U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

69–010 

" ! SENATE 115TH CONGRESS

1st Session 

REPORT

2017

115–61 

Calendar No. 77 

FEDERAL COMMUNICATIONS COMMISSION 

CONSOLIDATED REPORTING ACT OF 2017 

R E P O R T 

OF THE

COMMITTEE ON COMMERCE, SCIENCE, AND 

TRANSPORTATION 

ON

S. 174 

MAY 11, 2017.—Ordered to be printed 


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(II) 

SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION 

ONE HUNDRED FIFTEENTH CONGRESS

FIRST SESSION

JOHN THUNE, South Dakota, Chairman 

ROGER F. WICKER, Mississippi BILL NELSON, Florida 

ROY BLUNT, Missouri MARIA CANTWELL, Washington 

TED CRUZ, Texas AMY KLOBUCHAR, Minnesota 

DEB FISCHER, Nebraska RICHARD BLUMENTHAL, Connecticut 

JERRY MORAN, Kansas BRIAN SCHATZ, Hawaii 

DAN SULLIVAN, Alaska EDWARD J. MARKEY, Massachusetts 

DEAN HELLER, Nevada CORY A. BOOKER, New Jersey 

JAMES M. INHOFE, Oklahoma TOM UDALL, New Mexico 

MIKE LEE, Utah GARY C. PETERS, Michigan 

RON JOHNSON, Wisconsin TAMMY BALDWIN, Wisconsin 

SHELLEY MOORE CAPITO, West Virginia TAMMY DUCKWORTH, Illinois 

CORY GARDNER, Colorado MARGARET WOOD HASSAN, New Hampshire 

TODD C. YOUNG, Indiana CATHERINE CORTEZ MASTO, Nevada 

NICK ROSSI, Staff Director 

ADRIAN ARNAKIS, Deputy Staff Director 

JASON VAN BEEK, General Counsel 

KIM LIPSKY, Democratic Staff Director 

CHRISTOPHER DAY, Democratic Deputy Staff Director 


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Calendar No. 77 

115TH CONGRESS REPORT " ! SENATE 1st Session 115–61 

FEDERAL COMMUNICATIONS COMMISSION 

CONSOLIDATED REPORTING ACT OF 2017 

MAY 11, 2017.—Ordered to be printed 

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

Transportation, submitted the following 

R E P O R T 

[To accompany S. 174] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Commerce, Science, and Transportation, to 

which was referred the bill (S. 174) to amend the Communications 

Act of 1934 to consolidate the reporting obligations of the Federal 

Communications Commission in order to improve congressional 

oversight and reduce reporting burdens, having considered the 

same, reports favorably thereon without amendment and recommends that the bill do pass. 

PURPOSE OF THE BILL

The purpose of this legislation, as reported, is to consolidate several reports of the Federal Communications Commission (FCC or 

Commission) into a single biennial report on the state of the communications marketplace. The new biennial consolidated report 

would provide members of Congress relevant and timely marketplace information to improve communications-related policymaking 

and oversight. 

BACKGROUND AND NEEDS

Changes in technology, consumer behavior, and the law, including regulations, have facilitated convergence of what were once distinct modes of communication, including wireline telephone, cable 

television, broadcast television and radio, and mobile voice and 

data. 


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Federal communications laws have been enacted and amended at 

different points in time, often to address or anticipate particular 

changes in industry structure and consumer expectations. Many 

communications laws have included FCC reporting requirements 

that reflect each law’s discrete policy goals, including assessments 

of sector-specific competition. 

Under current law, the FCC is directed to annually prepare separate reports to Congress on video competition, satellite competition, 

the competitive effects of satellite privatization, broadband deployment, international broadband deployment, cable television pricing, 

and wireless competition. In addition, the Commission is required 

to produce a triennial report on barriers to market entry for small 

businesses, as well as yearly reports regarding telephone penetration, telephone subscribership, and pricing among telecommunications services. 

These reports each offer meaningful information about competition among and deployment of voice, video, and advanced communications services. The varied timing and isolated subject focus of 

the existing reports, however, may not provide policymakers with 

a complete picture that could be offered by a single, timely report 

on competition and deployment in the communications marketplace 

as a whole. Also, the many existing reports collectively create a 

burden on the Commission that could be lessened and managed 

more efficiently through report consolidation. S. 174 would reduce 

reporting burdens on the FCC and direct it to holistically analyze 

the communications marketplace, including rural, urban, residential, and business markets, rather than continue to report separately on sector-specific and technology-specific bases. 

The consolidated biennial report established by S. 174 would replace the multiple, sector-specific reports currently required by 

statute, thereby allowing the Commission to redirect its limited resources and providing congressional policymakers with more useful 

information with which to judge the efficacy of existing statutes 

and the potential value of proposed changes to the law. 

SUMMARY OF PROVISIONS

S. 174 would amend the Communications Act of 1934 to require 

the FCC to publish and submit to Congress a communications marketplace report in the last quarter of every even-numbered year. 

The new consolidated report would be required to assess competition, deployment, and barriers to entry and expansion present in 

the communications marketplace. The FCC also would be required 

to include in the consolidated report an agenda for addressing the 

challenges and opportunities identified by its assessments over the 

next 2 years. 

S. 174, in turn, repeals the ORBIT Act Report, the Satellite Competition Report, the Status of Competition in the Market for the 

Delivery of Video Programming Report, the Triennial Report Identifying and Eliminating Market Entry Barriers for Entrepreneurs 

and Other Small Businesses, and the State of Competitive Market 

Conditions With Respect to Commercial Mobile Radio Services Report. The legislation also would direct that the Report on Cable Industry Prices and the International Broadband Data Report be included in the new consolidated report. 


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LEGISLATIVE HISTORY

S. 174 was introduced by Senators Heller and Schatz on January 

17, 2017. During an Executive Session on January 24, 2017, the 

Committee, by voice vote, ordered the bill to be reported favorably 

without amendment. 

H.R. 599, a bill similar to S. 174, was introduced in the House 

of Representatives by Representative Steve Scalise (LA) on January 23, 2017. The House of Representatives passed the bill by voice 

vote on January 23, 2017. 

In the 114th Congress, on February 24, 2015, during an Executive Session, the Committee ordered S. 253 to be reported favorably 

with an amendment (in the nature of a substitute) by voice vote. 

The Committee reported version of S. 253, which was introduced 

by Senator Heller, is identical to the S. 174 measure introduced in 

the 115th Congress. A similar piece of legislation, H.R. 734, was introduced by Representative Steve Scalise on February 4, 2015. The 

House of Representatives passed the bill on February 24, 2015, by 

a vote of 411 to 0. 

ESTIMATED COSTS

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

Rules of the Senate and section 403 of the Congressional Budget 

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

prepared by the Congressional Budget Office: 

S. 174—Federal Communications Commission Consolidated Reporting Act of 2017 

S. 174 would require the Federal Communications Commission 

(FCC) to prepare a biennial report for the Congress that assesses 

certain characteristics of the communications industry. The report 

would analyze the state of competition in the markets for voice, 

video, audio, and data services; the availability of advanced communications capabilities; and barriers to competitive entry or expansion in the communications marketplace. S. 174 also would relieve the FCC of requirements to prepare certain other reports on 

topics ranging from access to satellite services to prices for cable 

services. In all, the bill would eliminate more than 20 reports and 

notices, including some that remain in current law even though the 

deadlines for their completion have passed. 

On the basis of an analysis of information from the FCC, CBO 

estimates that implementing the provisions of S. 174 would not 

have a significant effect on the agency’s costs. Any additional expenses the FCC would incur to prepare the new assessment of the 

communications industry would be offset by a reduction in costs 

that otherwise would have been incurred for reports that would be 

eliminated under the bill. Moreover, under current law, the FCC is 

authorized to collect fees sufficient to offset the costs of its regulatory activities each year; therefore, CBO estimates that the net 

cost to the FCC to implement S. 174 would be negligible, assuming 

appropriation actions consistent with that authority. 

Enacting S. 174 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. CBO estimates 

that enacting S. 174 would not increase net direct spending or onVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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budget deficits in any of the four consecutive 10-year periods beginning in 2028. 

S. 174 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would not 

affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Stephen Rabent. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

REGULATORY IMPACT

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 number of persons covered by S. 174 should be consistent 

with the current levels of individuals impacted under the provisions of law that are addressed in the bill. 

ECONOMIC IMPACT

S. 174 would not have an adverse impact on the Nation’s economy. 

PRIVACY

S. 174 would have no impact on the personal privacy of U.S. citizens. 

PAPERWORK

S. 174 would not significantly increase paperwork requirements 

for individuals and businesses. 

CONGRESSIONALLY DIRECTED SPENDING

In compliance with paragraph 4(b) of rule XLIV of the Standing 

Rules of the Senate, the Committee provides that no provisions 

contained in the bill, as reported, meet the definition of congressionally directed spending items under the rule. 

SECTION-BY-SECTION ANALYSIS

Section 1. Short title. 

Section 1 would provide that the legislation may be cited as the 

‘‘Federal Communications Commission Consolidated Reporting Act 

of 2017’’. 

Section 2. Communications marketplace report. 

Section 2 would amend title I of the Communications Act of 1934 

(47 U.S.C. 151 et seq.) by adding a new section 13. 

New section 13(a) would require the FCC to publish and submit 

to the Committee on Commerce, Science, and Transportation of the 

Senate and the Committee on Energy and Commerce of the House 

of Representatives in the last quarter of every even-numbered year 

a report on the state of the communications marketplace. 


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New section 13(b) would require the FCC to include the following 

in each report: an assessment of the state of competition in the 

communications marketplace; an assessment of the state of deployment of communications capabilities, regardless of the technology 

used for such deployment; an assessment of barriers to competitive 

entry into the communications marketplace or competitive expansion of existing providers of communications services; and a description of the agenda of the Commission for the next 2 year period for addressing the challenges and opportunities identified in 

the report. 

New section 13(c) would provide for an extension of the report 

deadline if the Senate confirms the Chairman of the FCC during 

the third or fourth quarter of an even-numbered year. In such an 

instance, the report may be published and submitted by March 1 

of the following odd-numbered year. 

New section 13(d) would require, as part of the report, that the 

FCC consider all forms of competition, including intermodal, facilities-based, and Internet-based competition, in its assessment of 

competition and compile a list of geographic areas not served by 

any provider of advanced telecommunications capability in its assessment of deployment. The new section also would require the 

FCC to consider market entry barriers for entrepreneurs and other 

small businesses in its assessments of competition and barriers to 

competitive entry and expansion. 

New section 13(e) would require the Commission to notify, by letter, the Committee on Commerce, Science, and Transportation of 

the Senate and the Committee on Energy and Commerce of the 

House of Representatives of any delay in the publication of the report. Such notice would be required to be made within 7 days following the deadline and every 60 days until publication. 

Section 3. Consolidation of redundant reports; conforming amendments. 

Section 3(a) would amend the Communications Satellite Act of 

1962 (47 U.S.C. 765e) to repeal the ORBIT Act Report. 

Section 3(b) would amend Public Law 109–34 (47 U.S.C. 703) to 

repeal the Satellite Competition Report. 

Section 3(c) would amend section 103(b)(1) of the Broadband 

Data Improvement Act (47 U.S.C. 1303(b)(1)) to require the FCC 

to include the International Broadband Data Report in the new biennial report established by the underlying bill. 

Section 3(d) would amend section 628 of the Communications Act 

of 1934 (47 U.S.C. 548) to repeal the Status of Competition in the 

Market for the Delivery of Video Programming Report. 

Section 3(e) would amend section 623(k) of the Communications 

Act of 1934 (47 U.S.C. 543(k)) to require the Commission to include 

the Report on Cable Industry Prices in the new biennial report established by the underlying bill. While the legislation would reduce 

the frequency of FCC cable industry price reporting obligations 

from annual to biennial, the Committee intends that the Commission continue to provide information identified by section 623(k), 

separately for each year. 

Section 110 of Public Law 113–200, the STELA Reauthorization 

Act of 2014, amended section 623(k) of the Communications Act of 

1934 to direct the FCC to include in its Report on Cable Industry 


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Prices the aggregate average total amount paid by cable systems 

in compensation under section 325 of the Communication Act of 

1934. The Committee intends that the FCC’s reporting under this 

requirement show how compensation under section 325 has 

changed or may change over time. The Committee therefore intends that the FCC include compensation under section 325 for as 

many prior periods as it determines such information is attainable 

without unnecessary burden. 

Section 3(f) would amend section 257 of the Communications Act 

of 1934 (47 U.S.C. 257) to repeal the Triennial Report Identifying 

and Eliminating Market Entry Barriers for Entrepreneurs and 

Other Small Businesses. 

Section 3(g) would amend section 332 of the Communications Act 

of 1934 (47 U.S.C. 332) to repeal the State of Competitive Market 

Conditions With Respect to Commercial Mobile Radio Services report. 

Section 3(h) would amend section 4 of the Communications Act 

of 1934 (47 U.S.C. 154) to repeal the reference to annual reports 

terminated by prior legislation. 

Section 3(i) would strike from the Communications Act of 1934 

outdated or already repealed reports, including the Report on Competition between Wire Telephone and Wire Telegraph Providers, 

the 1997 Report on Spectrum Auctions, and several reports already 

repealed by the Federal Reports Elimination and Sunset Act of 

1995. It also would make necessary conforming amendments to 

various laws to reflect changes made by the underlying bill. 

Section 4. Effect on authority. 

Section 4 would provide that nothing in the underlying legislation be construed to expand or contract the authority of the FCC. 

Section 5. Other reports. 

Section 5 would provide that nothing in the underlying legislation be construed to prohibit or otherwise prevent the Commission 

from producing any additional reports otherwise within its authority. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

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

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

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

COMMUNICATIONS SATELLITE ACT OF 1962 

[47 U.S.C. 701 et seq.] 

øSEC. 646. REPORTS TO CONGRESS. 

[47 U.S.C. 765e] 

ø(a) ANNUAL REPORTS.—The President and the Commission shall 

report to the Committees on Commerce and International Relations 

of the House of Representatives and the Committees on Commerce, 

Science, and Transportation and Foreign Relations of the Senate 

within 90 calendar days of the enactment of this title, and not less 

than annually thereafter, on the progress made to achieve the obVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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jectives and carry out the purposes and provisions of this title. 

Such reports shall be made available immediately to the public. 

ø(b) CONTENTS OF REPORTS.—The reports submitted pursuant to 

subsection (a) shall include the following: 

ø(1) Progress with respect to each objective since the most 

recent preceding report. 

ø(2) Views of the Parties with respect to privatization. 

ø(3) Views of industry and consumers on privatization. 

ø(4) Impact privatization has had on United States industry, 

United States jobs, and United States industry’s access to the 

global marketplace.¿ 

INTERNATIONAL TELECOMMUNICATIONS SATELLITE 

ORGANIZATION PRIVATIZATION REQUIREMENTS REVISION 

[Public Law 109—34; 119 Stat. 377] 

øSEC. 4. SATELLITE SERVICE REPORT. 

[47 U.S.C. 703] 

ø(a) ANNUAL REPORT.—The Federal Communications Commission shall review competitive market conditions with respect to domestic and international satellite communications services and 

shall include in an annual report an analysis of those conditions. 

The Commission shall transmit a copy of the report to the Senate 

Committee on Commerce, Science, and Transportation and the 

House of Representatives Committee on Energy and Commerce. 

ø(b) CONTENT.—The Commission shall include in the report— 

ø(1) an identification of the number and market share of 

competitors in domestic and international satellite markets; 

ø(2) an analysis of whether there is effective competition in 

the market for domestic and international satellite services; 

and 

ø(3) a list of any foreign nations in which legal or regulatory 

practices restrict access to the market for satellite services in 

such nation in a manner that undermines competition or favors a particular competitor or set of competitors.¿ 

BROADBAND DATA IMPROVEMENT ACT 

[47 U.S.C. 1301 et seq.] 

SEC. 103. IMPROVING FEDERAL DATA ON BROADBAND. 

