A bill to amend the Communications Act of 1934 to establish signal quality and content requirements for the carriage of public, educational, and governmental channels, to preserve support of such channels, and for other purposes.

SECTION 1. PEG SIGNAL QUALITY AND CONTENT; PRESERVATION OF SUPPORT OF 
              PEG USE.

    (a) In General.--Section 611 of the Communications Act of 1934 (47 
U.S.C. 531) is amended--
            (1) by redesignating subsection (f) as subsection (h); and
            (2) by inserting after subsection (e) the following:
    ``(f) Signal Quality and Content.--
            ``(1) In general.--A cable operator that operates a cable 
        system with channel capacity designated under subsection (b) or 
        that is required to provide channel capacity under subsection 
        (g)(6) shall, with respect to such channel capacity--
                    ``(A) carry signals for public, educational, or 
                governmental use from the point of origin of such 
                signals to subscribers without material degradation and 
                without altering or removing content or data provided 
                as part of the public, educational, or governmental 
                use;
                    ``(B) provide such signals to, and make such 
                signals viewable by, every subscriber of the cable 
                system without additional service or equipment charges; 
                and
                    ``(C) provide to the appropriate local government 
                subdivision, free of charge, any transmission services 
                and the use of any transmission facilities that are 
                necessary to meet the requirements of subparagraph (A).
            ``(2) Enforcement.--The requirements of this subsection may 
        be enforced by--
                    ``(A) a local government subdivision; or
                    ``(B) a State.
    ``(g) Preservation of Support of Public, Educational, and 
Governmental Use.--
            ``(1) Level of support required.--In a State that adopts 
        legislation affecting cable system franchising requirements 
        relating to support for public, educational, or governmental 
        use of a cable system that becomes effective after May 31, 
        2005, notwithstanding such legislation, a cable operator owes 
        to any local government subdivision in which the operator 
        provides cable service during a year beginning after the date 
        of enactment of this subsection an amount for such year to be 
        determined by the local government subdivision, but not to 
        exceed the greatest of the following:
                    ``(A) The amount of support provided in the last 
                calendar year ending before the effective date of such 
                State legislation.
                    ``(B) The average annual amount of support provided 
                over the term of the franchise under which the cable 
                operator was operating on the day before the effective 
                date of such State legislation.
                    ``(C) The amount of support that the cable operator 
                is required to provide to such local government 
                subdivision under such State legislation during the 
                year involved.
                    ``(D) An amount of support equal to 2 percent of 
                the gross revenues of the cable operator from the 
                operation of the cable system to provide cable services 
                in such local government subdivision during the year 
                involved.
            ``(2) Forms of support.--For purposes of paragraph (1), 
        support for public, educational, or governmental use of a cable 
        system means all cash payments, in-kind support, and free 
        services that the operator of the cable system, or its 
        predecessor, provides to the local government subdivision for 
        such use of the cable system.
            ``(3) Adjustment for inflation.--For a year beginning on or 
        after the effective date described in subparagraphs (A) and (B) 
        of paragraph (1), on the date that the Gross National Product 
        Price Index is first published by the Bureau of Economic 
        Analysis after the end of June of such year, the amounts 
        specified in such subparagraphs shall be increased by the 
        percentage increase, if any, in the Index published on such 
        date from the Index first published after the end of June of 
        the preceding year.
            ``(4) Cash payments.--A cable operator that owes amounts 
        under paragraph (1) shall, beginning not later than 30 days 
        after the date of enactment of this subsection, pay such 
        amounts in cash--
                    ``(A) in accordance with the schedule for payment 
                of franchise fees, communications taxes, or other 
                similar assessments under any applicable franchise; or
                    ``(B) if there is no payment schedule for such 
                assessments under an applicable franchise, in 
                accordance with the most frequent payment schedule for 
                such assessments under applicable State or local law.
            ``(5) Uses; disputes.--
                    ``(A) Uses.--Support provided to any local 
                government subdivision under this subsection shall be 
                dedicated to public, educational, or governmental use 
                of channel capacity.
                    ``(B) Disputes.--
                            ``(i) Mediation.--If there is a dispute as 
                        to amounts owed under this subsection, 
                        undisputed amounts shall be paid to the local 
                        government subdivision, disputed amounts shall 
                        be paid into an escrow account, and the parties 
                        shall submit to nonbinding mediation.
                            ``(ii) Court proceedings.--If the dispute 
                        cannot be settled using mediation, either party 
                        may seek relief from a court of competent 
                        jurisdiction.
            ``(6) Channels.--In a State that adopts legislation 
        affecting cable system franchising requirements relating to the 
        number of channels for public, educational, or governmental use 
        of a cable system that becomes effective after May 31, 2005, a 
        cable operator shall, notwithstanding such legislation, provide 
        in a local government subdivision at least the greater of the 
        following number of channels for such use:
                    ``(A) The number of channels for such use that the 
                operator was providing in the local government 
                subdivision on the day before the effective date of 
                such State legislation.
                    ``(B) If the operator provided fewer than 3 
                channels for such use in the local government 
                subdivision on the day before the effective date of 
                such State legislation, a number specified by the local 
                government subdivision, but not to exceed 3.
            ``(7) Enforcement.--The requirements of this subsection may 
        be enforced by--
                    ``(A) a local government subdivision; or
                    ``(B) a State.''.
    (b) Definitions.--
            (1) Cable service.--Section 602(6) of the Communications 
        Act of 1934 (47 U.S.C. 522(6)) is amended by striking ``means'' 
        and inserting ``means, regardless of the technology or 
        transmission protocol used in the provision of service''.
            (2) Local government subdivision.--Section 602 of the 
        Communications Act of 1934 (47 U.S.C. 522) is amended--
                    (A) by redesignating paragraphs (13) through (20) 
                as paragraphs (14) through (21), respectively; and
                    (B) by inserting after paragraph (12) the 
                following:
            ``(13) the term `local government subdivision' means--
                    ``(A) except as provided in subparagraph (B), a 
                franchising authority that derives its power to grant a 
                franchise from State or local law; and
                    ``(B) in a State that adopts legislation affecting 
                cable system franchising requirements relating to 
                support for public, educational, or governmental use of 
                a cable system that becomes effective after May 31, 
                2005, an entity that was considered a franchising 
                authority deriving its power to grant a franchise from 
                State or local law as of the day before the effective 
                date of such State legislation;''.
            (3) Franchise fee.--Section 622(g)(2) of the Communications 
        Act of 1934 (47 U.S.C. 542(g)(2)) is amended--
                    (A) in subparagraph (B), by striking ``in the case 
                of any franchise in effect on the date of enactment of 
                this title,'';
                    (B) by striking subparagraph (C); and
                    (C) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively.

