Mr. Allen 

Mr. Sununu 

Mr. DeMint1

Mr. Vitter 

Mrs. Boxer 

Ms. Cantwell 

Mr. Lautenberg1

Mr. Stevens 1By proxy 


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Senator Rockefeller offered an amendment that would make 

available from the universal service fund amounts to pay for discounted interoperable emergency communications equipment for 

police, firemen, and medical response personnel. By a roll call vote 

of 10 yeas and 12 nays as follows, the amendment was defeated. 

YEAS—10 NAYS—12 

Mr. Inouye Mr. McCain1

Mr. Rockefeller Mr. Burns 

Mr. Kerry Mr. Lott 

Mr. Dorgan Mrs. Hutchison1

Mrs. Boxer Ms. Snowe1

Mr. Nelson of Florida1 Mr. Smith1

Ms. Cantwell Mr. Ensign 

Mr. Lautenberg1 Mr. Allen 

Mr. Nelson of Nebraska1 Mr. Sununu 

Mr. Pryor Mr. DeMint1

Mr. Vitter 

Mr. Stevens 1By proxy 

Senator Dorgan offered an amendment that would preserve the 

authority of local franchising authorities to review the sale of video 

service providers as provided in current law. By a roll call vote of 

9 yeas and 13 nays as follows, the amendment was defeated. 

YEAS—9 NAYS—13 

Mr. Inouye Mr. McCain1

Mr. Rockefeller Mr. Burns 

Mr. Dorgan Mr. Lott 

Mrs. Boxer Mrs. Hutchison1

Mr. Nelson of Florida Ms. Snowe 

Ms. Cantwell1 Mr. Smith1

Mr. Lautenberg Mr. Ensign 

Mr. Nelson of Nebraska Mr. Allen1

Mr. Pryor Mr. Sununu 

Mr. DeMint1

Mr. Vitter1

Mr. Kerry 

Mr. Stevens 1By proxy 

Senator Lautenberg offered an amendment that would allow 

States to enact consumer protection laws governing video programmers. By a roll call vote of 10 yeas and 12 nays as follows, the 

amendment was defeated. 

YEAS—10 NAYS—12 

Mr. Inouye1 Mr. McCain1

Mr. Rockefeller1 Mr. Burns 

Mr. Kerry1 Mr. Lott 

Mr. Dorgan Mrs. Hutchison1

Mrs. Boxer Ms. Snowe 

Mr. Nelson of Florida Mr. Smith1

Ms. Cantwell Mr. Ensign 

Mr. Lautenberg Mr. Allen 

Mr. Nelson of Nebraska Mr. Sununu 


hmoore on PROD1PC68 with HMRPT
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Mr. Pryor Mr. DeMint 

Mr. Vitter 

Mr. Stevens 1By proxy 

Senator Lautenberg offered an amendment that would grandfather existing statewide video franchises adopted before December 

31, 2006. By a roll call vote of 8 yeas and 14 nays as follows, the 

amendment was defeated. 

YEAS—8 NAYS—14 

Mrs. Hutchison1 Mr. McCain1

Mr. Inouye Mr. Burns 

Mr. Rockefeller1 Mr. Lott 

Mr. Kerry1 Ms. Snowe 

Mr. Dorgan Mr. Smith1

Mrs. Boxer Mr. Ensign 

Mr. Lautenberg Mr. Allen 

Mr. Nelson of Nebraska Mr. Sununu 

Mr. DeMint 

Mr. Vitter 

Mr. Nelson of Florida 

Ms. Cantwell 

Mr. Pryor 

Mr. Stevens 1By proxy 

Senator Dorgan offered an amendment that would broaden the 

jurisdiction of the Federal Trade Commission to protect consumers 

from unfair and deceptive acts by communications carriers. By a 

roll call vote of 9 yeas and 12 nays as follows, the amendment was 

defeated. 

YEAS—9 NAYS—12 

Ms. Snowe Mr. Burns 

Mr. Inouye Mr. Lott1

Mr. Rockefeller1 Mrs. Hutchison1

Mr. Kerry Mr. Smith 

Mr. Dorgan Mr. Ensign 

Mrs. Boxer Mr. Allen1

Ms. Cantwell Mr. Sununu 

Mr. Lautenberg1 Mr. DeMint 

Mr. Pryor Mr. Vitter1

Mr. Nelson of Florida 

Mr. Nelson of Nebraska 

Mr. Stevens 1By proxy 

Senators Kerry and Boxer offered an amendment that would 

mandate build-out requirements for new video service providers. 

By a roll call vote of 10 yeas and 12 nays as follows, the amendment was defeated 

YEAS—10 NAYS—12 

Ms. Snowe Mr. McCain 

Mr. Inouye Mr. Burns 

Mr. Rockefeller Mr. Lott 

Mr. Kerry Mrs. Hutchison1


hmoore on PROD1PC68 with HMRPT
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Mr. Dorgan Mr. Smith 

Mrs. Boxer Mr. Ensign 

Mr. Nelson of Florida Mr. Allen 

Ms. Cantwell Mr. Sununu 

Mr. Lautenberg1 Mr. DeMint 

Mr. Pryor Mr. Vitter1

Mr. Nelson of Nebraska 

Mr. Stevens 1By proxy 

Senator McCain offered an amendment that would promote 

availability of LPFM radio stations that broadcast in a radius of 

three to five miles. By a roll call vote of 14 yeas and 7 nays as follows, the amendment was adopted. 

YEAS—14 NAYS—7 

Mr. McCain Mr. Burns 

Mr. Lott Ms. Snowe 

Mr. Allen Mr. Smith1

Mr. Sununu Mr. Ensign 

Mr. Vitter1 Mr. DeMint 

Mr. Inouye Mr. Nelson of Nebraska 

Mr. Rockefeller Mr. Stevens 

Mr. Kerry1

Mr. Dorgan 

Mrs. Boxer 

Mr. Nelson of Florida1

Ms. Cantwell 

Mr. Lautenberg 

Mr. Pryor 

1By proxy 

Senators McCain, Allen, Bill Nelson and Stevens offered an 

amendment that would impose a 3-year moratorium on cell phonespecific taxes. By a roll call vote of 21 yeas and 1 nay as follows, 

the amendment was adopted. 

YEAS—21 NAYS—1 

Mr. McCain Mr. Rockefeller 

Mr. Burns 

Mr. Lott 

Mrs. Hutchison1

Ms. Snowe 

Mr. Smith1

Mr. Ensign1

Mr. Allen 

Mr. Sununu1

Mr. DeMint 

Mr. Vitter1

Mr. Inouye 

Mr. Kerry1

Mr. Dorgan 

Mrs. Boxer 

Mr. Nelson of Florida1

Ms. Cantwell 

Mr. Lautenberg 

Mr. Nelson of Nebraska 


hmoore on PROD1PC68 with HMRPT
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Mr. Pryor 

Mr. Stevens 

1By proxy 

Senator McCain offered an amendment that would require that 

multichannel video programming distributors offer their video programming on an a ́ la carte basis. By a roll call vote of 2 yeas and 

20 nays as follows, the amendment was defeated. 

YEAS—2 NAYS—20 

Mr. McCain Mr. Burns 

Ms. Snowe Mr. Lott 

Mrs. Hutchison1

Mr. Smith1

Mr. Ensign 

Mr. Allen 

Mr. Sununu 

Mr. DeMint 

Mr. Vitter1

Mr. Inouye 

Mr. Rockefeller 

Mr. Kerry1

Mr. Dorgan 

Mrs. Boxer 

Mr. Nelson of Florida1

Ms. Cantwell 

Mr. Lautenberg 

Mr. Nelson of Nebraska 

Mr. Pryor 

Mr. Stevens 1By proxy 

Senator Allen offered an amendment that would impose a permanent moratorium on Internet access taxes. By a roll call vote of 19 

yeas and 3 nays as follows, the amendment was adopted. 

YEAS—19 NAYS—3 

Mr. McCain1 Mr. Rockefeller 

Mr. Burns Mr. Dorgan 

Mr. Lott Mr. Lautenberg 

Mrs. Hutchison1

Ms. Snowe 

Mr. Smith1

Mr. Ensign 

Mr. Allen 

Mr. Sununu 

Mr. DeMint 

Mr. Vitter1

Mr. Inouye 

Mr. Kerry1

Mrs. Boxer 

Mr. Nelson of Florida1

Ms. Cantwell 

Mr. Nelson of Nebraska1

Mr. Pryor1

Mr. Stevens 

1By proxy 


hmoore on PROD1PC68 with HMRPT
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Senators Snowe and Dorgan offered an amendment that would 

impose nondiscrimination obligations on broadband network operators. By a roll call vote of 11 yeas and 11 nays as follows, the 

amendment was defeated. 

YEAS—11 NAYS—11 

Ms. Snowe Mr. McCain1

Mr. Inouye Mr. Burns 

Mr. Rockefeller Mr. Lott 

Mr. Kerry Mrs. Hutchison1

Mr. Dorgan Mr. Smith 

Mrs. Boxer Mr. Ensign 

Mr. Nelson of Florida Mr. Allen 

Ms. Cantwell Mr. Sununu 

Mr. Lautenberg1 Mr. DeMint 

Mr. Nelson of Nebraska1 Mr. Vitter1

Mr. Pryor Mr. Stevens 

1By proxy 

Senator Boxer offered an amendment that would retain basic 

cable rate regulation in markets for a longer period than provided 

for in the bill. By a roll call vote of 10 yeas and 12 nays as follows, 

the amendment was defeated. 

YEAS—10 NAYS—12 

Mr. Inouye Mr. McCain1

Mr. Rockefeller Mr. Burns 

Mr. Kerry1 Mr. Lott1

Mr. Dorgan Mrs. Hutchison1

Mrs. Boxer Ms. Snowe 

Mr. Nelson of Florida Mr. Smith1

Ms. Cantwell Mr. Ensign1

Mr. Lautenberg1 Mr. Allen 

Mr. Nelson of Nebraska1 Mr. Sununu 

Mr. Pryor Mr. DeMint 

Mr. Vitter1

Mr. Stevens 1By proxy 

Senator Inouye offered an amendment that would strike the bill 

in its entirety and replace it with a complete substitute. By a roll 

call vote of 10 yeas and 12 nays as follows, the amendment was 

defeated. 

YEAS—10 NAYS—12 

Mr. Inouye Mr. McCain1

Mr. Rockefeller Mr. Burns 

Mr. Kerry1 Mr. Lott1

Mr. Dorgan Mrs. Hutchison1

Mrs. Boxer Ms. Snowe 

Mr. Nelson of Florida Mr. Smith1

Ms. Cantwell Mr. Ensign1

Mr. Lautenberg Mr. Allen 

Mr. Nelson of Nebraska1 Mr. Sununu 

Mr. Pryor Mr. DeMint 

Mr. Vitter1

Mr. Stevens 


hmoore on PROD1PC68 with HMRPT
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1By proxy 

The Full Committee ordered H.R. 5252 to be reported favorably 

with amendments by a roll call vote of 15 yeas and 7 nays as follows. 

YEAS—15 NAYS—7 

Mr. McCain Mr. Rockefeller 

Mr. Burns Mr. Kerry1

Mr. Lott1 Mr. Dorgan 

Mrs. Hutchison1 Mrs. Boxer 

Ms. Snowe Mr. Nelson of Florida 

Mr. Smith1 Ms. Cantwell 

Mr. Ensign1 Mr. Lautenberg 

Mr. Allen 

Mr. Sununu 

Mr. DeMint 

Mr. Vitter1

Mr. Inouye 

Mr. Nelson of Nebraska1

Mr. Pryor 

Mr. Stevens 

1By proxy 


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ADDITIONAL VIEWS OF SENATORS INOUYE, DORGAN, AND 

BOXER 

While some of us opposed the Advanced Telecommunications and 

Opportunity Reform Act of 2006 (H.R. 5252) and others of us voted 

to report this bill out of committee, all of us agree that the major 

provisions of this bill—which were virtually unchanged through the 

Committee process—fail to meaningfully advance the cause of competition without eviscerating important consumer protections. With 

respect to video franchising, the bill would adopt a new framework 

that would eliminate important consumer protections, widen our 

nation’s ‘‘digital divide’’ and override recent State efforts to streamline entry and promote meaningful competition. 

With respect to network neutrality, the bill wholly fails to reestablish needed protections that would prohibit broadband network 

operators from unfairly discriminating against rival providers of 

communications services. Such an omission ignores the lessons of 

history as well as the recent statements of Bell executives who 

have openly expressed their desire to use their bottleneck control 

over network transmission as a means to charge service providers 

for access to broadband customers. Without stronger statutory protections, the ‘‘rights’’ granted to consumers in this legislation will 

be cold comfort to consumers whose choices will be controlled by 

the decisions of network gatekeepers. 

And finally, we remain concerned that a variety of provisions in 

the bill preempting State authority have not received sufficient 

scrutiny and represent emotional reactions to concerns about the 

impact of State regulation on the growth of communications services. As a result, we think greater care and attention to these 

issues must be given by Congress in order to avoid the unintended 

consequences of such actions. 

While we recognize that many items in the Senate communications bill are either noncontroversial or have been improved 

through the committee amendment process, the presence of such 

items does not outweigh our substantial concerns with core components of the bill. As a result, without significant improvements to 

the current bill on these key issues, we cannot support further consideration of this legislation in the 109th Congress. 

The Senate bill fails to promote innovation and competition by prohibiting broadband network operators from unfairly discriminating against their rivals. 

Over a relatively short period in our nation’s history, the Internet has grown from a university research project into a robust engine for innovation, economic growth, social discourse, and the free 

flow of ideas. Its rapid evolution has been fueled not only by the 

‘‘end-to-end’’ principle, which guided its original architectural design, but also by specific legal protections pre-dating the original 


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Communications Act of 1934 that required operators of communications networks to abide by principles of nondiscrimination. 

These protections have been critical to the growth of the Internet. Because networks have been managed neutrally and without 

bias, they have supported a free market for innovation and consumer choice that has encouraged entrepreneurs and innovators to 

launch businesses without any fear that a gatekeeper would prevent them from reaching potential customers. This important safeguard against discrimination and prohibitive access costs has 

prompted an explosion of investment and innovation at the edges 

of the network. As one of the fathers of the Internet, Vint Cerf, testified before Congress: the Internet represents ‘‘innovation without 

permission.’’ But that is not an accident; it is a product of specific 

legal protections that were in place until August 2005 and now 

have been swept away. 

The core value behind this principle of nondiscrimination is that 

consumers and the marketplace can better decide what content will 

succeed or fail on the Internet, and not a telephone or cable company executive. With these legal protections in place, anyone with 

a good idea has been able to use the Internet to connect with consumers and to compete on a level playing field for consumers’ business. As a result, the marketplace has picked winners and losers, 

and not a central gatekeeper. This bedrock concept of connecting 

innovators and consumers without interference—commonly referred to as ‘‘net neutrality’’—has been a hallmark feature of the 

Internet and is a principal reason why America leads the world in 

online innovation. But had the narrowband Internet of the 1990s 

been limited only to content chosen by the local telephone companies, it never would have developed into the broadband Internet of 

2006. 

There is a critical need for nondiscrimination rules to be restored, because the market cannot solve this problem. The 

broadband market is not competitive today, nor will it be for the 

foreseeable future. No competition means broadband operators can 

do whatever they want, and consumers have little or no choice but 

to accept that bad outcome. The latest Federal Communications 

Commission report on broadband shows that the local cable and 

telephone companies have a 98 percent share of the national 

broadband residential access market. However, even these statistics significantly overstate the case of competition as they rely on 

the assumption that providers offering broadband to any subscriber 

in a zip code similarly provide such service to all subscribers in 

that zip code. As noted by Government Accountability Office in 

May 2006, this methodology ‘‘overstates the level of competition to 

individual households’’ and obscures the fact that the median number of broadband providers available to consumers is two. Experts 

appearing before the Committee indicated that the duopoly situation will not change any time soon. As a consequence of this lack 

of competition, the market provides no protection against anti-competitive or discriminatory behavior. When consumers have at best 

two options for broadband providers, and many consumers have 

just one option, there is a market failure and additional protections 

are needed. 


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Regrettably, provisions in the Senate bill addressing the issue of ‘‘net neutrality’’ fall well short of providing effective protection 

against unfair discrimination by broadband network operators. 

First, the Senate bill fails to include any provisions to protect 

rival content and applications providers from unfair discrimination 

by network operators. Under Title IX of the bill, network operators 

would be free to give special treatment to favored service providers, 

or no service to disfavored providers. As a result, such power could 

be used to frustrate competition through the creation of a ‘‘twotiered’’ Internet where network operators control which content and 

service providers would be allowed to access Internet ‘‘fast lanes’’ and which providers would be relegated to an increasingly crowded 

‘‘slow lane.’’ Second, the so-called ‘‘consumer rights’’ set forth in the Senate 

bill are insufficient to protect consumers’ interest in fair and open 

competition on the Internet. Because the newly created ‘‘rights’’ in 

the bill apply only to Internet ‘‘subscribers,’’ the bill fails to recognize that discriminatory decisions made by network operators 

against rival providers have a profound impact on both the nature 

and quality of the choices available to consumers. As a result, the 

absence of nondiscriminatory protections in the bill seriously undermines the value of these new rights. 

Third, the Senate bill would unwisely limit the FCC’s authority 

to address problems of discriminatory behavior. By expressly barring the FCC from issuing rules to remedy discriminatory practices 

or from modifying the obligations imposed on ISPs through the adjudicatory process, the bill would unwisely curtail the authority of 

the Commission to act in the public interest to remedy unanticipated problems. 

During consideration of H.R. 5252 in committee, Senators Snowe, 

Dorgan, Kerry, Boxer and Cantwell offered an amendment to remedy the legislation’s failure to preserve the fundamental principle 

of nondiscrimination that had shaped the development and growth 

of the Internet and had been in place until recent Federal Communications Commission and Supreme Court decisions. This amendment failed on a tie 11-11 vote. 

Importantly, this amendment would have allowed broadband operators to offer their customers differing speed or price options for 

broadband services, or to prioritize certain categories of traffic, for 

example, to slow down spam or prioritize video services. However, 

the Snowe-Dorgan amendment would ensure that a broadband operator could not discriminate according to the source or ownership 

of Internet content. Network operators would not be permitted to 

pick winners and losers for consumers. Instead, consumers would 

keep the power to choose for themselves. 

The Internet has never operated on a model where a broadband 

operator looks at who is sending the traffic; it should only look at 

what it is—is it video, is it spam? Broadband operators should be 

able to manage the network to deliver types of traffic in an efficient 

manner; they should not be able to manage the network based on 

the source of the content (such as an affiliate) or how much a content provider can afford to pay to reach the consumer. 

H.R. 5252 purports to promote broadband and video competition. 

Yet without provisions to protect this core Internet freedom, the 


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legislation will allow broadband operators to use the networks built 

as a result of this bill and then act in discriminatory and anti-competitive ways toward Internet content, service and applications providers that rely on these broadband networks to reach consumers. 

Consumers will lose the free and open Internet that has spurred 

innovation and rapid development in education, medicine, business, 

and broadband deployment. Instead, it will be subject to the demands and criteria of those that control the networks. 

The Senate bill will exacerbate America’s ‘‘digital divide’’ 

through its failure to require cable and telephone network 

operators to upgrade their systems uniformly over a reasonable period of time. 

Traditional cable franchises generally contain standard terms requiring operators to provide service to all households within a franchise area, subject to certain density requirements. This obligation 

is reasonable and appropriate given the permission granted by the 

community to the operator for use of the public rights-of way. In 

contrast, the Senate version of H.R. 5252 eliminates the current 

mode of franchising that relies on ‘‘negotiated agreements’’ and instead establishes a ‘‘form agreement’’ that States and localities 

must use and that imposes no obligation on video service providers 

to extend services to all households in a community within a reasonable period of time. 

In the absence of a requirement on operators to upgrade their 

networks uniformly over a reasonable period of time, such operators will selectively pick and choose to upgrade some neighborhoods 

and will ignore others where profit margins are not as high. If such 

‘‘cherry-picking’’ is allowed, it will mean that only certain ‘‘highvalue’’ households will receive the benefits of new competition from 

phone companies and that cable companies would similarly be able 

to target future upgrades to particular neighborhoods. 

Morever, because the framework for franchising created under 

the bill applies not only to new entrants, but also to incumbent 

cable operators, such operators will be allowed to escape existing 

service obligations upon the expiration of their existing terms 

whether or not a new competitor begins providing competitive service in the franchise area. At best, this will mean that future network upgrades by incumbent operators will no longer be subject to 

requirements that ensure universal availability within a franchise 

area. At worst, it will permit incumbent cable operators to withdraw from less profitable areas where they currently provide service, even where no new competitive alternatives exist. 

Finally, the likelihood of discriminatory deployment of broadband 

networks is not lessened by the bill’s new, anti-redlining provisions. Indeed, anti-redlining provisions in the past have only been 

effective because they exist in tandem with the ability of local governments to require service to all homes over time. In contrast, the 

new redlining provisions weaken, rather than strengthen, protections in existing law, by limiting enforcement to the discretion of 

the State Attorney General rather than the franchise area in question, and by creating gaping loopholes where an operator could be 

excused from liability on the basis of ‘‘commercial feasibility’’ even 

though redlining prohibitions emphatically state that discrimination on the basis of household income is forbidden. 


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To remedy these concerns and to ensure that video providers extend their networks to all households within their existing network 

footprint, Senators Kerry and Boxer offered an amendment during 

the mark-up to require video service providers to build out service 

to every household in the community as most cable companies have 

done for two decades. 

Under the Amendment, build out obligations were tied to two 

factors-time and the establishment of effective competition. This 

plan would place no requirements on the new video provider for 3 

years. The operator would be free to pick and choose where it goes 

and serve whomever it pleases, subject to the anti-redlining provisions in the bill. After three years, if the company has captured 15 

percent of the market in the service area it has chosen, it would 

be required to expand its service area by 20 percent of the households in the local franchise area served by the cable incumbent. 

This pattern would be repeated every 2 years, incrementally 

achieving universal availability of video competition. The FCC was 

empowered to grant exemptions. This is a less aggressive build-out 

schedule than what is being negotiated in the private market. In 

fact, telephone companies have negotiated franchise agreements 

that include robust build-out requirements. In Fairfax County, Virginia, for example, a telephone company agreed to the same buildout schedule as the incumbent cable operators-full build out in 7 

years. 

The amendment failed by a vote of 10 to 12, and the bill reported 

out of Committee includes no build out requirement of any kind. 

If Congress is to federalize the franchising process, it must include 

mandatory build out requirements that guarantee that every 

household, regardless of income, race or location will receive the 

benefits of competition and new technologies over time. Universal 

affordable availability of the same technologies and services to 

every family is the necessary outcome. Our policies must deliver on 

that promise. 

The Senate bill eliminates long-standing consumer protections under Title VI and drastically curtails the role of State 

and local governments in protecting their citizens. 

In addition to creating a new, Federal ‘‘form agreement’’ for video 

franchising, the bill eliminates a number of provisions in current 

law that either reserve certain powers to franchising authorities or 

impose specific obligations on cable operators. Specifically, the bill: 

(1) eliminates requirements to provide ‘‘leased access’’ channels 

(section 612); (2) eliminates the authority of franchising authorities 

to review the sale of cable systems (section 617); (3) sunsets basic 

rate regulation immediately where a new entrant provides video 

service to even one household (compared to current section 623 

which sunsets basic rate regulation upon a finding of ‘‘effective 

competition’’); and (4) eliminates the authority of States and local 

franchising authorities to adopt and enforce their own consumer 

protection requirements (as is currently allowed under section 632). 

Perhaps most troubling is the fact that many of these deregulatory changes are not tied to the emergence of new competition. As 

a result, because the Senate bill allows incumbent cable operators 

to obtain a ‘‘form franchise’’ upon the expiration of their current 

franchise term, such obligations under current law will expire reVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00085 Fmt 6604 Sfmt 6604 E:\HR\OC\SR355.XXX SR355

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gardless of whether a new video competitor is providing service 

within the franchise area. 

The Senate bill overrides current efforts to streamline the 

franchising process, including new State laws that promote 

deployment and ensure fair treatment to consumers. 

Under the current framework in title VI of the Communications 

Act, a number of States have adopted procedures to promote fair 

competition and streamline the process for competitive entry. For 

example, in Hawaii, Alaska, and Vermont, existing State law expedites the entry process by giving sole responsibility for the issuance 

of new video franchises to a single State authority. More recently, 

a number of other States, including Virginia, New Jersey, and California, have enacted new laws carefully crafted to balance the interests of new providers in expediting the franchising process with 

the interests of consumers in ensuring that new communications 

capabilities will be made widely deployed throughout their community. As one analyst has noted, in just the past year franchise reform legislation has been enacted that covers roughly 60 percent of 

AT&T’s lines and 33 percent of Verizon’s lines. Unfortunately, the 

Senate bill would replace these constructive improvements occurring at State and local levels with a new framework that fails to 

protect consumers and advance the public interest. 


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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): 

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE 

JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS 

ACT, 2001 

[P.L. 106–553; 114 Stat. 2762A–111] 

øSEC. 632.(a)(1) The Federal Communications Commission shall 

modify the rules authorizing the operation of low-power FM radio 

stations, as proposed in MM Docket No. 99–25, to— ø(A) prescribe minimum distance separations for third-adjacent channels (as well as for co-channels and first- and secondadjacent channels); and 

ø(B) prohibit any applicant from obtaining a low-power FM 

license if the applicant has engaged in any manner in the unlicensed operation of any station in violation of section 301 of 

the Communications Act of 1934 (47 U.S.C. 301). 

ø(2) The Federal Communications Commission may not— ø(A) eliminate or reduce the minimum distance separations for third-adjacent channels required by paragraph 

(1)(A); or 

ø(B) extend the eligibility for application for low-power 

FM stations beyond the organizations and entities as proposed in MM Docket No. 99–25 (47 CFR 73.853),except as 

expressly authorized by an Act of Congress enacted after 

the date of the enactment of this Act. 

ø(3) Any license that was issued by the Commission to a lowpower FM station prior to the date on which the Commission 

modifies its rules as required by paragraph (1) and that does 

not comply with such modifications shall be invalid. 

ø(b)(1) The Federal Communications Commission shall conduct 

an experimental program to test whether low-power FM radio stations will result in harmful interference to existing FM radio stations if such stations are not subject to the minimum distance separations for third-adjacent channels required by subsection (a). The 

Commission shall conduct such test in no more than nine FM radio 

markets, including urban, suburban, and rural markets, by waiving 

the minimum distance separations for third-adjacent channels for 

the stations that are the subject of the experimental program. At 

least one of the stations shall be selected for the purpose of evaluating whether minimum distance separations for third-adjacent 

channels are needed for FM translator stations. The Commission 

may, consistent with the public interest, continue after the concluVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00087 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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sion of the experimental program to waive the minimum distance 

separations for third-adjacent channels for the stations that are the 

subject of the experimental program. 

ø(2) The Commission shall select an independent testing entity to conduct field tests in the markets of the stations in the 

experimental program under paragraph (1). Such field tests 

shall include—

ø(A) an opportunity for the public to comment on interference; and 

ø(B) independent audience listening tests to determine 

what is objectionable and harmful interference to the average radio listener. 

ø(3) The Commission shall publish the results of the experimental program and field tests and afford an opportunity for 

the public to comment on such results. The Federal Communications Commission shall submit a report on the experimental program and field tests to the Committee on Commerce 

of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate not later 

than February 1, 2001. Such report shall include—

ø(A) an analysis of the experimental program and field 

testsand of the public comment received by the Commission; 

ø(B) an evaluation of the impact of the modification 

orelimination of minimum distance separations for thirdadjacentchannels on—

ø(i) listening audiences; 

ø(ii) incumbent FM radio broadcasters in general, 

and on minority and small market broadcasters in 

particular, including an analysis of the economic impact on such broadcasters; 

ø(iii) the transition to digital radio for terrestrial 

radio broadcasters; 

ø(iv) stations that provide a reading service for the 

blind to the public; and 

ø(v) FM radio translator stations; 

ø(C) the Commission’s recommendations to the Congress 

to reduce or eliminate the minimum distance separations 

for third-adjacent channels required by subsection (a); and 

ø(D) such other information and recommendations as the 

Commission considers appropriate.¿ 

UNITED STATES CODE 

TITLE 18. CRIMES AND CRIMINAL PROCEDURE 

PART I. CRIMES

CHAPTER 110. SEXUAL EXPLOITATION AND OTHER ABUSE OF CHILDREN

§ 2252C. Misleading words or images on the Internet 

(a) IN GENERAL.—

(1) MATTER THAT IS OBSCENE.—It is unlawful for any person 

knowingly to embed words, symbols, or digital images into the 


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source code of a website with the intent to deceive another person into viewing material that is obscene. 

(2) MATTER THAT IS HARMFUL TO CHILDREN.—It is unlawful 

for any person knowingly to embed words, symbols, or digital 

images into the source code of a website with the intent to deceive a minor into viewing material that is harmful to minors. 

(3) IDENTIFIED MATTER NOT DECEPTIVE.—For purposes of this 

section, a word, symbol, or image that clearly indicates the sexual content of a website as sexual, pornographic, or similar 

terms shall not be considered to be misleading or deceptive. 

(b) DEFINITIONS.—In this section: 

(1) MATERIAL HARMFUL TO MINORS.—The term ‘‘material that 

is harmful to minors’’ means a communication consisting of nudity, sex, or excretion that, taken as a whole and with reference 

to its content—

(A) predominantly appeals to a prurient interest of a 

minor; 

(B) is patently offensive to prevailing standards in the 

adult community as a whole with respect to what is suitable material for minors; and 

(C) lacks serious literary, artistic, political, or scientific 

value for minors. 

(2) SEX.—The term ‘‘sex’’ means acts of masturbation, sexual 

intercourse, or physical contact with a person’s genitals, or the 

condition of human male or female genitals when in a state of 

sexual stimulation or arousal. 

(3) SOURCE CODE.—The term ‘‘source code’’ means the combination of text and other characters comprising the content, 

both viewable and nonviewable, of a web page, including any 

website publishing language, programming language, protocol, 

or functional content. 

(c) PENALTIES.—

(1) OBSCENE MATERIAL.—Violation of subsection (a)(1) is punishable by a fine under this title, or imprisonment for not more 

than 2 years, or both. 

(2) MATERIAL HARMFUL TO MINORS.—Violation of subsection 

(a)(2) is punishable by a fine under this title, or imprisonment 

for not more than 4 years, or both. 

§ 2255. Civil remedy for personal injuries 

ø(a) Any minor who is¿ (a) IN GENERAL.—Any person who, while 

a minor, was a victim of a violation of section 2241(c), 2242, 2243, 

2251, 2251A, 2252, 2252A, 2260, 2421, 2422, or 2423 of this title 

and who suffers personal injury as a result of øsuch violation¿ such 

violation, regardless of whether the injury occurred while such person was a minor, may sue in any appropriate United States District Court and shall recover the actual damages øsuch minor¿ 

such person sustains and the cost of the suit, including a reasonable attorney’s fee. øAny minor¿ Any person as described in the 

preceding sentence shall be deemed to have sustained damages of 

no less than ø$50,000¿ $150,000 in value. 

ø(b) Any action¿ (b) STATUTE OF LIMITATIONS.—Any action commenced under this section shall be barred unless the complaint is 

filed within six years after the right of action first accrues or in the 


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case of a person under a legal disability, not later than three years 

after the disability. 

CRIME CONTROL ACT OF 1990 

SEC. 227. REPORTING OF CHILD PORNOGRAPHY BY ELECTRONIC 

COMMUNICATION SERVICE PROVIDERS. 

[42 U.S.C. 13032] 

(a) DEFINITIONS.—In this section— (1) the term ‘‘electronic communication service’’ has the 

meaning given the term in section 2510 of title 18, United 

States Code; and 

(2) the term ‘‘remote computing service’’ has the meaning 

given the term in section 2711 of title 18, United States Code. 

(b) REQUIREMENTS.— (1) DUTY TO REPORT.—Whoever, while engaged in providing 

an electronic communication service or a remote computing 

service to the public, through a facility or means of interstate 

or foreign commerce, obtains knowledge of facts or circumstances from which a violation of section 2251, 2251A, 

2252, 2252A, 2252B, or 2260 of title 18, United States Code, 

involving child pornography (as defined in section 2256 of that 

title), or a violation of section 1466A of that title, is apparent, 

shall, as soon as reasonably possible, make a report of such 

facts or circumstances to the Cyber Tip Line at the National 

Center for Missing and Exploited Children, which shall forward that report to a law enforcement agency or agencies designated by the Attorney General. 

(2) DESIGNATION OF AGENCIES.—Not later than 180 days 

after the date of enactment of this section, the Attorney General shall designate the law enforcement agency or agencies to 

which a report shall be forwarded under paragraph (1). 

(3) In addition to forwarding such reports to those agencies 

designated in subsection (b)(2), the National Center for Missing and Exploited Children is authorized to forward any such 

report to an appropriate official of a state or subdivision of a 

state for the purpose of enforcing state criminal law. 

(4) FAILURE TO REPORT.—A provider of electronic communication services or remote computing services described in paragraph (1) who knowingly and willfully fails to make a report 

under that paragraph shall be fined— (A) in the case of an initial failure to make a report, not 

more than ø$50,000;¿ $150,000; and 

(B) in the case of any second or subsequent failure to 

make a report, not more than ø$100,000.¿ $300,000. 

(c) CIVIL LIABILITY.—No provider or user of an electronic communication service or a remote computing service to the public shall 

be held liable on account of any action taken in good faith to comply with or pursuant to this section. 

(d) LIMITATION OF INFORMATION OR MATERIAL REQUIRED IN REPORT.—A report under subsection (b)(1) may include additional information or material developed by an electronic communication 

service or remote computing service, except that the Federal Government may not require the production of such information or material in that report. 


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(e) MONITORING NOT REQUIRED.—Nothing in this section may be 

construed to require a provider of electronic communication services or remote computing services to engage in the monitoring of 

any user, subscriber, or customer of that provider, or the content 

of any communication of any such person. 

(f) CONDITIONS OF DISCLOSURE OF INFORMATION CONTAINED

WITHIN REPORT.—

(1) IN GENERAL.—No law enforcement agency that receives a 

report under subsection (b)(1) shall disclose any information 

contained in that report, except that disclosure of such information may be made—

(A) to an attorney for the government for use in the performance of the official duties of the attorney; 

(B) to such officers and employees of the law enforcement agency, as may be necessary in the performance of 

their investigative and recordkeeping functions; 

(C) to such other government personnel (including personnel of a State or subdivision of a State) as are determined to be necessary by an attorney for the government 

to assist the attorney in the performance of the official duties of the attorney in enforcing Federal criminal law; or 

(D) where the report discloses a violation of State criminal law, to an appropriate official of a State or subdivision 

of a State for the purpose of enforcing such State law. 

(2) DEFINITIONS.—In this subsection, the terms ‘‘attorney for 

the government’’ and ‘‘State’’ have the meanings given those 

terms in Rule 54 of the Federal Rules of Criminal Procedure. 

INTERNET TAX FREEDOM ACT 

SEC. 1101. MORATORIUM. 

[47 U.S.C. 151 note] 

(a) MORATORIUM.—No State or political subdivision thereof may 

impose any of the following øtaxes during the period beginning November 1, 2003, and ending November 1, 2007:¿ taxes: 

(1) TAXES ON INTERNET ACCESS.—

(2) Multiple or discriminatory taxes on electronic commerce. 

(b) PRESERVATION OF STATE AND LOCAL TAXING AUTHORITY.—Except as provided in this section, nothing in this title shall be construed to modify, impair, or supersede, or authorize the modification, impairment, or superseding of, any State or local law pertaining to taxation that is otherwise permissible by or under the 

Constitution of the United States or other Federal law and in effect 

on the date of enactment of this Act. 

(c) LIABILITIES AND PENDING CASES.—Nothing in this title affects 

liability for taxes accrued and enforced before the date of enactment of this Act, nor does this title affect ongoing litigation relating to such taxes. 

(d) EXCEPTION TO MORATORIUM.— (1) IN GENERAL.—Subsection (a) shall also not apply in the 

case of any person or entity who knowingly and with knowledge of the character of the material, in interstate or foreign 

commerce by means of the World Wide Web, makes any communication for commercial purposes that is available to any 


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minor and that includes any material that is harmful to minors unless such person or entity has restricted access by minors to material that is harmful to minors—

(A) by requiring use of a credit card, debit account, adult 

access code, or adult personal identification number; 

(B) by accepting a digital certificate that verifies age; or 

(C) by any other reasonable measures that are feasible 

under available technology. 

(2) SCOPE OF EXCEPTION.—For purposes of paragraph (1), a 

person shall not be considered to making a communication for 

commercial purposes of material to the extent that the person 

is—

(A) a telecommunications carrier engaged in the provision of a telecommunications service; 

(B) a person engaged in the business of providing an 

Internet access service; 

(C) a person engaged in the business of providing an 

Internet information location tool; or 

(D) similarly engaged in the transmission, storage, retrieval, hosting, formatting, or translation (or any combination thereof) of a communication made by another person, without selection or alteration of the communication. 

(3) DEFINITIONS.—In this subsection: 

(A) BY MEANS OF THE WORLD WIDE WEB.—The term ‘‘by 

means of the World Wide Web’’ means by placement of material in a computer server-based file archive so that it is 

publicly accessible, over the Internet, using hypertext 

transfer protocol, file transfer protocol, or other similar 

protocols. 

(B) COMMERCIAL PURPOSES; ENGAGED IN THE BUSINESS.—

(i) COMMERCIAL PURPOSES.—A person shall be considered to make a communication for commercial purposes only if such person is engaged in the business of 

making such communications. 

(ii) ENGAGED IN THE BUSINESS.—The term ‘‘engaged 

in the business’’ means that the person who makes a 

communication, or offers to make a communication, by 

means of the World Wide Web, that includes any material that is harmful to minors, devotes time, attention, or labor to such activities, as a regular course of 

such person’s trade or business, with the objective of 

earning a profit as a result of such activities (although 

it is not necessary that the person make a profit or 

that the making or offering to make such communications be the person’s sole or principal business or 

source of income). A person may be considered to be 

engaged in the business of making, by means of the 

World Wide Web, communications for commercial purposes that include material that is harmful to minors, 

only if the person knowingly causes the material that 

is harmful to minors to be posted on the World Wide 

Web or knowingly solicits such material to be posted 

on the World Wide Web. 


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(C) INTERNET.—The term ‘‘Internet’’ means collectively 

the myriad of computer and telecommunications facilities, 

including equipment and operating software, which comprise the interconnected world-wide network of networks 

that employ the Transmission Control Protocol/Internet 

Protocol, or any predecessor or successor protocols to such 

protocol, to communicate information of all kinds by wire 

or radio. 

(D) INTERNET ACCESS SERVICE.—The term ‘‘Internet access service’’ means a service that enables users to access 

content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of 

a package of services offered to consumers. The term 

‘‘Internet access service’’ does not include telecommunications services, except to the extent such services are purchased, used, or sold by a provider of Internet access to 

provide Internet access. 

(E) INTERNET INFORMATION LOCATION TOOL.—The term 

‘‘Internet information location tool’’ means a service that 

refers or links users to an online location on the World 

Wide Web. Such term includes directories, indices, references, pointers, and hypertext links. 

(F) MATERIAL THAT IS HARMFUL TO MINORS.—The term ‘‘material that is harmful to minors’’ means any communication, picture, image, graphic image file, article, recording, writing, or other matter of any kind that is obscene 

or that—

(i) the average person, applying contemporary community standards, would find, taking the material as 

a whole and with respect to minors, is designed to appeal to, or is designed to pander to, the prurient interest; 

(ii) depicts, describes, or represents, in a manner 

patently offensive with respect to minors, an actual or 

simulated sexual act or sexual contact, an actual or 

simulated normal or perverted sexual act, or a lewd 

exhibition of the genitals or post-pubescent female 

breast; and 

(iii) taken as a whole, lacks serious literary, artistic, 

political, or scientific value for minors. 

(G) MINOR.—The term ‘‘minor’’ means any person under 

17 years of age. 

(H) TELECOMMUNICATIONS CARRIER; TELECOMMUNICATIONS SERVICE.—The terms ‘‘telecommunications carrier’’

and ‘‘telecommunications service’’ have the meanings given 

such terms in section 3 of the Communications Act of 1934 

(47 U.S.C. 153). 

(e) ADDITIONAL EXCEPTION TO MORATORIUM.— (1) IN GENERAL.—Subsection (a) shall also not apply with respect to an Internet access provider, unless, at the time of entering into an agreement with a customer for the provision of 

Internet access services, such provider offers such customer (either for a fee or at no charge) screening software that is deVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00093 Fmt 6604 Sfmt 6602 E:\HR\OC\SR355.XXX SR355

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signed to permit the customer to limit access to material on 

the Internet that is harmful to minors. 

(2) DEFINITIONS.—In this subsection: 

(A) INTERNET ACCESS PROVIDER.—The term ‘‘Internet access provider’’ means a person engaged in the business of 

providing a computer and communications facility through 

which a customer may obtain access to the Internet, but 

does not include a common carrier to the extent that it 

provides only telecommunications services. 

(B) INTERNET ACCESS SERVICES.—The term ‘‘Internet access services’’ means the provision of computer and communications services through which a customer using a 

computer and a modem or other communications device 

may obtain access to the Internet, but does not include 

telecommunications services provided by a common carrier. 

(C) SCREENING SOFTWARE.—The term ‘‘screening software’’ means software that is designed to permit a person 

to limit access to material on the Internet that is harmful 

to minors. 

(3) APPLICABILITY.—Paragraph (1) shall apply to agreements 

for the provision of Internet access services entered into on or 

after the date that is 6 months after the date of enactment of 

this Act. 

TELECOMMUNICATIONS ACT OF 1996 

SEC. 706. ADVANCED TELECOMMUNICATIONS INCENTIVES. 

[47 U.S.C. 157 note] 

(a) IN GENERAL.—The Commission and each State commission 

with regulatory jurisdiction over telecommunications services shall 

encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans (including, 

in particular, elementary and secondary schools and classrooms) by 

utilizing, in a manner consistent with the public interest, convenience, and necessity, price cap regulation, regulatory forbearance, 

measures that promote competition in the local telecommunications 

market, or other regulating methods that remove barriers to infrastructure investment. 

(b) INQUIRY.—The Commission shall, within 30 months after the 

date of enactment of this Act, and regularly thereafter, initiate a 

notice of inquiry concerning the availability of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) and 

shall complete the inquiry within 180 days after its initiation. In 

the inquiry, the Commission shall determine whether advanced 

telecommunications capability is being deployed to all Americans in 

a reasonable and timely fashion. If the Commission’s determination 

is negative, it shall take immediate action to accelerate deployment 

of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications 

market. 

(c) LOCAL GOVERNMENT PROVISION OF ADVANCED COMMUNICA- TIONS CAPABILITY AND SERVICES.—No State statute, regulation, or 


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other State legal requirement may prohibit or have the effect of prohibiting any public provider from providing, to any person or any 

public or private entity, advanced telecommunications capability or 

any service that utilizes the advanced telecommunications capability 

provided by such public provider. 

(d) SAFEGUARDS.— (1) ANTIDISCRIMINATION.—To the extent any public provider 

regulates competing providers of advanced telecommunications 

capability or any service that utilizes the advanced telecommunications capability provided by such providers, the public provider shall apply its ordinances, rules, policies, and fees, 

including those relating to public rights-of-way, permitting, performance bonding, and reporting, without discrimination in 

favor of itself or any other advanced telecommunications capability provider that such public provider owns or is affiliated 

with, as compared to other providers of such capability or services. 

(2) APPLICATION OF GENERAL LAWS.—Nothing in this subsection or subsections (e) through (g) shall exempt a public provider from any Federal or State telecommunications law or regulation that applies to all providers of— (A) advanced telecommunications capability; or 

(B) any service that utilizes the advanced telecommunications capability provided by such public provider. 

(e) PUBLIC-PRIVATE PARTNERSHIPS ENCOURAGED.—Each public 

provider that intends to provide advanced telecommunications capability or any service that utilizes the advanced telecommunications 

capability provided by such public provider to the public shall consider the potential benefits of a public-private partnership prior to 

providing such capability or services. 

(f) NOTICE AND OPPORTUNITY TO BID FOR THE PRIVATE SECTOR.— (1) NOTICE AND OPPORTUNITY TO BID REQUIRED.—If a public 

provider decides not to initiate a project to provide advanced 

telecommunications capability or any service that utilizes the 

advanced telecommunications capability provided by such public provider to the public through a public-private partnership, 

then, before the public provider may provide such advanced 

telecommunications capability or any such service that utilizes 

the advanced telecommunications capability provided by such 

public provider to the public, the public provider shall— (A)(i) publish notice of its intention in media generally 

available to the public in the area in which it intends to 

provide such capability or service; or 

(ii) utilize such notice procedures as such provider already had in effect as of the date of enactment of the Community Broadband Act, if such notice has the effect of making such notice generally known to the public; and 

(B) provide an opportunity for commercial enterprises to 

bid to provide such capability or service during the 30-day 

period following publication of the notice. 

(2) NOTICE REQUIREMENTS.—The public provider shall include in the notice required by paragraph (1) a description of 

the proposed scope of the advanced telecommunications capability or any service that utilizes the advanced telecommuniVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00095 Fmt 6604 Sfmt 6603 E:\HR\OC\SR355.XXX SR355

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cations capability provided by such public provider to be provided, including— (A) the services to be provided (including network capabilities); 

(B) the coverage area; 

(C) service tiers and pricing; and 

(D) any proposal for providing advanced telecommunications capability or any service that utilizes the advanced 

telecommunications capability provided by such public provider to low-income areas, or other demographically or geographically defined areas. 

(3) PUBLIC NOTICE AND INPUT ON PROPOSED PROJECTS.—

(A) IN GENERAL.—Each public provider shall—

(i) publish notice of each proposal to provide advanced telecommunications capability or any service 

that utilizes the advanced telecommunications capability provided by such public provider to the public by 

a commercial enterprise under paragraph (1)(B); and 

(ii) provide local citizens in the jurisdiction of that 

public provider and such commercial enterprises with 

information on the specifics of each such project, including—

(I) the cost to taxpayers, and the benefits of, the 

proposed public provider project; and 

(II) any potential alternatives to the proposed 

public provider project, including any public-private partnerships. 

(B) 30-DAY PERIOD.—In order to provide local citizens 

and commercial enterprises with an adequate opportunity 

to be informed, a public provider shall provide additional 

notice requesting that any public comments on the proposed 

public provider project be filed not later than 30 days after 

the date of publication of the notice required under subparagraph (A). 

(4) APPROVAL PROCESS.—If a public provider decides to proceed with its own project to provide advanced telecommunications capability or any service that utilizes the advanced telecommunications capability provided by such public provider to 

the public despite bids by commercial enterprises received in accordance with paragraph (1)(B), such public provider shall authorize that project by whatever process typically would be utilized by such public provider to approve projects of comparable 

cost in the jurisdiction of such public provider. 

(5) APPLICATION TO EXISTING ARRANGEMENTS AND PENDING

PROPOSALS.—This subsection does not apply to—

(A) any contract or other arrangement under which a 

public provider is providing or upgrading advanced telecommunications capability or any service that utilizes the 

advanced telecommunications capability provided by such 

public provider to the public as of April 20, 2006; or 

(B) any public provider proposal to provide advanced 

communications capability or any service that utilizes the 

advanced telecommunications capability provided by such 

public provider to the public that, as of April 20, 2006—


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(i) is in the request-for-proposals process; 

(ii) is in the process of being built; or 

(iii) has been approved by referendum but is the subject of a lawsuit brought before March 1, 2006. 

(g) NO RECEIPT OF FEDERAL FUNDS.—If any project to provide 

advanced telecommunications capability or any service that utilizes 

the advanced telecommunications capability provided by a public 

provider under this section fails whether due to bankruptcy, insufficient funds, or any other reason, no Federal funds may be provided 

to such public provider to assist such public provider in maintaining, reviving, or renewing such project, except if such failure occurred in any jurisdiction that is subject to a declaration by the 

President of a major disaster, as defined under section 102 of the 

Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5122). 

(h) TEMPORARY SERVICES DURING STATES OF EMERGENCY.— Nothing in subsections (c) through (g) shall preclude a public provider from— (1) immediately deploying a temporary advanced telecommunications capability or any service that utilizes the advanced telecommunications capability provided by such public 

provider to the public during a state of emergency declared by 

the President or the Governor of the State in which such public 

provider is located; and 

(2) continuing the operation of such capability or service until 

the emergency situation is resolved. 

ø(c)¿ (i) DEFINITIONS.—For purposes of this subsection: 

(1) ADVANCED TELECOMMUNICATIONS CAPABILITY.—The term ‘‘advanced telecommunications capability’’ is defined, without 

regard to any transmission media or technology, as high-speed, 

switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, 

graphics, and video telecommunications using any technology. 

(2) ELEMENTARY AND SECONDARY SCHOOLS.—The term ‘‘elementary and secondary school’’ means elementary and secondary schools, as defined in section 9101 of the Elementary 

and Secondary Education Act of 1965. 

(3) PUBLIC PROVIDER.—The term ‘‘public provider’’ means— (A) a State or political subdivision thereof; 

(B) any agency, authority, or instrumentality of a State 

or political subdivision thereof; 

(C) an Indian tribe (as defined in section 4(e) of the Indian Self-Determination and Education Assistance Act (25 

U.S.C. 450b(e)); or 

(D) any entity that is owned, controlled, or otherwise affiliated with a State, political subdivision thereof, agency, 

authority, or instrumentality, or Indian tribe. 

TELECOMMUNICATIONS AUTHORIZATION ACT OF 1992 

øSEC. 213. TELEPHONE RATES FOR MEMBERS OF ARMED FORCES DEPLOYED ABROAD. 

[47 U.S.C. 201 note] 

ø(a) IN GENERAL.—The Federal Communications Commission 

shall make efforts to reduce telephone rates for Armed Forces perVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00097 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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sonnel in the following countries: Germany, Japan, Korea, Saudi 

Arabia, Great Britain, Italy, Philippines, Panama, Spain, Turkey, 

Iceland, the Netherlands, Greece, Cuba, Belgium, Portugal, Bermuda, Diego Garcia, Egypt, and Honduras. 

ø(b) FACTORS TO CONSIDER.—In making the efforts described in 

subsection (a), the Federal Communications Commission, in coordination with the Department of Defense, Department of State, and 

the National Telecommunications and Information Administration 

shall consider the cost to military personnel and their families of 

placing telephone calls by—

ø(1) evaluating and analyzing the costs to Armed Forces personnel of such telephone calls to and from American military 

bases abroad; 

ø(2) evaluate methods of reducing the rates imposed on such 

calls; 

ø(3) determine the extent to which it is feasible for the Federal Communications Commission to encourage the carriers to 

adopt flexible billing procedures and policies for members of 

the Armed Forces and their families for telephone calls to and 

from the countries listed in subsection (a); and 

ø(4) advise executive branch agencies of methods for the 

United States to persuade foreign governments to reduce the 

surcharges that are often placed on such telephone calls.¿ 

CHILDREN’S TELEVISION ACT OF 1990 

SEC. 102. STANDARDS FOR CHILDREN’S TELEVISION PROGRAMMING. 

[47 U.S.C. 303a] 

(a) ESTABLISHMENT.—The Commission shall, within 30 days after 

the date of enactment of this Act, initiate a rulemaking proceeding 

to prescribe standards applicable to commercial television broadcast licensees with respect to the time devoted to commercial matter in conjunction with children’s television programming. The 

Commission shall, within 180 days after the date of enactment of 

this Act, complete the rulemaking proceeding and prescribe final 

standards that meet the requirements of subsection (b). 

(b) ADVERTISING DURATION LIMITATIONS.—Except as provided in 

subsection (c), the standards prescribed under subsection (a) shall 

include the requirement that each commercial television broadcast 

licensee shall limit the duration of advertising in children’s television programming to not more than 10.5 minutes per hour on 

weekends and not more than 12 minutes per hour on weekdays. 

(c) REVIEW OF ADVERTISING DURATION LIMITATIONS; MODIFICATION.—After January 1, 1993, the Commission— (1) may review and evaluate the advertising duration limitations required by subsection (b); and 

(2) may, after notice and public comment and a demonstration of the need for modification of such limitations, modify 

such limitations in accordance with the public interest. 

(d) DEFINITION OF ‘‘COMMERCIAL TELEVISION BROADCAST LI- CENSEE’’.—As used in this section, the term ‘‘commercial television 

broadcast licensee’’ includes øa cable operator,¿ cable operators and 

video service providers, as defined in section 602 of the Communications Act of 1934 (47 U.S.C. 522). 


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DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY 

ACT OF 2005 

[47 U.S.C. 309 note] 

SEC. 3005. DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM. 

(a) CREATION OF PROGRAM.—The Assistant Secretary shall—

(1) implement and administer a program through which 

households in the United States may obtain coupons that can 

be applied toward the purchase of digital-to-analog converter 

boxes; and 

(2) make payments of not to exceed $990,000,000, in the aggregate, through fiscal year 2009 to carry out that program 

from the Digital Television Transition and Public Safety Fund 

established under section 309(j)(8)(E) of the Communications 

Act of 1934 (47 U.S.C. 309(j)(8)(E)). 

(b) CREDIT.—The Assistant Secretary may borrow from the 

Treasury beginning on October 1, 2006, such sums as may be necessary, but not to exceed $1,500,000,000, to implement this section. 

The Assistant Secretary shall reimburse the Treasury, without interest, as funds are deposited into the Digital Television Transition 

and Public Safety Fund. 

(c) PROGRAM SPECIFICATIONS.—

(1) Limitations.—

(A) TWO-PER-HOUSEHOLD MAXIMUM.—A household may 

obtain coupons by making a request as required by the 

regulations under this section between January 1, 2008, 

and March 31, 2009, inclusive. The Assistant Secretary 

shall ensure that each requesting household receives, via 

the United States Postal Service, no more than two coupons. 

(B) NO COMBINATIONS OF COUPONS.—Two coupons may 

not be used in combination toward the purchase of a single 

digital-to-analog converter box. 

(C) DURATION.—All coupons shall expire 3 months after 

issuance. 

(2) DISTRIBUTION OF COUPONS.—The Assistant Secretary 

shall expend not more than $100,000,000 on administrative expenses and shall ensure that the sum of—

(A) all administrative expenses for the program, including not more than $5,000,000 for consumer education concerning the digital television transition and the availability of the digital-to-analog converter box program; and 

(B) the total maximum value of all the coupons redeemed, and issued but not expired, does not exceed 

$990,000,000. 

(3) USE OF ADDITIONAL AMOUNT.—If the Assistant Secretary 

transmits to the Committee on Energy and Commerce of the 

House of Representatives and Committee on Commerce, 

Science, and Transportation of the Senate a statement certifying that the sum permitted to be expended under paragraph 

(2) will be insufficient to fulfill the requests for coupons from 

eligible households—

(A) paragraph (2) shall be applied—


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(i) by substituting ‘‘$160,000,000’’ for ‘‘$100,000,000’’; 

and 

(ii) by substituting ‘‘$1,500,000,000’’ for 

‘‘$990,000,000’’; 

(B) subsection (a)(2) shall be applied by substituting 

‘‘$1,500,000,000’’ for ‘‘$990,000,000’’; and 

(C) the additional amount permitted to be expended 

shall be available 60 days after the Assistant Secretary 

sends such statement. 

(4) COUPON VALUE.—The value of each coupon shall be $40. 

(d) DEFINITION OF DIGITAL-TO-ANALOG CONVERTER BOX.—For 

purposes of this section, the term ‘‘digital-to-analog converter box’’

means a stand-alone device that does not contain features or functions except those necessary to enable a consumer to convert any 

channel broadcast in the digital television service into a format 

that the consumer can display on television receivers designed to 

receive and display signals only in the analog television service, 

but may also include a clock, other incidental features, or a remote 

control device. 

SEC. 3006. PUBLIC SAFETY INTEROPERABLE COMMUNICATIONS. 

(a) CREATION OF PROGRAM.—øThe Assistant Secretary, in consultation with the¿ The Secretary of the Department of Homeland 

Security—

(1) may take such administrative action as is necessary to 

establish and implement a grant program to assist public safety agencies in the acquisition of, deployment of, or training for 

the use of interoperable communications systems that utilize, 

or enable interoperability with communications systems that 

can utilize, reallocated public safety spectrum for radio communication; and 

(2) shall make payments of not to exceed $1,000,000,000, in 

the aggregate, through fiscal year 2010 to carry out that program from the Digital Television Transition and Public Safety 

Fund established under section 309(j)(8)(E) of the Communications Act of 1934 (47 U.S.C. 309(j)(8)(E)). 

(b) CREDIT.—The øAssistant Secretary¿ Secretary of Homeland 

Security may borrow from the Treasury beginning on October 1, 

2006, such sums as may be necessary, but not to exceed 

$1,000,000,000, to implement this section. The øAssistant Secretary¿ Secretary of Homeland Security shall reimburse the Treasury, without interest, as funds are deposited into the Digital Television Transition and Public Safety Fund. 

(c) CONDITION OF GRANTS.—In order to obtain a grant under the 

grant program, a public safety agency shall agree to provide, from 

non-Federal sources, not less than 20 percent of the costs of acquiring and deploying the interoperable communications systems funded under the grant program. 

(d) INTEROPERABLE COMMUNICATIONS SYSTEM EQUIPMENT DEPLOYMENT.—

(1) IN GENERAL.—The Secretary of Homeland Security shall 

allocate at least 25 percent of the funds made available to carry 

out this section to make interoperable communications system 

equipment grants for equipment that can utilize, or enable 


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interoperability with systems or networks that can utilize, reallocated public safety spectrum. 

(2) ALLOCATION OF FUNDS.—The Secretary shall allocate—

(A) a majority of the amounts allocated under paragraph 

(1) for distribution to public safety agencies based on the 

threat and risk factors used by the Secretary for the purposes of allocating discretionary grants under the heading 

‘‘OFFICE FOR DOMESTIC PREPAREDNESS, STATE AND LOCAL

PROGRAMS’’ in the Department of Homeland Security Appropriations Act, 2006; and 

(B) the remainder equally to each State for distribution 

by the States to public safety agencies. 

(3) ELIGIBILITY.—A State may not receive funds allocated to 

it under paragraph (2) unless it has established a statewide 

interoperable communications plan approved by the Secretary. 

(4) USE OF FUNDS.—A public safety agency shall use any 

funds received under this subsection for the purchase of interoperable communications system equipment and infrastructure 

that is consistent with SAFECOM guidance, including any 

standards that may be referenced by SAFECOM guidance, and 

interoperable communications system equipment and infrastructure that improves interoperability that uses Internet protocol or any successor protocol. 

(e) COORDINATION, PLANNING, AND TRAINING GRANT INITIATIVE.—

(1) IN GENERAL.—The Secretary of Homeland Security shall 

allocate at least 25 percent of the funds made available to carry 

out this section for interoperable emergency communications coordination, planning, and training grants. The grants shall 

supplement, and be in addition to, any Federal funds otherwise 

made available by grant or otherwise to the States for emergency coordination, planning, or training. 

(2) ALLOCATION.—The Secretary shall allocate—

(A) a majority of the amounts allocated under paragraph 

(1) for distribution to the States based on the threat and 

risk factors used by the Secretary for the purposes of allocating discretionary grants under the heading ‘‘OFFICE FOR

DOMESTIC PREPAREDNESS, STATE AND LOCAL PROGRAMS’’

in the Department of Homeland Security Appropriations 

Act, 2006; and 

(B) the remainder equally to each State for distribution 

to public safety agencies. 

(3) COORDINATION, PLANNING, AND TRAINING GUIDELINES.—A 

State shall use its emergency communication coordination, 

planning, and training grant to establish a statewide plan consistent with the State communications interoperability planning 

methodology developed by the SAFECOM program within the 

Department of Homeland Security or a regional plan established by a regional planning agency consistent with this section and to establish training programs designed to ensure effective implementation of coordination and interoperability 

plans. In establishing the statewide plan, the Governor or the 

Governor’s designee shall consult with the Secretary of Homeland Security or the Secretary of Homeland Security’s designee. 


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A State shall submit its statewide plan to the Federal Communications Commission and the Secretary of Homeland Security. 

(4) MEDICAL SERVICES.—As part of its statewide plan, a State 

shall ensure that— (A) there are effective 2-way communications and information sharing between medical services and other emergency response entities, including communications among 

key strategic emergency responders, emergency medical care 

facilities, and Federal, State, and local authorities in the 

event of a national, regional, or other large-scale emergency, and redundancy in the event of a failure of the primary communications systems; and 

(B) medical emergency responses are integrated into all 

planning and decision-making practices for emergency response. 

(5) STATE-SPECIFIC COORDINATION, PLANNING, AND TRAINING.—Grants under this section shall be available for emergencies and disasters, such as hurricanes, forest fires, and mining accidents. 

(f) STRATEGIC TECHNOLOGY RESERVES INITIATIVE.—

(1) IN GENERAL.—The Secretary of Homeland Security shall 

allocate up to 25 percent of the funds made available to carry 

out this section to establish and implement a strategic technology reserve to pre-position or secure interoperable communications systems in advance for immediate deployment in an 

emergency or major disaster (as defined in section 102(2) of 

Public Law 93–288 (42 U.S.C. 5122)). In carrying out this paragraph, the Secretary shall take into consideration the continuing technological evolution of communications technologies 

and devices, with its implicit risk of obsolescence, and ensure 

that, to the maximum extent feasible, a substantial part of the 

reserve involves prenegotiated contracts and other arrangements 

for rapid deployment of equipment, supplies, and systems rather than the warehousing or storage of equipment and supplies 

currently available at the time the reserve is established. 

