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[Senate Report 109-355]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                                 SENATE
 2d Session                                                     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

DATE deg.September 29, 2006.--Ordered to be printed

   COMMUNICATIONS OPPORTUNITY, PROMOTION, AND ENHANCEMENT ACT OF 2006

109th Congress                                                   Report
                                 SENATE
 2d Session                                                     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

DATE deg.September 29, 2006.--Ordered to be printed
       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                 JOHN D. ROCKEFELLER IV, West 
CONRAD BURNS, Montana                    Virginia
TRENT LOTT, Mississippi              JOHN F. KERRY, Massachusetts
KAY BAILEY HUTCHISON, Texas          BYRON L. DORGAN, North Dakota
OLYMPIA J. SNOWE, Maine              BARBARA BOXER, California
GORDON H. SMITH, Oregon              BILL NELSON, Florida
JOHN ENSIGN, Nevada                  MARIA CANTWELL, Washington
GEORGE ALLEN, Virginia               FRANK LAUTENBERG, New Jersey
JOHN E. SUNUNU, New Hampshire        E. BENJAMIN NELSON, Nebraska
JIM DeMINT, South Carolina           MARK PRYOR, Arkansas
DAVID VITTER, Louisiana
                    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

                                                       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 joint resolution deg. 
(H.R. 5252) TITLE deg. to promote the deployment of 
broadband networks and services, having considered the same, 
reports favorably thereon without amendment with 
amendments deg. with an amendment (in the nature of a 
substitute) and recommends that the bill joint 
resolution deg. (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. Additionally, 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 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 
        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 funds not be 
used for any purpose other than those provided in section 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 E-Rate 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.
  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.

                  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 barring 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 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 preventing 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 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 period, 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. 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 
exempt the Schools and Library program with the USF from 
provisions 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 of having equipment deployed after the 
transition to digital television 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.

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
           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 period 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 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.
    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.
    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.

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 based on income. Existing franchise 
agreements tend to have build-out 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.

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 over-the-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.
    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 minimis-cost 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 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 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.

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

                       NUMBER OF PERSONS COVERED

  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.

                            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 and policies for calls by 
Armed Forces personnel or to such personnel 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 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 necessary changes to 
network operations centers of terrestrial-based 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 us through this 
communications era and on to the next without faltering. 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, in-use 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.
  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.
  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 ``IP-enabled 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 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 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 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 access. The Committee intends that such 
performance measures reflect 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. 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 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 public rights-of-way, 
regardless of the technologies they employ, including Internet 
protocol transmission or switched video. The Committee 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 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.
  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.

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 
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 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.
  New subparagraph 335(c)(2)(A)(ii)(I) would require that in 
the case of direct-to-consumer satellite services, other than 
direct-to-home 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-to-home 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 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 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.
  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''.

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.
  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 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 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.
  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 V-chip 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 program includes a means to reach and 
assist elderly, disabled, low-income, 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 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.
  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 program-related 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 program-related material without 
material degradation, if the licensee for that station relies 
on section 338 to obtain carriage of the station's 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 within 120 days after 
enactment to consider incorporating accessible 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 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.
           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 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.

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. Sec. 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 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 
within 1 year of enactment a final rule establishing customer 
service 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.

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

  Section 1016 of the bill would require the Director of the 
National Science Foundation (NSF) to establish a program of 
basic research regarding the availability and affordability of 
advanced communications 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 interference due to its spacing on an FM 
channel. The FCC currently has a temporary rule preventing LPFM 
stations from operating 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).
  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.
  [The Committee directs the FCC to complete action no later 
than 6 months after enactment of this Act in the FCC's pending 
proceeding regarding whether certain restrictions on antenna 
installation 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. McCain\1\                       Mr. Burns
Mr. Lott\1\                         Mr. Vitter
Mrs. Hutchison\1\                   Mr. Inouye
Ms. Snowe                           Mr. Rockefeller\1\
Mr. Smith                           Mr. Kerry\1\
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

    \1\By 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. McCain\1\
Mr. Rockefeller                     Mr. Burns
Mr. Kerry                           Mr. Lott
Mr. Dorgan                          Mrs. Hutchison\1\
Mr. Nelson of Florida\1\            Ms. Snowe\1\
Mr. Nelson of Nebraska\1\           Mr. Smith\1\
Mr. Pryor                           Mr. Ensign
                                    Mr. Allen
                                    Mr. Sununu
                                    Mr. DeMint\1\
                                    Mr. Vitter
                                    Mrs. Boxer
                                    Ms. Cantwell
                                    Mr. Lautenberg\1\
                                    Mr. Stevens
    \1\By proxy
  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. McCain\1\
Mr. Rockefeller                     Mr. Burns
Mr. Kerry                           Mr. Lott
Mr. Dorgan                          Mrs. Hutchison\1\
Mrs. Boxer                          Ms. Snowe\1\
Mr. Nelson of Florida\1\            Mr. Smith\1\
Ms. Cantwell                        Mr. Ensign
Mr. Lautenberg\1\                   Mr. Allen
Mr. Nelson of Nebraska\1\           Mr. Sununu
Mr. Pryor                           Mr. DeMint\1\
                                    Mr. Vitter
                                    Mr. Stevens

    \1\By 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. McCain\1\
Mr. Rockefeller                     Mr. Burns
Mr. Dorgan                          Mr. Lott
Mrs. Boxer                          Mrs. Hutchison\1\
Mr. Nelson of Florida               Ms. Snowe
Ms. Cantwell\1\                     Mr. Smith\1\
Mr. Lautenberg                      Mr. Ensign
Mr. Nelson of Nebraska              Mr. Allen\1\
Mr. Pryor                           Mr. Sununu
                                    Mr. DeMint\1\
                                    Mr. Vitter\1\
                                    Mr. Kerry
                                    Mr. Stevens

    \1\By 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. Inouye\1\                       Mr. McCain\1\
Mr. Rockefeller\1\                  Mr. Burns
Mr. Kerry\1\                        Mr. Lott
Mr. Dorgan                          Mrs. Hutchison\1\
Mrs. Boxer                          Ms. Snowe
Mr. Nelson of Florida               Mr. Smith\1\
Ms. Cantwell                        Mr. Ensign
Mr. Lautenberg                      Mr. Allen
Mr. Nelson of Nebraska              Mr. Sununu
Mr. Pryor                           Mr. DeMint
                                    Mr. Vitter
                                    Mr. Stevens

    \1\By 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. Hutchison\1\                   Mr. McCain\1\
Mr. Inouye                          Mr. Burns
Mr. Rockefeller\1\                  Mr. Lott
Mr. Kerry\1\                        Ms. Snowe
Mr. Dorgan                          Mr. Smith\1\
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

    \1\By 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. Lott\1\
Mr. Rockefeller\1\                  Mrs. Hutchison\1\
Mr. Kerry                           Mr. Smith
Mr. Dorgan                          Mr. Ensign
Mrs. Boxer                          Mr. Allen\1\
Ms. Cantwell                        Mr. Sununu
Mr. Lautenberg\1\                   Mr. DeMint
Mr. Pryor                           Mr. Vitter\1\
                                    Mr. Nelson of Florida
                                    Mr. Nelson of Nebraska
                                    Mr. Stevens

    \1\By 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. Hutchison\1\
Mr. Dorgan                          Mr. Smith
Mrs. Boxer                          Mr. Ensign
Mr. Nelson of Florida               Mr. Allen
Ms. Cantwell                        Mr. Sununu
Mr. Lautenberg\1\                   Mr. DeMint
Mr. Pryor                           Mr. Vitter\1\
                                    Mr. Nelson of Nebraska
                                    Mr. Stevens

    \1\By 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. Smith\1\
Mr. Sununu                          Mr. Ensign
Mr. Vitter\1\                       Mr. DeMint
Mr. Inouye                          Mr. Nelson of Nebraska
Mr. Rockefeller                     Mr. Stevens
Mr. Kerry\1\
Mr. Dorgan
Mrs. Boxer
Mr. Nelson of Florida\1\
Ms. Cantwell
Mr. Lautenberg
Mr. Pryor

    \1\By proxy

  Senators McCain, Allen, Bill Nelson and Stevens offered an 
amendment that would impose a 3-year moratorium on cell phone-
specific 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. Hutchison\1\
Ms. Snowe
Mr. Smith\1\
Mr. Ensign\1\
Mr. Allen
Mr. Sununu\1\
Mr. DeMint
Mr. Vitter\1\
Mr. Inouye
Mr. Kerry\1\
Mr. Dorgan
Mrs. Boxer
Mr. Nelson of Florida\1\
Ms. Cantwell
Mr. Lautenberg
Mr. Nelson of Nebraska
Mr. Pryor
Mr. Stevens

    \1\By 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. Hutchison\1\
                                    Mr. Smith\1\
                                    Mr. Ensign
                                    Mr. Allen
                                    Mr. Sununu
                                    Mr. DeMint
                                    Mr. Vitter\1\
                                    Mr. Inouye
                                    Mr. Rockefeller
                                    Mr. Kerry\1\
                                    Mr. Dorgan
                                    Mrs. Boxer
                                    Mr. Nelson of Florida\1\
                                    Ms. Cantwell
                                    Mr. Lautenberg
                                    Mr. Nelson of Nebraska
                                    Mr. Pryor
                                    Mr. Stevens

    \1\By 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. McCain\1\                       Mr. Rockefeller
Mr. Burns                           Mr. Dorgan
Mr. Lott                            Mr. Lautenberg
Mrs. Hutchison\1\
Ms. Snowe
Mr. Smith\1\
Mr. Ensign
Mr. Allen
Mr. Sununu
Mr. DeMint
Mr. Vitter\1\
Mr. Inouye
Mr. Kerry\1\
Mrs. Boxer
Mr. Nelson of Florida\1\
Ms. Cantwell
Mr. Nelson of Nebraska\1\
Mr. Pryor\1\
Mr. Stevens

    \1\By proxy

  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. McCain\1\
Mr. Inouye                          Mr. Burns
Mr. Rockefeller                     Mr. Lott
Mr. Kerry                           Mrs. Hutchison\1\
Mr. Dorgan                          Mr. Smith
Mrs. Boxer                          Mr. Ensign
Mr. Nelson of Florida               Mr. Allen
Ms. Cantwell                        Mr. Sununu
Mr. Lautenberg\1\                   Mr. DeMint
Mr. Nelson of Nebraska\1\           Mr. Vitter\1\
Mr. Pryor                           Mr. Stevens

    \1\By 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. McCain\1\
Mr. Rockefeller                     Mr. Burns
Mr. Kerry\1\                        Mr. Lott\1\
Mr. Dorgan                          Mrs. Hutchison\1\
Mrs. Boxer                          Ms. Snowe
Mr. Nelson of Florida               Mr. Smith\1\
Ms. Cantwell                        Mr. Ensign\1\
Mr. Lautenberg\1\                   Mr. Allen
Mr. Nelson of Nebraska\1\           Mr. Sununu
Mr. Pryor                           Mr. DeMint
                                    Mr. Vitter\1\
                                    Mr. Stevens

    \1\By 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. McCain\1\
Mr. Rockefeller                     Mr. Burns
Mr. Kerry\1\                        Mr. Lott\1\
Mr. Dorgan                          Mrs. Hutchison\1\
Mrs. Boxer                          Ms. Snowe
Mr. Nelson of Florida               Mr. Smith\1\
Ms. Cantwell                        Mr. Ensign\1\
Mr. Lautenberg                      Mr. Allen
Mr. Nelson of Nebraska\1\           Mr. Sununu
Mr. Pryor                           Mr. DeMint
                                    Mr. Vitter\1\
                                    Mr. Stevens

    \1\By 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. Kerry\1\
Mr. Lott\1\                         Mr. Dorgan
Mrs. Hutchison\1\                   Mrs. Boxer
Ms. Snowe                           Mr. Nelson of Florida
Mr. Smith\1\                        Ms. Cantwell
Mr. Ensign\1\                       Mr. Lautenberg
Mr. Allen
Mr. Sununu
Mr. DeMint
Mr. Vitter\1\
Mr. Inouye
Mr. Nelson of Nebraska\1\
Mr. Pryor
Mr. Stevens

    \1\By proxy

         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 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.
  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 ``two-tiered'' 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 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 ``high-value'' 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.
  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 build-out 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 regardless 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.