[47 U.S.C. 1303] 

(a) [Omitted] 

(b) INTERNATIONAL COMPARISON.— 

(1) IN GENERAL.—As part of øthe assessment and report required by section 706 of the Telecommunications Act of 1996 

(47 U.S.C. 157 note), the Federal Communications Commission¿ its report under section 13 of the Communications Act of 

1934, the Federal Communications Commission shall include 

information comparing the extent of broadband service capability (including data transmission speeds and price for 

broadband service capability) in a total of 75 communities in 

at least 25 countries abroad for each of the data rate benchmarks for broadband service utilized by the Commission to reflect different speed tiers. 


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(2) CONTENTS.—The Commission shall choose communities 

for the comparison under this subsection in a manner that will 

offer, to the extent possible, communities of a population size, 

population density, topography, and demographic profile that 

are comparable to the population size, population density, topography, and demographic profile of various communities 

within the United States. The Commission shall include in the 

comparison under this subsection— 

(A) a geographically diverse selection of countries; and 

(B) communities including the capital cities of such 

countries. 

(3) SIMILARITIES AND DIFFERENCES.—The Commission shall 

identify relevant similarities and differences in each community, including their market structures, the number of competitors, the number of facilities-based providers, the types of technologies deployed by such providers, the applications and services those technologies enable, the regulatory model under 

which broadband service capability is provided, the types of applications and services used, business and residential use of 

such services, and other media available to consumers. 

* * * * * * * 

COMMUNICATIONS ACT OF 1934 

[47 U.S.C. 151 et seq.] 

SEC. 4. FEDERAL COMMUNICATIONS COMMISSION. 

[47 U.S.C. 154] 

(a) NUMBER OF COMMISSIONERS; APPOINTMENT.—The Federal 

Communications Commission (in this Act referred to as the ‘‘Commission’’) shall be composed of five commissioners appointed by the 

President, by and with the advice and consent of the Senate, one 

of whom the President shall designate as chairman. 

(b) QUALIFICATIONS.— (1) Each member of the Commission shall be a citizen of the 

United States. 

(2)(A) No member of the Commission or person employed by 

the Commission shall— 

(i) be financially interested in any company or other 

entity engaged in the manufacture or sale of telecommunications equipment which is subject to regulation by the Commission; 

(ii) be financially interested in any company or other 

entity engaged in the business of communication by 

wire or radio or in the use of the electromagnetic spectrum; 

(iii) by financially interested in any company or 

other entity which controls any company or other entity specified in clause (i) or clause (ii), or which derives 

a significant portion of its total income from ownership 

of stocks, bonds, or other securities of any such company or other entity; or 

(iv) be employed by, hold any official relation to, or 

own any stocks, bonds, or other securities of, any person significantly regulated by the Commission under 

this Act; 


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except that the prohibitions established in this subparagraph 

shall apply only to financial interests in any company or other 

entity which has a significant interest in communications, 

manufacturing, or sales activities which are subject to regulation by the Commission. 

(B)(i) The Commission shall have authority to waive, 

from time to time, the application of the prohibitions established in subparagraph (A) to persons employed by the 

Commission if the Commission determines that the financial interests of a person which are involved in a particular 

case are minimal, except that such waiver authority shall 

be subject to the provisions of section 208 of title 18, 

United States Code. The waiver authority established in 

this subparagraph shall not apply with respect to members 

of the Commission. 

(ii) In any case in which the Commission exercises 

the waiver authority established in this subparagraph, 

the Commission shall publish notice of such action in 

the Federal Register øand shall furnish notice of such 

action to the appropriate committees of each House of 

the Congress. Each such notice shall include information regarding the identity of the person receiving the 

waiver, the position held by such person, and the nature of the financial interests which are the subject of 

the waiver¿. (3) The Commission, in determining whether a company or 

other entity has a significant interest in communications, manufacturing, or sales activities which are subject to regulation 

by the Commission, shall consider (without excluding other relevant factors)— 

(A) the revenues, investments, profits, and managerial 

efforts directed to the related communications, manufacturing, or sales activities of the company or other entity involved, as compared to the other aspects of the business of 

such company or other entity; 

(B) the extent to which the Commission regulates and 

oversees the activities of such company or other entity; 

(C) the degree to which the economic interests of such 

company or other entity may be affected by any action of 

the Commission; and 

(D) the perceptions held by the public regarding the 

business activities of such company or other entity. 

(4) Members of the Commission shall not engage in any 

other business, vocation, profession, or employment while serving as such members. 

(5) The maximum number of commissioners who may be 

members of the same political party shall be a number equal 

to the least number of commissioners which constitute a majority of the full membership of the Commission. 

* * * * * * * 

(g) EXPENDITURES.— (1) The Commission may make such expenditures (including 

expenditures for rent and personal services at the seat of government and elsewhere, for office supplies, law books, periodicals, and books of reference, for printing and binding, for land 


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for use as sites for radio monitoring stations and related facilities, including living quarters where necessary in remote 

areas, for the construction of such stations and facilities, and 

for the improvement, furnishing, equipping, and repairing of 

such stations and facilities and of laboratories and other related facilities (including construction of minor subsidiary 

buildings and structures not exceeding $25,000 in any one instance) used in connection with technical research activities, as 

may be necessary for the execution of the functions vested in 

the Commission and as may be appropriated for by the Congress in accordance with the authorizations of appropriations 

established in section 6. All expenditures of the Commission, 

including all necessary expenses for transportation incurred by 

the commissioners or by their employees, under their orders, in 

making any investigation or upon any official business in any 

other places than in the city of Washington, shall be allowed 

and paid on the presentation of itemized vouchers therefor approved by the chairman of the Commission or by such other 

member or officer thereof as may be designated by the Commission for that purpose. 

ø(2)(A) If— 

ø(i) the necessary expenses specified in the last sentence of paragraph (1) have been incurred for the purpose of enabling commissioners or employees of the 

Commission to attend and participate in any convention, conference, or meeting; 

ø(ii) such attendance and participation are in furtherance of the functions of the Commission; and 

ø(iii) such attendance and participation are requested by the person sponsoring such convention, 

conference, or meeting; then the Commission shall 

have authority to accept direct reimbursement from 

such sponsor for such necessary expenses. 

ø(B) The total amount of unreimbursed expenditures 

made by the Commission for travel for any fiscal year, together with the total amount of reimbursements which the 

Commission accepts under subparagraph (A) for such fiscal 

year, shall not exceed the level of travel expenses appropriated to the Commission for such fiscal year. 

ø(C) The Commission shall submit to the appropriate 

committees of the Congress, and publish in the Federal 

Register, quarterly reports specifying reimbursements 

which the Commission has accepted under this paragraph. 

ø(D) The provisions of this paragraph shall cease to have 

any force or effect at the end of fiscal year 1994. 

ø(E) Funds which are received by the Commission as reimbursements under the provisions of this paragraph after 

the close of a fiscal year shall remain available for obligations.¿ 

ø(3)¿ (2) 

(A) Notwithstanding any other provision of law, in furtherance of its functions the Commission is authorized to 

accept, hold, administer, and use unconditional gifts, donations, and bequests of real, personal, and other property 


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(including voluntary and uncompensated services, as authorized by section 3109 of title 5, United States Code). 

(B) The Commission, for purposes of providing radio club 

and military-recreational call signs, may utilize the voluntary, uncompensated, and unreimbursed services of 

amateur radio organizations authorized by the Commission that have tax-exempt status under section 501(c)(3) of 

the Internal Revenue Code of 1986. 

(C) For the purpose of Federal law on income taxes, estate taxes, and gift taxes, property or services accepted 

under the authority of subparagraph (A) shall be deemed 

to be a gift, bequest, or devise to the United States. 

(D) The Commission shall promulgate regulations to 

carry out the provisions of this paragraph. Such regulations shall include provisions to preclude the acceptance of 

any gift, bequest, or donation that would create a conflict 

of interest or the appearance of a conflict of interest. 

* * * * * * * 

ø(k) ANNUAL REPORTS TO CONGRESS.—The Commission shall 

make an annual report to Congress, copies of which shall be distributed as are other reports transmitted to Congress. Such reports 

shall contain— 

ø(1) such information and data collected by the Commission 

as may be considered of value in the determination of questions connected with the regulation of interstate and foreign 

wire and radio communication and radio transmission of energy; 

ø(2) such information and data concerning the functioning of 

the Commission as will be of value to Congress in appraising 

the amount and character of the work and accomplishments of 

the Commission and the adequacy of its staff and equipment; 

ø(3) an itemized statement of all funds expended during the 

proceeding year by the Commission, of the sources of such 

funds, and of the authority in this Act or elsewhere under 

which such expenditures were made; and 

ø(4) specific recommendations to Congress as to additional 

legislation which the Commission deems necessary or desirable, including all legislative proposals submitted for approval 

to the Director of the Office of Management and Budget.¿ 

ø(l)¿ (k) RECORD OF REPORTS.—All reports of investigations made 

by the Commission shall be entered of record, and a copy thereof 

shall be furnished to the party who may have complained, and to 

any common carrier or licensee that may have been complained of. 

ø(m)¿ (l) PUBLICATION OF REPORTS; ADMISSIBILITY AS EVI- DENCE.—The Commission shall provide for the publication of its reports and decisions in such form and manner as may be best adapted for public information and use, and such authorized publications 

shall be competent evidence of the reports and decisions of the 

Commission therein contained in all courts of the United States 

and of the several States without any further proof or authentication thereof. 

ø(n)¿ (m) COMPENSATION OF APPOINTEES.—Rates of compensation of persons appointed under this section shall be subject to the 

reduction applicable to officers and employees of the Federal Government generally. 


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ø(o)¿ (n) USE OF COMMUNICATIONS IN SAFETY OF LIFE AND PROPERTY.—For the purpose of obtaining maximum effectiveness from 

the use of radio and wire communications in connection with safety 

of life and property, the Commission shall investigate and study all 

phases of the problem and the best methods of obtaining the cooperation and coordination of these systems. 

SEC. 9. REGULATORY FEES. 

[47 U.S.C. 159] 

* * * * * * * 

(i) ACCOUNTING SYSTEM.— The Commission shall develop accounting systems necessary to making the adjustments authorized 

by subsection (b)(3). øIn the Commission’s annual report, the Commission shall prepare an analysis of its progress in developing such 

systems and¿The Commission shall afford interested persons the 

opportunity to submit comments concerning the allocation of the 

costs of performing the functions described in subsection (a) among 

the services in the Schedule. 

SEC. 13. COMMUNICATIONS MARKETPLACE REPORT. 

(a) IN GENERAL.—In the last quarter of every even-numbered 

year, the Commission shall publish on its website and submit to the 

Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation 

of the Senate a report on the state of the communications marketplace. 

(b) CONTENTS.—Each report required under subsection (a) 

shall— 

(1) assess the state of competition in the communications 

marketplace, including competition to deliver voice, video, 

audio, and data services among providers of telecommunications, providers of commercial mobile service (as defined in 

section 332), multichannel video programming distributors (as 

defined in section 602), broadcast stations, providers of satellite 

communications, Internet service providers, and other providers 

of communications services; 

(2) assess the state of deployment of communications capabilities, including advanced telecommunications capability (as 

defined in section 706 of the Telecommunications Act of 1996 

(47 U.S.C. 1302)), regardless of the technology used for such deployment; 

(3) assess whether laws, regulations, regulatory practices, 

or demonstrated marketplace practices pose a barrier to competitive entry into the communications marketplace or to the 

competitive expansion of existing providers of communications 

services; and 

(4) describe the agenda of the Commission for the next 2- 

year period for addressing the challenges and opportunities in 

the communications marketplace that were identified through 

the assessments under paragraphs (1) through (3). 

(c) EXTENSION.—If the Senate confirms the Chairman of the 

Commission during the third or fourth quarter of an even-numbered 

year, the report required under subsection (a) may be published on 

the website of the Commission and submitted to the Committee on 

Energy and Commerce of the House of Representatives and the 


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Committee on Commerce, Science, and Transportation of the Senate 

by March 1 of the following odd-numbered year. 

(d) SPECIAL REQUIREMENTS.— (1) ASSESSING COMPETITION.—In assessing the state of competition under subsection (b)(1), the Commission shall consider 

all forms of competition, including the effect of intermodal competition, facilities-based competition, and competition from new 

and emergent communications services, including the provision 

of content and communications using the Internet. 

(2) ASSESSING DEPLOYMENT.—In assessing the state of deployment under subsection (b)(2), the Commission shall include 

a list of geographical areas that are not served by any provider 

of advanced telecommunications capability. 

(3) INTERNATIONAL COMPARISONS AND DEMOGRAPHIC INFORMATION.—The Commission may use readily available data to 

draw appropriate comparisons between the United States communications marketplace and the international communications 

marketplace and to correlate its assessments with demographic 

information. 

(4) CONSIDERING SMALL BUSINESSES.—In assessing the 

state of competition under subsection (b)(1) and barriers under 

subsection (b)(3), the Commission shall consider market entry 

barriers for entrepreneurs and other small businesses in the 

communications marketplace in accordance with the national 

policy under section 257(b). 

(e) NOTIFICATION OF DELAY IN REPORT.—If the Commission 

fails to publish a report by the applicable deadline under subsection 

(a) or (c), the Commission shall, not later than 7 days after the 

deadline and every 60 days thereafter until the publication of the 

report— 

(1) provide notification of the delay by letter to the chairperson and ranking member of— 

(A) the Committee on Energy and Commerce of the 

House of Representatives; and 

(B) the Committee on Commerce, Science, and Transportation of the Senate; 

(2) indicate in the letter the date on which the Commission 

anticipates the report will be published; and 

(3) publish the letter on the website of the Commission. 

SEC. 215. EXAMINATION OF TRANSACTIONS RELATING TO FURNISHING OF SERVICES, EQUIPMENT, ETC.; REPORTS TO 

CONGRESS. 

[47 U.S.C. 215] 

(a) ACCESS TO RECORDS AND DOCUMENTS.—The Commission 

shall examine into transactions entered into by any common carrier 

which relate to the furnishing of equipment, supplies, research, 

services, finances, credit, or personnel to such carrier and/or which 

may affect the charges made or to be made and/or the services rendered or to be rendered by such carrier, in wire or radio communication subject to this Act, and shall report to the Congress 

whether any such transactions have affected or are likely to affect 

adversely the ability of the carrier to render adequate service to 

the public, or may result in any undue or unreasonable increase in 

charges or in the maintenance of undue or unreasonable charges 

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actions the Commission shall have access to and the right of inspection and examination of all accounts, records, and memoranda, 

including all documents, papers, and correspondence now or hereafter existing, of persons furnishing such equipment, supplies, research, services, finances, credit, or personnel. The Commission 

shall include in its report its recommendations for necessary legislation in connection with such transactions, and shall report specifically whether in its opinion legislation should be enacted (1) authorizing the Commission to declare any such transactions void or 

to permit such transactions to be carried out subject to such modification of their terms and conditions as the Commission shall 

deem desirable in the public interest; and/or (2) subjecting such 

transactions to the approval of the Commission where the person 

furnishing or seeking to furnish the equipment, supplies, research, 

services, finances, credit, or personnel is a person directly or indirectly controlling or controlled by, or under direct or indirect common control with, such carrier; and/or (3) authorizing the Commission to require that all or any transactions of carriers involving the 

furnishing of equipment, supplies, research, services, finances, 

credit, or personnel to such carrier be upon competitive bids on 

such terms and conditions and subject to such regulations as it 

shall prescribe as necessary in the public interest. 

ø(b) WIRE TELEPHONE AND TELEGRAPH SERVICES.—The Commission shall investigate the methods by which and the extent to 

which wire telephone companies are furnishing wire telegraph 

service and wire telegraph companies are furnishing wire telephone 

service, and shall report its findings to Congress, together with its 

recommendations as to whether additional legislation on this subject is desirable.¿ 

ø(c)¿ (b) EXCLUSIVE DEALING CONTRACTS.—The Commission shall 

examine all contracts of common carriers subject to this Act which 

prevent the other party thereto from dealing with another common 

carrier subject to this Act, and shall report its findings to Congress, 

together with its recommendations as to whether additional legislation on this subject is desirable. 

SEC. 227. RESTRICTIONS ON USE OF TELEPHONE EQUIPMENT. 