(2) REQUIREMENTS AND CHARACTERISTICS.—A reserve established under paragraph (1) shall— (A) be capable of re-establishing communications when 

existing infrastructure is damaged or destroyed in an emergency or a major disaster; 

(B) include appropriate current, widely-used equipment, 

such as Land Mobile Radio Systems, cellular telephones, 

satellite equipment, Cells-On-Wheels, Cells-On-LightTrucks, or other self-contained mobile cell sites that can be 

towed, backup batteries, generators, fuel, and computers; 

(C) include equipment on hand for the Governor of each 

State, key emergency response officials, and appropriate 

State or local personnel; 

(D) include contracts (including prenegotiated contracts) 

for rapid delivery of the most current technology available 

from commercial sources; and 

(E) include arrangements for training to ensure that personnel are familiar with the operation of the equipment 

and devices to be delivered pursuant to such contracts. 


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(3) ADDITIONAL CHARACTERISTICS.—Portions of the reserve 

may be virtual and may include items donated on an in-kind 

contribution basis. 

(4) CONSULTATION.—In developing the reserve, the Secretary 

shall seek advice from the Secretary of Defense, as well as national public safety organizations, emergency managers, State, 

local, and tribal governments, and commercial providers of 

such systems and equipment. 

(5) ALLOCATION AND USE OF FUNDS.—The Secretary shall allocate—

(A) a portion of the reserve’s funds for block grants to 

States to enable each State to establish a strategic technology reserve within its borders in a secure location to 

allow immediate deployment; and 

(B) a portion of the reserve’s funds for regional Federal 

strategic technology reserves to facilitate any Federal response when necessary, to be held in each of the Federal 

Emergency Management Agency’s regional offices, including Boston, Massachusetts (Region 1), New York, New York 

(Region 2), Philadelphia, Pennsylvania (Region 3), Atlanta, 

Georgia (Region 4), Chicago, Illinois (Region 5), Denton, 

Texas (Region 6), Kansas City, Missouri (Region 7), Denver, 

Colorado (Region 8), Oakland, California (Region 9), 

Bothell, Washington (Region 10), and each of the noncontiguous States for immediate deployment. 

(g) CONSENSUS STANDARDS; APPLICATIONS.— (1) CONSENSUS STANDARDS.—In carrying out this section, the 

Secretary of Homeland Security shall identify, and if necessary 

encourage the development and implementation of, consensus 

standards for interoperable communications systems to the 

greatest extent practicable. 

(2) APPLICATIONS.—To be eligible for assistance under the 

programs established in this section, each State shall submit an 

application, at such time, in such form, and containing such information as the Secretary may require, including— (A) a detailed explanation of how assistance received 

under the program would be used to improve local communications interoperability and ensure interoperability with 

other appropriate public safety agencies in an emergency or 

a major disaster; and 

(B) assurance that the equipment and system would— (i) be compatible with the communications architecture developed under section 7303(a)(1)(E) of the Intelligence Reform and Terrorism Prevention Act of 2004 

(6 U.S.C. 194(a)(1)(E)); 

(ii) meet any voluntary consensus standards developed under section 7303(a)(1)(D) of that Act (6 U.S.C. 

194(a)(1)(D); and 

(iii) be compatible with the common grant guidance 

established under section 7303(a)(1)(H) of that Act (6 

U.S.C. 194(a)(1)(H)). 

(h) DEADLINE FOR IMPLEMENTATION REGULATIONS.—Within 90 

days after the date of enactment of the Advanced Telecommunications and Opportunities Reform Act, the Secretary, in consultation 


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with the Federal Communications Commission, shall promulgate 

regulations for the implementation of subsections (d) through (f) of 

this section. 

ø(d)¿ (i) DEFINITIONS.—For purposes of this section: 

(1) PUBLIC SAFETY AGENCY.—The term ‘‘public safety agency’’

means any State, local, or tribal government entity, or nongovernmental organization authorized by such entity, whose 

sole or principal purpose is to protect the safety of life, health, 

or property. 

(2) INTEROPERABLE COMMUNICATIONS SYSTEMS.—The term 

‘‘interoperable communications systems’’ means communications systems which enable public safety agencies to share information amongst local, State, Federal, and tribal public safety agencies in the same area via voice or data signals. 

(3) REALLOCATED PUBLIC SAFETY SPECTRUM.—The term ‘‘reallocated public safety spectrum’’ means the bands of spectrum 

located at 764-776 megahertz and 794-806 megahertz, inclusive. 

NATIONAL TELECOMMUNICATIONS AND INFORMATION 

ADMINISTRATION ORGANIZATION ACT 

SEC. 158. COORDINATION OF E–911 IMPLEMENTATION. 

[47 U.S.C. 942] 

(a) E–911 IMPLEMENTATION COORDINATION OFFICE.—

(1) ESTABLISHMENT.—The Assistant Secretary and the Administrator of the National Highway Traffic Safety Administration shall—

(A) establish a joint program to facilitate coordination 

and communication between Federal, State, and local 

emergency communications systems, emergency personnel, 

public safety organizations, telecommunications carriers, 

and telecommunications equipment manufacturers and 

vendors involved in the implementation of E–911 øservices;¿ services and services related to the migration to an 

IP-enabled emergency network that provides E–911 services; and 

(B) create an E–911 Implementation Coordination Office 

to implement the provisions of this section. 

(2) MANAGEMENT PLAN.—The Assistant Secretary and the 

Administrator shall jointly develop a management plan for the 

program established under this section. Such plan shall include the organizational structure and funding profiles for the 

5-year duration of the program. The Assistant Secretary and 

the Administrator shall, within 90 days after the date of enactment of this Act, submit the management plan to the Committees on Energy and Commerce and Appropriations of the 

House of Representatives and the Committees on Commerce, 

Science, and Transportation and Appropriations of the Senate. 

(3) PURPOSE OF OFFICE.—The Office shall—

(A) take actions, in concert with coordinators designated 

in accordance with subsection (b)(3)(A)(ii), to improve such 

coordination and communication; 


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(B) develop, collect, and disseminate information concerning practices, procedures, and technology used in the 

implementation of E–911 services; 

(C) advise and assist eligible entities in the preparation 

of implementation plans required under subsection 

(b)(3)(A)(iii); 

(D) receive, review, and recommend the approval or disapproval of applications for grants under subsection (b); 

and 

(E) oversee the use of funds provided by such grants in 

fulfilling such implementation plans. 

(4) REPORTS.—The Assistant Secretary and the Administrator shall provide a joint annual report to Congress by the 

first day of October of each year on the activities of the Office 

to improve coordination and communication with respect to the 

implementation of E–911 services. 

(b) PHASE II E–911 IMPLEMENTATION GRANTS.—

(1) MATCHING GRANTS.—The Assistant Secretary and the Administrator, after consultation with the Secretary of Homeland 

Security and the Chairman of the Federal Communications 

Commission, and acting through the Office, shall provide 

grants to eligible entities for the implementation and operation 

of Phase II E–911 services. 

(2) MATCHING REQUIREMENT.—The Federal share of the cost 

of a project eligible for a grant under this section shall not exceed 50 percent. The non-Federal share of the cost shall be provided from non-Federal sources. 

(3) COORDINATION REQUIRED.—In providing grants under 

paragraph (1), the Assistant Secretary and the Administrator 

shall require an eligible entity to certify in its application 

that—(A) in the case of an eligible entity that is a State government, the entity— (i) has coordinated its application with the public 

safety answering points (as such term is defined in 

section 222(h)(4) of the Communications Act of 1934) 

located within the jurisdiction of such entity; 

(ii) has designated a single officer or governmental 

body of the entity to serve as the coordinator of implementation of E–911 services, except that such designation need not vest such coordinator with direct legal 

authority to implement E–911 services or manage 

emergency communications operations; 

(iii) has established a plan for the coordination and 

implementation of E–911 services; and 

(iv) has integrated telecommunications services involved in the implementation and delivery of phase II 

E–911 services; or 

(B) in the case of an eligible entity that is not a State, 

the entity has complied with clauses (i), (iii), and (iv) of 

subparagraph (A), and the State in which it is located has 

complied with clause (ii) of such subparagraph. 

(4) CRITERIA.—The Assistant Secretary and the Administrator shall jointly issue regulations within 180 days after the 


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date of enactment of the ENHANCE 911 Act of 2004, after a 

public comment period of not less than 60 days, prescribing the 

criteria for selection for grants under this section, and shall 

update such regulations as necessary. The criteria shall include performance requirements and a timeline for completion 

of any project to be financed by a grant under this section. 

(c) DIVERSION OF E–911 CHARGES.—

(1) DESIGNATED E–911 CHARGES.—For the purposes of this 

subsection, the term ‘‘designated E–911 charges’’ means any 

taxes, fees, or other charges imposed by a State or other taxing 

jurisdiction that are designated or presented as dedicated to 

deliver or improve E–911 services. 

(2) CERTIFICATION.—Each applicant for a matching grant 

under this section shall certify to the Assistant Secretary and 

the Administrator at the time of application, and each applicant that receives such a grant shall certify to the Assistant 

Secretary and the Administrator annually thereafter during 

any period of time during which the funds from the grant are 

available to the applicant, that no portion of any designated E–

911 charges imposed by a State or other taxing jurisdiction 

within which the applicant is located are being obligated or expended for any purpose other than the purposes for which such 

charges are designated or presented during the period beginning 180 days immediately preceding the date of the application and continuing through the period of time during which 

the funds from the grant are available to the applicant. 

(3) CONDITION OF GRANT.—Each applicant for a grant under 

this section shall agree, as a condition of receipt of the grant, 

that if the State or other taxing jurisdiction within which the 

applicant is located, during any period of time during which 

the funds from the grant are available to the applicant, obligates or expends designated E–911 charges for any purpose 

other than the purposes for which such charges are designated 

or presented, all of the funds from such grant shall be returned 

to the Office. 

(4) PENALTY FOR PROVIDING FALSE INFORMATION.—Any applicant that provides a certification under paragraph (1) knowing 

that the information provided in the certification was false 

shall—

(A) not be eligible to receive the grant under subsection 

(b); 

(B) return any grant awarded under subsection (b) during the time that the certification was not valid; and 

(C) not be eligible to receive any subsequent grants 

under subsection (b). 

(d) AUTHORIZATION; TERMINATION.—

(1) AUTHORIZATION.—There are authorized to be appropriated to the Department of Transportation, for the purposes 

of grants under the joint program operated under this section 

with the Department of Commerce, not more than 

$250,000,000 for each of the fiscal years 2005 through 2009, 

not more than 5 percent of which for any fiscal year may be 

obligated or expended for administrative costs. 


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(2) TERMINATION.—The provisions of this section shall cease 

to be effective on October 1, 2009. 

(e) DEFINITIONS.—As used in this section: 

(1) OFFICE.—The term ‘‘Office’’ means the E–911 Implementation Coordination Office. 

(2) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the National Highway Traffic Safety Administration. 

(3) ELIGIBLE ENTITY.— (A) IN GENERAL.—The term ‘‘eligible entity’’ means a 

State or local government or a tribal organization (as defined in section 4(l) of the Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 450b(l))). 

(B) INSTRUMENTALITIES.—Such term includes public authorities, boards, commissions, and similar bodies created 

by one or more eligible entities described in subparagraph 

(A) to provide E–911 services. 

(C) EXCEPTION.—Such term does not include any entity 

that has failed to submit the most recently required certification under subsection (c) within 30 days after the date 

on which such certification is due. 

(4) E–911 SERVICES.—The term ‘‘E–911 services’’ means both 

phase I and phase II enhanced 911 services, as described in 

section 20.18 of the Commission’s regulations (47 C.F.R. 20.18), 

as in effect on the date of enactment of the ENHANCE 911 Act 

of 2004, or as subsequently revised by the Federal Communications Commission. 

(5) PHASE II E–911 SERVICES.—The term ‘‘phase II E–911 

services’’ means only phase II enhanced 911 services, as described in such section 20.18 (47 C.F.R. 20.18), as in effect on 

such date, or as subsequently revised by the Federal Communications Commission. 

(6) STATE.—The term ‘‘State’’ means any State of the United 

States, the District of Columbia, Puerto Rico, the Northern 

Mariana Islands, and any territory or possession of the United 

States. 

COMMUNICATIONS ACT OF 1934 

TITLE I—GENERAL PROVISIONS 

* * * * * * * 

SEC. 5. COMMISSION. 

[47 U.S.C. 155] 

(a) CHAIRMAN; DUTIES; VACANCY.—The member of the Commission designated by the President as chairman shall be the chief executive officer of the Commission. It shall be his duty to preside at 

all meetings and sessions of the Commission, to represent the Commission in all matters relating to legislation and legislative reports, 

except that any commissioner may present his own or minority 

views or supplemental reports, to represent the Commission in all 

matters requiring conferences or communications with other governmental officers, departments or agencies, and generally to coordinate and organize the work of the Commission in such manner 


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as to promote prompt and efficient disposition of all matters within 

the jurisdiction of the Commission. In the case of a vacancy in the 

office of the chairman of the Commission, or the absence or inability of the chairman to serve, the Commission may temporarily designate one of its members to act as chairman until the cause or circumstance requiring such designation shall have been eliminated 

or corrected. 

(b) ORGANIZATION OF STAFF.—From time to time as the Commission may find necessary, the Commission shall organize its staff 

into (1) integrated bureaus, to function on the basis of the Commission’s principal workload operations, and (2) such other divisional 

organizations as the Commission may deem necessary. Each such 

integrated bureau shall include such legal, engineering, accounting, 

administrative, clerical, and other personnel as the Commission 

may determine to be necessary to perform its functions. 

(c) DELEGATION OF FUNCTIONS; EXCEPTIONS TO INITIAL ORDERS; 

FORCE, EFFECT AND ENFORCEMENT OF ORDERS; ADMINISTRATIVE

AND JUDICIAL REVIEW; QUALIFICATIONS AND COMPENSATION OF

DELEGATES; ASSIGNMENT OF CASES; SEPARATION OF REVIEW AND

INVESTIGATIVE OR PROSECUTING FUNCTIONS; SECRETARY; SEAL.—

(1) When necessary to the proper functioning of the Commission and the prompt and orderly conduct of its business, the 

Commission may, by published rule or by order, delegate any 

of its functions (except functions granted to the Commission by 

this paragraph and by paragraphs (4), (5), and (6) of this subsection and except any action referred to in sections 204(a)(2), 

208(b), and 405(b)) to a panel of commissioners, an individual 

commissioner, and employee board, or an individual employee, 

including functions with respect to hearing, determining, ordering, certifying, reporting, or otherwise acting as to any 

work, business, or matter; except that in delegating review 

functions to employees in cases of adjudication (as defined in 

the Administrative Procedure Act), the delegation in any such 

case may be made only to an employee board consisting of two 

or more employees referred to in paragraph (8). Any such rule 

or order may be adopted, amended, or rescinded only by a vote 

of a majority of the members of the Commission then holding 

office. Except for cases involving the authorization of service in 

the instructional television fixed service, or as otherwise provided in this Act, nothing in this paragraph shall authorize the 

Commission to provide for the conduct, by any person or persons other than persons referred to in paragraph (2) or (3) of 

section 556(b) of title 5, United States Code, of any hearing to 

which such section applies. 

(2) As used in this subsection (d) the term ‘‘order, decision, 

report, or action’’ does not include an initial, tentative, or recommended decision to which exceptions may be filed as provided in section 409(b). 

(3) Any order, decision, report, or action made or taken pursuant to any such delegation, unless reviewed as provided in 

paragraph (4), shall have the same force and effect, and shall 

be made, evidenced, and enforced in the same manner, as orders, decisions, reports, or other actions of the Commission. 


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(4) Any person aggrieved by any such order, decision, report 

or action may file an application for review by the Commission 

within such time and in such manner as the Commission shall 

prescribe, and every such application shall be passed upon by 

the Commission. The Commission, on its own initiative, may 

review in whole or in part, at such time and in such manner 

as it shall determine, any order, decision, report, or action 

made or taken pursuant to any delegation under paragraph 

(1). 

(5) In passing upon applications for review, the Commission 

may grant, in whole or in part, or deny such applications without specifying any reasons therefor. No such application for review shall rely on questions of fact or law upon which the 

panel of commissioners, individual commissioner, employee 

board, or individual employee has been afforded no opportunity 

to pass. 

(6) If the Commission grants the application for review, it 

may affirm, modify, or set aside the order, decision, report, or 

action, or it may order a rehearing upon such order, decision, 

report, or action in accordance with section 405. 

(7) The filing of an application for review under this subsection shall be a condition precedent to judicial review of any 

order, decision, report, or action made or taken pursuant to a 

delegation under paragraph (1). The time within which a petition for review must be filed in a proceeding to which section 

402(a) applies, or within which an appeal must be taken under 

section 402(b), shall be computed from the date upon which 

public notice is given of orders disposing of all applications for 

review filed in any case. 

(8) The employees to whom the Commission may delegate review functions in any case of adjudication (as defined in the 

Administrative Procedure Act) shall be qualified, by reason of 

their training, experience, and competence, to perform such review functions, and shall perform no duties inconsistent with 

such review functions. Such employees shall be in a grade classification or salary level commensurate with their important 

duties, and in no event less than the grade classification or salary level of the employee or employees whose actions are to be 

reviewed. In the performance of such review functions such 

employees shall be assigned to cases in rotation so far as practicable and shall not be responsible to or subject to the supervision or direction of any officer, employee, or agent engaged 

in the performance of investigative or prosecuting functions for 

any agency. 

(9) The secretary and seal of the Commission shall be the 

secretary and seal of each panel of the Commission, each individual commissioner, and each employee board or individual 

employee exercising functions delegated pursuant to paragraph 

(1) of this subsection. 

(d) MEETINGS.—Meetings of the Commission shall be held at regular intervals, not less frequently than once each calendar month, 

at which times the functioning of the Commission and the handling 

of its work load shall be reviewed and such orders shall be entered 

and other action taken as may be necessary or appropriate to expeVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00109 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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dite the prompt and orderly conduct of the business of the Commission with the objective of rendering a final decision (1) within three 

months from the date of filing in all original application, renewal, 

and transfer cases in which it will not be necessary to hold a hearing and (2) within six months from the final date of the hearing 

in all hearing cases. 

(e) MANAGING DIRECTOR; APPOINTMENT, FUNCTIONS, PAY.—The 

Commission shall have a Managing Director who shall be appointed by the Chairman subject to the approval of the Commission. The Managing Director, under the supervision and direction 

of the Chairman, shall perform such administrative and executive 

functions as the Chairman shall delegate. The Managing Director 

shall be paid at a rate equal to the rate then payable for level V 

of the Executive Schedule. 

(f) MEETINGS.—

(1) ATTENDANCE REQUIRED.—Notwithstanding 552b of title 5, 

United States Code, and section 4(h) of this Act, the Commission may conduct a meeting that is not open to the public if the 

meeting is attended by—

(A) all members of the Commission; or 

(B) at least 1 member of the political party whose members are in the minority. 

(2) VOTING PROHIBITED.—The Commission may not vote or 

make any final decision on any matter pending before it in a 

meeting that is not open to the public, unless— (A) otherwise authorized by section 552b(b) of title 5, 

United States Code; or 

(B) the Commission has moved its operations outside 

Washington, D.C., pursuant to a Continuity of Operations 

Plan. 

(3) PUBLICATION OF SUMMARY.—If the Commission conducts 

a meeting that is not open to the public under this section, the 

Commission shall promptly publish an executive summary describing the matters discussed at that meeting after the meeting 

ends, except for such matters as the Commission determines 

may be withheld under section 552b(c) of title 5, United States 

Code. This paragraph does not apply to a meeting described in 

paragraph (4). 

(4) QUORUM UNNECESSARY FOR CERTAIN MEETINGS.—Neither 

section 552b of title 5, United States Code, nor paragraph (1) 

of this subsection applies to— (A) a meeting of 3 or more members of the Commission 

with the President, any person employed by the Office of the 

President, any official of a Federal, State, or local agency, 

a Member of Congress or his staff; 

(B) the attendance, by 3 or more members of the Commission, at a forum or conference to discuss general communications issues; or 

(C) a meeting of 3 or more members of the Commission 

when the Continuity of Operations Plan is in effect and the 

Commission is operating under the terms of that Plan. 

(5) SAVINGS CLAUSE.—Nothing in this subsection shall be 

construed to prohibit the Commission from doing anything authorized by section 552b of title 5, United States Code. 


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SEC. 10. COMPETITION IN PROVISION OF TELECOMMUNICATIONS 

SERVICE. 

[47 U.S.C. 160] 

(a) REGULATORY FLEXIBILITY.—Notwithstanding section 

332(c)(1)(A) of this Act, the Commission shall forbear from applying 

any regulation or any provision of this Act to a telecommunications 

carrier or telecommunications service, or class of telecommunications carriers or telecommunications services, in any or some of 

its or their geographic markets, if the Commission determines 

that—

(1) enforcement of such regulation or provision is not necessary to ensure that the charges, practices, classifications, or 

regulations by, for, or in connection with that telecommunications carrier or telecommunications service are just and reasonable and are not unjustly or unreasonably discriminatory; 

(2) enforcement of such regulation or provision is not necessary for the protection of consumers; and 

(3) forbearance from applying such provision or regulation is 

consistent with the public interest. 

(b) COMPETITIVE EFFECT TO BE WEIGHED.—In making the determination under subsection (a)(3), the Commission shall consider 

whether forbearance from enforcing the provision or regulation will 

promote competitive market conditions, including the extent to 

which such forbearance will enhance competition among providers 

of telecommunications services. If the Commission determines that 

such forbearance will promote competition among providers of telecommunications services, that determination may be the basis for 

a Commission finding that forbearance is in the public interest. 

(c) PETITION FOR FORBEARANCE.—Any telecommunications carrier, or class of telecommunications carriers, may submit a petition 

to the Commission requesting that the Commission exercise the authority granted under this section with respect to that carrier or 

those carriers, or any service offered by that carrier or carriers. 

Any such petition shall be ødeemed granted¿ voted on by the Commission if the Commission does not deny the petition for failure to 

meet the requirements for forbearance under subsection (a) within 

one year after the Commission receives it, unless the one-year period is extended by the Commission. The Commission may extend 

the initial one-year period by an additional 90 days if the Commission finds that an extension is necessary to meet the requirements 

of subsection (a). The Commission may grant or deny a petition in 

whole or in part by majority vote and shall explain its decision in 

writing. 

(d) LIMITATION.—Except as provided in section 251(f), the Commission may not forbear from applying the requirements of section 

251(c) or 271 under subsection (a) of this section until it determines 

that those requirements have been fully implemented. 

(e) STATE ENFORCEMENT AFTER COMMISSION FORBEARANCE.—A 

State commission may not continue to apply or enforce any provision of this Act that the Commission has determined to forbear 

from applying under subsection (a). 


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TITLE II—COMMON CARRIERS 

PART I. COMMON CARRIER REGULATION 

* * * * * * * 

SEC. 214. EXTENSION OF LINES OR DISCONTINUANCE OF SERVICE; 

CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY. 

[47 U.S.C. 214] 

(a) EXCEPTIONS; TEMPORARY OR EMERGENCY SERVICE OR DIS- CONTINUANCE OF SERVICE; CHANGES IN PLANT, OPERATION OR

EQUIPMENT.—No carrier shall undertake the construction of a new 

line or of an extension of any line, or shall acquire or operate any 

line, or extension thereof, or shall engage in transmission over or 

by means of such additional or extended line, unless and until 

there shall first have been obtained from the Commission a certificate that the present or future public convenience and necessity require or will require the construction, or operation, or construction 

and operation, of such additional or extended line: Provided, That 

no such certificate shall be required under this section for the construction, acquisition, or operation of (1) a line within a single 

State unless such line constitutes part of an interstate line, (2) 

local, branch, or terminal lines not exceeding ten miles in length, 

or (3) any line acquired under section 221 of this Act: Provided further, That the Commission may, upon appropriate request being 

made, authorize temporary or emergency service, or the 

supplementing of existing facilities, without regard to the provisions of this section. No carrier shall discontinue, reduce, or impair 

service to a community, or part of a community, unless and until 

there shall first have been obtained from the Commission a certificate that neither the present nor future public convenience and necessity will be adversely affected thereby; except that the Commission may, upon appropriate request being made, authorize temporary or emergency discontinuance, reduction, or impairment of 

service, or partial discontinuance, reduction, or impairment of service, without regard to the provisions of this section. As used in this 

section the term ‘‘line’’ means any channel of communication established by the use of appropriate equipment, other than a channel 

of communication established by the interconnection of two or more 

existing channels: Provided, however, That nothing in this section 

shall be construed to require a certificate or other authorization 

from the Commission for any installation, replacement, or other 

changes in plant, operation, or equipment, other than new construction, which will not impair the adequacy or quality of service 

provided. 

(b) NOTIFICATION OF SECRETARY OF DEFENSE, SECRETARY OF

STATE, AND STATE GOVERNOR.—Upon receipt of an application for 

any such certificate, the Commission shall cause notice thereof to 

be given to, and shall cause a copy of such application to be filed 

with, the Secretary of Defense, the Secretary of State (with respect 

to such applications involving service to foreign points), and the 

Governor of each State in which such line is proposed to be constructed, extended, acquired, or operated, or in which such discontinuance, reduction, or impairment of service is proposed, with 


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the right to those notified to be heard; and the Commission may 

require such published notice as it shall determine. 

(c) APPROVAL OR DISAPPROVAL; INJUNCTION.—The Commission 

shall have power to issue such certificate as applied for, or to 

refuse to issue it, or to issue it for a portion or portions of a line, 

or extension thereof, or discontinuance, reduction, or impairment of 

service, described in the application, or for the partial exercise only 

of such right or privilege, and may attach to the issuance of the 

certificate such terms and conditions as in its judgment the public 

convenience and necessity may require. After issuance of such certificate, and not before, the carrier may, without securing approval 

other than such certificate, comply with the terms and conditions 

contained in or attached to the issuance of such certificate and proceed with the construction, extension, acquisition, operation, or discontinuance, reduction, or impairment of service covered thereby. 

Any construction, extension, acquisition, operation, discontinuance, 

reduction, or impairment of service contrary to the provisions of 

this section may be enjoined by any court of competent jurisdiction 

at the suit of the United States, the Commission, the State commission, any State affected, or any party in interest. 

(d) ORDER OF COMMISSION; HEARING; PENALTY.—The Commission may, after full opportunity for hearing, in a proceeding upon 

complaint or upon its own initiative without complaint, authorize 

or require by order any carrier, party to such proceeding, to provide 

itself with adequate facilities for the expeditious and efficient performance of its service as a common carrier and to extend its line 

or to establish a public office; but no such authorization or order 

shall be made unless the Commission finds, as to such provision of 

facilities, as to such establishment of public offices, or as to such 

extension, that it is reasonably required in the interest of public 

convenience and necessity, or as to such extension or facilities that 

the expense involved therein will not impair the ability of the carrier to perform its duty to the public. Any carrier which refuses or 

neglects to comply with any order of the Commission made in pursuance of this paragraph shall forfeit to the United States $1,200 

for each day during which such refusal or neglect continues. 

(e) PROVISION OF UNIVERSAL SERVICE.— (1) ELIGIBLE TELECOMMUNICATIONS CARRIERS.—A common 

carrier designated as an eligible telecommunications carrier 

under paragraph (2), (3), or (6) shall be eligible to receive universal service support in accordance with section 254 and shall, 

throughout the service area for which the designation is received—

(A) offer the services that are supported by Federal universal service support mechanisms under section 254(c), either using its own facilities or a combination of its own facilities and resale of another carrier’s services (including 

the services offered by another eligible telecommunications 

carrier); and 

(B) advertise the availability of such services and the 

charges therefor using media of general distribution. 

(2) DESIGNATION OF ELIGIBLE TELECOMMUNICATIONS CAR- RIERS.—A State commission shall upon its own motion or upon 

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ments of paragraph (1) as an eligible telecommunications carrier for a service area designated by the State commission. 

Upon request and consistent with the public interest, convenience, and necessity, the State commission may, in the case of 

an area served by a rural telephone company, and shall, in the 

case of all other areas, designate more than one common carrier as an eligible telecommunications carrier for a service area 

designated by the State commission, so long as each additional 

requesting carrier meets the requirements of paragraph (1). 

Before designating an additional eligible telecommunications 

carrier for an area served by a rural telephone company, the 

State commission shall find that the designation is in the public interest. 

(3) DESIGNATION OF ELIGIBLE TELECOMMUNICATIONS CARRIERS FOR UNSERVED AREAS.—If no common carrier will provide 

the services that are supported by Federal universal service 

support mechanisms under section 254(c) to an unserved community or any portion thereof that requests such service, the 

Commission, with respect to interstate services or an area 

served by a common carrier to which paragraph (6) applies, or 

a State commission, with respect to intrastate services, shall 

determine which common carrier or carriers are best able to 

provide such service to the requesting unserved community or 

portion thereof and shall order such carrier or carriers to provide such service for that unserved community or portion 

thereof. Any carrier or carriers ordered to provide such service 

under this paragraph shall meet the requirements of paragraph (1) and shall be designated as an eligible telecommunications carrier for that community or portion thereof. 

(4) RELINQUISHMENT OF UNIVERSAL SERVICE.—A State commission (or the Commission in the case of a common carrier 

designated under paragraph (6)) shall permit an eligible telecommunications carrier to relinquish its designation as such a 

carrier in any area served by more than one eligible telecommunications carrier. An eligible telecommunications carrier 

that seeks to relinquish its eligible telecommunications carrier 

designation for an area served by more than one eligible telecommunications carrier shall give advance notice to the State 

commission (or the Commission in the case of a common carrier designated under paragraph (6)) of such relinquishment. 

Prior to permitting a telecommunications carrier designated as 

an eligible telecommunications carrier to cease providing universal service in an area served by more than one eligible telecommunications carrier, the State commission (or the Commission in the case of a common carrier designated under paragraph (6)) shall require the remaining eligible telecommunications carrier or carriers to ensure that all customers served 

by the relinquishing carrier will continue to be served, and 

shall require sufficient notice to permit the purchase or construction of adequate facilities by any remaining eligible telecommunications carrier. The State commission (or the Commission in the case of a common carrier designated under paragraph (6)) shall establish a time, not to exceed one year after 

the State commission (or the Commission in the case of a comVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00114 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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mon carrier designated under paragraph (6)) approves such relinquishment under this paragraph, within which such purchase or construction shall be completed. 

(5) SERVICE AREA DEFINED.—The term ‘‘service area’’ means 

a geographic area established by a State commission (or the 

Commission under paragraph (6)) for the purpose of determining universal service obligations and support mechanisms. 

In the case of an area served by a rural telephone company, 

‘‘service area’’ means such company’s ‘‘study area’’ unless and 

until the Commission and the States, after taking into account 

recommendations of a Federal-State Joint Board instituted 

under section 410(c), establish a different definition of service 

area for such company. 

(6) COMMON CARRIERS NOT SUBJECT TO STATE COMMISSION

JURISDICTION.—In the case of a common carrier providing telephone exchange service and exchange access that is not subject 

to the jurisdiction of a State commission, the Commission shall 

upon request designate such a common carrier that meets the 

requirements of paragraph (1) as an eligible telecommunications carrier for a service area designated by the Commission 

consistent with applicable Federal and State law. Upon request 

and consistent with the public interest, convenience and necessity, the Commission may, with respect to an area served by 

a rural telephone company, and shall, in the case of all other 

areas, designate more than one common carrier as an eligible 

telecommunications carrier for a service area designated under 

this paragraph, so long as each additional requesting carrier 

meets the requirements of paragraph (1). Before designating 

an additional eligible telecommunications carrier for an area 

served by a rural telephone company, the Commission shall 

find that the designation is in the public interest. 

(7) ELIGIBILITY GUIDELINES.—

(A) IN GENERAL.—A common carrier may not be designated as a new eligible communications carrier unless 

it—

(i) is committed to providing service throughout its 

proposed designated service area, using its own facilities or a combination of facilities and resale of another 

carrier’s facilities, to all customers making a reasonable request for service; 

(ii) has certified to the State commission or the Commission that it will provide service on a timely basis to 

requesting customers within its service area, if service 

can be provided at reasonable cost; 

(iii) has submitted a plan to the State commission or 

the Commission that describes with specificity proposed 

improvements or upgrades to its network that will be 

accomplished with high-cost support over the first 2 

years following its designation as an eligible communications carrier; 

(iv) has demonstrated to the State commission or the 

Commission its ability to remain functional in emergency situations, including a demonstration that it has 


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a reasonable amount of back-up power to ensure 

functionality without an external power source; 

(v) is committed to following applicable consumer 

protection and service quality standards; and 

(vi) has complied with annual reporting requirements established by the Commission or by State Commissions for all carriers receiving universal service 

support to ensure that such support is used for the provision, maintenance, and upgrading of the facilities for 

which support is intended. 

(B) APPLICATION LIMITED TO POST DATE-OF-ENACTMENT

DESIGNATIONS.—Subparagraph (A) applies only to an entity 

designated as an eligible communications carrier after the 

date of enactment of the Internet and Universal Service Act 

of 2006. 

(C) 6-MONTH DESIGNATION DEADLINE.—Beginning 6 

months after the date of enactment of the Internet and Universal Service Act of 2006, a State commission or the Commission shall grant or deny an application for designation 

as an eligible communications carrier within 6 months 

after the date on which it receives a complete application. 

(D) ELIGIBLE COMMUNICATIONS CARRIER.—In this paragraph, the term ‘‘eligible communications carrier’’ means an 

entity designated under paragraph (2), (3), or (6) of this 

subsection. Any reference to eligible telecommunications 

carrier in this section or in section 254 refers also to an eligible communications carrier. 

(8) PRIMARY LINE.—In implementing the requirements of this 

Act with respect to the distribution and use of Federal universal 

service support, the Commission shall not limit such distribution and use to a single connection or primary line, and all residential and business lines served by an eligible communications 

carrier shall be eligible for Federal universal service support. 

* * * * * * * 

SEC. 227. RESTRICTIONS ON USE OF TELEPHONE EQUIPMENT. 

[47 U.S.C. 227] 

(a) DEFINITIONS.—As used in this section—

(1) The term ‘‘automatic telephone dialing system’’ means 

equipment which has the capacity—

(A) to store or produce telephone numbers to be called, 

using a random or sequential number generator; and 

(B) to dial such numbers. 

(2) The term ‘‘established business relationship’’, for purposes only of subsection (b)(1)(C)(i), shall have the meaning 

given the term in section 64.1200 of title 47, Code of Federal 

Regulations, as in effect on January 1, 2003, except that—

(A) such term shall include a relationship between a person or entity and a business subscriber subject to the same 

terms applicable under such section to a relationship between a person or entity and a residential subscriber; and 

(B) an established business relationship shall be subject 

to any time limitation established pursuant to paragraph 

(2)(G). 


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(3) The term ‘‘telephone facsimile machine’’ means equipment which has the capacity (A) to transcribe text or images, 

or both, from paper into an electronic signal and to transmit 

that signal over a regular telephone line, or (B) to transcribe 

text or images (or both) from an electronic signal received over 

a regular telephone line onto paper. 

(4) The term ‘‘telephone solicitation’’ means the initiation of 

a telephone call or message for the purpose of encouraging the 

purchase or rental of, or investment in, property, goods, or 

services, which is transmitted to any person, but such term 

does not include a call or message (A) to any person with that 

person’s prior express invitation or permission, (B) to any person with whom the caller has an established business relationship, or (C) by a tax exempt nonprofit organization. 

(5) The term ‘‘unsolicited advertisement’’ means any material 

advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person 

without that person’s prior express invitation or permission, in 

writing or otherwise. 

(b) RESTRICTIONS ON USE OF AUTOMATED TELEPHONE EQUIPMENT.—

(1) PROHIBITIONS.—It shall be unlawful for any person within the United States, or any person outside the United States 

if the recipient is within the United States—

(A) to make any call (other than a call made for emergency purposes or made with the prior express consent of 

the called party) using any automatic telephone dialing 

system or an artificial or prerecorded voice—

(i) to any emergency telephone line (including any 

‘‘911’’ line and any emergency line of a hospital, medical physician or service office, health care facility, poison control center, or fire protection or law enforcement agency); 

(ii) to the telephone line of any guest room or patient room of a hospital, health care facility, elderly 

home, or similar establishment; or 

(iii) to any telephone number assigned to a paging 

service, cellular telephone service, specialized mobile 

radio service, or other radio common carrier service, or 

any service for which the called party is charged for 

the call; 

(B) to initiate any telephone call to any residential telephone line using an artificial or prerecorded voice to deliver a message without the prior express consent of the 

called party, unless the call is initiated for emergency purposes or is exempted by rule or order by the Commission 

under paragraph (2)(B); 

(C) to use any telephone facsimile machine, computer, or 

other device to send, to a telephone facsimile machine, an 

unsolicited advertisement, unless—

(i) the unsolicited advertisement is from a sender 

with an established business relationship with the recipient; 


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(ii) the sender obtained the number of the telephone 

facsimile machine through—

(I) the voluntary communication of such number, within the context of such established business relationship, from the recipient of the unsolicited advertisement, or 

(II) a directory, advertisement, or site on the 

Internet to which the recipient voluntarily agreed 

to make available its facsimile number for public 

distribution,except that this clause shall not apply 

in the case of an unsolicited advertisement that is 

sent based on an established business relationship 

with the recipient that was in existence before the 

date of enactment of the Junk Fax Prevention Act 

of 2005 if the sender possessed the facsimile machine number of the recipient before such date of 

enactment; and 

(iii) the unsolicited advertisement contains a notice 

meeting the requirements under paragraph (2)(D), 

except that the exception under clauses (i) and (ii) 

shall not apply with respect to an unsolicited advertisement sent to a telephone facsimile machine by a 

sender to whom a request has been made not to send 

future unsolicited advertisements to such telephone 

facsimile machine that complies with the requirements 

under paragraph (2)(E); or 

(D) to use an automatic telephone dialing system in such 

a way that two or more telephone lines of a multi-line 

business are engaged simultaneously. 

(2) REGULATIONS; EXEMPTIONS AND OTHER PROVISIONS.—The 

Commission shall prescribe regulations to implement the requirements of this subsection. In implementing the requirements of this subsection, the Commission—

(A) shall consider prescribing regulations to allow businesses to avoid receiving calls made using an artificial or 

prerecorded voice to which they have not given their prior 

express consent; 

(B) may, by rule or order, exempt from the requirements 

of paragraph (1)(B) of this subsection, subject to such conditions as the Commission may prescribe—

(i) calls that are not made for a commercial purpose; 

and 

(ii) such classes or categories of calls made for commercial purposes as the Commission determines—

(I) will not adversely affect the privacy rights 

that this section is intended to protect; and 

(II) do not include the transmission of any unsolicited advertisement; 

(C) may, by rule or order, exempt from the requirements 

of paragraph (1)(A)(iii) of this subsection calls to a telephone number assigned to a cellular telephone service that 

are not charged to the called party, subject to such conditions as the Commission may prescribe as necessary in the 


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interest of the privacy rights this section is intended to 

protect; 

(D) shall provide that a notice contained in an unsolicited advertisement complies with the requirements under 

this subparagraph only if— (i) the notice is clear and conspicuous and on the 

first page of the unsolicited advertisement; 

(ii) the notice states that the recipient may make a 

request to the sender of the unsolicited advertisement 

not to send any future unsolicited advertisements to a 

telephone facsimile machine or machines and that failure to comply, within the shortest reasonable time, as 

determined by the Commission, with such a request 

meeting the requirements under subparagraph (E) is 

unlawful; 

(iii) the notice sets forth the requirements for a request under subparagraph (E); 

(iv) the notice includes— (I) a domestic contact telephone and facsimile 

machine number for the recipient to transmit such 

a request to the sender; and 

(II) a cost-free mechanism for a recipient to 

transmit a request pursuant to such notice to the 

sender of the unsolicited advertisement; the Commission shall by rule require the sender to provide 

such a mechanism and may, in the discretion of 

the Commission and subject to such conditions as 

the Commission may prescribe, exempt certain 

classes of small business senders, but only if the 

Commission determines that the costs to such 

class are unduly burdensome given the revenues 

generated by such small businesses; 

(v) the telephone and facsimile machine numbers 

and the cost-free mechanism set forth pursuant to 

clause (iv) permit an individual or business to make 

such a request at any time on any day of the week; 

and 

(vi) the notice complies with the requirements of 

subsection (d); 

(E) shall provide, by rule, that a request not to send future unsolicited advertisements to a telephone facsimile 

machine complies with the requirements under this subparagraph only if—

(i) the request identifies the telephone number or 

numbers of the telephone facsimile machine or machines to which the request relates; 

(ii) the request is made to the telephone or facsimile 

number of the sender of such an unsolicited advertisement provided pursuant to subparagraph (D)(iv) or by 

any other method of communication as determined by 

the Commission; and 

(iii) the person making the request has not, subsequent to such request, provided express invitation or 

permission to the sender, in writing or otherwise, to 


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send such advertisements to such person at such telephone facsimile machine; 

(F) may, in the discretion of the Commission and subject 

to such conditions as the Commission may prescribe, allow 

professional or trade associations that are tax-exempt nonprofit organizations to send unsolicited advertisements to 

their members in furtherance of the association’s tax-exempt purpose that do not contain the notice required by 

paragraph (1)(C)(iii), except that the Commission may take 

action under this subparagraph only—

(i) by regulation issued after public notice and opportunity for public comment; and 

(ii) if the Commission determines that such notice 

required by paragraph (1)(C)(iii) is not necessary to 

protect the ability of the members of such associations 

to stop such associations from sending any future unsolicited advertisements; and 

(G)(i) may, consistent with clause (ii), limit the duration 

of the existence of an established business relationship, 

however, before establishing any such limits, the Commission shall—

(I) determine whether the existence of the exception under paragraph (1)(C) relating to an established business relationship has resulted in a 

significant number of complaints to the Commission regarding the sending of unsolicited advertisements to telephone facsimile machines; 

(II) determine whether a significant number of 

any such complaints involve unsolicited advertisements that were sent on the basis of an established business relationship that was longer in duration than the Commission believes is consistent 

with the reasonable expectations of consumers; 

(III) evaluate the costs to senders of demonstrating the existence of an established business 

relationship within a specified period of time and 

the benefits to recipients of establishing a limitation on such established business relationship; 

and 

(IV) determine whether with respect to small 

businesses, the costs would not be unduly burdensome; and 

(ii) may not commence a proceeding to determine 

whether to limit the duration of the existence of an established business relationship before the expiration of 

the 3-month period that begins on the date of the enactment of the Junk Fax Prevention Act of 2005. 

(3) PRIVATE RIGHT OF ACTION.—A person or entity may, if 

otherwise permitted by the laws or rules of court of a State, 

bring in an appropriate court of that State—

(A) an action based on a violation of this subsection or 

the regulations prescribed under this subsection to enjoin 

such violation, 


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(B) an action to recover for actual monetary loss from such a violation, or to receive $500 in damages for each 

such violation, whichever is greater, or 

(C) both such actions. 

If the court finds that the defendant willfully or knowingly violated this subsection or the regulations prescribed under this 

subsection, the court may, in its discretion, increase the 

amount of the award to an amount equal to not more than 3 

times the amount available under subparagraph (B) of this 

paragraph. 

(c) PROTECTION OF SUBSCRIBER PRIVACY RIGHTS.— (1) RULEMAKING PROCEEDING REQUIRED.—Within 120 days 

after the date of enactment of this section, the Commission 

shall initiate a rulemaking proceeding concerning the need to 

protect residential telephone subscribers’ privacy rights to 

avoid receiving telephone solicitations to which they object. 

The proceeding shall—

(A) compare and evaluate alternative methods and procedures (including the use of electronic databases, telephone network technologies, special directory markings, 

industry-based or company-specific ’do not call’ systems, 

and any other alternatives, individually or in combination) 

for their effectiveness in protecting such privacy rights, 

and in terms of their cost and other advantages and disadvantages; 

(B) evaluate the categories of public and private entities 

that would have the capacity to establish and administer 

such methods and procedures; 

(C) consider whether different methods and procedures 

may apply for local telephone solicitations, such as local 

telephone solicitations of small businesses or holders of 

second class mail permits; 

(D) consider whether there is a need for additional Commission authority to further restrict telephone solicitations, including those calls exempted under subsection 

(a)(3) of this section, and, if such a finding is made and 

supported by the record, propose specific restrictions to the 

Congress; and 

(E) develop proposed regulations to implement the methods and procedures that the Commission determines are 

most effective and efficient to accomplish the purposes of 

this section. 

(2) REGULATIONS.—Not later than 9 months after the date of 

enactment of this section, the Commission shall conclude the 

rulemaking proceeding initiated under paragraph (1) and shall 

prescribe regulations to implement methods and procedures for 

protecting the privacy rights described in such paragraph in an 

efficient, effective, and economic manner and without the imposition of any additional charge to telephone subscribers. 

(3) USE OF DATABASE PERMITTED.—The regulations required 

by paragraph (2) may require the establishment and operation 

of a single national database to compile a list of telephone 

numbers of residential subscribers who object to receiving telephone solicitations, and to make that compiled list and parts 


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thereof available for purchase. If the Commission determines 

to require such a database, such regulations shall—

(A) specify a method by which the Commission will select an entity to administer such database; 

(B) require each common carrier providing telephone exchange service, in accordance with regulations prescribed 

by the Commission, to inform subscribers for telephone exchange service of the opportunity to provide notification, in 

accordance with regulations established under this paragraph, that such subscriber objects to receiving telephone 

solicitations; 

(C) specify the methods by which each telephone subscriber shall be informed, by the common carrier that provides local exchange service to that subscriber, of (i) the 

subscriber’s right to give or revoke a notification of an objection under subparagraph (A), and (ii) the methods by 

which such right may be exercised by the subscriber; 

(D) specify the methods by which such objections shall 

be collected and added to the database; 

(E) prohibit any residential subscriber from being 

charged for giving or revoking such notification or for 

being included in a database compiled under this section; 

(F) prohibit any person from making or transmitting a 

telephone solicitation to the telephone number of any subscriber included in such database; 

(G) specify (i) the methods by which any person desiring 

to make or transmit telephone solicitations will obtain access to the database, by area code or local exchange prefix, 

as required to avoid calling the telephone numbers of subscribers included in such database; and (ii) the costs to be 

recovered from such persons; 

(H) specify the methods for recovering, from persons accessing such database, the costs involved in identifying, 

collecting, updating, disseminating, and selling, and other 

activities relating to, the operations of the database that 

are incurred by the entities carrying out those activities; 

(I) specify the frequency with which such database will 

be updated and specify the method by which such updating will take effect for purposes of compliance with the 

regulations prescribed under this subsection; 

(J) be designed to enable States to use the database 

mechanism selected by the Commission for purposes of administering or enforcing State law; 

(K) prohibit the use of such database for any purpose 

other than compliance with the requirements of this section and any such State law and specify methods for protection of the privacy rights of persons whose numbers are 

included in such database; and 

(L) require each common carrier providing services to 

any person for the purpose of making telephone solicitations to notify such person of the requirements of this section and the regulations thereunder. 


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(4) CONSIDERATIONS REQUIRED FOR USE OF DATABASE METH- OD.—If the Commission determines to require the database 

mechanism described in paragraph (3), the Commission shall— (A) in developing procedures for gaining access to the 

database, consider the different needs of telemarketers 

conducting business on a national, regional, State, or local 

level; 

(B) develop a fee schedule or price structure for recouping the cost of such database that recognizes such differences and— (i) reflect the relative costs of providing a national, 

regional, State, or local list of phone numbers of subscribers who object to receiving telephone solicitations; 

(ii) reflect the relative costs of providing such lists 

on paper or electronic media; and 

(iii) not place an unreasonable financial burden on 

small businesses; and 

(C) consider (i) whether the needs of telemarketers operating on a local basis could be met through special markings of area white pages directories, and (ii) if such directories are needed as an adjunct to database lists prepared 

by area code and local exchange prefix. 

(5) PRIVATE RIGHT OF ACTION.—A person who has received 

more than one telephone call within any 12-month period by 

or on behalf of the same entity in violation of the regulations 

prescribed under this subsection may, if otherwise permitted 

by the laws or rules of court of a State bring in an appropriate 

court of that State— (A) an action based on a violation of the regulations prescribed under this subsection to enjoin such violation, 

(B) an action to recover for actual monetary loss from such a violation, or to receive up to $500 in damages for 

each such violation, whichever is greater, or 

(C) both such actions.It shall be an affirmative defense 

in any action brought under this paragraph that the defendant has established and implemented, with due care, 

reasonable practices and procedures to effectively prevent 

telephone solicitations in violation of the regulations prescribed under this subsection. If the court finds that the 

defendant willfully or knowingly violated the regulations 

prescribed under this subsection, the court may, in its discretion, increase the amount of the award to an amount 

equal to not more than 3 times the amount available 

under subparagraph (B) of this paragraph. 

(6) RELATION TO SUBSECTION (b).—The provisions of this subsection shall not be construed to permit a communication prohibited by subsection (b). 

(d) TECHNICAL AND PROCEDURAL STANDARDS.—

(1) PROHIBITION.—It shall be unlawful for any person within 

the United States— (A) to initiate any communication using a telephone facsimile machine, or to make any telephone call using any 

automatic telephone dialing system, that does not comply 

with the technical and procedural standards prescribed 


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under this subsection, or to use any telephone facsimile 

machine or automatic telephone dialing system in a manner that does not comply with such standards; or 

(B) to use a computer or other electronic device to send 

any message via a telephone facsimile machine unless 

such person clearly marks, in a margin at the top or bottom of each transmitted page of the message or on the first 

page of the transmission, the date and time it is sent and 

an identification of the business, other entity, or individual 

sending the message and the telephone number of the 

sending machine or of such business, other entity, or individual. 

(2) TELEPHONE FACSIMILE MACHINES.—The Commission shall 

revise the regulations setting technical and procedural standards for telephone facsimile machines to require that any such 

machine which is manufactured after one year after the date 

of enactment of this section clearly marks, in a margin at the 

top or bottom of each transmitted page or on the first page of 

each transmission, the date and time sent, an identification of 

the business, other entity, or individual sending the message, 

and the telephone number of the sending machine or of such 

business, other entity, or individual. 

(3) ARTIFICIAL OR PRERECORDED VOICE SYSTEMS.—The Commission shall prescribe technical and procedural standards for 

systems that are used to transmit any artificial or prerecorded 

voice message via telephone. Such standards shall require 

that—(A) all artificial or prerecorded telephone messages (i) 

shall, at the beginning of the message, state clearly the 

identity of the business, individual, or other entity initiating the call, and (ii) shall, during or after the message, 

state clearly the telephone number or address of such business, other entity, or individual; and 

(B) any such system will automatically release the called 

party’s line within 5 seconds of the time notification is 

transmitted to the system that the called party has hung 

up, to allow the called party’s line to be used to make or 

receive other calls. 

(e) PROHIBITION ON PROVISION OF INACCURATE CALLER IDENTI- FICATION INFORMATION.—

(1) IN GENERAL.—It shall be unlawful for any person within 

the United States, in connection with any telecommunications 

service or IP-enabled voice service, to cause any caller identification service to transmit misleading or inaccurate caller 

identification information, unless such transmission is exempted pursuant to paragraph (3)(B). 

(2) PROTECTION FOR BLOCKING CALLER IDENTIFICATION IN- FORMATION.—Nothing in this subsection may be construed to 

prevent or restrict any person from blocking the capability of 

any caller identification service to transmit caller identification 

information. 

(3) REGULATIONS.— (A) IN GENERAL.—Not later than 6 months after the enactment of the Truth in Caller ID Act of 2006, the CommisVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00124 Fmt 6604 Sfmt 6603 E:\HR\OC\SR355.XXX SR355

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sion shall prescribe regulations to implement this subsection. 

(B) CONTENT OF REGULATIONS.— (i) IN GENERAL.—The regulations required under 

subparagraph (A) shall include such exemptions from 

the prohibition under paragraph (1) as the Commission 

determines appropriate. 

(ii) SPECIFIC EXEMPTION FOR LAW ENFORCEMENT

AGENCIES, NATIONAL SECURITY ACTIVITIES, OR COURT

ORDERS.—The regulations required under subparagraph (A) shall exempt from the prohibition under 

paragraph (1) transmissions in connection with— (I) any authorized law enforcement or national 

security activity of an agency of the United States, 

a State, or a political subdivision of a State; or 

(II) a court order that specifically authorizes the 

use of caller identification manipulation. 

(4) REPORT.—Not later than 6 months after the enactment of 

the Truth in Caller ID Act of 2006, the Commission shall report 

to Congress whether additional legislation is necessary to prohibit the provision of inaccurate caller identification information in technologies that are successor or replacement technologies to telecommunications service or IP-enabled voice service. 

(5) PENALTIES.— (A) CIVIL FORFEITURE.— (i) IN GENERAL.—Any person that is determined by 

the Commission, in accordance with paragraphs (3) 

and (4) of section 503(b), to have violated this subsection shall be liable to the United States for a forfeiture penalty. A forfeiture penalty under this paragraph shall be in addition to any other penalty provided for by this Act. The amount of the forfeiture penalty determined under this paragraph shall not exceed 

$10,000 for each violation, or 3 times that amount for 

each day of a continuing violation, except that the 

amount assessed for any continuing violation shall not 

exceed a total of $1,000,000 for any single act or failure 

to act. 

(ii) RECOVERY.—Any forfeiture penalty determined 

under clause (i) shall be recoverable pursuant to section 504(a). 

(iii) PROCEDURE.—No forfeiture liability shall be determined under clause (i) against any person unless 

such person receives the notice required by section 

503(b)(3) or section 503(b)(4). 

(iv) 2-YEAR STATUTE OF LIMITATIONS.—No forfeiture 

penalty shall be determined or imposed against any 

person under clause (i) if the violation charged occurred more than 2 years prior to the date of issuance 

of the required notice or notice or apparent liability. 

(B) CRIMINAL FINE.—Any person who willfully and knowingly violates this subsection shall upon conviction thereof 

be fined not more than $10,000 for each violation, or 3 


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times that amount for each day of a continuing violation, 

in lieu of the fine provided by section 501 for such a violation. This subparagraph does not supersede the provisions 

of section 501 relating to imprisonment or the imposition of 

a penalty of both fine and imprisonment. 

(6) ENFORCEMENT BY STATES.—

(A) IN GENERAL.—The chief legal officer of a State, or any 

other State officer authorized by law to bring actions on behalf of the residents of a State, may bring a civil action, as 

parens patriae, on behalf of the residents of that State in 

an appropriate district court of the United States to enforce 

this subsection or to impose the civil penalties for violation 

of this subsection, whenever the chief legal officer or other 

State officer has reason to believe that the interests of the 

residents of the State have been or are being threatened or 

adversely affected by a violation of this subsection or a regulation under this subsection. 

(B) NOTICE.—The chief legal officer or other State officer 

shall serve written notice on the Commission of any civil 

action under subparagraph (A) prior to initiating such civil 

action. The notice shall include a copy of the complaint to 

be filed to initiate such civil action, except that if it is not 

feasible for the State to provide such prior notice, the State 

shall provide such notice immediately upon instituting such 

civil action. 

(C) AUTHORITY TO INTERVENE.—Upon receiving the notice 

required by subparagraph (B), the Commission may intervene in such civil action and upon intervening—

(i) be heard on all matters arising in such civil action; and 

(ii) file petitions for appeal of a decision in such civil 

action. 

(D) CONSTRUCTION.—For purposes of bringing any civil 

action under subparagraph (A), nothing in this paragraph 

shall prevent the chief legal officer or other State officer 

from exercising the powers conferred on that officer by the 

laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of 

witnesses or the production of documentary and other evidence. 

(E) VENUE; SERVICE OF PROCESS.—

(i) VENUE.—An action brought under subparagraph 

(A) shall be brought in a district court of the United 

States that meets applicable requirements relating to 

venue under section 1391 of title 28, United States 

Code. 

(ii) SERVICE OF PROCESS.—In an action brought 

under subparagraph (A)—

(I) process may be served without regard to the 

territorial limits of the district or of the State in 

which the action is instituted; and 

(II) a person who participated in an alleged violation that is being litigated in the civil action may 


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be joined in the civil action without regard to the 

residence of the person. 

(F) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION

IS PENDING.—If the Commission has instituted an enforcement action or proceeding for violation of this subsection, 

the chief legal officer or other State officer of the State in 

which the violation occurred may not bring an action under 

this section during the pendency of the proceeding against 

any person with respect to whom the Commission has instituted the proceeding. 

(7) DEFINITIONS.—For purposes of this subsection: 

(A) CALLER IDENTIFICATION INFORMATION.—The term 

‘‘caller identification information’’ means information provided by a caller identification service regarding the telephone number of, or other information regarding the origination of, a call made using a telecommunications service 

or IP-enabled voice service. 

(B) CALLER IDENTIFICATION SERVICE.—The term ‘‘caller 

identification service’’ means any service or device designed 

to provide the user of the service or device with the telephone number of, or other information regarding the origination of, a call made using a telecommunications service 

or IP-enabled voice service. Such term includes automatic 

number identification services. 

(C) IP-ENABLED VOICE SERVICE.—The term ‘‘IP-enabled 

voice service’’ means the provision of real-time 2-way voice 

communications offered to the public, or such classes of 

users as to be effectively available to the public, transmitted 

through customer premises equipment using Internet protocol, or a successor protocol, for a fee (whether part of a 

bundle of services or separately) with interconnection capability such that the service can originate traffic to, or terminate traffic from, the public switched telephone network. 

(8) LIMITATION.—Notwithstanding any other provision of this 

section, subsection (f) shall not apply to this subsection or to the 

regulations under this subsection. 

ø(e)¿ (f) EFFECT ON STATE LAW.— (1) STATE LAW NOT PREEMPTED.—Except for the standards 

prescribed under subsection (d) and subject to paragraph (2) of 

this subsection, nothing in this section or in the regulations 

prescribed under this section shall preempt any State law that 

imposes more restrictive intrastate requirements or regulations 

on, or which prohibits— (A) the use of telephone facsimile machines or other electronic devices to send unsolicited advertisements; 

(B) the use of automatic telephone dialing systems; 

(C) the use of artificial or prerecorded voice messages; or 

(D) the making of telephone solicitations. 

(2) STATE USE OF DATABASES.—If, pursuant to subsection 

(c)(3), the Commission requires the establishment of a single 

national database of telephone numbers of subscribers who object to receiving telephone solicitations, a State or local authority may not, in its regulation of telephone solicitations, require 

the use of any database, list, or listing system that does not 


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include the part of such single national database that relates 

to such State. 

ø(f)¿ (g) ACTIONS BY STATES.— (1) AUTHORITY OF STATES.—Whenever the attorney general of 

a State, or an official or agency designated by a State, has reason to believe that any person has engaged or is engaging in 

a pattern or practice of telephone calls or other transmissions 

to residents of that State in violation of this section or the regulations prescribed under this section, the State may bring a 

civil action on behalf of its residents to enjoin such calls, an action to recover for actual monetary loss or receive $500 in damages for each violation, or both such actions. If the court finds 

the defendant willfully or knowingly violated such regulations, 

the court may, in its discretion, increase the amount of the 

award to an amount equal to not more than 3 times the 

amount available under the preceding sentence. 

(2) EXCLUSIVE JURISDICTION OF FEDERAL COURTS.—The district courts of the United States, the United States courts of 

any territory, and the District Court of the United States for 

the District of Columbia shall have exclusive jurisdiction over 

all civil actions brought under this subsection. Upon proper application, such courts shall also have jurisdiction to issue writs 

of mandamus, or orders affording like relief, commanding the 

defendant to comply with the provisions of this section or regulations prescribed under this section, including the requirement that the defendant take such action as is necessary to remove the danger of such violation. Upon a proper showing, a 

permanent or temporary injunction or restraining order shall 

be granted without bond. 

(3) RIGHTS OF COMMISSION.—The State shall serve prior written notice of any such civil action upon the Commission and 

provide the Commission with a copy of its complaint, except in 

any case where such prior notice is not feasible, in which case 

the State shall serve such notice immediately upon instituting 

such action. The Commission shall have the right (A) to intervene in the action, (B) upon so intervening, to be heard on all 

matters arising therein, and (C) to file petitions for appeal. 

(4) VENUE; SERVICE OF PROCESS.—Any civil action brought 

under this subsection in a district court of the United States 

may be brought in the district wherein the defendant is found 

or is an inhabitant or transacts business or wherein the violation occurred or is occurring, and process in such cases may be 

served in any district in which the defendant is an inhabitant 

or where the defendant may be found. 

(5) INVESTIGATORY POWERS.—For purposes of bringing any 

civil action under this subsection, nothing in this section shall 

prevent the attorney general of a State, or an official or agency 

designated by a State, from exercising the powers conferred on 

the attorney general or such official by the laws of such State 

to conduct investigations or to administer oaths or affirmations 

or to compel the attendance of witnesses or the production of 

documentary and other evidence. 

(6) EFFECT ON STATE COURT PROCEEDINGS.—Nothing contained in this subsection shall be construed to prohibit an auVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00128 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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thorized State official from proceeding in State court on the 

basis of an alleged violation of any general civil or criminal 

statute of such State. 

(7) LIMITATION.—Whenever the Commission has instituted a 

civil action for violation of regulations prescribed under this 

section, no State may, during the pendency of such action instituted by the Commission, subsequently institute a civil action 

against any defendant named in the Commission’s complaint 

for any violation as alleged in the Commission’s complaint. 

(8) DEFINITION.—As used in this subsection, the term ‘‘attorney general’’ means the chief legal officer of a State. 

