S. 1264

FCC Reauthorization Act of 2003

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        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1264 Reported in Senate (RS)]

Calendar No. 268
108th CONGRESS
1st Session
S. 1264

[Report No. 108-140]

To reauthorize the Federal Communications Commission, and for other
purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

June 13, 2003

Mr. McCain  (for himself and Mr. Hollings) introduced the following
bill; which was read twice and referred to the Committee on Commerce,
Science, and Transportation

September 3, 2003

Reported by Mr. McCain, with amendments
[Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

A BILL

To reauthorize the Federal Communications Commission, and for other
purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; AMENDMENT OF COMMUNICATIONS ACT OF 1934.

(a) Short Title.--This Act may be cited as the ``FCC
Reauthorization Act of 2003''.
(b) Amendment of Communications Act.--Except as otherwise
specifically provided, whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision of law, the reference shall be considered to be made to a
section or other provision of the Communications Act of 1934 (47 U.S.C.
151 et seq.).

SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--Section 6 (47 U.S.C. 156) is amended--
(1) by striking subsections (a), (b), and (c);
(2) by redesignating subsection (d) as subsection (c);
(3) by inserting ``Regulatory Fees Offset.--'' before
``Of'' in subsection (c), as redesignated; and
(4) by inserting before subsection (c), as redesignated,
the following:
``(a) In General.--There are authorized to be appropriated for the
administration of this Act by the Commission $281,289,000 for fiscal
year 2004, $299,500,000 for fiscal year 2005, $318,982,000 for fiscal
year 2006, and $334,931,000 <DELETED>for fiscal year 2007,
</DELETED>for each of fiscal years 2007 and 2008, to carry out this Act
including amounts necessary for unreimbursed travel, together with such
sums as may be necessary for increases resulting from adjustments in
salary, pay, retirement, other employee benefits required by law, and
other nondiscretionary costs, for each of such years.
``(b) Staffing Levels.--The Commission may hire and maintain an
adequate number of full time equivalent staff, to the extent of the
amounts authorized by subsection (a), necessary to carry out the
Commission's powers and duties under this Act.''.
(b) Deposit of Application Fees.--Section 8(e) is amended to read
as follows:
``(e) Deposit of Collections.--Moneys received from fees
established under this section shall be deposited as an offsetting
collection in, and credited to, the account providing appropriations to
carry out the functions of the Commission.''.

SEC. 3. AUDITS AND <DELETED>INVESTIGATIONS </DELETED>REVIEW  OF E-RATE
BENEFICIARY COMPLIANCE WITH PROGRAM REQUIREMENTS.

(a) In General.--The Federal Communications Commission shall
conduct <DELETED>an investigation </DELETED>a review into the
implementation, utilization, and Commission oversight of activities
authorized by section 254(h) of the Communications Act of 1934 (47
U.S.C. 254(h)) and the operations of the National Education Technology
Funding Corporation established by section 708 of the
Telecommunications Act of 1996 for each of fiscal years 2004 through
2007, with a particular emphasis on <DELETED>determining the specific
fraud or abuse of Federal funds that has occurred in connection with
such activities or operations. </DELETED>determining whether any fraud
or abuse of Federal funds has occurred in connection with such
activities or operations.
(b) Reports.--The Commission shall transmit a report, setting forth
its finding, conclusions, and recommendations, of the results of its
investigation for each of fiscal years 2004 through 2007 to the Senate
Committee on Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce within 1 year after
the date of enactment of this Act.
(c) Funding.--Of the amounts authorized by section 6(a) of the
Communications Act of 1934 (47 U.S.C. 156(a)), the Commission shall
allocate such sums as may be necessary for fiscal years 2004 through
2007 to be used for audits and <DELETED>investigations
</DELETED>reviews of compliance by beneficiaries with the rules and
regulations of the Universal Service Fund program under section 254(h),
commonly known as the ``e-rate program''.

SEC. 4. CLARIFICATION OF CONGRESSIONAL INTENT WITH RESPECT TO BIENNIAL
REVIEW MODIFICATIONS; FREQUENCY OF REVIEW.

(a) Commission Review of Ownership Rules.--Section 202(h) of the
Telecommunications Act of 1996 is amended to read as follows:
``(h) Further Commission Review.--
``(1) In general.--The Commission shall review its rules
adopted pursuant to this section, and all of its ownership
rules <DELETED>quinquennially </DELETED>quadrennially
(beginning with 2007), and shall determine whether--
``(A) any rule requires strengthening or
broadening;
``(B) any rule requires limiting or narrowing;
``(C) any rule should be repealed; or
``(D) any rule should be retained.
``(2) Change, repeal, or retain.--The Commission shall
change, repeal, or retain such rules pursuant to its review
under paragraph (1) as it determines to be in the public
interest.''.
(b) Other Regulatory Reform Reviews.--Section 11 of the
Communications Act of 1934 (47 U.S.C. 161) is amended by adding at the
end the following:
``(c) Ownership Rules.--Subsections (a) and (b) do not apply to
ownership rules reviewable under section 202(h) of the
Telecommunications Act of 1996.''.