[47 U.S.C. 227] 

* * * * * * * 

(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 knowingly transmit misleading or inaccurate 

caller identification information with the intent to defraud, 

cause harm, or wrongfully obtain anything of value, 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.— 


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(A) IN GENERAL.—Not later than 6 months after the date 

of enactment of the Truth in Caller ID Act of 2009, 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 is appropriate. 

(ii) SPECIFIC EXEMPTION FOR LAW ENFORCEMENT

AGENCIES OR COURT ORDERS.—The regulations required under subparagraph (A) shall exempt from the 

prohibition under paragraph (1) transmissions in connection with— 

(I) any authorized activity of a law enforcement 

agency; or 

(II) a court order that specifically authorizes the 

use of caller identification manipulation. 

ø(4) REPORT.—Not later than 6 months after the enactment 

of the Truth in Caller ID Act of 2009, 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.¿ 

ø(5)¿ (4) PENALTIES.— (A) CIVIL FORFEITURE.— (i) IN GENERAL.—Any person that is determined by 

the Commission, in accordance with paragraphs (3) 

and (4) of section 503(b), to have violated this subsection shall be liable to the United States for a forfeiture penalty. A forfeiture penalty under this paragraph shall be in addition to any other penalty provided for by this Act. The amount of the forfeiture 

penalty determined under this paragraph shall not exceed $10,000 for each violation, or 3 times that 

amount for each day of a continuing violation, except 

that the amount assessed for any continuing violation 

shall not exceed a total of $1,000,000 for any single act 

or failure to act. 

(ii) RECOVERY.—Any forfeiture penalty determined 

under clause (i) shall be recoverable pursuant to section 504(a). 

(iii) PROCEDURE.—No forfeiture liability shall be determined under clause (i) against any person unless 

such person receives the notice required by section 

503(b)(3) or section 503(b)(4). 

(iv) 2-YEAR STATUTE OF LIMITATIONS.—No forfeiture 

penalty shall be determined or imposed against any 

person under clause (i) if the violation charged occurred more than 2 years prior to the date of issuance 

of the required notice or notice or apparent liability. 

(B) CRIMINAL FINE.—Any person who willfully and knowingly violates this subsection shall upon conviction thereof 

be fined not more than $10,000 for each violation, or 3 


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times that amount for each day of a continuing violation, 

in lieu of the fine provided by section 501 for such a violation. This subparagraph does not supersede the provisions 

of section 501 relating to imprisonment or the imposition 

of a penalty of both fine and imprisonment. 

ø(6)¿ (5) 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 shall 

have the right— 

(i) to intervene in the action; 

(ii) upon so intervening, to be heard on all matters 

arising therein; and 

(iii) to file petitions for appeal. 

(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 OR 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. 


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ø(7)¿ (6) EFFECT ON OTHER LAWS.—This subsection does not 

prohibit any lawfully authorized investigative, protective, or intelligence activity of a law enforcement agency of the United 

States, a State, or a political subdivision of a State, or of an 

intelligence agency of the United States. 

ø(8)¿ (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’’ has the meaning given that term by section 

9.3 of the Commission’s regulations (47 C.F.R. 9.3), as 

those regulations may be amended by the Commission 

from time to time. 

ø(9)¿ (8) LIMITATION.—Notwithstanding any other provision 

of this section, subsection (f) shall not apply to this subsection 

or to the regulations under this subsection. 

SEC. 257. MARKET ENTRY BARRIERS PROCEEDING. 

[47 U.S.C. 257] 

(a) ELIMINATION OF BARRIERS.—Within 15 months after the date 

of enactment of the Telecommunications Act of 1996, the Commission shall complete a proceeding for the purpose of identifying and 

eliminating, by regulations pursuant to its authority under this Act 

(other than this section), market entry barriers for entrepreneurs 

and other small businesses in the provision and ownership of telecommunications services and information services, or in the provision of parts or services to providers of telecommunications services 

and information services. 

(b) NATIONAL POLICY.—In carrying out subsection (a), the Commission shall seek to promote the policies and purposes of this Act 

favoring diversity of media voices, vigorous economic competition, 

technological advancement, and promotion of the public interest, 

convenience, and necessity. 

ø(c) PERIODIC REVIEW.—Every 3 years following the completion 

of the proceeding required by subsection (a), the Commission shall 

review and report to Congress on— 

ø(1) any regulations prescribed to eliminate barriers within 

its jurisdiction that are identified under subsection (a) and that 

can be prescribed consistent with the public interest, convenience, and necessity; and 

ø(2) the statutory barriers identified under subsection (a) 

that the Commission recommends be eliminated, consistent 

with the public interest, convenience, and necessity.¿ 


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SEC. 303. POWERS AND DUTIES OF COMMISSION. 

[47 U.S.C. 303] 

* * * * * * * 

(u) Require that, if technically feasible— 

(1) apparatus designed to receive or play back video programming transmitted simultaneously with sound, if such apparatus is manufactured in the United States or imported for 

use in the United States and uses a picture screen of any 

size— 

(A) be equipped with built-in closed caption decoder circuitry or capability designed to display closed-captioned 

video programming; 

(B) have the capability to decode and make available the 

transmission and delivery of video description services as 

required by regulations reinstated and modified pursuant 

to øsection 713(f)¿ section 713(e); and 

(C) have the capability to decode and make available 

emergency information (as that term is defined in section 

79.2 of the Commission’s regulations (47 CFR 79.2)) in a 

manner that is accessible to individuals who are blind or 

visually impaired; and 

(2) notwithstanding paragraph (1) of this subsection— 

(A) apparatus described in such paragraph that use a 

picture screen that is less than 13 inches in size meet the 

requirements of subparagraph (A), (B), or (C) of such paragraph only if the requirements of such subparagraphs are 

achievable (as defined in section 716); 

(B) any apparatus or class of apparatus that are displayonly video monitors with no playback capability are exempt from the requirements of such paragraph; and 

(C) the Commission shall have the authority, on its own 

motion or in response to a petition by a manufacturer, to 

waive the requirements of this subsection for any apparatus or class of apparatus— 

(i) primarily designed for activities other than receiving or playing back video programming transmitted simultaneously with sound; or 

(ii) for equipment designed for multiple purposes, 

capable of receiving or playing video programming 

transmitted simultaneously with sound but whose essential utility is derived from other purposes. 

* * * * * * * 

SEC. 309. APPLICATION FOR LICENSE. 

[47 U.S.C. 309] 

* * * * * * * 

(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. 


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(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; 


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(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 or sharing 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 area designations and 

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

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

including small businesses, rural telephone companies, 

and businesses owned by members of minority groups and 

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

new technologies and services; 

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

and women are given the opportunity to participate in the 

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

(E) require such transfer disclosures and antitrafficking 

restrictions and payment schedules as may be necessary to 

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

(F) prescribe methods by which a reasonable reserve 

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

determines that such a reserve price or minimum bid is 

not in the public interest. 


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

be permitted to participate in a system of competitive bidding 

pursuant to this subsection unless such bidder submits such 

information and assurances as the Commission may require to 

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

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

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

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

in the use of competitive bidding, shall— 

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

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

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

(C) diminish the authority of the Commission under the 

other provisions of this Act to regulate or reclaim spectrum 

licenses; 

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

that apply to other licenses within the same service that 

were not issued pursuant to this subsection; 

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

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

(F) be construed to prohibit the Commission from 

issuing nationwide, regional, or local licenses or permits; 

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

service or technology; or 

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

permit of the obligation to pay charges imposed pursuant 

to section 8 of this Act. 

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

(A) CONSIDERATION PROHIBITED.—In making a decision 

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

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

and necessity on the expectation of Federal revenues from 

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

(B) CONSIDERATION LIMITED.—In prescribing regulations 

pursuant to paragraph (4)(A) of this subsection, the ComVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00023 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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

competitive bidding under this subsection. 

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

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

(8) TREATMENT OF REVENUES.— (A) GENERAL RULE.—Except as provided in subparagraphs (B), (D), (E), (F), and (G), 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. øNo 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 subparagraphs (D)(ii), (E)(ii), (F), and (G); 

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

(iii) the interest accrued to the account shall be deposited in the general fund of the Treasury, where 

such amount shall be dedicated for the sole purpose of 

deficit reduction. 

(D) PROCEEDS FROM REALLOCATED FEDERAL SPECTRUM.— (i) IN GENERAL.—Except as provided in clause (ii), 

cash proceeds attributable to the auction of any eligible frequencies described in section 113(g)(2) of the 

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istration 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. 

(ii) CERTAIN OTHER PROCEEDS.—Notwithstanding 

subparagraph (A) and except as provided in subparagraph (B), in the case of proceeds (including deposits 

and upfront payments from successful bidders) attributable to the auction of eligible frequencies described 

in paragraph (2) of section 113(g) of the National Telecommunications and Information Administration Organization Act that are required to be auctioned by 

section 6401(b)(1)(B) of the Middle Class Tax Relief 

and Job Creation Act of 2012, such portion of such 

proceeds as is necessary to cover the relocation or 

sharing costs (as defined in paragraph (3) of such section 113(g)) of Federal entities relocated from such eligible frequencies shall be deposited in the Spectrum 

Relocation Fund. The remainder of such proceeds shall 

be deposited in the Public Safety Trust Fund established by section 6413(a)(1) of the Middle Class Tax 

Relief and Job Creation Act of 2012. 

(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). 

(F) CERTAIN PROCEEDS DESIGNATED FOR PUBLIC SAFETY

TRUST FUND.—Notwithstanding subparagraph (A) and except as provided in subparagraphs (B) and (D)(ii), the proceeds (including deposits and upfront payments from successful bidders) from the use of a system of competitive 

bidding under this subsection pursuant to section 

6401(b)(1)(B) of the Middle Class Tax Relief and Job Creation Act of 2012 shall be deposited in the Public Safety 

Trust Fund established by section 6413(a)(1) of such Act. 

(G) INCENTIVE AUCTIONS.— (i) IN GENERAL.—Notwithstanding subparagraph (A) 

and except as provided in subparagraph (B), the Commission may encourage a licensee to relinquish volunVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00025 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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tarily some or all of its licensed spectrum usage rights 

in order to permit the assignment of new initial licenses subject to flexible-use service rules by sharing 

with such licensee a portion, based on the value of the 

relinquished rights as determined in the reverse auction required by clause (ii)(I), of the proceeds (including deposits and upfront payments from successful 

bidders) from the use of a competitive bidding system 

under this subsection. 

(ii) LIMITATIONS.—The Commission may not enter 

into an agreement for a licensee to relinquish spectrum usage rights in exchange for a share of auction 

proceeds under clause (i) unless— 

(I) the Commission conducts a reverse auction 

to determine the amount of compensation that licensees would accept in return for voluntarily relinquishing spectrum usage rights; and 

(II) at least two competing licensees participate 

in the reverse auction. 

(iii) TREATMENT OF REVENUES.—Notwithstanding 

subparagraph (A) and except as provided in subparagraph (B), the proceeds (including deposits and upfront payments from successful bidders) from any auction, prior to the end of fiscal year 2022, of spectrum 

usage rights made available under clause (i) that are 

not shared with licensees under such clause shall be 

deposited as follows: 

(I) $1,750,000,000 of the proceeds from the incentive auction of broadcast television spectrum 

required by section 6403 of the Middle Class Tax 

Relief and Job Creation Act of 2012 shall be deposited in the TV Broadcaster Relocation Fund established by subsection (d)(1) of such section. 

(II) All other proceeds shall be deposited— 

(aa) prior to the end of fiscal year 2022, in 

the Public Safety Trust Fund established by 

section 6413(a)(1) of such Act; and 

(bb) after the end of fiscal year 2022, in the 

general fund of the Treasury, where such proceeds shall be dedicated for the sole purpose 

of deficit reduction. 

(iv) CONGRESSIONAL NOTIFICATION.—At least 3 

months before any incentive auction conducted under 

this subparagraph, the Chairman of the Commission, 

in consultation with the Director of the Office of Management and Budget, shall notify the appropriate committees of Congress of the methodology for calculating 

the amounts that will be shared with licensees under 

clause (i). 

(v) DEFINITION.—In this subparagraph, the term 

‘‘appropriate committees of Congress’’ means— 

(I) the Committee on Commerce, Science, and 

Transportation of the Senate; 

(II) the Committee on Appropriations of the 

Senate; 


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25 

(III) the Committee on Energy and Commerce of 

the House of Representatives; and 

(IV) the Committee on Appropriations of the 

House of Representatives. 

(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. 


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

grant a license or permit under this subsection shall expire 

September 30, 2022. 

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

Commission shall conduct a public inquiry and submit to the 

Congress a report— 

ø(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; 

ø(B) describing the methodologies established by the 

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

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

ø(D) evaluating whether and to what extent— 

ø(i) competitive bidding significantly improved the 

efficiency and effectiveness of the process for granting 

radio spectrum licenses; 

ø(ii) competitive bidding facilitated the introduction 

of new spectrum-based technologies and the entry of 

new companies into the telecommunications market; 

ø(iii) competitive bidding methodologies have secured prompt delivery of service to rural areas and 

have adequately addressed the needs of rural spectrum users; and 

ø(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 

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

ø(13)¿ (12) 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); 


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(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; 


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(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. 

(1) 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. 


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ø(14)¿ (13) 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 June 12, 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 PROHIB- ITED.—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. 

ø(15)¿ (14) COMMISSION TO DETERMINE TIMING OF AUC- TIONS.— 

(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.— 


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(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. 

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

ø(I) specifying when the Commission intends to 

reschedule auctions 31 and 44 (other than the 

blocks excepted by clause (i)); and 

ø(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.¿ 

ø(v)¿ (iv) 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. 

ø(vi)¿ (v) RECOVERED ANALOG SPECTRUM.—For purposes of øclause (v)¿ clause (iv), 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 øparagraph (14)¿ 

paragraph (13), 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, 


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

payments made by such bidders for such licenses. 

ø(16)¿ (15) SPECIAL AUCTION PROVISIONS FOR ELIGIBLE FRE- QUENCIES.— (A) SPECIAL REGULATIONS.—The Commission shall revise 

the regulations prescribed under paragraph (4)(F) of this 

subsection to prescribe methods by which the total cash 

proceeds from any auction of eligible frequencies described 

in section 113(g)(2) of the National Telecommunications 

and Information Administration Organization Act (47 

U.S.C. 923(g)(2)) shall at least equal 110 percent of the 

total estimated relocation or sharing 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 or sharing 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. 

ø(17)¿ (16) CERTAIN CONDITIONS ON AUCTION PARTICIPATION

PROHIBITED.— (A) IN GENERAL.—Notwithstanding any other provision 

of law, the Commission may not prevent a person from 

participating in a system of competitive bidding under this 

subsection if such person— 

(i) complies with all the auction procedures and 

other requirements to protect the auction process established by the Commission; and 

(ii) either— 

(I) meets the technical, financial, character, and 

citizenship qualifications that the Commission 

may require under section 303(l)(1), 308(b), or 310 

to hold a license; or 

(II) would meet such license qualifications by 

means approved by the Commission prior to the 

grant of the license. 

(B) CLARIFICATION OF AUTHORITY.—Nothing in subparagraph (A) affects any authority the Commission has to 


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adopt and enforce rules of general applicability, including 

rules concerning spectrum aggregation that promote competition. 

SEC. 331. VERY HIGH FREQUENCY STATIONS AND AM RADIO STATIONS. 

[47 U.S.C. 331] 

* * * * * * * 

(b) AM RADIO STATIONS.—It shall be the policy of the Commission, in any case in which the licensee of an existing AM daytimeonly station located in a community with a population of more than 

100,000 persons that lacks a local full-time aural station licensed 

to that community and that is located within a Class I station primary service area notifies the Commission that such licensee seeks 

to provide full-time service, to ensure that such a licensee is able 

to place a principal community contour signal over its entire community of license 24 hours a day, if technically feasible. øThe Commission shall report to the appropriate committees of Congress 

within 30 days after the date of enactment of this Act on how it 

intends to meet this policy goal.¿ 

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.— 


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(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) øThe 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, 


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34 

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. 

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) 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) 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 


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35 

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.— 


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(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 


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37 

authorized devices which do not require individual licenses, but does not mean the provision of direct-tohome satellite services (as defined in section 303(v)). 