ø(g)¿ (h) JUNK FAX ENFORCEMENT REPORT.—The Commission 

shall submit an annual report to Congress regarding the enforcement during the past year of the provisions of this section relating 

to sending of unsolicited advertisements to telephone facsimile machines, which report shall include—

(1) the number of complaints received by the Commission 

during such year alleging that a consumer received an unsolicited advertisement via telephone facsimile machine in violation 

of the Commission’s rules; 

(2) the number of citations issued by the Commission pursuant to section 503 during the year to enforce any law, regulation, or policy relating to sending of unsolicited advertisements 

to telephone facsimile machines; 

(3) the number of notices of apparent liability issued by the 

Commission pursuant to section 503 during the year to enforce 

any law, regulation, or policy relating to sending of unsolicited 

advertisements to telephone facsimile machines; 

(4) for each notice referred to in paragraph (3)—

(A) the amount of the proposed forfeiture penalty involved; 

(B) the person to whom the notice was issued; 

(C) the length of time between the date on which the 

complaint was filed and the date on which the notice was 

issued; and 

(D) the status of the proceeding; 

(5) the number of final orders imposing forfeiture penalties 

issued pursuant to section 503 during the year to enforce any 

law, regulation, or policy relating to sending of unsolicited advertisements to telephone facsimile machines; 

(6) for each forfeiture order referred to in paragraph (5)—

(A) the amount of the penalty imposed by the order; 

(B) the person to whom the order was issued; 

(C) whether the forfeiture penalty has been paid; and 

(D) the amount paid; 

(7) for each case in which a person has failed to pay a forfeiture penalty imposed by such a final order, whether the 

Commission referred such matter for recovery of the penalty; 

and 

(8) for each case in which the Commission referred such an 

order for recovery—

(A) the number of days from the date the Commission 

issued such order to the date of such referral; 


hmoore on PROD1PC68 with HMRPT
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(B) whether an action has been commenced to recover 

the penalty, and if so, the number of days from the date 

the Commission referred such order for recovery to the 

date of such commencement; and 

(C) whether the recovery action resulted in collection of 

any amount, and if so, the amount collected. 

* * * * * * * 

PART II. DEVELOPMENT OF COMPETITIVE 

MARKETS 

SEC. 251. INTERCONNECTION. 

[47 U.S.C. 251] 

(a) GENERAL DUTY OF TELECOMMUNICATIONS CARRIERS.—Each 

telecommunications carrier has the duty—

(1) to interconnect directly or indirectly with the facilities 

and equipment of other telecommunications carriers; and 

(2) not to install network features, functions, or capabilities 

that do not comply with the guidelines and standards established pursuant to section 255 or 256. 

(b) OBLIGATIONS OF ALL LOCAL EXCHANGE CARRIERS.—Each local 

exchange carrier has the following duties: 

(1) RESALE.—The duty not to prohibit, and not to impose unreasonable or discriminatory conditions or limitations on, the 

resale of its telecommunications services. 

(2) NUMBER PORTABILITY.—The duty to provide, to the extent 

technically feasible, number portability in accordance with requirements prescribed by the Commission. 

(3) DIALING PARITY.—The duty to provide dialing parity to 

competing providers of telephone exchange service and telephone toll service, and the duty to permit all such providers to 

have nondiscriminatory access to telephone numbers, operator 

services, directory assistance, and directory listing, with no unreasonable dialing delays. 

(4) ACCESS TO RIGHTS-OF-WAY.—The duty to afford access to 

the poles, ducts, conduits, and rights-of-way of such carrier to 

competing providers of telecommunications services on rates, 

terms, and conditions that are consistent with section 224. 

(5) RECIPROCAL COMPENSATION.—The duty to establish reciprocal compensation arrangements for the transport and termination of telecommunications. 

(c) ADDITIONAL OBLIGATIONS OF INCUMBENT LOCAL EXCHANGE

CARRIERS.—In addition to the duties contained in subsection (b), 

each incumbent local exchange carrier has the following duties: 

(1) DUTY TO NEGOTIATE.—The duty to negotiate in good faith 

in accordance with section 252 the particular terms and conditions of agreements to fulfill the duties described in paragraphs (1) through (5) of subsection (b) and this subsection. 

The requesting telecommunications carrier also has the duty to 

negotiate in good faith the terms and conditions of such agreements. 


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(2) INTERCONNECTION.—The duty to provide, for the facilities 

and equipment of any requesting telecommunications carrier, 

interconnection with the local exchange carrier’s network— (A) for the transmission and routing of telephone exchange service and exchange access; 

(B) at any technically feasible point within the carrier’s 

network; 

(C) that is at least equal in quality to that provided by 

the local exchange carrier to itself or to any subsidiary, affiliate, or any other party to which the carrier provides 

interconnection; and 

(D) on rates, terms, and conditions that are just, reasonable, and nondiscriminatory, in accordance with the terms 

and conditions of the agreement and the requirements of 

this section and section 252. 

(3) UNBUNDLED ACCESS.—The duty to provide, to any requesting telecommunications carrier for the provision of a telecommunications service, nondiscriminatory access to network 

elements on an unbundled basis at any technically feasible 

point on rates, terms, and conditions that are just, reasonable, 

and nondiscriminatory in accordance with the terms and conditions of the agreement and the requirements of this section 

and section 252. An incumbent local exchange carrier shall 

provide such unbundled network elements in a manner that allows requesting carriers to combine such elements in order to 

provide such telecommunications service. 

(4) RESALE.—The duty— (A) to offer for resale at wholesale rates any telecommunications service that the carrier provides at retail 

to subscribers who are not telecommunications carriers; 

and 

(B) not to prohibit, and not to impose unreasonable or 

discriminatory conditions or limitations on, the resale of 

such telecommunications service, except that a State commission may, consistent with regulations prescribed by the 

Commission under this section, prohibit a reseller that obtains at wholesale rates a telecommunications service that 

is available at retail only to a category of subscribers from 

offering such service to a different category of subscribers. 

(5) NOTICE OF CHANGES.—The duty to provide reasonable 

public notice of changes in the information necessary for the 

transmission and routing of services using that local exchange 

carrier’s facilities or networks, as well as of any other changes 

that would affect the interoperability of those facilities and 

networks. 

(6) COLLOCATION.—The duty to provide, on rates, terms, and 

conditions that are just, reasonable, and nondiscriminatory, for 

physical collocation of equipment necessary for interconnection 

or access to unbundled network elements at the premises of 

the local exchange carrier, except that the carrier may provide 

for virtual collocation if the local exchange carrier demonstrates to the State commission that physical collocation is 

not practical for technical reasons or because of space limitations. 


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(d) IMPLEMENTATION.— (1) IN GENERAL.—Within 6 months after the date of enactment of the Telecommunications Act of 1996, the Commission 

shall complete all actions necessary to establish regulations to 

implement the requirements of this section. 

(2) ACCESS STANDARDS.—In determining what network elements should be made available for purposes of subsection 

(c)(3), the Commission shall consider, at a minimum, whether— (A) access to such network elements as are proprietary 

in nature is necessary; and 

(B) the failure to provide access to such network elements would impair the ability of the telecommunications 

carrier seeking access to provide the services that it seeks 

to offer. 

(3) PRESERVATION OF STATE ACCESS REGULATIONS.—In prescribing and enforcing regulations to implement the requirements of this section, the Commission shall not preclude the 

enforcement of any regulation, order, or policy of a State commission that—

(A) establishes access and interconnection obligations of 

local exchange carriers; 

(B) is consistent with the requirements of this section; 

and 

(C) does not substantially prevent implementation of the 

requirements of this section and the purposes of this part. 

(e) NUMBERING ADMINISTRATION.— (1) COMMISSION AUTHORITY AND JURISDICTION.—The Commission shall create or designate one or more impartial entities 

to administer telecommunications numbering and to make 

such numbers available on an equitable basis. The Commission 

shall have exclusive jurisdiction over those portions of the 

North American Numbering Plan that pertain to the United 

States. Nothing in this paragraph shall preclude the Commission from delegating to State commissions or other entities all 

or any portion of such jurisdiction. 

(2) COSTS.—The cost of establishing telecommunications 

numbering administration arrangements and number portability shall be borne by all telecommunications carriers on a 

competitively neutral basis as determined by the Commission. 

(3) UNIVERSAL EMERGENCY TELEPHONE NUMBER.—The Commission and any agency or entity to which the Commission has 

delegated authority under this subsection shall designate 

9–1–1 as the universal emergency telephone number within 

the United States for reporting an emergency to appropriate 

authorities and requesting assistance. The designation shall 

apply to both wireline and wireless telephone service. In making the designation, the Commission (and any such agency or 

entity) shall provide appropriate transition periods for areas in 

which 9–1–1 is not in use as an emergency telephone number 

on the date of enactment of the Wireless Communications and 

Public Safety Act of 1999. 

(f) EXEMPTIONS, SUSPENSIONS, AND MODIFICATIONS.—

(1) EXEMPTION FOR CERTAIN RURAL TELEPHONE COMPANIES.—


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(A) EXEMPTION.—øSubsection¿ Except as provided in 

subparagraph (B), subsection (c) of this section shall not 

apply to a rural telephone company until (i) such company 

has received a bona fide request for øinterconnection, services, or network elements,¿ services or network elements 

and (ii) the State commission determines ø(under subparagraph (B))¿ (under subparagraph (C)) that such request is 

not unduly economically burdensome, is technically feasible, and is consistent with section 254 (other than subsections (b)(7) and (c)(1)(D) thereof). 

(B) CERTAIN CARRIERS.—Subsection (c) (other than paragraphs (1) and (2) thereof) of this section shall not apply 

to a rural telephone company in Alaska with fewer than 10 

access lines per square mile installed in the aggregate in its 

service area (as defined in section 214(e)(5)). 

(C) INTERCONNECTION.—Notwithstanding subparagraphs 

(A) and (D), paragraphs (1) and (2) of subsection (c) of this 

section shall not apply to a rural telephone company until 

such company has received a bona fide request for interconnection. 

ø(B)¿ (D) STATE TERMINATION OF EXEMPTION AND IMPLE- MENTATION SCHEDULE.—The party making a bona fide request of a rural telephone company for øinterconnection, 

services, or network elements¿ services or network elements shall submit a notice of its request to the State commission. The State commission shall conduct an inquiry for 

the purpose of determining whether to terminate the exemption under subparagraph (A). Within 120 days after 

the State commission receives notice of the request, the 

State commission shall terminate the exemption if the request is not unduly economically burdensome, is technically feasible, and is consistent with section 254 (other 

than subsections (b)(7) and (c)(1)(D) thereof). Upon termination of the exemption, a State commission shall establish an implementation schedule for compliance with the 

request that is consistent in time and manner with Commission regulations. 

ø(C) LIMITATION ON EXEMPTION.—The exemption provided by this paragraph shall not apply with respect to a 

request under subsection (c) from a cable operator providing video programming, and seeking to provide any 

telecommunications service, in the area in which the rural 

telephone company provides video programming. The limitation contained in this subparagraph shall not apply to a 

rural telephone company that is providing video programming on the date of enactment of the Telecommunications 

Act of 1996.¿ 

(2) SUSPENSIONS AND MODIFICATIONS FOR RURAL CARRIERS.—

A local exchange carrier with fewer than 2 percent of the Nation’s subscriber lines installed in the aggregate nationwide 

may petition a State commission for a suspension or modification of the application of a requirement or requirements of subsection (b) or (c) (other than paragraphs (1) and (2) of subsection (c)) to telephone exchange service facilities specified in 


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such petition. The State commission shall grant such petition 

to the extent that, and for such duration as, the State commission determines that such suspension or modification— (A) is necessary— (i) to avoid a significant adverse economic impact on 

users of telecommunications services generally; 

(ii) to avoid imposing a requirement that is unduly 

economically burdensome; or 

(iii) to avoid imposing a requirement that is technically infeasible; and 

(B) is consistent with the public interest, convenience, 

and necessity. 

The State commission shall act upon any petition filed under 

this paragraph within 180 days after receiving such petition. 

Pending such action, the State commission may suspend enforcement of the requirement or requirements to which the petition applies with respect to the petitioning carrier or carriers. 

(g) CONTINUED ENFORCEMENT OF EXCHANGE ACCESS AND INTERCONNECTION REQUIREMENTS.—On and after the date of enactment 

of the Telecommunications Act of 1996, each local exchange carrier, 

to the extent that it provides wireline services, shall provide exchange access, information access, and exchange services for such 

access to interexchange carriers and information service providers 

in accordance with the same equal access and nondiscriminatory 

interconnection restrictions and obligations (including receipt of 

compensation) that apply to such carrier on the date immediately 

preceding the date of enactment of the Telecommunications Act of 

1996 under any court order, consent decree, or regulation, order, or 

policy of the Commission, until such restrictions and obligations 

are explicitly superseded by regulations prescribed by the Commission after such date of enactment. During the period beginning on 

such date of enactment and until such restrictions and obligations 

are so superseded, such restrictions and obligations shall be enforceable in the same manner as regulations of the Commission. 

(h) DEFINITION OF INCUMBENT LOCAL EXCHANGE CARRIER.— (1) DEFINITION.—For purposes of this section, the term ‘‘incumbent local exchange carrier’’ means, with respect to an 

area, the local exchange carrier that— (A) on the date of enactment of the Telecommunications 

Act of 1996, provided telephone exchange service in such 

area; and 

(B) (i) on such date of enactment, was deemed to be a 

member of the exchange carrier association pursuant to 

section 69.601(b) of the Commission’s regulations (47 

C.F.R. 69.601(b)); or 

(ii) is a person or entity that, on or after such date 

of enactment, became a successor or assign of a member described in clause (i). 

(2) TREATMENT OF COMPARABLE CARRIERS AS INCUMBENTS.— The Commission may, by rule, provide for the treatment of a 

local exchange carrier (or class or category thereof) as an incumbent local exchange carrier for purposes of this section if— (A) such carrier occupies a position in the market for 

telephone exchange service within an area that is comVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00134 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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parable to the position occupied by a carrier described in 

paragraph (1); 

(B) such carrier has substantially replaced an incumbent 

local exchange carrier described in paragraph (1); and 

(C) such treatment is consistent with the public interest, 

convenience, and necessity and the purposes of this section. 

(i) SAVINGS PROVISION.—Nothing in this section shall be construed to limit or otherwise affect the Commission’s authority 

under section 201. 

* * * * * * * 

SEC. 254. UNIVERSAL SERVICE. 

[47 U.S.C. 254] 

(a) PROCEDURES TO REVIEW UNIVERSAL SERVICE REQUIREMENTS. 

(1) FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE.—

Within one month after the date of enactment of the Telecommunications Act of 1996, the Commission shall institute 

and refer to a Federal-State Joint Board under section 410(c) 

a proceeding to recommend changes to any of its regulations in 

order to implement sections 214(e) and this section, including 

the definition of the services that are supported by Federal 

universal service support mechanisms and a specific timetable 

for completion of such recommendations. In addition to the 

members of the Joint Board required under section 410(c), one 

member of such Joint Board shall be a State-appointed utility 

consumer advocate nominated by a national organization of 

State utility consumer advocates. The Joint Board shall, after 

notice and opportunity for public comment, make its recommendations to the Commission 9 months after the date of 

enactment of the Telecommunications Act of 1996. 

(2) COMMISSION ACTION.—The Commission shall initiate a 

single proceeding to implement the recommendations from the 

Joint Board required by paragraph (1) and shall complete such 

proceeding within 15 months after the date of enactment of the 

Telecommunications Act of 1996. The rules established by such 

proceeding shall include a definition of the services that are 

supported by Federal universal service support mechanisms 

and a specific timetable for implementation. Thereafter, the 

Commission shall complete any proceeding to implement subsequent recommendations from any Joint Board on universal 

service within one year after receiving such recommendations. 

(b) UNIVERSAL SERVICE PRINCIPLES.—The Joint Board and the 

Commission shall base policies for the preservation and advancement of universal service on the following principles: 

(1) QUALITY AND RATES.—Quality services should be available at just, reasonable, and affordable rates. 

(2) ACCESS TO ADVANCED SERVICES.—Access to advanced telecommunications and information services should be provided in 

all regions of the Nation. 

(3) ACCESS IN RURAL AND HIGH COST AREAS.—Consumers in 

all regions of the Nation, including low-income consumers and 

those in rural, insular, and high cost areas, should have access 

to telecommunications and information services, including 


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interexchange services and advanced telecommunications and 

information services, that are reasonably comparable to those 

services provided in urban areas and that are available at 

rates that are reasonably comparable to rates charged for similar services in urban areas. 

(4) EQUITABLE AND NONDISCRIMINATORY CONTRIBUTIONS.—All 

providers of øtelecommunications services¿ communications 

services (as defined in subsection (d)(6)(B) should make an equitable and nondiscriminatory contribution to the preservation 

and advancement of universal service. 

(5) SPECIFIC AND PREDICTABLE SUPPORT MECHANISMS.—There 

should be specific, predictable and sufficient Federal and State 

mechanisms to preserve and advance universal service. 

(6) ACCESS TO ADVANCED TELECOMMUNICATIONS SERVICES

FOR SCHOOLS, HEALTH CARE, AND LIBRARIES.—Elementary and 

secondary schools and classrooms, health care providers, and 

libraries should have access to advanced telecommunications 

services as described in subsection (h). 

(7) COMPETITIVE NEUTRALITY.—Universal service support 

mechanisms and rules should be competitively neutral. In this 

context, competitively neutral means that universal service support mechanisms and rules neither unfairly advantage nor disadvantage one provider over another, and neither unfairly favor 

nor disfavor one technology over another. 

ø(7)¿ (8) ADDITIONAL PRINCIPLES.—Such other principles as 

the Joint Board and the Commission determine are necessary 

and appropriate for the protection of the public interest, convenience, and necessity and are consistent with this Act. 

(c) DEFINITION.—

(1) IN GENERAL.—Universal service is an evolving level of 

telecommunications services that the Commission shall establish periodically under this section, taking into account advances in telecommunications and information technologies 

and services. The Joint Board in recommending, and the Commission in establishing, the definition of the services that are 

supported by Federal universal service support mechanisms 

shall consider the extent to which such telecommunications 

services—

(A) are essential to education, public health, or public 

safety; 

(B) have, through the operation of market choices by 

customers, been subscribed to by a substantial majority of 

residential customers; 

(C) are being deployed in public telecommunications networks by telecommunications carriers; and 

(D) are consistent with the public interest, convenience, 

and necessity. 

(2) ALTERATIONS AND MODIFICATIONS.—The Joint Board may, 

from time to time, recommend to the Commission modifications 

in the definition of the services that are supported by Federal 

universal service support mechanisms. 

(3) SPECIAL SERVICES.—In addition to the services included 

in the definition of universal service under paragraph (1), the 

Commission may designate additional services for such support 


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mechanisms for schools, libraries, and health care providers for 

the purposes of subsection (h). 

ø(d) TELECOMMUNICATIONS CARRIER CONTRIBUTION.—Every telecommunications carrier that provides interstate telecommunications services shall contribute, on an equitable and nondiscriminatory basis, to the specific, predictable, and sufficient mechanisms established by the Commission to preserve and advance universal service. The Commission may exempt a carrier or class of 

carriers from this requirement if the carrier’s telecommunications 

activities are limited to such an extent that the level of such carrier’s contribution to the preservation and advancement of universal service would be de minimis. Any other provider of interstate telecommunications may be required to contribute to the 

preservation and advancement of universal service if the public interest so requires.¿ 

(d) UNIVERSAL SERVICE SUPPORT CONTRIBUTIONS.—

(1) CONTRIBUTION MECHANISM.—

(A) IN GENERAL.—Each communications service provider 

shall contribute as provided in this subsection to support 

universal service. 

(B) REQUIREMENTS.—The Commission shall ensure that 

the contributions required by this subsection are—

(i) applied in a manner that is as competitively and 

technologically neutral as possible; 

(ii) specific, predictable, and sufficient to sustain the 

funding of networks used to preserve and advance universal service; and 

(iii) applied in such a manner that no methodology 

results in a communications services provider being required to contribute more than once to support Federal 

universal service for the same transaction, activity, or 

service. 

(C) ADJUSTMENTS.—The Commission shall adjust the 

contribution for communication service providers for their 

low-call volume, non-business customers. 

(2) EXEMPTIONS.—The Commission may exempt a communications service provider or any class of communications service providers from the requirements of this subsection in the following circumstances: 

(A) The services of such a provider are limited to such an 

extent that the level of its contributions would be de minimis. 

(B) The communications service is provided pursuant to 

the Commission’s Lifeline Assistance Program. 

(C) The communications service is provided only to in-vehicle emergency communications customers. 

(D) The communications service is provided by a not-forprofit communications service provider that is neither an 

affiliate of a for-profit organization nor has a for-profit affiliate and which provides voice mailboxes to low income 

consumers and the homeless. 

(3) CONTRIBUTION ASSESSMENT FLEXIBILITY.—


hmoore on PROD1PC68 with HMRPT
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(A) METHODOLOGY.—To achieve the principles in this section, the Commission may base universal service contributions upon— (i) revenue from communications service; 

(ii) in-use working phone numbers or any other identifier protocol or connection to the networks; or 

(iii) network capacity. 

(B) USE OF MORE THAN 1 METHODOLOGY.—If no single 

methodology employed under subparagraph (A) achieves 

the principles described in this subsection, the Commission 

may employ a combination of any such methodologies. 

(C) REMOVAL OF INTERSTATE/INTRASTATE DISTINCTION.—

Notwithstanding section 2(b) of this Act, the Commission 

may assess the interstate, intrastate, and international portions of communications service for the purpose of universal 

service contributions. 

(D) GROUP PLAN DISCOUNT.—If the Commission utilizes 

a methodology under subparagraph (A) based in whole or 

in part on in-use working phone numbers, it may provide 

a discount for additional numbers provided under a group 

or family pricing plan for residential customers provided in 

1 bill. 

(4) NON-DISCRIMINATORY ELIGIBILITY REQUIREMENT.—A communications service provider is not exempted from the requirements of this subsection solely on the basis that such provider 

is not eligible to receive support under this section. 

(5) BILLING.— (A) IN GENERAL.—A communications service provider 

that contributes to universal service under this section may 

place on any customer bill a separate line item charge that 

does not exceed the amount for the customer that the provider is required to contribute under this subsection that 

shall be identified as the ‘‘Federal Universal Service Fee’’. (B) LIMITATION.—A communications service provider may 

not separately bill customers for administrative costs associated with its collection and remission of universal service 

fees under this subsection. 

(6) DEFINITIONS.—In this subsection: 

(A) BROADBAND SERVICE.—The term ‘‘broadband service’’ means any service (whether part of a bundle of services or 

offered separately) used for transmission of information of 

a user’s choosing with a transmission speed of at least 200 

kilobits per second in at least 1 direction, regardless of the 

transmission medium or technology employed, that connects to the public Internet directly— (i) to the public; or 

(ii) to such classes of users as to be effectively available directly to the public. 

(B) COMMUNICATIONS SERVICE.—The term ‘‘communications service’’ means telecommunications service, 

broadband service, or IP-enabled voice service (whether 

part of a bundle of services or offered separately). 

(C) CONNECTION.—The term ‘‘connection’’ means the facilities that provide customers with access to a public or 


hmoore on PROD1PC68 with HMRPT
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private network, regardless of whether the connection is circuit-switched, packet-switched, wireline or wireless, or 

leased line. 

(D) IN-VEHICLE EMERGENCY COMMUNICATIONS.—The term ‘‘in-vehicle emergency communications’’ means services and 

technology, including automatic crash notification, roadside assistance, SOS distress calls, remote diagnostics, 

navigation or location-based services, and other driver assistance services, which are integrated into passenger automobiles to facilitate communications from the automobile to 

emergency response professionals. 

(E) IP-ENABLED VOICE SERVICE.—The term ‘‘IP-enabled 

voice service’’ means the provision of real-time 2-way voice 

communications offered to the public, or such classes of 

users as to be effectively available to the public, transmitted 

through customer premises equipment using Internet protocol, or a successor protocol, for a fee (whether part of a 

bundle of services or offered separately) with 2-way interconnection capability such that the service can originate 

traffic to, and terminate traffic from, the public switched 

telephone network. 

(F) WORKING PHONE NUMBERS.—The term ‘‘working 

phone number’’ means an assigned number (as defined in 

section 52.15 of the Commission’s regulations (47 C.F.R. 

52.15)) or an intermediate number (as defined in that section). 

(e) UNIVERSAL SERVICE SUPPORT.—After the date on which Commission regulations implementing this section take effect, only an 

eligible telecommunications carrier designated under section 214(e) 

shall be eligible to receive specific Federal universal service support. A carrier that receives such support shall use that support 

only for the provision, maintenance, and upgrading of facilities and 

services for which the support is intended. Any such support 

should be explicit and sufficient to achieve the purposes of this section. 

ø(f) STATE AUTHORITY.—A State may adopt regulations not inconsistent with the Commission’s rules to preserve and advance 

universal service. Every telecommunications carrier that provides 

intrastate telecommunications services shall contribute, on an equitable and nondiscriminatory basis, in a manner determined by the 

State to the preservation and advancement of universal service in 

that State. A State may adopt regulations to provide for additional 

definitions and standards to preserve and advance universal service within that State only to the extent that such regulations adopt 

additional specific, predictable, and sufficient mechanisms to support such definitions or standards that do not rely on or burden 

Federal universal service support mechanisms.¿ 

(f) STATE AUTHORITY.—

(1) IN GENERAL.—A State may adopt regulations not inconsistent with the Commission’s rules to preserve and advance 

universal service. In adopting those rules, a State may require 

telecommunications service providers and IP-enabled voice service (as defined in subsection (d)(6)(E)) providers to contribute to 

universal service on the basis of—


hmoore on PROD1PC68 with HMRPT
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(A) revenue; 

(B) in-use working phone numbers or any other identifier 

protocol or connection to the networks; 

(C) network capacity; or 

(D) any combination of such methodologies. 

(2) DISREGARD OF INTERSTATE COMPONENT.—A State may require telecommunications service providers and IP-enabled 

voice service providers to contribute under paragraph (1) regardless of whether the service contains an interstate component. 

(3) BUNDLING.—If a telecommunications service or IP-enabled 

voice service is offered as part of a bundle of services, the Commission shall determine a fair allocation of revenue between the 

telecommunications service or IP-enabled voice service and 

other bundled services if the primary place of use of such bundled services is within the State. 

(4) GUIDELINES.—Regulations adopted by a State under this 

subsection shall result in a specific, predictable, and sufficient 

mechanism to support universal service and shall be competitively and technologically neutral, equitable, and nondiscriminatory. 

(g) INTEREXCHANGE AND INTERSTATE SERVICES.—Within 6 

months after the date of enactment of the Telecommunications Act 

of 1996, the Commission shall adopt rules to require that the rates 

charged by providers of interexchange telecommunications services 

to subscribers in rural and high cost areas shall be no higher than 

the rates charged by each such provider to its subscribers in urban 

areas. Such rules shall also require that a provider of interstate 

interexchange telecommunications services shall provide such services to its subscribers in each State at rates no higher than the 

rates charged to its subscribers in any other State. This section 

shall also apply to any services within the jurisdiction of the Commission that can be used as effective substitutes for interexchange 

telecommunications services, including any such substitute classified as an information service that uses telecommunications. 

(h) TELECOMMUNICATIONS SERVICES FOR CERTAIN PROVIDERS.— (1) IN GENERAL.— (A) HEALTH CARE PROVIDERS FOR RURAL AREAS.— (i) IN GENERAL.—A telecommunications carrier shall, 

upon receiving a bona fide request, provide telecommunications services which are necessary for the 

provision of health care services in a State, including 

deployment of reasonable infrastructure and instruction relating to such services, to any public or nonprofit health care provider that serves persons who reside in rural areas in that State at rates that are reasonably comparable to rates charged for similar services in urban areas in that State. A telecommunications carrier providing service under this paragraph 

shall be entitled to have an amount equal to the difference, if any, between the rates for services provided 

to health care providers for rural areas in a State and 

the rates for similar services provided to other customers in comparable rural areas in that State treated 


hmoore on PROD1PC68 with HMRPT
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as a service obligation as a part of its obligation to 

participate in the mechanisms to preserve and advance universal øservice.¿ service, and to receive reimbursement promptly of any amount in excess of such 

obligations to participate in universal service mechanisms. 

(ii) LIMITATION.—The discount required under clause 

(i) shall be available only to a public or nonprofit 

health care provider located in a rural area. 

(iii) DEFINITION.—For purposes of this subparagraph, the term ‘‘rural area’’ means—

(I) any incorporated or unincorporated area in 

the United States, or in the territories or insular 

possessions of the United States that has not more 

than 20,000 inhabitants based on the most recent 

available population statistics published in the 

most recent decennial census issued by the Census 

Bureau; 

(II) any area located outside the boundaries of 

any incorporated or unincorporated city, county, or 

borough that has more than 20,000 inhabitants 

based on the most recent available population statistics published in the most recent decennial census issued by the Census Bureau; or 

(III) any area that qualified as a rural area 

under the rules of the Commission in effect on December 1, 2004. 

(B) EDUCATIONAL PROVIDERS AND LIBRARIES.—All telecommunications carriers serving a geographic area shall, 

upon a bona fide request for any of its services that are 

within the definition of universal service under subsection 

(c)(3), provide such services to elementary schools, secondary schools, and libraries for educational purposes at 

rates less than the amounts charged for similar services to 

other parties. The discount shall be an amount that the 

Commission, with respect to interstate services, and the 

States, with respect to intrastate services, determine is appropriate and necessary to ensure affordable access to and 

use of such services by such entities. A telecommunications 

carrier providing service under this paragraph shall—

(i) have an amount equal to the amount of the discount treated as an offset to its obligation to contribute to the mechanisms to preserve and advance 

universal service, or 

(ii) notwithstanding the provisions of subsection (e) 

of this section, receive reimbursement utilizing the 

support mechanisms to preserve and advance universal service. 

(2) ADVANCED SERVICES.—The Commission shall establish 

competitively neutral rules—

(A) to enhance, to the extent technically feasible and economically reasonable, access to advanced telecommunications and information services for all public and nonVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00141 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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profit elementary and secondary school classrooms, health 

care providers, and libraries; and 

(B) to define the circumstances under which a telecommunications carrier may be required to connect its network to such public institutional telecommunications 

users. 

(3) TERMS AND CONDITIONS.—Telecommunications services 

and network capacity provided to a public institutional telecommunications user under this subsection may not be sold, 

resold, or otherwise transferred by such user in consideration 

for money or any other thing of value. 

ø(4) ELIGIBILITY OF USERS.—No entity listed in this subsection shall be entitled to preferential rates or treatment as 

required by this subsection, if such entity operates as a forprofit business, is a school described in paragraph (7)(A) with 

an endowment of more than $50,000,000, or is a library or library consortium not eligible for assistance from a State library administrative agency under the Library Services and 

Technology Act.¿ 

(4) CERTAIN USERS NOT ELIGIBLE.—Notwithstanding any 

other provision of this subsection, the following entities are not 

entitled to preferential rates or treatment as required by this 

subsection: 

(A) An entity operated as a for-profit business. 

(B) A school described in paragraph (7)(A) with an endowment of more than $50,000,000. 

(C) A library or library consortium not eligible for assistance under the Library Services and Technology Act (20 

U.S.C. 9101 et seq.) from a State library administrative 

agency. 

(D) A library or library consortium not eligible for assistance funded by a grant under section 261 of the Library 

Services and Technology Act (20 U.S.C. 9161) from an Indian tribe or other organization. 

(5) REQUIREMENTS FOR CERTAIN SCHOOLS WITH COMPUTERS

HAVING INTERNET ACCESS.— (A) INTERNET SAFETY.— (i) IN GENERAL.—Except as provided in clause (ii), 

an elementary or secondary school having computers 

with Internet access may not receive services at discount rates under paragraph (1)(B) unless the school, 

school board, local educational agency, or other authority with responsibility for administration of the 

school—

(I) submits to the Commission the certifications 

described in subparagraphs (B) and (C); 

(II) submits to the Commission a certification 

that an Internet safety policy has been adopted 

and implemented for the school under subsection 

(l); and 

(III) ensures the use of such computers in accordance with the certifications. 

(ii) APPLICABILITY.—The prohibition in clause (i) 

shall not apply with respect to a school that receives 


hmoore on PROD1PC68 with HMRPT
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services at discount rates under paragraph (1)(B) only 

for purposes other than the provision of Internet access, Internet service, or internal connections. 

(iii) PUBLIC NOTICE; HEARING.—An elementary or 

secondary school described in clause (i), or the school 

board, local educational agency, or other authority 

with responsibility for administration of the school, 

shall provide reasonable public notice and hold at 

least 1 public hearing or meeting to address the proposed Internet safety policy. In the case of an elementary or secondary school other than an elementary or 

secondary school as defined in section 14101 of the Elementary and Secondary Education Act of 1965 (20 

U.S.C. 8801), the notice and hearing required by this 

clause may be limited to those members of the public 

with a relationship to the school. 

(B) CERTIFICATION WITH RESPECT TO MINORS.—A certification under this subparagraph is a certification that the 

school, school board, local educational agency, or other authority with responsibility for administration of the 

school—

(i) is enforcing a policy of Internet safety for minors 

that includes monitoring the online activities of minors and the operation of a technology protection 

measure with respect to any of its computers with 

Internet access that protects against access through 

such computers to visual depictions that are—

(I) obscene; 

(II) child pornography; or 

(III) harmful to minors; and 

(ii) is enforcing the operation of such technology protection measure during any use of such computers by 

minors. 

(C) CERTIFICATION WITH RESPECT TO ADULTS.—A certification under this paragraph is a certification that the 

school, school board, local educational agency, or other authority with responsibility for administration of the 

school—

(i) is enforcing a policy of Internet safety that includes the operation of a technology protection measure with respect to any of its computers with Internet 

access that protects against access through such computers to visual depictions that are—

(I) obscene; or 

(II) child pornography; and 

(ii) is enforcing the operation of such technology protection measure during any use of such computers. 

(D) DISABLING DURING ADULT USE.—An administrator, 

supervisor, or other person authorized by the certifying authority under subparagraph (A)(i) may disable the technology protection measure concerned, during use by an 

adult, to enable access for bona fide research or other lawful purpose. 

(E) TIMING OF IMPLEMENTATION. 


hmoore on PROD1PC68 with HMRPT
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(i) IN GENERAL.—Subject to clause (ii) in the case of 

any school covered by this paragraph as of the effective date of this paragraph under section 1721(h) of 

the Children’s Internet Protection Act, the certification 

under subparagraphs (B) and (C) shall be made— (I) with respect to the first program funding 

year under this subsection following such effective 

date, not later than 120 days after the beginning 

of such program funding year; and 

(II) with respect to any subsequent program 

funding year, as part of the application process for 

such program funding year. 

(ii) PROCESS.—

(I) SCHOOLS WITH INTERNET SAFETY POLICY AND

TECHNOLOGY PROTECTION MEASURES IN PLACE.—A 

school covered by clause (i) that has in place an 

Internet safety policy and technology protection 

measures meeting the requirements necessary for 

certification under subparagraphs (B) and (C) 

shall certify its compliance with subparagraphs 

(B) and (C) during each annual program application cycle under this subsection, except that with 

respect to the first program funding year after the 

effective date of this paragraph under section 

1721(h) of the Children’s Internet Protection Act, 

the certifications shall be made not later than 120 

days after the beginning of such first program 

funding year. 

(II) SCHOOLS WITHOUT INTERNET SAFETY POLICY

AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A school covered by clause (i) that does 

not have in place an Internet safety policy and 

technology protection measures meeting the requirements necessary for certification under subparagraphs (B) and (C)—

(aa) for the first program year after the effective date of this subsection in which it is 

applying for funds under this subsection, shall 

certify that it is undertaking such actions, including any necessary procurement procedures, to put in place an Internet safety policy 

and technology protection measures meeting 

the requirements necessary for certification 

under subparagraphs (B) and (C); and 

(bb) for the second program year after the 

effective date of this subsection in which it is 

applying for funds under this subsection, shall 

certify that it is in compliance with subparagraphs (B) and (C). 

Any school that is unable to certify compliance 

with such requirements in such second program 

year shall be ineligible for services at discount 

rates or funding in lieu of services at such rates 

under this subsection for such second year and all 


hmoore on PROD1PC68 with HMRPT
141 

subsequent program years under this subsection, 

until such time as such school comes into compliance with this paragraph. 

(III) WAIVERS.—Any school subject to subclause 

(II) that cannot come into compliance with subparagraphs (B) and (C) in such second year program may seek a waiver of subclause (II)(bb) if 

State or local procurement rules or regulations or 

competitive bidding requirements prevent the 

making of the certification otherwise required by 

such subclause. A school, school board, local educational agency, or other authority with responsibility for administration of the school shall notify 

the Commission of the applicability of such subclause to the school. Such notice shall certify that 

the school in question will be brought into compliance before the start of the third program year 

after the effective date of this subsection in which 

the school is applying for funds under this subsection. 

(F) NONCOMPLIANCE.—

(i) FAILURE TO SUBMIT CERTIFICATION.—Any school 

that knowingly fails to comply with the application 

guidelines regarding the annual submission of certification required by this paragraph shall not be eligible 

for services at discount rates or funding in lieu of services at such rates under this subsection. 

(ii) FAILURE TO COMPLY WITH CERTIFICATION.—Any 

school that knowingly fails to ensure the use of its 

computers in accordance with a certification under 

subparagraphs (B) and (C) shall reimburse any funds 

and discounts received under this subsection for the 

period covered by such certification. 

(iii) REMEDY OF NONCOMPLIANCE.—

(I) FAILURE TO SUBMIT.—A school that has failed 

to submit a certification under clause (i) may remedy the failure by submitting the certification to 

which the failure relates. Upon submittal of such 

certification, the school shall be eligible for services at discount rates under this subsection. 

(II) FAILURE TO COMPLY.—A school that has 

failed to comply with a certification as described 

in clause (ii) may remedy the failure by ensuring 

the use of its computers in accordance with such 

certification. Upon submittal to the Commission of 

a certification or other appropriate evidence of 

such remedy, the school shall be eligible for services at discount rates under this subsection. 

(6) REQUIREMENTS FOR CERTAIN LIBRARIES WITH COMPUTERS

HAVING INTERNET ACCESS.—

(A) INTERNET SAFETY.—

(i) IN GENERAL.—Except as provided in clause (ii), a 

library having one or more computers with Internet 


hmoore on PROD1PC68 with HMRPT
142 

access may not receive services at discount rates 

under paragraph (1)(B) unless the library— (I) submits to the Commission the certifications 

described in subparagraphs (B) and (C); and 

(II) submits to the Commission a certification 

that an Internet safety policy has been adopted 

and implemented for the library under subsection 

(l); and 

(III) ensures the use of such computers in accordance with the certifications. 

(ii) APPLICABILITY.—The prohibition in clause (i) 

shall not apply with respect to a library that receives 

services at discount rates under paragraph (1)(B) only 

for purposes other than the provision of Internet access, Internet service, or internal connections. 

(iii) PUBLIC NOTICE; HEARING.—A library described 

in clause (i) shall provide reasonable public notice and 

hold at least 1 public hearing or meeting to address 

the proposed Internet safety policy. 

(B) CERTIFICATION WITH RESPECT TO MINORS.—A certification under this subparagraph is a certification that the 

library—

(i) is enforcing a policy of Internet safety that includes the operation of a technology protection measure with respect to any of its computers with Internet 

access that protects against access through such computers to visual depictions that are—

(I) obscene; 

(II) child pornography; or 

(III) harmful to minors; and 

(ii) is enforcing the operation of such technology protection measure during any use of such computers by 

minors. 

(C) CERTIFICATION WITH RESPECT TO ADULTS.—A certification under this paragraph is a certification that the library—

(i) is enforcing a policy of Internet safety that includes the operation of a technology protection measure with respect to any of its computers with Internet 

access that protects against access through such computers to visual depictions that are—

(I) obscene; or 

(II) child pornography; and 

(ii) is enforcing the operation of such technology protection measure during any use of such computers. 

(D) DISABLING DURING ADULT USE.—An administrator, 

supervisor, or other person authorized by the certifying authority under subparagraph (A)(i) may disable the technology protection measure concerned, during use by an 

adult, to enable access for bona fide research or other lawful purpose. 

(E) TIMING OF IMPLEMENTATION.— (i) IN GENERAL.—Subject to clause (ii) in the case of 

any library covered by this paragraph as of the effecVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00146 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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tive date of this paragraph under section 1721(h) of 

the Children’s Internet Protection Act, the certification 

under subparagraphs (B) and (C) shall be made—

(I) with respect to the first program funding 

year under this subsection following such effective 

date, not later than 120 days after the beginning 

of such program funding year; and 

(II) with respect to any subsequent program 

funding year, as part of the application process for 

such program funding year. 

(ii) PROCESS.—

(I) LIBRARIES WITH INTERNET SAFETY POLICY

AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A library covered by clause (i) that has in 

place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs (B) 

and (C) shall certify its compliance with subparagraphs (B) and (C) during each annual program 

application cycle under this subsection, except 

that with respect to the first program funding 

year after the effective date of this paragraph 

under section 1721(h) of the Children’s Internet 

Protection Act, the certifications shall be made not 

later than 120 days after the beginning of such 

first program funding year. 

(II) LIBRARIES WITHOUT INTERNET SAFETY POLICY AND TECHNOLOGY PROTECTION MEASURES IN

PLACE.—A library covered by clause (i) that does 

not have in place an Internet safety policy and 

technology protection measures meeting the requirements necessary for certification under subparagraphs (B) and (C)—

(aa) for the first program year after the effective date of this subsection in which it is 

applying for funds under this subsection, shall 

certify that it is undertaking such actions, including any necessary procurement procedures, to put in place an Internet safety policy 

and technology protection measures meeting 

the requirements necessary for certification 

under subparagraphs (B) and (C); and 

(bb) for the second program year after the 

effective date of this subsection in which it is 

applying for funds under this subsection, shall 

certify that it is in compliance with subparagraphs (B) and (C). 

Any library that is unable to certify compliance 

with such requirements in such second program 

year shall be ineligible for services at discount 

rates or funding in lieu of services at such rates 

under this subsection for such second year and all 

subsequent program years under this subsection, 


hmoore on PROD1PC68 with HMRPT
144 

until such time as such library comes into compliance with this paragraph. 

(III) WAIVERS.—Any library subject to subclause 

(II) that cannot come into compliance with subparagraphs (B) and (C) in such second year may 

seek a waiver of subclause (II)(bb) if State or local 

procurement rules or regulations or competitive 

bidding requirements prevent the making of the 

certification otherwise required by such subclause. 

A library, library board, or other authority with 

responsibility for administration of the library 

shall notify the Commission of the applicability of 

such subclause to the library. Such notice shall 

certify that the library in question will be brought 

into compliance before the start of the third program year after the effective date of this subsection in which the library is applying for funds 

under this subsection. 

(F) NONCOMPLIANCE.—

(i) FAILURE TO SUBMIT CERTIFICATION.—Any library 

that knowingly fails to comply with the application 

guidelines regarding the annual submission of certification required by this paragraph shall not be eligible 

for services at discount rates or funding in lieu of services at such rates under this subsection. 

(ii) FAILURE TO COMPLY WITH CERTIFICATION.—Any 

library that knowingly fails to ensure the use of its 

computers in accordance with a certification under 

subparagraphs (B) and (C) shall reimburse all funds 

and discounts received under this subsection for the 

period covered by such certification. 

(iii) REMEDY OF NONCOMPLIANCE.—

(I) FAILURE TO SUBMIT.—A library that has 

failed to submit a certification under clause (i) 

may remedy the failure by submitting the certification to which the failure relates. Upon submittal 

of such certification, the library shall be eligible 

for services at discount rates under this subsection. 

(II) FAILURE TO COMPLY.—A library that has 

failed to comply with a certification as described 

in clause (ii) may remedy the failure by ensuring 

the use of its computers in accordance with such 

certification. Upon submittal to the Commission of 

a certification or other appropriate evidence of 

such remedy, the library shall be eligible for services at discount rates under this subsection. 

(7) DEFINITIONS.—For purposes of this subsection: 

(A) ELEMENTARY AND SECONDARY SCHOOLS.—The term ‘‘elementary and secondary schools’’ means elementary 

schools and secondary schools, as defined in section 9101 

of the Elementary and Secondary Education Act of 1965. 

(B) HEALTH CARE PROVIDER.—The term ‘‘health care provider’’ means—


hmoore on PROD1PC68 with HMRPT
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(i) post-secondary educational institutions offering 

health care instruction, teaching hospitals, and medical schools; 

(ii) community health centers or health centers providing health care to migrants; 

(iii) local health departments or agencies; 

(iv) community mental health centers; 

(v) not-for-profit hospitals; 

(vi) rural health clinics; øand 

ø(vii) consortia of health care providers consisting of 

one or more entities described in clauses (i) through 

(vi).¿ 

(vii) not-for-profit nursing homes or skilled nursing 

facilities; 

(viii) critical access hospitals; 

(ix) emergency medical services facilities; 

(x) hospice providers; 

(xi) rural dialysis facilities; 

(xii) tribal health clinics; 

(xiii) not-for-profit dental offices; 

(xiv) school health clinics; 

(xv) residential treatment facilities; 

(xvi) rural pharmacies; 

(xvii) consortia of health care providers consisting of 

1 or more entities described in clauses (i) through (xv); 

and 

(xviii) any other entity the Commission determines—

(I) eligible to receive discounted telecommunications service under paragraph (1)(A); and 

(II) essential to the public health. 

(C) PUBLIC INSTITUTIONAL TELECOMMUNICATIONS USER.—

The term ‘‘public institutional telecommunications user’’

means an elementary or secondary school, a library, or a 

health care provider as those terms are defined in this 

paragraph. 

(D) MINOR.—The term ‘‘minor’’ means any individual 

who has not attained the age of 17 years. 

(E) OBSCENE.—The term ‘‘obscene’’ has the meaning 

given such term in section 1460 of title 18, United States 

Code. 

(F) CHILD PORNOGRAPHY.—The term ‘‘child pornography’’

has the meaning given such term in section 2256 of title 

18, United States Code. 

(G) HARMFUL TO MINORS.—The term ‘‘harmful to minors’’

means any picture, image, graphic image file, or other visual depiction that—

(i) taken as a whole and with respect to minors, appeals to a prurient interest in nudity, sex, or excretion; 

(ii) depicts, describes, or represents, in a patently offensive way with respect to what is suitable for minors, an actual or simulated sexual act or sexual contact, actual or simulated normal or perverted sexual 

acts, or a lewd exhibition of the genitals; and 


hmoore on PROD1PC68 with HMRPT
146 

(iii) taken as a whole, lacks serious literary, artistic, 

political, or scientific value as to minors. 

(H) SEXUAL ACT; SEXUAL CONTACT.—The terms ‘‘sexual 

act’’ and ‘‘sexual contact’’ have the meanings given such 

terms in section 2246 of title 18, United States Code. 

(I) TECHNOLOGY PROTECTION MEASURE.—The term ‘‘technology protection measure’’ means a specific technology 

that blocks or filters Internet access to the material covered by a certification under paragraph (5) or (6) to which 

such certification relates. 

(i) CONSUMER PROTECTION.—The Commission and the States 

should ensure that universal service is available at rates that are 

just, reasonable, and affordable. 

(j) LIFELINE ASSISTANCE.—Nothing in this section shall affect the 

collection, distribution, or administration of the Lifeline Assistance 

Program provided for by the Commission under regulations set 

forth in section 69.117 of title 47, Code of Federal Regulations, and 

other related sections of such title. 

(k) SUBSIDY OF COMPETITIVE SERVICES PROHIBITED.—A telecommunications carrier may not use services that are not competitive to subsidize services that are subject to competition. The Commission, with respect to interstate services, and the States, with respect to intrastate services, shall establish any necessary cost allocation rules, accounting safeguards, and guidelines to ensure that 

services included in the definition of universal service bear no more 

than a reasonable share of the joint and common costs of facilities 

used to provide those services. 

(l) INTERNET SAFETY POLICY REQUIREMENT FOR SCHOOLS AND LIBRARIES.—

(1) IN GENERAL.—In carrying out its responsibilities under 

subsection (h), each school or library to which subsection (h) 

applies shall—

(A) adopt and implement an Internet safety policy that 

addresses— (i) access by minors to inappropriate matter on the 

Internet and World Wide Web; 

(ii) the safety and security of minors when using 

electronic mail, chat rooms, and other forms of direct 

electronic communications; 

(iii) unauthorized access, including so-called ‘‘hacking’’, and other unlawful activities by minors online; 

(iv) unauthorized disclosure, use, and dissemination 

of personal identification information regarding minors; and 

(v) measures designed to restrict minors’ access to 

materials harmful to minors; and 

(B) provide reasonable public notice and hold at least 

one public hearing or meeting to address the proposed 

Internet safety policy. 

(2) LOCAL DETERMINATION OF CONTENT.—A determination regarding what matter is inappropriate for minors shall be made 

by the school board, local educational agency, library, or other 

authority responsible for making the determination. No agency 

or instrumentality of the United States Government may—


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(A) establish criteria for making such determination; 

(B) review the determination made by the certifying 

school, school board, local educational agency, library, or 

other authority; or 

(C) consider the criteria employed by the certifying 

school, school board, local educational agency, library, or 

other authority in the administration of subsection 

(h)(1)(B). 

(3) AVAILABILITY FOR REVIEW.—Each Internet safety policy 

adopted under this subsection shall be made available to the 

Commission, upon request of the Commission, by the school, 

school board, local educational agency, library, or other authority responsible for adopting such Internet safety policy for purposes of the review of such Internet safety policy by the Commission. 

(4) EFFECTIVE DATE.—This subsection shall apply with respect to schools and libraries on or after the date that is 120 

days after the date of the enactment of the Children’s Internet 

Protection Act. 

(m) NETWORK TRAFFIC IDENTIFICATION ACCOUNTABILITY STAND- ARDS.—

(1) NETWORK TRAFFIC IDENTIFICATION ACCOUNTABILITY

STANDARDS.—A provider of voice communications services shall 

ensure, to the degree technically possible, that all traffic that 

originates on its network contains, or, in the case of nonoriginated traffic, preserves, sufficient information to allow for traffic identification by other voice communications service providers that transport or terminate such traffic, including information on the identity of the originating provider, the class of 

service of the originating line as required under Commission orders in effect on the date of enactment of the Internet and Universal Service Act of 2006, the calling and called parties, and 

such other information as the Commission deems appropriate. 

Except as otherwise permitted by the Commission, a provider 

that transports traffic between communications service providers shall signal-forward without altering call signaling information it receives from another provider. 

(2) NETWORK TRAFFIC IDENTIFICATION RULEMAKING.—The 

Commission, in consultation with the State commissions, shall 

initiate a single rulemaking no later than 180 days after the 

date of enactment of the Internet and Universal Service Act of 

2006 to establish rules and enforcement provisions for traffic 

identification. 

(3) NETWORK TRAFFIC IDENTIFICATION ENFORCEMENT.—The 

Commission shall adopt and enforce clear penalties, fines, and 

sanctions under this section. 

(4) VOICE COMMUNICATIONS SERVICE DEFINED.—In this subsection, the term ‘‘voice communications service’’ means telecommunications service or IP-enabled voice service (as defined 

in section 254(d)(6)(E)). 

(n) AUDITS.—The Commission shall provide for random periodic 

audits, to be administered by the Universal Service Administrative 

Company, of each recipient of funds collected pursuant to subsection 

(d) with respect to its receipt and use of such support. With respect 


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to an eligible communications carrier, the audit shall include a review of its relative cost to provide service compared to other, similarly situated, universal service recipients based on their respective 

service areas (as defined in section 214(e)(5)). The Commission shall 

take such remedial action as it deems necessary if any audit under 

this subsection reveals improper use of universal service support, including the imposition of fines or other appropriate remedies. 

SEC. 254A. BROADBAND FOR UNSERVED AREAS PROGRAM. 

(a) PROGRAM ESTABLISHED.— (1) IN GENERAL.—The Commission shall establish a new separate program to be known as the ‘‘Broadband for Unserved 

Areas Program’’. (2) PURPOSE.—The purpose of the Program is to provide financial assistance for the deployment of broadband equipment 

and infrastructure necessary for the deployment of broadband 

service (including installation costs) to unserved areas throughout the United States. 

(3) FUNDING.—The Program shall be funded by amounts collected under section 254(d). 

(b) IMPLEMENTATION.— (1) IN GENERAL.—Within 180 days after the date of enactment 

of the Internet and Universal Service Act of 2006, the Commission shall issue rules establishing— (A) guidelines for determining which areas may be considered to be unserved areas for purposes of this section, 

which may be portions of service areas or study areas; 

(B) criteria for determining which facilities-based providers of broadband service and which projects are eligible 

for support from the Program; 

(C) procedural guidelines for awarding assistance from 

the Program on a merit-based and competitive basis; 

(D) guidelines for application procedures, accounting and 

reporting requirements, and other appropriate fiscal controls for assistance made available from the Program, including random audits with respect to the receipt and use 

of funds under this section; 

(E) a procedure for making funds in the Program available among the several States on an equitable basis; and 

(F) the Universal Service Administrative Company as the 

administrator of the Program, subject to Commission rules 

and oversight. 

(2) FACILITIES-BASED PROVIDER ELIGIBILITY.—For purposes of 

this section, satellite broadband service providers, terrestrial 

wireless broadband service providers, and wireline broadband 

service providers shall be considered to be facilities-based providers eligible for support from the Program. The deployment of 

satellite broadband service customer premises equipment shall 

be considered to be a project eligible for support from the Program. 

(3) DE MINIMIS SUBSCRIBERSHIP EXCEPTION.—The availability of satellite broadband service in an area shall not preclude the designation of that area as an unserved area if the 

Commission determines that subscribership to broadband satellite service in the area is de minimis. 


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(4) MULTIPLE AREAS WITHIN STATE.—There may be more than 

1 unserved area within a State. 

(c) LIMITATIONS.—

(1) ANNUAL AMOUNT.—Amounts obligated or expended under 

subsection (b) for any fiscal year may not exceed $500,000,000. 

(2) UNOBLIGATED BALANCES.—To the extent that the full 

amount in the program is not obligated for financial assistance 

under this section within a fiscal year, any unobligated balance 

shall be used to support universal service under section 254. 

(3) SUPPORT LIMITED TO SINGLE FACILITIES-BASED PROVIDER

PER UNSERVED AREA.—Assistance under this section may be 

provided only to 1 facilities-based provider of broadband service 

in each unserved area. 

(d) APPLICATION WITH SECTION 410.—Section 410 shall not apply 

to the Broadband for Unserved Areas Program. 

(e) BROADBAND SERVICE DEFINED.—

(1) IN GENERAL.—In this section, except to the extent revised 

by the Commission under paragraph (2), the term ‘‘broadband 

service’’ means any service used for transmission of information 

of a user’s choosing at a transmission speed of at least 400 kilobits per second in at least 1 direction, regardless of the transmission medium or technology employed, that connects to the 

public Internet directly—

(A) to the public; or 

(B) to such classes of users as to be effectively available 

directly to the public. 

(2) ANNUAL REVIEW OF TRANSMISSION SPEED.—The Commission shall review the transmission speed component of the definition in paragraph (1) biannually and revise that component 

as appropriate. 

(f) REPORT.—The Commission shall transmit an annual report to 

the Senate Committee on Commerce, Science, and Transportation 

and the House of Representatives Committee on Energy and Commerce making recommendations for an increase or decrease, if necessary, in the amounts credited to the program under this section. 

PART III. SPECIAL PROVISIONS CONCERNING 

BELL OPERATING COMPANIES 

SEC. 276. PROVISION OF PAYPHONE SERVICE. 

[47 U.S.C. 276] 

(a) NONDISCRIMINATION SAFEGUARDS.—After the effective date of 

the rules prescribed pursuant to subsection (b), any Bell operating 

company that provides payphone service—

(1) shall not subsidize its payphone service directly or indirectly from its telephone exchange service operations or its exchange access operations; and 

(2) shall not prefer or discriminate in favor of its payphone 

service. 

(b) REGULATIONS.— (1) CONTENTS OF REGULATIONS.—In order to promote competition among payphone service providers and promote the 

widespread deployment of payphone services to the benefit of 


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the general public, within 9 months after the date of enactment of the Telecommunications Act of 1996, the Commission 

shall take all actions necessary (including any reconsideration) 

to prescribe regulations that— (A) establish a per call compensation plan to ensure that 

all payphone service providers are fairly compensated for 

each and every completed intrastate and interstate call 

using their payphone, except that emergency calls and 

telecommunications relay service calls for hearing disabled 

individuals shall not be subject to such compensation; 

(B) discontinue the intrastate and interstate carrier access charge payphone service elements and payments in effect on such date of enactment, and all intrastate and 

interstate payphone subsidies from basic exchange and exchange access revenues, in favor of a compensation plan as 

specified in subparagraph (A); 

(C) prescribe a set of nonstructural safeguards for Bell 

operating company payphone service to implement the provisions of paragraphs (1) and (2) of subsection (a), which 

safeguards shall, at a minimum, include the nonstructural 

safeguards equal to those adopted in the Computer Inquiry-III (CC Docket No. 90–623) proceeding; 

(D) provide for Bell operating company payphone service 

providers to have the same right that independent 

payphone providers have to negotiate with the location 

provider on the location provider’s selecting and contracting with, and, subject to the terms of any agreement 

with the location provider, to select and contract with, the 

carriers that carry interLATA calls from their payphones, 

unless the Commission determines in the rulemaking pursuant to this section that it is not in the public interest; 

and 

(E) provide for all payphone service providers to have 

the right to negotiate with the location provider on the location provider’s selecting and contracting with, and, subject to the terms of any agreement with the location provider, to select and contract with, the carriers that carry 

intraLATA calls from their payphones. 

(2) PUBLIC INTEREST TELEPHONES.—In the rulemaking conducted pursuant to paragraph (1), the Commission shall determine whether public interest payphones, which are provided in 

the interest of public health, safety, and welfare, in locations 

where there would otherwise not be a payphone, should be 

maintained, and if so, ensure that such public interest 

payphones are supported fairly and equitably. 

(3) EXISTING CONTRACTS.—Nothing in this section shall affect 

any existing contracts between location providers and 

payphone service providers or interLATA or intraLATA carriers that are in force and effect as of the date of enactment 

of the Telecommunications Act of 1996. 

(c) STATE PREEMPTION.—To the extent that any State requirements are inconsistent with the Commission’s regulations, the 

Commission’s regulations on such matters shall preempt such 

State requirements. 


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(d) øDEFINITION.—¿ DEFINITIONS.—As used in this section, the 

term ‘‘payphone service’’ means the provision of public or semi-public pay telephones, the provision of inmate telephone service in correctional institutions, and any ancillary øservices.¿ services, and 

the term ‘‘call’’ includes any communication coming within the definition of ‘‘communications service’’ (as defined in section 254(d)) 

when it originated from a payphone. 

TITLE III—SPECIAL 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; 

(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; 


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(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 application 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—

(1) false or deceptive signals or communications, or 

(2) a call signal or letter which has not been assigned by 

proper authority to the station he is operating; or 


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(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 

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 


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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 

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) Prescribe—

(1) on the basis of recommendations from an advisory 

committee established by the Commission in accordance 

with section 551(b)(2) of the Telecommunications Act of 

1996, guidelines and recommended procedures for the 

identification and rating of video programming that contains sexual, violent, or other indecent material about 

which parents should be informed before it is displayed to 

children: Provided, That nothing in this paragraph shall 

be construed to authorize any rating of video programming 

on the basis of its political or religious content; and 

(2) with respect to any video programming that has been 

rated, and in consultation with the television industry, 

rules requiring distributors of such video programming to 

transmit such rating to permit parents to block the display 


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of video programming that they have determined is inappropriate for their children. 

(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) Have authority with respect to digital television receivers to 

adopt such regulations and certifications as are necessary to implement the Report and Order in the matter of Digital Broadcast Content Protection, FCC 03–273, as ratified by the Congress in section 

102(b) of the Consumer Competition and Broadband Promotion Act, 

with the exclusive purpose of limiting the indiscriminate redistribution of digital television content over the Internet or similar distribution platforms, including the authority to reconsider, amend, 

repeal, supplement, and otherwise modify any such regulations and 

certifications, in whole or in part, only for that purpose. 

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

After March 1, 2007, it is unlawful for a manufacturer or importer to import into the United States or ship in interstate commerce for sale or resale to the public, a television broadcast receiver 

(as defined in section 15.3(w) of the Commission’s regulations (47 

C.F.R. 15.3(w))) that is not equipped with a tuner capable of receiving and decoding digital signals. 

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. 


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(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 

(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 


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

time prior to the day of Commission grant thereof without 

hearing or the day of formal designation thereof for hearing; 

except that with respect to any classification of applications, 

the Commission from time to time by rule may specify a shorter period (no less than thirty days following the issuance of 

public notice by the Commission of the acceptance for filing of 

such application or of any substantial amendment thereof), 

which shorter period shall be reasonably related to the time 

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

applicant. The petition shall contain specific allegations of fact 

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

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

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

supported by affidavit of a person or persons with personal 

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

thereof shall similarly be supported by affidavit. 

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

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

fact and that a grant of the application would be consistent 

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

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

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

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

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

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

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

provided in subsection (e). 

(e) 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 introducVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00161 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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tion 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 

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; 


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(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). 

(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. 


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

1997. 

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

with respect to licenses or permits for stations described in 

section 397(6) of this Act. 

(j) USE OF COMPETITIVE BIDDING.— (1) GENERAL AUTHORITY.—If, consistent with the obligations 

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

are accepted for any initial license or construction permit, 

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

shall grant the license or permit to a qualified applicant 

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

(2) EXEMPTIONS.—The competitive bidding authority granted 

by this subsection shall not apply to licenses or construction 

permits issued by the Commission—

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

and non-government entities and including emergency 

road services provided by not-for-profit organizations, 

that—

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

property; and 

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

(B) for initial licenses or construction permits for digital 

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

or 

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

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

class of licenses or permits that the Commission grants 

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

alternative methodologies under appropriate circumstances. 