                        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]

  [Sec. 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--
          [(A) prescribe minimum distance separations for 
        third-adjacent channels (as well as for co-channels and 
        first- and second-adjacent channels); and
          [(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).
          [(2) The Federal Communications Commission may not--
                  [(A) eliminate or reduce the minimum distance 
                separations for third-adjacent channels 
                required by paragraph (1)(A); or
                  [(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.
          [(3) Any license that was issued by the Commission to 
        a low-power 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.
  [(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 conclusion 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.
          [(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--
                  [(A) an opportunity for the public to comment 
                on interference; and
                  [(B) independent audience listening tests to 
                determine what is objectionable and harmful 
                interference to the average radio listener.
          [(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--
                  [(A) an analysis of the experimental program 
                and field testsand of the public comment 
                received by the Commission;
                  [(B) an evaluation of the impact of the 
                modification orelimination of minimum distance 
                separations for third-adjacentchannels on--
                          [(i) listening audiences;
                          [(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;
                          [(iii) the transition to digital 
                        radio for terrestrial radio 
                        broadcasters;
                          [(iv) stations that provide a reading 
                        service for the blind to the public; 
                        and
                          [(v) FM radio translator stations;
                  [(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
                  [(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

Sec. 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 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.

Sec. 2255. Civil remedy for personal injuries

  [(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 [such 
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 [such minor] such person sustains and the cost 
of the suit, including a reasonable attorney's fee. [Any minor] 
Any person as described in the preceding sentence shall be 
deemed to have sustained damages of no less than [$50,000] 
$150,000 in value.
  [(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 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 [$50,000;] $150,000; 
                and
                  (B) in the case of any second or subsequent 
                failure to make a report, not more than 
                [$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.
  (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 [taxes 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 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.
                  (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 designed 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 Communications 
Capability and Services.--No State statute, regulation, or 
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 telecommunications 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--
                          (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.
  [(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

[SEC. 213. TELEPHONE RATES FOR MEMBERS OF ARMED FORCES DEPLOYED ABROAD.

                          [47 U.S.C. 201 note]

  [(a) In General.--The Federal Communications Commission shall 
make efforts to reduce telephone rates for Armed Forces 
personnel 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.
  [(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--
          [(1) evaluating and analyzing the costs to Armed 
        Forces personnel of such telephone calls to and from 
        American military bases abroad;
          [(2) evaluate methods of reducing the rates imposed 
        on such calls;
          [(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
          [(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 
Licensee''.--As used in this section, the term ``commercial 
television broadcast licensee'' includes [a cable operator,] 
cable operators and video service providers, as defined in 
section 602 of the Communications Act of 1934 (47 U.S.C. 522).

      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--
                          (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.--[The 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 [Assistant 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 [Assistant 
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 
        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. 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-Light-Trucks, 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.
          (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 
with the Federal Communications Commission, shall promulgate 
regulations for the implementation of subsections (d) through 
(f) of this section.
  [(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 
                [services;] 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;
                  (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 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.
          (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 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.
          (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 expedite 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.

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 [deemed 
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).