(8) MOBILE SERVICES ACCESS.—A person engaged in the provision of commercial mobile services, insofar as such person is 

so engaged, shall not be required to provide equal access to 

common carriers for the provision of telephone toll services. If 

the Commission determines that subscribers to such services 

are denied access to the provider of telephone toll services of 

the subscribers’ choice, and that such denial is contrary to the 

public interest, convenience, and necessity, then the Commission shall prescribe regulations to afford subscribers unblocked 

access to the provider of telephone toll services of the subscribers’ choice through the use of a carrier identification code 

assigned to such provider or other mechanism. The requirements for unblocking shall not apply to mobile satellite services unless the Commission finds it to be in the public interest 

to apply such requirements to such services. 

(d) DEFINITIONS.—For purposes of this section— 

(1) the term ‘‘commercial mobile service’’ means any mobile 

service (as defined in section 3) that is provided for profit and 

makes interconnected service available (A) to the public or (B) 

to such classes of eligible users as to be effectively available to 

a substantial portion of the public, as specified by regulation 

by the Commission; 

(2) the term ‘‘interconnected service’’ means service that is 

interconnected with the public switched network (as such 

terms are defined by regulation by the Commission) or service 

for which a request for interconnection is pending pursuant to 

subsection (c)(1)(B); and 

(3) the term ‘‘private mobile service’’ means any mobile service (as defined in section 3) that is not a commercial mobile 

service or the functional equivalent of a commercial mobile 

service, as specified by regulation by the Commission. 

SEC. 336. BROADCAST SPECTRUM FLEXIBILITY. 

[47 U.S.C. 336] 

* * * * * * * 

(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), 

(1) 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). 


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(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. 

ø(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.¿ 

(4) REPORT.—The Commission shall annually advise the Congress on the amounts collected pursuant to the program required by this subsection. 

* * * * * * * 

SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE 

CARRIERS. 

[47 U.S.C. 338] 

* * * * * * * 

(k) DEFINITIONS.—As used in this section: 

(1) DISTRIBUTOR.—The term ‘‘distributor’’ means an entity 

which contracts to distribute secondary transmissions from a 

satellite carrier and, either as a single channel or in a package 

with other programming, provides the secondary transmission 

either directly to individual subscribers or indirectly through 

other program distribution entities. 


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39 

(2) ELIGIBLE SATELLITE CARRIER.—The term ‘‘eligible satellite 

carrier’’ means any satellite carrier that is not a party to a carriage contract that— 

(A) governs carriage of at least 30 qualified noncommercial educational television stations; and 

(B) is in force and effect within 150 days after the date 

of enactment of the Satellite Television Extension and Localism Act of 2010. 

(3) 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. 

(4) LOCAL MARKET.—The term ‘‘local market’’ has the meaning given that term under section 122(j) of title 17, United 

States Code. 

(5) 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. 

(6) QUALIFIED NONCOMMERCIAL EDUCATIONAL TELEVISION

STATION.—The term ‘‘qualified noncommercial educational television station’’ means any full-power television broadcast station that— 

(A) under the rules and regulations of the Commission 

in effect on March 29, 1990, is licensed by the Commission 

as a noncommercial educational broadcast station and is 

owned and operated by a public agency, nonprofit foundation, nonprofit corporation, or nonprofit association; and 

(B) has as its licensee an entity that 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 øsection 396(k)(6)(B)¿ section 396(j)(6)(B) of this 

title. 

(7) SATELLITE CARRIER.—The term ‘‘satellite carrier’’ has the 

meaning given such term under section 119(d) of title 17, 

United States Code. 

(8) SECONDARY TRANSMISSION.—The term ‘‘secondary transmission’’ has the meaning given such term in section 119(d) of 

title 17, United States Code. 

(9) SUBSCRIBER.—The term ‘‘subscriber’’ has the meaning 

given that term under section 122(j) of title 17, United States 

Code. 

(10) TELEVISION BROADCAST STATION.—The term ‘‘television 

broadcast station’’ has the meaning given such term in section 

325(b)(7). 

* * * * * * * 


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SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE CARRIERS. 

[47 U.S.C. 339] 

* * * * * * * 

(c) ELIGIBILITY FOR RETRANSMISSION.— ø(1) STUDY OF DIGITAL STRENGTH TESTING PROCEDURES.— ø(A) STUDY REQUIRED.—Not later than 1 year after the 

date of the enactment of the Satellite Home Viewer Extension and Reauthorization Act of 2004, the Federal Communications Commission shall complete an inquiry regarding 

whether, for purposes of identifying if a household is 

unserved by an adequate digital signal under section 

119(d)(10) of title 17, United States Code, the digital signal 

strength standard in section 73.622(e)(1) of title 47, Code 

of Federal Regulations, or the testing procedures in section 

73.686(d) of title 47, Code of Federal Regulations, such 

statutes or regulations should be revised to take into account the types of antennas that are available to consumers. 

ø(B) STUDY CONSIDERATIONS.—In conducting the study 

under this paragraph, the Commission shall consider 

whether— 

ø(i) to account for the fact that an antenna can be 

mounted on a roof or placed in a home and can be 

fixed or capable of rotating; 

ø(ii) section 73.686(d) of title 47, Code of Federal 

Regulations, should be amended to create different 

procedures for determining if the requisite digital signal strength is present than for determining if the requisite analog signal strength is present; 

ø(iii) a standard should be used other than the presence of a signal of a certain strength to ensure that a 

household can receive a high-quality picture using antennas of reasonable cost and ease of installation; 

ø(iv) to develop a predictive methodology for determining whether a household is unserved by an adequate digital signal under section 119(d)(10) of title 

17, United States Code; 

ø(v) there is a wide variation in the ability of reasonably priced consumer digital television sets to receive over-the-air signals, such that at a given signal 

strength some may be able to display high-quality pictures while others cannot, whether such variation is 

related to the price of the television set, and whether 

such variation should be factored into setting a standard for determining whether a household is unserved 

by an adequate digital signal; and 

ø(vi) to account for factors such as building loss, external interference sources, or undesired signals from 

both digital television and analog television stations 

using either the same or adjacent channels in nearby 

markets, foliage, and man-made clutter. 

ø(C) REPORT.—Not later than 1 year after the date of 

the enactment of the Satellite Home Viewer Extension and 

Reauthorization Act of 2004, the Federal Communications 


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41 

Commission shall submit to the Committee on Energy and 

Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the 

Senate a report containing— 

ø(i) the results of the study under this paragraph; 

and 

ø(ii) recommendations, if any, as to what changes 

should be made to Federal statutes or regulations.¿ 

ø(2)¿ (1) WAIVERS.—A subscriber who is denied the retransmission of a signal of a network station under section 119 of 

title 17, United States Code, may request a waiver from such 

denial by submitting a request, through such subscriber’s satellite carrier, to the network station asserting that the retransmission is prohibited. The network station shall accept or reject a subscriber’s request for a waiver within 30 days after receipt of the request. The subscriber shall be permitted to receive such retransmission under section 119(d)(10)(B) of title 

17, United States Code, if such station agrees to the waiver request and files with the satellite carrier a written waiver with 

respect to that subscriber allowing the subscriber to receive 

such retransmission. If a television network station fails to accept or reject a subscriber’s request for a waiver within the 30- 

day period after receipt of the request, that station shall be 

deemed to agree to the waiver request and have filed such 

written waiver. 

ø(3)¿ (2) ESTABLISHMENT OF IMPROVED PREDICTIVE MODEL

AND ON-LOCATION TESTING REQUIRED.— (A) PREDICTIVE MODEL.—Within 270 days after the date 

of the enactment of the Satellite Television Extension and 

Localism Act of 2010, the Commission shall develop and 

prescribe by rule a point-to-point predictive model for reliably and presumptively determining the ability of individual locations, through the use of an antenna, to receive 

signals in accordance with the signal intensity standard in 

section 73.622(e)(1) of title 47, Code of Federal Regulations, or a successor regulation, including to account for 

the continuing operation of translator stations and low 

power television stations. In prescribing such model, the 

Commission shall rely on the Individual Location LongleyRice model set forth by the Commission in CS Docket No. 

98-201, as previously revised with respect to analog signals, and as recommended by the Commission with respect 

to digital signals in its Report to Congress in ET Docket 

No. 05-182, FCC 05-199 (released December 9, 2005). The 

Commission shall establish procedures for the continued 

refinement in the application of the model by the use of 

additional data as it becomes available. 

(B) ON-LOCATION TESTING.—The Commission shall issue 

an order completing its rulemaking proceeding in ET 

Docket No. 06-94 within 270 days after the date of enactment of the Satellite Television Extension and Localism 

Act of 2010. In conducting such rulemaking, the Commission shall seek ways to minimize consumer burdens associated with on-location testing. 

ø(4)¿ (3) OBJECTIVE VERIFICATION.— 


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(A) IN GENERAL.—If a subscriber’s request for a waiver 

under øparagraph (2)¿ paragraph (1) is rejected and the 

subscriber submits to the subscriber’s satellite carrier a request for a test verifying the subscriber’s inability to receive a signal of the signal intensity referenced in clause 

(i) of subsection (a)(2)(D), the satellite carrier and the network station or stations asserting that the retransmission 

is prohibited with respect to that subscriber shall select a 

qualified and independent person to conduct the test referenced in such clause. Such test shall be conducted within 

30 days after the date the subscriber submits a request for 

the test. If the written findings and conclusions of a test 

conducted in accordance with such clause demonstrate 

that the subscriber does not receive a signal that meets or 

exceeds the requisite signal intensity standard in such 

clause, the subscriber shall not be denied the retransmission of a signal of a network station under section 

119(d)(10)(A) of title 17, United States Code. 

(B) DESIGNATION OF TESTER AND ALLOCATION OF

COSTS.—If the satellite carrier and the network station or 

stations asserting that the retransmission is prohibited are 

unable to agree on such a person to conduct the test, the 

person shall be designated by an independent and neutral 

entity designated by the Commission by rule. Unless the 

satellite carrier and the network station or stations otherwise agree, the costs of conducting the test under this 

paragraph shall be borne by the satellite carrier, if the station’s signal meets or exceeds such requisite signal intensity standard, or by the network station, if its signal fails 

to meet or exceed such standard. 

(C) AVOIDANCE OF UNDUE BURDEN.—Commission regulations prescribed under this paragraph shall seek to avoid 

any undue burden on any party. 

(D) REDUCTION OF VERIFICATION BURDENS.—Within 1 

year after the date of enactment of the Satellite Home 

Viewer Extension and Reauthorization Act of 2004, the 

Commission shall by rule exempt from the verification requirements of subparagraph (A) any request for a test 

made by a subscriber to a satellite carrier to whom the retransmission of the signals of local broadcast stations is 

available under section 338 from such carrier. 

(E) EXCEPTION.—A satellite carrier may refuse to engage 

in the testing process. If the carrier does so refuse, a subscriber in a local market in which the satellite carrier does 

not offer the signals of local broadcast stations under section 338 may, at his or her own expense, authorize a signal intensity test to be performed pursuant to the procedures specified by the Commission in section 73.686(d) of 

title 47, Code of Federal Regulations, by a tester who is 

approved by the satellite carrier and by each affected network station, or who has been previously approved by the 

satellite carrier and by each affected network station but 

not previously disapproved. A tester may not be so disapproved for a test after the tester has commenced such 

test. The tester shall give 5 business days advance written 


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43 

notice to the satellite carrier and to the affected network 

station or stations. A signal intensity test conducted in accordance with this subparagraph shall be determinative of 

the signal strength received at that household for purposes 

of determining whether the household is capable of receiving a signal. 

ø(5)¿ (4) DEFINITION.—Notwithstanding subsection (d)(4), for 

purposes of øparagraphs (2) and (4)¿ paragraphs (1) and (3) of 

this subsection, the term ‘‘satellite carrier’’ includes a distributor (as defined in section 119(d)(1) of title 17, United 

States Code), but only if the satellite distributor’s relationship 

with the subscriber includes billing, collection, service activation, and service deactivation. * * * 

SEC. 396. CORPORATION FOR PUBLIC BROADCASTING. 

[47 U.S.C. 396] 

* * * * * * * 

ø(i) REPORT TO CONGRESS.— 

ø(1) The Corporation shall submit an annual report for the 

preceding fiscal year ending September 30 to the President for 

transmittal to the Congress on or before the 15th day of May 

of each year. The report shall include— 

ø(A) a comprehensive and detailed report of the Corporation’s operations, activities, financial condition, and accomplishments under this subpart and such recommendations 

as the Corporation deems appropriate; 

ø(B) a comprehensive and detailed inventory of funds 

distributed by Federal agencies to public telecommunications entities during the preceding fiscal year; 

ø(C) a listing of each organization that receives a grant 

from the Corporation to produce programming, the name 

of the producer of any programming produced under each 

such grant, the title or description of any program so produced, and the amount of each such grant; 

ø(D) the summary of the annual report provided to the 

Secretary pursuant to section 398(b)(4). 

ø(2) The officers and directors of the Corporation shall be 

available to testify before appropriate committees of the Congress with respect to such report, the report of any audit made 

by the Comptroller General pursuant to subsection (1), or any 

other matter which such committees may determine.¿ 

ø(j)¿ (i) REPEAL, ALTERATION, OR AMENDMENT.—The right to repeal, alter, or amend this section at any time is expressly reserved. 

ø(k)¿ (j) FINANCING RESTRICTIONS.— 

(1)(A) There is hereby established in the Treasury a fund 

which shall be known as the Public Broadcasting Fund (hereinafter in this subsection referred to as the ‘‘Fund’’), to be administered by the Secretary of the Treasury. 

(B) There is authorized to be appropriated to the Fund, 

for each of the fiscal years 1978, 1979, and 1980, an 

amount equal to 40 percent of the total amount of nonFederal financial support received by public broadcasting 

entities during the fiscal year second preceding each such 

fiscal year, except that the amount so appropriated shall 


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44 

not exceed $121,000,000 for fiscal year 1978, $140,000,000 

for fiscal year 1979, and $160,000,000 for fiscal year 1980. 

(C) There is authorized to be appropriated to the Fund, 

for each of the fiscal years 1981, 1982, 1983, 1984, 1985, 

1986, 1987, 1988, 1989, 1990, 1991, 1992, and 1993 an 

amount equal to 40 percent of the total amount of nonFederal financial support received by public broadcasting 

entities during the fiscal year second preceding each such 

fiscal year, except that the amount so appropriated shall 

not exceed $265,000,000 for fiscal year 1992, $285,000,000 

for fiscal year 1993, $310,000,000 for fiscal year 1994, 

$375,000,000 for fiscal year 1995, and $425,000,000 for fiscal year 1996. 

(D) In addition to any amounts authorized under any 

other provision of this or any other Act to be appropriated 

to the Fund, $20,000,000 are hereby authorized to be appropriated to the Fund (notwithstanding any other provision of this subsection) specifically for transition from the 

use of analog to digital technology for the provision of public broadcasting services for fiscal year 2001. 

(E) Funds appropriated under this subsection shall remain available until expended. 

ø(F) In recognition of the importance of educational programs and services, and the expansion of public radio services, to unserved and underserved audiences, the Corporation, after consultation with the system of public telecommunications entities, shall prepare and submit to the 

Congress an annual report for each of the fiscal years 

1994, 1995, and 1996 on the Corporation’s activities and 

expenditures relating to those programs and services.¿ 

(2)(A) The funds authorized to be appropriated by this subsection shall be used by the Corporation, in a prudent and financially responsible manner, solely for its grants, contracts, 

and administrative costs, except that the Corporation may not 

use any funds appropriated under this subpart for purposes of 

conducting any reception, or providing any other entertainment, for any officer or employee of the Federal Government 

or any State or local government. The Corporation shall determine the amount of non-Federal financial support received by 

public broadcasting entities during each of the fiscal years referred to in paragraph (1) for the purpose of determining the 

amount of each authorization, and shall certify such amount to 

the Secretary of the Treasury, except that the Corporation may 

include in its certification non-Federal financial support received by a public broadcasting entity during its most recent 

fiscal year ending before September 30 of the year for which 

certification is made. Upon receipt of such certification, the 

Secretary of the Treasury shall make available to the Corporation, from such funds as may be appropriated to the Fund, the 

amount authorized for each of the fiscal years pursuant to the 

provisions of this subsection. 