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

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

within a single bidding round. In identifying classes of licenses 

and permits to be issued by competitive bidding, in specifying 

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

subsection, the Commission shall include safeguards to protect 

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

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

the following objectives: 

(A) the development and rapid deployment of new technologies, products, and services for the benefit of the pubVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00164 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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lic, including those residing in rural areas, without administrative or judicial delays; 

(B) promoting economic opportunity and competition and 

ensuring that new and innovative technologies are readily 

accessible to the American people by avoiding excessive 

concentration of licenses and by disseminating licenses 

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

by members of minority groups and women; 

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

public spectrum resource made available for commercial 

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

(D) efficient and intensive use of the electromagnetic 

spectrum; 

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

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

and comment on proposed auction procedures; and 

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

availability of equipment for the relevant services; and 

(F) for any auction of eligible frequencies described in 

section 113(g)(2) of the National Telecommunications and 

Information Administration Organization Act (47 U.S.C. 

923(g)(2)), the recovery of 110 percent of estimated relocation costs as provided to the Commission pursuant to section 113(g)(4) of such Act. 

(4) CONTENTS OF REGULATIONS.—In prescribing regulations 

pursuant to paragraph (3), the Commission shall— (A) consider alternative payment schedules and methods 

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

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

schedules and methods; 

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

ensure prompt delivery of service to rural areas, to prevent 

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

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

necessity, the purposes of this Act, and the characteristics 

of the proposed øservice, prescribe¿ service—

(i) prescribe area designations and bandwidth assignments that promote ø(i) an¿ (I) an equitable distribution of licenses and services among geographic 

areas, ø(ii)¿ (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 ø(iii)¿ (III) 


hmoore on PROD1PC68 with HMRPT
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investment in and rapid deployment of new technologies and ƒservices;≈ services; and 

(ii) consider the use of licensing spectrum in smaller 

geographic areas in order to encourage wireless deployment and build-out in rural and underserved areas of 

licensing spectrum in smaller geographic areas; 

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

and women are given the opportunity to participate in the 

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

(E) require such transfer disclosures and antitrafficking 

restrictions and payment schedules as may be necessary to 

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

(F) prescribe methods by which a reasonable reserve 

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

determines that such a reserve price or minimum bid is 

not in the public interest. 

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

be permitted to participate in a system of competitive bidding 

pursuant to this subsection unless such bidder submits such 

information and assurances as the Commission may require to 

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

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

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

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

in the use of competitive bidding, shall—

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

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

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

(C) diminish the authority of the Commission under the 

other provisions of this Act to regulate or reclaim spectrum 

licenses; 

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

that apply to other licenses within the same service that 

were not issued pursuant to this subsection; 

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

solutions, negotiation, threshold qualifications, service regVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00166 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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ulations, and other means in order to avoid mutual exclusivity in application and licensing proceedings; 

(F) be construed to prohibit the Commission from 

issuing nationwide, regional, or local licenses or permits; 

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

service or technology; or 

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

permit of the obligation to pay charges imposed pursuant 

to section 8 of this Act. 

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

(A) CONSIDERATION PROHIBITED.—In making a decision 

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

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

and necessity on the expectation of Federal revenues from 

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

(B) CONSIDERATION LIMITED.—In prescribing regulations 

pursuant to paragraph (4)(A) of this subsection, the Commission may not base a finding of public interest, convenience, and necessity solely or predominantly on the expectation of Federal revenues from the use of a system of 

competitive bidding under this subsection. 

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

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

(8) TREATMENT OF REVENUES.— (A) GENERAL RULE.—Except as provided in subparagraphs (B), (D), and (E), 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 


hmoore on PROD1PC68 with HMRPT
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purposes of conducting competitive bidding under this subsection during such second preceding fiscal year. 

(C) DEPOSIT AND USE OF AUCTION ESCROW ACCOUNTS.—

Any deposits the Commission may require for the qualification of any person to bid in a system of competitive bidding pursuant to this subsection shall be deposited in an 

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

(after consultation with the Secretary of the Treasury). 

Within 45 days following the conclusion of the competitive 

bidding—

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

the Treasury, except as otherwise provided in subparagraph (E)(ii); 

(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.—Cash proceeds attributable to the auction of any eligible frequencies described in section 113(g)(2) of the National Telecommunications and Information Administration Organization Act 

(47 U.S.C. 923(g)(2)) shall be deposited in the Spectrum 

Relocation Fund established under section 118 of such Act, 

and shall be available in accordance with that section. 

(E) TRANSFER OF RECEIPTS.—

(i) ESTABLISHMENT OF FUND.—There is established 

in the Treasury of the United States a fund to be 

known as the Digital Television Transition and Public 

Safety Fund. 

(ii) PROCEEDS FOR FUNDS.—Notwithstanding subparagraph (A), the proceeds (including deposits and 

upfront payments from successful bidders) from the 

use of a competitive bidding system under this subsection with respect to recovered analog spectrum 

shall be deposited in the Digital Television Transition 

and Public Safety Fund. 

(iii) TRANSFER OF AMOUNT TO TREASURY.—On September 30, 2009, the Secretary shall transfer 

$7,363,000,000 from the Digital Television Transition 

and Public Safety Fund to the general fund of the 

Treasury. 

(iv) RECOVERED ANALOG SPECTRUM.—For purposes of 

clause (i), the term ‘‘recovered analog spectrum’’ has 

the meaning provided in paragraph (15)(C)(vi). 

(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 


hmoore on PROD1PC68 with HMRPT
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(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, 2011. 

(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; 


hmoore on PROD1PC68 with HMRPT
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(B) describing the methodologies established by the 

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

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

(D) evaluating whether and to what extent—

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

radio spectrum licenses; 

(ii) competitive bidding facilitated the introduction 

of new spectrum-based technologies and the entry of 

new companies into the telecommunications market; 

(iii) competitive bidding methodologies have secured 

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

and 

(iv) small businesses, rural telephone companies, 

and businesses owned by members of minority groups 

and women were able to participate successfully in the 

competitive bidding process; and 

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

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

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

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

who make significant contributions to the development of 

a new telecommunications service or technology, except in 

accordance with the requirements of this paragraph. 

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

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

resource made available to such person by requiring such 

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

pay a sum determined by—

(i) identifying the winning bids for the licenses that 

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

usage restrictions, and other technical characteristics 

to the license awarded to such person, and excluding 

licenses that the Commission determines are subject 

to bidding anomalies due to the award of preferential 

treatment; 

(ii) dividing each such winning bid by the population 

of its service area (hereinafter referred to as the per 

capita bid amount); 

(iii) computing the average of the per capita bid 

amounts for the licenses identified under clause (i); 

(iv) reducing such average amount by 15 percent; 

and 

(v) multiplying the amount determined under clause 

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

obtained by such person. 


hmoore on PROD1PC68 with HMRPT
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(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 APPLICA- TIONS.—In applying this paragraph to any broadband licenses in the personal communications service awarded 

pursuant to the preferential treatment accorded by the 

Federal Communications Commission in the Third Report 

and Order in General Docket 90–314 (FCC 93–550, released February 3, 1994)— (i) the Commission shall not reconsider the award of 

preferences in such Third Report and Order, and the 

Commission shall not delay the grant of licenses based 

on such awards more than 15 days following the date 

of enactment of this paragraph, and the award of such 

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

(ii) the Commission shall not alter the bandwidth or 

service areas designated for such licenses in such 

Third Report and Order; 

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

shall use, as the most reasonably comparable licenses 

for purposes of subparagraph (B)(i), the broadband liVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00171 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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censes in the personal communications service for 

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

population) in which no applicant has obtained preferential treatment; 

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

over a period of 5 years, subject to— (I) the payment only of interest on unpaid balances during the first 2 years, commencing not 

later than 30 days after the award of the license 

(including any preferential treatment used in 

making such award) is final and no longer subject 

to administrative or judicial review, except that no 

such payment shall be required prior to the date 

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

(II) payment of the unpaid balance and interest 

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

(v) the Commission shall recover with respect to 

broadband licenses in the personal communications 

service an amount under this paragraph that is equal 

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

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

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

amount among the holders of such licenses based on 

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

amounts required to be collected under clause (v) the 

interest on unpaid balances required to be collected 

under clause (iv). 

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

provide preferential treatment in licensing procedures (by 

precluding the filing of mutually exclusive applications) to 

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

shall expire on the date of enactment of the Balanced 

Budget Act of 1997. 

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

on the date of its enactment and apply to any licenses 

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

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

make significant contributions to the development of a new 

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

(14) AUCTION OF RECAPTURED BROADCAST TELEVISION SPEC- TRUM.—

(A) LIMITATIONS ON TERMS OF TERRESTRIAL TELEVISION

BROADCAST LICENSES.—A full-power television broadcast license that authorizes analog television service may not be 


hmoore on PROD1PC68 with HMRPT
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renewed to authorize such service for a period that extends 

beyond February 17, 2009. 

(B) SPECTRUM REVERSION AND RESALE.— (i) The Commission shall— (I) ensure that, as licenses for analog television 

service expire pursuant to subparagraph (A), each 

licensee shall cease using electromagnetic spectrum assigned to such service according to the 

Commission’s direction; and 

(II) reclaim and organize the electromagnetic 

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

(ii) Licensees for new services occupying spectrum 

reclaimed pursuant to clause (i) shall be assigned in 

accordance with this subsection. 

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

be used for any digital television service where the grade 

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

determined using the 1990 decennial census), shall not—

(i) preclude any party from being a qualified bidder 

for such spectrum on the basis of—

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

73.3555(b)); or 

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

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

that is a winning bidder in a competitive bidding for 

such spectrum from using such spectrum for digital 

television service. 

(D) BORDER STATIONS.—An analog broadcast television 

station, whose programming is broadcast entirely in the 

Spanish-language, that prior to February 17, 2009, is licensed by the Commission to serve communities located 

within 50 miles of the common border with the United 

Mexican States and can establish to the satisfaction of the 

Federal Communications Commission that its continued 

operation in analog is in the public interest, shall be entitled to the renewal of its television broadcast license authorizing analog television service and to operate on a 

channel between 2 and 51 that complies with the following 

provisions through February 17, 2011: 

(i) The channel used for analog operation may not—

(I) prevent the auction of recovered spectrum, as 

provided for in paragraph (15) of this subsection; 

(II) prevent the use of recovered spectrum by 

public safety services, as provided for by section 

337(a)(1) of this Act; and 

(III) encumber nor interfere with any channels 

reserved for public safety use as designated in FCC 

ET Docket No. 97–157. 


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(ii) The station shall operate on its assigned analog 

channel as of February 16, 2009, if that channel— (I) is designated between 2 and 51; 

(II) has not been assigned to the station itself or 

another station for digital operation after the digital transition; and 

(III) could be used by that station for analog operation after the digital transition without causing 

interference to previously authorized digital television stations. 

(iii) If the station does not meet the criteria of clause 

(ii) for operation on its assigned analog channel as of 

February 16, 2009, the station may request, and the 

Commission shall promptly act upon such request, to 

be assigned a new channel for its analog operation, if 

the requested channel— (I) is shall between channels 2 and 51; and 

(II) allows the station to operate on a primary 

basis without causing interference to other analog 

or digital television stations or to stations licensed 

to operate in other radio services that also operate 

on channels between 2 and 51. Where mutually exclusive applications are submitted for analog television operation on a channel under the provisions 

of this section, the Commission shall award the 

authority to use that channel through the application of the procedures of this subsection and giving 

due consideration to the alternative resolution procedures of paragraph (6)(E) of this subsection. 

(iv) The station shall, from February 16, 2009, 

through February 17, 2011, regularly broadcast Spanish-language public service announcements that serve 

to educate the station’s viewers to the digital transition 

and the need to secure digital converters or monitors so 

that the station’s viewers can receive the station’s digital signal after February 17, 2011. 

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

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

determine the timing of and deadlines for the conduct of 

competitive bidding under this subsection, including the 

timing of and deadlines for qualifying for bidding; conducting auctions; collecting, depositing, and reporting revenues; and completing licensing processes and assigning licenses. 

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

Except as provided in subparagraph (C), the Commission 

shall not commence or conduct auctions 31 and 44 on June 

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

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

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

apply to the auction of—


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

746 megahertz; or 

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

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

licenses described in clause (i) shall be those entities 

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

as part of the original auction 44 short form filing 

deadline. 

(iii) AUCTION DEADLINES FOR EXCEPTED BLOCKS.—

Notwithstanding subparagraph (B), the auction of the 

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

shall be commenced no earlier than August 19, 2002, 

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

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

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

(I) specifying when the Commission intends to 

reschedule auctions 31 and 44 (other than the 

blocks excepted by clause (i)); and 

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

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

(v) ADDITIONAL DEADLINES FOR RECOVERED ANALOG

SPECTRUM.—Notwithstanding subparagraph (B), the 

Commission shall conduct the auction of the licenses 

for recovered analog spectrum by commencing the bidding not later than January 28, 2008, and shall deposit the proceeds of such auction in accordance with 

paragraph (8)(E)(ii) not later than June 30, 2008. 

(vi) RECOVERED ANALOG SPECTRUM.—For purposes of 

clause (v), the term ‘‘recovered analog spectrum’’ means the spectrum between channels 52 and 69, inclusive (between frequencies 698 and 806 megahertz, 

inclusive) reclaimed from analog television service 

broadcasting under paragraph (14), other than— (I) the spectrum required by section 337 to be 

made available for public safety services; and 

(II) the spectrum auctioned prior to the date of 

enactment of the Digital Television Transition and 

Public Safety Act of 2005. 

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

date of enactment of this paragraph, the Commission shall 

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

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

payments made by such bidders for such licenses. 


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(16) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE FRE- QUENCIES.— (A) SPECIAL REGULATIONS.—The Commission shall revise 

the regulations prescribed under paragraph (4)(F) of this 

subsection to prescribe methods by which the total cash 

proceeds from any auction of eligible frequencies described 

in section 113(g)(2) of the National Telecommunications 

and Information Administration Organization Act (47 

U.S.C. 923(g)(2)) shall at least equal 110 percent of the 

total estimated relocation costs provided to the Commission pursuant to section 113(g)(4) of such Act. 

(B) CONCLUSION OF AUCTIONS CONTINGENT ON MINIMUM

PROCEEDS.—The Commission shall not conclude any auction of eligible frequencies described in section 113(g)(2) of 

such Act if the total cash proceeds attributable to such 

spectrum are less than 110 percent of the total estimated 

relocation costs provided to the Commission pursuant to 

section 113(g)(4) of such Act. If the Commission is unable 

to conclude an auction for the foregoing reason, the Commission shall cancel the auction, return within 45 days 

after the auction cancellation date any deposits from participating bidders held in escrow, and absolve such bidders 

from any obligation to the United States to bid in any subsequent reauction of such spectrum. 

(C) AUTHORITY TO ISSUE PRIOR TO DEAUTHORIZATION.—In 

any auction conducted under the regulations required by 

subparagraph (A), the Commission may grant a license assigned for the use of eligible frequencies prior to the termination of an eligible Federal entity’s authorization. However, the Commission shall condition such license by requiring that the licensee cannot cause harmful interference to such Federal entity until such entity’s authorization has been terminated by the National Telecommunications and Information Administration. 

(17) REPORT ON THE IMPACT OF SECONDARY MARKET TRANS- ACTIONS.—Not later than 2 years after the date of enactment of 

the Rural Wireless and Broadband Service Act of 2006, and 

every 2 years thereafter until the database developed under 

paragraph (18) is available to the public, the Commission shall 

submit a report to Congress analyzing and evaluating the impact of the Commission’s— (A) spectrum leasing; and 

(B) spectrum partitioning and disaggregation rules in facilitating, through the development of secondary markets, 

the deployment of spectrum-based services to the public, 

particularly to those members of the public residing in 

rural and underserved areas. 

(18) PUBLICLY ACCESSIBLE INTEGRATED DATA BASE.—The 

Commission, in coordination with the Assistant Secretary of 

Commerce for Communications and Information, shall develop 

an integrated national database, accessible by the public, that 

identifies by name, address, and contact information for each 

licensee, the spectrum assigned to each such licensee, and the 

geographic area to which the spectrum is assigned or licensed. 


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The database may not provide public access to information protected from public disclosure under chapter 5 of title 5, United 

States Code, or the disclosure of which would compromise national security. 

(k) BROADCAST STATION RENEWAL PROCEDURES.— (1) STANDARDS FOR RENEWAL.—If the licensee of a broadcast 

station submits an application to the Commission for renewal 

of such license, the Commission shall grant the application if 

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

of its license— (A) the station has served the public interest, convenience, and necessity; 

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

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

and 

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

of this Act or the rules and regulations of the Commission 

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

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

this subsection, the Commission may deny the application for 

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

renewal for a term less than the maximum otherwise permitted. 

(3) STANDARDS FOR DENIAL.—If the Commission determines, 

after notice and opportunity for a hearing as provided in subsection (e), that a licensee has failed to meet the requirements 

specified in paragraph (1) and that no mitigating factors justify 

the imposition of lesser sanctions, the Commission shall— (A) issue an order denying the renewal application filed 

by such licensee under section 308; and 

(B) only thereafter accept and consider such applications 

for a construction permit as may be filed under section 308 

specifying the channel or broadcasting facilities of the 

former licensee. 

(4) COMPETITOR CONSIDERATION PROHIBITED.—In making the 

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

to a person other than the renewal applicant. 

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

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

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

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

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


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

SEC. 325. FALSE, FRAUDULENT, OR UNAUTHORIZED TRANSMISSIONS. 

[47 U.S.C. 325] 

(a) FALSE DISTRESS SIGNALS; REBROADCASTING PROGRAMS.—No 

person within the jurisdiction of the United States shall knowingly 

utter or transmit, or cause to be uttered or transmitted, any false 

or fraudulent signal of distress, or communication relating thereto, 

nor shall any broadcasting station rebroadcast the program or any 

part thereof of another broadcasting station without the express 

authority of the originating station. 

(b) CONSENT TO RETRANSMISSION OF BROADCASTING STATION SIGNALS.—

(1) No øcable system¿ video service provider or other multichannel video programming distributor shall retransmit the 

signal of a broadcasting station, or any part thereof, except—

(A) with the express authority of the originating station; 

(B) under section 614, in the case of a station electing, 

in accordance with this subsection, to assert the right to 

carriage under such section; or 

(C) under section 338, in the case of a station electing, 

in accordance with this subsection, to assert the right to 

carriage under such section. 

(2) This subsection shall not apply—

(A) to retransmission of the signal of a noncommercial 

television broadcast station; 

(B) to retransmission of the signal of a television broadcast station outside the station’s local market by a satellite 

carrier directly to its subscribers, if—

(i) such station was a superstation on May 1, 1991; 

(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; 

and 

(iii) the satellite carrier complies with any network 

nonduplication, syndicated exclusivity, and sports 

blackout rules adopted by the Commission under section 339(b) of this Act; 

(C) until December 31, 2009, to retransmission of the 

signals of network stations directly to a home satellite antenna, if the subscriber receiving the signal—

(i) is located in an area outside the local market of 

such stations; and 

(ii) resides in an unserved household; 

(D) to retransmission by a cable operator or other multichannel video provider, other than a satellite carrier, of 

the signal of a television broadcast station outside the station’s local market if such signal was obtained from a satellite carrier and—

(i) the originating station was a superstation on May 

1, 1991; and 


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(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; or 

(E) during the 6-month period beginning on the date of 

the enactment of the Satellite Home Viewer Improvement 

Act of 1999, to the retransmission of the signal of a television broadcast station within the station’s local market 

by a satellite carrier directly to its subscribers under the 

statutory license of section 122 of title 17, United States 

Code. The term ‘‘video service provider’’ has the meaning 

given it in section 602(25) of this Act. 

For purposes of this paragraph, the terms ‘‘satellite carrier’’ and ‘‘superstation’’ have the meanings given those terms, respectively, in section 119(d) of title 17, United States Code, as 

in effect on the date of the enactment of the Cable Television 

Consumer Protection and Competition Act of 1992, the term 

‘‘unserved household’’ has the meaning given that term under 

section 119(d) of such title, and the term ‘‘local market’’ has 

the meaning given that term in section 122(j) of such title. 

(3)(A) Within 45 days after the date of enactment of the 

Cable Television Consumer Protection and Competition Act of 

1992, the Commission shall commence a rulemaking proceeding to establish regulations to govern the exercise by television broadcast stations of the right to grant retransmission 

consent under this subsection and of the right to signal carriage under section 614, and such other regulations as are necessary to administer the limitations contained in paragraph 

(2). The Commission shall consider in such proceeding the impact that the grant of retransmission consent by television stations may have on the rates for the basic service tier and shall 

ensure that the regulations prescribed under this subsection do 

not conflict with the Commission’s obligation under section 

623(b)(1) to ensure that the rates for the basic service tier are 

reasonable. Such rulemaking proceeding shall be completed 

within 180 days after the date of enactment of the Cable Television Consumer Protection and Competition Act of 1992. 

(B) The regulations required by subparagraph (A) shall 

require that television stations, within one year after the 

date of enactment of the Cable Television Consumer Protection and Competition Act of 1992 and every three years 

thereafter, make an election between the right to grant retransmission consent under this subsection and the right 

to signal carriage under section 614. If there is more than 

one cable system which services the same geographic area, 

a station’s election shall apply to all such cable systems. 

(C) The Commission shall commence a rulemaking proceeding to revise the regulations governing the exercise by 

television broadcast stations of the right to grant retransmission consent under this subsection, and such other regulations as are necessary to administer the limitations 

contained in paragraph (2). Such regulations shall—

(i) establish election time periods that correspond 

with those regulations adopted under subparagraph 

(B) of this paragraph; 


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(ii) until January 1, 2010, prohibit a television 

broadcast station that provides retransmission consent 

from engaging in exclusive contracts for carriage or 

failing to negotiate in good faith, and it shall not be 

a failure to negotiate in good faith if the television 

broadcast station enters into retransmission consent 

agreements containing different terms and conditions, 

including price terms, with different multichannel 

video programming distributors if such different terms 

and conditions are based on competitive marketplace 

considerations; and 

(iii) until January 1, 2010, prohibit a multichannel 

video programming distributor from failing to negotiate in good faith for retransmission consent under 

this section, and it shall not be a failure to negotiate 

in good faith if the distributor enters into retransmission consent agreements containing different terms 

and conditions, including price terms, with different 

broadcast stations if such different terms and conditions are based on competitive marketplace considerations. 

(4) If an originating television station elects under paragraph 

(3)(B) to exercise its right to grant retransmission consent 

under this subsection with respect to a cable system, the provisions of section 614 shall not apply to the carriage of the signal 

of such station by such cable system. If an originating television station elects under paragraph (3)(C) to exercise its right 

to grant retransmission consent under this subsection with respect to a satellite carrier, section 338 shall not apply to the 

carriage of the signal of such station by such satellite carrier. 

(5) The exercise by a television broadcast station of the right 

to grant retransmission consent under this subsection shall not 

interfere with or supersede the rights under section 338, 614, 

or 615 of any station electing to assert the right to signal carriage under that section. 

(6) Nothing in this section shall be construed as modifying 

the compulsory copyright license established in section 111 of 

title 17, United States Code, or as affecting existing or future 

video programming licensing agreements between broadcasting 

stations and video programmers. 

(7) For purposes of this subsection, the term—

(A) ‘‘network station’’ has the meaning given such term 

under section 119(d) of title 17, United States Code; and 

(B) ‘‘television broadcast station’’ means an over-the-air 

commercial or noncommercial television broadcast station 

licensed by the Commission under subpart E of part 73 of 

title 47, Code of Federal Regulations, except that such 

term does not include a low-power or translator television 

station. 

(c) BROADCAST TO FOREIGN COUNTRIES FOR REBROADCAST TO

UNITED STATES; PERMIT.—No person shall be permitted to locate, 

use, or maintain a radio broadcast studio or other place or apparatus from which or whereby sound waves are converted into electrical energy, or mechanical or physical reproduction of sound 


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waves produced, and cause to be transmitted or delivered to a radio 

station in a foreign country for the purpose of being broadcast from 

any radio station there having a power output of sufficient intensity and/or being so located geographically that its emissions may 

be received consistently in the United States, without first obtaining a permit from the Commission upon proper application therefor. 

(d) APPLICATION FOR PERMIT.—Such application shall contain 

such information as the Commission may by regulation prescribe, 

and the granting or refusal thereof shall be subject to the requirements of section 309 hereof with respect to applications for station 

licenses or renewal or modification thereof, and the license or permission so granted shall be revocable for false statements in the 

application so required or when the Commission, after hearings, 

shall find its continuation no longer in the public interest. 

(e) ENFORCEMENT PROCEEDINGS AGAINST SATELLITE CARRIERS

CONCERNING RETRANSMISSIONS OF TELEVISION BROADCAST STA- TIONS IN THE RESPECTIVE LOCAL MARKETS OF SUCH CARRIERS.— (1) COMPLAINTS BY TELEVISION BROADCAST STATIONS.—If 

after the expiration of the 6-month period described under subsection (b)(2)(E) a television broadcast station believes that a 

satellite carrier has retransmitted its signal to any person in 

the local market of such station in violation of subsection 

(b)(1), the station may file with the Commission a complaint 

providing—

(A) the name, address, and call letters of the station; 

(B) the name and address of the satellite carrier; 

(C) the dates on which the alleged retransmission occurred; 

(D) the street address of at least one person in the local 

market of the station to whom the alleged retransmission 

was made; 

(E) a statement that the retransmission was not expressly authorized by the television broadcast station; and 

(F) the name and address of counsel for the station. 

(2) SERVICE OF COMPLAINTS ON SATELLITE CARRIERS.—For 

purposes of any proceeding under this subsection, any satellite 

carrier that retransmits the signal of any broadcast station 

shall be deemed to designate the Secretary of the Commission 

as its agent for service of process. A television broadcast station may serve a satellite carrier with a complaint concerning 

an alleged violation of subsection (b)(1) through retransmission 

of a station within the local market of such station by filing the 

original and two copies of the complaint with the Secretary of 

the Commission and serving a copy of the complaint on the 

satellite carrier by means of two commonly used overnight delivery services, each addressed to the chief executive officer of 

the satellite carrier at its principal place of business, and each 

marked ‘‘URGENT LITIGATION MATTER’’ on the outer packaging. Service shall be deemed complete one business day after 

a copy of the complaint is provided to the delivery services for 

overnight delivery. On receipt of a complaint filed by a television broadcast station under this subsection, the Secretary of 

the Commission shall send the original complaint by United 


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States mail, postage prepaid, receipt requested, addressed to 

the chief executive officer of the satellite carrier at its principal 

place of business. 

(3) ANSWERS BY SATELLITE CARRIERS.—Within five business 

days after the date of service, the satellite carrier shall file an 

answer with the Commission and shall serve the answer by a 

commonly used overnight delivery service and by United 

States mail, on the counsel designated in the complaint at the 

address listed for such counsel in the complaint. 

(4) DEFENSES.—

(A) EXCLUSIVE DEFENSES.—The defenses under this 

paragraph are the exclusive defenses available to a satellite carrier against which a complaint under this subsection is filed. 

(B) DEFENSES.—The defenses referred to under subparagraph (A) are the defenses that—

(i) the satellite carrier did not retransmit the television broadcast station to any person in the local 

market of the station during the time period specified 

in the complaint; 

(ii) the television broadcast station had, in a writing 

signed by an officer of the television broadcast station, 

expressly authorized the retransmission of the station 

by the satellite carrier to each person in the local market of the television broadcast station to which the 

satellite carrier made such retransmissions for the entire time period during which it is alleged that a violation of subsection (b)(1) has occurred; 

(iii) the retransmission was made after January 1, 

2002, and the television broadcast station had elected 

to assert the right to carriage under section 338 as 

against the satellite carrier for the relevant period; or 

(iv) the station being retransmitted is a noncommercial television broadcast station. 

(5) COUNTING OF VIOLATIONS.—The retransmission without 

consent of a particular television broadcast station on a particular day to one or more persons in the local market of the 

station shall be considered a separate violation of subsection 

(b)(1). 

(6) BURDEN OF PROOF.—With respect to each alleged violation, the burden of proof shall be on a television broadcast station to establish that the satellite carrier retransmitted the 

station to at least one person in the local market of the station 

on the day in question. The burden of proof shall be on the satellite carrier with respect to all defenses other than the defense 

under paragraph (4)(B)(i). 

(7) PROCEDURES.—

(A) REGULATIONS.—Within 60 days after the date of the 

enactment of the Satellite Home Viewer Improvement Act 

of 1999, the Commission shall issue procedural regulations 

implementing this subsection which shall supersede procedures under section 312. 

(B) DETERMINATIONS.—


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(i) IN GENERAL.—Within 45 days after the filing of 

a complaint, the Commission shall issue a final determination in any proceeding brought under this subsection. The Commission’s final determination shall 

specify the number of violations committed by the satellite carrier. The Commission shall hear witnesses 

only if it clearly appears, based on written filings by 

the parties, that there is a genuine dispute about material facts. Except as provided in the preceding sentence, the Commission may issue a final ruling based 

on written filings by the parties. 

(ii) DISCOVERY.—The Commission may direct the 

parties to exchange pertinent documents, and if necessary to take prehearing depositions, on such schedule as the Commission may approve, but only if the 

Commission first determines that such discovery is 

necessary to resolve a genuine dispute about material 

facts, consistent with the obligation to make a final 

determination within 45 days. 

(8) RELIEF.—If the Commission determines that a satellite 

carrier has retransmitted the television broadcast station to at 

least one person in the local market of such station and has 

failed to meet its burden of proving one of the defenses under 

paragraph (4) with respect to such retransmission, the Commission shall be required to—

(A) make a finding that the satellite carrier violated subsection (b)(1) with respect to that station; and 

(B) issue an order, within 45 days after the filing of the 

complaint, containing—

(i) a cease-and-desist order directing the satellite 

carrier immediately to stop making any further retransmissions of the television broadcast station to 

any person within the local market of such station 

until such time as the Commission determines that 

the satellite carrier is in compliance with subsection 

(b)(1) with respect to such station; 

(ii) if the satellite carrier is found to have violated 

subsection (b)(1) with respect to more than two television broadcast stations, a cease-and-desist order directing the satellite carrier to stop making any further 

retransmission of any television broadcast station to 

any person within the local market of such station, 

until such time as the Commission, after giving notice 

to the station, that the satellite carrier is in compliance with subsection (b)(1) with respect to such stations; and 

(iii) an award to the complainant of that complainant’s costs and reasonable attorney’s fees. 

(9) COURT PROCEEDINGS ON ENFORCEMENT OF COMMISSION

ORDER.—

(A) IN GENERAL.—On entry by the Commission of a final 

order granting relief under this subsection— (i) a television broadcast station may apply within 

30 days after such entry to the United States District 


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Court for the Eastern District of Virginia for a final 

judgment enforcing all relief granted by the Commission; and 

(ii) the satellite carrier may apply within 30 days 

after such entry to the United States District Court for 

the Eastern District of Virginia for a judgment reversing the Commission’s order. 

(B) APPEAL.—The procedure for an appeal under this 

paragraph by the satellite carrier shall supersede any 

other appeal rights under Federal or State law. A United 

States district court shall be deemed to have personal jurisdiction over the satellite carrier if the carrier, or a company under common control with the satellite carrier, has 

delivered television programming by satellite to more than 

30 customers in that district during the preceding 4-year 

period. If the United States District Court for the Eastern 

District of Virginia does not have personal jurisdiction over 

the satellite carrier, an enforcement action or appeal shall 

be brought in the United States District Court for the District of Columbia, which may find personal jurisdiction 

based on the satellite carrier’s ownership of licenses issued 

by the Commission. An application by a television broadcast station for an order enforcing any cease-and-desist relief granted by the Commission shall be resolved on a 

highly expedited schedule. No discovery may be conducted 

by the parties in any such proceeding. The district court 

shall enforce the Commission order unless the Commission 

record reflects manifest error and an abuse of discretion by 

the Commission. 

(10) CIVIL ACTION FOR STATUTORY DAMAGES.—Within 6 

months after issuance of an order by the Commission under 

this subsection, a television broadcast station may file a civil 

action in any United States district court that has personal jurisdiction over the satellite carrier for an award of statutory 

damages for any violation that the Commission has determined 

to have been committed by a satellite carrier under this subsection. Such action shall not be subject to transfer under section 1404(a) of title 28, United States Code. On finding that 

the satellite carrier has committed one or more violations of 

subsection (b), the District Court shall be required to award 

the television broadcast station statutory damages of $25,000 

per violation, in accordance with paragraph (5), and the costs 

and attorney’s fees incurred by the station. Such statutory 

damages shall be awarded only if the television broadcast station has filed a binding stipulation with the court that such 

station will donate the full amount in excess of $1,000 of any 

statutory damage award to the United States Treasury for 

public purposes. Notwithstanding any other provision of law, a 

station shall incur no tax liability of any kind with respect to 

any amounts so donated. Discovery may be conducted by the 

parties in any proceeding under this paragraph only if and to 

the extent necessary to resolve a genuinely disputed issue of 

fact concerning one of the defenses under paragraph (4). In any 

such action, the defenses under paragraph (4) shall be excluVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00184 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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sive, and the burden of proof shall be on the satellite carrier 

with respect to all defenses other than the defense under paragraph (4)(B)(i). A judgment under this paragraph may be enforced in any manner permissible under Federal or State law. 

(11) APPEALS.—

(A) IN GENERAL.—The nonprevailing party before a 

United States district court may appeal a decision under 

this subsection to the United States Court of Appeals with 

jurisdiction over that district court. The Court of Appeals 

shall not issue any stay of the effectiveness of any decision 

granting relief against a satellite carrier unless the carrier 

presents clear and convincing evidence that it is highly 

likely to prevail on appeal and only after posting a bond 

for the full amount of any monetary award assessed 

against it and for such further amount as the Court of Appeals may believe appropriate. 

(B) APPEAL.—If the Commission denies relief in response 

to a complaint filed by a television broadcast station under 

this subsection, the television broadcast station filing the 

complaint may file an appeal with the United States Court 

of Appeals for the District of Columbia Circuit. 

(12) SUNSET.—No complaint or civil action may be filed 

under this subsection after December 31, 2001. This subsection 

shall continue to apply to any complaint or civil action filed on 

or before such date. 

SEC. 330. PROHIBITION AGAINST SHIPMENT OF CERTAIN TELEVISION 

RECEIVERS. 

[47 U.S.C. 330] 

(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 

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. 


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(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. 

(d) CONSUMER EDUCATION REQUIREMENTS REGARDING ANALOG

RECEIVERS.—

(1) REQUIREMENTS FOR MANUFACTURERS.—The manufacturer 

of any analog only television set manufactured in the United 

States or shipped in interstate commerce shall—

(A) place the appropriate removable label described in 

paragraph (3) on the screen of such television set; and 

(B) display the label required by paragraph (3) on the 

outside of the retail packaging of the television set—

(i) in a clear and conspicuous manner; and 

(ii) in a manner that cannot be removed. 

(2) REQUIREMENTS FOR RETAILERS.—

(A) IN GENERAL.—A retailer of analog only television sets 

that sells such television sets via direct mail, catalog, or 

electronic means, shall include in all advertisements or descriptions of such television set the product and the information described in paragraph (3) within 120 days after 

the date of enactment of the Advanced Telecommunications 

and Opportunities Reform Act. 


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(B) DUTY TO ADEQUATELY INFORM CONSUMERS.—Notwithstanding the requirement in subparagraph (A), it shall 

be a violation of this Act for any retailer of analog-only television sets—

(i) to fail to adequately inform consumers about the 

availability of digital-to-analog converter boxes; or 

(ii) to provide misleading information about the 

availability and cost of such converter boxes. 

(3) PRODUCT AND DIGITAL TELEVISION TRANSITION INFORMATION.—

(A) LABEL REQUIREMENT.—The following product and 

digital television transition information shall be displayed 

as a label on analog television sets, in both English and 

Spanish: 

‘‘CONSUMER ALERT 

‘‘This TV has only an ‘analog’ broadcast tuner 

and will require a converter box after February 17, 

2009 to receive over-the-air broadcasts with an antenna because of the Nation’s transition to digital 

broadcasting on that date as required by Federal 

law. It should continue to work as before with 

cable and satellite TV services, gaming consoles, 

VCRs, DVD players, and similar products.’’. 

(B) BLOCKING TECHNOLOGY.—All television sets, analog 

or digital, that have a picture screen 13 inches or greater 

in size (measured diagonally), shall be equipped with a feature designed to enable viewers to block display of all programs with a common rating. For additional information 

on such technology, visit http://www.tvguidelines.org. 

(4) COMMISSION OUTREACH.—

(A) IN GENERAL.—Beginning within 1 month after the 

date of enactment of the Advanced Telecommunications 

and Opportunities Reform Act, the Commission shall initiate a public outreach program the purpose of which is to 

educate consumers about the digital television transition. 

Not later than October 15, 2007, the Commission shall 

complete and submit a national plan to Congress on how 

to best carry out such public outreach program. Such plan 

shall include a description of how such public outreach 

program will carry out the purposes, recommendations, and 

requirements described in subparagraphs (A), (B), and (C) 

of section 701(b)(3) of the Advanced Telecommunications 

and Opportunities Reform Act. 

(B) WEBSITE.—The Commission shall maintain and publicize a website, or an easily accessible page on its website, 

containing such consumer information as well as any links 

to other websites the Commission determines to be appropriate. 

(C) TELEPHONE INFORMATION HOTLINE.—The Commission shall establish, maintain, and make public a toll-free 

information hotline regarding the digital television transition. 


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(5) PUBLIC SERVICE ANNOUNCEMENTS.— (A) IN GENERAL.—Each television broadcast licensee or 

permittee shall broadcast at least 2 30-second public service 

announcements daily— (i) during the 3-month period beginning December 1, 

2007, such date being 1 month prior to the commencement of the digital-to-analog converter box subsidy program authorized under 3005 of the Digital Television 

Transition and Public Safety Act of 2005 (Public Law 

109–171; 120 Stat. 24); and 

(ii) during the 3-month period beginning on November 17, 2008, such date being 3 months prior to the Nation’s transition to digital broadcasting as required 

under section 309(j)(14) of the Communications Act of 

1934 (47 U.S.C. 309(j)(14)). 

(B) MULTILINGUAL NOTICES.—The information required 

to be provided to consumers under this paragraph shall be 

provided in English and Spanish and may be provided in 

such other languages as may be appropriate to the marketing segments of the public to which the information is 

addressed. 

(C) TIME OF BROADCAST.—The public service announcements required under subparagraph (A) shall be broadcast 

at such times as the Commission, in accordance with the 

Working Group established under section 701(b)(3) of the 

Advanced Telecommunications and Opportunities Reform 

Act, may require in order to assure the widest possible audience. 

(D) CONTENT OF BROADCAST.—The public service announcements required under subparagraph (A) shall, at 

least—

(i) notify the public of the—

(I) date of the digital transition; and 

(II) starting date of the digital-to-analog converter box subsidy program described in subparagraph (A); and 

(ii) contain the address of the website and toll-free 

information hotline provided by the Commission under 

subparagraphs (B) and (C) of paragraph (4). 

(6) PENALTY.—In addition to any other civil or criminal penalty provided by law, the Commission shall issue civil forfeitures for violations of the requirements of this subsection in an 

amount equal to not more than 3 times the amount of the forfeiture penalty established by section 503(a)(2)(A). 

(7) SUNSET.—The requirements of this subsection, excluding 

the consumer alert labeling provision described in paragraph 

(3), shall cease to apply to manufacturers and retailers on December 1, 2009. 

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) 


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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. 

SEC. 332. MOBILE SERVICES. 

[47 U.S.C. 332] 

(a) FACTORS WHICH COMMISSION MUST CONSIDER.—In taking actions to manage the spectrum to be made available for use by the 

private mobile services, the Commission shall consider, consistent 

with section 1 of this Act, whether such actions will— (1) promote the safety of life and property; 

(2) improve the efficiency of spectrum use and reduce the 

regulatory burden upon spectrum users, based upon sound engineering principles, user operational requirements, and market-place demands; 

(3) encourage competition and provide services to the largest 

feasible number of users; or 

(4) increase interservice sharing opportunities between private mobile services and other services. 

(b) ADVISORY COORDINATING COMMITTEES.— (1) The Commission, in coordinating the assignment of frequencies to stations in the private mobile services and in the 

fixed services (as defined by the Commission by rule), shall 

have authority to utilize assistance furnished by advisory coordinating committees consisting of individuals who are not officers or employees of the Federal Government. 

(2) The authority of the Commission established in this subsection shall not be subject to or affected by the provisions of 

part III of title 5, United States Code, or section 3679(b) of the 

Revised Statutes (31 U.S.C. 665(b)). 

(3) Any person who provides assistance to the Commission 

under this subsection shall not be considered, by reason of having provided such assistance, a Federal employee. 

(4) Any advisory coordinating committee which furnishes assistance to the Commission under this subsection shall not be 

subject to the provisions of the Federal Advisory Committee 

Act. 

(c) REGULATORY TREATMENT OF MOBILE SERVICES.— (1) COMMON CARRIER TREATMENT OF COMMERCIAL MOBILE

SERVICES.— (A) A person engaged in the provision of a service that 

is a commercial mobile service shall, insofar as such person is so engaged, be treated as a common carrier for purposes of this Act, except for such provisions of title II as 

the Commission may specify by regulation as inapplicable 

to that service or person. In prescribing or amending any 

such regulation, the Commission may not specify any provision of section 201, 202, or 208, and may specify any 

other provision only if the Commission determines that—


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(i) enforcement of such provision is not necessary in 

order to ensure that the charges, practices, classifications, or regulations for or in connection with that 

service are just and reasonable and are not unjustly or 

unreasonably discriminatory; 

(ii) enforcement of such provision is not necessary 

for the protection of consumers; and 

(iii) specifying such provision is consistent with the 

public interest. 

(B) Upon reasonable request of any person providing 

commercial mobile service, the Commission shall order a 

common carrier to establish physical connections with such 

service pursuant to the provisions of section 201 of this 

Act. Except to the extent that the Commission is required 

to respond to such a request, this subparagraph shall not 

be construed as a limitation or expansion of the Commission’s authority to order interconnection pursuant to this 

Act. 

(C) The Commission shall review competitive market 

conditions with respect to commercial mobile services and 

shall include in its annual report an analysis of those conditions. Such analysis shall include an identification of the 

number of competitors in various commercial mobile services, an analysis of whether or not there is effective competition, an analysis of whether any of such competitors 

have a dominant share of the market for such services, 

and a statement of whether additional providers or classes 

of providers in those services would be likely to enhance 

competition. As a part of making a determination with respect to the public interest under subparagraph (A)(iii), 

the Commission shall consider whether the proposed regulation (or amendment thereof) will promote competitive 

market conditions, including the extent to which such regulation (or amendment) will enhance competition among 

providers of commercial mobile services. If the Commission 

determines that such regulation (or amendment) will promote competition among providers of commercial mobile 

services, such determination may be the basis for a Commission finding that such regulation (or amendment) is in 

the public interest. 

(D) The Commission shall, not later than 180 days after 

the date of enactment of this subparagraph, complete a 

rulemaking required to implement this paragraph with respect to the licensing of personal communications services, 

including making any determinations required by subparagraph (C). 

(2) NON-COMMON CARRIER TREATMENT OF PRIVATE MOBILE

SERVICES.—A person engaged in the provision of a service that 

is a private mobile service shall not, insofar as such person is 

so engaged, be treated as a common carrier for any purpose 

under this Act. A common carrier (other than a person that 

was treated as a provider of a private land mobile service prior 

to the enactment of the Omnibus Budget Reconciliation Act of 

1993) shall not provide any dispatch service on any frequency 


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allocated for common carrier service, except to the extent such 

dispatch service is provided on stations licensed in the domestic public land mobile radio service before January 1, 1982. The 

Commission may by regulation terminate, in whole or in part, 

the prohibition contained in the preceding sentence if the Commission determines that such termination will serve the public 

interest. 

(3) STATE PREEMPTION.— (A) øNotwithstanding sections 2(b) and 221(b), no State 

or local government shall have any authority to regulate 

the entry of or the rates charged by any commercial mobile 

service or any private mobile service, except that this 

paragraph shall not prohibit a State from regulating the 

other terms and conditions of commercial mobile services.¿ 

(i) Notwithstanding sections 2(b) and 221(b) or any other 

provision of law, a State or local government shall not regulate or adjudicate— (I) the entry of or the rates charged by any provider 

of commercial mobile service or private mobile service 

for any such mobile service or any or any other service 

that is primarily intended for receipt on or use with a 

wireless device that is utilized by a customer of such 

mobile service in connection with such mobile service; 

or 

(II) any terms and conditions of such mobile service 

or any other such service, except pursuant to a law or 

regulation generally applicable to businesses in the 

State other than a law or regulation that regulates or 

has the effect of regulating the entry or rates for any 

such service. 

(ii) Nothing in this section shall affect the authority of 

the Commission under this Act to adopt consumer protection requirements applicable to providers of commercial 

mobile service or private mobile services. 

(iii) Nothing in this subparagraph shall exempt providers of commercial mobile services (where such services 

are a substitute for land line telephone exchange service 

for a substantial portion of the communications within 

such State) from requirements imposed by a State commission on all providers of telecommunications services necessary to ensure the universal availability of telecommunications service at affordable rates. Notwithstanding the 

first sentence of this subparagraph, a State may petition 

the Commission for authority to regulate the rates for any 

commercial mobile service and the Commission shall grant 

such petition if such State demonstrates that—

ø(i)¿ (I) market conditions with respect to such services fail to protect subscribers adequately from unjust 

and unreasonable rates or rates that are unjustly or 

unreasonably discriminatory; or 

ø(ii)¿ (II) such market conditions exist and such 

service is a replacement for land line telephone exchange service for a substantial portion of the telephone land line exchange service within such State. 


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The Commission shall provide reasonable opportunity for public 

comment in response to such petition, and shall, within 9 months 

after the date of its submission, grant or deny such petition. If the 

Commission grants such petition, the Commission shall authorize 

the State to exercise under State law such authority over rates, for 

such periods of time, as the Commission deems necessary to ensure 

that such rates are just and reasonable and not unjustly or unreasonably discriminatory. 

(B) If a State has in effect on June 1, 1993, any regulation concerning the rates for any commercial mobile service offered in such State on such date, such State may, no 

later than 1 year after the date of enactment of the Omnibus Budget Reconciliation Act of 1993, petition the Commission requesting that the State be authorized to continue exercising authority over such rates. If a State files 

such a petition, the State’s existing regulation shall, notwithstanding subparagraph (A), remain in effect until the 

Commission completes all action (including any reconsideration) on such petition. The Commission shall review such 

petition in accordance with the procedures established in 

such subparagraph, shall complete all action (including 

any reconsideration) within 12 months after such petition 

is filed, and shall grant such petition if the State satisfies 

the showing required under subparagraph (A)(i) or (A)(ii). 

If the Commission grants such petition, the Commission 

shall authorize the State to exercise under State law such 

authority over rates, for such period of time, as the Commission deems necessary to ensure that such rates are just 

and reasonable and not unjustly or unreasonably discriminatory. After a reasonable period of time, as determined by 

the Commission, has elapsed from the issuance of an order 

under subparagraph (A) or this subparagraph, any interested party may petition the Commission for an order that 

the exercise of authority by a State pursuant to such subparagraph is no longer necessary to ensure that the rates 

for commercial mobile services are just and reasonable and 

not unjustly or unreasonably discriminatory. The Commission shall provide reasonable opportunity for public comment in response to such petition, and shall, within 9 

months after the date of its submission, grant or deny such 

petition in whole or in part. 

(4) REGULATORY TREATMENT OF COMMUNICATIONS SATELLITE

CORPORATION.—Nothing in this subsection shall be construed 

to alter or affect the regulatory treatment required by title IV 

of the Communications Satellite Act of 1962 of the corporation 

authorized by title III of such Act. 

(5) SPACE SEGMENT CAPACITY.—Nothing in this section shall 

prohibit the Commission from continuing to determine whether 

the provision of space segment capacity by satellite systems to 

providers of commercial mobile services shall be treated as 

common carriage. 

(6) FOREIGN OWNERSHIP.—The Commission, upon a petition 

for waiver filed within 6 months after the date of enactment 

of the Omnibus Budget Reconciliation Act of 1993, may waive 


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the application of section 310(b) to any foreign ownership that 

lawfully existed before May 24, 1993, of any provider of a private land mobile service that will be treated as a common carrier as a result of the enactment of the Omnibus Budget Reconciliation Act of 1993, but only upon the following conditions: 

(A) The extent of foreign ownership interest shall not be 

increased above the extent which existed on May 24, 1993. 

(B) Such waiver shall not permit the subsequent transfer of ownership to any other person in violation of section 

310(b). 

(7) PRESERVATION OF LOCAL ZONING AUTHORITY.— (A) GENERAL AUTHORITY.—Except as provided in this 

paragraph, nothing in this Act shall limit or affect the authority of a State or local government or instrumentality 

thereof over decisions regarding the placement, construction, and modification of personal wireless service facilities. 

(B) LIMITATIONS.— (i) The regulation of the placement, construction, 

and modification of personal wireless service facilities 

by any State or local government or instrumentality 

thereof—

(I) shall not unreasonably discriminate among 

providers of functionally equivalent services; and 

(II) shall not prohibit or have the effect of prohibiting the provision of personal wireless services. 

(ii) A State or local government or instrumentality 

thereof shall act on any request for authorization to 

place, construct, or modify personal wireless service 

facilities within a reasonable period of time after the 

request is duly filed with such government or instrumentality, taking into account the nature and scope of 

such request. 

(iii) Any decision by a State or local government or 

instrumentality thereof to deny a request to place, 

construct, or modify personal wireless service facilities 

shall be in writing and supported by substantial evidence contained in a written record. 

(iv) No State or local government or instrumentality 

thereof may regulate the placement, construction, and 

modification of personal wireless service facilities on 

the basis of the environmental effects of radio frequency emissions to the extent that such facilities 

comply with the Commission’s regulations concerning 

such emissions. 

(v) Any person adversely affected by any final action 

or failure to act by a State or local government or any 

instrumentality thereof that is inconsistent with this 

subparagraph may, within 30 days after such action or 

failure to act, commence an action in any court of competent jurisdiction. The court shall hear and decide 

such action on an expedited basis. Any person adversely affected by an act or failure to act by a State 


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or local government or any instrumentality thereof 

that is inconsistent with clause (iv) may petition the 

Commission for relief. 

(C) DEFINITIONS.—For purposes of this paragraph— (i) the term ‘‘personal wireless services’’ means commercial mobile services, unlicensed wireless services, 

and common carrier wireless exchange access services; 

(ii) the term ‘‘personal wireless service facilities’’ means facilities for the provision of personal wireless 

services; and 

(iii) the term ‘‘unlicensed wireless service’’ means 

the offering of telecommunications services using duly 

authorized devices which do not require individual licenses, but does not mean the provision of direct-tohome satellite services (as defined in section 303(v)). 

(8) MOBILE SERVICES ACCESS.—A person engaged in the provision of commercial mobile services, insofar as such person is 

so engaged, shall not be required to provide equal access to 

common carriers for the provision of telephone toll services. If 

the Commission determines that subscribers to such services 

are denied access to the provider of telephone toll services of 

the subscribers’ choice, and that such denial is contrary to the 

public interest, convenience, and necessity, then the Commission shall prescribe regulations to afford subscribers unblocked 

access to the provider of telephone toll services of the subscribers’ choice through the use of a carrier identification code 

assigned to such provider or other mechanism. The requirements for unblocking shall not apply to mobile satellite services unless the Commission finds it to be in the public interest 

to apply such requirements to such services. 

(d) DEFINITIONS.—For purposes of this section— (1) the term ‘‘commercial mobile service’’ means any mobile 

service (as defined in section 3) that is provided for profit and 

makes interconnected service available (A) to the public or (B) 

to such classes of eligible users as to be effectively available to 

a substantial portion of the public, as specified by regulation 

by the Commission; 

(2) the term ‘‘interconnected service’’ means service that is 

interconnected with the public switched network (as such 

terms are defined by regulation by the Commission) or service 

for which a request for interconnection is pending pursuant to 

subsection (c)(1)(B); and 

(3) the term ‘‘private mobile service’’ means any mobile service (as defined in section 3) that is not a commercial mobile 

service or the functional equivalent of a commercial mobile 

service, as specified by regulation by the Commission. 

SEC. 335. DIRECT BROADCAST SATELLITE SERVICE OBLIGATIONS. 

[47 U.S.C. 335] 

(a) PROCEEDING REQUIRED TO REVIEW DBS RESPONSIBILITIES.— The Commission shall, within 180 days after the date of enactment 

of this section, initiate a rulemaking proceeding to impose, on providers of direct broadcast satellite service, public interest or other 

requirements for providing video programming. Any regulations 

prescribed pursuant to such rulemaking shall, at a minimum, 


hmoore on PROD1PC68 with HMRPT
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apply the access to broadcast time requirement of section 312(a)(7) 

and the use of facilities requirements of section 315 to providers of 

direct broadcast satellite service providing video programming. 

Such proceeding also shall examine the opportunities that the establishment of direct broadcast satellite service provides for the 

principle of localism under this Act, and the methods by which 

such principle may be served through technological and other developments in, or regulation of, such service. 

(b) CARRIAGE OBLIGATIONS FOR NONCOMMERCIAL, EDUCATIONAL, 

AND INFORMATIONAL PROGRAMMING.—

(1) CHANNEL CAPACITY REQUIRED.—The Commission shall require, as a condition of any provision, initial authorization, or 

authorization renewal for a provider of direct broadcast satellite service providing video programming, that the provider of 

such service reserve a portion of its channel capacity, equal to 

not less than 4 percent nor more than 7 percent, exclusively for 

noncommercial programming of an educational or informational nature. 

(2) USE OF UNUSED CHANNEL CAPACITY.—A provider of such 

service may utilize for any purpose any unused channel capacity required to be reserved under this subsection pending the 

actual use of such channel capacity for noncommercial programming of an educational or informational nature. 

(3) PRICES, TERMS, AND CONDITIONS; EDITORIAL CONTROL.—A 

provider of direct broadcast satellite service shall meet the requirements of this subsection by making channel capacity 

available to national educational programming suppliers, upon 

reasonable prices, terms, and conditions, as determined by the 

Commission under paragraph (4). The provider of direct broadcast satellite service shall not exercise any editorial control 

over any video programming provided pursuant to this subsection. 

(4) LIMITATIONS.—In determining reasonable prices under 

paragraph (3)—

(A) the Commission shall take into account the nonprofit 

character of the programming provider and any Federal 

funds used to support such programming; 

(B) the Commission shall not permit such prices to exceed, for any channel made available under this subsection, 50 percent of the total direct costs of making such 

channel available; and 

(C) in the calculation of total direct costs, the Commission shall exclude—

(i) marketing costs, general administrative costs, 

and similar overhead costs of the provider of direct 

broadcast satellite service; and 

(ii) the revenue that such provider might have obtained by making such channel available to a commercial provider of video programming. 

(5) DEFINITIONS.—For purposes of this subsection—

(A) The term ‘‘provider of direct broadcast satellite service’’ means—


hmoore on PROD1PC68 with HMRPT
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(i) a licensee for a Ku-band satellite system under 

part 100 of title 47 of the Code of Federal Regulations; 

or 

(ii) any distributor who controls a minimum number 

of channels (as specified by Commission regulation) 

using a Ku-band fixed service satellite system for the 

provision of video programming directly to the home 

and licensed under part 25 of title 47 of the Code of 

Federal Regulations. 

(B) The term ‘‘national educational programming supplier’’ includes any qualified noncommercial educational 

television station, other public telecommunications entities, and public or private educational institutions. 

(c) ALASKA AND HAWAII OBLIGATIONS.—

(1) IN GENERAL.—Each satellite carrier shall, to the extent 

technically feasible given the carrier’s satellite constellation in 

use, provide a comparable consumer product to subscribers in 

Alaska and Hawaii at prices and terms comparable to those 

made available to subscribers in the contiguous United States. 

(2) CONDITIONS ON NEW LICENSES.—

(A) IN GENERAL.—Before the Commission grants a license 

for a new satellite used for service in the contiguous United 

States to a satellite carrier, it shall ensure that, to the extent technically feasible, the following minimum conditions 

are met: 

(i) If the satellite is used for direct-to home video 

services, the satellite shall be— (I) capable of providing services to consumers in 

the cities of Anchorage, Fairbanks, and Juneau, 

Alaska, using signal power levels of at least 45 

dBW effective isotropic radiated power; and 

(II) capable of providing services to consumers in 

the islands of Oahu, Maui, Kauai, Molokai, and 

Hawaii, Hawaii, using signal power levels of at 

least 46 dBW effective isotropic radiated power. 

(ii) If the satellite is used for any other direct-to-consumer service—

(I) with respect to services offered on beams covering substantially the entire contiguous United 

States, the carrier must make best efforts to ensure 

that the effective isotropic radiated power of the 

satellite on the downlink and, where applicable, 

the efficiency of the satellite receive antenna (G/T) 

can allow the use of a commercially available antenna in Alaska and Hawaii with a gain that is no 

more than 4 dB greater than that used to provide 

the service in the contiguous United States; and 

(II) with respect to services offered over spot 

beams covering portions of the contiguous United 

States, the carrier must make best efforts to ensure 

that the effective isotropic radiated power of the 

satellite on the downlink and, where applicable, 

the efficiency of the satellite receive antenna (G/T) 

shall allow the use of the same antenna in Alaska 


hmoore on PROD1PC68 with HMRPT
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and Hawaii as provided in the contiguous United 

States for the service. 

(B) TECHNICAL FEASIBILITY.—It is deemed not technically 

feasible for a satellite with a look angle to any area of less 

than 8.25 degrees to provide service to such area at the signal power levels described in subparagraph (A). 

(3) SATELLITE CARRIER DEFINED.—In this subsection, the term ‘‘satellite carrier’’ means an entity that uses the facilities of a 

satellite in the Fixed-Satellite Service, the Direct Broadcast Satellite service, the Broadcast Satellite Service, the Mobile-Satellite Service, or the Digital Audio Radio Service that is licensed by the Commission under part 25 of title 47, Code of 

Federal Regulations, or is licensed or authorized by a foreign 

government. 

SEC. 336. BROADCAST SPECTRUM FLEXIBILITY. 

[47 U.S.C. 336] 

(a) COMMISSION ACTION.—If the Commission determines to issue 

additional licenses for advanced television services, the Commission—(1) should limit the initial eligibility for such licenses to persons that, as of the date of such issuance, are licensed to operate a television broadcast station or hold a permit to construct 

such a station (or both); and 

(2) shall adopt regulations that allow the holders of such licenses to offer such ancillary or supplementary services on designated frequencies as may be consistent with the public interest, convenience, and necessity. 

(b) CONTENTS OF REGULATIONS.—In prescribing the regulations 

required by subsection (a), the Commission shall— (1) only permit such licensee or permittee to offer ancillary 

or supplementary services if the use of a designated frequency 

for such services is consistent with the technology or method 

designated by the Commission for the provision of advanced 

television services; 

(2) limit the broadcasting of ancillary or supplementary services on designated frequencies so as to avoid derogation of any 

advanced television services, including high definition television broadcasts, that the Commission may require using such 

frequencies; 

(3) apply to any other ancillary or supplementary service 

such of the Commission’s regulations as are applicable to the 

offering of analogous services by any other person, except that 

no ancillary or supplementary service shall have any rights to 

carriage under øsection 614 or 615 or be deemed a multichannel video programming distributor for purposes of section 

628;¿ section 614 or 615; 

(4) adopt such technical and other requirements as may be 

necessary or appropriate to assure the quality of the signal 

used to provide advanced television services, and may adopt 

regulations that stipulate the minimum number of hours per 

day that such signal must be transmitted; and 

(5) prescribe such other regulations as may be necessary for 

the protection of the public interest, convenience, and necessity. 


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(c) RECOVERY OF LICENSE.—If the Commission grants a license 

for advanced television services to a person that, as of the date of 

such issuance, is licensed to operate a television broadcast station 

or holds a permit to construct such a station (or both), the Commission shall, as a condition of such license, require that either the additional license or the original license held by the licensee be surrendered to the Commission for reallocation or reassignment (or 

both) pursuant to Commission regulation. 

(d) PUBLIC INTEREST REQUIREMENT.—Nothing in this section 

shall be construed as relieving a television broadcasting station 

from its obligation to serve the public interest, convenience, and necessity. In the Commission’s review of any application for renewal 

of a broadcast license for a television station that provides ancillary 

or supplementary services, the television licensee shall establish 

that all of its program services on the existing or advanced television spectrum are in the public interest. Any violation of the 

Commission rules applicable to ancillary or supplementary services 

shall reflect upon the licensee’s qualifications for renewal of its license. 

(e) FEES.—

(1) SERVICES TO WHICH FEES APPLY.—If the regulations prescribed pursuant to subsection (a) permit a licensee to offer ancillary or supplementary services on a designated frequency— (A) for which the payment of a subscription fee is required in order to receive such services, or 

(B) for which the licensee directly or indirectly receives 

compensation from a third party in return for transmitting 

material furnished by such third party (other than commercial advertisements used to support broadcasting for 

which a subscription fee is not required),the Commission 

shall establish a program to assess and collect from the licensee for such designated frequency an annual fee or 

other schedule or method of payment that promotes the 

objectives described in subparagraphs (A) and (B) of paragraph (2). 