                       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 
Discontinuance 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 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 
        carriers.--A State commission shall upon its own motion 
        or upon request designate a common carrier that meets 
        the requirements 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 common 
        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 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).
          (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;
                          (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 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 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,
                  (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 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.
          (4) Considerations required for use of database 
        method.--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 
                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 
Identification Information.--
          (1) In general.--It shall be unlawful for any person 
        within the United States, in connection with any 
        telecommunications service or IP-enabled voice service, 
        to cause any caller identification service to transmit 
        misleading or inaccurate caller identification 
        information, unless such transmission is exempted 
        pursuant to paragraph (3)(B).
          (2) Protection for blocking caller identification 
        information.--Nothing in this subsection may be 
        construed to prevent or restrict any person from 
        blocking the capability of any caller identification 
        service to transmit caller identification information.
          (3) Regulations.--
                  (A) In general.--Not later than 6 months 
                after the enactment of the Truth in Caller ID 
                Act of 2006, the Commission shall prescribe 
                regulations to implement this subsection.
                  (B) Content of regulations.--
                          (i) In general.--The regulations 
                        required under subparagraph (A) shall 
                        include such exemptions from the 
                        prohibition under paragraph (1) as the 
                        Commission determines 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 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 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.
  [(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 include the part of 
        such single national database that relates to such 
        State.
  [(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 authorized 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.
  [(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;
                  (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.
          (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.
  (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.--
                  (A) Exemption.--[Subsection] 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 
                [interconnection, services, or network 
                elements,] services or network elements and 
                (ii) the State commission determines [(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.
                  [(B)] (D) State termination of exemption and 
                implementation schedule.--The party making a 
                bona fide request of a rural telephone company 
                for [interconnection, 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.
                  [(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 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 comparable 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 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 [telecommunications 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.
          [(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 mechanisms for schools, 
        libraries, and health care providers for the purposes 
        of subsection (h).
  [(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-for-profit 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.--
                  (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 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.
  [(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--
                  (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 as a service obligation as a 
                        part of its obligation to participate 
                        in the mechanisms to preserve and 
                        advance universal [service.] 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 nonprofit 
                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.
          [(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 for-profit 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 
                        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.
                          (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 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 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 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) 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, 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--
                          (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; [and
                          [(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
                          (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--
                  (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 
Standards.--
          (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 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.
          (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 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.
  (d) [Definition.--] 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 
[services.] 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;
          (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
          (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 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 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.
  (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 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 introduction of evidence and the 
burden of proof shall be upon the applicant, except that with 
respect to any issue presented by a petition to deny or a 
petition to enlarge the issues, such burdens shall be as 
determined by the Commission.
  (f) Temporary Authorization of Operations Under Subsection 
(b).--When an application subject to subsection (b) has been 
filed, the Commission, notwithstanding the requirements of such 
subsection, may, if the grant of such application is otherwise 
authorized by law and if it finds that there are extraordinary 
circumstances requiring temporary operations in the public 
interest and that delay in the institution of such temporary 
operations would seriously prejudice the public interest, grant 
a temporary authorization, accompanied by a statement of its 
reasons therefor, to permit such temporary operations for a 
period not exceeding 180 days, and upon making like findings 
may extend such temporary authorization for additional periods 
not to exceed 180 days. When any such grant of a temporary 
authorization is made, the Commission shall give expeditious 
treatment to any timely filed petition to deny such application 
and to any petition for rehearing of such grant filed under 
section 405.
  (g) Classification of Applications.--The Commission is 
authorized to adopt reasonable classifications of applications 
and amendments in order to effectuate the purposes of this 
section.
  (h) Form and Conditions of Station Licenses.--Such station 
licenses as the Commission may grant shall be in such general 
form as it may prescribe, but each license shall contain, in 
addition to other provisions, a statement of the following 
conditions to which such license shall be subject: (1) The 
station license shall not vest in the licensee any right to 
operate the station nor any right in the use of the frequencies 
designated in the license beyond the term thereof nor in any 
other manner than authorized therein; (2) neither the license 
nor the right granted thereunder shall be assigned or otherwise 
transferred in violation of this Act; (3) every license issued 
under this Act shall be subject in terms to the right of use or 
control conferred by section 706 of this Act.
  (i) Random Selection.--
          (1) General authority.--Except as provided in 
        paragraph (5), if there is more than one application 
        for any initial license or construction permit, then 
        the Commission shall have the authority to grant such 
        license or permit to a qualified applicant through the 
        use of a system of random selection.
          (2) No license or construction permit shall be 
        granted to an applicant selected pursuant to paragraph 
        (1) unless the Commission determines the qualifications 
        of such applicant pursuant to subsection (a) and 
        section 308(b). When substantial and material questions 
        of fact exist concerning such qualifications, the 
        Commission shall conduct a hearing in order to make 
        such determinations. For the purpose of making such 
        determinations, the Commission may, by rule, and 
        notwithstanding any other provision of law--
                  (A) adopt procedures for the submission of 
                all or part of the evidence in written form;
                  (B) delegate the function of presiding at the 
                taking of the evidence to Commission employees 
                other than administrative law judges; and
                  (C) omit the determination required by 
                subsection (a) with respect to any application 
                other than the one selected pursuant to 
                paragraph (1).
          (3)(A) The Commission shall establish rules and 
        procedures to ensure that, in the administration of any 
        system of random selection under this subsection used 
        for granting licenses or construction permits for any 
        media of mass communications, significant preferences 
        will be granted to applicants or groups of applicants, 
        the grant to which of the license or permit would 
        increase the diversification of ownership of the media 
        of mass communications. To further diversify the 
        ownership of the media of mass communications, an 
        additional significant preference shall be granted to 
        any applicant controlled by a member or members of a 
        minority group.
                  (B) The Commission shall have authority to 
                require each qualified applicant seeking a 
                significant preference under subparagraph (A) 
                to submit to the Commission such information as 
                may be necessary to enable the Commission to 
                make a determination regarding whether such 
                applicant shall be granted such preference. 
                Such information shall be submitted in such 
                form, at such times, and in accordance with 
                such procedures, as the Commission may require.
                  (C) For purposes of this paragraph:
                          (i) The term ``media of mass 
                        communications'' includes television, 
                        radio, cable television, multipoint 
                        distribution service, direct broadcast 
                        satellite service, and other services, 
                        the licensed facilities of which may be 
                        substantially devoted toward providing 
                        programming or other information 
                        services within the editorial control 
                        of the licensee.
                          (ii) The term ``minority group'' 
                        includes Blacks, Hispanics, American 
                        Indians, Alaska Natives, Asians, and 
                        Pacific Islanders.
          (4)(A) The Commission shall, after notice and 
        opportunity for hearing, prescribe rules establishing a 
        system of random selection for use by the Commission 
        under this subsection in any instance in which the 
        Commission, in its discretion, determines that such use 
        is appropriate for the granting of any license or 
        permit in accordance with paragraph (1).
                  (B) The Commission shall have authority to 
                amend such rules from time to time to the 
                extent necessary to carry out the provisions of 
                this subsection. Any such amendment shall be 
                made after notice and opportunity for hearing.
                  (C) Not later than 180 days after the date of 
                enactment of this subparagraph, the Commission 
                shall prescribe such transfer disclosures and 
                antitrafficking restrictions and payment 
                schedules as are necessary to prevent the 
                unjust enrichment of recipients of licenses or 
                permits as a result of the methods employed to 
                issue licenses under this subsection.
          (5) Termination of authority.--
                  (A) Except as provided in subparagraph (B), 
                the Commission shall not issue any license or 
                permit using a system of random selection under 
                this subsection after July 1, 1997.
                  (B) Subparagraph (A) of this paragraph shall 
                not apply with respect to licenses or permits 
                for stations described in section 397(6) of 
                this Act.
  (j) Use of Competitive Bidding.--
          (1) General authority.--If, consistent with the 
        obligations described in paragraph (6)(E), mutually 
        exclusive applications are accepted for any initial 
        license or construction permit, then, except as 
        provided in paragraph (2), the Commission shall grant 
        the license or permit to a qualified applicant through 
        a system of competitive bidding that meets the 
        requirements of this subsection.
          (2) Exemptions.--The competitive bidding authority 
        granted by this subsection shall not apply to licenses 
        or construction permits issued by the Commission--
                  (A) for public safety radio services, 
                including private internal radio services used 
                by State and local governments and non-
                government entities and including emergency 
                road services provided by not-for-profit 
                organizations, that--
                          (i) are used to protect the safety of 
                        life, health, or property; and
                          (ii) are not made commercially 
                        available to the public;
                  (B) for initial licenses or construction 
                permits for digital television service given to 
                existing terrestrial broadcast licensees to 
                replace their analog television service 
                licenses; or
                  (C) for stations described in section 397(6) 
                of this Act.
          (3) Design of systems of competitive bidding.--For 
        each class of licenses or permits that the Commission 
        grants through the use of a competitive bidding system, 
        the Commission shall, by regulation, establish a 
        competitive bidding methodology. The Commission shall 
        seek to design and test multiple alternative 
        methodologies under appropriate circumstances. The 
        Commission shall, directly or by contract, provide for 
        the design and conduct (for purposes of testing) of 
        competitive bidding using a contingent combinatorial 
        bidding system that permits prospective bidders to bid 
        on combinations or groups of licenses in a single bid 
        and to enter multiple alternative bids within a single 
        bidding round. In identifying classes of licenses and 
        permits to be issued by competitive bidding, in 
        specifying eligibility and other characteristics of 
        such licenses and permits, and in designing the 
        methodologies for use under this subsection, the 
        Commission shall include safeguards to protect the 
        public interest in the use of the spectrum and shall 
        seek to promote the purposes specified in section 1 of 
        this Act and the following objectives:
                  (A) the development and rapid deployment of 
                new technologies, products, and services for 
                the benefit of the public, including those 
                residing in rural areas, without administrative 
                or judicial delays;
                  (B) promoting economic opportunity and 
                competition and ensuring that new and 
                innovative technologies are readily accessible 
                to the American people by avoiding excessive 
                concentration of licenses and by disseminating 
                licenses among a wide variety of applicants, 
                including small businesses, rural telephone 
                companies, and businesses owned by members of 
                minority groups and women;
                  (C) recovery for the public of a portion of 
                the value of the public spectrum resource made 
                available for commercial use and avoidance of 
                unjust enrichment through the methods employed 
                to award uses of that resource;
                  (D) efficient and intensive use of the 
                electromagnetic spectrum;
                  (E) ensure that, in the scheduling of any 
                competitive bidding under this subsection, an 
                adequate period is allowed--
                          (i) before issuance of bidding rules, 
                        to permit notice and comment on 
                        proposed auction procedures; and
                          (ii) after issuance of bidding rules, 
                        to ensure that interested parties have 
                        a sufficient time to develop business 
                        plans, assess market conditions, and 
                        evaluate the availability of equipment 
                        for the relevant services; and
                  (F) for any auction of eligible frequencies 
                described in section 113(g)(2) of the National 
                Telecommunications and Information 
                Administration Organization Act (47 U.S.C. 
                923(g)(2)), the recovery of 110 percent of 
                estimated relocation costs as provided to the 
                Commission pursuant to section 113(g)(4) of 
                such Act.
          (4) Contents of regulations.--In prescribing 
        regulations pursuant to paragraph (3), the Commission 
        shall--
                  (A) consider alternative payment schedules 
                and methods of calculation, including lump sums 
                or guaranteed installment payments, with or 
                without royalty payments, or other schedules or 
                methods that promote the objectives described 
                in paragraph (3)(B), and combinations of such 
                schedules and methods;
                  (B) include performance requirements, such as 
                appropriate deadlines and penalties for 
                performance failures, to ensure prompt delivery 
                of service to rural areas, to prevent 
                stockpiling or warehousing of spectrum by 
                licensees or permittees, and to promote 
                investment in and rapid deployment of new 
                technologies and services;
                  (C) consistent with the public interest, 
                convenience, and necessity, the purposes of 
                this Act, and the characteristics of the 
                proposed [service, prescribe] service--
                          (i) prescribe area designations and 
                        bandwidth assignments that promote [(i) 
                        an] (I) an equitable distribution of 
                        licenses and services among geographic 
                        areas, [(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 [(iii)] (III) investment in 
                        and rapid deployment of new 
                        technologies and [services;] 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 
                regulations, and other means in order to avoid 
                mutual exclusivity in application and licensing 
                proceedings;
                  (F) be construed to prohibit the Commission 
                from issuing nationwide, regional, or local 
                licenses or permits;
                  (G) be construed to prevent the Commission 
                from awarding licenses to those persons who 
                make significant contributions to the 
                development of a new telecommunications service 
                or technology; or
                  (H) be construed to relieve any applicant for 
                a license or permit of the obligation to pay 
                charges imposed pursuant to section 8 of this 
                Act.
          (7) Consideration of revenues in public interest 
        determinations.--
                  (A) Consideration prohibited.--In making a 
                decision pursuant to section 303(c) to assign a 
                band of frequencies to a use for which licenses 
                or permits will be issued pursuant to this 
                subsection, and in prescribing regulations 
                pursuant to paragraph (4)(C) of this 
                subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity on the expectation of Federal 
                revenues from the use of a system of 
                competitive bidding under this subsection.
                  (B) Consideration limited.--In prescribing 
                regulations pursuant to paragraph (4)(A) of 
                this subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity solely or predominantly on the 
                expectation of Federal revenues from the use of 
                a system of competitive bidding under this 
                subsection.
                  (C) Consideration of demand for spectrum not 
                affected.--Nothing in this paragraph shall be 
                construed to prevent the Commission from 
                continuing to consider consumer demand for 
                spectrum-based services.
          (8) Treatment of revenues.--
                  (A) General rule.--Except as provided in 
                subparagraphs (B), (D), 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 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
                  (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;
                  (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.
                  (C) Installments permitted.--The Commission 
                shall require such person to pay the sum 
                required by subparagraph (B) in a lump sum or 
                in guaranteed installment payments, with or 
                without royalty payments, over a period of not 
                more than 5 years.
                  (D) Rulemaking on pioneer preferences.--
                Except with respect to pending applications 
                described in clause (iv) of this subparagraph, 
                the Commission shall prescribe regulations 
                specifying the procedures and criteria by which 
                the Commission will evaluate applications for 
                preferential treatment in its licensing 
                processes (by precluding the filing of mutually 
                exclusive applications) for persons who make 
                significant contributions to the development of 
                a new service or to the development of new 
                technologies that substantially enhance an 
                existing service. Such regulations shall--
                          (i) specify the procedures and 
                        criteria by which the significance of 
                        such contributions will be determined, 
                        after an opportunity for review and 
                        verification by experts in the radio 
                        sciences drawn from among persons who 
                        are not employees of the Commission or 
                        by any applicant for such preferential 
                        treatment;
                          (ii) include such other procedures as 
                        may be necessary to prevent unjust 
                        enrichment by ensuring that the value 
                        of any such contribution justifies any 
                        reduction in the amounts paid for 
                        comparable licenses under this 
                        subsection;
                          (iii) be prescribed not later than 6 
                        months after the date of enactment of 
                        this paragraph;
                          (iv) not apply to applications that 
                        have been accepted for filing on or 
                        before September 1, 1994; and
                          (v) cease to be effective on the date 
                        of the expiration of the Commission's 
                        authority under subparagraph (F).
                  (E) Implementation with respect to pending 
                applications.--In applying this paragraph to 
                any broadband licenses in the personal 
                communications service awarded pursuant to the 
                preferential treatment accorded by the Federal 
                Communications Commission in the Third Report 
                and Order in General Docket 90-314 (FCC 93-550, 
                released February 3, 1994)--
                          (i) the Commission shall not 
                        reconsider the award of preferences in 
                        such Third Report and Order, and the 
                        Commission shall not delay the grant of 
                        licenses based on such awards more than 
                        15 days following the date of enactment 
                        of this paragraph, and the award of 
                        such preferences and licenses shall not 
                        be subject to administrative or 
                        judicial review;
                          (ii) the Commission shall not alter 
                        the bandwidth or service areas 
                        designated for such licenses in such 
                        Third Report and Order;
                          (iii) except as provided in clause 
                        (v), the Commission shall use, as the 
                        most reasonably comparable licenses for 
                        purposes of subparagraph (B)(i), the 
                        broadband licenses in the personal 
                        communications service for blocks A and 
                        B for the 20 largest markets (ranked by 
                        population) in which no applicant has 
                        obtained preferential treatment;
                          (iv) for purposes of subparagraph 
                        (C), the Commission shall permit 
                        guaranteed installment payments over a 
                        period of 5 years, subject to--
                                  (I) the payment only of 
                                interest on unpaid balances 
                                during the first 2 years, 
                                commencing not later than 30 
                                days after the award of the 
                                license (including any 
                                preferential treatment used in 
                                making such award) is final and 
                                no longer subject to 
                                administrative or judicial 
                                review, except that no such 
                                payment shall be required prior 
                                to the date of completion of 
                                the auction of the comparable 
                                licenses described in clause 
                                (iii); and
                                  (II) payment of the unpaid 
                                balance and interest thereon 
                                after the end of such 2 years 
                                in accordance with the 
                                regulations prescribed by the 
                                Commission; and
                          (v) the Commission shall recover with 
                        respect to broadband licenses in the 
                        personal communications service an 
                        amount under this paragraph that is 
                        equal to not less than $400,000,000, 
                        and if such amount is less than 
                        $400,000,000, the Commission shall 
                        recover an amount equal to $400,000,000 
                        by allocating such amount among the 
                        holders of such licenses based on the 
                        population of the license areas held by 
                        each licensee.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 
        spectrum.--
                  (A) Limitations on terms of terrestrial 
                television broadcast licenses.--A full-power 
                television broadcast license that authorizes 
                analog television service may not be renewed to 
                authorize such service for a period that 
                extends beyond 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.
                          (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--
                                  (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.
          (16) Special auction provisions for eligible 
        frequencies.--
                  (A) Special regulations.--The Commission 
                shall revise the regulations prescribed under 
                paragraph (4)(F) of this subsection to 
                prescribe methods by which the total cash 
                proceeds from any auction of eligible 
                frequencies described in section 113(g)(2) of 
                the National Telecommunications and Information 
                Administration Organization Act (47 U.S.C. 
                923(g)(2)) shall at least equal 110 percent of 
                the total estimated relocation 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 
        transactions.--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. 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 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 [cable 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
                          (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;
                          (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 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 Stations 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 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.--
                          (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 
                        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 exclusive, 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.
  (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.
                  (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.
          (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.
  [(d)] (e) For the purposes of this section, and sections 
303(s), 303(u), and 303(x)--
          (1) The term ``interstate commerce'' means (A) 
        commerce between any State, the District of Columbia, 
        the Commonwealth of Puerto Rico, or any possession of 
        the United States and any place outside thereof which 
        is within the United States, (B) commerce between 
        points in the same State, the District of Columbia, the 
        Commonwealth of Puerto Rico, or possession of the 
        United States but through any place outside thereof, or 
        (C) commerce wholly within the District of Columbia or 
        any possession of the United States.
          (2) The term ``United States'' means the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and the possessions of the United States, 
        but does not include the Canal Zone.

SEC. 332. MOBILE SERVICES.