(B) Funds appropriated and made available under this 

subsection shall be disbursed by the Secretary of the 

Treasury on a fiscal year basis. 


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(3)(A) (i) The Corporation shall establish an annual budget 

for use in allocating amounts from the Fund. Of the amounts 

appropriated into the Fund available for allocation for any fiscal year— 

(I) $10,200,000 shall be available for the administrative expenses of the Corporation for fiscal 

year 1989, and for each succeeding fiscal year the 

amount which shall be available for such administrative expenses shall be the sum of the amount 

made available to the Corporation under this subclause for such expenses in the preceding fiscal 

year plus the greater of 4 percent of such amount 

or a percentage of such amount equal to the percentage change in the Consumer Price Index, except that none of the amounts allocated under 

subclauses (II), (III), and (IV) and clause (v) shall 

be used for any administrative expenses of the 

Corporation and not more than 5 percent of all the 

amounts appropriated into the Fund available for 

allocation for any fiscal year shall be available for 

such administrative expenses; 

(II) 6 percent of such amounts shall be available 

for expenses incurred by the Corporation for capital costs relating to telecommunications satellites, 

the payment of programming royalties and other 

fees, the costs of interconnection facilities and operations (as provided in clause (iv)(I)), and grants 

which the Corporation may make for assistance to 

stations that broadcast programs in languages 

other than English or for assistance in the provision of affordable training programs for employees 

at public broadcast stations, and if the available 

funding level permits, for projects and activities 

that will enhance public broadcasting; 

(III) 75 percent of the remainder (after allocations are made under subclause (I) and subclause 

(II)) shall be allocated in accordance with clause 

(ii); and 

(IV) 25 percent of such remainder shall be allocated in accordance with clause (iii). 

(ii) Of the amounts allocated under clause (i)(III) for 

any fiscal year— 

(I) 75 percent of such amounts shall be available 

for distribution among the licensees and permittees of public television stations pursuant to paragraph (6)(B); and 

(II) 25 percent of such amounts shall be available for distribution under subparagraph (B)(1), 

and in accordance with any plan implemented 

under paragraph (6)(A), for national public television programming. 

(iii) Of the amounts allocated under clause (i)(IV) for 

any fiscal year— 


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(I) 70 percent of such amounts shall be available 

for distribution among the licensees and permittees of public radio stations pursuant to paragraph (6)(B); 

(II) 7 percent of such amounts shall be available 

for distribution under subparagraph (B)(i) for public radio programming; and 

(III) 23 percent of such amounts shall be available for distribution among the licensees and permittees of public radio stations pursuant to paragraph (6)(B), solely to be used for acquiring or producing programming that is to be distributed nationally and is designed to serve the needs of a national audience. 

(iv)(I) From the amount provided pursuant to clause 

(i)(II), the Corporation shall defray an amount equal to 

50 percent of the total costs of interconnection facilities and operations to facilitate the availability of public television and radio programs among public broadcast stations. 

(II) Of the amounts received as the result of any 

contract, lease agreement, or any other arrangement under which the Corporation directly or indirectly makes available interconnection facilities, 

50 percent of such amounts shall be distributed to 

the licensees and permittees of public television 

stations and public radio stations. The Corporation shall not have any authority to establish any 

requirements, guidelines, or limitations with respect to the use of such amounts by such licensees 

and permittees. 

(v) Of the interest on the amounts appropriated into 

the Fund which is available for allocation for any fiscal year— 

(I) 75 percent shall be available for distribution 

for the purposes referred to in clause (ii)(II); and 

(II) 25 percent shall be available for distribution 

for the purposes referred to in clause (iii) (II) and 

(III). 

(B)(i) The Corporation shall utilize the funds allocated 

pursuant to subparagraph (A)(ii)(II) and subparagraph 

(A)(iii)(II) to make grants for production of public television or radio programs by independent producers and 

production entities and public telecommunications entities, 

producers of national children’s educational programming, 

and producers of programs addressing the needs and interests of minorities, and for acquisition of such programs by 

public telecommunications entities. The Corporation may 

make grants to public telecommunications entities and 

producers for the production of programs in languages 

other than English. Of the funds utilized pursuant to this 

clause, a substantial amount shall be distributed to independent producers and production entities, producers of 

national children’s educational programming, and proVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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ducers of programming addressing the needs and interests 

of minorities for the production of programs. 

(ii) All funds available for distribution under clause 

(i) shall be distributed to entities outside the Corporation and shall not be used for the general administrative costs of the Corporation, the salaries or related 

expenses of Corporation personnel and members of the 

Board, or for expenses of consultants and advisers to 

the Corporation. 

(iii)(I) For fiscal year 1990 and succeeding fiscal 

years, the Corporation shall, in carrying out its obligations under clause (i) with respect to public television 

programming, provide adequate funds for an independent production service. 

(II) Such independent production service shall 

be separate from the Corporation and shall be incorporated under the laws of the District of Columbia for the purpose of contracting with the 

Corporation for the expenditure of funds for the 

production of public television programs by independent producers and independent production 

entities. 

(III) The Corporation shall work with organizations or associations of independent producers or 

independent production entities to develop a plan 

and budget for the operation of such service that 

is acceptable to the Corporation. 

(IV) The Corporation shall ensure that the 

funds provided to such independent production 

service shall be used exclusively in pursuit of the 

Corporation’s obligation to expand the diversity 

and innovativeness of programming available to 

public broadcasting. 

ø(V) The Corporation shall report annually to 

Congress regarding the activities and expenditures of the independent production service, including carriage and viewing information for programs produced or acquired with funds provided 

pursuant to subclause (I). At the end of fiscal 

years 1992, 1993, 1994, and 1995, the Corporation 

shall submit a report to Congress evaluating the 

performance of the independent production service 

in light of its mission to expand the diversity and 

innovativeness of programming available to public 

broadcasting.¿ 

ø(VI)¿ (V) The Corporation shall not contract to 

provide funds to any such independent production 

service, unless that service agrees to comply with 

public inspection requirements established by the 

Corporation within 3 months after the date of enactment of this subclause. Under such requirements the service shall maintain at its offices a 

public file, updated regularly, containing information relating to the service’s award of funds for 

the production of programming. The information 


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shall be available for public inspection and copying for at least 3 years and shall be of the same 

kind as the information required to be maintained 

by the Corporation under øsubsection (l)(4)(B)¿ 

subsection (k)(4)(B). (4) Funds may not be distributed pursuant to this subsection 

to the Public Broadcasting Service or National Public Radio (or 

any successor organization), or to the licensee or permittee of 

any public broadcast station, unless the governing body of any 

such organization, any committee of such governing body, or 

any advisory body of any such organization, holds open meetings preceded by reasonable notice to the public. All persons 

shall be permitted to attend any meeting of the board, or of 

any such committee or body, and no person shall be required, 

as a condition to attendance at any such meeting, to register 

such person’s name or to provide any other information. Nothing contained in this paragraph shall be construed to prevent 

any such board, committee, or body from holding closed sessions to consider matters relating to individual employees, proprietary information, litigation and other matters requiring the 

confidential advice of counsel, commercial or financial information obtained from a person on a privileged or confidential 

basis, or the purchase of property or services whenever the 

premature exposure of such purchase would compromise the 

business interests of any such organization. If any such meeting is closed pursuant to the provisions of this paragraph, the 

organization involved shall thereafter (within a reasonable period of time) make available to the public a written statement 

containing an explanation of the reasons for closing the meeting. 

(5) Funds may not be distributed pursuant to this subsection 

to any public telecommunications entity that does not maintain 

for public examination copies of the annual financial and audit 

reports, or other information regarding finances, submitted to 

the Corporation pursuant to øsubsection (1)(3)(B)¿ subsection 

(k)(3)(B). 

(6)(A) The Corporation shall conduct a study and prepare a 

plan, in consultation with public television licensees (or designated representatives of those licensees) and the Public 

Broadcasting Service, on how funds available to the Corporation under paragraph (3)(A)(ii)(II) can be best allocated to meet 

the objectives of this Act with regard to national public television programming. The plan, which shall be based on the 

conclusions resulting from the study, shall be submitted by the 

Corporation to the Congress not later than January 31, 1990. 

Unless directed otherwise by an Act of Congress, the Corporation shall implement the plan during the first fiscal year beginning after the fiscal year in which the plan is submitted to 

Congress. 

(B) The Corporation shall make a basic grant from the 

portion reserved for television stations under paragraph 

(3)(A)(ii)(I) to each licensee and permittee of a public television station that is on the air. The Corporation shall assist radio stations to maintain and improve their service 

where public radio is the only broadcast service available. 


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The balance of the portion reserved for television stations 

and the total portion reserved for radio stations under 

paragraph (3)(A)(iii)(I) shall be distributed to licensees and 

permittees of such stations in accordance with eligibility 

criteria (which the Corporation shall review periodically in 

consultation with public radio and television licensees or 

permittees, or their designated representatives) that promote the public interest in public broadcasting, and on the 

basis of a formula designed to— 

(i) provide for the financial needs and requirements 

of stations in relation to the communities and audiences such stations undertake to serve; 

(ii) maintain existing, and stimulate new, sources of 

non-Federal financial support for stations by providing 

incentives for increases in such support; and 

(iii) assure that each eligible licensee and permittee 

of a public radio station receives a basic grant. 

(7) The funds distributed pursuant to paragraph (3)(A)(ii)(I) 

and (iii)(I) may be used at the discretion of the recipient for 

purposes related primarily to the production or acquisition of 

programming. 

(8)(A) Funds may not be distributed pursuant to this subpart 

to any public broadcast station (other than any station which 

is owned and operated by a State, a political or special purpose 

subdivision of a State, or a public agency) unless such station 

establishes a community advisory board. Any such station 

shall undertake good faith efforts to assure that (i) its advisory 

board meets at regular intervals; (ii) the members of its advisory board regularly attend the meetings of the advisory board; 

and (iii) the composition of its advisory board are reasonably 

representative of the diverse needs and interests of the communities served by such station. 

(B) The board shall be permitted to review the programming goals established by the station, the service provided 

by the station, and the significant policy decisions rendered by the station. The board may also be delegated any 

other responsibilities, as determined by the governing body 

of the station. The board shall advise the governing body 

of the station with respect to whether the programming 

and other policies of such station are meeting the specialized educational and cultural needs of the communities 

served by the station, and may make such recommendations as it considers appropriate to meet such needs. 

(C) The role of the board shall be solely advisory in nature, except to the extent other responsibilities are delegated to the board by the governing body of the station. In 

no case shall the board have any authority to exercise any 

control over the daily management or operation of the station. 

(D) In the case of any public broadcast station (other 

than any station which is owned and operated by a State, 

a political or special purpose subdivision of a State, or a 

public agency) in existence on the effective date of this 

paragraph, such station shall comply with the requirements of this paragraph with respect to the establishment 


lotter on DSK5VPTVN1PROD with REPORTS
50 

of a community advisory board not later than 180 days 

after such effective date. 

(E) The provision of subparagraph (A) prohibiting the 

distribution of funds to any public broadcast station (other 

than any station which is owned and operated by a State, 

a political or special purpose subdivision of a State, or a 

public agency) unless such station establishes a community advisory board shall be the exclusive remedy for the 

enforcement of the provisions of this paragraph. 

(9) Funds may not be distributed pursuant to this subsection 

to the Public Broadcasting Service or National Public Radio (or 

any successor organization) unless assurances are provided to 

the Corporation that no officer or employee of the Public 

Broadcasting Service or National Public Radio (or any successor organization), as the case may be, will be compensated 

in excess of reasonable compensation as determined pursuant 

to Section 4958 of the Internal Revenue Code for services that 

the officer or employee renders to organization, and unless further assurances are provided to the Corporation that no officer 

or employee of such an entity will be loaned money by that entity on an interest-free basis. 

(10)(A) There is hereby established in the Treasury a fund 

which shall be known as the Public Broadcasting Satellite 

Interconnection Fund (hereinafter in this subsection referred to 

as the ‘‘Satellite Interconnection Fund’’), to be administered by 

the Secretary of the Treasury. 

(B) There is authorized to be appropriated to the Satellite Interconnection Fund, for fiscal year 1991, the 

amount of $200,000,000. If such amount is not appropriated in full for fiscal year 1991, the portion of such 

amount not yet appropriated is authorized to be appropriated for fiscal years 1992 and 1993. Funds appropriated 

to the Satellite Interconnection Fund shall remain available until expended. 

(C) The Secretary of the Treasury shall make available 

and disburse to the Corporation, at the beginning of fiscal 

year 1991 and of each succeeding fiscal year thereafter, 

such funds as have been appropriated to the Satellite 

Interconnection Fund for the fiscal year in which such disbursement is to be made. 

(D) Notwithstanding any other provision of this subsection except paragraphs (4), (5), (8), and (9), all funds appropriated to the Satellite Interconnection Fund and interest thereon— 

(i) shall be distributed by the Corporation to the licensees and permittees of noncommercial educational 

television broadcast stations providing public telecommunications services or the national entity they 

designate for satellite interconnection purposes and to 

those public telecommunications entities participating 

in the public radio satellite interconnection system or 

the national entity they designate for satellite interconnection purposes, exclusively for the capital costs of 

the replacement, refurbishment, or upgrading of their 


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national satellite interconnection systems and associated maintenance of such systems; and 

(ii) shall not be used for the administrative costs of 

the Corporation, the salaries or related expenses of 

Corporation personnel and members of the Board, or 

for expenses of consultants and advisers to the Corporation. 

(11)(A) Funds may not be distributed pursuant to this subsection for any fiscal year to the licensee or permittee of any 

public broadcast station if such licensee or permittee— 

(i) fails to certify to the Corporation that such licensee or permittee complies with the Commission’s 

regulations concerning equal employment opportunity 

as published under section 73.2080 of title 47, Code of 

Federal Regulations, or any successor regulations 

thereto; or 

(ii) fails to submit to the Corporation the report required by subparagraph (B) for the preceding calendar 

year. 

(B) A licensee or permittee of any public broadcast station with more than five full-time employees to file annually with the Corporation a statistical report, consistent 

with reports required by Commission regulation, identifying by race and sex the number of employees in each of 

the following full-time and part-time job categories: 

(i) Officials and managers. 

(ii) Professionals. 

(iii) Technicians. 

(iv) Semiskilled operatives. 

(v) Skilled craft persons. 

(vi) Clerical and office personnel. 

(vii) Unskilled operatives. 

(viii) Service workers. 

(C) In addition, such report shall state the number of job 

openings occurring during the course of the year. Where 

the job openings were filled in accordance with the regulations described in subparagraph (A)(i), the report shall so 

certify, and where the job openings were not filled in accordance with such regulations, the report shall contain a 

statement providing reasons therefor. The statistical report shall be available to the public at the central office 

and at every location where more than five full-time employees are regularly assigned to work. 

(12) Funds may not be distributed under this subsection to 

any public broadcasting entity that directly or indirectly— 

(A) rents contributor or donor names (or other personally 

identifiable information) to or from, or exchanges such 

names or information with, any Federal, State, or local 

candidate, political party, or political committee; or 

(B) discloses contributor or donor names, or other personally identifiable information, to any nonaffiliated third 

party unless— 

(i) such entity clearly and conspicuously discloses to 

the contributor or donor that such information may be 

disclosed to such third party; 


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(ii) the contributor or donor is given the opportunity, 

before the time that such information is initially disclosed, to direct that such information not be disclosed 

to such third party; and 

(iii) the contributor or donor is given an explanation 

of how the contributor or donor may exercise that nondisclosure option. 

ø(l)¿ (k) FINANCIAL MANAGEMENT AND RECORDS.— (1)(A) The accounts of the Corporation shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants or independent licensed public accountants certified or licensed by a 

regulatory authority of a State or other political subdivision of 

the United States, except that such requirement shall not preclude shared auditing arrangements between any public telecommunications entity and its licensee where such licensee is 

a public or private institution. The audits shall be conducted 

at the place or places where the accounts of the Corporation 

are normally kept. All books, accounts, financial records, reports, files, and all other papers, things, or property belonging 

to or in use by the Corporation and necessary to facilitate the 

audits shall be made available to the person or persons conducting the audits; and full facilities for verifying transactions 

with the balances or securities held by depositories, fiscal 

agents and custodians shall be afforded to such person or persons. 