(2) COLLECTION OF FEES.—The program required by paragraph (1) shall— (A) be designed (i) to recover for the public a portion of 

the value of the public spectrum resource made available 

for such commercial use, and (ii) to avoid unjust enrichment through the method employed to permit such uses of 

that resource; 

(B) recover for the public an amount that, to the extent 

feasible, equals but does not exceed (over the term of the 

license) the amount that would have been recovered had 

such services been licensed pursuant to the provisions of 

section 309(j) of this Act and the Commission’s regulations 

thereunder; and 

(C) be adjusted by the Commission from time to time in 

order to continue to comply with the requirements of this 

paragraph. 

(3) TREATMENT OF REVENUES.— (A) GENERAL RULE.—Except as provided in subparagraph (B), all proceeds obtained pursuant to the regulaVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00198 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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tions required by this subsection shall be deposited in the 

Treasury in accordance with chapter 33 of title 31, United 

States Code. 

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

Commission shall retain as an offsetting collection such 

sums as may be necessary from such proceeds for the costs 

of developing and implementing the program required by 

this section and regulating and supervising advanced television services. Such offsetting collections shall be available for obligation subject to the terms and conditions of 

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

(4) REPORT.—Within 5 years after the date of enactment of 

the Telecommunications Act of 1996, the Commission shall report to the Congress on the implementation of the program required by this subsection, and shall annually thereafter advise 

the Congress on the amounts collected pursuant to such program. 

(f) PRESERVATION OF LOW-POWER COMMUNITY TELEVISION

BROADCASTING.— (1) CREATION OF CLASS A LICENSES.— (A) RULEMAKING REQUIRED.—Within 120 days after the 

date of the enactment of the Community Broadcasters Protection Act of 1999, the Commission shall prescribe regulations to establish a class A television license to be available to licensees of qualifying low-power television stations. Such regulations shall provide that— (i) the license shall be subject to the same license 

terms and renewal standards as the licenses for fullpower television stations except as provided in this 

subsection; and 

(ii) each such class A licensee shall be accorded primary status as a television broadcaster as long as the 

station continues to meet the requirements for a qualifying low-power station in paragraph (2). 

(B) NOTICE TO AND CERTIFICATION BY LICENSEES.—Within 30 days after the date of the enactment of the Community Broadcasters Protection Act of 1999, the Commission 

shall send a notice to the licensees of all low-power televisions licenses that describes the requirements for class A 

designation. Within 60 days after such date of enactment, 

licensees intending to seek class A designation shall submit to the Commission a certification of eligibility based on 

the qualification requirements of this subsection. Absent a 

material deficiency, the Commission shall grant certification of eligibility to apply for class A status. 

(C) APPLICATION FOR AND AWARD OF LICENSES.—Consistent with the requirements set forth in paragraph (2)(A) 

of this subsection, a licensee may submit an application for 

class A designation under this paragraph within 30 days 

after final regulations are adopted under subparagraph (A) 

of this paragraph. Except as provided in paragraphs (6) 

and (7), the Commission shall, within 30 days after receipt 


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of an application of a licensee of a qualifying low-power 

television station that is acceptable for filing, award such 

a class A television station license to such licensee. 

(D) RESOLUTION OF TECHNICAL PROBLEMS.—The Commission shall act to preserve the service areas of low-power 

television licensees pending the final resolution of a class 

A application. If, after granting certification of eligibility 

for a class A license, technical problems arise requiring an 

engineering solution to a full-power station’s allotted parameters or channel assignment in the digital television 

Table of Allotments, the Commission shall make such 

modifications as necessary— (i) to ensure replication of the full-power digital television applicant’s service area, as provided for in sections 73.622 and 73.623 of the Commission’s regulations (47 CFR 73.622, 73.623); and 

(ii) to permit maximization of a full-power digital 

television applicant’s service area consistent with such 

sections 73.622 and 73.623, 

if such applicant has filed an application for maximization 

or a notice of its intent to seek such maximization by December 31, 1999, and filed a bona fide application for 

maximization by May 1, 2000. Any such applicant shall 

comply with all applicable Commission rules regarding the 

construction of digital television facilities. 

(E) CHANGE APPLICATIONS.—If a station that is awarded 

a construction permit to maximize or significantly enhance 

its digital television service area, later files a change application to reduce its digital television service area, the protected contour of that station shall be reduced in accordance with such change modification. 

(2) QUALIFYING LOW-POWER TELEVISION STATIONS.—For purposes of this subsection, a station is a qualifying low-power television station if— (A)(i) during the 90 days preceding the date of the enactment of the Community Broadcasters Protection Act of 

1999—

(I) such station broadcast a minimum of 18 hours 

per day; 

(II) such station broadcast an average of at least 3 

hours per week of programming that was produced 

within the market area served by such station, or the 

market area served by a group of commonly controlled 

low-power stations that carry common local programming produced within the market area served by such 

group; and 

(III) such station was in compliance with the Commission’s requirements applicable to low-power television stations; and 

(ii) from and after the date of its application for a class 

A license, the station is in compliance with the Commission’s operating rules for full-power television stations; or 

(B) the Commission determines that the public interest, 

convenience, and necessity would be served by treating the 


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station as a qualifying low-power television station for purposes of this section, or for other reasons determined by 

the Commission. 

(3) COMMON OWNERSHIP.—No low-power television station 

authorized as of the date of the enactment of the Community 

Broadcasters Protection Act of 1999 shall be disqualified for a 

class A license based on common ownership with any other medium of mass communication. 

(4) ISSUANCE OF LICENSES FOR ADVANCED TELEVISION SERV- ICES TO TELEVISION TRANSLATOR STATIONS AND QUALIFYING

LOW-POWER TELEVISION STATIONS.—The Commission is not required to issue any additional license for advanced television 

services to the licensee of a class A television station under 

this subsection, or to any licensee of any television translator 

station, but shall accept a license application for such services 

proposing facilities that will not cause interference to the service area of any other broadcast facility applied for, protected, 

permitted, or authorized on the date of filing of the advanced 

television application. Such new license or the original license 

of the applicant shall be forfeited after the end of the digital 

television service transition period, as determined by the Commission. A licensee of a low-power television station or television translator station may, at the option of licensee, elect to 

convert to the provision of advanced television services on its 

analog channel, but shall not be required to convert to digital 

operation until the end of such transition period. 

(5) NO PREEMPTION OF SECTION 337.—Nothing in this subsection preempts or otherwise affects section 337 of this Act. 

(6) INTERIM QUALIFICATION.—

(A) STATIONS OPERATING WITHIN CERTAIN BANDWIDTH.—

The Commission may not grant a class A license to a lowpower television station for operation between 698 and 806 

megahertz, but the Commission shall provide to low-power 

television stations assigned to and temporarily operating 

in that bandwidth the opportunity to meet the qualification requirements for a class A license. If such a qualified 

applicant for a class A license is assigned a channel within 

the core spectrum (as such term is defined in MM Docket 

No. 87–286, February 17, 1998), the Commission shall 

issue a class A license simultaneously with the assignment 

of such channel. 

(B) CERTAIN CHANNELS OFF-LIMITS.—The Commission 

may not grant under this subsection a class A license to 

a low-power television station operating on a channel within the core spectrum that includes any of the 175 additional channels referenced in paragraph 45 of its February 

23, 1998, Memorandum Opinion and Order on Reconsideration of the Sixth Report and Order (MM Docket No. 87–

268). Within 18 months after the date of the enactment of 

the Community Broadcasters Protection Act of 1999, the 

Commission shall identify by channel, location, and applicable technical parameters those 175 channels. 

(7) NO INTERFERENCE REQUIREMENT.—The Commission may 

not grant a class A license, nor approve a modification of a 


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class A license, unless the applicant or licensee shows that the 

class A station for which the license or modification is sought 

will not cause—

(A) interference within—

(i) the predicted Grade B contour (as of the date of 

the enactment of the Community Broadcasters Protection Act of 1999, or November 1, 1999, whichever is 

later, or as proposed in a change application filed on 

or before such date) of any television station transmitting in analog format; or 

(ii)(I) the digital television service areas provided in 

the DTV Table of Allotments; (II) the areas protected 

in the Commission’s digital television regulations (47 

CFR 73.622(e) and (f)); (III) the digital television service areas of stations subsequently granted by the Commission prior to the filing of a class A application; and 

(IV) stations seeking to maximize power under the 

Commission’s rules, if such station has complied with 

the notification requirements in paragraph (1)(D); 

(B) interference within the protected contour of any lowpower television station or low-power television translator 

station that—

(i) was licensed prior to the date on which the application for a class A license, or for the modification of 

such a license, was filed; 

(ii) was authorized by construction permit prior to 

such date; or 

(iii) had a pending application that was submitted 

prior to such date; or 

(C) interference within the protected contour of 80 miles 

from the geographic center of the areas listed in section 

22.625(b)(1) or 90.303 of the Commission’s regulations (47 

CFR 22.625(b)(1) and 90.303) for frequencies in—

(i) the 470-512 megahertz band identified in section 

22.621 or 90.303 of such regulations; or 

(ii) the 482-488 megahertz band in New York. 

(8) PRIORITY FOR DISPLACED LOW-POWER STATIONS.—Lowpower stations that are displaced by an application filed under 

this section shall have priority over other low-power stations in 

the assignment of available channels. 

(g) EVALUATION.—Within 10 years after the date the Commission 

first issues additional licenses for advanced television services, the 

Commission shall conduct an evaluation of the advanced television 

services program. Such evaluation shall include—

(1) an assessment of the willingness of consumers to purchase the television receivers necessary to receive broadcasts of 

advanced television services; 

(2) an assessment of alternative uses, including public safety 

use, of the frequencies used for such broadcasts; and 

(3) the extent to which the Commission has been or will be 

able to reduce the amount of spectrum assigned to licensees. 

(h) PROVISION OF DIGITAL SERVICE BY LOW-POWER TELEVISION

STATIONS.—


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(1) Within 60 days after receiving a request (made in such 

form and manner and containing such information as the Commission may require) under this subsection from a low-power 

television station to which this subsection applies, the Commission shall authorize the licensee or permittee of that station to 

provide digital data service subject to the requirements of this 

subsection as a pilot project to demonstrate the feasibility of 

using low-power television stations to provide high-speed wireless digital data service, including Internet access to unserved 

areas. 

(2) The low-power television stations to which this subsection 

applies are as follows: 

(A) KHLM LP, Houston, Texas. 

(B) WTAM LP, Tampa, Florida. 

(C) WWRJ LP, Jacksonville, Florida. 

(D) WVBG LP, Albany, New York. 

(E) KHHI LP, Honolulu, Hawaii. 

(F) KPHE LP (K19DD), Phoenix, Arizona. 

(G) K34FI, Bozeman, Montana. 

(H) K65GZ, Bozeman, Montana. 

(I) WXOB LP, Richmond, Virginia. 

(J) WIIW LP, Nashville, Tennessee. 

(K) A station and repeaters to be determined by the Federal Communications Commission for the sole purpose of 

providing service to communities in the Kenai Peninsula 

Borough and Matanuska Susitna Borough. 

(L) WSPY LP, Plano, Illinois. 

(M) W24AJ, Aurora, Illinois. 

(3) Notwithstanding any requirement of section 553 of title 

5, United States Code, the Commission shall promulgate regulations establishing the procedures, consistent with the requirements of paragraphs (4) and (5), governing the pilot 

projects for the provision of digital data services by certain low 

power television licensees within 120 days after the date of enactment of LPTV Digital Data Services Act. The regulations 

shall set forth—

(A) requirements as to the form, manner, and information required for submitting requests to the Commission to 

provide digital data service as a pilot project; 

(B) procedures for testing interference to digital television receivers caused by any pilot project station or remote transmitter; 

(C) procedures for terminating any pilot project station 

or remote transmitter or both that causes interference to 

any analog or digital full-power television stations, class A 

television station, television translators or any other users 

of the core television band; 

(D) specifications for reports to be filed quarterly by each 

low power television licensee participating in a pilot 

project; 

(E) procedures by which a low power television licensee 

participating in a pilot project shall notify television broadcast stations in the same market upon commencement of 


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digital data services and for ongoing coordination with 

local broadcasters during the test period; and 

(F) procedures for the receipt and review of interference 

complaints on an expedited basis consistent with paragraph (5)(D). 

(4) A low-power television station to which this subsection 

applies may not provide digital data service unless—

(A) the provision of that service, including any remote 

return-path transmission in the case of 2-way digital data 

service, does not cause any interference in violation of the 

Commission’s existing rules, regarding interference caused 

by low power television stations to full-service analog or 

digital television stations, class A television stations, or 

television translator stations; and 

(B) the station complies with the Commission’s regulations governing safety, environmental, and sound engineering practices, and any other Commission regulation 

under paragraph (3) governing pilot program operations. 

(5)(A) The Commission may limit the provision of digital 

data service by a low-power television station to which this 

subsection applies if the Commission finds that—

(i) the provision of 2-way digital data service by that 

station causes any interference that cannot otherwise 

be remedied; or 

(ii) the provision of 1-way digital data service by 

that station causes any interference. 

(B) The Commission shall grant any such station, upon 

application (made in such form and manner and containing such information as the Commission may require) 

by the licensee or permittee of that station, authority to 

move the station to another location, to modify its facilities 

to operate on a different channel, or to use booster or auxiliary transmitting locations, if the grant of authority will 

not cause interference to the allowable or protected service 

areas of full service digital television stations, National 

Television Standards Committee assignments, or television 

translator stations, and provided, however, no such authority shall be granted unless it is consistent with existing Commission regulations relating to the movement, 

modification, and use of non-class A low power television 

transmission facilities in order—

(i) to operate within television channels 2 through 

51, inclusive; or 

(ii) to demonstrate the utility of low-power television 

stations to provide high-speed 2-way wireless digital 

data service. 

(C) The Commission shall require quarterly reports from 

each station authorized to provide digital data services 

under this subsection that include—

(i) information on the station’s experience with interference complaints and the resolution thereof; 

(ii) information on the station’s market success in 

providing digital data service; and 


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(iii) such other information as the Commission may 

require in order to administer this subsection. 

(D) The Commission shall resolve any complaints of interference with television reception caused by any station 

providing digital data service authorized under this subsection within 60 days after the complaint is received by 

the Commission. 

(6) The Commission shall assess and collect from any lowpower television station authorized to provide digital data service under this subsection an annual fee or other schedule or 

method of payment comparable to any fee imposed under the 

authority of this Act on providers of similar services. Amounts 

received by the Commission under this paragraph may be retained by the Commission as an offsetting collection to the extent necessary to cover the costs of developing and implementing the pilot program authorized by this subsection, and 

regulating and supervising the provision of digital data service 

by low-power television stations under this subsection. 

Amounts received by the Commission under this paragraph in 

excess of any amount retained under the preceding sentence 

shall be deposited in the Treasury in accordance with chapter 

33 of title 31, United States Code. 

(7) In this subsection, the term ‘‘digital data service’’ includes—

(A) digitally-based interactive broadcast service; and 

(B) wireless Internet access, without regard to—

(i) whether such access is—

(I) provided on a one-way or a two-way basis; 

(II) portable or fixed; or 

(III) connected to the Internet via a band allocated to Interactive Video and Data Service; and 

(ii) the technology employed in delivering such service, including the delivery of such service via multiple 

transmitters at multiple locations. 

(8) Nothing in this subsection limits the authority of the 

Commission under any other provision of law. 

(i) DEFINITIONS.—As used in this section: 

(1) ADVANCED TELEVISION SERVICES.—The term ‘‘advanced 

television services’’ means television services provided using 

digital or other advanced technology as further defined in the 

opinion, report, and order of the Commission entitled ‘‘Advanced Television Systems and Their Impact Upon the Existing Television Broadcast Service’’, MM Docket 87–268, adopted 

September 17, 1992, and successor proceedings. 

(2) DESIGNATED FREQUENCIES.—The term ‘‘designated frequency’’ means each of the frequencies designated by the Commission for licenses for advanced television services. 

(3) HIGH DEFINITION TELEVISION.—The term ‘‘high definition 

television’’ refers to systems that offer approximately twice the 

vertical and horizontal resolution of receivers generally available on the date of enactment of the Telecommunications Act 

of 1996, as further defined in the proceedings described in 

paragraph (1) of this subsection. 


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SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE 

CARRIERS. 

[47 U.S.C. 338] 

(a) CARRIAGE OBLIGATIONS.—

(1) IN GENERAL.—Each satellite carrier providing, under section 122 of title 17, United States Code, secondary transmissions to subscribers located within the local market of a television broadcast station of a primary transmission made by 

that station shall carry upon request the signals of all television broadcast stations located within that local market, subject to section 325(b). 

(2) REMEDIES FOR FAILURE TO CARRY.—In addition to the 

remedies available to television broadcast stations under section 501(f) of title 17, United States Code, the Commission may 

use the Commission’s authority under this Act to assure compliance with the obligations of this subsection, but in no instance shall a Commission enforcement proceeding be required 

as a predicate to the pursuit of a remedy available under such 

section 501(f). 

(3) LOW POWER STATION CARRIAGE OPTIONAL.—No low power 

television station whose signals are provided under section 

119(a)(14) of title 17, United States Code, shall be entitled to 

insist on carriage under this section, regardless of whether the 

satellite carrier provides secondary transmissions of the primary transmissions of other stations in the same local market 

pursuant to section 122 of such title, nor shall any such carriage be considered in connection with the requirements of subsection (c) of this section. 

(3) EFFECTIVE DATE.—No satellite carrier shall be required to 

carry local television broadcast stations under paragraph (1) 

until January 1, 2002. 

(4) CARRIAGE OF SIGNALS OF LOCAL STATIONS IN CERTAIN

MARKETS.—A satellite carrier that offers multichannel video 

programming distribution service in the United States to more 

than 5,000,000 subscribers shall (A) within 1 year after the 

date of the enactment of the Satellite Home Viewer Extension 

and Reauthorization Act of 2004, retransmit the signals originating as analog signals of each television broadcast station located in any local market within a State that is not part of the 

contiguous United States, and (B) within 30 months after such 

date of enactment retransmit the signals originating as digital 

signals of each such station. The retransmissions of such stations shall be made available to substantially all of the satellite carrier’s subscribers in each station’s local market, and 

the retransmissions of the stations in at least one market in 

the State shall be made available to substantially all of the 

satellite carrier’s subscribers in areas of the State that are not 

within a designated market area. The cost to subscribers of 

such retransmissions shall not exceed the cost of retransmissions of local television stations in other States. Within 1 

year after the date of enactment of that Act, the Commission 

shall promulgate regulations concerning elections by television 

stations in such State between mandatory carriage pursuant to 

this section and retransmission consent pursuant to section 


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325(b), which shall take into account the schedule on which 

local television stations are made available to viewers in such 

State. 

(b) GOOD SIGNAL REQUIRED.— (1) COSTS.—A television broadcast station asserting its right 

to carriage under subsection (a) shall be required to bear the 

costs associated with delivering a good quality signal to the 

designated local receive facility of the satellite carrier or to another facility that is acceptable to at least one-half the stations 

asserting the right to carriage in the local market. 

(2) REGULATIONS.—The regulations issued under subsection 

(g) shall set forth the obligations necessary to carry out this 

subsection. 

(c) DUPLICATION NOT REQUIRED.—

(1) COMMERCIAL STATIONS.—Notwithstanding subsection 

(a)(1), a satellite carrier shall not be required to carry upon request the signal of any local commercial television broadcast 

station that substantially duplicates the signal of another local 

commercial television broadcast station which is secondarily 

transmitted by the satellite carrier within the same local market, or to carry upon request the signals of more than one local 

commercial television broadcast station in a single local market that is affiliated with a particular television network unless such stations are licensed to communities in different 

States. 

(2) NONCOMMERCIAL STATIONS.—The Commission shall prescribe regulations limiting the carriage requirements under 

subsection (a) of satellite carriers with respect to the carriage 

of multiple local noncommercial television broadcast stations. 

To the extent possible, such regulations shall provide the same 

degree of carriage by satellite carriers of such multiple stations 

as is provided by cable systems under section 615. 

(d) CHANNEL POSITIONING.—No satellite carrier shall be required 

to provide the signal of a local television broadcast station to subscribers in that station’s local market on any particular channel 

number or to provide the signals in any particular order, except 

that the satellite carrier shall retransmit the signal of the local television broadcast stations to subscribers in the stations’ local market on contiguous channels and provide access to such station’s signals at a nondiscriminatory price and in a nondiscriminatory manner on any navigational device, on-screen program guide, or menu. 

(e) COMPENSATION FOR CARRIAGE.—A satellite carrier shall not 

accept or request monetary payment or other valuable consideration in exchange either for carriage of local television broadcast 

stations in fulfillment of the requirements of this section or for 

channel positioning rights provided to such stations under this section, except that any such station may be required to bear the costs 

associated with delivering a good quality signal to the local receive 

facility of the satellite carrier. 

(f) REMEDIES.— (1) COMPLAINTS BY BROADCAST STATIONS.—Whenever a local 

television broadcast station believes that a satellite carrier has 

failed to meet its obligations under subsections (b) through (e) 

of this section, such station shall notify the carrier, in writing, 


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of the alleged failure and identify its reasons for believing that 

the satellite carrier failed to comply with such obligations. The 

satellite carrier shall, within 30 days after such written notification, respond in writing to such notification and comply with 

such obligations or state its reasons for believing that it is in 

compliance with such obligations. A local television broadcast 

station that disputes a response by a satellite carrier that it is 

in compliance with such obligations may obtain review of such 

denial or response by filing a complaint with the Commission. 

Such complaint shall allege the manner in which such satellite 

carrier has failed to meet its obligations and the basis for such 

allegations. 

(2) OPPORTUNITY TO RESPOND.—The Commission shall afford 

the satellite carrier against which a complaint is filed under 

paragraph (1) an opportunity to present data and arguments 

to establish that there has been no failure to meet its obligations under this section. 

(3) REMEDIAL ACTIONS; DISMISSAL.—Within 120 days after 

the date a complaint is filed under paragraph (1), the Commission shall determine whether the satellite carrier has met its 

obligations under subsections (b) through (e). If the Commission determines that the satellite carrier has failed to meet 

such obligations, the Commission shall order the satellite carrier to take appropriate remedial action. If the Commission determines that the satellite carrier has fully met the requirements of such subsections, the Commission shall dismiss the 

complaint. 

(g) CARRIAGE OF LOCAL STATIONS ON A SINGLE DISH.—

(1) SINGLE DISH.—Each satellite carrier that retransmits the 

analog signals of local television broadcast stations in a local 

market shall retransmit such analog signals in such market by 

means of a single reception antenna and associated equipment. 

(2) EXCEPTION.—If the carrier retransmits signals in the digital television service, the carrier shall retransmit such digital 

signals in such market by means of a single reception antenna 

and associated equipment, but such antenna and associated 

equipment may be separate from the single reception antenna 

and associated equipment used for analog television service 

signals. 

(3) EFFECTIVE DATE.—The requirements of paragraphs (1) 

and (2) of this subsection shall apply on and after 18 months 

after the date of enactment of the Satellite Home Viewer Extension and Reauthorization Act of 2004. 

(4) NOTICE OF DISRUPTIONS.—A carrier that is providing signals of a local television broadcast station in a local market 

under this section on the date of enactment of the Satellite 

Home Viewer Extension and Reauthorization Act of 2004 shall, 

not later than 15 months after such date of enactment, provide 

to the licensees for such stations and the carrier’s subscribers 

in such local market a notice that displays prominently and 

conspicuously a clear statement of—

(A) any reallocation of signals between different reception antennas and associated equipment that the carrier 


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intends to make in order to comply with the requirements 

of this subsection; 

(B) the need, if any, for subscribers to obtain an additional reception antenna and associated equipment to receive such signals; and 

(C) any cessation of carriage or other material change in 

the carriage of signals as a consequence of the requirements of this paragraph. 

(h) ADDITIONAL NOTICES TO SUBSCRIBERS, NETWORKS, AND STATIONS CONCERNING SIGNAL CARRIAGE.—

(1) NOTICES TO AND ELECTIONS BY SUBSCRIBERS CONCERNING

GRANDFATHERED SIGNALS.—Any carrier that provides a distant 

signal of a network station to a subscriber pursuant section 

339(a)(2)(A) shall—

(A) within 60 days after the local signal of a network 

station of the same television network is available pursuant to section 338, or within 60 days after the date of enactment of the Satellite Home Viewer Extension and Reauthorization Act of 2004, whichever is later, send a notice 

to the subscriber—

(i) offering to substitute the local network signal for 

the duplicating distant network signal; and 

(ii) informing the subscriber that, if the subscriber 

fails to respond in 60 days, the subscriber will lose the 

distant network signal but will be permitted to subscribe to the local network signal; and 

(B) if the subscriber—

(i) elects to substitute such local network signal 

within such 60 days, switch such subscriber to such 

local network signal within 10 days after the end of 

such 60-day period; or 

(ii) fails to respond within such 60 days, terminate 

the distant network signal within 10 days after the 

end of such 60-day period. 

(2) NOTICE TO STATION LICENSEES OF COMMENCEMENT OF

LOCAL-INTO-LOCAL SERVICE.—

(A) NOTICE REQUIRED.—Within 180 days after the date 

of enactment of the Satellite Home Viewer Extension and 

Reauthorization Act of 2004, the Commission shall revise 

the regulations under this section relating to notice to 

broadcast station licensees to comply with the requirements of this paragraph. 

(B) CONTENTS OF COMMENCEMENT NOTICE.—The notice 

required by such regulations shall inform each television 

broadcast station licensee within any local market in 

which a satellite carrier proposes to commence carriage of 

signals of stations from that market, not later than 60 

days prior to the commencement of such carriage—

(i) of the carrier’s intention to launch local-into-local 

service under this section in a local market, the identity of that local market, and the location of the carrier’s proposed local receive facility for that local market; 


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(ii) of the right of such licensee to elect carriage 

under this section or grant retransmission consent 

under section 325(b); 

(iii) that such licensee has 30 days from the date of 

the receipt of such notice to make such election; and 

(iv) that failure to make such election will result in 

the loss of the right to demand carriage under this 

section for the remainder of the 3-year cycle of carriage under section 325. 

(C) TRANSMISSION OF NOTICES.—Such regulations shall 

require that each satellite carrier shall transmit the notices required by such regulation via certified mail to the 

address for such television station licensee listed in the 

consolidated database system maintained by the Commission. 

(i) PRIVACY RIGHTS OF SATELLITE SUBSCRIBERS.—

(1) NOTICE.—At the time of entering into an agreement to 

provide any satellite service or other service to a subscriber 

and at least once a year thereafter, a satellite carrier shall provide notice in the form of a separate, written statement to such 

subscriber which clearly and conspicuously informs the subscriber of—

(A) the nature of personally identifiable information collected or to be collected with respect to the subscriber and 

the nature of the use of such information; 

(B) the nature, frequency, and purpose of any disclosure 

which may be made of such information, including an 

identification of the types of persons to whom the disclosure may be made; 

(C) the period during which such information will be 

maintained by the satellite carrier; 

(D) the times and place at which the subscriber may 

have access to such information in accordance with paragraph (5); and 

(E) the limitations provided by this section with respect 

to the collection and disclosure of information by a satellite 

carrier and the right of the subscriber under paragraphs 

(7) and (9) to enforce such limitations.In the case of subscribers who have entered into such an agreement before 

the effective date of this subsection, such notice shall be 

provided within 180 days of such date and at least once a 

year thereafter. 

(2) DEFINITIONS.—For purposes of this subsection, other than 

paragraph (9)—

(A) the term ‘‘personally identifiable information’’ does 

not include any record of aggregate data which does not 

identify particular persons; 

(B) the term ‘‘other service’’ includes any wire or radio 

communications service provided using any of the facilities 

of a satellite carrier that are used in the provision of satellite service; and 

(C) the term ‘‘satellite carrier’’ includes, in addition to 

persons within the definition of satellite carrier, any person who—


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(i) is owned or controlled by, or under common ownership or control with, a satellite carrier; and 

(ii) provides any wire or radio communications service. 

(3) PROHIBITIONS.— (A) CONSENT TO COLLECTION.—Except as provided in 

subparagraph (B), a satellite carrier shall not use any facilities used by the satellite carrier to collect personally 

identifiable information concerning any subscriber without 

the prior written or electronic consent of the subscriber 

concerned. 

(B) EXCEPTIONS.—A satellite carrier may use such facilities to collect such information in order to—

(i) obtain information necessary to render a satellite 

service or other service provided by the satellite carrier to the subscriber; or 

(ii) detect unauthorized reception of satellite communications. 

(4) DISCLOSURE.—

(A) CONSENT TO DISCLOSURE.—Except as provided in 

subparagraph (B), a satellite carrier shall not disclose personally identifiable information concerning any subscriber 

without the prior written or electronic consent of the subscriber concerned and shall take such actions as are necessary to prevent unauthorized access to such information 

by a person other than the subscriber or satellite carrier. 

(B) EXCEPTIONS.—A satellite carrier may disclose such 

information if the disclosure is— (i) necessary to render, or conduct a legitimate business activity related to, a satellite service or other 

service provided by the satellite carrier to the subscriber; 

(ii) subject to paragraph (9), made pursuant to a 

court order authorizing such disclosure, if the subscriber is notified of such order by the person to whom 

the order is directed; 

(iii) a disclosure of the names and addresses of subscribers to any satellite service or other service, if—

(I) the satellite carrier has provided the subscriber the opportunity to prohibit or limit such 

disclosure; and 

(II) the disclosure does not reveal, directly or indirectly, the—

(aa) extent of any viewing or other use by 

the subscriber of a satellite service or other 

service provided by the satellite carrier; or 

(bb) the nature of any transaction made by 

the subscriber over any facilities used by the 

satellite carrier; or 

(iv) to a government entity as authorized under 

chapter 119, 121, or 206 of title 18, United States 

Code, except that such disclosure shall not include 

records revealing satellite subscriber selection of video 

programming from a satellite carrier. 


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(5) ACCESS BY SUBSCRIBER.—A satellite subscriber shall be 

provided access to all personally identifiable information regarding that subscriber which is collected and maintained by 

a satellite carrier. Such information shall be made available to 

the subscriber at reasonable times and at a convenient place 

designated by such satellite carrier. A satellite subscriber shall 

be provided reasonable opportunity to correct any error in such 

information. 

(6) DESTRUCTION OF INFORMATION.—A satellite carrier shall 

destroy personally identifiable information if the information is 

no longer necessary for the purpose for which it was collected 

and there are no pending requests or orders for access to such 

information under paragraph (5) or pursuant to a court order. 

(7) PENALTIES.—Any person aggrieved by any act of a satellite carrier in violation of this section may bring a civil action 

in a United States district court. The court may award—

(A) actual damages but not less than liquidated damages 

computed at the rate of $100 a day for each day of violation or $1,000, whichever is higher; 

(B) punitive damages; and 

(C) reasonable attorneys’ fees and other litigation costs 

reasonably incurred.The remedy provided by this subsection shall be in addition to any other lawful remedy 

available to a satellite subscriber. 

(8) RULE OF CONSTRUCTION.—Nothing in this title shall be 

construed to prohibit any State from enacting or enforcing laws 

consistent with this section for the protection of subscriber privacy. 

(9) COURT ORDERS.—Except as provided in paragraph 

(4)(B)(iv), a governmental entity may obtain personally identifiable information concerning a satellite subscriber pursuant to 

a court order only if, in the court proceeding relevant to such 

court order—

(A) such entity offers clear and convincing evidence that 

the subject of the information is reasonably suspected of 

engaging in criminal activity and that the information 

sought would be material evidence in the case; and 

(B) the subject of the information is afforded the opportunity to appear and contest such entity’s claim. 

(j) REGULATIONS BY COMMISSION.—Within 1 year after the date 

of the enactment of this section, the Commission shall issue regulations implementing this section following a rulemaking proceeding. 

The regulations prescribed under this section shall include requirements on satellite carriers that are comparable to the requirements 

on cable operators under sections 614(b)(3) and (4) and 615(g)(1) 

and (2). 

(k) DEFINITIONS.—As used in this section: 

(1) DISTRIBUTOR.—The term ‘‘distributor’’ means an entity 

which contracts to distribute secondary transmissions from a 

satellite carrier and, either as a single channel or in a package 

with other programming, provides the secondary transmission 

either directly to individual subscribers or indirectly through 

other program distribution entities. 


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(2) LOCAL RECEIVE FACILITY.—The term ‘‘local receive facility’’ means the reception point in each local market which a 

satellite carrier designates for delivery of the signal of the station for purposes of retransmission. 

(3) LOCAL MARKET.—The term ‘‘local market’’ has the meaning given that term under section 122(j) of title 17, United 

States Code. 

(4) LOW POWER TELEVISION STATION.—The term ‘‘low power 

television station’’ means a low power television station as defined under section 74.701(f) of title 47, Code of Federal Regulations, as in effect on June 1, 2004. For purposes of this paragraph, the term ‘‘low power television station’’ includes a low 

power television station that has been accorded primary status 

as a Class A television licensee under section 73.6001(a) of title 

47, Code of Federal Regulations. 

(5) SATELLITE CARRIER.—The term ‘‘satellite carrier’’ has the 

meaning given such term under section 119(d) of title 17, 

United States Code. 

(6) SECONDARY TRANSMISSION.—The term ‘‘secondary transmission’’ has the meaning given such term in section 119(d) of 

title 17, United States Code. 

(7) SUBSCRIBER.—The term ‘‘subscriber’’ has the meaning 

given that term under section 122(j) of title 17, United States 

Code. 

(8) TELEVISION BROADCAST STATION.—The term ‘‘television 

broadcast station’’ has the meaning given such term in section 

325(b)(7). 

(l) SPECIFIC CARRIAGE OBLIGATIONS AFTER DIGITAL TRANSITION.—

(1) DIGITAL VIDEO SIGNAL.—With respect to any television 

broadcast station that is transmitting broadcast programming 

exclusively in the digital television service in a local market in 

the United States, a satellite carrier carrying the digital signal 

of any other television broadcast station in that local market 

shall carry the station’s primary video required to be carried 

and program-related material without material degradation, if 

the licensee for that station relies on this section to obtain carriage of the station’s video signal and program-related material 

on that satellite carrier’s system in that market. 

(2) FORMATTING OF PRIMARY VIDEO.—A satellite carrier shall 

offer the primary video and program-related material of a local 

television station described in paragraph (1) in the digital format transmitted by the station if the satellite carrier carries the 

primary video of any other television broadcast station in that 

local market in the same digital format. 

(3) MULTIPLE FORMATS PERMITTED.—A satellite carrier may 

offer the primary video and program-related material of a local 

television broadcast station described in paragraph (1) in any 

analog or digital format or formats, whether or not doing so requires conversion from the format transmitted by the local television broadcast station, so long as— (A) the satellite carrier offers the primary video and program-related material in the converted analog or digital 

format or formats without material degradation; and 


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(B) also offers the primary video and program-related 

material in the manner or manners required by this paragraph. 

(4) TRANSITIONAL CONVERSIONS.—Notwithstanding any requirement in paragraph (1) or (2) to carry the primary video 

and program-related material in the digital format transmitted 

by the local television station, but subject to the prohibition on 

material degradation, until February 17, 2014, a satellite carrier— (A) shall offer the primary video and program-related 

material of any local television broadcast station required 

to be carried under paragraph (1) in the format or formats 

necessary for such primary video and program-related material to be viewable on analog and digital televisions; and 

(B) may convert the primary video and program-related 

material to standard-definition digital format in lieu of offering it in the digital format transmitted by the local television station. 

(5) LOCATION AND METHOD OF CONVERSION.—A satellite carrier may perform any conversion permitted or required by this 

paragraph at any location, from the local receive facility to the 

customer premises, inclusive. 

(6) CONVERSIONS NOT TREATED AS DEGRADATION.—Any conversion permitted or required by this paragraph shall not, by 

itself, be treated as a material degradation. 

(7) CARRIAGE OF PROGRAM-RELATED MATERIAL.—The obligation to carry program-related material under this paragraph is 

effective only to the extent technically feasible. 

(8) DEFINITION OF STANDARD-DEFINITION FORMAT.—For purposes of this subsection, the primary video shall be in standard 

definition digital format if such primary video meets the criteria for such format specified in the standard recognized by the 

Commission in section 73.682 of its rules (47 C.F.R. 73.682) or 

a successor regulation. 

(9) MATERIAL DEGRADATION.—For purposes of this subsection, 

transmission of a digital signal over a satellite system in a compressed bitstream shall not be considered material degradation 

as long as such compression does not materially affect the picture quality the consumer receives. 

* * * * * * * 

SEC. 342. PROTECTION OF DIGITAL AUDIO BROADCASTING CONTENT. 

(a) IN GENERAL.—Subject to section 454(d)(2) of the Digital Content Protection Act of 2006, the Commission may promulgate regulations governing the distribution of audio content with respect to—

(1) digital radio broadcasts; 

(2) satellite digital radio transmissions; and 

(3) digital radios. 

(b) MONITORING ORGANIZATIONS.— (1) IN GENERAL.—The Commission shall ensure that a performing rights society or a mechanical rights organization, or 

any entity acting on behalf of such a society or organization, is 

granted a license for free or for a de minimis fee to cover only 

the reasonable costs to the licensor of providing the license, and 


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on reasonable, nondiscriminatory terms and conditions, to access and retransmit as necessary any content contained in such 

transmissions protected by content protection or similar technologies, if— (A) the license is used to carry out the activities of such 

society, organization, or entity in monitoring the public performance or other uses of copyrighted works; and 

(B) such society, organization, or entity employs reasonable methods to protect any such content accessed from further distribution. 

(2) PROTECTED ACTIVITIES.—Nothing shall preclude or prevent a performing rights organization, a mechanical rights organization, a monitoring service, a measuring service, or any 

entity owned in whole or in part by, or acting on behalf of, such 

an organization or service, from monitoring or measuring public performances or other uses of copyrighted works, advertisements, or announcements contained in performances or other 

uses, or other information concerning the content or audience of 

such performances or other uses. 

(3) ALTERNATIVE LICENSING LANGUAGE.—The Commission 

may require that any such organization, service, or entity be 

given a license on either a gratuitous basis or for a de minimis 

fee to cover only the reasonable costs to the licensor of providing 

the license, and on reasonable, nondiscriminatory terms, to access, record, and retransmit as necessary any content contained 

in any such performance or use protected by content protection 

or similar technology, if—

(A) the license is used for carrying out the activities of 

such organizations, services, or entities in monitoring or 

measuring the public performance or other use of copyrighted works, advertisements, or announcements, or other 

information concerning the content or audience of such performances or uses; and 

(B) the organizations, services, or entities employ reasonable methods to protect any such content accessed from further distribution. 

SEC. 343. ELIGIBLE BROADCAST TELEVISION SPECTRUM MADE AVAILABLE FOR WIRELESS USE. 

(a) IN GENERAL.—Effective 270 days after the date of enactment 

of the WIN Act of 2006, a certified unlicensed device may use eligible broadcast television frequencies in a manner that protects licensees from harmful interference. 

(b) COMMISSION TO FACILITATE USE.—Within 270 days after the 

date of enactment of that Act, the Commission shall adopt technical 

and device rules in ET Docket No. 04–186 to facilitate the efficient 

use of eligible broadcast television frequencies by certified unlicensed devices, which shall include rules and procedures—

(1) to protect licensees from harmful interference from certified unlicensed devices; 

(2) to require certification of unlicensed devices designed to be 

operated in the eligible broadcast television frequencies that includes testing, which may include testing in an independent 

laboratory certified by the Commission and field testing, that 

demonstrates—


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(A) compliance with the requirements set forth pursuant 

to this paragraph; and 

(B) that such compliance effectively protects licensees 

from harmful interference; 

(3) to require manufacturers of such devices to include a 

means of disabling or modifying the device remotely if the Commission determines that certain certified unlicensed devices may 

cause harmful interference to licensees; 

(4) to act immediately on any bona fide complaints from licensees that a certified unlicensed device causes harmful interference including verification, in the field, of actual harmful interference; and 

(5) to limit the operation or use of certified unlicensed devices 

within any geographic area in which a public safety entity is 

authorized to operate as a primary licensee within the eligible 

broadcast television frequencies. 

(c) DEFINITIONS.—In this section: 

(1) CERTIFIED UNLICENSED DEVICE.—The term ‘‘certified unlicensed device’’ means a device certified under subsection (b)(2). 

(2) ELIGIBLE BROADCAST TELEVISION FREQUENCIES.—The 

term ‘‘eligible broadcast television frequencies’’ means the following frequencies: 

(A) All frequencies between 54 and 72 megaHertz, inclusive. 

(B) All frequencies between 76 and 88 megaHertz, inclusive. 

(C) All frequencies between 174 and 216 megaHertz, inclusive. 

(D) All frequencies between 470 and 608 megaHertz, inclusive. 

(E) All frequencies between 614 and 698 megaHertz, inclusive. 

(3) LICENSEE.—The term ‘‘licensee’’ means a licensee, as defined in section 3(24), that is operating in a manner that is not 

inconsistent with its license. 

SEC. 344. RADIO SPECTRUM REVIEW. 

(a) IN GENERAL.—Not later than 5 years after the date of enactment of the Rural Wireless and Broadband Service Act of 2006, and 

every 5 years thereafter, the Federal Communications Commission 

and the National Telecommunications and Information Administration shall—

(1) conduct a band-by-band analysis of the spectrum managed by each such agency; and 

(2) report to the Congress any such bands identified, in the 

determination of each such agency, as not being utilized in an 

effective or efficient manner. 

(b) AGENCY AUTHORITY.—

(1) COLLECTION OF INFORMATION.—In conducting the analysis required under subsection (a)(1), the Federal Communications Commission and the National Telecommunications and 

Information Administration may require licensees and other 

spectrum users to provide information regarding spectrum 

usage. 


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(2) EXEMPTION FROM PAPERWORK REDUCTION ACT.—The collection of any information required under paragraph (1) shall 

be exempt from the provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.). 

* * * * * * 

* 

TITLE V—PENAL PROVISIONS; FORFEITURES 

SEC. 503. FORFEITURES. 

[47 U.S.C. 503] 

(a) REBATES AND OFFSETS.—Any person who shall deliver messages for interstate or foreign transmission to any carrier, or for 

whom as sender or receiver, any such carrier shall transmit any 

interstate or foreign wire or radio communication, who shall knowingly by employee, agent, officer, or otherwise, directly or indirectly, by or through any means or device whatsoever, receive or 

accept from such common carrier any sum of money or any other 

valuable consideration as a rebate or offset against the regular 

charges for transmission of such messages as fixed by the schedules of charges provided for in this Act, shall in addition to any 

other penalty provided by this Act forfeit to the United States a 

sum of money three times the value of any other consideration so 

received or accepted, to be ascertained by the trial court; and in the 

trial of said action all such rebates or other considerations so received or accepted for a period of six years prior to the commencement of the action, may be included therein, and the amount recovered shall be three times the total amount of money, or three times 

the total value of such consideration, so received or accepted, or 

both, as the case may be. 

(b) ACTIVITIES CONSTITUTING VIOLATIONS AUTHORIZING IMPOSI- TION OF FORFEITURE PENALTY; AMOUNT OF PENALTY; PROCEDURES

APPLICABLE; PERSONS SUBJECT TO PENALTY; LIABILITY EXEMPTION

PERIOD.—

(1) Any person who is determined by the Commission, in accordance with paragraph (3) or (4) of this subsection, to have—

(A) willfully or repeatedly failed to comply substantially 

with the terms and conditions of any license, permit, certificate, or other instrument or authorization issued by the 

Commission; 

(B) willfully or repeatedly failed to comply with any of 

the provisions of this Act or of any rule, regulation, or 

order issued by the Commission under this Act or under 

any treaty, convention, or other agreement to which the 

United States is a party and which is binding upon the 

United States; 

(C) violated any provision of section 317(c) or 508(a) of 

this Act; or 

(D) violated any provision of section 1304, 1343, or 1464 

of title 18, United States Code;shall be liable to the United 

States for a forfeiture penalty. A forfeiture penalty under 

this subsection shall be in addition to any other penalty 

provided for by this Act; except that this subsection shall 


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not apply to any conduct which is subject to forfeiture 

under title II, part II or III of title III, or section 506 of 

this Act. 

(2)(A) If the violator is (i) a broadcast station licensee or permittee, (ii) a cable television operator, or (iii) an applicant for 

any broadcast or cable television operator license, permit, certificate, or other instrument or authorization issued by the 

Commission, the amount of any forfeiture penalty determined 

under this section shall not exceed $25,000 for each violation 

or each day of a continuing violation, except that the amount 

assessed for any continuing violation shall not exceed a total 

of $250,000 for any single act or failure to act described in 

paragraph (1) of this subsection. 

(B) If the violator is a common carrier subject to the provisions of this Act or an applicant for any common carrier 

license, permit, certificate, or other instrument of authorization issued by the Commission, the amount of any forfeiture penalty determined under this subsection shall not 

exceed ø$100,000¿ $1,000,000 for each violation or each 

day of a continuing violation, except that the amount assessed for any continuing violation shall not exceed a total 

of ø$1,000,000¿ $10,000,000 for any single act or failure to 

act described in paragraph (1) of this subsection. 

(C) Notwithstanding subparagraph (A), if the violator 

is— (i) (I) a broadcast station licensee or permittee; or 

(II) an applicant for any broadcast license, permit, certificate, or other instrument or authorization issued by the Commission; and 

(ii) determined by the Commission under paragraph 

(1) to have broadcast obscene, indecent, or profane language, the amount of any forfeiture penalty determined under this subsection shall not exceed $325,000 

for each violation or each day of a continuing violation, 

except that the amount assessed for any continuing 

violation shall not exceed a total of $3,000,000 for any 

single act or failure to act. 

(D) In any case not covered in subparagraph (A), (B), or 

(C), the amount of any forfeiture penalty determined under 

this subsection shall not exceed $10,000 for each violation 

or each day of a continuing violation, except that the 

amount assessed for any continuing violation shall not exceed a total of $75,000 for any single act or failure to act 

described in paragraph (1) of this subsection. 

(E) The amount of such forfeiture penalty shall be assessed by the Commission, or its designee, by written notice. In determining the amount of such a forfeiture penalty, the Commission or its designee shall take into account the nature, circumstances, extent, and gravity of the 

violation and, with respect to the violator, the degree of 

culpability, any history of prior offenses, ability to pay, and 

such other matters as justice may require. 

(3)(A) At the discretion of the Commission, a forfeiture penalty may be determined against a person under this subsection 


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after notice and an opportunity for a hearing before the Commission or an administrative law judge thereof in accordance 

with section 554 of title 5, United States Code. Any person 

against whom a forfeiture penalty is determined under this 

paragraph may obtain review thereof pursuant to section 

402(a). 

(B) If any person fails to pay an assessment of a forfeiture penalty determined under subparagraph (A) of this 

paragraph, after it has become a final and unappealable 

order or after the appropriate court has entered final judgment in favor of the Commission, the Commission shall 

refer the matter to the Attorney General of the United 

States, who shall recover the amount assessed in any appropriate district court of the United States. In such action, the validity and appropriateness of the final order imposing the forfeiture penalty shall not be subject to review. 

(4) Except as provided in paragraph (3) of this subsection, no 

forfeiture penalty shall be imposed under this subsection 

against any person unless and until— (A) the Commission issues a notice of apparent liability, 

in writing, with respect to such person; 

(B) such notice has been received by such person, or 

until the Commission has sent such notice to the last 

known address of such person, by registered or certified 

mail; and 

(C) such person is granted an opportunity to show, in 

writing, within such reasonable period of time as the Commission prescribes by rule or regulation, why no such forfeiture penalty should be imposed. 

Such a notice shall (i) identify each specific provision, term, 

and condition of any Act, rule, regulation, order, treaty, convention, or other agreement, license, permit, certificate, instrument, or authorization which such person apparently violated 

or with which such person apparently failed to comply; (ii) set 

forth the nature of the act or omission charged against such 

person and the facts upon which such charge is based; and (iii) 

state the date on which such conduct occurred. Any forfeiture 

penalty determined under this paragraph shall be recoverable 

pursuant to section 504(a) of this Act. 

(5) No forfeiture liability shall be determined under this subsection against any person, if such person does not hold a license, permit, certificate, or other authorization issued by the 

Commission, and if such person is not an applicant for a license, permit, certificate, or other authorization issued by the 

Commission, unless, prior to the notice required by paragraph 

(3) of this subsection or the notice of apparent liability required 

by paragraph (4) of this subsection, such person (A) is sent a 

citation of the violation charged; (B) is given a reasonable opportunity for a personal interview with an official of the Commission, at the field office of the Commission which is nearest 

to such person’s place of residence; and (C) subsequently engages in conduct of the type described in such citation. The 

provisions of this paragraph shall not apply, however, if the 

person involved is engaging in activities for which a license, 


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permit, certificate, or other authorization is required, or is a 

cable television system operator, if the person involved is 

transmitting on frequencies assigned for use in a service in 

which individual station operation is authorized by rule pursuant to section 307(e), or in the case of violations of section 

303(q), if the person involved is a nonlicensee tower owner who 

has previously received notice of the obligations imposed by 

section 303(q) from the Commission or the permittee or licensee who uses that tower. Whenever the requirements of this 

paragraph are satisfied with respect to a particular person, 

such person shall not be entitled to receive any additional citation of the violation charged, with respect to any conduct of the 

type described in the citation sent under this paragraph. 

(6) No forfeiture penalty shall be determined or imposed 

against any person under this subsection if— (A) such person holds a broadcast station license issued 

under title III of this Act and if the violation charged occurred—

(i) more than 1 year prior to the date of issuance of 

the required notice or notice of apparent liability; or 

(ii) prior to the date of commencement of the current 

term of such license,whichever is earlier; øor¿ 

(B) such person is a common carrier subject to the provisions 

of this Act or an applicant for any common carrier license, permit, certificate, or other instrument of authorization issued by 

the Commission and if the violation charged occurred more 

than 3 years prior to the date of issuance of the required notice 

or notice of apparent liability; or 

ø(B)¿ (C) such person does not hold a broadcast station 

license issued under title III of this Act and if the violation 

charged occurred more than 1 year prior to the date of 

issuance of the required notice or notice of apparent liability. 

For purposes of this paragraph, ‘‘date of commencement of the 

current term of such license’’ means the date of commencement 

of the last term of license for which the licensee has been 

granted a license by the Commission. A separate license term 

shall not be deemed to have commenced as a result of continuing a license in effect under section 307(c) pending decision 

on an application for renewal of the license. 

(7) APPLICATION TO VIDEO SERVICE PROVIDERS.—In this section 

the terms ‘‘cable television operator’’ and ‘‘cable television system operator’’ include a video service provider (as defined in section 602 

of this Act). 

(8) INDEPENDENT NETWORK AFFILIATES.—

(A) IN GENERAL.—No forfeiture penalty shall be determined or imposed under paragraph (2) of this subsection 

against an independent network affiliate for a violation of 

any section of title 18, United States Code, referred to in 

paragraph (1)(D) with respect to network-originated programming— (i) that the affiliate has not been afforded the reasonable opportunity to preview prior to its scheduled air 

time; or 


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(ii) for which the network has failed to advise the affiliate prior to the scheduled air time that the programming contains content that could be in violation of any 

such section. 

(B) INDEPENDENT NETWORK AFFILIATE DEFINED.—In this 

paragraph, the term ‘‘independent network affiliate’’ means 

a television broadcast station licensee that is neither owned 

nor controlled by a television network (as defined in section 

340(d)(5) of this Act. 

TITLE VI—øCABLE COMMUNICATIONS¿ VIDEO 

SERVICES 

PART I—GENERAL PROVISIONS 

SEC. 601. PURPOSES. 

ø47 U.S.C. 521¿ 

The purposes of this title are to— (1) establish a national policy concerning øcable¿ video service communications; 

(2) establish franchise procedures and standards which encourage the growth and development of øcable¿ video service 

systems and which assure that øcable¿ video service systems 

are responsive to the needs and interests of the local community; 

(3) establish guidelines for the exercise of Federal, State, and 

local authority with respect to the regulation of øcable¿ video 

service systems; 

(4) assure that øcable¿ video service communications provide 

and are encouraged to provide the widest possible diversity of 

information sources and services to the public; 

(5) establish an orderly process for franchise renewal which 

protects øcable operators¿ video service providers against unfair denials of renewal where the øoperator’s¿ provider’s past 

performance and proposal for future performance meet the 

standards established by this title; and 

(6) promote competition in øcable¿ video service communications and minimize unnecessary regulation that would impose 

an undue economic burden on øcable¿ video service systems. 

SEC. 602. DEFINITIONS. 

ø47 U.S.C. 522¿ 

For purposes of this øtitle—¿ title: 

(1) ACTIVATED CHANNELS.—øthe¿ The term ‘‘activated channels’’ means those channels engineered at the headend of a 

øcable system¿ video service system for the provision of services 

generally available to residential subscribers of the cable system, regardless of whether such services actually are provided, 

including any channel designated for public, educational, or 

governmental øuse;¿ use. 

(2) AFFILIATE.—øthe¿ The term ‘‘affiliate’’, when used in relation to any person, means another person who owns or controls, is owned or controlled by, or is under common ownership 

or control with, such øperson;¿ person. 


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(3) BASIC CABLE SERVICE.—øthe¿ The term ‘‘basic cable service’’ means any service tier which includes the retransmission 

of local television broadcast øsignals;¿ signals. 

(4) CABLE CHANNEL.—øthe¿ The terms ‘‘cable channel’’ or 

‘‘channel’’ means a portion of the electromagnetic frequency 

spectrum which is used in a cable system and which is capable 

of delivering a television channel (as television channel is defined by the Commission by øregulation);¿ regulation) or its 

equivalent (as determined by the Commission). 

(5) CABLE OPERATOR.—øthe¿ The term ‘‘cable operator’’

means any person or group of persons (A) who provides cable 

service over a cable system and directly or through one or more 

affiliates owns a significant interest in such cable system, or 

(B) who otherwise controls or is responsible for, through any 

arrangement, the management and operation of such a cable 

øsystem;¿ system. 

(6) CABLE SERVICE.—øthe¿ The term ‘‘cable service’’ means—

(A) the one-way transmission to subscribers of (i) video 

programming, or (ii) other programming service, and 

(B) subscriber interaction, if any, which is required for 

the selection or use of such video programming or other 

programming øservice;¿ service. 

(7) CABLE SYSTEM.—øthe¿ The term ‘‘cable system’’ means a 

facility, consisting of a set of closed transmission paths and associated signal generation, reception, and control equipment 

that is designed to provide cable service which includes video 

programming and which is provided to multiple subscribers 

within a community, but such term does not include (A) a facility that serves only to retransmit the television signals of 1 or 

more television broadcast stations; (B) a facility that serves 

subscribers without using any public right-of-way; (C) a facility 

of a common carrier which is subject, in whole or in part, to 

the provisions of title II of this Act, except that such facility 

shall be considered a cable system (other than for purposes of 

section 621(c)) to the extent such facility is used in the transmission of video programming directly to subscribers, unless 

the extent of such use is solely to provide interactive on-demand services; (D) an open video system that complies with 

section 653 of this title; or (E) any facilities of any electric utility used solely for operating its electric utility øsystems;¿ systems. 

(8) FEDERAL AGENCY.—øthe¿ The term ‘‘Federal agency’’

means any agency of the United States, including the øCommission;¿ Commission. 

(9) FRANCHISE.—øthe¿ The term ‘‘franchise’’ means an initial 

authorization, or renewal thereof (including a renewal of an 

authorization which has been granted subject to section 626), 

issued by a franchising authority, whether such authorization 

is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, which authorizes the 

construction or operation of a øcable system¿ video service 

ƒsystem;≈ system. 


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(10) FRANCHISING AUTHORITY.—øthe¿ The term ‘‘franchising 

authority’’ means any governmental entity empowered by Federal, State, or local law to grant a øfranchise;¿ franchise. 

(11) GRADE B CONTOUR.—øthe¿ The term ‘‘grade B contour’’ means the field strength of a television broadcast station computed in accordance with regulations promulgated by the 

øCommission;¿ Commission. 

(12) HEADEND.—The term ‘‘headend’’ means the headend of a 

cable system or its equivalent as determined by the Commission. 

ø(12)¿ (13) INTERACTIVE ON-DEMAND SERVICES.—øthe¿ The 

term ‘‘interactive on-demand services’’ means a service providing video programming to subscribers over switched networks on an on-demand, point-to-point basis, but does not include services providing video programming prescheduled by 

the programming øprovider;¿ provider. 

(14) INSTITUTIONAL NETWORK.—The term ‘‘institutional network’’ means a communication network constructed by a cable 

operator that is generally available only to subscribers who are 

not residential subscribers. 

ø(13)¿ (15) MULTICHANNEL VIDEO PROGRAMMING DIS- TRIBUTOR.—øthe¿ The term ‘‘multichannel video programming 

distributor’’ means a person such as, but not limited to, a cable 

operator, a multichannel multipoint distribution service, a direct broadcast satellite service, or a television receive-only satellite program distributor, who makes available for purchase, 

by subscribers or customers, multiple channels of video øprogramming;¿ programming. 

ø(14)¿ (16) OTHER PROGRAMMING SERVICE.—øthe¿ The term 

‘‘other programming service’’ means information that a øcable 

operator¿ video service provider makes available to all subscribers øgenerally;¿ generally. 

ø(15)¿ (17) PERSON.—øthe¿ The term ‘‘person’’ means an individual, partnership, association, joint stock company, trust, 

corporation, or governmental øentity;¿ entity. 

ø(16)¿ (18) PUBLIC, EDUCATIONAL, OR GOVERNMENTAL ACCESS

FACILITIES.—øthe¿ The term ‘‘public, educational, or governmental access facilities’’ means— (A) channel capacity designated for public, educational, 

or governmental use; and 

(B) facilities and equipment for the use of such channel 

øcapacity;¿ capacity. 

(19) SATELLITE CARRIER.—The term ‘‘satellite carrier’’ means 

an entity that uses the facilities of a satellite or satellite service 

licensed by the Commission and operates in the Fixed-Satellite 

Service under part 25 of title 47, Code of Federal Regulations, 

or the Direct Broadcast Satellite Service under part 100 of title 

47, Code of Federal Regulations, to establish and operate a 

channel of communications for point-to-multipoint distribution 

of television station signals, and that owns or leases capacity or 

service on a satellite in order to provide such point-tomultipoint distribution, except to the extent that such entity provides such distribution pursuant to tariff under this Act, for 

purposes other than for private home viewing. 


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ø(17)¿ (20) SERVICE TIER.—øthe¿ The term ‘‘service tier’’

means a category of øcable service¿ video service or other services provided by a øcable operator¿ video service provider and 

for which a separate rate is charged by the øcable operator¿ 

video service ƒprovider;¿ provider. 

ø(18)¿ (21) STATE.—øthe¿ The term ‘‘State’’ means any State, 

or political subdivision, or agency øthereof;¿ thereof. 

ø(19)¿ (22) USABLE ACTIVATED CHANNELS.—øthe¿ The term 

‘‘usable activated channels’’ means activated channels of a 

cable system, except those channels whose use for the distribution of broadcast signals would conflict with technical and safety regulations as determined by the øCommission; and¿ Commission. 

ø(20)¿ (23) VIDEO PROGRAMMING.—øthe¿ The term ‘‘video 

programming’’ means programming provided by, or generally 

considered comparable to programming provided by, a television broadcast station. 

(24) VIDEO SERVICE.—The term ‘‘video service’’ means—

(A) the transmission to subscribers of—

(i) video programming; 

(ii) interactive on-demand service; or 

(iii) other programming service; and 

(B) subscriber interaction, if any, required for the selection or use of such video programming, interactive on-demand service, or other programming service regardless of 

the transmission technology used and regardless of how the 

subscriber interacts with the service. 

(25) VIDEO SERVICE PROVIDER.—The term ‘‘video service provider’’—

(A) means a facilities-based (as determined by the Commission) provider of video service that utilizes a public 

right-of-way in the provision of such service (including 

cable operators and providers offering open video systems 

under section 653), regardless of the transmission technology used and regardless of how the subscriber interacts 

with the service; but 

(B) does not include any person to the extent that the person is providing—

(i) satellite service, including if such service is bundled with, or offered in conjunction with, an Internet 

access service or other broadband capability; 

(ii) video programming using radio communication 

directly to the recipient’s premises; or 

(iii) service via commercial mobile service (as defined 

in section 332(d)). 

SEC. 603. FRANCHISE APPLICATIONS. 

(a) IN GENERAL.—

(1) EXPEDITED PROCESS.—Except as otherwise provided in 

this subsection, a franchising authority shall grant a franchise 

to provide video service within its franchise area to a video 

service provider within 90 calendar days after receiving a franchise application that is complete from the video service provider except for—


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(A) the franchise fee percentage, as provided by section 

622(b)(1); 

(B) the number of public, educational, or governmental 

use channels required by section 611; 

(C) any fee percentage that may be assessed under section 

622(b)(4); and 

(D) the point of contact for the franchising authority. 

(2) STANDARDIZED APPLICATION FORM.—A video service provider shall use the standard franchise application form promulgated by the Commission under section 612. 

(3) RESPONSIBILITIES OF FRANCHISING AUTHORITY—After receiving a franchise application under paragraph (1), a franchising authority shall—

(A) publish public notice of the application within 15 

days after receiving a complete application from a video 

service provider if public notice is required by State or local 

law; and 

(B) complete and return the application form by providing the information described in subparagraphs (A), (B), 

(C), and (D) of paragraph (1) in a manner that is consistent 

with the requirements of this title within 90 calendar days 

after the date on which it was received. 

(4) ACCEPTANCE OF TERMS.—A franchising agreement shall 

take effect 15 calendar days after the date that the completed 

franchise application is received by the applicant under paragraph (3)(B) unless the applicant notifies the franchising authority within that 15-day period that the terms offered are not 

accepted. 