                            [47 U.S.C. 332]

  (a) Factors Which Commission Must Consider.--In taking 
actions to manage the spectrum to be made available for use by 
the private mobile services, the Commission shall consider, 
consistent with section 1 of this Act, whether such actions 
will--
          (1) promote the safety of life and property;
          (2) improve the efficiency of spectrum use and reduce 
        the regulatory burden upon spectrum users, based upon 
        sound engineering principles, user operational 
        requirements, and market-place demands;
          (3) encourage competition and provide services to the 
        largest feasible number of users; or
          (4) increase interservice sharing opportunities 
        between private mobile services and other services.
  (b) Advisory Coordinating Committees.--
          (1) The Commission, in coordinating the assignment of 
        frequencies to stations in the private mobile services 
        and in the fixed services (as defined by the Commission 
        by rule), shall have authority to utilize assistance 
        furnished by advisory coordinating committees 
        consisting of individuals who are not officers or 
        employees of the Federal Government.
          (2) The authority of the Commission established in 
        this subsection shall not be subject to or affected by 
        the provisions of part III of title 5, United States 
        Code, or section 3679(b) of the Revised Statutes (31 
        U.S.C. 665(b)).
          (3) Any person who provides assistance to the 
        Commission under this subsection shall not be 
        considered, by reason of having provided such 
        assistance, a Federal employee.
          (4) Any advisory coordinating committee which 
        furnishes assistance to the Commission under this 
        subsection shall not be subject to the provisions of 
        the Federal Advisory Committee Act.
  (c) Regulatory Treatment of Mobile Services.--
          (1) Common carrier treatment of commercial mobile 
        services.--
                  (A) A person engaged in the provision of a 
                service that is a commercial mobile service 
                shall, insofar as such person is so engaged, be 
                treated as a common carrier for purposes of 
                this Act, except for such provisions of title 
                II as the Commission may specify by regulation 
                as inapplicable to that service or person. In 
                prescribing or amending any such regulation, 
                the Commission may not specify any provision of 
                section 201, 202, or 208, and may specify any 
                other provision only if the Commission 
                determines that--
                          (i) enforcement of such provision is 
                        not necessary in order to ensure that 
                        the charges, practices, 
                        classifications, or regulations for or 
                        in connection with that service are 
                        just and reasonable and are not 
                        unjustly or unreasonably 
                        discriminatory;
                          (ii) enforcement of such provision is 
                        not necessary for the protection of 
                        consumers; and
                          (iii) specifying such provision is 
                        consistent with the public interest.
                  (B) Upon reasonable request of any person 
                providing commercial mobile service, the 
                Commission shall order a common carrier to 
                establish physical connections with such 
                service pursuant to the provisions of section 
                201 of this Act. Except to the extent that the 
                Commission is required to respond to such a 
                request, this subparagraph shall not be 
                construed as a limitation or expansion of the 
                Commission's authority to order interconnection 
                pursuant to this Act.
                  (C) The Commission shall review competitive 
                market conditions with respect to commercial 
                mobile services and shall include in its annual 
                report an analysis of those conditions. Such 
                analysis shall include an identification of the 
                number of competitors in various commercial 
                mobile services, an analysis of whether or not 
                there is effective competition, an analysis of 
                whether any of such competitors have a dominant 
                share of the market for such services, and a 
                statement of whether additional providers or 
                classes of providers in those services would be 
                likely to enhance competition. As a part of 
                making a determination with respect to the 
                public interest under subparagraph (A)(iii), 
                the Commission shall consider whether the 
                proposed regulation (or amendment thereof) will 
                promote competitive market conditions, 
                including the extent to which such regulation 
                (or amendment) will enhance competition among 
                providers of commercial mobile services. If the 
                Commission determines that such regulation (or 
                amendment) will promote competition among 
                providers of commercial mobile services, such 
                determination may be the basis for a Commission 
                finding that such regulation (or amendment) is 
                in the public interest.
                  (D) The Commission shall, not later than 180 
                days after the date of enactment of this 
                subparagraph, complete a rulemaking required to 
                implement this paragraph with respect to the 
                licensing of personal communications services, 
                including making any determinations required by 
                subparagraph (C).
          (2) Non-common carrier treatment of private mobile 
        services.--A person engaged in the provision of a 
        service that is a private mobile service shall not, 
        insofar as such person is so engaged, be treated as a 
        common carrier for any purpose under this Act. A common 
        carrier (other than a person that was treated as a 
        provider of a private land mobile service prior to the 
        enactment of the Omnibus Budget Reconciliation Act of 
        1993) shall not provide any dispatch service on any 
        frequency allocated for common carrier service, except 
        to the extent such dispatch service is provided on 
        stations licensed in the domestic public land mobile 
        radio service before January 1, 1982. The Commission 
        may by regulation terminate, in whole or in part, the 
        prohibition contained in the preceding sentence if the 
        Commission determines that such termination will serve 
        the public interest.
          (3) State preemption.--
                  (A) [Notwithstanding sections 2(b) and 
                221(b), no State or local government shall have 
                any authority to regulate the entry of or the 
                rates charged by any commercial mobile service 
                or any private mobile service, except that this 
                paragraph shall not prohibit a State from 
                regulating the other terms and conditions of 
                commercial mobile services.] (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--
                          [(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
                          [(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.
The Commission shall provide reasonable opportunity for public 
comment in response to such petition, and shall, within 9 
months after the date of its submission, grant or deny such 
petition. If the Commission grants such petition, the 
Commission shall authorize the State to exercise under State 
law such authority over rates, for such periods of time, as the 
Commission deems necessary to ensure that such rates are just 
and reasonable and not unjustly or unreasonably discriminatory.
                  (B) If a State has in effect on June 1, 1993, 
                any regulation concerning the rates for any 
                commercial mobile service offered in such State 
                on such date, such State may, no later than 1 
                year after the date of enactment of the Omnibus 
                Budget Reconciliation Act of 1993, petition the 
                Commission requesting that the State be 
                authorized to continue exercising authority 
                over such rates. If a State files such a 
                petition, the State's existing regulation 
                shall, notwithstanding subparagraph (A), remain 
                in effect until the Commission completes all 
                action (including any reconsideration) on such 
                petition. The Commission shall review such 
                petition in accordance with the procedures 
                established in such subparagraph, shall 
                complete all action (including any 
                reconsideration) within 12 months after such 
                petition is filed, and shall grant such 
                petition if the State satisfies the showing 
                required under subparagraph (A)(i) or (A)(ii). 
                If the Commission grants such petition, the 
                Commission shall authorize the State to 
                exercise under State law such authority over 
                rates, for such period of time, as the 
                Commission deems necessary to ensure that such 
                rates are just and reasonable and not unjustly 
                or unreasonably discriminatory. After a 
                reasonable period of time, as determined by the 
                Commission, has elapsed from the issuance of an 
                order under subparagraph (A) or this 
                subparagraph, any interested party may petition 
                the Commission for an order that the exercise 
                of authority by a State pursuant to such 
                subparagraph is no longer necessary to ensure 
                that the rates for commercial mobile services 
                are just and reasonable and not unjustly or 
                unreasonably discriminatory. The Commission 
                shall provide reasonable opportunity for public 
                comment in response to such petition, and 
                shall, within 9 months after the date of its 
                submission, grant or deny such petition in 
                whole or in part.
          (4) Regulatory treatment of communications satellite 
        corporation.--Nothing in this subsection shall be 
        construed to alter or affect the regulatory treatment 
        required by title IV of the Communications Satellite 
        Act of 1962 of the corporation authorized by title III 
        of such Act.
          (5) Space segment capacity.--Nothing in this section 
        shall prohibit the Commission from continuing to 
        determine whether the provision of space segment 
        capacity by satellite systems to providers of 
        commercial mobile services shall be treated as common 
        carriage.
          (6) Foreign ownership.--The Commission, upon a 
        petition for waiver filed within 6 months after the 
        date of enactment of the Omnibus Budget Reconciliation 
        Act of 1993, may waive the application of section 
        310(b) to any foreign ownership that lawfully existed 
        before May 24, 1993, of any provider of a private land 
        mobile service that will be treated as a common carrier 
        as a result of the enactment of the Omnibus Budget 
        Reconciliation Act of 1993, but only upon the following 
        conditions:
                  (A) The extent of foreign ownership interest 
                shall not be increased above the extent which 
                existed on May 24, 1993.
                  (B) Such waiver shall not permit the 
                subsequent transfer of ownership to any other 
                person in violation of section 310(b).
          (7) Preservation of local zoning authority.--
                  (A) General authority.--Except as provided in 
                this paragraph, nothing in this Act shall limit 
                or affect the authority of a State or local 
                government or instrumentality thereof over 
                decisions regarding the placement, 
                construction, and modification of personal 
                wireless service facilities.
                  (B) Limitations.--
                          (i) The regulation of the placement, 
                        construction, and modification of 
                        personal wireless service facilities by 
                        any State or local government or 
                        instrumentality thereof--
                                  (I) shall not unreasonably 
                                discriminate among providers of 
                                functionally equivalent 
                                services; and
                                  (II) shall not prohibit or 
                                have the effect of prohibiting 
                                the provision of personal 
                                wireless services.
                          (ii) A State or local government or 
                        instrumentality thereof shall act on 
                        any request for authorization to place, 
                        construct, or modify personal wireless 
                        service facilities within a reasonable 
                        period of time after the request is 
                        duly filed with such government or 
                        instrumentality, taking into account 
                        the nature and scope of such request.
                          (iii) Any decision by a State or 
                        local government or instrumentality 
                        thereof to deny a request to place, 
                        construct, or modify personal wireless 
                        service facilities shall be in writing 
                        and supported by substantial evidence 
                        contained in a written record.
                          (iv) No State or local government or 
                        instrumentality thereof may regulate 
                        the placement, construction, and 
                        modification of personal wireless 
                        service facilities on the basis of the 
                        environmental effects of radio 
                        frequency emissions to the extent that 
                        such facilities comply with the 
                        Commission's regulations concerning 
                        such emissions.
                          (v) Any person adversely affected by 
                        any final action or failure to act by a 
                        State or local government or any 
                        instrumentality thereof that is 
                        inconsistent with this subparagraph 
                        may, within 30 days after such action 
                        or failure to act, commence an action 
                        in any court of competent jurisdiction. 
                        The court shall hear and decide such 
                        action on an expedited basis. Any 
                        person adversely affected by an act or 
                        failure to act by a State or local 
                        government or any instrumentality 
                        thereof that is inconsistent with 
                        clause (iv) may petition the Commission 
                        for relief.
                  (C) Definitions.--For purposes of this 
                paragraph--
                          (i) the term ``personal wireless 
                        services'' means commercial mobile 
                        services, unlicensed wireless services, 
                        and common carrier wireless exchange 
                        access services;
                          (ii) the term ``personal wireless 
                        service facilities'' means facilities 
                        for the provision of personal wireless 
                        services; and
                          (iii) the term ``unlicensed wireless 
                        service'' means the offering of 
                        telecommunications services using duly 
                        authorized devices which do not require 
                        individual licenses, but does not mean 
                        the provision of direct-to-home 
                        satellite services (as defined in 
                        section 303(v)).
          (8) Mobile services access.--A person engaged in the 
        provision of commercial mobile services, insofar as 
        such person is so engaged, shall not be required to 
        provide equal access to common carriers for the 
        provision of telephone toll services. If the Commission 
        determines that subscribers to such services are denied 
        access to the provider of telephone toll services of 
        the subscribers' choice, and that such denial is 
        contrary to the public interest, convenience, and 
        necessity, then the Commission shall prescribe 
        regulations to afford subscribers unblocked access to 
        the provider of telephone toll services of the 
        subscribers' choice through the use of a carrier 
        identification code assigned to such provider or other 
        mechanism. The requirements for unblocking shall not 
        apply to mobile satellite services unless the 
        Commission finds it to be in the public interest to 
        apply such requirements to such services.
  (d) Definitions.--For purposes of this section--
          (1) the term ``commercial mobile service'' means any 
        mobile service (as defined in section 3) that is 
        provided for profit and makes interconnected service 
        available (A) to the public or (B) to such classes of 
        eligible users as to be effectively available to a 
        substantial portion of the public, as specified by 
        regulation by the Commission;
          (2) the term ``interconnected service'' means service 
        that is interconnected with the public switched network 
        (as such terms are defined by regulation by the 
        Commission) or service for which a request for 
        interconnection is pending pursuant to subsection 
        (c)(1)(B); and
          (3) the term ``private mobile service'' means any 
        mobile service (as defined in section 3) that is not a 
        commercial mobile service or the functional equivalent 
        of a commercial mobile service, as specified by 
        regulation by the Commission.