(B) The report of each such independent audit øshall be 

included in the annual report required by subsection (i) of 

this section. The audit report¿ shall set forth the scope of 

the audit and include such statements as are necessary to 

present fairly the Corporation’s assets and liabilities, surplus or deficit, with an analysis of the changes therein 

during the year, supplemented in reasonable detail by a 

statement of the Corporation’s income and expenses during 

the year, and a statement of the sources and application 

of funds, together with the independent auditor’s opinion 

of those statements. 

(2)(A) The financial transactions of the Corporation for any 

fiscal year during which Federal funds are available to finance 

any portion of its operations may be audited by the General 

Accounting Office in accordance with the principles and procedures applicable to commercial corporate transactions and 

under such rules and regulations as may be prescribed by the 

Comptroller General of the United States. Any such audit shall 

be conducted at the place or places where accounts of the Corporation are normally kept. The representative of the General 

Accounting Office shall have access to all books, accounts, 

records, reports, files, and all other papers, things, or property 

belonging to or in use by the Corporation pertaining to its financial transactions and necessary to facilitate the audit, and 

they shall be afforded full facilities for verifying transactions 

with the balances or securities held by depositories, fiscal 

agents, and custodians. All such books, accounts, records, reports, files, papers and property of the Corporation shall remain in possession and custody of the Corporation. 


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(B) A report of each such audit shall be made by the 

Comptroller General to the Congress. The report to the 

Congress shall contain such comments and information as 

the Comptroller General may deem necessary to inform 

Congress of the financial operations and condition of the 

Corporation, together with such recommendations with respect thereto as he may deem advisable. The report shall 

also show specifically any program, expenditure, or other 

financial transaction or undertaking observed in the course 

of the audit, which, in the opinion of the Comptroller General, has been carried on or made without authority of law. 

A copy of each report shall be furnished to the President, 

to the Secretary, and to the Corporation at the time submitted to the Congress. 

(3)(A) Not later than 1 year after the effective date of this 

paragraph, the Corporation, in consultation with the Comptroller General, and as appropriate with others, shall develop 

accounting principles which shall be used uniformly by all public telecommunications entities receiving funds under this subpart, taking into account organizational differences among various categories of such entities. Such principles shall be designed to account fully for all funds received and expended for 

public telecommunications purposes by such entities. 

(B) Each public telecommunications entity receiving 

funds under this subpart shall be required— 

(i) to keep its books, records, and accounts in such 

form as may be required by the Corporation; 

(ii)(I) to undergo a biennial audit by independent 

certified public accountants or independent licensed 

public accountants certified or licensed by a regulatory 

authority of a State, which audit shall be in accordance with auditing standards developed by the Corporation, in consultation with the Comptroller General; or 

(II) to submit a financial statement in lieu of 

the audit required by subclause (I) if the Corporation determines that the cost burden of such audit 

on such entity is excessive in light of the financial 

condition of such entity; and 

(iii) to furnish biennially to the Corporation a copy 

of the audit report required pursuant to clause (ii), as 

well as such other information regarding finances (including an annual financial report) as the Corporation 

may require. 

(C) Any recipient of assistance by grant or contract 

under this section, other than a fixed price contract awarded pursuant to competitive bidding procedures, shall keep 

such records as may be reasonably necessary to disclose 

fully the amount and the disposition by such recipient of 

such assistance, the total cost of the project or undertaking 

in connection with which such assistance is given or used, 

and the amount and nature of that portion of the cost of 

the project or undertaking supplied by other sources, and 

such other records as will facilitate an effective audit. 


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(D) The Corporation or any of its duly authorized representatives shall have access to any books, documents, 

papers, and records of any recipient of assistance for the 

purpose of auditing and examining all funds received or 

expended for public telecommunications purposes by the 

recipient. The Comptroller General of the United States or 

any of his duly authorized representatives also shall have 

access to such books, documents, papers, and records for 

the purpose of auditing and examining all funds received 

or expended for public telecommunications purposes during any fiscal year for which Federal funds are available 

to the Corporation. 

(4)(A) The Corporation shall maintain the information described in subparagraphs (B), (C), and (D) at its offices for public inspection and copying for at least 3 years, according to 

such reasonable guidelines as the Corporation may issue. This 

public file shall be updated regularly. This paragraph shall be 

effective upon its enactment and shall apply to all grants 

awarded after January 1, 1993. 

(B) Subsequent to any award of funds by the Corporation for the production or acquisition of national broadcasting programming pursuant to øsubsection 

(k)(3)(A)(ii)(II) or (iii)(II)¿ clause (ii)(II) or (iii)(II) of subsection (j)(3)(A), the Corporation shall make available for 

public inspection the following: 

(i) Grant and solicitation guidelines for proposals for 

such programming. 

(ii) The reasons for selecting the proposal for which 

the award was made. 

(iii) Information on each program for which the 

award was made, including the names of the awardee 

and producer (and if the awardee or producer is a corporation or partnership, the principals of such corporation or partnership), the monetary amount of the 

award, and the title and description of the program 

(and of each program in a series of programs). 

(iv) A report based on the final audit findings resulting from any audit of the award by the Corporation or 

the Comptroller General. 

(v) Reports which the Corporation shall require to 

be provided by the awardee relating to national public 

broadcasting programming funded, produced, or acquired by the awardee with such funds. Such reports 

shall include, where applicable, the information described in clauses (i), (ii), and (iii), but shall exclude 

proprietary, confidential, or privileged information. 

(C) The Corporation shall make available for public inspection the final report required by the Corporation on an 

annual basis from each recipient of funds under øsubsection (k)(3)(A)(iii)(III)¿ subsection (j)(3)(A)(iii)(III), excluding proprietary, confidential, or privileged information. 

(D) The Corporation shall make available for public inspection an annual list of national programs distributed by 

public broadcasting entities that receive funds under øsubsection (k)(3)(A) (ii)(III) or (iii)(II)¿ clause (ii)(II) or (iii)(II) 


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of subsection (j)(3)(A) and are engaged primarily in the national distribution of public television or radio programs. 

Such list shall include the names of the programs (or program series), producers, and providers of funding. 

ø(m) NEEDS OF MINORITIES AND OTHER GROUPS.— ø(1) Prior to July 1, 1989, and every three years thereafter, 

the Corporation shall compile an assessment of the needs of 

minority and diverse audiences, the plans of public broadcasting entities and public telecommunications entities to address such needs, the ways radio and television can be used to 

help these underrepresented groups, and projections concerning minority employment by public broadcasting entities 

and public telecommunications entities. Such assessment shall 

address the needs of racial and ethnic minorities, new immigrant populations, people for whom English is a second language, and adults who lack basic reading skills. 

ø(2) Commencing July 1, 1989, the Corporation shall prepare 

an annual report on the provision by public broadcasting entities and public telecommunications entities of service to the 

audiences described in paragraph (1). Such report shall address programming (including that which is produced by minority producers), training, minority employment, and efforts 

by the Corporation to increase the number of minority public 

radio and television stations eligible for financial support from 

the Corporation. Such report shall include a summary of the 

statistical reports received by the Corporation pursuant to subsection (k)(11), and a comparison of the information contained 

in those reports with the information submitted by the Corporation in the previous year’s annual report. 

ø(3) As soon as they have been prepared, each assessment 

and annual report required under paragraphs (1) and (2) shall 

be submitted to Congress.¿ 

SEC. 398. FEDERAL INTERFERENCE OR CONTROL. 

[47 U.S.C. 398] 

* * * * * * * 

(b) EQUAL OPPORTUNITY EMPLOYMENT.—. 

(1) Equal opportunity in employment shall be afforded to all 

persons by the Public Broadcasting Service and National Public Radio (or any successor organization) and by all public telecommunications entities receiving funds pursuant to subpart C 

(hereinafter in this subsection referred to as ‘‘recipients’’), in 

accordance with the equal employment opportunity regulations 

of the Commission, and no person shall be subjected to discrimination in employment by any recipient on the grounds of 

race, color, religion, national origin, or sex. 

(2)(A) The Secretary is authorized and directed to enforce 

this subsection and to prescribe such rules and regulations as 

may be necessary to carry out the functions of the Secretary 

under this subsection. 

(B) The Secretary shall provide for close coordination 

with the Commission in the administration of the responsibilities of the Secretary under this subsection which are 

of interest to or affect the functions of the Commission so 

that, to the maximum extent possible consistent with the 


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56 

enforcement responsibilities of each, the reporting requirements of public telecommunications entities shall be uniformly based upon consistent definitions and categories of 

information. 

(3)(A) The Corporation shall incorporate into each grant 

agreement or contract with any recipient entered into on or 

after the effective date of the rules and regulations prescribed 

by the Secretary pursuant to paragraph (2)(A), a statement indicating that, as a material part of the terms and conditions 

of the grant agreement or contract, the recipient will comply 

with the provisions of paragraph (1) and the rules and regulations prescribed pursuant to paragraph (2)(A). Any person 

which desires to be a recipient (within the meaning of paragraph (1)) of funds under subpart C shall, before receiving any 

such funds, provide to the Corporation any information which 

the Corporation may require to satisfy itself that such person 

is affording equal opportunity in employment in accordance 

with the requirements of this subsection. Determinations made 

by the Corporation in accordance with the preceding sentence 

shall be based upon guidelines relating to equal opportunity in 

employment which shall be established by rule by the Secretary. 

(B) If the Corporation is not satisfied that any such person is affording equal opportunity in employment in accordance with the requirements of this subsection, the Corporation shall notify the Secretary, and the Secretary shall 

review the matter and make a final determination regarding whether such person is affording equal opportunity in 

employment. In any case in which the Secretary conducts 

a review under the preceding sentence, the Corporation 

shall make funds available to the person involved pursuant to the grant application of such person (if the Corporation would have approved such application but for the finding of the Corporation under this paragraph) pending a 

final determination of the Secretary upon completion of 

such review. The Corporation shall monitor the equal employment opportunity practices of each recipient throughout the duration of the grant or contract. 

(C) The provisions of subparagraph (A) and subparagraph (B) shall take effect on the effective date of the rules 

and regulations prescribed by the Secretary pursuant to 

paragraph (2)(A). 

(4) Based upon its responsibilities under paragraph (3), the 

Corporation shall provide an annual report for the preceding 

fiscal year ending September 30 to the Secretary on or before 

the 15th day of February of each year. The report shall contain 

information in the form required by the Secretary. øThe Corporation shall submit a summary of such report to the President and the Congress as part of the report required in section 

396(i).¿ The Corporation shall provide other information in the 

form which the Secretary may require in order to carry out the 

functions of the Secretary under this subsection. 

(5) Whenever the Secretary makes a final determination, 

pursuant to the rules and regulations which the Secretary 

shall prescribe, that a recipient is not in compliance with paraVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00058 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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graph (1), the Secretary shall, within 10 days after such determination, notify the recipient in writing of such determination 

and request the recipient to secure compliance. Unless the recipient within 120 days after receipt of such written notice— 

(A) demonstrates to the Secretary that the violation has 

been corrected; or 

(B) enters into a compliance agreement approved by the 

Secretary; 

(1) the Secretary shall direct the Corporation to reduce or 

suspend any further payments of funds under this part to the 

recipient and the Corporation shall comply with such directive. 

Resumption of payments shall take place only when the Secretary certifies to the Corporation that the recipient has entered into a compliance agreement approved by the Secretary. 

A recipient whose funds have been reduced or suspended under 

this paragraph may apply at any time to the Secretary for such 

certification. 

* * * * * * * 

SEC. 399B. OFFERING OF CERTAIN SERVICES, FACILITIES, OR PRODUCTS BY PUBLIC BROADCAST STATIONS. 

[47 U.S.C. 399b] 

* * * * * * * 

(c) USE OF FUNDS FROM OFFERING SERVICES, ETC.—Any public 

broadcast station which engages in any offering specified in subsection (b)(1) may not use any funds distributed by the Corporation 

under øsection 396(k)¿ section 396(j) to defray any costs associated 

with such offering. Any such offering by a public broadcast station 

shall not interfere with the provision of public telecommunications 

services by such station. 

* * * * * * * 

SEC. 615. CARRIAGE OF NONCOMMERCIAL EDUCATIONAL TELEVISION. 

[47 U.S.C. 535] 

(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 øsection 396(k)(6)(B)¿ 

section 396(j)(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 


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58 

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 TELE- VISION 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 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 system. 

SEC. 623. REGULATION OF RATES. 

[47 U.S.C. 543] 

* * * * * * * 

(k) REPORTS ON AVERAGE PRICES.— 

(1) IN GENERAL.—The Commission shall øannually publish¿ 

publish with its report under section 13 of the Communications 

Act of 1934 statistical reports on the average rates for basic 

cable service and other cable programming, and for converter 

boxes, remote control units, and other equipment of cable systems that the Commission has found are subject to effective 

competition under subsection (a)(2) compared with cable systems that the Commission has found are not subject to such 

effective competition. 

(2) INCLUSION IN øANNUAL¿ REPORT.— 

(A) IN GENERAL.—The Commission shall include in its 

report under paragraph (1) the aggregate average total 

amount paid by cable systems in compensation under section 325. 

(B) FORM.—The Commission shall publish information 

under this paragraph in a manner substantially similar to 

the way other comparable information is published in such 

report. 

* * * * * * * 

SEC. 624A. CONSUMER ELECTRONICS EQUIPMENT COMPATIBILITY. 

[47 U.S.C. 544a] 

* * * * * * * 

(b) COMPATIBLE INTERFACES.— 

(1) øREPORT; REGULATIONS¿ REGULATIONS.—øWithin 1 year 

after the date of enactment of this section, the Commission, in 

consultation with representatives of the cable industry and the 

consumer electronics industry, shall report to Congress on 


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59 

means of assuring¿ The Commission shall issue such regulations as are necessary to assure compatibility between televisions and video cassette recorders and cable systems, consistent with the need to prevent theft of cable service, so that 

cable subscribers will be able to enjoy the full benefit of both 

the programming available on cable systems and the functions 

available on their televisions and video cassette recorders. 

øWithin 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 systems to scramble or encrypt signals or to restrict cable 

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. 

* * * * * * * 

SEC. 628. 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 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, a satellite cable programming vendor in which a cable operator 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 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 which has an attributable interest in a satellite cable 

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 

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cast programming to any unaffiliated multichannel video 

programming distributor; 

(B) prohibit discrimination by a satellite cable programming vendor in which a cable operator has an attributable 

interest or by a satellite broadcast programming vendor in 

the prices, terms, and conditions of sale or delivery of satellite cable programming or satellite broadcast programming among or between cable systems, cable operators, or 

other multichannel video programming distributors, or 

their agents or buying groups; except that such a satellite 

cable programming vendor in which a cable operator 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 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 programming or satellite broadcast programming between a cable operator and a satellite cable programming 

vendor or satellite broadcast programming vendor, that 

prevent a multichannel video programming distributor 

from obtaining such programming from any satellite cable 

programming vendor in which a cable operator has an attributable interest or any satellite broadcast programming 

vendor in which a cable operator has an attributable interest for distribution to persons in areas not served by a 

cable operator as of the date of enactment of this section; 

and 

(D) with respect to distribution to persons in areas 

served by a cable operator, prohibit exclusive contracts for 

satellite cable programming or satellite broadcast programming between a cable operator and a satellite cable 

programming vendor in which a cable operator has an attributable interest or a satellite broadcast programming 

vendor in which a cable operator 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 


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61 

programming available in any geographic area beyond 

which such programming has been authorized or licensed 

for distribution. 

(B) APPLICABILITY TO SATELLITE RETRANSMISSIONS.— Nothing in this section shall apply (i) to the signal of any 

broadcast affiliate of a national television network or other 

television signal that is retransmitted by satellite but that 

is not satellite broadcast programming, or (ii) to any internal satellite communication of any broadcast network or 

cable network that is not satellite broadcast programming. 

(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: 

(A) the effect of such exclusive contract on the development of competition in local and national multichannel 

video programming distribution markets; 

(B) the effect of such exclusive contract on competition 

from multichannel video programming distribution technologies other than cable; 

(C) the effect of such exclusive contract on the attraction 

of capital investment in the production and distribution of 

new satellite cable 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, unless the Commission finds, in 

a proceeding conducted during the last year of such 10-year period, that such prohibition continues to be necessary to preserve and protect competition and diversity in the distribution 

of video programming. 