SEC. 5. FCC ENFORCEMENT ENHANCEMENTS.

(a) Forfeitures in Cases of Rebates and Offsets.--
(1) Broadcast and multichannel video providers.--Section
503(b)(2)(A) (47 U.S.C. 503(b)(2)(A)) is amended--
(A) by striking ``operator, or'' in clause (i) and
inserting ``operator or any other multichannel video
distributor, or'';
(B) by striking ``$25,000'' and inserting
``$250,000''; and
(C) by striking ``$250,000'' and inserting
``$2,500,000''.
(2) Common carriers.--Section 503(b)(2)(B) (47 U.S.C.
503(b)(2)(B)) is amended--
(A) by striking ``$100,000'' and inserting
``$1,000,000''; and
(B) by striking ``$1,000,000'' and inserting
``$10,000,000''.
(3) Others.--Section 503(b)(2)(C) (47 U.S.C. 503(b)(2)(C))
is amended--
(A) by striking ``$10,000'' and inserting
``$100,000''; and
(B) by striking ``$75,000'' and inserting
``$750,000''.
(4) Statute of limitations.--Section 503(b)(6) (47 U.S.C.
503(b)(6)) is amended--
(A) by striking ``1 year'' in subparagraph (A)(i)
and inserting ``2 years''; and
(B) by striking ``1 year'' in subparagraph (B) and
inserting ``2 years''.
(b) Forfeitures of Communications Devices.--Section 510 (47 U.S.C.
510) is amended by inserting ``and any equipment used to create
malicious interference in violation of section 333,'' after ``302,''.
<DELETED>    (c) Liability of Carriers for Damages.--Section 206 (47
U.S.C. 206) is amended to read as follows:</DELETED>

<DELETED>``SEC. 206. LIABILITY OF CARRIERS FOR DAMAGES.</DELETED>

<DELETED>    ``A common carrier that does, or causes or permits to be
done, any act, matter, or thing prohibited or declared to be unlawful
in this Act, or in any rule, regulation, or order issued by the
Commission, or that fails to do any act, matter, or thing required to
be done by this Act, or by any rule, regulation, or order of the
Commission is liable to any person injured by such act or failure for
the full amount of damages sustained in consequence of such act or
failure, together with a reasonable attorney's fee. The amount of the
attorney's fee shall be--</DELETED>
<DELETED>    ``(1) fixed by the court in every case of recovery
in a judicial proceeding; or</DELETED>
<DELETED>    ``(2) fixed by the Commission in every case of
recovery in a Commission proceeding.''.</DELETED>
<DELETED>    (d) Violations of Regulations, Rules, and Orders.--Section
208 (47 U.S.C. 208) is amended by inserting ``or of any rule,
regulation, or order of the Commission,'' after ``thereof,''.</DELETED>

SEC. 6. APPLICATION OF COMMUNICATIONS ACT WITH BANKRUPTCY AND SIMILAR
LAWS.

(a) In General.--Section 4 (47 U.S.C. 154) is amended by adding at
the end the following:
``(p) Application With Bankruptcy Laws.--
``(1) In general.--The bankruptcy laws shall not be
applied--
``(A) to avoid, discharge, stay, or set-off any
pre-petition debt obligation to the United States
arising from an auction under this Act,
``(B) to stay the payment obligations of the debtor
to the United States if such payments were a condition
of the grant or retention of a license under this Act,
or
``(C) to prevent the automatic cancellation of
licenses for failure to comply with any monetary or
non-monetary condition for holding any license issued
by the Commission, including automatic cancellation of
licenses for failure to pay a monetary obligation of
the debtor to the United States when due under an
installment payment plan arising from an auction under
this Act,
except that, upon cancellation of a license issued by the
Commission, the United States shall have an allowed unsecured
claim for any outstanding debt to the United States with
respect to such canceled licenses, and that unsecured debt may
be recovered by the United States under its rights as a
creditor under title 11, United States Code, or other
applicable law.
``(2) Debtor to have no interest in proceeds of auction.--A
debtor in a proceeding under the bankruptcy laws shall have no
right or interest in any portion of the proceeds from an
auction of any license reclaimed by the Commission for failure
to pay a monetary obligation of the debtor to the United States
in connection with the grant or retention of a license under
this Act.
``(3) Security interests.--Notwithstanding any other
provision of law, the Commission may--
``(A) establish rules and procedures governing
security interests in licenses, or the proceeds of the
sale of licenses, issued by the Commission; and
``(B) establish an office within the Office of
Secretary for the recording and perfection of such
security interests without regard to otherwise
applicable State law.
``(4) Bankruptcy laws defined.--In this subsection, the
term `bankruptcy laws' means title 11, United States Code, or
any otherwise applicable Federal or State law regarding
insolvencies or receiverships, including any Federal law
enacted or amended after the date of enactment of the FCC
Reauthorization Act of 2003 not expressly in derogation of this
subsection.''.
(b) Effective Date.--The amendment made by subsection (a) shall
<DELETED>apply to cases and proceedings commenced on or after the date
of enactment of this Act. </DELETED>not apply to cases in bankruptcy if
the petition for bankruptcy was filed on or before June 26, 2003.