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

SEC. 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 
        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, 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 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;
                          (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--
                          (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.
          (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.
          (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
                  (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 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--
                   (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.
          (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 Imposition 
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 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 
                [$100,000] $1,000,000 for each violation or 
                each day of a continuing violation, except that 
                the amount assessed for any continuing 
                violation shall not exceed a total of 
                [$1,000,000] $10,000,000 for any single act or 
                failure to act described in paragraph (1) of 
                this subsection.
                  (C) 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 after notice and an opportunity 
        for a hearing before the Commission or an 
        administrative law judge thereof in accordance with 
        section 554 of title 5, United States Code. Any person 
        against whom a forfeiture penalty is determined under 
        this paragraph may obtain review thereof pursuant to 
        section 402(a).
                  (B) If any person fails to pay an assessment 
                of a forfeiture penalty determined under 
                subparagraph (A) of this paragraph, after it 
                has become a final and unappealable order or 
                after the appropriate court has entered final 
                judgment in favor of the Commission, the 
                Commission shall refer the matter to the 
                Attorney General of the United States, who 
                shall recover the amount assessed in any 
                appropriate district court of the United 
                States. In such action, the validity and 
                appropriateness of the final order imposing the 
                forfeiture penalty shall not be subject to 
                review.
          (4) Except as provided in paragraph (3) of this 
        subsection, no forfeiture penalty shall be imposed 
        under this subsection against any person unless and 
        until--
                  (A) the Commission issues a notice of 
                apparent liability, in writing, with respect to 
                such person;
                  (B) such notice has been received by such 
                person, or until the Commission has sent such 
                notice to the last known address of such 
                person, by registered or certified mail; and
                  (C) such person is granted an opportunity to 
                show, in writing, within such reasonable period 
                of time as the Commission prescribes by rule or 
                regulation, why no such forfeiture penalty 
                should be imposed.
        Such a notice shall (i) identify each specific 
        provision, term, and condition of any Act, rule, 
        regulation, order, treaty, convention, or other 
        agreement, license, permit, certificate, instrument, or 
        authorization which such person apparently violated or 
        with which such person apparently failed to comply; 
        (ii) set forth the nature of the act or omission 
        charged against such person and the facts upon which 
        such charge is based; and (iii) state the date on which 
        such conduct occurred. Any forfeiture penalty 
        determined under this paragraph shall be recoverable 
        pursuant to section 504(a) of this Act.
          (5) No forfeiture liability shall be determined under 
        this subsection against any person, if such person does 
        not hold a license, permit, certificate, or other 
        authorization issued by the Commission, and if such 
        person is not an applicant for a license, permit, 
        certificate, or other authorization issued by the 
        Commission, unless, prior to the notice required by 
        paragraph (3) of this subsection or the notice of 
        apparent liability required by paragraph (4) of this 
        subsection, such person (A) is sent a citation of the 
        violation charged; (B) is given a reasonable 
        opportunity for a personal interview with an official 
        of the Commission, at the field office of the 
        Commission which is nearest to such person's place of 
        residence; and (C) subsequently engages in conduct of 
        the type described in such citation. The provisions of 
        this paragraph shall not apply, however, if the person 
        involved is engaging in activities for which a license, 
        permit, certificate, or other authorization is 
        required, or is a cable television system operator, if 
        the person involved is transmitting on frequencies 
        assigned for use in a service in which individual 
        station operation is authorized by rule pursuant to 
        section 307(e), or in the case of violations of section 
        303(q), if the person involved is a nonlicensee tower 
        owner who has previously received notice of the 
        obligations imposed by section 303(q) from the 
        Commission or the permittee or licensee who uses that 
        tower. Whenever the requirements of this paragraph are 
        satisfied with respect to a 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; [or]
          (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
                  [(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
                          (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--[CABLE COMMUNICATIONS] VIDEO SERVICES

                       PART I--GENERAL PROVISIONS

SEC. 601. PURPOSES.

                            [47 U.S.C. 521]

  The purposes of this title are to--
          (1) establish a national policy concerning [cable] 
        video service communications;
          (2) establish franchise procedures and standards 
        which encourage the growth and development of [cable] 
        video service systems and which assure that [cable] 
        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 [cable] video service systems;
          (4) assure that [cable] 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 [cable operators] video service 
        providers against unfair denials of renewal where the 
        [operator's] provider's past performance and proposal 
        for future performance meet the standards established 
        by this title; and
          (6) promote competition in [cable] video service 
        communications and minimize unnecessary regulation that 
        would impose an undue economic burden on [cable] video 
        service systems.

SEC. 602. DEFINITIONS.

                            [47 U.S.C. 522]

  For purposes of this [title--] title:
          (1) Activated channels._[the] The term ``activated 
        channels'' means those channels engineered at the 
        headend of a [cable 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 [use;] use.
          (2) Affiliate._[the] 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 [person;] 
        person.
          (3) Basic cable service._[the] The term ``basic cable 
        service'' means any service tier which includes the 
        retransmission of local television broadcast [signals;] 
        signals.
          (4) Cable channel._[the] 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 
        [regulation);] regulation) or its equivalent (as 
        determined by the Commission).
          (5) Cable operator._[the] 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 [system;] system.
          (6) Cable service._[the] 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 [service;] 
                service.
          (7) Cable system._[the] 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 [systems;] systems.
          (8) Federal agency._[the] The term ``Federal agency'' 
        means any agency of the United States, including the 
        [Commission;] Commission.
          (9) Franchise._[the] 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 [cable system] video 
        service [system;] system.
          (10) Franchising authority._[the] The term 
        ``franchising authority'' means any governmental entity 
        empowered by Federal, State, or local law to grant a 
        [franchise;] franchise.
          (11) Grade B contour._[the] The term ``grade B 
        contour'' means the field strength of a television 
        broadcast station computed in accordance with 
        regulations promulgated by the [Commission;] 
        Commission.
          (12) Headend.--The term ``headend'' means the headend 
        of a cable system or its equivalent as determined by 
        the Commission.
          [(12)] (13) Interactive on-demand services._[the] 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 [provider;] 
        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.
          [(13)] (15) Multichannel video programming 
        distributor._[the] 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 [programming;] programming.
          [(14)] (16) Other programming service._[the] The term 
        ``other programming service'' means information that a 
        [cable operator] video service provider makes available 
        to all subscribers [generally;] generally.
          [(15)] (17) Person._[the] The term ``person'' means 
        an individual, partnership, association, joint stock 
        company, trust, corporation, or governmental [entity;] 
        entity.
          [(16)] (18) Public, educational, or governmental 
        access facilities._[the] 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 [capacity;] 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-to-
        multipoint 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.
          [(17)] (20) Service tier._[the] The term ``service 
        tier'' means a category of [cable service] video 
        service or other services provided by a [cable 
        operator] video service provider and for which a 
        separate rate is charged by the [cable operator] video 
        service [provider;] provider.
          [(18)] (21) State._[the] The term ``State'' means any 
        State, or political subdivision, or agency [thereof;] 
        thereof.
          [(19)] (22) Usable activated channels._[the] 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 [Commission; and] Commission.
          [(20)] (23) Video programming._[the] 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--
                  (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.

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.

   [PART II--USE OF CABLE CHANNELS AND CABLE OWNERSHIP RESTRICTIONS]

              PART II_USE OF VIDEO SERVICES; RESTRICTIONS

[SEC. 611. CABLE CHANNELS FOR PUBLIC, EDUCATIONAL, OR GOVERNMENTAL USE.

                            [47 U.S.C. 531]

  [(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.
  [(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.
  [(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).
  [(d) In the case of any franchise under which channel 
capacity is designated under subsection (b), the franchising 
authority shall prescribe--
          [(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
          [(2) rules and procedures under which such permitted 
        use shall cease.
  [(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 or portion of a public access program 
which contains obscenity, indecency, or nudity.
  [(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 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.

[SEC. 612. CABLE CHANNELS FOR COMMERCIAL USE.

                            [47 U.S.C. 532]

  [(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.
  [(b)(1) A cable operator shall designate channel capacity for 
commercial use by persons unaffiliated with the operator in 
accordance with the following requirements:
          [(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.
          [(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.
          [(C) An operator of any cable system with more than 
        100 activated channels shall designate 15 percent of 
        all such channels.
          [(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.
          [(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 capacity available for 
        commercial use as such capacity becomes available until 
        such time as the cable operator is in full compliance 
        with this section.
  [(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.
  [(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.
  [(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.
  [(5) For the purposes of this section, the term ``commercial 
use'' means the provision of video programming, whether or not 
for profit.
  [(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.
  [(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.
  [(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.
  [(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.
  [(4)(A) The Commission shall have the authority to--
          [(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;
          [(ii) establish reasonable terms and conditions for 
        such use, including those for billing and collection; 
        and
          [(iii) establish procedures for the expedited 
        resolution of disputes concerning rates or carriage 
        under this section.
  [(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).
  [(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.
  [(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).
  [(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.
  [(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.
  [(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 faith unless shown by clear and 
convincing evidence to the contrary.
  [(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.
  [(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.
  [(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.
  [(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).
  [(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.
  [(4) Nothing in this subsection shall substitute for the 
requirements to carry qualified noncommercial educational 
television stations as specified under section 615.
  [(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--
          [(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;
          [(B) requiring cable operators to block such single 
        channel unless the subscriber requests access to such 
        channel in writing; and
          [(C) requiring programmers to inform cable operators 
        if the program would be indecent as defined by 
        Commission regulations.
  [(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-of-way 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).
          (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.

                            [47 U.S.C. 533]

  [(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--
          [(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;
          [(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
          [(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.]

  [(c)] (a) The Commission may prescribe rules with respect to 
the ownership or control of [cable] video service systems by 
persons who own or control other media of mass communications 
which serve the same community served by a [cable] video 
service system.
  [(d)] (b) Any State or franchising authority may not prohibit 
the ownership or control of a [cable] 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 [cable] video service system in a jurisdiction by 
any person (1) because of such person's ownership or control of 
any other [cable] video service system in such jurisdiction; or 
(2) in circumstances in which the State or franchising 
authority determines that the acquisition of such a [cable] 
video service system may eliminate or reduce competition in the 
delivery of [cable service] video service in such jurisdiction.
  [(e)] (c)(1) Subject to paragraph (2), a State or franchising 
authority may hold any ownership interest in any [cable] video 
service system.
  (2) Any State or franchising authority shall not exercise any 
editorial control regarding the content of any [cable service] 
video service on a [cable] video service system in which such 
governmental 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.
  [(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 [cable] video 
        service subscribers a person is authorized to reach 
        through [cable] 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 
        [cable] video service system that can be occupied by a 
        video programmer in which a [cable 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 [cable operator] video service 
        provider or group of [cable operators] video service 
        providers can unfairly impede, either because of the 
        size of any individual [operator] provider or because 
        of joint actions by a group of [operators] providers of 
        sufficient size, the flow of video programming from the 
        video programmer to the consumer;
          (B) ensure that [cable operators] video service 
        providers affiliated with video programmers do not 
        favor such programmers in determining carriage on their 
        [cable] 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 
        [cable] video service television industry, including 
        the nature and market power of the local franchise, the 
        joint ownership of [cable] 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 [cable 
        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.
  [(g)] (e) This section shall not apply to prohibit any 
combination of any interests held by any person on [July 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 holding of such 
interests was not inconsistent with any applicable Federal or 
State law or regulations in effect on that date.
  [(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.