(d) ADJUDICATORY PROCEEDING.—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; 


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(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. 

ø(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.¿ 

ø(j)¿ (g) COMMON CARRIERS.—Any provision that applies to a 

cable operator 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 programming vendor in which a cable operator has an attributable interest shall apply to any satellite cable 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 programming vendor (or its parent company). 

(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 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. 

(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 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 programming vendor’’ means a 

person engaged in the production, creation, or wholesale distribution for sale of satellite cable 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. 

SEC. 713. VIDEO PROGRAMMING ACCESSIBILITY. 

[47 U.S.C. 613] 

ø(a) COMMISSION INQUIRY.—Within 180 days after the date of enactment of the Telecommunications Act of 1996, the Federal ComVerDate Sep 11 2014 05:53 May 12, 2017 Jkt 069010 PO 00000 Frm 00064 Fmt 6659 Sfmt 6602 E:\HR\OC\SR061.XXX SR061

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munications Commission shall complete an inquiry to ascertain the 

level at which video programming is closed captioned. Such inquiry 

shall examine the extent to which existing or previously published 

programming is closed captioned, the size of the video programming provider or programming owner providing closed captioning, 

the size of the market served, the relative audience shares 

achieved, or any other related factors. The Commission shall submit to the Congress a report on the results of such inquiry.¿ 

ø(b)¿ (a) ACCOUNTABILITY CRITERIA.—Within 18 months after 

øsuch date of enactment¿ the date of enactment of the Telecommunications Act of 1996, the Commission shall prescribe such 

regulations as are necessary to implement this section. Such regulations shall ensure that— 

(1) video programming first published or exhibited after the 

effective date of such regulations is fully accessible through the 

provision of closed captions, except as provided in øsubsection 

(d)¿ subsection (c); and 

(2) video programming providers or owners maximize the accessibility of video programming first published or exhibited 

prior to the effective date of such regulations through the provision of closed captions, except as provided in øsubsection (d)¿ 

subsection (c). 

ø(c)¿ (b) DEADLINES FOR CAPTIONING.— 

(1) IN GENERAL.—The regulations prescribed pursuant to 

øsubsection (b)¿ subsection (a) shall include an appropriate 

schedule of deadlines for the provision of closed captioning of 

video programming once published or exhibited on television. 

(2) DEADLINES FOR PROGRAMMING DELIVERED USING INTERNET PROTOCOL.— 

(A) REGULATIONS ON CLOSED CAPTIONING ON VIDEO PROGRAMMING DELIVERED USING INTERNET PROTOCOL.—Not 

later than 6 months after the submission of the report to 

the Commission required by subsection (e)(1) of the Twenty-First Century Communications and Video Accessibility 

Act of 2010, the Commission shall revise its regulations to 

require the provision of closed captioning on video programming delivered using Internet protocol that was published or exhibited on television with captions after the effective date of such regulations. 

(B) SCHEDULE.—The regulations prescribed under this 

paragraph shall include an appropriate schedule of deadlines for the provision of closed captioning, taking into account whether such programming is prerecorded and edited for Internet distribution, or whether such programming 

is live or near-live and not edited for Internet distribution. 

(C) COST.—The Commission may delay or waive the regulation promulgated under subparagraph (A) to the extent 

the Commission finds that the application of the regulation to live video programming delivered using Internet 

protocol with captions after the effective date of such regulations would be economically burdensome to providers of 

video programming or program owners. 

(D) REQUIREMENTS FOR REGULATIONS.—The regulations 

prescribed under this paragraph— 


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(i) shall contain a definition of ‘‘near-live programming’’ and ‘‘edited for Internet distribution’’; 

(ii) may exempt any service, class of service, program, class of program, equipment, or class of equipment for which the Commission has determined that 

the application of such regulations would be economically burdensome for the provider of such service, program, or equipment; 

(iii) shall clarify that, for the purposes of implementation, of this subsection, the terms ‘‘video programming distributors’’ and ‘‘video programming providers’’ 

include an entity that makes available directly to the 

end user video programming through a distribution 

method that uses Internet protocol; 

(iv) and describe the responsibilities of video programming providers or distributors and video programming owners; 

(v) shall establish a mechanism to make available to 

video programming providers and distributors information on video programming subject to the Act on an 

ongoing basis; 

(vi) shall consider that the video programming provider or distributor shall be deemed in compliance if 

such entity enables the rendering or pass through of 

closed captions and makes a good faith effort to identify video programming subject to the Act using the 

mechanism created in (v); and 

(vii) shall provide that de minimis failure to comply 

with such regulations by a video programming provider or owner shall not be treated as a violation of 

the regulations. 

(3) ALTERNATE MEANS OF COMPLIANCE.—An entity may meet 

the requirements of this section through alternate means than 

those prescribed by regulations pursuant to øsubsection (b)¿ 

subsection (a), as revised pursuant to paragraph (2)(A) of this 

subsection, if the requirements of this section are met, as determined by the Commission. 

ø(d)¿ (c) EXEMPTIONS.—Notwithstanding øsubsection (b)¿ subsection (a)— (1) the Commission may exempt by regulation programs, 

classes of programs, or services for which the Commission has 

determined that the provision of closed captioning would be 

economically burdensome to the provider or owner of such programming; 

(2) a provider of video programming or the owner of any program carried by the provider shall not be obligated to supply 

closed captions if such action would be inconsistent with contracts in effect on the date of enactment of the Telecommunications Act of 1996, except that nothing in this section shall be 

construed to relieve a video programming provider of its obligations to provide services required by Federal law; and 

(3) a provider of video programming or program owner may 

petition the Commission for an exemption from the requirements of this section, and the Commission may grant such petition upon a showing that the requirements contained in this 


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section would be economically burdensome. During the pendency of such a petition, such provider or owner shall be exempt 

from the requirements of this section. The Commission shall 

act to grant or deny any such petition, in whole or in part, 

within 6 months after the Commission receives such petition, 

unless the Commission finds that an extension of the 6-month 

period is necessary to determine whether such requirements 

are economically burdensome. 

ø(e)¿ (d) UNDUE BURDEN.—The term ‘‘undue burden’’ means significant difficulty or expense. In determining whether the closed 

captions necessary to comply with the requirements of this paragraph would result in an undue economic burden, the factors to be 

considered include— 

(1) the nature and cost of the closed captions for the programming; 

(2) the impact on the operation of the provider or program 

owner; 

(3) the financial resources of the provider or program owner; 

and 

(4) the type of operations of the provider or program owner. 

ø(f)¿ (e) VIDEO DESCRIPTION.— (1) REINSTATEMENT OF REGULATIONS.—On the day that is 1 

year after the date of enactment of the Twenty-First Century 

Communications and Video Accessibility Act of 2010, the Commission shall, after a rulemaking, reinstate its video description regulations contained in the Implementation of Video Description of Video Programming Report and Order (15 F.C.C.R. 

15,230 (2000)), recon. granted in part and denied in part, (16 

F.C.C.R. 1251 (2001)), modified as provided in paragraph (2). 

(2) MODIFICATIONS TO REINSTATED REGULATIONS.—Such regulations shall be modified only as follows: 

(A) The regulations shall apply to video programming, as 

defined in øsubsection (h)¿ subsection (g), insofar as such 

programming is transmitted for display on television in 

digital format. 

(B) The Commission shall update the list of the top 25 

designated market areas, the list of the top 5 national nonbroadcast networks that have at least 50 hours per quarter of prime time programming that is not exempt under 

this paragraph, and the beginning calendar quarter for 

which compliance shall be calculated. 

(C) The regulations may permit a provider of video programming or a program owner to petition the Commission 

for an exemption from the requirements of this section 

upon a showing that the requirements contained in this 

section be economically burdensome. 

(D) The Commission may exempt from the regulations 

established pursuant to paragraph (1) a service, class of 

services, program, class of programs, equipment, or class of 

equipment for which the Commission has determined that 

the application of such regulations would be economically 

burdensome for the provider of such service, program, or 

equipment. 

(E) The regulations shall not apply to live or near-live 

programming. 


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(F) The regulations shall provide for an appropriate 

phased schedule of deadlines for compliance. 

(G) The Commission shall consider extending the exemptions and limitations in the reinstated regulations for technical capability reasons to all providers and owners of 

video programming. 

(3) INQUIRIES ON FURTHER VIDEO DESCRIPTION REQUIRE- MENTS.—The Commission shall commence the following inquiries not later than 1 year after the completion of the phase-in 

of the reinstated regulations and shall report to Congress 1 

year thereafter on the findings for each of the following: 

(A) VIDEO DESCRIPTION IN TELEVISION PROGRAMMING.— 

The availability, use, and benefits of video description on 

video programming distributed on television, the technical 

and creative issues associated with providing such video 

description, and the financial costs of providing such video 

description for providers of video programming and program owners. 

(B) VIDEO DESCRIPTION IN VIDEO PROGRAMMING DISTRIBUTED ON THE INTERNET.—The technical and operational 

issues, costs, and benefits of providing video descriptions 

for video programming that is delivered using Internet 

protocol. 

(4) CONTINUING COMMISSION AUTHORITY.— (A) IN GENERAL.—The Commission may not issue additional regulations unless the Commission determines, at 

least 2 years after completing the reports required in paragraph (3), that the need for and benefits of providing video 

description for video programming, insofar as such programming is transmitted for display on television, are 

greater than the technical and economic costs of providing 

such additional programming. 

(B) LIMITATION.—If the Commission makes the determination under subparagraph (A) and issues additional 

regulations, the Commission may not increase, in total, the 

hour requirement for additional described programming by 

more than 75 percent of the requirement in the regulations 

reinstated under paragraph (1). 

(C) APPLICATION TO DESIGNATED MARKET AREAS.— (i) IN GENERAL.—After the Commission completes 

the reports on video description required in paragraph 

(3), the Commission shall phase in the video description regulations for the top 60 designated market 

areas, except that the Commission may grant waivers 

to entities in specific designated market areas where 

it deems appropriate. 

(ii) PHASE-IN DEADLINE.—The phase-in described in 

clause (i) shall be completed not later than 6 years 

after the date of enactment of the Twenty-First Century Communications and Video Accessibility Act of 

2010. 

(iii) REPORT.—Nine years after the date of enactment of the Twenty-First Century Communications 

and Video Accessibility Act of 2010, the Commission 

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merce of the House of Representatives and the Committee on Commerce, Science, and Transportation of 

the Senate a report assessing— 

(I) the types of described video programming 

that is available to consumers; 

(II) consumer use of such programming; 

(III) the costs to program owners, providers, and 

distributors of creating such programming; 

(IV) the potential costs to program owners, providers, and distributors in designated market 

areas outside of the top 60 of creating such programming; 

(V) the benefits to consumers of such programming; 

(VI) the amount of such programming currently 

available; and 

(VII) the need for additional described programming in designated market areas outside the top 

60. 

(iv) ADDITIONAL MARKET AREAS.—Ten years after the 

date of enactment of the Twenty-First Century Communications and Video Accessibility Act of 2010, the 

Commission shall have the authority, based upon the 

findings, conclusions, and recommendations contained 

in the report under clause (iii), to phase in the video 

description regulations for up to an additional 10 designated market areas each year— 

(I) if the costs of implementing the video description regulations to program owners, providers, and distributors in those additional markets are reasonable, as determined by the Commission; and 

(II) except that the Commission may grant 

waivers to entities in specific designated market 

areas where it deems appropriate. 

ø(g)¿ (f) EMERGENCY INFORMATION.—Not later than 1 year after 

the Advisory Committee report under øsubsection (e)(2)¿ subsection 

(d)(2) is submitted to the Commission, the Commission shall complete a proceeding to— 

(1) identify methods to convey emergency information (as 

that term is defined in section 79.2 of title 47, Code of Federal 

Regulations) in a manner accessible to individuals who are 

blind or visually impaired; and 

(2) promulgate regulations that require video programming 

providers and video programming distributors (as those terms 

are defined in section 79.1 of title 47, Code of Federal Regulations) and program owners to convey such emergency information in a manner accessible to individuals who are blind or visually impaired. 

ø(h)¿ (g) DEFINITIONS.—For purposes of this section, section 303, 

and section 330: 

(1) VIDEO DESCRIPTION.—The term ‘‘video description’’ means 

the insertion of audio narrated descriptions of a television program’s key visual elements into natural pauses between the 

program’s dialogue. 


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(2) VIDEO PROGRAMMING.—The term ‘‘video programming’’ 

means programming by, or generally considered comparable to 

programming provided by a television broadcast station, but 

not including consumer-generated media (as defined in section 

3). 

ø(j)¿ (h) PRIVATE RIGHTS OF ACTIONS PROHIBITED.—Nothing in 

this section shall be construed to authorize any private right of action to enforce any requirement of this section or any regulation 

thereunder. The Commission shall have exclusive jurisdiction with 

respect to any complaint under this section. 

MIDDLE CLASS TAX RELIEF AND JOB CREATION ACT OF 

2012 

[Public Law 112—96; 126 Stat. 156] 

SEC. 6401. DEADLINES FOR AUCTION OF CERTAIN SPECTRUM. 

[47 U.S.C. 1451] 

* * * * * * * 

(b) REALLOCATION AND AUCTION.— (1) IN GENERAL.—Notwithstanding paragraph ø(15)(A)¿ 

(14)(A) of section 309(j) of the Communications Act of 1934 (47 

U.S.C. 309(j)), not later than 3 years after the date of the enactment of this Act, the Commission shall, except as provided 

in paragraph (4)— 

(A) allocate the spectrum described in paragraph (2) for 

commercial use; and 

(B) through a system of competitive bidding under such 

section, grant new initial licenses for the use of such spectrum, subject to flexible-use service rules. 

(2) SPECTRUM DESCRIBED.—The spectrum described in this 

paragraph is the following: 

(A) The frequencies between 1915 megahertz and 1920 

megahertz. 

(B) The frequencies between 1995 megahertz and 2000 

megahertz. 

(C) The frequencies described in subsection (a)(2). 

(D) The frequencies between 2155 megahertz and 2180 

megahertz. 

(E) Fifteen megahertz of contiguous spectrum to be identified by the Commission. 

(3) PROCEEDS TO COVER 110 PERCENT OF FEDERAL RELOCA- TION OR SHARING COSTS.—Nothing in paragraph (1) shall be 

construed to relieve the Commission from the requirements of 

section ø309(j)(16)(B) of the Communications Act of 1934 (47 

U.S.C. 309(j)(16)(B))¿ section 309(j)(15)(B) of the Communications Act of 1934 (47 U.S.C. 309(j)(15)(B)). 

(4) DETERMINATION BY COMMISSION.—If the Commission determines that the band of frequencies described in paragraph 

(2)(A) or the band of frequencies described in paragraph (2)(B) 

cannot be used without causing harmful interference to commercial mobile service licensees in the frequencies between 

1930 megahertz and 1995 megahertz, the Commission may 

not— 

(A) allocate such band for commercial use under paragraph (1)(A); or 


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(B) grant licenses under paragraph (1)(B) for the use of 

such band. 