Summary: Amends the Communications Act of 1934 to require certain cable system operators, with channel capacity for public, educational, or governmental (PEG) use that is designated by a franchising authority under existing code provisions or required to be provided under this Act, to: (1) carry PEG-use signals to subscribers without material degradation and without altering or removing content or data; (2) provide viewable signals to every cable subscriber without additional service or equipment charges; and (3) provide to the appropriate local government subdivision (LGS), free of charge, any transmission services and the use of any transmission facilities necessary to meet such requirements.  Requires a cable operator in a state adopting applicable franchising legislation that becomes effective after May 31, 2005, to: (1) owe any LGS in which the operator provides cable service during a year beginning after enactment of this Act an LGS-determined amount for such year, within specified limits, notwithstanding requirements relating to support for cable system PEG use in such state legislation; and (2) provide a certain number of channels for PEG use in an LGS, notwithstanding requirements relating to the number of PEG-use cable channels in such state legislation. Defines &quot;local government subdivision&quot; (referred to above as an LGS) as a franchising authority deriving its power to grant a franchise from state or local law or an entity considered such a franchising authority as of the day before the effective date of such state legislation relating to support. Specifies forms of support as cash payments, in-kind support, and free services provided by the cable system operator, or its predecessor, to the LGS for the cable system's PEG use. Sets forth provisions regarding: (1) LGS or state enforcement, and (2) nonbinding mediation and court proceedings concerning disputed support amounts. Revises the definition of &quot;franchise fee&quot; including by striking a provision prohibiting such a fee from including (in the case of a franchise granted after the enactment of the Cable Communications Policy Act of 1984) capital costs that the franchise requires the cable operator to incur for PEG access facilities.