                            [47 U.S.C. 534]

  (a) Carriage Obligations.--Each [cable operator] video 
service provider shall carry, on the [cable] video service 
system of that [operator,] 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 [operator,] provider, subject to section 325(b).
  (b) Signals Required.--
          (1) In general.--(A) A [cable operator] video service 
        provider of a [cable] 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 [cable operator] video service provider of a 
        [cable] 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 [cable] video service 
        system is required to carry under paragraph (1), the 
        [cable operator] video service provider shall have 
        discretion in selecting which such stations shall be 
        carried on its [cable] video service system, except 
        that--
                  (A) under no circumstances shall a [cable 
                operator] video service provider carry a 
                qualified low power station in lieu of a local 
                commercial television station; and
                  (B) if the [cable operator] video service 
                provider elects to carry an affiliate of a 
                broadcast network (as such term is defined by 
                the Commission by regulation), such [cable 
                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 [cable] video 
                service system.
          (3) Content to be carried.--(A) A [cable operator] 
        video service provider shall carry in its entirety, on 
        the [cable] video service system of that [operator,] 
        provider, the primary video, accompanying audio, and 
        line 21 closed caption transmission of each of the 
        local commercial television stations carried on the 
        [cable] video service system and, to the extent 
        technically feasible, program-related material carried 
        in the vertical blanking interval or on subcarriers. 
        Retransmission of other material in the vertical 
        blanking internal or other nonprogram-related material 
        (including teletext and other subscription and 
        advertiser-supported information services) shall be at 
        the discretion of the [cable operator.] video service 
        provider. Where appropriate and feasible, [operators] 
        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 [cable operator] video service provider shall 
        carry the entirety of the program schedule of any 
        television station carried on the [cable] 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 [cable 
                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 [cable] 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.
                  [(B)] Digital video signal.--With respect to 
                any television station that is transmitting 
                broadcast programming exclusively in the 
                digital television service in a local market, a 
                cable operator of a cable system in that market 
                shall carry any digital video signal requiring 
                carriage under this section and program-related 
                material in the digital format transmitted by 
                that station, without material degradation, if 
                the licensee for that station relies on this 
                section or section 615 to obtain carriage of 
                the digital video signal and program-related 
                material on that cable system in that market.
                  (C) Multiple formats permitted.--A cable 
                operator of a cable system may offer the 
                digital video signal and program-related 
                material of a local television station 
                described in subparagraph (A) in any analog or 
                digital format or formats, whether or not doing 
                so requires conversion from the format 
                transmitted by the local television station, so 
                long as--
                          (i) the cable operator offers the 
                        digital video signal and program-
                        related material in the converted 
                        analog or digital format or formats 
                        without material degradation; and
                          (ii) also offers the digital video 
                        signal and program-related material in 
                        the manner or manners required by this 
                        paragraph.
                  (D) Transitional conversions.--
                Notwithstanding the requirement in subparagraph 
                (B) to carry the digital video signal and 
                program-related material in the digital format 
                transmitted by the local television station, 
                but subject to the prohibition on material 
                degradation, until February 17, 2014--
                          (i) a cable operator--
                                  (I) shall offer the digital 
                                video signal and program-
                                related material in the format 
                                or formats necessary for such 
                                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.
                  [(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 [cable] video service 
                television systems necessary to ensure [cable] 
                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 [cable 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 
        [cable] video service system, or to carry the signals 
        of more than one local commercial television station 
        affiliated with a particular broadcast network (as such 
        term is defined by regulation). If a [cable operator] 
        video service provider elects to carry on its [cable] 
        video service system a signal which substantially 
        duplicates the signal of another local commercial 
        television station carried on the [cable] 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 
        [operator] provider is required to carry under 
        paragraph (1).
          (6) Channel positioning.--Each signal carried in 
        fulfillment of the carriage obligations of a [cable 
        operator] video service provider under this section 
        shall be carried on the [cable] 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 [cable 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 [cable] video 
        service system. Such signals shall be viewable via 
        [cable] video service on all television receivers of a 
        subscriber which are connected to a [cable] video 
        service system by a [cable operator] video service 
        provider or for which a [cable operator] video service 
        provider provides a connection. If a [cable 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 
        [operator] provider shall notify such subscribers of 
        all broadcast stations carried on the [cable] video 
        service system which cannot be viewed via [cable] 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 [cable 
        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 [cable 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 
        [cable operators] video service providers under this 
        section.
          (10) Compensation for carriage.--A [cable 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 [cable] video 
                service system;
                  (B) a [cable 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 [cable 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 
                [cable 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 [cable operator] video service provider 
                of a [cable] 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 [cable operator] video service provider 
                of a [cable] 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 
        channels.--A [cable 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 
        [cable operator] video service provider has failed to 
        meet its obligations under this section, such station 
        shall notify the [operator] provider, in writing, of 
        the alleged failure and identify its reasons for 
        believing that the [cable 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 [cable operator] 
        video service provider shall, within 30 days of such 
        written notification, 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 [cable 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 [cable 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 [cable 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 [cable operator] video 
        service provider has met its obligations under this 
        section. If the Commission determines that the [cable 
        operator] video service provider has failed to meet 
        such obligations, the Commission shall order the [cable 
        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 [cable operator] 
        video service provider has fully met the requirements 
        of this section, it shall dismiss the complaint.
  (e) Input Selector Switch Rules Abolished.--No [cable 
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 [cable operator] video service 
        provider to carry on any tier, or prohibit a [cable 
        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 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.
  [(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 [cable] 
                video service system, is within the same 
                television market as the [cable] 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 [cable 
                        operator] video service provider for 
                        any increased copyright liability 
                        resulting from carriage on the [cable] 
                        video service system; or
                          (iii) a television broadcast station 
                        that does not deliver to the principal 
                        headend of a [cable] 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 [cable] 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 
                        [cable] 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 [cable] 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 
                        [cable] video service and [noncable] 
                        non-video service households within the 
                        areas served by the [cable] video 
                        service system or systems in such 
                        community.
                  (iii) A [cable 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 Stations 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 [cable] video service system's 
                headend, and delivers to the principal headend 
                of the [cable] 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 [cable] 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 [cable] 
                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.

                            [47 U.S.C. 535]

  (a) Carriage Obligations.--In addition to the carriage 
requirements set forth in section 614, each [cable operator] 
video service provider of a [cable] 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), each [cable operator] video service 
        provider shall carry, on the [cable] video service 
        system of that [cable 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 [cable operator] video 
        service provider of a [cable] 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 [cable 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 [cable] video service system 
        described in subparagraph (A) which operates beyond the 
        presence of any qualified local noncommercial 
        educational television station--
                  (i) the [cable 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 [cable 
                operator;] video service provider; and
                  (iii) in order to satisfy the requirements 
                for carriage specified in this subsection, the 
                [cable 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 
                [cable 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 [cable operator] video service 
        provider of a [cable] 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 [cable] video service system 
        described in this paragraph which operates beyond the 
        presence of any qualified local noncommercial 
        educational television station, the [cable 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 [cable operator] video service provider of a 
        [cable] 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 qualified local noncommercial 
        educational television station receiving carriage.
          (D) A [cable 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 [cable 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 [cable operator] video 
service provider and a particular such station, upon the 
written consent of the [cable operator] video service provider 
and the station.
  (d) Placement of Additional Signals.--A [cable operator] 
video service provider required to add the signals of qualified 
local noncommercial educational television stations to a 
[cable] 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 [cable operator] 
video service provider of a [cable] 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 [cable 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 [cable operator.] video service provider.
  (g) Conditions of Carriage.--
          (1) Content to be carried.--A [cable 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 [cable] 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. Retransmission of 
        other material in the vertical blanking interval or on 
        subcarriers shall be within the discretion of the 
        [cable operator.] video service provider.
          (2) Bandwidth and technical quality.--A [cable 
        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 [cable] 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 [cable operator] video 
        service provider unless the [cable 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 [cable] video 
        service system. For purposes of this paragraph, 
        repositioning includes (A) assignment of a qualified 
        local noncommercial educational television station to a 
        [cable] video service system channel number different 
        from the [cable] video service system channel number to 
        which the station was assigned as of March 29, 1990, 
        and (B) deletion of the station from the [cable] 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 [cable operators] video service providers under 
        this section.
          (4) Good quality signal required.--Notwithstanding 
        the other provisions of this section, a [cable 
        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 [cable] 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 [cable 
        operator] video service provider under this section 
        shall be carried on the [cable] 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 [cable 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 [cable operator] video service 
provider under this section shall be available to every 
subscriber as part of the [cable] video service system's lowest 
priced service tier that includes the retransmission of local 
commercial television broadcast signals.
  (i) Payment for Carriage Prohibited.--
          (1) In general.--A [cable 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 [cable] 
        video service system.
          (2) Distant signal exception.--Notwithstanding the 
        provisions of this section, a [cable 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 [cable 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 [cable operator] video service provider of a 
        [cable] 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 [cable 
        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 [cable operator] video service provider an 
        opportunity to present data, views, and arguments to 
        establish that the [cable 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 
        [cable operator] video service provider has complied 
        with the requirements of this section. If the 
        Commission determines that the [cable 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 
        [cable operator] video service provider to take such 
        remedial action as is necessary to meet such 
        requirements. If the Commission determines that the 
        [cable operator] video service provider has fully 
        complied with such requirements, the Commission shall 
        dismiss the complaint.
  (k) Identification of Signals.--A [cable 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 as a noncommercial 
                educational television broadcast station and 
                which is owned and operated by a public agency, 
                nonprofit foundation, corporation, or 
                association; and
                  (ii) has as its licensee an entity which is 
                eligible to receive a community service grant, 
                or any successor grant thereto, from the 
                Corporation for Public Broadcasting, or any 
                successor organization thereto, on the basis of 
                the formula set forth in section 396(k)(6)(B); 
                or
                  (B) is owned and operated by a municipality 
                and transmits predominantly noncommercial 
                programs for educational purposes.
        Such term includes (I) the translator of any 
        noncommercial educational television station with five 
        watts or higher power serving the franchise area, (II) 
        a full-service station or translator if such station or 
        translator is licensed to a channel reserved for 
        noncommercial educational use pursuant to section 
        73.606 of title 47, Code of Federal Regulations, or any 
        successor regulations thereto, and (III) such stations 
        and translators operating on channels not so reserved 
        as the Commission determines are qualified as 
        noncommercial educational stations.
          (2) Qualified local noncommercial educational 
        television station.--The term ``qualified local 
        noncommercial educational television station'' means a 
        qualified noncommercial educational television 
        station--
                  (A) which is licensed to a principal 
                community whose reference point, as defined in 
                section 76.53 of title 47, Code of Federal 
                Regulations (as in effect on March 29, 1990), 
                or any successor regulations thereto, is within 
                50 miles of the principal headend of the 
                [cable] 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 [cable] video service system.

SEC. 616. REGULATION OF CARRIAGE AGREEMENTS.

                            [47 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 [cable operators] video service providers or other 
multichannel video programming distributors and video 
programming vendors. Such regulations shall--
          (1) include provisions designed to prevent a [cable 
        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 [operator's] 
        provider's systems;
          (2) include provisions designed to prohibit a [cable 
        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;
          (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.

[SEC. 617. SALES OF CABLE SYSTEMS.

                            [47 U.S.C. 537]

  [A 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.]

                 [PART III--FRANCHISING AND REGULATION]

                          PART III_FRANCHISING

SEC. 621. GENERAL FRANCHISE REQUIREMENTS.

                            [47 U.S.C. 541]

  [(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.
  [(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--
          [(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;
          [(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
          [(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.
  [(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.
  [(4) In awarding a franchise, the franchising authority--
          [(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;
          [(B) may require adequate assurance that the cable 
        operator will provide adequate public, educational, and 
        governmental access channel capacity, facilities, or 
        financial support; and
          [(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.
          (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)[(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 [cable service] video service without a franchise on 
July 1, 1984, to obtain a franchise unless the franchising 
authority so requires.
  (3)(A) If a [cable operator] video service provider or 
affiliate thereof is engaged in the provision of 
telecommunications services--
          (i) such [cable 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 [cable 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 [cable operator] video service 
provider or an affiliate thereof.
  (C) A franchising authority may not order a [cable operator] 
video service provider or affiliate thereof--
          (i) to discontinue the provision of a 
        telecommunications service, or
          (ii) to discontinue the operation of a [cable] video 
        service system, to the extent such [cable] video 
        service system is used for the provision of a 
        telecommunications service, by reason of the failure of 
        such [cable 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 [cable 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.
  (c) Any [cable] video service system shall not be subject to 
regulation as a common carrier or utility by reason of 
providing any [cable 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 [cable] video service system, other than [cable 
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 [cable operator] video 
service provider to the extent that such [operator] provider 
provides any communication service other than [cable 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.
  [(f) No provision of this Act shall be construed to--
          [(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
          [(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.