TITLE 17. COPYRIGHTS 

CHAPTER 1. SUBJECT MATTER AND SCOPE OF COPYRIGHT

§ 114. Scope of exclusive rights in sound recordings 

* * * * * * * 

(d) LIMITATIONS ON EXCLUSIVE RIGHT.—Notwithstanding the provisions of section 106(6)— 

(1) EXEMPT TRANSMISSIONS AND RETRANSMISSIONS.—The performance of a sound recording publicly by means of a digital 

audio transmission, other than as a part of an interactive service, is not an infringement of section 106(6) if the performance 

is part of— 

(A) a nonsubscription broadcast transmission; 

(B) a retransmission of a nonsubscription broadcast 

transmission: Provided, That, in the case of a retransmission of a radio station’s broadcast transmission— 

(i) the radio station’s broadcast transmission is not 

willfully or repeatedly retransmitted more than a radius of 150 miles from the site of the radio broadcast 

transmitter, however— 

(I) the 150 mile limitation under this clause 

shall not apply when a nonsubscription broadcast 

transmission by a radio station licensed by the 

Federal Communications Commission is retransmitted on a nonsubscription basis by a terrestrial 

broadcast station, terrestrial translator, or terrestrial repeater licensed by the Federal Communications Commission; and 

(II) in the case of a subscription retransmission 

of a nonsubscription broadcast retransmission covered by subclause (I), the 150 mile radius shall be 

measured from the transmitter site of such broadcast retransmitter; 

(ii) the retransmission is of radio station broadcast 

transmissions that are— 

(I) obtained by the retransmitter over the air; 

(II) not electronically processed by the retransmitter to deliver separate and discrete signals; 

and 

(III) retransmitted only within the local communities served by the retransmitter; 

(iii) the radio station’s broadcast transmission was 

being retransmitted to cable systems (as defined in 

section 111(f)) by a satellite carrier on January 1, 

1995, and that retransmission was being retransmitted by cable systems as a separate and discrete signal, and the satellite carrier obtains the radio station’s 

broadcast transmission in an analog format: Provided, 

That the broadcast transmission being retransmitted 

may embody the programming of no more than one 

radio station; or 


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(iv) the radio station’s broadcast transmission is 

made by a noncommercial educational broadcast station funded on or after January 1, 1995, under øsection 396(k) of the Communications Act of 1934 (47 

U.S.C. 396(k))¿ section 296(j) of the Communications 

Act of 1934 (47 U.S.C. 396(j)), consists solely of noncommercial educational and cultural radio programs, 

and the retransmission, whether or not simultaneous, 

is a nonsubscription terrestrial broadcast retransmission; or 

(C) a transmission that comes within any of the following categories— 

(i) a prior or simultaneous transmission incidental 

to an exempt transmission, such as a feed received by 

and then retransmitted by an exempt transmitter: 

Provided, That such incidental transmissions do not 

include any subscription transmission directly for reception by members of the public; 

(ii) a transmission within a business establishment, 

confined to its premises or the immediately surrounding vicinity; 

(iii) a retransmission by any retransmitter, including a multichannel video programming distributor as 

defined in section 602(12) of the Communications Act 

of 1934 (47 U.S.C. 522(12)), of a transmission by a 

transmitter licensed to publicly perform the sound recording as a part of that transmission, if the retransmission is simultaneous with the licensed transmission and authorized by the transmitter; or 

(iv) a transmission to a business establishment for 

use in the ordinary course of its business: Provided, 

That the business recipient does not retransmit the 

transmission outside of its premises or the immediately surrounding vicinity, and that the transmission does not exceed the sound recording performance complement. Nothing in this clause shall limit 

the scope of the exemption in clause (ii). 

* * * * * * * 

§ 119. Limitations on exclusive rights: Secondary transmissions of distant television programming by satellite 

(a) SECONDARY TRANSMISSIONS BY SATELLITE CARRIERS.— (1) NON-NETWORK STATIONS.—Subject to the provisions of 

paragraphs (4), (5), and (7) of this subsection and section 

114(d), secondary transmissions of a performance or display of 

a work embodied in a primary transmission made by a nonnetwork station shall be subject to statutory licensing under 

this section if the secondary transmission is made by a satellite 

carrier to the public for private home viewing or for viewing in 

a commercial establishment, with regard to secondary transmissions the satellite carrier is in compliance with the rules, 

regulations, or authorizations of the Federal Communications 

Commission governing the carriage of television broadcast station signals, and the carrier makes a direct or indirect charge 


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for each retransmission service to each subscriber receiving the 

secondary transmission or to a distributor that has contracted 

with the carrier for direct or indirect delivery of the secondary 

transmission to the public for private home viewing or for 

viewing in a commercial establishment. 

(2) NETWORK STATIONS.— (A) IN GENERAL.—Subject to the provisions of subparagraph (B) of this paragraph and paragraphs (4), (5), (6), 

and (7) of this subsection and section 114(d), secondary 

transmissions of a performance or display of a work embodied in a primary transmission made by a network station shall be subject to statutory licensing under this section if the secondary transmission is made by a satellite 

carrier to the public for private home viewing, with regard 

to secondary transmissions the satellite carrier is in compliance with the rules, regulations, or authorizations of the 

Federal Communications Commission governing the carriage of television broadcast station signals, and the carrier makes a direct or indirect charge for such retransmission service to each subscriber receiving the secondary 

transmission. 

(B) SECONDARY TRANSMISSIONS TO UNSERVED HOUSE- HOLDS.— 

(i) IN GENERAL.—The statutory license provided for 

in subparagraph (A) shall be limited to secondary 

transmissions of the signals of no more than two network stations in a single day for each television network to persons who reside in unserved households. 

(ii) ACCURATE DETERMINATIONS OF ELIGIBILITY.— 

(I) ACCURATE PREDICTIVE MODEL.—In determining presumptively whether a person resides in 

an unserved household under subsection 

(d)(10)(A), a court shall rely on the Individual Location Longley-Rice model set forth by the Federal 

Communications Commission in Docket No. 98- 

201, as that model may be amended by the Commission over time under øsection 339(c)(3)¿ section 

339(c)(2) of the Communications Act of 1934 to increase the accuracy of that model. 

(II) ACCURATE MEASUREMENTS.—For purposes of 

site measurements to determine whether a person 

resides in an unserved household under subsection (d)(10)(A), a court shall rely on øsection 

339(c)(4)¿ section 339(c)(3) of the Communications 

Act of 1934. 

(III) ACCURATE PREDICTIVE MODEL WITH RESPECT TO DIGITAL SIGNALS.—Notwithstanding subclause (I), in determining presumptively whether 

a person resides in an unserved household under 

subsection (d)(10)(A) with respect to digital signals, a court shall rely on a predictive model set 

forth by the Federal Communications Commission 

pursuant to a rulemaking as provided in øsection 

339(c)(3) of the Communications Act of 1934 (47 

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nications Act of 1934 (47 U.S.C. 339(c)(2)), as that 

model may be amended by the Commission over 

time under such section to increase the accuracy 

of that model. Until such time as the Commission 

sets forth such model, a court shall rely on the 

predictive model as recommended by the Commission with respect to digital signals in its Report to 

Congress in ET Docket No. 05-182, FCC 05-199 

(released December 9, 2005). 

(iii) C-BAND EXEMPTION TO UNSERVED HOUSEHOLDS.— 

(I) IN GENERAL.—The limitations of clause (i) 

shall not apply to any secondary transmissions by 

C-band services of network stations that a subscriber to C-band service received before any termination of such secondary transmissions before 

October 31, 1999. 

(II) DEFINITION.—In this clause, the term ‘‘Cband service’’ means a service that is licensed by 

the Federal Communications Commission and operates in the Fixed Satellite Service under part 25 

of title 47, Code of Federal Regulations. 

(C) SUBMISSION OF SUBSCRIBER LISTS TO NETWORKS.— 

(i) INITIAL LISTS.—A satellite carrier that makes secondary transmissions of a primary transmission made 

by a network station pursuant to subparagraph (A) 

shall, not later than 90 days after commencing such 

secondary transmissions, submit to the network that 

owns or is affiliated with the network station a list 

identifying (by name and address, including street or 

rural route number, city, State, and 9-digit zip code) 

all subscribers to which the satellite carrier makes 

secondary transmissions of that primary transmission 

to subscribers in unserved households. 

(ii) MONTHLY LISTS.—After the submission of the initial lists under clause (i), the satellite carrier shall, not 

later than the 15th of each month, submit to the network a list, aggregated by designated market area, 

identifying (by name and address, including street or 

rural route number, city, State, and 9-digit zip code) 

any persons who have been added or dropped as subscribers under clause (i) since the last submission 

under this subparagraph. 

(iii) USE OF SUBSCRIBER INFORMATION.—Subscriber 

information submitted by a satellite carrier under this 

subparagraph may be used only for purposes of monitoring compliance by the satellite carrier with this 

subsection. 

(iv) APPLICABILITY.—The submission requirements of 

this subparagraph shall apply to a satellite carrier 

only if the network to which the submissions are to be 

made places on file with the Register of Copyrights a 

document identifying the name and address of the person to whom such submissions are to be made. The 


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Register shall maintain for public inspection a file of 

all such documents. 

(3) STATUTORY LICENSE WHERE RETRANSMISSIONS INTO LOCAL

MARKET AVAILABLE.— (A) RULES FOR SUBSCRIBERS TO SIGNALS UNDER SUB- SECTION (E).— (i) FOR THOSE RECEIVING DISTANT SIGNALS.—In the 

case of a subscriber of a satellite carrier who is eligible 

to receive the secondary transmission of the primary 

transmission of a network station solely by reason of 

subsection (e) (in this subparagraph referred to as a 

‘‘distant signal’’), and who, as of October 1, 2004, is receiving the distant signal of that network station, the 

following shall apply: 

(I) In a case in which the satellite carrier makes 

available to the subscriber the secondary transmission of the primary transmission of a local network station affiliated with the same television 

network pursuant to the statutory license under 

section 122, the statutory license under paragraph 

(2) shall apply only to secondary transmissions by 

that satellite carrier to that subscriber of the distant signal of a station affiliated with the same 

television network— 

(aa) if, within 60 days after receiving the 

notice of the satellite carrier under section 

338(h)(1) of the Communications Act of 1934, 

the subscriber elects to retain the distant signal; but 

(bb) only until such time as the subscriber 

elects to receive such loca signal. 

(II) Notwithstanding subclause (I), the statutory 

license under paragraph (2) shall not apply with 

respect to any subscriber who is eligible to receive 

the distant signal of a television network station 

solely by reason of subsection (e), unless the satellite carrier, within 60 days after the date of the 

enactment of the Satellite Home Viewer Extension 

and Reauthorization Act of 2004, submits to that 

television network a list, aggregated by designated 

market area (as defined in section 122(j)(2)(C)), 

that— 

(aa) identifies that subscriber by name and 

address (street or rural route number, city, 

State, and zip code) and specifies the distant 

signals received by the subscriber; and 

(bb) states, to the best of the satellite carrier’s knowledge and belief, after having made 

diligent and good faith inquiries, that the subscriber is eligible under subsection (e) to receive the distant signals. 

(ii) FOR THOSE NOT RECEIVING DISTANT SIGNALS.—In 

the case of any subscriber of a satellite carrier who is 

eligible to receive the distant signal of a network station solely by reason of subsection (e) and who did not 


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74 

receive a distant signal of a station affiliated with the 

same network on October 1, 2004, the statutory license under paragraph (2) shall not apply to secondary transmissions by that satellite carrier to that 

subscriber of the distant signal of a station affiliated 

with the same network. 

(B) RULES FOR LAWFUL SUBSCRIBERS AS OF DATE OF EN- ACTMENT OF 2010 ACT.—In the case of a subscriber of a satellite carrier who, on the day before the date of the enactment of the Satellite Television Extension and Localism 

Act of 2010, was lawfully receiving the secondary transmission of the primary transmission of a network station 

under the statutory license under paragraph (2) (in this 

subparagraph referred to as the ‘‘distant signal’’), other 

than subscribers to whom subparagraph (A) applies, the 

statutory license under paragraph (2) shall apply to secondary transmissions by that satellite carrier to that subscriber of the distant signal of a station affiliated with the 

same television network, and the subscriber’s household 

shall continue to be considered to be an unserved household with respect to such network, until such time as the 

subscriber elects to terminate such secondary transmissions, whether or not the subscriber elects to subscribe 

to receive the secondary transmission of the primary transmission of a local network station affiliated with the same 

network pursuant to the statutory license under section 

122. 

(C) FUTURE APPLICABILITY.— (i) WHEN LOCAL SIGNAL AVAILABLE AT TIME OF SUBSCRIPTION.—The statutory license under paragraph (2) 

shall not apply to the secondary transmission by a satellite carrier of the primary transmission of a network 

station to a person who is not a subscriber lawfully receiving such secondary transmission as of the date of 

the enactment of the Satellite Television Extension 

and Localism Act of 2010 and, at the time such person 

seeks to subscribe to receive such secondary transmission, resides in a local market where the satellite 

carrier makes available to that person the secondary 

transmission of the primary transmission of a local 

network station affiliated with the same network pursuant to the statutory license under section 122. 

(ii) WHEN LOCAL SIGNAL AVAILABLE AFTER SUBSCRIPTION.—In the case of a subscriber who lawfully subscribes to and receives the secondary transmission by 

a satellite carrier of the primary transmission of a network station under the statutory license under paragraph (2) (in this clause referred to as the ‘‘distant signal’’) on or after the date of the enactment of the Satellite Television Extension and Localism Act of 2010, 

the statutory license under paragraph (2) shall apply 

to secondary transmissions by that satellite carrier to 

that subscriber of the distant signal of a station affiliated with the same television network, and the subscriber’s household shall continue to be considered to 


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75 

be an unserved household with respect to such network, until such time as the subscriber elects to terminate such secondary transmissions, but only if such 

subscriber subscribes to the secondary transmission of 

the primary transmission of a local network station affiliated with the same network within 60 days after 

the satellite carrier makes available to the subscriber 

such secondary transmission of the primary transmission of such local network station. 

(D) OTHER PROVISIONS NOT AFFECTED.—This paragraph 

shall not affect the applicability of the statutory license to 

secondary transmissions to unserved households included 

under paragraph (11). 

(E) WAIVER.—A subscriber who is denied the secondary 

transmission of a network station under subparagraph (B) 

or (C) may request a waiver from such denial by submitting a request, through the subscriber’s satellite carrier, to 

the network station in the local market affiliated with the 

same network where the subscriber is located. The network station shall accept or reject the subscriber’s request 

for a waiver within 30 days after receipt of the request. If 

the network station fails to accept or reject the subscriber’s 

request for a waiver within that 30-day period, that network station shall be deemed to agree to the waiver request. Unless specifically stated by the network station, a 

waiver that was granted before the date of the enactment 

of the Satellite Home Viewer Extension and Reauthorization Act of 2004 under øsection 339(c)(2)¿ section 339(c)(1) 

of the Communications Act of 1934 shall not constitute a 

waiver for purposes of this subparagraph. 

(F) AVAILABLE DEFINED.—For purposes of this paragraph, a satellite carrier makes available a secondary 

transmission of the primary transmission of a local station 

to a subscriber or person if the satellite carrier offers that 

secondary transmission to other subscribers who reside in 

the same 9-digit zip code as that subscriber or person. 

* * * * * * * 

(13) WAIVERS.—A subscriber who is denied the secondary 

transmission of a signal of a network station under subsection 

(a)(2)(B) may request a waiver from such denial by submitting 

a request, through the subscriber’s satellite carrier, to the network station asserting that the secondary transmission is prohibited. The network station shall accept or reject a subscriber’s request for a waiver within 30 days after receipt of 

the request. If a television network station fails to accept or reject a subscriber’s request for a waiver within the 30-day period after receipt of the request, that station shall be deemed 

to agree to the waiver request and have filed such written 

waiver. Unless specifically stated by the network station, a 

waiver that was granted before the date of the enactment of 

the Satellite Home Viewer Extension and Reauthorization Act 

of 2004 under øsection 339(c)(2)¿ section 339(c)(1) of the Communications Act of 1934, and that was in effect on such date 

of enactment, shall constitute a waiver for purposes of this 

paragraph. 


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(14) RESTRICTED TRANSMISSION OF OUT-OF-STATE DISTANT

NETWORK SIGNALS INTO CERTAIN MARKETS.— (A) OUT-OF-STATE NETWORK AFFILIATES.—Notwithstanding any other provision of this title, the statutory license in this subsection and subsection (b) shall not apply 

to any secondary transmission of the primary transmission 

of a network station located outside of the State of Alaska 

to any subscriber in that State to whom the secondary 

transmission of the primary transmission of a television 

station located in that State is made available by the satellite carrier pursuant to section 122. 

(B) EXCEPTION.—The limitation in subparagraph (A) 

shall not apply to the secondary transmission of the primary transmission of a digital signal of a network station 

located outside of the State of Alaska if at the time that 

the secondary transmission is made, no television station 

licensed to a community in the State and affiliated with 

the same network makes primary transmissions of a digital signal. 

Æ 


lotter on DSK5VPTVN1PROD with REPORTS