(5) EXCEPTION.—This subsection does not require a franchising authority to approve or complete an application from a 

video service provider if a franchise held by that provider has 

been revoked under section 625(b) by the franchising authority. 

(b) DEEMED APPROVAL.—Except as provided in subsection (a)(5), 

if a franchising authority fails to act on a franchise application that 

meets the requirements of this title within the 90-day period described in subsection (a)(3)(B), the franchise application shall be 

deemed granted—

(1) effective on the 91st day after the franchising authority received the application; 

(2) for a term of 15 years; 

(3) with—

(A) the same percentage of gross revenue paid by the 

cable operator with the most subscribers offering cable service in the franchise area; or 

(B) if there is no cable operator offering cable service in 

the franchise area, 5 percent of gross revenue; and 

(4) with an obligation to provide the number of public, educational, or governmental use channels required by section 611. 

(c) PROCEDURE.—If an application is not granted within the 90- 

day period described in subsection (a)(3)(B) because of subsection 

(a)(5), the applicant may avail itself of the procedures in section 635 

of this Act. 


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

Nothing in this title is intended to affect State or local laws of 

general applicability, except to the extent that such laws are inconsistent with this title. 

SEC. 605. DIRECT BROADCAST SATELLITE SERVICE. 

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

section shall not be construed to prevent taxation of a provider of 

direct-to-home satellite service by a State, to the extent otherwise 

permissible, and shall not preempt State or local laws of general applicability. 

øPART II—USE OF CABLE CHANNELS AND 

CABLE OWNERSHIP RESTRICTIONS¿ 

PART II—USE OF VIDEO SERVICES; 

RESTRICTIONS 

øSEC. 611. CABLE CHANNELS FOR PUBLIC, EDUCATIONAL, OR GOVERNMENTAL USE. 

ø47 U.S.C. 531¿ 

ø(a) A franchising authority may establish requirements in a 

franchise with respect to the designation or use of channel capacity 

for public, educational, or governmental use only to the extent provided in this section. 

ø(b) A franchising authority may in its request for proposals require as part of a franchise, and may require as part of a cable operator’s proposal for a franchise renewal, subject to section 626, 

that channel capacity be designated for public, educational, or governmental use, and channel capacity on institutional networks be 

designated for educational or governmental use, and may require 

rules and procedures for the use of the channel capacity designated 

pursuant to this section. 

ø(c) A franchising authority may enforce any requirement in any 

franchise regarding the providing or use of such channel capacity. 

Such enforcement authority includes the authority to enforce any 

provisions of the franchise for services, facilities, or equipment proposed by the cable operator which relate to public, educational, or 

governmental use of channel capacity, whether or not required by 

the franchising authority pursuant to subsection (b). 

ø(d) In the case of any franchise under which channel capacity 

is designated under subsection (b), the franchising authority shall 

prescribe—

ø(1) rules and procedures under which the cable operator is 

permitted to use such channel capacity for the provision of 

other services if such channel capacity is not being used for the 

purposes designated, and 

ø(2) rules and procedures under which such permitted use 

shall cease. 

ø(e) Subject to section 624(d), a cable operator shall not exercise 

any editorial control over any public, educational, or governmental 

use of channel capacity provided pursuant to this section, except a 

cable operator may refuse to transmit any public access program 


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or portion of a public access program which contains obscenity, indecency, or nudity. 

ø(f) For purposes of this section, the term ‘‘institutional network’’

means a communication network which is constructed or operated 

by the cable operator and which is generally available only to subscribers who are not residential subscribers.¿ 

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

USE. 

(a) IN GENERAL.—A video service provider that obtains a franchise shall provide channel capacity for public, educational, or governmental use that is not less than the channel capacity required of 

the cable operator or video service provider with the greatest number of public, educational, or governmental use channels in the franchise area on the effective date of the franchise. If there is no other 

video service provider in the franchise area on the effective date of 

the franchise, the video service provider may be required to provide 

up to 3 channels. 

(b) ADJUSTMENT.—Every 15 years after the commencement of a 

franchise granted after April 30, 2006, a franchising authority may 

require a video service provider to increase the channel capacity designated for public, educational, or governmental use, and the channel capacity designated for such use on any institutional networks 

required under subsection (a). The increase may not exceed the 

greater of—

(1) 1 channel; or 

(2) 10 percent of the public, educational, or governmental 

channel capacity required of the video service provider before 

the required increase. 

(c) EDITORIAL CONTROL.—Subject to section 624(a)(1), a video 

service provider shall not exercise any editorial control over any 

public, educational, or governmental use of channel capacity provided pursuant to this section, but a video service provider may 

refuse to transmit any public access program or portion of a public 

access program which contains obscenity. 

(d) TRANSMISSION AND PRODUCTION OF PROGRAMMING.—

(1) PEG PROGRAMMING.—A video service provider shall ensure that all subscribers receive any public, educational, or governmental programming carried by the video service provider 

within the subscriber’s franchise area. 

(2) PRODUCTION RESPONSIBILITY.—The production of any programming provided under this subsection shall be the responsibility of the franchising authority. 

(3) TRANSMISSION RESPONSIBILITY.—The video service provider shall be responsible for the transmission from the signal 

origination point (or points) of the programming, or from the 

point of interconnection with another video service provider already offering the public, educational, or governmental programming under paragraph (4), to the video service provider’s 

subscribers, or any public, educational, or governmental programming produced by or for the franchising authority and 

carried by the video service provider pursuant to this section. 

(4) INTERCONNECTION; COST-SHARING.—Unless 2 video service 

providers otherwise agree to the terms for interconnection and 


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cost sharing, such video service providers shall comply with 

regulations prescribed by the Commission providing for— (A) the interconnection between 2 video service providers 

in a franchise area for transmission of public, educational, 

or governmental programming, without material degradation in signal quality or functionality; and 

(B) the reasonable allocation of the costs of such interconnection between such video service providers. 

(5) DISPLAY OF PROGRAM INFORMATION.—The video service 

provider shall display the program information for public, educational, or governmental programming in any print or electronic program guide in the same manner in which it displays 

program information for other video programming in the franchise area. The video service provider may not omit public, educational, or governmental programming from any navigational 

device, guide, or menu containing other video programming 

that is available to subscribers in the franchise area if the franchising authority provides such programming to the video service provider at a location, in the data format, and in sufficient 

time normally required for the programming to be displayed on 

such device, guide, or menu. 

øSEC. 612. CABLE CHANNELS FOR COMMERCIAL USE. 

ø47 U.S.C. 532¿ 

ø(a) The purpose of this section is to promote competition in the 

delivery of diverse sources of video programming and to assure that 

the widest possible diversity of information sources are made available to the public from cable systems in a manner consistent with 

growth and development of cable systems. 

ø(b)(1) A cable operator shall designate channel capacity for commercial use by persons unaffiliated with the operator in accordance 

with the following requirements: 

ø(A) An operator of any cable system with 36 or more (but 

not more than 54) activated channels shall designate 10 percent of such channels which are not otherwise required for use 

(or the use of which is not prohibited) by Federal law or 

regulation. 

ø(B) An operator of any cable system with 55 or more (but 

not more than 100) activated channels shall designate 15 percent of such channels which are not otherwise required for use 

(or the use of which is not prohibited) by Federal law or 

regulation. 

ø(C) An operator of any cable system with more than 100 activated channels shall designate 15 percent of all such channels. 

ø(D) An operator of any cable system with fewer than 36 activated channels shall not be required to designate channel capacity for commercial use by persons unaffiliated with the operator, unless the cable system is required to provide such 

channel capacity under the terms of a franchise in effect on the 

date of the enactment of this title. 

ø(E) An operator of any cable system in operation on the 

date of the enactment of this title shall not be required to remove any service actually being provided on July 1, 1984, in 

order to comply with this section, but shall make channel caVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00228 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

hmoore on PROD1PC68 with HMRPT
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pacity available for commercial use as such capacity becomes 

available until such time as the cable operator is in full compliance with this section. 

ø(2) Any Federal agency, State, or franchising authority may not 

require any cable system to designate channel capacity for commercial use by unaffiliated persons in excess of the capacity specified 

in paragraph (1), except as otherwise provided in this section. 

ø(3) A cable operator may not be required, as part of a request 

for proposals or as part of a proposal for renewal, subject to section 

626, to designate channel capacity for any use (other than commercial use by unaffiliated persons under this section) except as provided in sections 611 and 637, but a cable operator may offer in a 

franchise, or proposal for renewal thereof, to provide, consistent 

with applicable law, such capacity for other than commercial use 

by such persons. 

ø(4) A cable operator may use any unused channel capacity designated pursuant to this section until the use of such channel capacity is obtained, pursuant to a written agreement, by a person 

unaffiliated with the operator. 

ø(5) For the purposes of this section, the term ‘‘commercial use’’ means the provision of video programming, whether or not for profit. 

ø(6) Any channel capacity which has been designated for public, 

educational, or governmental use may not be considered as designated under this section for commercial use for purpose of this 

section. 

ø(c)(1) If a person unaffiliated with the cable operator seeks to 

use channel capacity designated pursuant to subsection (b) for commercial use, the cable operator shall establish, consistent with the 

purpose of this section and with rules prescribed by the Commission under paragraph (4), the price, terms, and conditions of such 

use which are at least sufficient to assure that such use will not 

adversely affect the operation, financial condition, or market development of the cable system. 

ø(2) A cable operator shall not exercise any editorial control over 

any video programming provided pursuant to this section, or in any 

other way consider the content of such programming, except that 

a cable operator may refuse to transmit any leased access program 

or portion of a leased access program which contains obscenity, indecency, or nudity and may consider such content to the minimum 

extent necessary to establish a reasonable price for the commercial 

use of designated channel capacity by an unaffiliated person. 

ø(3) Any cable system channel designated in accordance with this 

section shall not be used to provide a cable service that is being 

provided over such system on the date of the enactment of this 

title, if the provision of such programming is intended to avoid the 

purpose of this section. 

ø(4)(A) The Commission shall have the authority to—

ø(i) determine the maximum reasonable rates that a cable 

operator may establish pursuant to paragraph (1) for commercial use of designated channel capacity, including the rate 

charged for the billing of rates to subscribers and for the collection of revenue from subscribers by the cable operator for such 

use; 


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ø(ii) establish reasonable terms and conditions for such use, 

including those for billing and collection; and 

ø(iii) establish procedures for the expedited resolution of disputes concerning rates or carriage under this section. 

ø(B) Within 180 days after the date of enactment of this paragraph, the Commission shall establish rules for determining maximum reasonable rates under subparagraph (A)(i), for establishing 

terms and conditions under subparagraph (A)(ii), and for providing 

procedures under subparagraph (A)(iii). 

ø(d) Any person aggrieved by the failure or refusal of a cable operator to make channel capacity available for use pursuant to this 

section may bring an action in the district court of the United 

States for the judicial district in which the cable system is located 

to compel that such capacity be made available. If the court finds 

that the channel capacity sought by such person has not been made 

available in accordance with this section, or finds that the price, 

terms, or conditions established by the cable operator are unreasonable, the court may order such system to make available to such 

person the channel capacity sought, and further determine the appropriate price, terms, or conditions for such use consistent with 

subsection (c), and may award actual damages if it deems such relief appropriate. In any such action, the court shall not consider 

any price, term, or condition established between an operator and 

an affiliate for comparable services. 

ø(e)(1) Any person aggrieved by the failure or refusal of a cable 

operator to make channel capacity available pursuant to this section may petition the Commission for relief under this subsection 

upon a showing of prior adjudicated violations of this section. 

Records of previous adjudications resulting in a court determination that the operator has violated this section shall be considered 

as sufficient for the showing necessary under this subsection. If the 

Commission finds that the channel capacity sought by such person 

has not been made available in accordance with this section, or 

that the price, terms, or conditions established by such system are 

unreasonable under subsection (c), the Commission shall, by rule 

or order, require such operator to make available such channel capacity under price, terms, and conditions consistent with subsection 

(c). 

ø(2) In any case in which the Commission finds that the prior adjudicated violations of this section constitute a pattern or practice 

of violations by an operator, the Commission may also establish 

any further rule or order necessary to assure that the operator provides the diversity of information sources required by this section. 

ø(3) In any case in which the Commission finds that the prior adjudicated violations of this section constitute a pattern or practice 

of violations by any person who is an operator of more than one 

cable system, the Commission may also establish any further rule 

or order necessary to assure that such person provides the diversity 

of information sources required by this section. 

ø(f) In any action brought under this section in any Federal district court or before the Commission, there shall be a presumption 

that the price, terms, and conditions for use of channel capacity 

designated pursuant to subsection (b) are reasonable and in good 


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faith unless shown by clear and convincing evidence to the contrary. 

ø(g) Notwithstanding sections 621(c) and 623(a), at such time as 

cable systems with 36 or more activated channels are available to 

70 percent of households within the United States and are subscribed to by 70 percent of the households to which such systems 

are available, the Commission may promulgate any additional 

rules necessary to provide diversity of information sources. Any 

rules promulgated by the Commission pursuant to this subsection 

shall not preempt authority expressly granted to franchising authorities under this title. 

ø(h) Any cable service offered pursuant to this section shall not 

be provided, or shall be provided subject to conditions, if such cable 

service in the judgment of the franchising authority or the cable 

operator is obscene, or is in conflict with community standards in 

that it is lewd, lascivious, filthy, or indecent or is otherwise unprotected by the Constitution of the United States. This subsection 

shall permit a cable operator to enforce prospectively a written and 

published policy of prohibiting programming that the cable operator reasonably believes describes or depicts sexual or excretory activities or organs in a patently offensive manner as measured by 

contemporary community standards. 

ø(i)(1) Notwithstanding the provisions of subsections (b) and (c), 

a cable operator required by this section to designate channel capacity for commercial use may use any such channel capacity for 

the provision of programming from a qualified minority programming source or from any qualified educational programming source, 

whether or not such source is affiliated with the cable operator . 

The channel capacity used to provide programming from a qualified 

minority programming source or from any qualified educational 

programming source pursuant to this subsection may not exceed 33 

percent of the channel capacity designated pursuant to this section. 

No programming provided over a cable system on July 1, 1990, 

may qualify as minority programming or educational programming 

on that cable system under this subsection. 

ø(2) For purposes of this subsection, the term ‘‘qualified minority 

programming source’’ means a programming source which devotes 

substantially all of its programming to coverage of minority viewpoints, or to programming directed at members of minority groups, 

and which is over 50 percent minority-owned, as the term ‘‘minority’’ is defined in section 309(i)(3)(C)(ii). 

ø(3) For purposes of this subsection, the term ‘‘qualified educational programming source’’ means a programming source which 

devotes substantially all of its programming to educational or instructional programming that promotes public understanding of 

mathematics, the sciences, the humanities, and the arts and has a 

documented annual expenditure on programming exceeding 

$15,000,000. The annual expenditure on programming means all 

annual costs incurred by the programming source to produce or acquire programs which are scheduled to be televised, and specifically excludes marketing, promotion, satellite transmission and 

operational costs, and general administrative costs. 


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ø(4) Nothing in this subsection shall substitute for the requirements to carry qualified noncommercial educational television stations as specified under section 615. 

ø(j)(1) Within 120 days following the date of the enactment of 

this subsection, the Commission shall promulgate regulations designed to limit the access of children to indecent programming, as 

defined by Commission regulations, and which cable operators have 

not voluntarily prohibited under subsection (h) by— ø(A) requiring cable operators to place on a single channel 

all indecent programs, as identified by program providers, intended for carriage on channels designated for commercial use 

under this section; 

ø(B) requiring cable operators to block such single channel 

unless the subscriber requests access to such channel in writing; and 

ø(C) requiring programmers to inform cable operators if the 

program would be indecent as defined by Commission regulations. 

ø(2) Cable operators shall comply with the regulations promulgated pursuant to paragraph (1).¿ 

SEC. 612. STANDARD FRANCHISE APPLICATION FORM. 

(a) IN GENERAL.—Within 30 days after the date of enactment of 

the Video Competition and Savings for Consumers Act of 2006, the 

Commission shall promulgate a standard franchise application 

form, the use of which by franchising authorities shall be mandatory. 

(b) COMPLIANCE COMMITMENTS.—The franchise application form 

shall include a statement, to be signed by the video service provider—

(1) that it agrees to comply with all applicable Federal and 

State statutes and regulations that are consistent with this title; 

(2) that it agrees to comply with all applicable municipal regulations regarding the use and occupation of public rights-ofway in the delivery of video service, including the police powers 

of the municipalities in which the service is delivered that are 

consistent with this title; 

(3) geographically identifying the franchise area in which the 

provider intends to offer cable service pursuant to the standard 

franchise; and 

(4) certifying that the information contained in the notice is 

accurate and correct and that the provider will immediately notify the franchise authority of any material changes in that information during the franchise term. 

(c) PROVISIONS TO BE SUPPLIED.—The franchise application form 

shall include only the following blank spaces to be filled in by the 

video service provider and the franchising authority, as appropriate: 

(1) The name of the video service provider. 

(2) The name and business address of each director and principal executive officer. 

(3) A point of contact for the video service provider. 

(4) A point of contact for the franchising authority. 

(5) The franchise fee percentage under section 622(b)(1). 

(6) Any fee percentage that may be assessed under section 

622(b)(4). 


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(7) The period during which the franchising agreement shall 

be in effect. 

(8) The public, educational, or governmental capacity to be 

provided. 

(9) The physical location of the headend. 

(10) A description of the video service to be provided. 

(11) Signatures. 

(12) Dates for each signature. 

SEC. 613. OWNERSHIP RESTRICTIONS. 

ø47 U.S.C. 533¿ 

ø(a) It shall be unlawful for a cable operator to hold a license for 

multichannel multipoint distribution service, or to offer satellite 

master antenna television service separate and apart from any 

franchised cable service, in any portion of the franchise area served 

by that cable operator’s cable system. The Commission— ø(1) shall waive the requirements of this paragraph for all 

existing multichannel multipoint distribution services and satellite master antenna television services which are owned by a 

cable operator on the date of enactment of this paragraph; 

ø(2) may waive the requirements of this paragraph to the extent the Commission determines is necessary to ensure that all 

significant portions of a franchise area are able to obtain video 

programming; and 

ø(3) shall not apply the requirements of this subsection to 

any cable operator in any franchise area in which a cable operator is subject to effective competition as determined under 

section 623(l).¿ 

[Subsection (b) was repealed by section 302(b)(1) of the Telecommunications Act of 1996 (P.L. 104–104), 110 Stat. 124.] 

ø(c)¿ (a) The Commission may prescribe rules with respect to the 

ownership or control of øcable¿ video service systems by persons 

who own or control other media of mass communications which 

serve the same community served by a øcable¿ video service system. 

ø(d)¿ (b) Any State or franchising authority may not prohibit the 

ownership or control of a øcable¿ video service system by any person because of such person’s ownership or control of any other 

media of mass communications or other media interests. Nothing 

in this section shall be construed to prevent any State or franchising authority from prohibiting the ownership or control of a 

øcable¿ video service system in a jurisdiction by any person (1) because of such person’s ownership or control of any other øcable¿ 

video service system in such jurisdiction; or (2) in circumstances in 

which the State or franchising authority determines that the acquisition of such a øcable¿ video service system may eliminate or reduce competition in the delivery of øcable service¿ video service in 

such jurisdiction. 

ø(e)¿ (c)(1) Subject to paragraph (2), a State or franchising authority may hold any ownership interest in any øcable¿ video service system. 

(2) Any State or franchising authority shall not exercise any editorial control regarding the content of any øcable service¿ video 

service on a øcable¿ video service system in which such governVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00233 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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mental entity holds ownership interest (other than programming 

on any channel designated for educational or governmental use), 

unless such control is exercised through an entity separate from 

the franchising authority. 

ø(f)¿ (d)(1) In order to enhance effective competition, the Commission shall, within one year after the date of enactment of the 

Cable Television Consumer Protection and Competition Act of 

1992, conduct a proceeding— (A) to prescribe rules and regulations establishing reasonable 

limits on the number of øcable¿ video service subscribers a person is authorized to reach through øcable¿ video service systems owned by such person, or in which such person has an 

attributable interest; 

(B) to prescribe rules and regulations establishing reasonable 

limits on the number of channels on a øcable¿ video service 

system that can be occupied by a video programmer in which 

a øcable operator¿ video service provider has an attributable 

interest; and 

(C) to consider the necessity and appropriateness of imposing 

limitations on the degree to which multichannel video programming distributors may engage in the creation or production of video programming. 

(2) In prescribing rules and regulations under paragraph (1), the 

Commission shall, among other public interest objectives— (A) ensure that no øcable operator¿ video service provider or 

group of øcable operators¿ video service providers can unfairly 

impede, either because of the size of any individual øoperator¿ 

provider or because of joint actions by a group of øoperators¿ 

providers of sufficient size, the flow of video programming from 

the video programmer to the consumer; 

(B) ensure that øcable operators¿ video service providers affiliated with video programmers do not favor such programmers in determining carriage on their øcable¿ video service systems or do not unreasonably restrict the flow of the video programming of such programmers to other video distributors; 

(C) take particular account of the market structure, ownership patterns, and other relationships of the øcable¿ video service television industry, including the nature and market power 

of the local franchise, the joint ownership of øcable¿ video service systems and video programmers, and the various types of 

non-equity controlling interests; 

(D) account for any efficiencies and other benefits that might 

be gained through increased ownership or control; 

(E) make such rules and regulations reflect the dynamic nature of the communications marketplace; 

(F) not impose limitations which would bar øcable operators¿video service providers from serving previously unserved 

rural areas; and 

(G) not impose limitations which would impair the development of diverse and high quality video programming. 

ø(g)¿ (e) This section shall not apply to prohibit any combination 

of any interests held by any person on øJuly 1, 1984,¿ the date of 

enactment of the Video Competition and Savings for Consumers Act 

of 2006 to the extent of the interests so held as of such date, if the 


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holding of such interests was not inconsistent with any applicable 

Federal or State law or regulations in effect on that date. 

ø(h)¿ (f) For purposes of this section, the term ‘‘media of mass 

communications’’ shall have the meaning given such term under 

section 309(i)(3)(C)(i) of this Act. 

SEC. 614. CARRIAGE OF LOCAL COMMERCIAL TELEVISION SIGNALS. 

ø47 U.S.C. 534¿ 

(a) CARRIAGE OBLIGATIONS.—Each øcable operator¿ video service 

provider shall carry, on the øcable¿ video service system of that 

øoperator,¿ provider, the signals of local commercial television stations and qualified low power stations as provided by this section. 

Carriage of additional broadcast television signals on such system 

shall be at the discretion of such øoperator,¿ provider, subject to 

section 325(b). 

(b) SIGNALS REQUIRED.— (1) IN GENERAL.—(A) A øcable operator¿ video service provider of a øcable¿ video service system with 12 or fewer usable 

activated channels shall carry the signals of at least three local 

commercial television stations, except that if such a system has 

300 or fewer subscribers, it shall not be subject to any requirements under this section so long as such system does not delete from carriage by that system any signal of a broadcast television station. 

(B) A øcable operator¿ video service provider of a øcable¿ 

video service system with more than 12 usable activated channels shall carry the signals of local commercial television stations, up to one-third of the aggregate number of usable activated channels of such system. 

(2) SELECTION OF SIGNALS.—Whenever the number of local 

commercial television stations exceeds the maximum number 

of signals a øcable¿ video service system is required to carry 

under paragraph (1), the øcable operator¿ video service provider shall have discretion in selecting which such stations 

shall be carried on its øcable¿ video service system, except 

that—(A) under no circumstances shall a øcable operator¿ 

video service provider carry a qualified low power station 

in lieu of a local commercial television station; and 

(B) if the øcable operator¿ video service provider elects 

to carry an affiliate of a broadcast network (as such term 

is defined by the Commission by regulation), such øcable 

operator¿ video service provider shall carry the affiliate of 

such broadcast network whose city of license reference 

point, as defined in section 76.53 of title 47, Code of Federal Regulations (in effect on January 1, 1991), or any successor regulation thereto, is closest to the principal 

headend of the øcable¿ video service system. 

(3) CONTENT TO BE CARRIED.—(A) A øcable operator¿ video 

service provider shall carry in its entirety, on the øcable¿ video 

service system of that øoperator,¿ provider, the primary video, 

accompanying audio, and line 21 closed caption transmission of 

each of the local commercial television stations carried on the 

øcable¿ video service system and, to the extent technically feasible, program-related material carried in the vertical blanking 


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interval or on subcarriers. Retransmission of other material in 

the vertical blanking internal or other nonprogram-related material (including teletext and other subscription and advertisersupported information services) shall be at the discretion of the 

øcable operator.¿ video service provider. Where appropriate and 

feasible, øoperators¿ providers may delete signal enhancements, such as ghost-canceling, from the broadcast signal and 

employ such enhancements at the system headend or 

headends. 

(B) The øcable operator¿ video service provider shall carry 

the entirety of the program schedule of any television station 

carried on the øcable¿ video service system unless carriage of 

specific programming is prohibited, and other programming 

authorized to be substituted, under section 76.67 or subpart F 

of part 76 of title 47, Code of Federal Regulations (as in effect 

on January 1, 1991), or any successor regulations thereto. 

(4) SIGNAL QUALITY.—

(A) NONDEGRADATION; TECHNICAL SPECIFICATIONS.—The 

signals of local commercial television stations that a øcable 

operator¿ video service provider carries shall be carried 

without material degradation. The Commission shall adopt 

carriage standards to ensure that, to the extent technically 

feasible, the quality of signal processing and carriage provided by a øcable¿ video service system for the carriage of 

local commercial television stations will be no less than 

that provided by the system for carriage of any other type 

of signal. 

ƒ(B)≈ DIGITAL VIDEO SIGNAL.—With respect to any television station that is transmitting broadcast programming 

exclusively in the digital television service in a local market, a cable operator of a cable system in that market shall 

carry any digital video signal requiring carriage under this 

section and program-related material in the digital format 

transmitted by that station, without material degradation, 

if the licensee for that station relies on this section or section 615 to obtain carriage of the digital video signal and 

program-related material on that cable system in that market. 

(C) MULTIPLE FORMATS PERMITTED.—A cable operator of 

a cable system may offer the digital video signal and program-related material of a local television station described 

in subparagraph (A) in any analog or digital format or formats, whether or not doing so requires conversion from the 

format transmitted by the local television station, so long 

as— (i) the cable operator offers the digital video signal 

and program-related material in the converted analog 

or digital format or formats without material degradation; and 

(ii) also offers the digital video signal and programrelated material in the manner or manners required by 

this paragraph. 

(D) TRANSITIONAL CONVERSIONS.—Notwithstanding the 

requirement in subparagraph (B) to carry the digital video 


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signal and program-related material in the digital format 

transmitted by the local television station, but subject to the 

prohibition on material degradation, until February 17, 

2014—

(i) a cable operator— (I) shall offer the digital video signal and program-related material in the format or formats 

necessary for such signal and material to be 

viewable on analog and digital televisions; and 

(II) may convert the digital video signal and program-related material to standard-definition digital format in lieu of offering it in the digital format transmitted by the local television station; and 

(ii) notwithstanding clause (i), a cable operator of a 

cable system with an activated capacity of 550 megahertz or less— (I) shall offer the digital video signal and program-related material of the local television station 

described in subparagraph (A), converted to an 

analog format; and 

(II) may, but shall not be required to, offer the 

digital video signal and program-related material 

in any digital format or formats. 

(E) LOCATION AND METHOD OF CONVERSION.—A cable operator of a cable system may perform any conversion permitted or required by this paragraph at any location, from 

the cable head-end to the customer premises, inclusive. 

(F) CONVERSIONS NOT TREATED AS DEGRADATION.—Any 

conversion permitted or required by this paragraph shall 

not, by itself, be treated as a material degradation. 

(G) CARRIAGE OF PROGRAM-RELATED MATERIAL.—The obligation to carry program-related material under this paragraph is effective only to the extent technically feasible. 

(H) DEFINITION OF STANDARD-DEFINITION FORMAT.—For 

purposes of this paragraph, a signal shall be in standard 

definition digital format if such signal meets the criteria 

for such format specified in the standard recognized by the 

Commission in section 73.682 of its rules (47 C.F.R. 73.682) 

or a successor regulation. 

ø(B)¿ (I) ADVANCED TELEVISION.—At such time as the 

Commission prescribes modifications of the standards for 

television broadcast signals, the Commission shall initiate 

a proceeding to establish any changes in the signal carriage requirements of øcable¿ video service television systems necessary to ensure øcable¿ video service carriage of 

such broadcast signals of local commercial television stations which have been changed to conform with such modified standards. 

(5) DUPLICATION NOT REQUIRED.—Notwithstanding paragraph (1), a øcable operator¿ video service provider shall not be 

required to carry the signal of any local commercial television 

station that substantially duplicates the signal of another local 

commercial television station which is carried on its øcable¿ 

video service system, or to carry the signals of more than one 


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local commercial television station affiliated with a particular 

broadcast network (as such term is defined by regulation). If 

a øcable operator¿ video service provider elects to carry on its 

øcable¿ video service system a signal which substantially duplicates the signal of another local commercial television station 

carried on the øcable¿ video service system, or to carry on its 

system the signals of more than one local commercial television 

station affiliated with a particular broadcast network, all such 

signals shall be counted toward the number of signals the øoperator¿ provider is required to carry under paragraph (1). 

(6) CHANNEL POSITIONING.—Each signal carried in fulfillment of the carriage obligations of a øcable operator¿ video 

service provider under this section shall be carried on the 

øcable¿ video service system channel number on which the 

local commercial television station is broadcast over the air, or 

on the channel on which it was carried on July 19, 1985, or on 

the channel on which it was carried on January 1, 1992, at the 

election of the station, or on such other channel number as is 

mutually agreed upon by the station and the øcable operator.¿ 

video service provider. Any dispute regarding the positioning of 

a local commercial television station shall be resolved by the 

Commission. 

(7) SIGNAL AVAILABILITY.—Signals carried in fulfillment of 

the requirements of this section shall be provided to every subscriber of a øcable¿ video service system. Such signals shall be 

viewable via øcable¿ video service on all television receivers of 

a subscriber which are connected to a øcable¿ video service system by a øcable operator¿ video service provider or for which 

a øcable operator¿ video service provider provides a connection. 

If a øcable operator¿ video service provider authorizes subscribers to install additional receiver connections, but does not 

provide the subscriber with such connections, or with the 

equipment and materials for such connections, the øoperator¿ 

provider shall notify such subscribers of all broadcast stations 

carried on the øcable¿ video service system which cannot be 

viewed via øcable¿ video service without a converter box and 

shall offer to sell or lease such a converter box to such subscribers at rates in accordance with section 623(b)(3). 

(8) IDENTIFICATION OF SIGNALS CARRIED.—A øcable operator¿ 

video service provider shall identify, upon request by any person, the signals carried on its system in fulfillment of the requirements of this section. 

(9) NOTIFICATION.—A øcable operator¿ video service provider 

shall provide written notice to a local commercial television 

station at least 30 days prior to either deleting from carriage 

or repositioning that station. No deletion or repositioning of a 

local commercial television station shall occur during a period 

in which major television ratings services measure the size of 

audiences of local television stations. The notification provisions of this paragraph shall not be used to undermine or 

evade the channel positioning or carriage requirements imposed upon øcable operators¿ video service providers under this 

section. 


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(10) COMPENSATION FOR CARRIAGE.—A øcable operator¿ video 

service provider shall not accept or request monetary payment 

or other valuable consideration in exchange either for carriage 

of local commercial television stations in fulfillment of the requirements of this section or for the channel positioning rights 

provided to such stations under this section, except that— (A) any such station may be required to bear the costs 

associated with delivering a good quality signal or a 

baseband video signal to the principal headend of the 

øcable¿ video service system; 

(B) a øcable operator¿ video service provider may accept 

payments from stations which would be considered distant 

signals under section 111 of title 17, United States Code, 

as indemnification for any increased copyright liability resulting from carriage of such signal; and 

(C) a øcable operator¿ video service provider may continue to accept monetary payment or other valuable consideration in exchange for carriage or channel positioning 

of the signal of any local commercial television station carried in fulfillment of the requirements of this section, 

through, but not beyond, the date of expiration of an 

agreement thereon between a øcable operator¿ video service provider and a local commercial television station entered into prior to June 26, 1990. 

(c) LOW POWER STATION CARRIAGE OBLIGATION.— (1) REQUIREMENT.—If there are not sufficient signals of full 

power local commercial television stations to fill the channels 

set aside under subsection (b)— (A) a øcable operator¿ video service provider of a øcable¿ 

video service system with a capacity of 35 or fewer usable 

activated channels shall be required to carry one qualified 

low power station; and 

(B) a øcable operator¿ video service provider of a øcable¿ 

video service system with a capacity of more than 35 usable activated channels shall be required to carry two qualified low power stations. 

(2) USE OF PUBLIC, EDUCATIONAL, OR GOVERNMENTAL CHAN- NELS.—A øcable operator¿ video service provider required to 

carry more than one signal of a qualified low power station 

under this subsection may do so, subject to approval by the 

franchising authority pursuant to section 611, by placing such 

additional station on public, educational, or governmental 

channels not in use for their designated purposes. 

(d) REMEDIES.—

(1) COMPLAINTS BY BROADCAST STATIONS.—Whenever a local 

commercial television station believes that a øcable operator¿ 

video service provider has failed to meet its obligations under 

this section, such station shall notify the øoperator¿ provider, 

in writing, of the alleged failure and identify its reasons for believing that the øcable operator¿ video service provider is obligated to carry the signal of such station or has otherwise failed 

to comply with the channel positioning or repositioning or 

other requirements of this section. The øcable operator¿ video 

service provider shall, within 30 days of such written notificaVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00239 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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tion, respond in writing to such notification and either commence to carry the signal of such station in accordance with 

the terms requested or state its reasons for believing that it is 

not obligated to carry such signal or is in compliance with the 

channel positioning and repositioning and other requirements 

of this section. A local commercial television station that is denied carriage or channel positioning or repositioning in accordance with this section by a øcable operator¿ video service provider may obtain review of such denial by filing a complaint 

with the Commission. Such complaint shall allege the manner 

in which such øcable operator¿ video service provider has failed 

to meet its obligations and the basis for such allegations. 

(2) OPPORTUNITY TO RESPOND.—The Commission shall afford 

such øcable operator¿ video service provider an opportunity to 

present data and arguments to establish that there has been 

no failure to meet its obligations under this section. 

(3) REMEDIAL ACTIONS; DISMISSAL.—Within 120 days after 

the date a complaint is filed, the Commission shall determine 

whether the øcable operator¿ video service provider has met its 

obligations under this section. If the Commission determines 

that the øcable operator¿ video service provider has failed to 

meet such obligations, the Commission shall order the øcable 

operator¿ video service provider to reposition the complaining 

station or, in the case of an obligation to carry a station, to 

commence carriage of the station and to continue such carriage 

for at least 12 months. If the Commission determines that the 

øcable operator¿ video service provider has fully met the requirements of this section, it shall dismiss the complaint. 

(e) INPUT SELECTOR SWITCH RULES ABOLISHED.—No øcable operator¿ video service provider shall be required—

(1) to provide or make available any input selector switch as 

defined in section 76.5(mm) of title 47, Code of Federal Regulations, or any comparable device; or 

(2) to provide information to subscribers about input selector 

switches or comparable devices. 

(f) REGULATIONS BY COMMISSION.—Within 180 days after the 

date of enactment of this section, the Commission shall, following 

a rulemaking proceeding, issue regulations implementing the requirements imposed by this section. Such implementing regulations 

shall include necessary revisions to update section 76.51 of title 47 

of the Code of Federal Regulations. 

(g) SALES PRESENTATIONS AND PROGRAM LENGTH COMMERCIALS.—

(1) CARRIAGE PENDING PROCEEDING.—Pending the outcome of 

the proceeding under paragraph (2), nothing in this Act shall 

require a øcable operator¿ video service provider to carry on 

any tier, or prohibit a øcable operator¿ video service provider 

from carrying on any tier, the signal of any commercial television station or video programming service that is predominantly utilized for the transmission of sales presentations or 

program length commercials. 

(2) PROCEEDING CONCERNING CERTAIN STATIONS.—Within 270 

days after the date of enactment of this section, the Commission, notwithstanding prior proceedings to determine whether 


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broadcast television stations that are predominantly utilized 

for the transmission of sales presentations or program length 

commercials are serving the public interest, convenience, and 

necessity, shall complete a proceeding in accordance with this 

paragraph to determine whether broadcast television stations 

that are predominantly utilized for the transmission of sales 

presentations or program length commercials are serving the 

public interest, convenience, and necessity. In conducting such 

proceeding, the Commission shall provide appropriate notice 

and opportunity for public comment. The Commission shall 

consider the viewing of such stations, the level of competing 

demands for the spectrum allocated to such stations, and the 

role of such stations in providing competition to nonbroadcast 

services offering similar programming. In the event that the 

Commission concludes that one or more of such stations are 

serving the public interest, convenience, and necessity, the 

Commission shall qualify such stations as local commercial television stations for purposes of subsection (a). In the event 

that the Commission concludes that one or more of such stations are not serving the public interest, convenience, and necessity, the Commission shall allow the licensees of such stations a reasonable period within which to provide different programming, and shall not deny such stations a renewal expectancy solely because their programming consisted predominantly of sales presentations or program length commercials. 

(h) MATERIAL DEGRADATION.—For purposes of this section and 

section 615, transmission of a digital signal over a cable system in 

a compressed bitstream shall not be considered material degradation as long as such compression does not materially affect the picture quality the consumer receives. 

ø(h)¿ (i) DEFINITIONS.—

(1) LOCAL COMMERCIAL TELEVISION STATION.—

(A) IN GENERAL.—For purposes of this section, the term 

‘‘local commercial television station’’ means any full power 

television broadcast station, other than a qualified noncommercial educational television station within the meaning of section 615(l)(1), licensed and operating on a channel regularly assigned to its community by the Commission that, with respect to a particular øcable¿ video service 

system, is within the same television market as the 

øcable¿ video service system. 

(B) EXCLUSIONS.—The term ‘‘local commercial television 

station’’ shall not include—

(i) low power television stations, television translator stations, and passive repeaters which operate 

pursuant to part 74 of title 47, Code of Federal Regulations, or any successor regulations thereto; 

(ii) a television broadcast station that would be considered a distant signal under section 111 of title 17, 

United States Code, if such station does not agree to 

indemnify the øcable operator¿ video service provider 

for any increased copyright liability resulting from carriage on the øcable¿ video service system; or 


hmoore on PROD1PC68 with HMRPT
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(iii) a television broadcast station that does not deliver to the principal headend of a øcable¿ video service system either a signal level of ¥45dBm for UHF 

signals or ¥49dBm for VHF signals at the input terminals of the signal processing equipment, if such station does not agree to be responsible for the costs of 

delivering to the øcable¿ video service system a signal 

of good quality or a baseband video signal. 

(C) MARKET DETERMINATIONS.—(i) For purposes of this 

section, a broadcasting station’s market shall be determined by the Commission by regulation or order using, 

where available, commercial publications which delineate 

television markets based on viewing patterns, except that, 

following a written request, the Commission may, with respect to a particular television broadcast station, include 

additional communities within its television market or exclude communities from such station’s television market to 

better effectuate the purposes of this section. In considering such requests, the Commission may determine that 

particular communities are part of more than one television market. 

(ii) In considering requests filed pursuant to clause (i), 

the Commission shall afford particular attention to the 

value of localism by taking into account such factors as—

(I) whether the station, or other stations located in 

the same area, have been historically carried on the 

øcable¿ video service system or systems within such 

community; 

(II) whether the television station provides coverage 

or other local service to such community; 

(III) whether any other television station that is eligible to be carried by a øcable¿ video service system in 

such community in fulfillment of the requirements of 

this section provides news coverage of issues of concern to such community or provides carriage or coverage of sporting and other events of interest to the 

community; and 

(IV) evidence of viewing patterns in øcable¿ video 

service and ønoncable¿ non-video service households 

within the areas served by the øcable¿ video service 

system or systems in such community. 

(iii) A øcable operator¿ video service provider shall not 

delete from carriage the signal of a commercial television 

station during the pendency of any proceeding pursuant to 

this subparagraph. 

(iv) Within 120 days after the date on which a request is filed under this subparagraph (or 120 days 

after the date of enactment of the Telecommunications 

Act of 1996, if later), the Commission shall grant or 

deny the request. 

(2) QUALIFIED LOW POWER STATION.—The term ‘‘qualified low 

power station’’ means any television broadcast station conforming to the rules established for Low Power Television StaVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00242 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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tions contained in part 74 of title 47, Code of Federal Regulations, only if— (A) such station broadcasts for at least the minimum 

number of hours of operation required by the Commission 

for television broadcast stations under part 73 of title 47, 

Code of Federal Regulations; 

(B) such station meets all obligations and requirements 

applicable to television broadcast stations under part 73 of 

title 47, Code of Federal Regulations, with respect to the 

broadcast of nonentertainment programming; programming and rates involving political candidates, election 

issues, controversial issues of public importance, editorials, 

and personal attacks; programming for children; and equal 

employment opportunity; and the Commission determines 

that the provision of such programming by such station 

would address local news and informational needs which 

are not being adequately served by full power television 

broadcast stations because of the geographic distance of 

such full power stations from the low power station’s community of license; 

(C) such station complies with interference regulations 

consistent with its secondary status pursuant to part 74 of 

title 47, Code of Federal Regulations; 

(D) such station is located no more than 35 miles from 

the øcable¿ video service system’s headend, and delivers to 

the principal headend of the øcable¿ video service system 

an over-the-air signal of good quality, as determined by the 

Commission; 

(E) the community of license of such station and the 

franchise area of the øcable¿ video service system are both 

located outside of the largest 160 Metropolitan Statistical 

Areas, ranked by population, as determined by the Office 

of Management and Budget on June 30, 1990, and the population of such community of license on such date did not 

exceed 35,000; and 

(F) there is no full power television broadcast station licensed to any community within the county or other political subdivision (of a State) served by the øcable¿ video 

service system. 

Nothing in this paragraph shall be construed to change the 

secondary status of any low power station as provided in part 

74 of title 47, Code of Federal Regulations, as in effect on the 

date of enactment of this section. 

SEC. 615. CARRIAGE OF NONCOMMERCIAL EDUCATIONAL TELEVISION. 

ø47 U.S.C. 535¿ 

(a) CARRIAGE OBLIGATIONS.—In addition to the carriage requirements set forth in section 614, each øcable operator¿ video service 

provider of a øcable¿ video service system shall carry the signals 

of qualified noncommercial educational television stations in accordance with the provisions of this section. 

(b) REQUIREMENTS TO CARRY QUALIFIED STATIONS.—

(1) GENERAL REQUIREMENT TO CARRY EACH QUALIFIED STATION.—Subject to paragraphs (2) and (3) and subsection (e), 


hmoore on PROD1PC68 with HMRPT
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each øcable operator¿ video service provider shall carry, on the 

øcable¿ video service system of that øcable operator,¿ video 

service provider, any qualified local noncommercial educational 

television station requesting carriage. 

(2)(A) SYSTEMS WITH 12 OR FEWER CHANNELS.—Notwithstanding paragraph (1), a øcable operator¿ video service provider of a øcable¿ video service system with 12 or fewer usable 

activated channels shall be required to carry the signal of one 

qualified local noncommercial educational television station; 

except that a øcable operator¿ video service provider of such a 

system shall comply with subsection (c) and may, in its discretion, carry the signals of other qualified noncommercial educational television stations. 

(B) In the case of a øcable¿ video service system described in 

subparagraph (A) which operates beyond the presence of any 

qualified local noncommercial educational television station—

(i) the øcable operator¿ video service provider shall import and carry on that system the signal of one qualified 

noncommercial educational television station; 

(ii) the selection for carriage of such a signal shall be at 

the election of the øcable operator;¿ video service provider; 

and 

(iii) in order to satisfy the requirements for carriage 

specified in this subsection, the øcable operator¿ video 

service provider of the system shall not be required to remove any other programming service actually provided to 

subscribers on March 29, 1990; except that such øcable operator¿ video service provider shall use the first channel 

available to satisfy the requirements of this subparagraph. 

(3) SYSTEMS WITH 13 TO 36 CHANNELS.—(A) Subject to subsection (c), a øcable operator¿ video service provider of a 

øcable¿ video service system with 13 to 36 usable activated 

channels—

(i) shall carry the signal of at least one qualified local 

noncommercial educational television station but shall not 

be required to carry the signals of more than three such 

stations, and 

(ii) may, in its discretion, carry additional such stations. 

(B) In the case of a øcable¿ video service system described in 

this paragraph which operates beyond the presence of any 

qualified local noncommercial educational television station, 

the øcable operator¿ video service provider shall import and 

carry on that system the signal of at least one qualified noncommercial educational television station to comply with subparagraph (A)(i). 

(C) The øcable operator¿ video service provider of a øcable¿ 

video service system described in this paragraph which carries 

the signal of a qualified local noncommercial educational station affiliated with a State public television network shall not 

be required to carry the signal of any additional qualified local 

noncommercial educational television stations affiliated with 

the same network if the programming of such additional stations is substantially duplicated by the programming of the 


hmoore on PROD1PC68 with HMRPT
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qualified local noncommercial educational television station receiving carriage. 

(D) A øcable operator¿ video service provider of a system described in this paragraph which increases the usable activated 

channel capacity of the system to more than 36 channels on or 

after March 29, 1990, shall, in accordance with the other provisions of this section, carry the signal of each qualified local 

noncommercial educational television station requesting carriage, subject to subsection (e). 

(c) CONTINUED CARRIAGE OF EXISTING STATIONS.—Notwithstanding any other provision of this section, all øcable operators¿ 

video service providers shall continue to provide carriage to all 

qualified local noncommercial educational television stations whose 

signals were carried on their systems as of March 29, 1990. The requirements of this subsection may be waived with respect to a particular øcable operator¿ video service provider and a particular 

such station, upon the written consent of the øcable operator¿ video 

service provider and the station. 

(d) PLACEMENT OF ADDITIONAL SIGNALS.—A øcable operator¿ 

video service provider required to add the signals of qualified local 

noncommercial educational television stations to a øcable¿ video 

service system under this section may do so, subject to approval by 

the franchising authority pursuant to section 611, by placing such 

additional stations on public, educational, or governmental channels not in use for their designated purposes. 

(e) SYSTEMS WITH MORE THAN 36 CHANNELS.—A øcable operator¿ video service provider of a øcable¿ video service system with 

a capacity of more than 36 usable activated channels which is required to carry the signals of three qualified local noncommercial 

educational television stations shall not be required to carry the 

signals of additional such stations the programming of which substantially duplicates the programming broadcast by another qualified local noncommercial educational television station requesting 

carriage. Substantial duplication shall be defined by the Commission in a manner that promotes access to distinctive noncommercial 

educational television services. 

(f) WAIVER OF NONDUPLICATION RIGHTS.—A qualified local noncommercial educational television station whose signal is carried by 

a øcable operator¿ video service provider shall not assert any network nonduplication rights it may have pursuant to section 76.92 

of title 47, Code of Federal Regulations, to require the deletion of 

programs aired on other qualified local noncommercial educational 

television stations whose signals are carried by that øcable operator.¿ video service provider. 

(g) CONDITIONS OF CARRIAGE.—

(1) CONTENT TO BE CARRIED.—A øcable operator¿ video service provider shall retransmit in its entirety the primary video, 

accompanying audio, and line 21 closed caption transmission of 

each qualified local noncommercial educational television station whose signal is carried on the øcable¿ video service system, and, to the extent technically feasible, program-related 

material carried in the vertical blanking interval, or on subcarriers, that may be necessary for receipt of programming by 

handicapped persons or for educational or language purposes. 


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Retransmission of other material in the vertical blanking interval or on subcarriers shall be within the discretion of the 

øcable operator.¿ video service provider. 

(2) BANDWIDTH AND TECHNICAL QUALITY.—A øcable operator¿ 

video service provider shall provide each qualified local noncommercial educational television station whose signal is carried in accordance with this section with bandwidth and technical capacity equivalent to that provided to commercial television broadcast stations carried on the øcable¿ video service 

system and shall carry the signal of each qualified local noncommercial educational television station without material 

degradation. 

(3) CHANGES IN CARRIAGE.—The signal of a qualified local 

noncommercial educational television station shall not be repositioned by a øcable operator¿ video service provider unless the 

øcable operator,¿ video service provider, at least 30 days in advance of such repositioning, has provided written notice to the 

station and all subscribers of the øcable¿ video service system. 

For purposes of this paragraph, repositioning includes (A) assignment of a qualified local noncommercial educational television station to a øcable¿ video service system channel number different from the øcable¿ video service system channel 

number to which the station was assigned as of March 29, 

1990, and (B) deletion of the station from the øcable¿ video 

service system. The notification provisions of this paragraph 

shall not be used to undermine or evade the channel positioning or carriage requirements imposed upon øcable operators¿ video service providers under this section. 

(4) GOOD QUALITY SIGNAL REQUIRED.—Notwithstanding the 

other provisions of this section, a øcable operator¿ video service 

provider shall not be required to carry the signal of any qualified local noncommercial educational television station which 

does not deliver to the øcable¿ video service system’s principal 

headend a signal of good quality or a baseband video signal, 

as may be defined by the Commission. 

(5) CHANNEL POSITIONING.—Each signal carried in fulfillment of the carriage obligations of a øcable operator¿ video 

service provider under this section shall be carried on the 

øcable¿ video service system channel number on which the 

qualified local noncommercial educational television station is 

broadcast over the air, or on the channel on which it was carried on July 19, 1985, at the election of the station, or on such 

other channel number as is mutually agreed upon by the station and the øcable operator.¿ video service provider. Any dispute regarding the positioning of a qualified local noncommercial educational television station shall be resolved by the 

Commission. 

(h) AVAILABILITY OF SIGNALS.—Signals carried in fulfillment of 

the carriage obligations of a øcable operator¿ video service provider 

under this section shall be available to every subscriber as part of 

the øcable¿ video service system’s lowest priced service tier that includes the retransmission of local commercial television broadcast 

signals. 

(i) PAYMENT FOR CARRIAGE PROHIBITED.—


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(1) IN GENERAL.—A øcable operator¿ video service provider 

shall not accept monetary payment or other valuable consideration in exchange for carriage of the signal of any qualified 

local noncommercial educational television station carried in 

fulfillment of the requirements of this section, except that such 

a station may be required to bear the cost associated with delivering a good quality signal or a baseband video signal to the 

principal headend of the øcable¿ video service system. 

(2) DISTANT SIGNAL EXCEPTION.—Notwithstanding the provisions of this section, a øcable operator¿ video service provider 

shall not be required to add the signal of a qualified local noncommercial educational television station not already carried 

under the provision of subsection (c), where such signal would 

be considered a distant signal for copyright purposes unless 

such station indemnifies the øcable operator¿ video service provider for any increased copyright costs resulting from carriage 

of such signal. 

(j) REMEDIES.— (1) COMPLAINT.—Whenever a qualified local noncommercial 

educational television station believes that a øcable operator¿ 

video service provider of a øcable¿ video service system has 

failed to comply with the signal carriage requirements of this 

section, the station may file a complaint with the Commission. 

Such complaint shall allege the manner in which such øcable 

operator¿ video service provider has failed to comply with such 

requirements and state the basis for such allegations. 

(2) OPPORTUNITY TO RESPOND.—The Commission shall afford 

such øcable operator¿ video service provider an opportunity to 

present data, views, and arguments to establish that the 

øcable operator¿ video service provider has complied with the 

signal carriage requirements of this section. 

(3) REMEDIAL ACTIONS; DISMISSAL.—Within 120 days after 

the date a complaint is filed under this subsection, the Commission shall determine whether the øcable operator¿ video 

service provider has complied with the requirements of this 

section. If the Commission determines that the øcable operator¿ video service provider has failed to comply with such requirements, the Commission shall state with particularity the 

basis for such findings and order the øcable operator¿ video 

service provider to take such remedial action as is necessary to 

meet such requirements. If the Commission determines that 

the øcable operator¿ video service provider has fully complied 

with such requirements, the Commission shall dismiss the 

complaint. 

(k) IDENTIFICATION OF SIGNALS.—A øcable operator¿ video service 

provider shall identify, upon request by any person, those signals 

carried in fulfillment of the requirements of this section. 

(l) DEFINITIONS.—For purposes of this section—

(1) QUALIFIED NONCOMMERCIAL EDUCATIONAL TELEVISION

STATION.—The term ‘‘qualified noncommercial educational television station’’ means any television broadcast station which— (A)(i) under the rules and regulations of the Commission 

in effect on March 29, 1990, is licensed by the Commission 

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hmoore on PROD1PC68 with HMRPT
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tion and which is owned and operated by a public agency, 

nonprofit foundation, corporation, or association; and 

(ii) has as its licensee an entity which is eligible to receive a community service grant, or any successor grant 

thereto, from the Corporation for Public Broadcasting, or 

any successor organization thereto, on the basis of the formula set forth in section 396(k)(6)(B); or 

(B) is owned and operated by a municipality and transmits predominantly noncommercial programs for educational purposes. 

Such term includes (I) the translator of any noncommercial 

educational television station with five watts or higher power 

serving the franchise area, (II) a full-service station or translator if such station or translator is licensed to a channel reserved for noncommercial educational use pursuant to section 

73.606 of title 47, Code of Federal Regulations, or any successor regulations thereto, and (III) such stations and translators operating on channels not so reserved as the Commission determines are qualified as noncommercial educational 

stations. 

(2) QUALIFIED LOCAL NONCOMMERCIAL EDUCATIONAL TELEVISION STATION.—The term ‘‘qualified local noncommercial educational television station’’ means a qualified noncommercial 

educational television station—

(A) which is licensed to a principal community whose 

reference point, as defined in section 76.53 of title 47, Code 

of Federal Regulations (as in effect on March 29, 1990), or 

any successor regulations thereto, is within 50 miles of the 

principal headend of the øcable¿ video service system; or 

(B) whose Grade B service contour, as defined in section 

73.683(a) of such title (as in effect on March 29, 1990), or 

any successor regulations thereto, encompasses the principal headend of the øcable¿ video service system. 

SEC. 616. REGULATION OF CARRIAGE AGREEMENTS. 

ø47 U.S.C. 536¿ 

(a) REGULATIONS.—Within one year after the date of enactment 

of this section, the Commission shall establish regulations governing program carriage agreements and related practices between 

øcable operators¿ video service providers or other multichannel 

video programming distributors and video programming vendors. 

Such regulations shall—

(1) include provisions designed to prevent a øcable operator¿ 

video service provider or other multichannel video programming distributor from requiring a financial interest in a program service as a condition for carriage on one or more of such 

øoperator’s¿ provider’s systems; 

(2) include provisions designed to prohibit a øcable operator¿ 

video service provider or other multichannel video programming distributor from coercing a video programming vendor to 

provide, and from retaliating against such a vendor for failing 

to provide, exclusive rights against other multichannel video 

programming distributors as a condition of carriage on a system; 


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(3) contain provisions designed to prevent a multichannel 

video programming distributor from engaging in conduct the 

effect of which is to unreasonably restrain the ability of an unaffiliated video programming vendor to compete fairly by discriminating in video programming distribution on the basis of 

affiliation or nonaffiliation of vendors in the selection, terms, 

or conditions for carriage of video programming provided by 

such vendors; 

(4) provide for expedited review of any complaints made by 

a video programming vendor pursuant to this section; 

(5) provide for appropriate penalties and remedies for violations of this subsection, including carriage; and 

(6) provide penalties to be assessed against any person filing 

a frivolous complaint pursuant to this section. 

(b) DEFINITION.—As used in this section, the term ‘‘video programming vendor’’ means a person engaged in the production, creation, or wholesale distribution of video programming for sale. 

øSEC. 617. SALES OF CABLE SYSTEMS. 

ø47 U.S.C. 537¿ 

øA franchising authority shall, if the franchise requires franchising authority approval of a sale or transfer, have 120 days to 

act upon any request for approval of such sale or transfer that contains or is accompanied by such information as is required in accordance with Commission regulations and by the franchising authority. If the franchising authority fails to render a final decision 

on the request within 120 days, such request shall be deemed 

granted unless the requesting party and the franchising authority 

agree to an extension of time.¿ 

øPART III—FRANCHISING AND REGULATION¿ 

PART III—FRANCHISING 

SEC. 621. GENERAL FRANCHISE REQUIREMENTS. 

ø47 U.S.C. 541¿ 

ø(a)(1) A franchising authority may award, in accordance with 

the provisions of this title, 1 or more franchises within its jurisdiction; except that a franchising authority may not grant an exclusive franchise and may not unreasonably refuse to award an additional competitive franchise. Any applicant whose application for a 

second franchise has been denied by a final decision of the franchising authority may appeal such final decision pursuant to the 

provisions of section 635 for failure to comply with this subsection. 

ø(2) Any franchise shall be construed to authorize the construction of a cable system over public rights-of-way, and through easements, which is within the area to be served by the cable system 

and which have been dedicated for compatible uses, except that in 

using such easements the cable operator shall ensure—

ø(A) that the safety, functioning, and appearance of the property and the convenience and the safety of other persons not 

be adversely affected by the installation or construction of facilities necessary for a cable system; 


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ø(B) that the cost of the installation, construction, operation, 

or removal of such facilities be borne by the cable operator or 

subscriber, or a combination of both; and 

ø(C) that the owner of the property be justly compensated by 

the cable operator for any damages caused by the installation, 

construction, operation, or removal of such facilities by the 

cable operator. 

ø(3) In awarding a franchise or franchises, a franchising authority shall assure that access to cable service is not denied to any 

group of potential residential cable subscribers because of the income of the residents of the local area in which such group resides. 

ø(4) In awarding a franchise, the franchising authority— ø(A) shall allow the applicant’s cable system a reasonable period of time to become capable of providing cable service to all 

households in the franchise area; 

ø(B) may require adequate assurance that the cable operator 

will provide adequate public, educational, and governmental 

access channel capacity, facilities, or financial support; and 

ø(C) may require adequate assurance that the cable operator 

has the financial, technical, or legal qualifications to provide 

cable service.¿ 

(a) IN GENERAL.— (1) AWARD OF FRANCHISE.—A franchising authority may 

not— (A) grant an exclusive franchise; or 

(B) grant a franchise for a term shorter than 5 years or 

longer than 15 years as provided in section 603. 

(2) PRESERVATION OF LOCAL GOVERNMENT AUTHORITY TO

MANAGE PUBLIC RIGHTS-OF-WAY; EASEMENTS.—

(A) IN GENERAL.—Except as provided in this title, no 

State or local law may prohibit, or have the effect of prohibiting, a video service provider from offering video service. 

(B) HOLD HARMLESS.—A State or local government shall 

apply its laws or regulations in a manner that is reasonable, competitively neutral, nondiscriminatory, and consistent with State police powers, including permitting, payments for bonds, security funds, letters of credit, insurance, 

indemnification, penalties, or liquidated damages to ensure 

compliance with such laws and regulations. Any permitting 

fees imposed by a State or local government shall be for the 

purpose of compensating that government for the costs incurred in managing public rights-of-way. Any law or regulation that meets the requirements of this subparagraph 

shall not be held to violate subparagraph (A). 

(C) PROPERTY OWNERS.—Nothing in this title precludes a 

State or local government from requiring that a property 

owner be justly compensated by a video service provider for 

damage caused by the installation, construction, operation, 

or removal of facilities by the video service provider. 

(D) DISPUTE RESOLUTION.—If a dispute arises concerning 

the application of subparagraph (A), (B), or (C), the sole recourse of any party to the dispute shall be to file an action 

in a court of competent jurisdiction. 


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(3) USE OF PUBLIC RIGHTS-OF-WAY.—Any franchise shall be 

construed to authorize the construction of a video service system 

over public rights-of-way, and through easements, which is 

within the area to be served by the video service system and 

which have been dedicated for compatible uses, except that in 

using such easements the video service provider shall ensure—

(A) that the safety and functioning of the property and 

the safety of other persons not be adversely affected by the 

installation or construction of facilities necessary for a 

video service system; and 

(B) that the cost of the installation, construction, operation, or removal of such facilities be borne by the video 

service provider or subscriber, or a combination of both. 

(b)ø(1) Except to the extent provided in paragraph (2) and subsection (f), a cable operator may not provide cable service without 

a franchise.¿ (1) Except to the extent provided in subsection (f), a 

video service provider may not provide video service without a franchise. 

(2) Paragraph (1) shall not require any person lawfully providing 

øcable service¿ video service without a franchise on July 1, 1984, 

to obtain a franchise unless the franchising authority so requires. 

(3)(A) If a øcable operator¿ video service provider or affiliate 

thereof is engaged in the provision of telecommunications services—

(i) such øcable operator¿ video service provider or affiliate 

shall not be required to obtain a franchise under this title for 

the provision of telecommunications services; and 

(ii) the provisions of this title shall not apply to such øcable 

operator¿ video service provider or affiliate for the provision of 

telecommunications services. 

(B) A franchising authority may not impose any requirement 

under this title that has the purpose or effect of prohibiting, limiting, restricting, or conditioning the provision of a telecommunications service by a øcable operator¿ video service provider or an 

affiliate thereof. 

(C) A franchising authority may not order a øcable operator¿ 

video service provider or affiliate thereof—

(i) to discontinue the provision of a telecommunications service, or 

(ii) to discontinue the operation of a øcable¿ video service 

system, to the extent such øcable¿ video service system is used 

for the provision of a telecommunications service, by reason of 

the failure of such øcable operator¿ video service provider or affiliate thereof to obtain a franchise or franchise renewal under 

this title with respect to the provision of such telecommunications service. 

(D) Except as otherwise permitted by sections 611 and 612, a 

franchising authority may not require a øcable operator¿ video 

service provider to provide any telecommunications service or facilities, other than institutional networks, as a condition of the initial 

grant of a franchise, a franchise renewal, or a transfer of a franchise. 