                            [47 U.S.C. 542]

  [(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.
  [(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 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 [cable 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 [cable 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 [operator] 
        provider and the subscriber.
  [(d) In any court action under subsection (c), the 
franchising authority shall demonstrate that the rate structure 
reflects all costs of the franchise fees.
  [(e) Any cable operator shall pass through to subscribers the 
amount of any decrease in a franchise fee.
  [(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.
  [(g) For the purposes of this section--
          [(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;
          [(2) the term ``franchise fee'' does not include--
                  [(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);
                  [(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;
                  [(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;
                  [(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
                  [(E) any fee imposed under title 17, United 
                States Code.
  [(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.
  [(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 that may be bundled or functionally integrated 
        with other services, 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, property, and in-kind 
                contributions (services or goods) received 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 
                integrated 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 are sold 
                                or provided as part of a 
                                package or bundle of services 
                                or capabilities, or that are 
                                functionally integrated with 
                                video service;
                          (iv) any revenues received by a video 
                        service provider or its affiliates for 
                        the provision of directory or Internet 
                        advertising, including yellow pages, 
                        white pages, banner advertisement, and 
                        electronic publishing;
                          (v) any 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.
  [(i)] (h) Any Federal agency may not regulate the amount of 
the franchise fees paid by a [cable 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.

                            [47 U.S.C. 543]

  (a) Competition Preference; Local and Federal Regulation.--
          (1) In general.--No Federal agency or State may 
        regulate the rates for the provision of [cable 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 [cable 
        service,] video service, or any other communications 
        service provided over a [cable] video service system to 
        [cable] video service subscribers, but only to the 
        extent provided under this section. No Federal agency, 
        State, or franchising authority may regulate the rates 
        for [cable service] video service of a [cable] video 
        service system that is owned or operated by a local 
        government or franchising authority within whose 
        jurisdiction that [cable] video service system is 
        located and that is the only [cable] video service 
        system located within such jurisdiction.
          (2) Preference for competition.--If the Commission 
        finds that a [cable] video service system is subject to 
        effective competition, the rates for the provision of 
        [cable 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 [cable] video service 
        system is not subject to effective competition--
                  (A) the rates for the provision of basic 
                [cable 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 [cable] 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 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 
        [cable operator] video service provider or other 
        interested party, the Commission shall review the 
        regulation of [cable] 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 
                [cable 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 Regulations.--
          (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 [cable] video service 
        system that is not subject to effective competition 
        from rates for the basic service tier that exceed the 
        rates that would be charged for the basic service tier 
        if such [cable] 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, [cable 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 [cable] 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 [cable 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 [cable operators] video service 
                        providers and [cable] video service 
                        subscribers or any other fee, tax, or 
                        assessment of general applicability 
                        imposed by a governmental entity 
                        applied against [cable operators] video 
                        service providers or [cable] 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--
                  (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 [cable 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 [cable 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 
        [cable 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.
                          (ii) Any public, educational, and 
                        governmental access programming 
                        required by the franchise of the cable 
                        system to be provided to subscribers.
                          [(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 
                [cable 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 [cable 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 [cable 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 
                [cable] video service system that, by reason of 
                the lack of addressable converter boxes or 
                other technological limitations, does not 
                permit the [operator] 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 [cable operator] video 
                service provider after--
                          (i) the technology utilized by the 
                        [cable] 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 [cable operator,] video 
                service provider, the Commission determines 
                that compliance with the requirements of 
                subparagraph (A) would require the [cable 
                operator] video service provider to increase 
                its rates, the Commission may, to the extent 
                consistent with the public interest, grant such 
                [cable operator] video service provider a 
                waiver from such requirements for such 
                specified period as the Commission determines 
                reasonable and appropriate.
  (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 [cable] 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 [cable] video service programming 
                services charged by a [cable 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 [cable] 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 [cable] video service programming services 
        are unreasonable under paragraph (1)(A), the Commission 
        shall consider, among other factors--
                  (A) the rates for similarly situated [cable] 
                video service systems offering comparable 
                [cable] 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 [cable] video service 
                systems, if any, that are subject to effective 
                competition;
                  (C) the history of the rates for [cable] 
                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 
                [cable] video service programming, [cable] 
                video service equipment, and [cable 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 
                [cable] video service system, including the 
                quality and costs of the customer service 
                provided by the [cable] video service system; 
                and
                  (F) the revenues (if any) received by a 
                [cable 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 [cable] video service programming 
                services concerned.
          (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 [cable] 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 [cable] video service 
        programming services provided after March 31, 1999.
  (d) Uniform Rate Structure Required.--A [cable operator] 
video service provider shall have a rate structure, for the 
provision of [cable service,] video service, that is uniform 
throughout the geographic area in which [cable service] video 
service is provided over its [cable] video service system. This 
subsection does not apply to (1) a [cable operator] video 
service provider with respect to the provision of [cable 
service] video service over its [cable] video service system in 
any geographic area in which the video programming services 
offered by the [operator] 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 [cable operator] video service provider of a [cable] 
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 [cable] 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 [cable service,] video 
        service, except that no Federal agency, State, or 
        franchising authority may prohibit a [cable 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 
        [cable service] video service by hearing impaired 
        individuals.
  (f) Negative Option Billing Prohibited.--A [cable 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 [cable 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 [cable operators] video service providers 
to file with the Commission or a franchising authority, as 
appropriate, 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 [cable] 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 [cable operator] video service provider providing for the 
regulation of basic [cable 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 
[cable service] video service and other [cable] video service 
programming, and for converter boxes, remote control units, and 
other equipment, of--
          (1) [cable] video service systems that the Commission 
        has found are subject to effective competition under 
        subsection (a)(2), compared with
          (2) [cable] 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 [cable 
                service] video service of a [cable] 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
                  (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 [cable operator] video service 
                provider which is providing [cable 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 [cable operator] video service 
                provider in that area.
          (2) The term ``cable programming service'' means any 
        video programming provided over a [cable] 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 [cable operator] video service 
        provider with respect to--
                  (A) [cable] 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 [operator] provider 
        services 50,000 or fewer subscribers.
          (2) Definition of small [cable operator] video 
        service provider.--For purposes of this subsection, the 
        term ``small [cable operator] video service provider'' 
        means a [cable 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 [cable] 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 
[cable] 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.

                            [47 U.S.C. 544]

  [(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.
  [(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--
          [(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
          [(2) subject to section 625, may enforce any 
        requirements contained within the franchise--
                  [(A) for facilities and equipment; and
                  [(B) for broad categories of video 
                programming or other services.
  [(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.]
  [(d)] (a)(1) Nothing in this title shall be construed as 
prohibiting a franchising authority and a [cable operator] 
video service provider from specifying, in a franchise or 
renewal thereof, that certain [cable services] video services 
shall not be provided or shall be provided subject to 
conditions, if such [cable 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 [cable 
operator] video service provider shall provide (by sale or 
lease) a device by which the subscriber can prohibit viewing of 
a particular [cable service] video service during periods 
selected by that subscriber.
  (3)(A) If a [cable operator] video service provider provides 
a premium channel without charge to [cable] video service 
subscribers who do not subscribe to such premium channel, the 
[cable operator] video service provider shall, not later than 
30 days before such premium channel is provided without 
charge--
          (i) notify all [cable] video service subscribers that 
        the [cable operator] video service provider plans to 
        provide a premium channel without charge;
          (ii) notify all [cable] video service subscribers 
        when the [cable operator] video service provider plans 
        to offer a premium channel without charge;
          (iii) notify all [cable] 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.
  [(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 system's use of any type of subscriber 
equipment or any transmission technology.]
  [(f)] (b)(1) Any Federal agency, State, or franchising 
authority may not impose requirements regarding the provision 
or content of [cable 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.
  [(g)] (c) Notwithstanding any such rule, regulation, or 
order, each [cable operator] video service provider shall 
comply with such standards as the Commission shall prescribe to 
ensure that viewers of video programming on [cable] 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.
  [(h) A franchising authority may require a cable operator to 
do any one or more of the following:
          [(1) Provide 30 days' advance written notice of any 
        change in channel assignment or in the video 
        programming service provided over any such channel.
          [(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.]
  [(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 [cable] video service 
system terminates service, of any cable or wire installed by 
the [cable operator] video service provider within the premises 
of such subscriber.A

SEC. 624A. CONSUMER ELECTRONICS EQUIPMENT COMPATIBILITY.

                            [47 U.S.C. 544a]

  (a) Findings.--The Congress finds that--
          (1) new and recent models of television receivers and 
        video [cassette] recorders often contain premium 
        features and functions that are disabled or inhibited 
        because of [cable] video service scrambling, encoding, 
        or encryption technologies and devices, including 
        converter boxes and remote control devices required by 
        [cable 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 [cassette] recorders with new and 
        innovative features and functions;
          (3) [cable 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
          (4) compatibility among televisions, video [cassette] 
        recorders, and [cable] 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 [cable] video 
        service industry and the consumer electronics industry, 
        shall report to Congress on means of assuring 
        compatibility between televisions and video [cassette] 
        recorders and [cable] video service systems, consistent 
        with the need to prevent theft of [cable service,] 
        video service, so that [cable] video service 
        subscribers will be able to enjoy the full benefit of 
        both the programming available on [cable] video service 
        systems and the functions available on their 
        televisions and video [cassette] recorders. Within 180 
        days after the date of submission of the report 
        required by this subsection, the Commission shall issue 
        such regulations as are necessary to assure such 
        compatibility.
          (2) Scrambling and encryption.--In issuing the 
        regulations referred to in paragraph (1), the 
        Commission shall determine whether and, if so, under 
        what circumstances to permit [cable] video service 
        systems to scramble or encrypt signals or to restrict 
        [cable] 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 [cassette] 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 [cable] 
                video service converters unrelated to the 
                descrambling or decryption of [cable] video 
                service television signals;
                  (B) the costs and benefits to consumers of 
                imposing compatibility requirements on [cable 
                operators] video service providers and 
                television manufacturers in a manner that, 
                while providing effective protection against 
                theft or unauthorized reception of [cable 
                service,] video service, will minimize 
                interference with or nullification of the 
                special functions of subscribers' television 
                receivers or video [cassette] recorders, 
                including functions that permit the 
                subscriber--
                          (i) to watch a program on one channel 
                        while simultaneously using a video 
                        [cassette] recorder to [tape] record a 
                        program on another channel;
                          (ii) to use a video [cassette] 
                        recorder to [tape] record two 
                        consecutive programs that appear on 
                        different channels; and
                          (iii) to use advanced television 
                        picture generation and display 
                        features; and
                  (C) the need for [cable operators] video 
                service providers to protect the integrity of 
                the signals transmitted by the [cable 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 
                [cassette] recorder must comply in order to be 
                sold as ``cable compatible'' or ``cable 
                ready'';
                  (B) to require [cable 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 [cassette] 
                        recorders, including functions that 
                        permit subscribers--
                                  (I) to watch a program on one 
                                channel while simultaneously 
                                using a video [cassette] 
                                recorder to [tape] record a 
                                program on another channel;
                                  (II) to use a video 
                                [cassette] recorder to [tape] 
                                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 [cassette] recorders without 
                        passing through the converter box;
                  (C) to promote the commercial availability, 
                from [cable operators] video service providers 
                and retail vendors that are not affiliated with 
                [cable] 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 [cassette] recorders, and 
                [cable] 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 [cable 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 [cable operator;] 
                        video service provider; and
                          (ii) to specify the types of remote 
                        control units that are compatible with 
                        the converter box supplied by the 
                        [cable operator;] video service 
                        provider; and
                  (F) to prohibit a [cable operator] video 
                service provider from taking any action that 
                prevents or in any way disables the converter 
                box supplied by the [cable 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 [cable] video service systems, television receivers, 
video [cassette] recorders, and similar technology.