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(c) Any øcable¿ video service system shall not be subject to regulation as a common carrier or utility by reason of providing any 

øcable service.¿ video service. 

(d)(1) A State or the Commission may require the filing of informational tariffs for any intrastate communications service provided 

by a øcable¿ video service system, other than øcable service,¿ video 

service, that would be subject to regulation by the Commission or 

any State if offered by a common carrier subject in whole or in 

part, to title II of this Act. Such informational tariffs shall specify 

the rates, terms, and conditions for the provision of such service, 

including whether it is made available to all subscribers generally, 

and shall take effect on the date specified therein. 

(2) Nothing in this title shall be construed to affect the authority 

of any State to regulate any øcable operator¿ video service provider 

to the extent that such øoperator¿ provider provides any communication service other than øcable service,¿ video service, whether 

offered on a common carrier or private contract basis. 

(3) For purposes of this subsection, the term ‘‘State’’ has the 

meaning given it in section 3. 

(e) Nothing in this title shall be construed to affect the authority 

of any State to license or otherwise regulate any facility or combination of facilities which serves only subscribers in one or more 

multiple unit dwellings under common ownership, control, or management and which does not use any public right-of-way. 

ø(f) No provision of this Act shall be construed to— ø(1) prohibit a local or municipal authority that is also, or 

is affiliated with, a franchising authority from operating as a 

multichannel video programming distributor in the franchise 

area, notwithstanding the granting of one or more franchises 

by such franchising authority; or 

ø(2) require such local or municipal authority to secure a 

franchise to operate as a multichannel video programming distributor.¿ 

(f) MUNICIPAL OPERATORS.—No provision of this title shall be 

construed to prohibit a local or municipal authority that is also, or 

is affiliated with, a franchising authority from operating as a multichannel video programming distributor in the franchise area, notwithstanding the granting of one or more franchises by the franchising authority. 

(g) CHILD PORNOGRAPHY.— (1) IN GENERAL.—A video service provider authorized to provide video service in a local franchise area shall comply with 

the regulations on child pornography promulgated pursuant to 

paragraph (2). 

(2) REGULATIONS.—Not later than 180 days after the date of 

enactment of the Advanced Telecommunications and Opportunities Reform Act, the Commission shall promulgate regulations 

to require a video service to prevent the offering of child pornography (as such term is defined in section 254(h)(7)(F)). 

SEC. 622. FRANCHISE FEES. 

ø47 U.S.C. 542¿ 

ø(a) Subject to the limitation of subsection (b), any cable operator 

may be required under the terms of any franchise to pay a franchise fee. 


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ø(b) For any twelve-month period, the franchise fees paid by a 

cable operator with respect to any cable system shall not exceed 5 

percent of such cable operator’s gross revenues derived in such period from the operation of the cable system to provide cable services. For purposes of this section, the 12-month period shall be the 

12-month period applicable under the franchise for accounting purposes. Nothing in this subsection shall prohibit a franchising authority and a cable operator from agreeing that franchise fees 

which lawfully could be collected for any such 12-month period 

shall be paid on a prepaid or deferred basis; except that the sum 

of the fees paid during the term of the franchise may not exceed 

the amount, including the time value of money, which would have 

lawfully been collected if such fees had been paid per annum.¿ 

(a) IN GENERAL.—A franchising authority may impose and collect 

a franchise fee from a video service provider that provides video 

services within the local franchise area of that authority. A franchising authority may not discriminate among video service providers in imposing or collecting any fee assessed under this section. 

(b) AMOUNT.—

(1) IN GENERAL.—The franchise fee imposed by a franchising 

authority under subsection (a) for any 12-month period may not 

exceed 5 percent of the video service provider’s gross revenue derived in such period. For purposes of this section, the 12-month 

period shall be the 12-month period applicable under the franchise for accounting purposes. 

(2) PREPAID OR DEFERRED PAYMENT ARRANGEMENTS.—Nothing in this subsection prohibits a franchising authority and a 

video service provider from agreeing that franchise fees which 

lawfully could be collected for any such 12-month period shall 

be paid on a prepaid or deferred basis, except that the sum of 

the fees paid during the term of the franchise may not exceed 

the amount, including the time value of money, which would 

have lawfully been collected if such fees had been paid per 

annum. 

(3) FRANCHISING AUTHORITY AND VIDEO SERVICE PROVIDER

AGREEMENTS.—Nothing in this section precludes a State or 

local government and a video service provider from entering 

into a voluntary commercial agreement, whereby in consideration for a mutually agreed upon reduction in the franchise fee 

under paragraph (1), the video service provider makes available 

to the local unit of government services, equipment, capabilities, 

or other valuable consideration. 

(4) PEG AND INSTITUTIONAL NETWORK FINANCIAL SUPPORT.—

(A) IN GENERAL.—Except as provided in subparagraph 

(D), a video service provider may be required to pay a fee 

equal to—

‘(i) not more than 1 percent of the video service provider’s gross revenue in the franchise area to the franchising authority for the support of public, educational, 

and governmental access facilities and institutional 

networks; or 

(ii) the value, on a per subscriber basis, of all monetary grants or in-kind services or facilities for public, 

educational, or governmental access facilities provided 


hmoore on PROD1PC68 with HMRPT
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by the cable operator in the franchise area with the 

most cable service subscribers in the calendar year preceding the date of enactment of the Video Competition 

and Savings for Consumers Act of 2006, pursuant to 

that cable operator’s existing franchise in effect on the 

date of enactment of that Act. 

(B) CALCULATION DATA.—A franchising authority may require a cable operator to provide information sufficient to 

calculate the per-subscriber equivalent fee allowed by subparagraph (A)(ii). The information shall be treated as confidential and proprietary business information. The payments made by a video service provider pursuant to subparagraph (A) shall be assessed and collected in a manner 

consistent with this section. 

(C) EXISTING INSTITUTIONAL NETWORKS.—

(i) CONTINUED SERVICE.—Except as provided in subparagraph (D), a franchising authority may require a 

cable operator or video service provider with a franchise in effect on the date of enactment of the Video 

Competition and Savings for Consumers Act of 2006 to 

continue to provide any institutional network it was required to provide on the date of enactment of that Act 

notwithstanding the expiration or termination of that 

franchise pursuant to section 381(b) of the Video Competition and Savings for Consumers Act of 2006. 

(ii) NEW NETWORK NOT REQUIRED.—A franchising 

authority may not require a video service provider to 

construct a new institutional network. 

(D) SPECIAL RULE.—In Hawaii—

(i) subparagraph (A)(ii) shall be applied by inserting 

‘‘and institutional networks’’ after ‘‘governmental access 

facilities’’; and 

(ii) subparagraph (C)(i) shall be applied by inserting 

‘‘or had committed to provide’’ after ‘‘required to provide’’. 

(c) Each øcable operator¿ video service provider may identify, 

consistent with the regulations prescribed by the Commission pursuant to section 623, as a separate line item on each regular bill 

of each subscriber, each of the following: 

(1) The amount of the total bill assessed as a franchise fee 

and the identity of the franchising authority to which the fee 

is paid. 

(2) The amount of the total bill assessed to satisfy any requirements imposed on the øcable operator¿ video service provider by the franchise agreement to support public, educational, or governmental channels or the use of such channels. 

(3) The amount of any other fee, tax, assessment, or charge 

of any kind imposed by any governmental authority on the 

transaction between the øoperator¿ provider and the subscriber. 

ø(d) In any court action under subsection (c), the franchising authority shall demonstrate that the rate structure reflects all costs 

of the franchise fees. 


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ø(e) Any cable operator shall pass through to subscribers the 

amount of any decrease in a franchise fee. 

ø(f) A cable operator may designate that portion of a subscriber’s 

bill attributable to the franchise fee as a separate item on the bill. 

ø(g) For the purposes of this section— ø(1) the term ‘‘franchise fee’’ includes any tax, fee, or assessment of any kind imposed by a franchising authority or other 

governmental entity on a cable operator or cable subscriber, or 

both, solely because of their status as such; 

ø(2) the term ‘‘franchise fee’’ does not include— ø(A) any tax, fee, or assessment of general applicability 

(including any such tax, fee, or assessment imposed on 

both utilities and cable operators or their services but not 

including a tax, fee, or assessment which is unduly discriminatory against cable operators or cable subscribers); 

ø(B) in the case of any franchise in effect on the date of 

the enactment of this title, payments which are required 

by the franchise to be made by the cable operator during 

the term of such franchise for, or in support of the use of, 

public, educational, or governmental access facilities; 

ø(C) in the case of any franchise granted after such date 

of enactment, capital costs which are required by the franchise to be incurred by the cable operator for public, educational, or governmental access facilities; 

ø(D) requirements or charges incidental to the awarding 

or enforcing of the franchise, including payments for 

bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages; or 

ø(E) any fee imposed under title 17, United States Code. 

ø(h)(1) Nothing in this Act shall be construed to limit any authority of a franchising authority to impose a tax, fee, or other assessment of any kind on any person (other than a cable operator) 

with respect to cable service or other communications service provided by such person over a cable system for which charges are assessed to subscribers but not received by the cable operator. 

ø(2) For any 12-month period, the fees paid by such person with 

respect to any such cable service or other communications service 

shall not exceed 5 percent of such person’s gross revenues derived 

in such period from the provision of such service over the cable system.¿ 

(d) OTHER TAXES, FEES, AND ASSESSMENTS NOT AFFECTED.—Except as otherwise provided in this section, nothing in this section 

shall be construed to modify, impair, supersede, or authorize the 

modification, impairment, or supersession of, any State or local law 

pertaining to taxation. 

(e) ANNUAL REVIEW.—

(1) FRANCHISING AUTHORITY AUDIT PROCEDURE.—A franchising authority may, upon reasonable written request, but no 

more than once in any 12-month period, review the business 

records of a video service provider to the extent reasonably necessary to ensure payment of the fees required by this section. 

The review may include the methodology used by the video service provider to assign portions of the revenue from video service 

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ices, capabilities, or applications. The review shall be conducted 

in accordance with procedures established by the Commission. 

(2) AVAILABILITY OF BOOKS AND RECORDS.—Upon request 

under paragraph (1), a video service provider shall make available its books and records for periodic audit by a franchising 

authority. The franchising authority shall treat information obtained in the course of such an audit as confidential and proprietary and protect sensitive information from public disclosure. 

(3) COST RECOVERY.—To the extent that the review under 

paragraph (1) identifies an underpayment of more than 5 percent of any fee required by this section for the period of review, 

the video service provider shall reimburse the franchising authority the reasonable costs of any such review conducted by an 

independent third party with respect to such fee. The costs of 

any contingency fee arrangement between the franchising authority and the independent reviewer shall not be subject to reimbursement. 

(4) LIMITATION.—Any fee that is not reviewed by a franchising authority within 3 years after it is paid or remitted 

shall not be subject to later review by the franchising authority 

under this subsection and shall be deemed accepted in full payment by the franchising authority. 

(f) GAAP STANDARDS.—For purposes of this section, all financial 

determinations and computations shall be made in accordance with 

generally accepted accounting principles except as otherwise provided. 

(g) DEFINITIONS.—In this section: 

(1) FRANCHISE FEE.—The term ‘‘franchise fee’’—

(A) includes any tax, fee, or assessment of any kind imposed by a franchising authority or a State or local governmental entity on a video service provider or subscriber, or 

both, solely because of their status as such; but 

(B) does not include—

(i) any tax, fee, or assessment of general applicability 

(including any such tax, fee, or assessment imposed on 

both utilities and video service providers or their services but not including a tax, fee, or assessment which 

is unduly discriminatory against video service providers or subscribers); 

(ii) any fee that is required by the franchise under 

subsection (b)(4); 

(iii) requirements or charges incidental to the use of 

public rights-of-way, including payments for bonds, security funds, letters of credit, insurance, indemnification, penalties, or liquidated damages; 

(iv) costs of fines, penalties, or recoupment; or 

(v) any fee imposed under title 17, United States 

Code. 

(2) GROSS REVENUE.—

(A) IN GENERAL.—The term ‘‘gross revenue’’ means all 

consideration of any kind or nature including cash, credits, 

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ceived by a video service provider from the provision of 

video service within a franchise area including— (i) all charges and fees paid by subscribers for the 

provision of video service, including fees attributable to 

video service when that service is sold individually or 

as part of a package or bundle, or is functionally integrated with services other than video service; 

(ii) revenue received by a video service provider as 

compensation for carriage of video programming on the 

provider’s system; 

(iii) compensation received by a video service provider as compensation for promotion or exhibition of 

any product or service on the provider’s video service, 

such as a home shopping or similar channel, subject to 

subparagraph (D)(vi); and 

(iv) a pro rata portion of all revenue derived by a 

video service provider or an affiliate thereof pursuant 

to a compensation arrangement for advertising derived 

from the operation of the provider’s video service or the 

video service within a franchise area subject to subparagraph (D)(ii). 

(B) AFFILIATES.—The gross revenue of a video service 

provider includes gross revenue of an affiliate to the extent 

the exclusion of the affiliate’s gross revenue would have the 

effect of permitting the video service provider to evade the 

payment of franchise fees which would otherwise be paid by 

that video service provider for video services provided within the franchise area of the franchising authority imposing 

the fee. 

(C) REVENUE FROM BUNDLED OR FUNCTIONALLY INTE- GRATED SERVICE.—In the case of a video service that is 

packaged, bundled, or functionally integrated with other 

services, capabilities, or applications, gross revenue shall 

include only the revenue attributable to the video service, 

which shall be reflected on the books and records of the 

video service provider kept in the regular course of business. 

(D) EXCLUSIONS.—Gross revenue of a video service provider (or an affiliate to the extent otherwise included in the 

gross revenue of the video service provider under subparagraph (B)) does not include— (i) any revenue not actually received, even if billed, 

such as bad debts, net of any recoveries of bad debts; 

(ii) refunds, rebates, credits, or discounts to subscribers or a municipality to the extent not already excluded under clause (i); 

(iii) subject to subparagraph (C), any revenues received by a video service provider or its affiliates from 

the provision of services or capabilities other than video 

service, including—

(I) voice, Internet access, or other broadband-enabled applications that are not video service; and 

(II) services, capabilities, and applications that 

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dle of services or capabilities, or that are functionally integrated with video service; 

(iv) any revenues received by a video service provider 

or its affiliates for the provision of directory or Internet 

advertising, including yellow pages, white pages, banner advertisement, and electronic publishing; 

(v) any costs attributable to the provision of video 

services to subscribers at no charge, including the provision of such services to public institutions without 

charge; 

(vi) any revenue paid by subscribers to a home shopping programmer directly from the sale of merchandise 

through any home shopping channel offered as part of 

the video service provider’s video services, but not excluding any commissions that are paid to the video 

service provider as compensation for promotion or exhibition of any product or service on the provider’s video 

service, such as a home shopping or similar channel; 

(vii) any revenue forgone from the provision of video 

service at no charge to any person other than forgone 

revenue exchanged for trades, barters, services, or other 

items of value; 

(viii) any tax, fee, or assessment of general applicability imposed on a subscriber or transaction by Federal, State, or local government that is required to be 

collected by the video service provider and remitted to 

the taxing authority, including sales taxes, use taxes, 

and utility user taxes; 

(ix) any revenue from the sale of capital assets or 

surplus equipment; 

(x) the reimbursement by programmers for marketing 

costs actually incurred by a video service provider for 

the introduction of new programming; or 

(xi) any revenue from the sale of video services for resale to the extent that the purchaser certifies in writing 

that it will— (I) resell the service; and 

(II) pay any applicable franchise fee with respect 

thereto. 

ø(i)¿ (h) Any Federal agency may not regulate the amount of the 

franchise fees paid by a øcable operator,¿ video service provider, or 

regulate the use of funds derived from such fees, except as provided 

in this section. 

SEC. 623. REGULATION OF RATES. 

ø47 U.S.C. 543¿ 

(a) COMPETITION PREFERENCE; LOCAL AND FEDERAL REGULA- TION.—

(1) IN GENERAL.—No Federal agency or State may regulate 

the rates for the provision of øcable service¿ video service except to the extent provided under this section and section 612. 

Any franchising authority may regulate the rates for the provision of øcable service,¿ video service, or any other communications service provided over a øcable¿ video service system to 

øcable¿ video service subscribers, but only to the extent proVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00258 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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vided under this section. No Federal agency, State, or franchising authority may regulate the rates for øcable service¿ 

video service of a øcable¿ video service system that is owned or 

operated by a local government or franchising authority within 

whose jurisdiction that øcable¿ video service system is located 

and that is the only øcable¿ video service system located within 

such jurisdiction. 

(2) PREFERENCE FOR COMPETITION.—If the Commission finds 

that a øcable¿ video service system is subject to effective competition, the rates for the provision of øcable service¿ video 

service by such system shall not be subject to regulation by the 

Commission or by a State or franchising authority under this 

section. If the Commission finds that a øcable¿ video service 

system is not subject to effective competition—

(A) the rates for the provision of basic øcable service¿ 

video service shall be subject to regulation by a franchising 

authority, or by the Commission if the Commission exercises jurisdiction pursuant to paragraph (6), in accordance 

with the regulations prescribed by the Commission under 

subsection (b); and 

(B) the rates for øcable¿ video service programming services shall be subject to regulation by the Commission 

under subsection (c). 

(3) QUALIFICATION OF FRANCHISING AUTHORITY.—A franchising authority that seeks to exercise the regulatory jurisdiction permitted under paragraph (2)(A) shall file with the Commission a written certification that—

(A) the franchising authority will adopt and administer 

regulations with respect to the rates subject to regulation 

under this section that are consistent with the regulations 

prescribed by the Commission under subsection (b); 

(B) the franchising authority has the legal authority to 

adopt, and the personnel to administer, such regulations; 

and 

(C) procedural laws and regulations applicable to rate 

regulation proceedings by such authority provide a reasonable opportunity for consideration of the views of 

interested parties. 

(4) APPROVAL BY COMMISSION.—A certification filed by a 

franchising authority under paragraph (3) shall be effective 30 

days after the date on which it is filed unless the Commission 

finds, after notice to the authority and a reasonable opportunity for the authority to comment, that—

(A) the franchising authority has adopted or is administering regulations with respect to the rates subject to 

regulation under this section that are not consistent with 

the regulations prescribed by the Commission under subsection (b); 

(B) the franchising authority does not have the legal authority to adopt, or the personnel to administer, such regulations; or 

(C) procedural laws and regulations applicable to rate 

regulation proceedings by such authority do not provide a 


hmoore on PROD1PC68 with HMRPT
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reasonable opportunity for consideration of the views of interested parties. 

If the Commission disapproves a franchising authority’s certification, the Commission shall notify the franchising authority of 

any revisions or modifications necessary to obtain approval. 

(5) REVOCATION OF JURISDICTION.—Upon petition by a øcable 

operator¿ video service provider or other interested party, the 

Commission shall review the regulation of øcable¿ video service 

system rates by a franchising authority under this subsection. 

A copy of the petition shall be provided to the franchising authority by the person filing the petition. If the Commission 

finds that the franchising authority has acted inconsistently 

with the requirements of this subsection, the Commission shall 

grant appropriate relief. If the Commission, after the franchising authority has had a reasonable opportunity to comment, determines that the State and local laws and regulations 

are not in conformance with the regulations prescribed by the 

Commission under subsection (b), the Commission shall revoke 

the jurisdiction of such authority. 

(6) EXERCISE OF JURISDICTION BY COMMISSION.—If the Commission disapproves a franchising authority’s certification 

under paragraph (4), or revokes such authority’s jurisdiction 

under paragraph (5), the Commission shall exercise the franchising authority’s regulatory jurisdiction under paragraph 

(2)(A) until the franchising authority has qualified to exercise 

that jurisdiction by filing a new certification that meets the requirements of paragraph (3). Such new certification shall be effective upon approval by the Commission. The Commission 

shall act to approve or disapprove any such new certification 

within 90 days after the date it is filed. 

(7) AGGREGATION OF EQUIPMENT COSTS.— (A) IN GENERAL.—The Commission shall allow øcable operators,¿ video service providers, pursuant to any rules 

promulgated under subsection (b)(3), to aggregate, on a 

franchise, system, regional, or company level, their equipment costs into broad categories, such as converter boxes, 

regardless of the varying levels of functionality of the 

equipment within each such broad category. Such aggregation shall not be permitted with respect to equipment used 

by subscribers who receive only a rate regulated basic 

service tier. 

(B) REVISION TO COMMISSION RULES; FORMS.—Within 120 

days of the date of enactment of the Telecommunications 

Act of 1996, the Commission shall issue revisions to the 

appropriate rules and forms necessary to implement subparagraph (A). 

(b) ESTABLISHMENT OF BASIC SERVICE TIER RATE REGULA- TIONS.—

(1) COMMISSION OBLIGATION TO SUBSCRIBERS.—The Commission shall, by regulation, ensure that the rates for the basic 

service tier are reasonable. Such regulations shall be designed 

to achieve the goal of protecting subscribers of any øcable¿ 

video service system that is not subject to effective competition 

from rates for the basic service tier that exceed the rates that 


hmoore on PROD1PC68 with HMRPT
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would be charged for the basic service tier if such øcable¿ video 

service system were subject to effective competition. 

(2) COMMISSION REGULATIONS.—Within 180 days after the 

date of enactment of the Cable Television Consumer Protection 

and Competition Act of 1992, the Commission shall prescribe, 

and periodically thereafter revise, regulations to carry out its 

obligations under paragraph (1). In prescribing such regulations, the Commission—

(A) shall seek to reduce the administrative burdens on 

subscribers, øcable operators,¿ video service providers, 

franchising authorities, and the Commission; 

(B) may adopt formulas or other mechanisms and procedures in complying with the requirements of subparagraph 

(A); and 

(C) shall take into account the following factors: 

(i) the rates for øcable¿ video service systems, if any, 

that are subject to effective competition; 

(ii) the direct costs (if any) of obtaining, transmitting, and otherwise providing signals carried on the 

basic service tier, including signals and services carried on the basic service tier pursuant to paragraph 

(7)(B), and changes in such costs; 

(iii) only such portion of the joint and common costs 

(if any) of obtaining, transmitting, and otherwise providing such signals as is determined, in accordance 

with regulations prescribed by the Commission, to be 

reasonably and properly allocable to the basic service 

tier, and changes in such costs; 

(iv) the revenues (if any) received by a øcable operator¿ video service provider from advertising from programming that is carried as part of the basic service 

tier or from other consideration obtained in connection 

with the basic service tier; 

(v) the reasonably and properly allocable portion of 

any amount assessed as a franchise fee, tax, or charge 

of any kind imposed by any State or local authority on 

the transactions between øcable operators¿ video service providers and øcable¿ video service subscribers or 

any other fee, tax, or assessment of general applicability imposed by a governmental entity applied 

against øcable operators¿ video service providers or 

øcable¿ video service subscribers; 

(vi) any amount required, in accordance with paragraph (4), to satisfy franchise requirements to support 

public, educational, or governmental channels or the 

use of such channels or any other services required 

under the franchise; and 

(vii) a reasonable profit, as defined by the Commission consistent with the Commission’s obligations to 

subscribers under paragraph (1). 

(3) EQUIPMENT.—The regulations prescribed by the Commission under this subsection shall include standards to establish, 

on the basis of actual cost, the price or rate for—


hmoore on PROD1PC68 with HMRPT
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(A) installation and lease of the equipment used by subscribers to receive the basic service tier, including a converter box and a remote control unit and, if requested by 

the subscriber, such addressable converter box or other 

equipment as is required to access programming described 

in paragraph (8); and 

(B) installation and monthly use of connections for additional television receivers. 

(4) COSTS OF FRANCHISE REQUIREMENTS.—The regulations 

prescribed by the Commission under this subsection shall include standards to identify costs attributable to satisfying franchise requirements to support public, educational, and governmental channels or the use of such channels or any other services required under the franchise. 

(5) IMPLEMENTATION AND ENFORCEMENT.—The regulations 

prescribed by the Commission under this subsection shall include additional standards, guidelines, and procedures concerning the implementation and enforcement of such regulations, which shall include—

(A) procedures by which øcable operators¿ video service 

providers may implement and franchising authorities may 

enforce the regulations prescribed by the Commission 

under this subsection; 

(B) procedures for the expeditious resolution of disputes 

between øcable operators¿ video service providers and franchising authorities concerning the administration of such 

regulations; 

(C) standards and procedures to prevent unreasonable 

charges for changes in the subscriber’s selection of services 

or equipment subject to regulation under this section, 

which standards shall require that charges for changing 

the service tier selected shall be based on the cost of such 

change and shall not exceed nominal amounts when the 

system’s configuration permits changes in service tier selection to be effected solely by coded entry on a computer 

terminal or by other similarly simple method; and 

(D) standards and procedures to assure that subscribers 

receive notice of the availability of the basic service tier required under this section. 

(6) NOTICE.—The procedures prescribed by the Commission 

pursuant to paragraph (5)(A) shall require a øcable operator¿ 

video service provider to provide 30 days’ advance notice to a 

franchising authority of any increase proposed in the price to 

be charged for the basic service tier. 

(7) COMPONENTS OF BASIC TIER SUBJECT TO RATE REGULATION.—

(A) MINIMUM CONTENTS.—Each cable operator of a cable 

system shall provide its subscribers a separately available 

basic service tier to which subscription is required for access to any other tier of service. Such basic service tier 

shall, at a minimum, consist of the following: 

(i) All signals carried in fulfillment of the requirements of sections 614 and 615. 


hmoore on PROD1PC68 with HMRPT
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(ii) Any public, educational, and governmental access programming required by the franchise of the 

cable system to be provided to subscribers. 

ø(iii) Any signal of any television broadcast station 

that is provided by the cable operator to any subscriber, except a signal which is secondarily transmitted by a satellite carrier beyond the local service 

area of such station.¿ 

(iii) Any analog signal and any digital video signal 

of any television broadcast station that is provided by 

the cable operator to any subscriber, except a signal 

which is secondarily transmitted by a satellite carrier 

beyond the local service area of such station. 

(B) PERMITTED ADDITIONS TO BASIC TIER.—A øcable operator¿ video service provider may add additional video programming signals or services to the basic service tier. Any 

such additional signals or services provided on the basic 

service tier shall be provided to subscribers at rates determined under the regulations prescribed by the Commission 

under this subsection. 

(8) BUY-THROUGH OF OTHER TIERS PROHIBITED.— (A) PROHIBITION.—A øcable operator¿ video service provider may not require the subscription to any tier other 

than the basic service tier required by paragraph (7) as a 

condition of access to video programming offered on a per 

channel or per program basis. A øcable operator¿ video 

service provider may not discriminate between subscribers 

to the basic service tier and other subscribers with regard 

to the rates charged for video programming offered on a 

per channel or per program basis. 

(B) EXCEPTION; LIMITATION.—The prohibition in subparagraph (A) shall not apply to a øcable¿ video service 

system that, by reason of the lack of addressable converter 

boxes or other technological limitations, does not permit 

the øoperator¿ provider to offer programming on a per 

channel or per program basis in the same manner required 

by subparagraph (A). This subparagraph shall not be 

available to any øcable operator¿ video service provider 

after—

(i) the technology utilized by the øcable¿ video service system is modified or improved in a way that eliminates such technological limitation; or 

(ii) 10 years after the date of enactment of the Cable 

Television Consumer Protection and Competition Act 

of 1992, subject to subparagraph (C). 

(C) WAIVER.—If, in any proceeding initiated at the request of any øcable operator,¿ video service provider, the 

Commission determines that compliance with the requirements of subparagraph (A) would require the øcable operator¿ video service provider to increase its rates, the Commission may, to the extent consistent with the public interest, grant such øcable operator¿ video service provider a 

waiver from such requirements for such specified period as 

the Commission determines reasonable and appropriate. 


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(c) REGULATION OF UNREASONABLE RATES.— (1) COMMISSION REGULATIONS.—Within 180 days after the 

date of enactment of the Cable Television Consumer Protection 

and Competition Act of 1992, the Commission shall, by regulation, establish the following: 

(A) criteria prescribed in accordance with paragraph (2) 

for identifying, in individual cases, rates for øcable¿ video 

service programming services that are unreasonable; 

(B) fair and expeditious procedures for the receipt, consideration, and resolution of complaints from any franchising authority (in accordance with paragraph (3)) alleging that a rate for øcable¿ video service programming services charged by a øcable operator¿ video service provider 

violates the criteria prescribed under subparagraph (A), 

which procedures shall include the minimum showing that 

shall be required for a complaint to obtain Commission 

consideration and resolution of whether the rate in question is unreasonable; and 

(C) the procedures to be used to reduce rates for øcable¿ 

video service programming services that are determined by 

the Commission to be unreasonable and to refund such 

portion of the rates or charges that were paid by subscribers after the filing of the first complaint filed with the 

franchising authority under paragraph (3) and that are determined to be unreasonable. 

(2) FACTORS TO BE CONSIDERED.—In establishing the criteria 

for determining in individual cases whether rates for øcable¿ 

video service programming services are unreasonable under 

paragraph (1)(A), the Commission shall consider, among other 

factors—

(A) the rates for similarly situated øcable¿ video service 

systems offering comparable øcable¿ video service programming services, taking into account similarities in facilities, regulatory and governmental costs, the number of 

subscribers, and other relevant factors; 

(B) the rates for øcable¿ video service systems, if any, 

that are subject to effective competition; 

(C) the history of the rates for øcable¿ video service programming services of the system, including the relationship of such rates to changes in general consumer prices; 

(D) the rates, as a whole, for all the øcable¿ video service 

programming, øcable¿ video service equipment, and øcable 

services¿ video services provided by the system, other than 

programming provided on a per channel or per program 

basis; 

(E) capital and operating costs of the øcable¿ video service system, including the quality and costs of the customer 

service provided by the øcable¿ video service system; and 

(F) the revenues (if any) received by a øcable operator¿ 

video service provider from advertising from programming 

that is carried as part of the service for which a rate is 

being established, and changes in such revenues, or from 

other consideration obtained in connection with the 

øcable¿ video service programming services concerned. 


hmoore on PROD1PC68 with HMRPT
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(3) REVIEW OF RATE CHANGES.—The Commission shall review 

any complaint submitted by a franchising authority after the 

date of enactment of the Telecommunications Act of 1996 concerning an increase in rates for øcable¿ video service programming services and issue a final order within 90 days after it 

receives such a complaint, unless the parties agree to extend 

the period for such review. A franchising authority may not file 

a complaint under this paragraph unless, within 90 days after 

such increase becomes effective it receives subscriber complaints. 

(4) SUNSET OF UPPER TIER RATE REGULATION.—This subsection shall not apply to øcable¿ video service programming 

services provided after March 31, 1999. 

(d) UNIFORM RATE STRUCTURE REQUIRED.—A øcable operator¿ 

video service provider shall have a rate structure, for the provision 

of øcable service,¿ video service, that is uniform throughout the geographic area in which øcable service¿ video service is provided 

over its øcable¿ video service system. This subsection does not 

apply to (1) a øcable operator¿ video service provider with respect 

to the provision of øcable service¿ video service over its øcable¿ 

video service system in any geographic area in which the video programming services offered by the øoperator¿ provider in that area 

are subject to effective competition, or (2) any video programming 

offered on a per channel or per program basis. Bulk discounts to 

multiple dwelling units shall not be subject to this subsection, except that a øcable operator¿ video service provider of a øcable¿ 

video service system that is not subject to effective competition may 

not charge predatory prices to a multiple dwelling unit. Upon a 

prima facie showing by a complainant that there are reasonable 

grounds to believe that the discounted price is predatory, the 

øcable¿ video service system shall have the burden of showing that 

its discounted price is not predatory. 

(e) DISCRIMINATION; SERVICES FOR THE HEARING IMPAIRED.— Nothing in this title shall be construed as prohibiting any Federal 

agency, State, or a franchising authority from— (1) prohibiting discrimination among subscribers and potential subscribers to øcable service,¿ video service, except that no 

Federal agency, State, or franchising authority may prohibit a 

øcable operator¿ video service provider from offering reasonable 

discounts to senior citizens or other economically disadvantaged group discounts; or 

(2) requiring and regulating the installation or rental of 

equipment which facilitates the reception of øcable service¿ 

video service by hearing impaired individuals. 

(f) NEGATIVE OPTION BILLING PROHIBITED.—A øcable operator¿ 

video service provider shall not charge a subscriber for any service 

or equipment that the subscriber has not affirmatively requested 

by name. For purposes of this subsection, a subscriber’s failure to 

refuse a øcable operator’s¿ video service provider’s proposal to provide such service or equipment shall not be deemed to be an affirmative request for such service or equipment. 

(g) COLLECTION OF INFORMATION.—The Commission shall, by regulation, require øcable operators¿ video service providers to file 

with the Commission or a franchising authority, as appropriate, 


hmoore on PROD1PC68 with HMRPT
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within one year after the date of enactment of the Cable Television 

Consumer Protection and Competition Act of 1992 and annually 

thereafter, such financial information as may be needed for purposes of administering and enforcing this section. 

(h) PREVENTION OF EVASIONS.—Within 180 days after the date of 

enactment of the Cable Television Consumer Protection and Competition Act of 1992, the Commission shall, by regulation, establish 

standards, guidelines, and procedures to prevent evasions, including evasions that result from retiering, of the requirements of this 

section and shall, thereafter, periodically review and revise such 

standards, guidelines, and procedures. 

(i) SMALL SYSTEM BURDENS.—In developing and prescribing regulations pursuant to this section, the Commission shall design such 

regulations to reduce the administrative burdens and cost of compliance for øcable¿ video service systems that have 1,000 or fewer 

subscribers. 

(j) RATE REGULATION AGREEMENTS.—During the term of an 

agreement made before July 1, 1990, by a franchising authority 

and a øcable operator¿ video service provider providing for the regulation of basic øcable service¿ video service rates, where there was 

not effective competition under Commission rules in effect on that 

date, nothing in this section (or the regulations thereunder) shall 

abridge the ability of such franchising authority to regulate rates 

in accordance with such an agreement. 

(k) REPORTS ON AVERAGE PRICES.—The Commission shall annually publish statistical reports on the average rates for basic øcable 

service¿ video service and other øcable¿ video service programming, 

and for converter boxes, remote control units, and other equipment, 

of—

(1) øcable¿ video service systems that the Commission has 

found are subject to effective competition under subsection 

(a)(2), compared with 

(2) øcable¿ video service systems that the Commission has 

found are not subject to such effective competition. 

(l) DEFINITIONS.—As used in this section—

(1) The term ‘‘effective competition’’ means that—

(A) fewer than 30 percent of the households in the franchise area subscribe to the øcable service¿ video service of 

a øcable¿ video service system; 

(B) the franchise area is—

(i) served by at least two unaffiliated multichannel 

video programming distributors each of which offers 

comparable video programming to at least 50 percent 

of the households in the franchise area; and 

(ii) the number of households subscribing to programming services offered by multichannel video programming distributors other than the largest multichannel video programming distributor exceeds 15 

percent of the households in the franchise area; 

(C) a multichannel video programming distributor operated by the franchising authority for that franchise area 

offers video programming to at least 50 percent of the 

households in that franchise area; or 


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(D) a local exchange carrier or its affiliate (or any multichannel video programming distributor using the facilities 

of such carrier or its affiliate) offers video programming 

services directly to subscribers by any means (other than 

direct-to-home satellite services) in the franchise area of 

an unaffiliated øcable operator¿ video service provider 

which is providing øcable service¿ video service in that 

franchise area, but only if the video programming services 

so offered in that area are comparable to the video programming services provided by the unaffiliated øcable operator¿ video service provider in that area. 

(2) The term ‘‘cable programming service’’ means any video 

programming provided over a øcable¿ video service system, regardless of service tier, including installation or rental of 

equipment used for the receipt of such video programming, 

other than (A) video programming carried on the basic service 

tier, and (B) video programming offered on a per channel or 

per program basis. 

(m) SPECIAL RULES FOR SMALL COMPANIES.—

(1) IN GENERAL.—Subsections (a), (b), and (c) do not apply to 

a small øcable operator¿ video service provider with respect 

to—

(A) øcable¿ video service programming services, or 

(B) a basic service tier that was the only service tier subject to regulation as of December 31, 1994, 

in any franchise area in which that øoperator¿ provider services 50,000 or fewer subscribers. 

(2) DEFINITION OF SMALL øCABLE OPERATOR¿ VIDEO SERVICE

PROVIDER.—For purposes of this subsection, the term ‘‘small 

øcable operator¿ video service provider’’ means a øcable operator¿ video service provider that, directly or through an affiliate, serves in the aggregate fewer than 1 percent of all subscribers in the United States and is not affiliated with any entity or entities whose gross annual revenues in the aggregate 

exceed $250,000,000. 

(n) TREATMENT OF PRIOR YEAR LOSSES.—Notwithstanding any 

other provision of this section or of section 612, losses associated 

with a øcable¿ video service system (including losses associated 

with the grant or award of a franchise) that were incurred prior to 

September 4, 1992, with respect to a øcable¿ video service system 

that is owned and operated by the original franchisee of such system shall not be disallowed, in whole or in part, in the determination of whether the rates for any tier of service or any type of 

equipment that is subject to regulation under this section are lawful. 

SEC. 624. REGULATION OF SERVICES, FACILITIES, AND EQUIPMENT. 

ø47 U.S.C. 544¿ 

ø(a) Any franchising authority may not regulate the services, facilities, and equipment provided by a cable operator except to the 

extent consistent with this title. 

ø(b) In the case of any franchise granted after the effective date 

of this title, the franchising authority, to the extent related to the 

establishment or operation of a cable system—


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ø(1) in its request for proposals for a franchise (including requests for renewal proposals, subject to section 626), may establish requirements for facilities and equipment, but may not, 

except as provided in subsection (h), establish requirements for 

video programming or other information services; and 

ø(2) subject to section 625, may enforce any requirements 

contained within the franchise— ø(A) for facilities and equipment; and 

ø(B) for broad categories of video programming or other 

services. 

ø(c) In the case of any franchise in effect on the effective date of 

this title, the franchising authority may, subject to section 625, enforce requirements contained within the franchise for the provision 

of services, facilities, and equipment, whether or not related to the 

establishment or operation of a cable system.¿ 

ø(d)¿ (a)(1) Nothing in this title shall be construed as prohibiting 

a franchising authority and a øcable operator¿ video service provider from specifying, in a franchise or renewal thereof, that certain øcable services¿ video services shall not be provided or shall 

be provided subject to conditions, if such øcable services¿ video 

services are obscene or are otherwise unprotected by the Constitution of the United States. 

(2) In order to restrict the viewing of programming which is obscene or indecent, upon the request of a subscriber, a øcable operator¿ video service provider shall provide (by sale or lease) a device 

by which the subscriber can prohibit viewing of a particular øcable 

service¿ video service during periods selected by that subscriber. 

(3)(A) If a øcable operator¿ video service provider provides a premium channel without charge to øcable¿ video service subscribers 

who do not subscribe to such premium channel, the øcable operator¿ video service provider shall, not later than 30 days before 

such premium channel is provided without charge— (i) notify all øcable¿ video service subscribers that the øcable 

operator¿ video service provider plans to provide a premium 

channel without charge; 

(ii) notify all øcable¿ video service subscribers when the 

øcable operator¿ video service provider plans to offer a premium channel without charge; 

(iii) notify all øcable¿ video service subscribers that they 

have a right to request that the channel carrying the premium 

channel be blocked; and 

(iv) block the channel carrying the premium channel upon 

the request of a subscriber. 

(B) For the purpose of this section, the term ‘‘premium channel’’

shall mean any pay service offered on a per channel or per program 

basis, which offers movies rated by the Motion Picture Association 

of America as X, NC–17, or R. 

ø(e) Within one year after the date of enactment of the Cable Television Consumer Protection and Competition Act of 1992, the 

Commission shall prescribe regulations which establish minimum 

technical standards relating to cable systems’ technical operation 

and signal quality. The Commission shall update such standards 

periodically to reflect improvements in technology. No State or 

franchising authority may prohibit, condition, or restrict a cable 


hmoore on PROD1PC68 with HMRPT
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system’s use of any type of subscriber equipment or any transmission technology.¿ 

ø(f)¿ (b)(1) Any Federal agency, State, or franchising authority 

may not impose requirements regarding the provision or content of 

øcable services,¿ video services, except as expressly provided in this 

title. 

(2) Paragraph (1) shall not apply to—

(A) any rule, regulation, or order issued under any Federal 

law, as such rule, regulation, or order (i) was in effect on September 21, 1983, or (ii) may be amended after such date if the 

rule, regulation, or order as amended is not inconsistent with 

the express provisions of this title; and 

(B) any rule, regulation, or order under title 17, United 

States Code. 

ø(g)¿ (c) Notwithstanding any such rule, regulation, or order, 

each øcable operator¿ video service provider shall comply with such 

standards as the Commission shall prescribe to ensure that viewers 

of video programming on øcable¿ video service systems are afforded 

the same emergency information as is afforded by the emergency 

broadcasting system pursuant to Commission regulations in subpart G of part 73, title 47, Code of Federal Regulations. 

ø(h) A franchising authority may require a cable operator to do 

any one or more of the following: 

ø(1) Provide 30 days’ advance written notice of any change 

in channel assignment or in the video programming service 

provided over any such channel. 

ø(2) Inform subscribers, via written notice, that comments on 

programming and channel position changes are being recorded 

by a designated office of the franchising authority.¿ 

ø(i)¿ (d) Within 120 days after the date of enactment of this subsection, the Commission shall prescribe rules concerning the disposition, after a subscriber to a øcable¿ video service system terminates service, of any cable or wire installed by the øcable operator¿ 

video service provider within the premises of such subscriber.A 

SEC. 624A. CONSUMER ELECTRONICS EQUIPMENT COMPATIBILITY. 

ø47 U.S.C. 544a¿ 

(a) FINDINGS.—The Congress finds that—

(1) new and recent models of television receivers and video 

øcassette¿ recorders often contain premium features and functions that are disabled or inhibited because of øcable¿ video 

service scrambling, encoding, or encryption technologies and 

devices, including converter boxes and remote control devices 

required by øcable operators¿ video service providers to receive 

programming; 

(2) if these problems are allowed to persist, consumers will 

be less likely to purchase, and electronics equipment manufacturers will be less likely to develop, manufacture, or offer for 

sale, television receivers and video øcassette¿ recorders with 

new and innovative features and functions; 

(3) øcable operators¿ video service providers should use technologies that will prevent signal thefts while permitting consumers to benefit from such features and functions in such receivers and recorders; and 


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(4) compatibility among televisions, video øcassette¿ recorders, and øcable¿ video service systems can be assured with narrow technical standards that mandate a minimum degree of 

common design and operation, leaving all features, functions, 

protocols, and other product and service options for selection 

through open competition in the market. 

(b) COMPATIBLE INTERFACES.— (1) REPORT; REGULATIONS.—Within 1 year after the date of 

enactment of this section, the Commission, in consultation 

with representatives of the øcable¿ video service industry and 

the consumer electronics industry, shall report to Congress on 

means of assuring compatibility between televisions and video 

øcassette¿ recorders and øcable¿ video service systems, consistent with the need to prevent theft of øcable service,¿ video 

service, so that øcable¿ video service subscribers will be able to 

enjoy the full benefit of both the programming available on 

øcable¿ video service systems and the functions available on 

their televisions and video øcassette¿ recorders. Within 180 

days after the date of submission of the report required by this 

subsection, the Commission shall issue such regulations as are 

necessary to assure such compatibility. 

(2) SCRAMBLING AND ENCRYPTION.—In issuing the regulations referred to in paragraph (1), the Commission shall determine whether and, if so, under what circumstances to permit 

øcable¿ video service systems to scramble or encrypt signals or 

to restrict øcable¿ video service systems in the manner in 

which they encrypt or scramble signals, except that the Commission shall not limit the use of scrambling or encryption 

technology where the use of such technology does not interfere 

with the functions of subscribers’ television receivers or video 

øcassette¿ recorders. 

(c) RULEMAKING REQUIREMENTS.—

(1) FACTORS TO BE CONSIDERED.—In prescribing the regulations required by this section, the Commission shall consider— (A) the need to maximize open competition in the market for all features, functions, protocols, and other product 

and service options of converter boxes and other øcable¿ 

video service converters unrelated to the descrambling or 

decryption of øcable¿ video service television signals; 

(B) the costs and benefits to consumers of imposing compatibility requirements on øcable operators¿ video service 

providers and television manufacturers in a manner that, 

while providing effective protection against theft or unauthorized reception of øcable service,¿ video service, will 

minimize interference with or nullification of the special 

functions of subscribers’ television receivers or video øcassette¿ recorders, including functions that permit the subscriber—

(i) to watch a program on one channel while simultaneously using a video øcassette¿ recorder to øtape¿ 

record a program on another channel; 

(ii) to use a video øcassette¿ recorder to øtape¿ 

record two consecutive programs that appear on different channels; and 


hmoore on PROD1PC68 with HMRPT
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(iii) to use advanced television picture generation 

and display features; and 

(C) the need for øcable operators¿ video service providers 

to protect the integrity of the signals transmitted by the 

øcable operator¿ video service provider against theft or to 

protect such signals against unauthorized reception. 

(2) REGULATIONS REQUIRED.—The regulations prescribed by 

the Commission under this section shall include such regulations as are necessary—

(A) to specify the technical requirements with which a 

television receiver or video øcassette¿ recorder must comply in order to be sold as ‘‘cable compatible’’ or ‘‘cable 

ready’’; 

(B) to require øcable operators¿ video service providers 

offering channels whose reception requires a converter 

box—

(i) to notify subscribers that they may be unable to 

benefit from the special functions of their television receivers and video øcassette¿ recorders, including functions that permit subscribers—

(I) to watch a program on one channel while simultaneously using a video øcassette¿ recorder to 

øtape¿ record a program on another channel; 

(II) to use a video øcassette¿ recorder to øtape¿ 

record two consecutive programs that appear on 

different channels; and 

(III) to use advanced television picture generation and display features; and 

(ii) to the extent technically and economically feasible, to offer subscribers the option of having all other 

channels delivered directly to the subscribers’ television receivers or video øcassette¿ recorders without 

passing through the converter box; 

(C) to promote the commercial availability, from øcable 

operators¿ video service providers and retail vendors that 

are not affiliated with øcable¿ video service systems, of 

converter boxes and of remote control devices compatible 

with converter boxes; 

(D) to ensure that any standards or regulations developed under the authority of this section to ensure compatibility between televisions, video øcassette¿ recorders, and 

øcable¿ video service systems do not affect features, functions, protocols, and other product and service options 

other than those specified in paragraph (1)(B), including 

telecommunications interface equipment, home automation 

communications, and computer network services; 

(E) to require a øcable operator¿ video service provider 

who offers subscribers the option of renting a remote control unit—

(i) to notify subscribers that they may purchase a 

commercially available remote control device from any 

source that sells such devices rather than renting it 

from the øcable operator;¿ video service provider; and 


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(ii) to specify the types of remote control units that 

are compatible with the converter box supplied by the 

øcable operator;¿ video service provider; and 

(F) to prohibit a øcable operator¿ video service provider 

from taking any action that prevents or in any way disables the converter box supplied by the øcable operator¿ 

video service provider from operating compatibly with commercially available remote control units. 

(d) REVIEW OF REGULATIONS.—The Commission shall periodically 

review and, if necessary, modify the regulations issued pursuant to 

this section in light of any actions taken in response to such regulations and to reflect improvements and changes in øcable¿ video 

service systems, television receivers, video øcassette¿ recorders, and 

similar technology. 

øSEC. 625. MODIFICATION OF FRANCHISE OBLIGATIONS. 

ø47 U.S.C. 545¿ 

ø(a)(1) During the period a franchise is in effect, the cable operator may obtain from the franchising authority modifications of the 

requirements in such franchise—

ø(A) in the case of any such requirement for facilities or 

equipment, including public, educational, or governmental access facilities or equipment, if the cable operator demonstrates 

that (i) it is commercially impracticable for the operator to 

comply with such requirement, and (ii) the proposal by the 

cable operator for modification of such requirement is appropriate because of commercial impracticability; or 

ø(B) in the case of any such requirement for services, if the 

cable operator demonstrates that the mix, quality, and level of 

services required by the franchise at the time it was granted 

will be maintained after such modification. 

ø(2) Any final decision by a franchising authority under this subsection shall be made in a public proceeding. Such decision shall 

be made within 120 days after receipt of such request by the franchising authority, unless such 120-day period is extended by mutual agreement of the cable operator and the franchising authority. 

ø(b)(1) Any cable operator whose request for modification under 

subsection (a) has been denied by a final decision of a franchising 

authority may obtain modification of such franchise requirements 

pursuant to the provisions of section 635. 

ø(2) In the case of any proposed modification of a requirement for 

facilities or equipment, the court shall grant such modification only 

if the cable operator demonstrates to the court that—

ø(A) it is commercially impracticable for the operator to comply with such requirement; and 

ø(B) the terms of the modification requested are appropriate 

because of commercial impracticability. 

ø(3) In the case of any proposed modification of a requirement for 

services, the court shall grant such modification only if the cable 

operator demonstrates to the court that the mix, quality, and level 

of services required by the franchise at the time it was granted will 

be maintained after such modification. 

ø(c) Notwithstanding subsections (a) and (b), a cable operator 

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arrange, replace, or remove a particular cable service required by 

the franchise if— ø(1) such service is no longer available to the operator; or 

ø(2) such service is available to the operator only upon the 

payment of a royalty required under section 801(b)(2) of title 

17, United States Code, which the cable operator can document—

ø(A) is substantially in excess of the amount of such payment required on the date of the operator’s offer to provide 

such service, and 

ø(B) has not been specifically compensated for through a 

rate increase or other adjustment. 

ø(d) Notwithstanding subsections (a) and (b), a cable operator 

may take such actions to rearrange a particular service from one 

service tier to another, or otherwise offer the service, if the rates 

for all of the service tiers involved in such actions are not subject 

to regulation under section 623. 

ø(e) A cable operator may not obtain modification under this section of any requirement for services relating to public, educational, 

or governmental access. 

ø(f) For purposes of this section, the term ‘‘commercially impracticable’’ means, with respect to any requirement applicable to a 

cable operator, that it is commercially impracticable for the operator to comply with such requirement as a result of a change in 

conditions which is beyond the control of the operator and the nonoccurrence of which was a basic assumption on which the requirement was based. 

øSEC. 626. RENEWAL. 

ø47 U.S.C. 546¿ 

ø(a)(1) A franchising authority may, on its own initiative during 

the 6-month period which begins with the 36th month before the 

franchise expiration, commence a proceeding which affords the public in the franchise area appropriate notice and participation for 

the purpose of (A) identifying the future cable-related community 

needs and interests, and (B) reviewing the performance of the cable 

operator under the franchise during the then current franchise 

term. If the cable operator submits, during such 6-month period, a 

written renewal notice requesting the commencement of such a 

proceeding, the franchising authority shall commence such a proceeding not later than 6 months after the date such notice is submitted. 

ø(2) The cable operator may not invoke the renewal procedures 

set forth in subsections (b) through (g) unless— ø(A) such a proceeding is requested by the cable operator by 

timely submission of such notice; or 

ø(B) such a proceeding is commenced by the franchising authority on its own initiative. 

ø(b)(1) Upon completion of a proceeding under subsection (a), a 

cable operator seeking renewal of a franchise may, on its own initiative or at the request of a franchising authority, submit a proposal for renewal. 

ø(2) Subject to section 624, any such proposal shall contain such 

material as the franchising authority may require, including proposals for an upgrade of the cable system. 


hmoore on PROD1PC68 with HMRPT
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ø(3) The franchising authority may establish a date by which 

such proposal shall be submitted. 

ø(c)(1) Upon submittal by a cable operator of a proposal to the 

franchising authority for the renewal of a franchise pursuant to 

subsection (b), the franchising authority shall provide prompt public notice of such proposal and, during the 4-month period which 

begins on the date of the submission of the cable operator’s proposal pursuant to subsection (b), renew the franchise or, issue a 

preliminary assessment that the franchise should not be renewed 

and, at the request of the operator or on its own initiative, commence an administrative proceeding, after providing prompt public 

notice of such proceeding, in accordance with paragraph (2) to consider whether— ø(A) the cable operator has substantially complied with the 

material terms of the existing franchise and with applicable 

law; 

ø(B) the quality of the operator’s service, including signal 

quality, response to consumer complaints, and billing practices, 

but without regard to the mix or quality of cable services or 

other services provided over the system, has been reasonable 

in light of community needs; 

ø(C) the operator has the financial, legal, and technical ability to provide the services, facilities, and equipment as set 

forth in the operator’s proposal; and 

ø(D) the operator’s proposal is reasonable to meet the future 

cable-related community needs and interests, taking into account the cost of meeting such needs and interests. 

ø(2) In any proceeding under paragraph (1), the cable operator 

shall be afforded adequate notice and the cable operator and the 

franchise authority, or its designee, shall be afforded fair opportunity for full participation, including the right to introduce evidence (including evidence related to issues raised in the proceeding 

under subsection (a)), to require the production of evidence, and to 

question witnesses. A transcript shall be made of any such proceeding. 

ø(3) At the completion of a proceeding under this subsection, the 

franchising authority shall issue a written decision granting or denying the proposal for renewal based upon the record of such proceeding, and transmit a copy of such decision to the cable operator. 

Such decision shall state the reasons therefor. 

ø(d) Any denial of a proposal for renewal that has been submitted in compliance with subsection (b) shall be based on one or 

more adverse findings made with respect to the factors described 

in subparagraphs (A) through (D) of subsection (c)(1), pursuant to 

the record of the proceeding under subsection (c). A franchising authority may not base a denial of renewal on a failure to substantially comply with the material terms of the franchise under subsection (c)(1)(A) or on events considered under subsection (c)(1)(B) 

in any case in which a violation of the franchise or the events considered under subsection (c)(1)(B) occur after the effective date of 

this title unless the franchising authority has provided the operator 

with notice and the opportunity to cure, or in any case in which 

it is documented that the franchising authority has waived its right 

to object, or the cable operator gives written notice of a failure or 


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inability to cure and the franchising authority fails to object within 

a reasonable time after receipt of such notice. 

ø(e)(1) Any cable operator whose proposal for renewal has been 

denied by a final decision of a franchising authority made pursuant 

to this section, or has been adversely affected by a failure of the 

franchising authority to act in accordance with the procedural requirements of this section, may appeal such final decision or failure 

pursuant to the provisions of section 635. 

ø(2) The court shall grant appropriate relief if the court finds 

that—ø(A) any action of the franchising authority, other than 

harmless error, is not in compliance with the procedural requirements of this section; or 

ø(B) in the event of a final decision of the franchising authority denying the renewal proposal, the operator has demonstrated that the adverse finding of the franchising authority 

with respect to each of the factors described in subparagraphs 

(A) through (D) of subsection (c)(1) on which the denial is 

based is not supported by a preponderance of the evidence, 

based on the record of the proceeding conducted under subsection (c). 

ø(f) Any decision of a franchising authority on a proposal for renewal shall not be considered final unless all administrative review 

by the State has occurred or the opportunity therefor has lapsed. 

ø(g) For purposes of this section, the term ‘‘franchise expiration’’ means the date of the expiration of the term of the franchise, as 

provided under the franchise, as it was in effect on the date of the 

enactment of this title. 

ø(h) Notwithstanding the provisions of subsections (a) through 

(g) of this section, a cable operator may submit a proposal for the 

renewal of a franchise pursuant to this subsection at any time, and 

a franchising authority may, after affording the public adequate notice and opportunity for comment, grant or deny such proposal at 

any time (including after proceedings pursuant to this section have 

commenced). The provisions of subsections (a) through (g) of this 

section shall not apply to a decision to grant or deny a proposal 

under this subsection. The denial of a renewal pursuant to this 

subsection shall not affect action on a renewal proposal that is submitted in accordance with subsections (a) through (g). 

ø(i) Notwithstanding the provisions of subsections (a) through 

(h), any lawful action to revoke a cable operator’s franchise for 

cause shall not be negated by the subsequent initiation of renewal 

proceedings by the cable operator under this section.¿ 

SEC. 625. RENEWAL; REVOCATION. 

(a) RENEWAL.—A video service provider may submit a written application for renewal of its franchise to a franchising authority not 

more than 180 days before the franchise expires. Any such application shall be made on the standard application form promulgated 

by the Commission under section 612 and shall be treated under 

section 603 in the same manner as any other franchise application. 

(b) REVOCATION.—Notwithstanding any other law of general applicability, a franchising authority may revoke a video service provider’s franchise if it determines, after notice and an opportunity for 

a hearing, that the video service provider has—


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(1) violated any Federal or State law, or any Commission regulation, relating to the provision of video services in the franchise area; 

(2) made false statements, or material omissions, in any filing 

with the franchising authority or the Commission relating to 

the provision of video service in the franchise area; 

(3) violated the rights-of-way management laws or regulations of any franchising authority in the franchise area relating 

to the provision of video service in the franchise area; or 

(4) violated the terms of the franchise agreement (including 

any commercial agreement permitted under section 622(b)(3)). 

(c) NOTICE; OPPORTUNITY TO CURE.—A franchising authority 

may not revoke a franchise unless it first provides—

(1) written notice to the video service provider of the alleged 

violation in which the revocation would be based; and 

(2) a reasonable opportunity to cure the violation. 

(d) FINALITY OF DECISION.—Any decision of a franchising authority to revoke a franchise under this section is final for purposes of 

appeal. A video service provider whose franchise is revoked by a 

franchising authority may avail itself of the procedures in section 

635 of this Act. 

øSEC. 627. CONDITIONS OF SALE. 

ø47 U.S.C. 547¿ 

ø(a) If a renewal of a franchise held by a cable operator is denied 

and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be—

ø(1) at fair market value, determined on the basis of the 

cable system valued as a going concern but with no value allocated to the franchise itself, or 

ø(2) in the case of any franchise existing on the effective date 

of this title, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such 

an acquisition or transfer. 

ø(b) If a franchise held by a cable operator is revoked for cause 

and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be—

ø(1) at an equitable price, or 

ø(2) in the case of any franchise existing on the effective date 

of this title, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such 

an acquisition or transfer.¿ 

SEC. ø628.¿ 626. DEVELOPMENT OF COMPETITION AND DIVERSITY IN 

VIDEO PROGRAMMING DISTRIBUTION. 

ø47 U.S.C. 548¿ 

(a) PURPOSE.—The purpose of this section is to promote the public interest, convenience, and necessity by increasing competition 

and diversity in the multichannel video programming market, to 

increase the availability of satellite øcable¿ video service programming and satellite broadcast programming to persons in rural and 

other areas not currently able to receive such programming, and to 

spur the development of communications technologies. 


hmoore on PROD1PC68 with HMRPT
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(b) PROHIBITION.—It shall be unlawful for a øcable operator,¿ 

video service provider, a satellite øcable¿ video service programming vendor in which a øcable operator¿ video service provider has 

an attributable interest, or a satellite broadcast programming vendor to engage in unfair methods of competition or unfair or deceptive acts or practices, the purpose or effect of which is to hinder significantly or to prevent any multichannel video programming distributor from providing satellite øcable¿ video service programming 

or satellite broadcast programming to subscribers or consumers. 

(c) REGULATIONS REQUIRED.— (1) PROCEEDING REQUIRED.—Within 180 days after the date 

of enactment of this section, the Commission shall, in order to 

promote the public interest, convenience, and necessity by increasing competition and diversity in the multichannel video 

programming market and the continuing development of communications technologies, prescribe regulations to specify particular conduct that is prohibited by subsection (b). 

(2) MINIMUM CONTENTS OF REGULATIONS.—The regulations to 

be promulgated under this section shall— (A) establish effective safeguards to prevent a øcable operator¿ video service provider which has an attributable interest in a satellite øcable¿ video service programming vendor or a satellite broadcast programming vendor from unduly or improperly influencing the decision of such vendor 

to sell, or the prices, terms, and conditions of sale of, satellite øcable¿ video service programming or satellite broadcast programming to any unaffiliated multichannel video 

programming distributor; 

(B) prohibit discrimination by a satellite øcable¿ video 

service programming vendor in which a øcable operator¿ 

video service provider has an attributable interest or by a 

satellite broadcast programming vendor in the prices, 

terms, and conditions of sale or delivery of satellite øcable¿ 

video service programming or satellite broadcast programming among or between øcable¿ video service systems, 

øcable operators,¿ video service providers, or other multichannel video programming distributors, or their agents or 

buying groups; except that such a satellite øcable¿ video 

service programming vendor in which a øcable operator¿ 

video service provider has an attributable interest or such 

a satellite broadcast programming vendor shall not be prohibited from—

(i) imposing reasonable requirements for creditworthiness, offering of service, and financial stability 

and standards regarding character and technical quality; 

(ii) establishing different prices, terms, and conditions to take into account actual and reasonable differences in the cost of creation, sale, delivery, or transmission of satellite øcable¿ video service programming 

or satellite broadcast programming; 

(iii) establishing different prices, terms, and conditions which take into account economies of scale, cost 

savings, or other direct and legitimate economic beneVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00277 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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fits reasonably attributable to the number of subscribers served by the distributor; or 

(iv) entering into an exclusive contract that is permitted under subparagraph (D); 

(C) prohibit practices, understandings, arrangements, 

and activities, including exclusive contracts for satellite 

øcable¿ video service programming or satellite broadcast 

programming between a øcable operator¿ video service provider and a satellite øcable¿ video service programming 

vendor or satellite broadcast programming vendor, that 

prevent a multichannel video programming distributor 

from obtaining such programming from any satellite 

øcable¿ video service programming vendor in which a 

øcable operator¿ video service provider has an attributable 

interest or any satellite broadcast programming vendor in 

which a øcable operator¿ video service provider has an attributable interest for distribution to persons in areas not 

served by a øcable operator¿ video service provider as of 

the date of enactment of this section; and 

(D) with respect to distribution to persons in areas 

served by a øcable operator,¿ video service provider, prohibit exclusive contracts for satellite øcable¿ video service 

programming or satellite broadcast programming between 

a øcable operator¿ video service provider and a satellite 

øcable¿ video service programming vendor in which a 

øcable operator¿ video service provider has an attributable 

interest or a satellite broadcast programming vendor in 

which a øcable operator¿ video service provider has an attributable interest, unless the Commission determines (in 

accordance with paragraph (4)) that such contract is in the 

public interest. 

(3) LIMITATIONS.—

(A) GEOGRAPHIC LIMITATIONS.—Nothing in this section 

shall require any person who is engaged in the national or 

regional distribution of video programming to make such 

programming available in any geographic area beyond 

which such programming has been authorized or licensed 

for distribution. 

(B) APPLICABILITY TO SATELLITE RETRANSMISSIONS.—

Nothing in this section shall apply (i) to the signal of any 

broadcast affiliate of a national television network or other 

television signal that is retransmitted by satellite but that 

is not satellite broadcast programming, or (ii) to any internal satellite communication of any broadcast network or 

øcable¿ video service network that is not satellite broadcast programming. 

(4) PUBLIC INTEREST DETERMINATIONS ON EXCLUSIVE CONTRACTS.—In determining whether an exclusive contract is in 

the public interest for purposes of paragraph (2)(D), the Commission shall consider each of the following factors with respect to the effect of such contract on the distribution of video 

programming in areas that are served by a øcable operator¿ 

video service provider: 


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(A) the effect of such exclusive contract on the development of competition in local and national multichannel 

video programming distribution markets; 

(B) the effect of such exclusive contract on competition 

from multichannel video programming distribution technologies other than øcable¿ video service; 

(C) the effect of such exclusive contract on the attraction 

of capital investment in the production and distribution of 

new satellite øcable¿ video service programming; 

(D) the effect of such exclusive contract on diversity of 

programming in the multichannel video programming distribution market; and 

(E) the duration of the exclusive contract. 

(5) SUNSET PROVISION.—The prohibition required by paragraph (2)(D) shall cease to be effective ø10 years after the date 

of enactment of this section,¿ on October 5, 2012, unless the 

Commission finds, in a proceeding conducted during the ølast 

year of such 10-year period,¿ 12-month period ending on that 

date, that such prohibition continues to be necessary to preserve and protect competition and diversity in the distribution 

of video programming. 

(d) ADJUDICATORY PROCEEDING.—Any multichannel video programming distributor aggrieved by conduct that it alleges constitutes a violation of subsection (b), or the regulations of the Commission under subsection (c), may commence an adjudicatory proceeding at the Commission. 

(e) REMEDIES FOR VIOLATIONS.— (1) REMEDIES AUTHORIZED.—Upon completion of such adjudicatory proceeding, the Commission shall have the power to 

order appropriate remedies, including, if necessary, the power 

to establish prices, terms, and conditions of sale of programming to the aggrieved multichannel video programming distributor. 

(2) ADDITIONAL REMEDIES.—The remedies provided in paragraph (1) are in addition to and not in lieu of the remedies 

available under title V or any other provision of this Act. 

(f) PROCEDURES.—The Commission shall prescribe regulations to 

implement this section. The Commission’s regulations shall— (1) provide for an expedited review of any complaints made 

pursuant to this section; 

(2) establish procedures for the Commission to collect such 

data, including the right to obtain copies of all contracts and 

documents reflecting arrangements and understandings alleged to violate this section, as the Commission requires to 

carry out this section; and 

(3) provide for penalties to be assessed against any person 

filing a frivolous complaint pursuant to this section. 

(g) REPORTS.—The Commission shall, beginning not later than 18 

months after promulgation of the regulations required by subsection (c), annually report to Congress on the status of competition 

in the market for the delivery of video programming. 

(h) EXEMPTIONS FOR PRIOR CONTRACTS.— (1) IN GENERAL.—Nothing in this section shall affect any contract that grants exclusive distribution rights to any person 


hmoore on PROD1PC68 with HMRPT
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with respect to satellite øcable¿ video service programming and 

that was entered into on or before June 1, 1990, except that 

the provisions of subsection (c)(2)(C) shall apply for distribution to persons in areas not served by a øcable operator.¿ video 

service provider. 

(2) LIMITATION ON RENEWALS.—A contract that was entered 

into on or before June 1, 1990, but that is renewed or extended 

after the date of enactment of this section shall not be exempt 

under paragraph (1). 

(i) DEFINITIONS.—As used in this section: 

(1) The term ‘‘satellite øcable¿ video service programming’’ has the meaning provided under section 705 of this Act, except 

that such term does not include satellite broadcast programming. 

(2) The term ‘‘satellite øcable¿ video service programming 

vendor’’ means a person engaged in the production, creation, or 

wholesale distribution for sale of satellite øcable¿ video service 

programming, but does not include a satellite broadcast programming vendor. 

(3) The term ‘‘satellite broadcast programming’’ means 

broadcast video programming when such programming is retransmitted by satellite and the entity retransmitting such 

programming is not the broadcaster or an entity performing 

such retransmission on behalf of and with the specific consent 

of the broadcaster. 

(4) The term ‘‘satellite broadcast programming vendor’’ means a fixed service satellite carrier that provides service 

pursuant to section 119 of title 17, United States Code, with 

respect to satellite broadcast programming. 

(j) COMMON CARRIERS.—Any provision that applies to a øcable 

operator¿ video service provider under this section shall apply to a 

common carrier or its affiliate that provides video programming by 

any means directly to subscribers. Any such provision that applies 

to a satellite øcable¿ video service programming vendor in which a 

øcable operator¿ video service provider has an attributable interest 

shall apply to any satellite øcable¿ video service programming vendor in which such common carrier has an attributable interest. For 

the purposes of this subsection, two or fewer common officers or directors shall not by itself establish an attributable interest by a 

common carrier in a satellite øcable¿ video service programming 

vendor (or its parent company). 

SEC. ø629.¿ 627. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES. 

ø47 U.S.C. 549¿ 

(a) COMMERCIAL CONSUMER AVAILABILITY OF EQUIPMENT USED

TO ACCESS SERVICES PROVIDED BY MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTORS.—The Commission shall, in consultation 

with appropriate industry standard-setting organizations, adopt 

regulations to assure the commercial availability, to consumers of 

multichannel video programming and other services offered over 

multichannel video programming systems, of converter boxes, 

interactive communications equipment, and other equipment used 

by consumers to access multichannel video programming and other 

services offered over multichannel video programming systems, 


hmoore on PROD1PC68 with HMRPT
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from manufacturers, retailers, and other vendors not affiliated with 

any multichannel video programming distributor. Such regulations 

shall not prohibit any multichannel video programming distributor 

from also offering converter boxes, interactive communications 

equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video programming systems, to consumers, if the system 

øoperator’s¿ provider’s charges to consumers for such devices and 

equipment are separately stated and not subsidized by charges for 

any such service. 

(b) PROTECTION OF SYSTEM SECURITY.—The Commission shall 

not prescribe regulations under subsection (a) which would jeopardize security of multichannel video programming and other services offered over multichannel video programming systems, or impede the legal rights of a provider of such services to prevent theft 

of service. 

(c) WAIVER.—The Commission shall waive a regulation adopted 

under subsection (a) for a limited time upon an appropriate showing by a provider of multichannel video programming and other 

services offered over multichannel video programming systems, or 

an equipment provider, that such waiver is necessary to assist the 

development or introduction of a new or improved multichannel 

video programming or other service offered over multichannel video 

programming systems, technology, or products. Upon an appropriate showing, the Commission shall grant any such waiver request within 90 days of any application filed under this subsection, 

and such waiver shall be effective for all service providers and 

products in that category and for all providers of services and products. 

(d) AVOIDANCE OF REDUNDANT REGULATIONS.—

(1) COMMERCIAL AVAILABILITY DETERMINATIONS.—Determinations made or regulations prescribed by the Commission with 

respect to commercial availability to consumers of converter 

boxes, interactive communications equipment, and other equipment used by consumers to access multichannel video programming and other services offered over multichannel video 

programming systems, before the date of enactment of the 

Telecommunications Act of 1996 shall fulfill the requirements 

of this section. 

(2) REGULATIONS.—Nothing in this section affects section 

64.702(e) of the Commission’s regulations (47 C.F.R. 64.702(e)) 

or other Commission regulations governing interconnection and 

competitive provision of customer premises equipment used in 

connection with basic common carrier communications services. 

(e) SUNSET.—The regulations adopted under this section shall 

cease to apply when the Commission determines that—

(1) the market for the multichannel video programming distributors is fully competitive; 

(2) the market for converter boxes, and interactive communications equipment, used in conjunction with that service is 

fully competitive; and 

(3) elimination of the regulations would promote competition 

and the public interest. 


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(f) COMMISSION’S AUTHORITY.—Nothing in this section shall be 

construed as expanding or limiting any authority that the Commission may have under law in effect before the date of enactment of 

the Telecommunications Act of 1996. 

SEC. 628. ACCESS TO PROGRAMMING FOR SHARED FACILITIES. 

(a) IN GENERAL.—A video service programming vendor in which 

a video service provider has an attributable interest may not deny 

a video service provider with a franchise under this title access to 

video programming solely because that video service provider uses 

a headend for its video service system that is also used, under a 

shared ownership or leasing agreement, as the headend for another 

video service system. 

(b) VIDEO SERVICE PROGRAMMING VENDOR DEFINED.—The term 

‘‘video service programming vendor’’ means a person engaged in the 

production, creation, or wholesale distribution for sale of video programming that is primarily intended for receipt by video service 

providers for retransmission to their video service subscribers. 

PART IV—MISCELLANEOUS PROVISIONS 

SEC. 631. PROTECTION OF SUBSCRIBER PRIVACY. 

ø47 U.S.C. 551¿ 

(a)(1) At the time of entering into an agreement to provide any 

øcable service¿ video service or other service to a subscriber and at 

least once a year thereafter, a øcable operator¿ video service provider shall provide notice in the form of a separate, written statement to such subscriber which clearly and conspicuously informs 

the subscriber of—

(A) the nature of personally identifiable information collected 

or to be collected with respect to the subscriber and the nature 

of the use of such information; 

(B) the nature, frequency, and purpose of any disclosure 

which may be made of such information, including an identification of the types of persons to whom the disclosure may be 

made; 

(C) the period during which such information will be maintained by the øcable operator;¿ video service provider; 

(D) the times and place at which the subscriber may have access to such information in accordance with subsection (d); and 

(E) the limitations provided by this section with respect to 

the collection and disclosure of information by a øcable operator¿ video service provider and the right of the subscriber 

under subsections (f) and (h) to enforce such limitations. 

In the case of subscribers who have entered into such an agreement before the effective date of this section, such notice shall be 

provided within 180 days of such date and at least once a year 

thereafter. 

(2) For purposes of this section, other than subsection (h)—

(A) the term ‘‘personally identifiable information’’ does not 

include any record of aggregate data which does not identify 

particular persons; 

(B) the term ‘‘other service’’ includes any wire or radio communications service provided using any of the facilities of a 


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øcable operator¿ video service provider that are used in the 

provision of øcable service;¿ video service; and 

(C) the term ‘‘øcable operator¿ video service provider’’ includes, in addition to persons within the definition of øcable 

operator¿ video service provider in section 602, any person who 

(i) is owned or controlled by, or under common ownership or 

control with, a øcable operator,¿ video service provider, and (ii) 

provides any wire or radio communications service. 

(b)(1) Except as provided in paragraph (2), a øcable operator¿ 

video service provider shall not use the øcable¿ video service system 

to collect personally identifiable information concerning any subscriber without the prior written or electronic consent of the subscriber concerned. 

(2) A øcable operator¿ video service provider may use the øcable¿ 

video service system to collect such information in order to—

(A) obtain information necessary to render a øcable service¿ 

video service or other service provided by the øcable operator¿ 

video service provider to the subscriber; or 

(B) detect unauthorized reception of øcable¿ video service 

communications. 

(c)(1) Except as provided in paragraph (2), a øcable operator¿ 

video service provider shall not disclose personally identifiable information concerning any subscriber without the prior written or 

electronic consent of the subscriber concerned and shall take such 

actions as are necessary to prevent unauthorized access to such information by a person other than the subscriber or øcable operator.¿ video service provider. 

(2) A øcable operator¿ video service provider may disclose such 

information if the disclosure is—

(A) necessary to render, or conduct a legitimate business activity related to, a øcable service¿ video service or other service 

provided by the øcable operator¿ video service provider to the 

subscriber; 

(B) subject to subsection (h), made pursuant to a court order 

authorizing such disclosure, if the subscriber is notified of such 

order by the person to whom the order is directed; 

(C) a disclosure of the names and addresses of subscribers to 

any øcable service¿ video service or other service, if—

(i) the øcable operator¿ video service provider has provided the subscriber the opportunity to prohibit or limit 

such disclosure, and 

(ii) the disclosure does not reveal, directly or indirectly, 

the—

(I) extent of any viewing or other use by the subscriber of a øcable service¿ video service or other service provided by the øcable operator,¿ video service provider, or 

(II) the nature of any transaction made by the subscriber over the øcable¿ video service system of the 

øcable operator;¿ video service provider; or 

(D) to a government entity as authorized under chapters 119, 

121, or 206 of title 18, United States Code, except that such 

disclosure shall not include records revealing øcable¿ video 


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service subscriber selection of video programming from a øcable 

operator.¿ video service provider. 

(d) A øcable¿ video service subscriber shall be provided access to 

all personally identifiable information regarding that subscriber 

which is collected and maintained by a øcable operator.¿ video service provider. Such information shall be made available to the subscriber at reasonable times and at a convenient place designated by 

such øcable operator.¿ video service provider. A øcable¿ video service subscriber shall be provided reasonable opportunity to correct 

any error in such information. 

(e) A øcable operator¿ video service provider shall destroy personally identifiable information if the information is no longer necessary for the purpose for which it was collected and there are no 

pending requests or orders for access to such information under 

subsection (d) or pursuant to a court order. 

(f)(1) Any person aggrieved by any act of a øcable operator¿ video 

service provider in violation of this section may bring a civil action 

in a United States district court. 

(2) The court may award—

(A) actual damages but not less than liquidated damages 

computed at the rate of $100 a day for each day of violation 

or $1,000, whichever is higher; 

(B) punitive damages; and 

(C) reasonable attorneys’ fees and other litigation costs reasonably incurred. 

(3) The remedy provided by this section shall be in addition to 

any other lawful remedy available to a øcable¿ video service subscriber. 

(g) Nothing in this title shall be construed to prohibit any State 

or any franchising authority from enacting or enforcing laws consistent with this section for the protection of subscriber privacy. 

(h) Except as provided in subsection (c)(2)(D), a governmental entity may obtain personally identifiable information concerning a 

øcable¿ video service subscriber pursuant to a court order only if, 

in the court proceeding relevant to such court order—

(1) such entity offers clear and convincing evidence that the 

subject of the information is reasonably suspected of engaging 

in criminal activity and that the information sought would be 

material evidence in the case; and 

(2) the subject of the information is afforded the opportunity 

to appear and contest such entity’s claim. 

øSEC. 632. CONSUMER PROTECTION AND CUSTOMER SERVICE. 

ø47 U.S.C. 552¿ 

ø(a) FRANCHISING AUTHORITY ENFORCEMENT.—A franchising authority may establish and enforce—

ø(1) customer service requirements of the cable operator ; 

and 

ø(2) construction schedules and other construction-related requirements, including construction-related performance requirements, of the cable operator . 

ø(b) COMMISSION STANDARDS.—The Commission shall, within 180 

days of enactment of the Cable Television Consumer Protection and 

Competition Act of 1992, establish standards by which cable operaVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00284 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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tors may fulfill their customer service requirements. Such standards shall include, at a minimum, requirements governing— ø(1) cable system office hours and telephone availability; 

ø(2) installations, outages, and service calls; and 

ø(3) communications between the cable operator and the subscriber (including standards governing bills and refunds). 

ø(c) SUBSCRIBER NOTICE.—A cable operator may provide notice of 

service and rate changes to subscribers using any reasonable written means at its sole discretion. Notwithstanding section 623(b)(6) 

or any other provision of this Act, a cable operator shall not be required to provide prior notice of any rate change that is the result 

of a regulatory fee, franchise fee, or any other fee, tax, assessment, 

or charge of any kind imposed by any Federal agency, State, or 

franchising authority on the transaction between the operator and 

the subscriber. 

ø(d) CONSUMER PROTECTION LAWS AND CUSTOMER SERVICE

AGREEMENTS.— ø(1) CONSUMER PROTECTION LAWS.—Nothing in this title 

shall be construed to prohibit any State or any franchising authority from enacting or enforcing any consumer protection 

law, to the extent not specifically preempted by this title. 

ø(2) CUSTOMER SERVICE REQUIREMENT AGREEMENTS.—Nothing in this section shall be construed to preclude a franchising 

authority and a cable operator from agreeing to customer service requirements that exceed the standards established by the 

Commission under subsection (b). Nothing in this title shall be 

construed to prevent the establishment or enforcement of any 

municipal law or regulation, or any State law, concerning customer service that imposes customer service requirements that 

exceed the standards set by the Commission under this section, 

or that addresses matters not addressed by the standards set 

by the Commission under this section.¿ 

SEC. 632. CONSUMER PROTECTION AND CUSTOMER SERVICE. 

(a) REGULATIONS.— (1) IN GENERAL.—Not later than 120 days after the date of 

enactment of the Video Competition and Savings for Consumers 

Act of 2006, the Commission, after receiving comments from interested parties, including national associations representing 

franchising authorities or consumers, shall promulgate regulations, which shall include penalties to be paid to subscribers 

with respect to customer service and consumer protection requirements for video service providers. 

(2) EFFECTIVE DATE OF REGULATIONS.—The regulations required by subsection (a) shall take effect 60 days after the date 

on which a final rule is promulgated by the Commission. 

(b) MAXIMUM PENALTY FOR EARLY TERMINATION OF SUBSCRIPTION.—It is unlawful for a video service provider to charge a subscriber an amount in excess of 1 month’s subscription fee as a penalty or service charge for terminating a subscription to the video 

service provider’s service before the date on which the subscription 

term ends. 

(c) ENFORCEMENT.—The regulations promulgated by the Commission under subsection (a) and the provisions of subsection (b) shall 

be enforced by franchising authorities. A franchising authority may 


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refer a matter for enforcement to the State attorney general or the 

State consumer protection agency on a case-by-case basis. 

(d) REVIEW BY COMMISSION.—A video service provider may appeal 

any enforcement action taken against that provider by a franchising 

authority to the Commission. 

SEC. 633. UNAUTHORIZED RECEPTION OF øCABLE¿ VIDEO SERVICE. 

ø47 U.S.C. 553¿ 

(a)(1) No person shall intercept or receive or assist in intercepting or receiving any communications service offered over a 

øcable¿ video service system, unless specifically authorized to do so 

by a øcable operator¿ video service provider or as may otherwise be 

specifically authorized by law. 

(2) For the purpose of this section, the term ‘‘assist in intercepting or receiving’’ shall include the manufacture or distribution 

of equipment intended by the manufacturer or distributor (as the 

case may be) for unauthorized reception of any communications 

service offered over a øcable¿ video service system in violation of 

subparagraph (1). 

(b)(1) Any person who willfully violates subsection (a)(1) shall be fined not more than $1,000 or imprisoned for not more than 6 

months, or both. 

(2) Any person who violates subsection (a)(1) willfully and for 

purposes of commercial advantage or private financial gain shall be 

fined not more than $50,000 or imprisoned for not more than 2 

years, or both, for the first such offense and shall be fined not more 

than $100,000 or imprisoned for not more than 5 years, or both, for 

any subsequent offense. 

(3) For purposes of all penalties and remedies established for violations of subsection (a)(1), the prohibited activity established herein as it applies to each such device shall be deemed a separate violation. 

(c)(1) Any person aggrieved by any violation of subsection (a)(1) 

may bring a civil action in a United States district court or in any 

other court of competent jurisdiction. 

(2) The court may— (A) grant temporary and final injunctions on such terms as 

it may deem reasonable to prevent or restrain violations of 

subsection (a)(1); 

(B) award damages as described in paragraph (3); and 

(C) direct the recovery of full costs, including awarding reasonable attorneys’ fees to an aggrieved party who prevails. 

(3)(A) Damages awarded by any court under this section shall be 

computed in accordance with either of the following clauses: 

(i) the party aggrieved may recover the actual damages suffered by him as a result of the violation and any profits of the 

violator that are attributable to the violation which are not 

taken into account in computing the actual damages; in determining the violator’s profits, the party aggrieved shall be required to prove only the violator’s gross revenue, and the violator shall be required to prove his deductible expenses and the 

elements of profit attributable to factors other than the violation; or 

(ii) the party aggrieved may recover an award of statutory 

damages for all violations involved in the action, in a sum of 


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not less than $250 or more than $10,000 as the court considers 

just. 

(B) In any case in which the court finds that the violation was 

committed willfully and for purposes of commercial advantage or 

private financial gain, the court in its discretion may increase the 

award of damages, whether actual or statutory under subparagraph (A), by an amount of not more than $50,000. 

(C) In any case where the court finds that the violator was not 

aware and had no reason to believe that his acts constituted a violation of this section, the court in its discretion may reduce the 

award of damages to a sum of not less than $100. 

(D) Nothing in this title shall prevent any State or franchising 

authority from enacting or enforcing laws, consistent with this section, regarding the unauthorized interception or reception of any 

øcable service¿ video service or other communications service. 

SEC. 634. EQUAL EMPLOYMENT OPPORTUNITY. 

ø47 U.S.C. 554¿ 

(a) This section shall apply to any corporation, partnership, association, joint-stock company, or trust engaged primarily in the 

management or operation of any øcable¿ video service system. 

(b) Equal opportunity in employment shall be afforded by each 

entity specified in subsection (a), and no person shall be discriminated against in employment by such entity because of race, color, 

religion, national origin, age, or sex. 

(c) Any entity specified in subsection (a) shall establish, maintain, and execute a positive continuing program of specific practices 

designed to ensure equal opportunity in every aspect of its employment policies and practices. Under the terms of its program, each 

such entity shall— (1) define the responsibility of each level of management to 

ensure a positive application and vigorous enforcement of its 

policy of equal opportunity, and establish a procedure to review 

and control managerial and supervisory performance; 

(2) inform its employees and recognized employee organizations of the equal employment opportunity policy and program 

and enlist their cooperation; 

(3) communicate its equal employment opportunity policy 

and program and its employment needs to sources of qualified 

applicants without regard to race, color, religion, national origin, age, or sex, and solicit their recruitment assistance on a 

continuing basis; 

(4) conduct a continuing program to exclude every form of 

prejudice or discrimination based on race, color, religion, national origin, age, or sex, from its personnel policies and practices and working conditions; and 

(5) conduct a continuing review of job structure and employment practices and adopt positive recruitment, training, job design, and other measures needed to ensure genuine equality of 

opportunity to participate fully in all its organizational units, 

occupations, and levels of responsibility. 

(d)(1) Not later than 270 days after the date of enactment of the 

Cable Television Consumer Protection and Competition Act of 

1992, and after notice and opportunity for hearing, the Commission 

shall prescribe revisions in the rules under this section in order to 


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implement the amendments made to this section by such Act. Such 

revisions shall be designed to promote equality of employment opportunities for females and minorities in each of the job categories 

itemized in paragraph (3). 

(2) Such rules shall specify the terms under which an entity 

specified in subsection (a) shall, to the extent possible— (A) disseminate its equal opportunity program to job applicants, employees, and those with whom it regularly does business; 

(B) use minority organizations, organizations for women, 

media, educational institutions, and other potential sources of 

minority and female applicants, to supply referrals whenever 

jobs are available in its operation; 

(C) evaluate its employment profile and job turnover against 

the availability of minorities and women in its franchise area; 

(D) undertake to offer promotions of minorities and women 

to positions of greater responsibility; 

(E) encourage minority and female entrepreneurs to conduct 

business with all parts of its operation; and 

(F) analyze the results of its efforts to recruit, hire, promote, 

and use the services of minorities and women and explain any 

difficulties encountered in implementing its equal employment 

opportunity program. 

(3)(A) Such rules also shall require an entity specified in subsection (a) with more than 5 full-time employees to file with the 

Commission an annual statistical report identifying by race, sex, 

and job title the number of employees in each of the following fulltime and part-time job categories: 

(i) Corporate officers. 

(ii) General Manager. 

(iii) Chief Technician. 

(iv) Comptroller. 

(v) General Sales Manager. 

(vi) Production Manager. 

(vii) Managers. 

(viii) Professionals. 

(ix) Technicians. 

(x) Sales Personnel. 

(xi) Office and Clerical Personnel. 

(xii) Skilled Craftspersons. 

(xiii) Semiskilled Operatives. 

(xiv) Unskilled Laborers. 

(xv) Service Workers. 

(B) The report required by subparagraph (A) shall be made on 

separate forms, provided by the Commission, for full-time and parttime employees. The Commission’s rules shall sufficiently define 

the job categories listed in clauses (i) through (vi) of such subparagraph so as to ensure that only employees who are principal decisionmakers and who have supervisory authority are reported for 

such categories. The Commission shall adopt rules that define the 

job categories listed in clauses (vii) through (xv) in a manner that 

is consistent with the Commission policies in effect on June 1, 

1990. The Commission shall prescribe the method by which entities 

shall be required to compute and report the number of minorities 


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and women in the job categories listed in clauses (i) through (x) 

and the number of minorities and women in the job categories listed in clauses (i) through (xv) in proportion to the total number of 

qualified minorities and women in the relevant labor market. The 

report shall include information on hiring, promotion, and recruitment practices necessary for the Commission to evaluate the efforts 

of entities to comply with the provisions of paragraph (2) of this 

subsection. The report shall be available for public inspection at 

the entity’s central location and at every location where 5 or more 

full-time employees are regularly assigned to work. Nothing in this 

subsection shall be construed as prohibiting the Commission from 

collecting or continuing to collect statistical or other employment 

information in a manner that it deems appropriate to carry out this 

section. 

(4) The Commission may amend such rules from time to time to 

the extent necessary to carry out the provisions of this section. Any 

such amendment shall be made after notice and opportunity for 

comment. 

(e)(1) On an annual basis, the Commission shall certify each entity described in subsection (a) as in compliance with this section if, 

on the basis of information in the possession of the Commission, including the report filed pursuant to subsection (d)(3), such entity 

was in compliance, during the annual period involved, with the requirements of subsections (b), (c), and (d). 

(2) The Commission shall, periodically but not less frequently 

than every five years, investigate the employment practices of each 

entity described in subsection (a), in the aggregate, as well as in 

individual job categories, and determine whether such entity is in 

compliance with the requirements of subsections (b), (c), and (d), 

including whether such entity’s employment practices deny or 

abridge women and minorities equal employment opportunities. As 

part of such investigation, the Commission shall review whether 

the entity’s reports filed pursuant to subsection (d)(3) accurately reflect employee responsibilities in the reported job classification. 

(f)(1) If the Commission finds after notice and hearing that the 

entity involved has willfuly or repeatedly without good cause failed 

to comply with the requirements of this section, such failure shall 

constitute a substantial failure to comply with this title. The failure to obtain certification under subsection (e) shall not itself constitute the basis for a determination of substantial failure to comply with this title. For purposes of this paragraph, the term ‘‘repeatedly’’, when used with respect to failures to comply, refers to 

3 or more failures during any 7-year period. 

(2) Any person who is determined by the Commission, through 

an investigation pursuant to subsection (e) or otherwise, to have 

failed to meet or failed to make best efforts to meet the requirements of this section, or rules under this section, shall be liable to 

the United States for a forefeiture penalty of $500 for each violation. Each day of a continuing violation shall constitute a separate 

offense. Any entity defined in subsection (a) shall not be liable for 

more than 180 days of forfeitures which accrued prior to notification by the Commission of a potential violation. Nothing in this 

paragraph shall limit the forfeiture imposed on any person as a result of any violation that continues subsequent to such notification. 


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In addition, any person liable for such penalty may also have any 

license under this Act for øcable¿ video service auxiliary relay service suspended until the Commission determines that the failure involved has been corrected. Whoever knowingly makes any false 

statement or submits documentation which he knows to be false, 

pursuant to an application for certification under this section shall 

be in violation of this section. 

(3) The provisions of paragraphs (3) and (4), and the last 2 sentences of paragraph (2), of section 503(b) shall apply to forfeitures 

under this subsection. 

(4) The Commission shall provide for notice to the public and appropriate franchising authorities of any penalty imposed under this 

section. 

(g) Employees or applicants for employment who believe they 

have been discriminated against in violation of the requirements of 

this section, or rules under this section, or any other interested 

person, may file a complaint with the Commission. A complaint by 

any such person shall be in writing, and shall be signed and sworn 

to by that person. The regulations under subsection (d)(1) shall 

specify a program, under authorities otherwise available to the 

Commission, for the investigation of complaints and violations, and 

for the enforcement of this section. 

(h)(1) For purposes of this section, the term ‘‘øcable operator¿ 

video service provider’’ includes any øoperator¿ provider of any satellite master antenna television system, including a system described in section 602(7)(A) and any multichannel video programming distributor. 

(2) Such term does not include any øoperator¿ provider of a system which, in the aggregate, serves fewer than 50 subscribers. 

(3) In any case in which a øcable operator¿ video service provider 

is the owner of a multiple unit dwelling, the requirements of this 

section shall only apply to such øcable operator¿ video service provider with respect to its employees who are primarily engaged in 

øcable¿ video service telecommunications. 

(i)(1) Nothing in this section shall affect the authority of any 

State or any franchising authority—

(A) to establish or enforce any requirement which is consistent with the requirements of this section, including any requirement which affords equal employment opportunity protection for employees; 

(B) to establish or enforce any provision requiring or encouraging any øcable operator¿ video service provider to conduct 

business with enterprises which are owned or controlled by 

members of minority groups (as defined in section 

309(i)(3)(C)(ii) or which have their principal operations located 

within the community served by the øcable operator;¿ video 

service provider; or 

(C) to enforce any requirement of a franchise in effect on the 

effective date of this title. 

(2) The remedies and enforcement provisions of this section are 

in addition to, and not in lieu of, those available under this or any 

other law. 

(3) The provisions of this section shall apply to any øcable operator,¿ video service provider, whether operating pursuant to a franVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00290 Fmt 6604 Sfmt 6601 E:\HR\OC\SR355.XXX SR355

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chise granted before, on, or after the date of the enactment of this 

section. 

SEC. 635. JUDICIAL PROCEEDINGS. 

ø47 U.S.C. 555¿ 

(a) Any øcable operator¿ video service provider adversely affected 

by any final determination made by a franchising authority under 

section 621(a)(1), 625 or 626 may commence an action within 120 

days after receiving notice of such determination, which may be 

brought in—

(1) the district court of the United States for any judicial district in which the øcable¿ video service system is located; or 

(2) in any State court of general jurisdiction having jurisdiction over the parties. 

(b) The court may award any appropriate relief consistent with 

the provisions of the relevant section described in subsection (a) 

and with the provisions of subsection (a). 

(c)(1) Notwithstanding any other provision of law, any civil action 

challenging the constitutionality of section 614 or 615 of this Act 

or any provision thereof shall be heard by a district court of three 

judges convened pursuant to the provisions of section 2284 of title 

28, United States Code. 

(2) Notwithstanding any other provision of law, an interlocutory 

or final judgment, decree, or order of the court of three judges in 

an action under paragraph (1) holding section 614 or 615 of this 

Act or any provision thereof unconstitutional shall be reviewable as 

a matter of right by direct appeal to the Supreme Court. Any such 

appeal shall be filed not more than 20 days after entry of such 

judgment, decree, or order.A 

SEC. ø635A.¿ 636 LIMITATION OF FRANCHISING AUTHORITY LIABILITY. 

ø47 U.S.C. 555a¿ 

(a) SUITS FOR DAMAGES PROHIBITED.—In any court proceeding 

pending on or initiated after the date of enactment of this section 

involving any claim against a franchising authority or other governmental entity, or any official, member, employee, or agent of 

such authority or entity, arising from the regulation of øcable service¿ video service or from a decision of approval or disapproval with 

respect to a grant, renewal, transfer, or amendment of a franchise, 

any relief, to the extent such relief is required by any other provision of Federal, State, or local law, shall be limited to injunctive 

relief and declaratory relief. 

(b) EXCEPTION FOR COMPLETED CASES.—The limitation contained 

in subsection (a) shall not apply to actions that, prior to such violation, have been determined by a final order of a court of binding 

jurisdiction, no longer subject to appeal, to be in violation of a 

øcable operator’s¿ video service provider’s rights. 

(c) DISCRIMINATION CLAIMS PERMITTED.—Nothing in this section 

shall be construed as limiting the relief authorized with respect to 

any claim against a franchising authority or other governmental 

entity, or any official, member, employee, or agent of such authority or entity, to the extent such claim involves discrimination on 

the basis of race, color, sex, age, religion, national origin, or handicap. 


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(d) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed as creating or authorizing liability of any kind, under 

any law, for any action or failure to act relating to øcable service¿ 

video service or the granting of a franchise by any franchising authority or other governmental entity, or any official, member, employee, or agent of such authority or entity. 

øSEC. 636. COORDINATION OF FEDERAL, STATE, AND LOCAL AUTHORITY. 

ø47 U.S.C. 556¿ 

ø(a) Nothing in this title shall be construed to affect any authority of any State, political subdivision, or agency thereof, or franchising authority, regarding matters of public health, safety, and 

welfare, to the extent consistent with the express provisions of this 

title. 

ø(b) Nothing in this title shall be construed to restrict a State 

from exercising jurisdiction with regard to cable services consistent 

with this title. 

ø(c) Except as provided in section 637, any provision of law of 

any State, political subdivision, or agency thereof, or franchising 

authority, or any provision of any franchise granted by such authority, which is inconsistent with this Act shall be deemed to be 

preempted and superseded. 

ø(d) For purposes of this section, the term ‘‘State’’ has the meaning given such term in section 3. 

øSEC. 637. EXISTING FRANCHISES. 

ø47 U.S.C. 557¿ 

ø(a) The provisions of—

ø(1) any franchise in effect on the effective date of this title, 

including any such provisions which relate to the designation, 

use, or support for the use of channel capacity for public, educational, or governmental use, and 

ø(2) any law of any State (as defined in section 3) in effect 

on the date of the enactment of this section, or any regulation 

promulgated pursuant to such law, which relates to such designation, use or support of such channel capacity, 

shall remain in effect, subject to the express provisions of this title, 

and for not longer than the then current remaining term of the 

franchise as such franchise existed on such effective date. 

ø(b) For purposes of subsection (a) and other provisions of this 

title, a franchise shall be considered in effect on the effective date 

of this title if such franchise was granted on or before such effective 

date.¿ 

SEC. ø638.¿ 637. CRIMINAL AND CIVIL LIABILITY. 

ø47 U.S.C. 558¿ 

Nothing in this title shall be deemed to affect the criminal or 

civil liability of øcable¿ video service programmers or øcable operators¿ video service providers pursuant to the Federal, State, or local 

law of libel, slander, obscenity, incitement, invasions of privacy, 

false or misleading advertising, or other similar laws, except that 

øcable operators¿ video service providers shall not incur any such 

liability for any program carried on any channel designated for 

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tained under section 612 or under similar arrangements unless the 

program involves obscene material. 

SEC. ø639.¿ 638. OBSCENE PROGRAMMING. 

ø47 U.S.C. 559¿ 

Whoever transmits over any øcable¿ video service system any 

matter which is obscene or otherwise unprotected by the Constitution of the United States shall be fined under title 18, United 

States Code, or imprisoned not more than 2 years, or both. 

SEC. ø640.¿ 639. SCRAMBLING OF øCABLE¿ VIDEO CHANNELS FOR NONSUBSCRIBERS. 

ø47 U.S.C. 560¿ 

(a) SUBSCRIBER REQUEST.—Upon request by a øcable service¿ 

video service subscriber, a øcable operator¿ video service provider 

shall, without charge, fully scramble or otherwise fully block the 

audio and video programming of each channel carrying such programming so that one not a subscriber does not receive it. 

(b) DEFINITION.—As used in this section, the term ‘‘scramble’’ means to rearrange the content of the signal of the programming 

so that the programming cannot be viewed or heard in an understandable manner. 

SEC. ø641.¿ 640. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO 

SERVICE PROGRAMMING. 

ø47 U.S.C. 561¿ 

(a) REQUIREMENT.—In providing sexually explicit adult programming or other programming that is indecent on any channel of its 

service primarily dedicated to sexually-oriented programming, a 

multichannel video programming distributor shall fully scramble or 

otherwise fully block the video and audio portion of such channel 

so that one not a subscriber to such channel or programming does 

not receive it. 

(b) IMPLEMENTATION.—Until a multichannel video programming 

distributor complies with the requirement set forth in subsection 

(a), the distributor shall limit the access of children to the programming referred to in that subsection by not providing such programming during the hours of the day (as determined by the Commission) when a significant number of children are likely to view it. 

(c) DEFINITION.—As used in this section, the term ‘‘scramble’’ means to rearrange the content of the signal of the programming 

so that the programming cannot be viewed or heard in an understandable manner. 

SEC. 641. REDLINING. 

(a) IN GENERAL.—A video service provider may not deny access to 

its video service to any group of potential residential video service 

subscribers because of the income, race, or religion of that group. 

(b) ENFORCEMENT.— (1) STATE ATTORNEY GENERAL ENFORCEMENT.—This section 

may be enforced by the State attorney general through a complaint-initiated adjudication process under which a complaint 

may be filed by a resident of the franchising area who is aggrieved by a violation of subsection (a) or by a franchising authority on behalf of residents of its franchise area. Within 180 

days after receiving the resident’s or franchising authority’s 

complaint, a State attorney general shall act on such a comVerDate Aug 31 2005 00:53 Oct 05, 2006 Jkt 049010 PO 00000 Frm 00293 Fmt 6604 Sfmt 6603 E:\HR\OC\SR355.XXX SR355

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plaint either by filing a complaint with a court of competent jurisdiction or notifying the resident or franchising authority that 

the State attorney general will not file such a complaint. 

(2) EVALUATION OF COMPLAINT.—The totality of the video 

service provider’s deployments in its service areas shall be considered in any adjudication pursuant to an enforcement action 

under this subsection. 

(c) REMEDIES.—If a court determines that a video service provider 

has violated subsection (a) it—

(1) shall ensure that the video service provider remedies any 

violation of subsection (a); and 

(2) may assess a civil penalty in such amount as may be authorized under State law for the franchising area in which the 

violation occurred for violation of that State’s antidiscrimination laws. 

(d) LIMITATIONS.—

(1) NATURAL AND TECHNOLOGICAL BARRIERS.—It is not a violation of subsection (a) if video service is denied because technical feasibility, commercial feasibility, operational limitations, 

or physical barriers preclude the effective provision of video 

service. 

(2) QUOTAS, GOALS, OR TIMETABLES.—Nothing in this section 

authorizes the use of quotas, goals, or timetables as a remedy. 

(e) REPORTS.—

(1) ANNUAL REPORTS TO COMMISSION.—Beginning 3 years 

after the date of enactment of the Video Competition and Savings for Consumers Act of 2006, each franchising authority 

shall report to the Commission on video service provider deployment in its franchise area. The Commission shall develop and 

make available to franchising authorities a standardized, electronic data-based, report form to be used in complying with the 

requirements of this paragraph. A video service provider shall 

provide such information to the franchising authority as is 

needed to complete the report. 

(2) COMMISSION REPORT TO CONGRESS.—Beginning 4 years 

after the date of enactment of the Video Competition and Savings for Consumers Act of 2006, and every 4 years thereafter, 

the Commission shall report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Energy and Commerce on the buildout of 

video service. 

SEC. 642. IP-ENABLED VIDEO SERVICE. 

(a) IN GENERAL.—Notwithstanding any other provision of law, IPenabled video service is an interstate service and is subject only to 

Federal regulations. 

(b) IP-ENABLED VIDEO SERVICE DEFINED.—In this section, the 

term ‘‘IP-enabled video service’’ means a video service provided over 

the public Internet utilizing Internet protocol, or any successor protocol that is not offered by, or not offered as part of a package of 

video services offered by, a video service provider or its affiliate. 

(c) COMMISSION AUTHORITY.—The commission may not impose 

any rule on, apply any regulation to, or otherwise regulate the offering or provision of IP-enabled video service. 


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(d) LAW ENFORCEMENT.—Nothing in this section shall be construed to interfere with any lawful activity of a law enforcement 

agency or to limit the application of any law the violation of which 

is punishable by a fine, imprisonment, or both. 

(e) NO EFFECT ON TAX LAWS.—Nothing in this section shall be 

construed to modify, impair, supersede, or authorize the modification, impairment, or supersession of, any State or local tax law. 

TITLE VII—MISCELLANEOUS PROVISIONS 

SEC. 705. UNAUTHORIZED PUBLICATION OR USE OF COMMUNICATIONS. 

[47 U.S.C. 605] 

(a) PRACTICES PROHIBITED.—Except as authorized by chapter 

119, title 18, United States Code, no person receiving, assisting in 

receiving, transmitting, or assisting in transmitting, any interstate 

or foreign communication by wire or radio shall divulge or publish 

the existence, contents, substance, purport, effect, or meaning 

thereof, except through authorized channels of transmission or reception, (1) to any person other than the addressee, his agent, or 

attorney, (2) to a person employed or authorized to forward such 

communication to its destination, (3) to proper accounting or distributing officers of the various communicating centers over which 

the communication may be passed, (4) to the master of a ship 

under whom he is serving, (5) in response to a subpena issued by 

a court of competent jurisdiction, or (6) on demand of other lawful 

authority. No person not being authorized by the sender shall 

intercept any radio communication and divulge or publish the existence, contents, substance, purport, effect, or meaning of such 

intercepted communication to any person. No person not being entitled thereto shall receive or assist in receiving any interstate or 

foreign communication by radio and use such communication (or 

any information therein contained) for his own benefit or for the 

benefit of another not entitled thereto. No person having received 

any intercepted radio communication or having become acquainted 

with the contents, substance, purport, effect, or meaning of such 

communication (or any part thereof) knowing that such communication was intercepted, shall divulge or publish the existence, 

contents, substance, purport, effect, or meaning of such communication (or any part thereof) or use such communication (or any information therein contained) for his own benefit or for the benefit of 

another not entitled thereto. This section shall not apply to the receiving, divulging, publishing, or utilizing the contents of any radio 

communication which is transmitted by any station for the use of 

the general public, which relates to ships, aircraft, vehicles, or persons in distress, or which is transmitted by an amateur radio station operator or by a citizens band radio operator 

(b) EXCEPTIONS.—The provisions of subsection (a) shall not apply 

to the interception or receipt by any individual, or the assisting (including the manufacture or sale) of such interception or receipt, of 

any satellite cable programming for private viewing if—

(1) the programming involved is not encrypted; and 

(2)(A) a marketing system is not established under which—


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(i) an agent or agents have been lawfully designated for 

the purpose of authorizing private viewing by individuals, 

and 

(ii) such authorization is available to the individual involved from the appropriate agent or agents; or 

(B) a marketing system described in subparagraph (A) is established and the individuals receiving such programming has 

obtained authorization for private viewing under that system. 

(c) SCRAMBLING OF PUBLIC BROADCASTING SERVICE PROGRAMMING.—No person shall encrypt or continue to encrypt satellite delivered programs included in the National Program Service of the 

Public Broadcasting Service and intended for public viewing by retransmission by television broadcast stations; except that as long 

as at least one unencrypted satellite transmission of any program 

subject to this subsection is provided, this subsection shall not prohibit additional encrypted satellite transmissions of the same program. 

(d) DEFINITIONS.—For purposes of this section—

(1) the term ‘‘satellite cable programming’’ means video programming which is transmitted via satellite and which is primarily intended for the direct receipt by øcable operators for 

their retransmission to cable subscribers;¿ cable operators or 

video service providers (as defined in section 602 of this Act) for 

their retransmission to subscribers; 

(2) the term ‘‘agent’’, with respect to any person, includes an 

employee of such person; 

(3) the term ‘‘encrypt’’, when used with respect to satellite 

cable programming, means to transmit such programming in a 

form whereby the aural and visual characteristics (or both) are 

modified or altered for the purpose of preventing the unauthorized receipt of such programming by persons without authorized equipment which is designed to eliminate the effects of 

such modification or alteration; 

(4) the term ‘‘private viewing’’ means the viewing for private 

use in an individual’s dwelling unit by means of equipment, 

owned or operated by such individual, capable of receiving satellite cable programming directly from a satellite; 

(5) the term ‘‘private financial gain’’ shall not include the 

gain resulting to any individual for the private use in such individual’s dwelling unit of any programming for which the individual has not obtained authorization for that use; and 

(6) the term ‘‘any person aggrieved’’ shall include any person 

with proprietary rights in the intercepted communication by 

wire or radio, including wholesale or retail distributors of satellite cable programming, and, in the case of a violation of 

paragraph (4) of subsection (e), shall also include any person 

engaged in the lawful manufacture, distribution, or sale of 

equipment necessary to authorize or receive satellite cable programming. 

(e) PENALTIES; CIVIL ACTIONS; REMEDIES; ATTORNEY’S FEES AND

COSTS; COMPUTATION OF DAMAGES; REGULATION BY STATE AND

LOCAL AUTHORITIES.—


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(1) Any person who willfully violates subsection (a) shall be fined not more than $2,000 or imprisoned for not more than 6 

months, or both. 

(2) Any person who violates subsection (a) willfully and for 

purposes of direct or indirect commercial advantage or private 

financial gain shall be fined not more than $50,000 or imprisoned for not more than 2 years, or both, for the first such conviction and shall be fined not more than $100,000 or imprisoned for not more than 5 years, or both, for any subsequent 

conviction. 

(3)(A) Any person aggrieved by any violation of subsection (a) 

or paragraph (4) of this subsection may bring a civil action in 

a United States district court or in any other court of competent jurisdiction. 

(B) The court— (i) may grant temporary and final injunctions on 

such terms as it may deem reasonable to prevent or 

restrain violations of subsection (a); 

(ii) may award damages as described in subparagraph 

(C); and 

(iii) shall direct the recovery of full costs, including 

awarding reasonable attorneys’ fees to an aggrieved party 

who prevails. 

(C)(i) Damages awarded by any court under this section shall 

be computed, at the election of the aggrieved party, in accordance with either of the following subclauses; 

(I) the party aggrieved may recover the actual damages 

suffered by him as a result of the violation and any profits 

of the violator that are attributable to the violation which 

are not taken into account in computing the actual damages; in determining the violator’s profits, the party aggrieved shall be required to prove only the violator’s gross 

revenue, and the violator shall be required to prove his deductible expenses and the elements of profit attributable to 

factors other than the violation; or 

(II) the party aggrieved may recover an award of statutory damages for each violation of subsec. (a) involved in 

the action in a sum of not less than $1,000 or more than 

$10,000, as the court considers just, and for each violation 

of paragraph (4) of this subsection involved in the action 

an aggrieved party may recover statutory damages in a 

sum not less than $10,000, or more than $100,000, as the 

court considers just. 

(ii) In any case in which the court finds that the violation 

was committed willfully and for purposes of direct or indirect 

commercial advantage or private financial gain, the court in its 

discretion may increase the award of damages, whether actual 

or statutory, by an amount of not more than $100,000 for each 

violation of subsection (a). 

(iii) In any case where the court finds that the violator was 

not aware and had no reason to believe that his acts constituted a violation of this section, the court in its discretion 

may reduce the award of damages to a sum of not less than 

$250. 


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(4) Any person who manufactures, assembles, modifies, imports, exports, sells, or distributes any electronic, mechanical, 

or other device or equipment, knowing or having reason to 

know that the device or equipment is primarily of assistance 

in the unauthorized decryption of satellite cable programming, 

or direct-to-home satellite services, or is intended for any other 

activity prohibited by subsection (a), shall be fined not more 

than $500,000 for each violation, or imprisoned for not more 

than 5 years for each violation, or both. For purposes of all 

penalties and remedies established for violations of this paragraph, the prohibited activity established herein as it applies 

to each such device shall be deemed a separate violation. 

(5) The penalties under this subsection shall be in addition 

to those prescribed under any other provision of this title. 

(6) Nothing in this subsection shall prevent any State, or political subdivision thereof, from enacting or enforcing any laws 

with respect to the importation, sale, manufacture, or distribution of equipment by any person with the intent of its use to 

assist in the interception or receipt of radio communications 

prohibited by subsection (a). 

(f) RIGHTS, OBLIGATIONS, AND LIABILITIES UNDER OTHER LAWS

UNAFFECTED.—Nothing in this section shall affect any right, obligation, or liability under title 17, United States Code, any rule, regulation, or order thereunder, or any other applicable Federal, State, 

or local law. 

(g) UNIVERSAL ENCRYPTION STANDARD.—The Commission shall 

initiate an inquiry concerning the need for a universal encryption 

standard that permits decryption of satellite cable programming intended for private viewing. In conducting such inquiry, the Commission shall take into account— (1) consumer costs and benefits of any such standard, including consumer investment in equipment in operation; 

(2) incorporation of technological enhancements, including 

advanced television formats; 

(3) whether any such standard would effectively prevent 

present and future unauthorized decryption of satellite cable 

programming; 

(4) the costs and benefits of any such standard on other authorized users of encrypted satellite cable programming, including cable systems and satellite master antenna television 

systems; 

(5) the effect of any such standard on competition in the 

manufacture of decryption equipment; and 

(6) the impact of the time delay associated with the Commission procedures necessary for establishment of such standards. 

(h) RULEMAKING FOR ENCRYPTION STANDARD.—If the Commission 

finds, based on the information gathered from the inquiry required 

by subsection (g), that a universal encryption standard is necessary 

and in the public interest, the Commission shall initiate a rulemaking to establish such a standard. 

SEC. 712. SYNDICATED EXCLUSIVITY. 

[47 U.S.C. 612] 

(a) The Federal Communications Commission shall initiate a 

combined inquiry and rulemaking proceeding for the purpose of—


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(1) determining the feasibility of imposing syndicated exclusivity rules with respect to the delivery of syndicated programming (as defined by the Commission) for private home viewing 

of secondary transmissions by satellite of broadcast station signals similar to the rules issued by the Commission with respect to syndicated exclusivity øand cable television;¿ cable television, and video service (as defined in section 602 of this Act); 

and 

(2) adopting such rules if the Commission considers the imposition of such rules to be feasible. 

(b) In the event that the Commission adopts such rules, any willful and repeated secondary transmission made by a satellite carrier 

to the public of a primary transmission embodying the performance 

or display of a work which violates such Commission rules shall be 

subject to the remedies, sanctions, and penalties provided by title 

V and section 705 of this Act. 

SEC. 714. TELECOMMUNICATIONS DEVELOPMENT FUND. 

[47 U.S.C. 614] 

(a) PURPOSE OF SECTION.—It is the purpose of this section— (1) to promote access to capital for small businesses in order 

to enhance competition in the telecommunications industry; 

(2) to stimulate new technology development, and promote 

employment and training; and 

(3) to support universal service and promote delivery of telecommunications services to underserved rural and urban 

areas. 

(b) ESTABLISHMENT OF FUND.—There is hereby established a 

body corporate to be known as the Telecommunications Development Fund, which shall have succession until dissolved. The Fund 

shall maintain its principal office in the District of Columbia and 

shall be deemed, for purposes of venue and jurisdiction in civil actions, to be a resident and citizen thereof. 

(c) BOARD OF DIRECTORS.— (1) COMPOSITION OF BOARD; CHAIRMAN.—The Fund shall 

have a Board of Directors which shall consist of 7 persons appointed by the Chairman of the Commission. Four of such directors shall be representative of the private sector and three 

of such directors shall be representative of the Commission, 

the Small Business Administration, and the Department of the 

Treasury, respectively. The Chairman of the Commission shall 

appoint one of the representatives of the private sector to serve 

as chairman of the Fund within 30 days after the date of enactment of this section, in order to facilitate rapid creation and 

implementation of the Fund. The directors shall include members with experience in a number of the following areas: finance, investment banking, government banking, communications law and administrative practice, and public policy. 

(2) TERMS OF APPOINTED AND ELECTED MEMBERS.—The directors shall be eligible to serve for terms of 5 years, except of the 

initial members, as designated at the time of their appointment—

(A) 1 shall be eligible to service for a term of 1 year; 

(B) 1 shall be eligible to service for a term of 2 years; 

(C) 1 shall be eligible to service for a term of 3 years; 


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(D) 2 shall be eligible to service for a term of 4 years; 

and 

(E) 2 shall be eligible to service for a term of 5 years (1 

of whom shall be the Chairman).Directors may continue to 

serve until their successors have been appointed and have 

qualified. 

(3) MEETINGS AND FUNCTIONS OF THE BOARD.—The Board of 

Directors shall meet at the call of its Chairman, but at least 

quarterly. The Board shall determine the general policies 

which shall govern the operations of the Fund. The Chairman 

of the Board shall, with the approval of the Board, select, appoint, and compensate qualified persons to fill the offices as 

may be provided for in the bylaws, with such functions, powers, and duties as may be prescribed by the bylaws or by the 

Board of Directors, and such persons shall be the officers of the 

Fund and shall discharge all such functions, powers, and duties. 

(d) ACCOUNTS OF FUND.—The Fund shall maintain its accounts 

at a financial institution designated for purposes of this section by 

the Chairman of the Board (after consultation with the Commission and the Secretary of the Treasury). The accounts of the Fund 

shall consist of— (1) interest transferred pursuant to section 309(j)(8)(C) of 

this Act; 

(2) such sums as may be appropriated to the Commission for 

advances to the Fund; 

(3) any contributions or donations to the Fund that are accepted by the Fund; and 

(4) any repayment of, or other payment made with respect 

to, loans, equity, or other extensions of credit made from the 

Fund. 

(e) USE OF FUND.—All moneys deposited into the accounts of the 

Fund shall be used solely for— (1) the making of loans, investments, or other extensions of 

credits to eligible small businesses in accordance with subsection (f); 

(2) the provision of financial advice to eligible small businesses; 

(3) expenses for the administration and management of the 

Fund (including salaries, expenses, and the rental or purchase 

of office space for the fund); 

(4) preparation of research, studies, or financial analyses; 

and 

(5) other services consistent with the purposes of this section. 

(f) LENDING AND CREDIT OPERATIONS.—Loans or other extensions 

of credit from the Fund shall be made available to an eligible small 

business on the basis of—

(1) the analysis of the business plan of the eligible small 

business; 

(2) the reasonable availability of collateral to secure the loan 

or credit extension; 

(3) the extent to which the loan or credit extension promotes 

the purposes of this section; and 


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(4) other lending policies as defined by the Board. 

(g) RETURN OF ADVANCES.—Any advances appropriated pursuant 

to subsection (d)(2) shall be disbursed upon such terms and conditions (including conditions relating to the time or times of repayment) as are specified in any appropriations Act providing such advances. 

(h) GENERAL CORPORATE POWERS.—The Fund shall have power— (1) to sue and be sued, complain and defend, in its corporate 

name and through its own counsel; 

(2) to adopt, alter, and use the corporate seal, which shall be 

judicially noticed; 

(3) to adopt, amend, and repeal by its Board of Directors, bylaws, rules, and regulations as may be necessary for the conduct of its business; 

(4) to conduct its business, carry on its operations, and have 

officers and exercise the power granted by this section in any 

State without regard to any qualification or similar statute in 

any State; 

(5) to lease, purchase, or otherwise acquire, own, hold, improve, use, or otherwise deal in and with any property, real, 

personal, or mixed, or any interest therein, wherever situated, 

for the purposes of the Fund; 

(6) to accept gifts or donations of services, or of property, 

real, personal, or mixed, tangible or intangible, in aid of any 

of the purposes of the Fund; 

(7) to sell, convey, mortgage, pledge, lease, exchange, and 

otherwise dispose of its property and assets; 

(8) to appoint such officers, attorneys, employees, and agents 

as may be required, to determine their qualifications, to define 

their duties, to fix their salaries, require bonds for them, and 

fix the penalty thereof; and 

(9) to enter into contracts, to execute instruments, to incur 

liabilities, to make loans and equity investment, and to do all 

things as are necessary or incidental to the proper management of its affairs and the proper conduct of its business. 

(i) ACCOUNTING, AUDITING, AND REPORTING.—The accounts of the 

Fund shall be audited annually. Such audits shall be conducted in 

accordance with generally accepted auditing standards by independent certified public accountants. A report of each such audit 

shall be furnished to the Secretary of the Treasury and the Commission. The representatives of the Secretary and the Commission 

shall have access to all books, accounts, financial records, reports, 

files, and all other papers, things, or property belonging to or in 

use by the Fund and necessary to facilitate the audit. 

(j) REPORT ON AUDITS BY TREASURY.—A report of each such audit 

for a fiscal year shall be made by the Secretary of the Treasury to 

the President and to the Congress not later than 6 months following the close of such fiscal year. The report shall set forth the 

scope of the audit and shall include a statement of assets and liabilities, capital and surplus or deficit; a statement of surplus or 

deficit analysis; a statement of income and expense; a statement of 

sources and application of funds; and such comments and information as may be deemed necessary to keep the President and the 

Congress informed of the operations and financial condition of the 


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Fund, together with such recommendations with respect thereto as 

the Secretary may deem advisable. 

(k) DEFINITIONS.—As used in this section: 

(1) ELIGIBLE SMALL BUSINESS.—The term ‘‘eligible small 

business’’ means business enterprises engaged in the tele- communications industry that have $50,000,000 or less in annual revenues, on average over the past 3 years prior to submitting the application under this section. 

(2) FUND.—The term ‘‘Fund’’ means the Telecommunications 

Development Fund established pursuant to this section. 

(3) TELECOMMUNICATIONS INDUSTRY.—The term ‘‘telecommunications industry’’ means communications businesses 

using regulated or unregulated facilities or services and includes broadcasting, telecommunications, cable, video service, 

computer, data transmission, software, programming, advanced messaging, and electronics businesses. 

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

PROVIDERS. 

(a) IN GENERAL.—A facilities-based IP-enabled voice service provider shall have the same rights, duties, and obligations, including 

any obligation imposed under section 276, as a requesting telecommunications carrier under sections 251 and 252, if the provider 

elects to assert such rights. A telecommunications carrier may not 

refuse to transport or terminate IP-enabled voice traffic solely on the 

basis that it is IP-enabled. A provider originating, transmitting, or 

terminating IP-enabled voice traffic shall not be exempted from paying compensation for interstate traffic owed to another provider or 

carrier solely on the basis that such traffic is IP-enabled, and any 

obligations to pay compensation with respect to traffic that originates or terminates on the public switched telephone network shall 

be reciprocal, including any payment to an IP-enabled voice service 

provider that receives traffic from, or sends traffic to, the public 

switched telephone network. 

(b) DISABLED ACCESS.—An IP-enabled voice service provider or a 

manufacturer of IP-enabled voice service equipment shall have the 

same rights, duties, and obligations as a telecommunications carrier 

or telecommunications equipment manufacturer, respectively, under 

sections 225, 255, and 710 of the Act. Within 1 year after the date 

of enactment of the Internet and Universal Service Act of 2006, the 

Commission, in consultation with the Architectural and Transportation Barriers Compliance Board, shall prescribe such regulations 

as are necessary to implement this section. In prescribing the regulations, the Commission shall take into account the differences between IP-enabled voice service and circuit-switched communications, and the functionalities required by the disabled community. 

Every 2 years after the date of enactment of the Internet and Universal Service Act of 2006, the Commission shall submit a report to 

the Committee on Commerce, Science, and Transportation of the 

Senate and the Committee on Energy and Commerce of the House 

of Representatives that assesses the level of compliance with this section and evaluates the extent to which any accessibility barriers still 

exist with respect to new technologies and hearing aid compatibility. 

(c) IP-ENABLED EMERGENCY RESPONSE SYSTEMS.—Prior to installation or activation of an IP-enabled voice service for a customer, an 


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IP-enabled voice service provider shall provide clear and conspicuous notice to the customer that— (1) such customer should arrange with his or her emergency 

response system provider, if any, to test such system after installation; 

(2) such customer should notify his or her emergency response 

system provider as soon as the IP-enabled voice service is installed; and 

(3) a battery backup may be required for customer premises 

equipment installed in connection with the IP-enabled voice 

service in order for the signaling of such system to function in 

the event of a power outage. 

(e) NO EFFECT ON TAX LAWS.—Nothing in this section shall be 

construed to modify, impair, supersede, or authorize the modification, impairment, or supersession of, any State or local tax law. 

(f) DEFINITIONS.—In this section: 

(1) EMERGENCY RESPONSE SYSTEM.—The term ‘‘emergency response system’’ means an alarm or security system, or personal 

security or medical monitoring system, that is connected to an 

emergency response center by means of a telecommunications 

carrier or IP-enabled voice service provider. 

(2) EMERGENCY RESPONSE CENTER.—The term ‘‘emergency response center’’ means an entity that monitors transmissions 

from an emergency response system. 

(3) FACILITIES-BASED.—The term ‘‘facilities-based’’ includes 

an IP-enabled voice service provider with control and operation 

within a local access transport area of— (A) communications switching and routing equipment; 

(B) long-haul trunks; or 

(C) local transmission facilities. 

(4) IP-ENABLED VOICE SERVICE.—The term ‘‘IP-enabled voice 

service’’ means the provision of real-time 2-way voice communications offered to the public, or such classes of users as to be 

effectively available to the public, transmitted through customer 

premises equipment using Internet protocol, or a successor protocol, for a fee (whether part of a bundle of services or offered 

separately) with interconnection capability such that the service 

can originate traffic to, and terminate traffic from, the public 

switched telephone network. 

Æ 


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