[SEC. 625. MODIFICATION OF FRANCHISE OBLIGATIONS.

                            [47 U.S.C. 545]

  [(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--
          [(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
          [(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.
  [(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.
  [(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.
  [(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--
          [(A) it is commercially impracticable for the 
        operator to comply with such requirement; and
          [(B) the terms of the modification requested are 
        appropriate because of commercial impracticability.
  [(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.
  [(c) Notwithstanding subsections (a) and (b), a cable 
operator may, upon 30 days' advance notice to the franchising 
authority, rearrange, replace, or remove a particular cable 
service required by the franchise if--
          [(1) such service is no longer available to the 
        operator; or
          [(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--
                  [(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
                  [(B) has not been specifically compensated 
                for through a rate increase or other 
                adjustment.
  [(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.
  [(e) A cable operator may not obtain modification under this 
section of any requirement for services relating to public, 
educational, or governmental access.
  [(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.

[SEC. 626. RENEWAL.

                            [47 U.S.C. 546]

  [(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.
  [(2) The cable operator may not invoke the renewal procedures 
set forth in subsections (b) through (g) unless--
          [(A) such a proceeding is requested by the cable 
        operator by timely submission of such notice; or
          [(B) such a proceeding is commenced by the 
        franchising authority on its own initiative.
  [(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.
  [(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.
  [(3) The franchising authority may establish a date by which 
such proposal shall be submitted.
  [(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--
          [(A) the cable operator has substantially complied 
        with the material terms of the existing franchise and 
        with applicable law;
          [(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;
          [(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
          [(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.
  [(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.
  [(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.
  [(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 inability to cure and the 
franchising authority fails to object within a reasonable time 
after receipt of such notice.
  [(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.
  [(2) The court shall grant appropriate relief if the court 
finds that--
          [(A) any action of the franchising authority, other 
        than harmless error, is not in compliance with the 
        procedural requirements of this section; or
          [(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).
  [(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.
  [(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.
  [(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).
  [(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--
          (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.

[SEC. 627. CONDITIONS OF SALE.

                            [47 U.S.C. 547]

  [(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--
          [(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
          [(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.
  [(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--
          [(1) at an equitable price, or
          [(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. [628.] 626. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO 
                    PROGRAMMING DISTRIBUTION.

                            [47 U.S.C. 548]

  (a) Purpose.--The purpose of this section is to promote the 
public interest, convenience, and necessity by increasing 
competition and diversity in the multichannel video programming 
market, to increase the availability of satellite [cable] 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.
  (b) Prohibition.--It shall be unlawful for a [cable 
operator,] video service provider, a satellite [cable] video 
service programming vendor in which a [cable 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 [cable] 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 [cable operator] video service provider which 
                has an attributable interest in a satellite 
                [cable] 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 [cable] 
                video service programming or satellite 
                broadcast programming to any unaffiliated 
                multichannel video programming distributor;
                  (B) prohibit discrimination by a satellite 
                [cable] video service programming vendor in 
                which a [cable 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 [cable] video service programming or 
                satellite broadcast programming among or 
                between [cable] video service systems, [cable 
                operators,] video service providers, or other 
                multichannel video programming distributors, or 
                their agents or buying groups; except that such 
                a satellite [cable] video service programming 
                vendor in which a [cable 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 [cable] 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 benefits reasonably 
                        attributable to the number of 
                        subscribers served by the distributor; 
                        or
                          (iv) entering into an exclusive 
                        contract that is permitted under 
                        subparagraph (D);
                  (C) prohibit practices, understandings, 
                arrangements, and activities, including 
                exclusive contracts for satellite [cable] video 
                service programming or satellite broadcast 
                programming between a [cable operator] video 
                service provider and a satellite [cable] video 
                service programming vendor or satellite 
                broadcast programming vendor, that prevent a 
                multichannel video programming distributor from 
                obtaining such programming from any satellite 
                [cable] video service programming vendor in 
                which a [cable operator] video service provider 
                has an attributable interest or any satellite 
                broadcast programming vendor in which a [cable 
                operator] video service provider has an 
                attributable interest for distribution to 
                persons in areas not served by a [cable 
                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 [cable operator,] video 
                service provider, prohibit exclusive contracts 
                for satellite [cable] video service programming 
                or satellite broadcast programming between a 
                [cable operator] video service provider and a 
                satellite [cable] video service programming 
                vendor in which a [cable operator] video 
                service provider has an attributable interest 
                or a satellite broadcast programming vendor in 
                which a [cable 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 [cable] 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 [cable operator] video 
        service provider:
                  (A) the effect of such exclusive contract on 
                the development of competition in local and 
                national multichannel video programming 
                distribution markets;
                  (B) the effect of such exclusive contract on 
                competition from multichannel video programming 
                distribution technologies other than [cable] 
                video service;
                  (C) the effect of such exclusive contract on 
                the attraction of capital investment in the 
                production and distribution of new satellite 
                [cable] 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 [10 years 
        after the date of enactment of this section,] on 
        October 5, 2012, unless the Commission finds, in a 
        proceeding conducted during the [last 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 with respect to satellite [cable] 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 [cable 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 [cable] 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 [cable] video service 
        programming vendor'' means a person engaged in the 
        production, creation, or wholesale distribution for 
        sale of satellite [cable] 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 [cable 
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 [cable] video service 
programming vendor in which a [cable operator] video service 
provider has an attributable interest shall apply to any 
satellite [cable] 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 [cable] video 
service programming vendor (or its parent company).

SEC. [629.] 627. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.

                            [47 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, 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 [operator'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.
  (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.

                            [47 U.S.C. 551]

  (a)(1) At the time of entering into an agreement to provide 
any [cable service] video service or other service to a 
subscriber and at least once a year thereafter, a [cable 
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 [cable 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 [cable 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 [cable operator] video service provider 
        that are used in the provision of [cable service;] 
        video service; and
          (C) the term ``[cable operator] video service 
        provider'' includes, in addition to persons within the 
        definition of [cable operator] video service provider 
        in section 602, any person who (i) is owned or 
        controlled by, or under common ownership or control 
        with, a [cable operator,] video service provider, and 
        (ii) provides any wire or radio communications service.
  (b)(1) Except as provided in paragraph (2), a [cable 
operator] video service provider shall not use the [cable] 
video service system to collect personally identifiable 
information concerning any subscriber without the prior written 
or electronic consent of the subscriber concerned.
  (2) A [cable operator] video service provider may use the 
[cable] video service system to collect such information in 
order to--
          (A) obtain information necessary to render a [cable 
        service] video service or other service provided by the 
        [cable operator] video service provider to the 
        subscriber; or
          (B) detect unauthorized reception of [cable] video 
        service communications.
  (c)(1) Except as provided in paragraph (2), a [cable 
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 [cable operator.] video service provider.
  (2) A [cable 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 [cable service] video 
        service or other service provided by the [cable 
        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 [cable service] video service or 
        other service, if--
                  (i) the [cable 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 [cable 
                        service] video service or other service 
                        provided by the [cable operator,] video 
                        service provider, or
                          (II) the nature of any transaction 
                        made by the subscriber over the [cable] 
                        video service system of the [cable 
                        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 [cable] video service subscriber 
        selection of video programming from a [cable operator.] 
        video service provider.
  (d) A [cable] video service subscriber shall be provided 
access to all personally identifiable information regarding 
that subscriber which is collected and maintained by a [cable 
operator.] video service provider. Such information shall be 
made available to the subscriber at reasonable times and at a 
convenient place designated by such [cable operator.] video 
service provider. A [cable] video service subscriber shall be 
provided reasonable opportunity to correct any error in such 
information.
  (e) A [cable 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 [cable 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 [cable] 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 [cable] 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.

[SEC. 632. CONSUMER PROTECTION AND CUSTOMER SERVICE.

                            [47 U.S.C. 552]

  [(a) Franchising Authority Enforcement.--A franchising 
authority may establish and enforce--
          [(1) customer service requirements of the cable 
        operator ; and
          [(2) construction schedules and other construction-
        related requirements, including construction-related 
        performance requirements, of the cable operator .
  [(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 
operators may fulfill their customer service requirements. Such 
standards shall include, at a minimum, requirements governing--
          [(1) cable system office hours and telephone 
        availability;
          [(2) installations, outages, and service calls; and
          [(3) communications between the cable operator and 
        the subscriber (including standards governing bills and 
        refunds).
  [(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.
  [(d) Consumer Protection Laws and Customer Service 
Agreements.--
          [(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.
          [(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 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 [CABLE] VIDEO SERVICE.

                            [47 U.S.C. 553]

  (a)(1) No person shall intercept or receive or assist in 
intercepting or receiving any communications service offered 
over a [cable] video service system, unless specifically 
authorized to do so by a [cable 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 [cable] 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 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 [cable service] video service 
or other communications service.

SEC. 634. EQUAL EMPLOYMENT OPPORTUNITY.

                            [47 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 [cable] 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 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 full-time 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 
part-time 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 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. 
In addition, any person liable for such penalty may also have 
any license under this Act for [cable] 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 ``[cable 
operator] video service provider'' includes any [operator] 
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 [operator] provider of a 
system which, in the aggregate, serves fewer than 50 
subscribers.
  (3) In any case in which a [cable operator] video service 
provider is the owner of a multiple unit dwelling, the 
requirements of this section shall only apply to such [cable 
operator] video service provider with respect to its employees 
who are primarily engaged in [cable] 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 [cable 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 [cable 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 [cable 
operator,] video service provider, whether operating pursuant 
to a franchise granted before, on, or after the date of the 
enactment of this section.

SEC. 635. JUDICIAL PROCEEDINGS.

                            [47 U.S.C. 555]

  (a) Any [cable 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 [cable] 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. [635A.] 636 LIMITATION OF FRANCHISING AUTHORITY LIABILITY.

                            [47 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 [cable 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 [cable 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.
  (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 
[cable 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.

[SEC. 636. COORDINATION OF FEDERAL, STATE, AND LOCAL AUTHORITY.

                            [47 U.S.C. 556]

  [(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.
  [(b) Nothing in this title shall be construed to restrict a 
State from exercising jurisdiction with regard to cable 
services consistent with this title.
  [(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.
  [(d) For purposes of this section, the term ``State'' has the 
meaning given such term in section 3.

[SEC. 637. EXISTING FRANCHISES.

                            [47 U.S.C. 557]

  [(a) The provisions of--
          [(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
          [(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.
  [(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. [638.] 637.  CRIMINAL AND CIVIL LIABILITY.

                            [47 U.S.C. 558]

  Nothing in this title shall be deemed to affect the criminal 
or civil liability of [cable] video service programmers or 
[cable 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 [cable 
operators] video service providers shall not incur any such 
liability for any program carried on any channel designated for 
public, educational, governmental use or on any other channel 
obtained under section 612 or under similar arrangements unless 
the program involves obscene material.

SEC. [639.] 638. OBSCENE PROGRAMMING.

                            [47 U.S.C. 559]

  Whoever transmits over any [cable] 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. [640.] 639. SCRAMBLING OF [CABLE] VIDEO CHANNELS FOR 
                    NONSUBSCRIBERS.

                            [47 U.S.C. 560]

  (a) Subscriber Request.--Upon request by a [cable service] 
video service subscriber, a [cable 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. [641.] 640. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE 
                    PROGRAMMING.

                            [47 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 complaint 
        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, 
IP-enabled 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.
  (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--
                  (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 [cable 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.--
          (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.
          (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--
          (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 [and 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;
                  (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
          (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 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 telecommunications 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 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.

                                  
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