SEC. 7. BAN ON REIMBURSED TRAVEL EXPENSES.

Section 4(g)(2) (47 U.S.C. 154(g)(2)) is amended to read as
follows:
``(2) Notwithstanding section 1353 of title 31, United States Code,
section 4111 of title 5, United States Code, or any other provision of
law in pari materia, no Commissioner or employee of the Commission may
accept, nor may the Commission accept, payment or reimbursement from
the nongovernmental sponsor (or any affiliated organization) of any
convention, conference, or meeting for expenses for travel,
subsistence, or related expenses incurred by a commissioner or employee
of the Commission for the purpose of enabling that commissioner or
employee to attend and participate in any such convention, conference,
or meeting. The Commission may establish a de minimus level of payment
or value to which the preceding sentence does not apply.''.

SEC. 8. APPLICATION OF ONE-YEAR RESTRICTIONS TO CERTAIN POSITIONS.

For purposes of section 207 of title 18, United States Code, an
individual serving in any of the following <DELETED>positions
</DELETED>positions, or in any successor position, at the Federal
Communications Commission is deemed to be a person described in section
207(c)(2)(A)(ii) of that title, regardless of the individual's rate of
basic pay:
(1) Chief, Office of Engineering and Technology.
(2) Director, Office of Legislative Affairs.
(3) Inspector General, Office of Inspector General.
(4) Managing Director, Office of Managing Director.
(5) General Counsel, Office of General Counsel.
(6) Chief, Office of Strategic Planning and Policy
Analysis.
(7) Chief, Consumer and Governmental Affairs Bureau.
(8) Chief, Enforcement Bureau.
(9) Chief, International Bureau.
(10) Chief, Media Bureau.
(11) Chief, Wireline Competition Bureau.
(12) Chief, Wireless Telecommunications Bureau.
(13) Any position for which the individual was appointed
under section 4(f)(2) of the Communications Act of 1934 (47
U.S.C. 4(f)(2)).

SEC. 9. VIDEO DESCRIPTION RULES AUTHORITY.

(a) In General.--Notwithstanding the decision of the United States
Court of Appeals for the District of Columbia Circuit in Motion Picture
Association of America, Inc., et al., v. Federal Communications
Commission, et al. (309 F. 3d 796, November 8, 2002), the Federal
Communications Commission--
(1) shall, within 90 days after the date of enactment of
this Act, reinstate its video description rules contained in
the report and order identified as Implementation of Video
Description of Video Programming, Report and Order, 15 F.C.C.R.
15,230 (2000); <DELETED>and
</DELETED>    (2) may amend, repeal, or otherwise modify such
<DELETED>rules. </DELETED>rules; and
(3) shall initiate a proceeding within 180 days after the
date of enactment of this Act to consider whether it is
economically and technically feasible and consistent with the
public interest to include ``accessible information'' in its
video description rules.
(b) Accessible Information Defined.--In this section, the term
``accessible information'' may include written information displayed on
television screens during regular programming, hazardous warnings and
other emergency information, local and national news bulletins, and any
other information the Commission deems appropriate.

SEC. 10. POLITICAL BROADCASTING REGULATIONS REVIEW.

(a) In General.--By no later than August 1, 2004, the Federal
Communications Commission shall complete rulemakings to--
(1) provide specific guidance to affected parties
concerning what the Commission will consider to constitute an
exercise of reasonable diligence in compliance with its
regulations set forth at 47 C.F.R. 73.1212(b) and 47 C.F.R.
1615(b) with respect to political matter and issue advertising
described in its regulations set forth at 47 C.F.R. 73.1212(d)
and (e) (with respect to broadcast stations) and at 47 C.F.R.
76.1615(c) and (d) (with respect to cable television system
operators); and
(2) establish procedures for the prompt filing,
consideration, and resolution of complaints pertaining to
violations of its regulations concerning political matter and
issue advertising, and of appeals therefrom, including the
following regulations pertaining to such advertising:
(A) Sponsorship identification (47 C.F.R.
73.1212(a) through (e)).
(B) Legally qualified candidates for public office
(47 C.F.R. 73.1940).
(C) Equal opportunities (47 C.F.R. 73.1941).
(D) Candidate rates (47 C.F.R. 73.1942).
(E) Political file (47 C.F.R. 73.1943).
(F) Reasonable access (47 C.F.R. 73.1944).
(G) Origination cablecasts by legally qualified
candidates for public office and equal opportunities
(47 C.F.R. 76.205).
(H) Candidate rates (47 C.F.R. 76.206).
(I) Sponsorship identification (47 C.F.R. 76.1615).
(J) Political file (47 C.F.R. 76.1701).
(K) Public interest obligations (47 C.F.R.
25.701(b)).

SEC. 11. SPECIAL RULES FOR INDECENT BROADCASTING.

Section 503 of the Communications Act of 1934 (47 U.S.C. 503) is
amended by adding at the end the following:
``(c) Special Rules for Broadcasting Obscene or Indecent Matter.--
``(1) Multiple violations.--If the violation of section
1464 of title 18, United States Code, involves the broadcast of
obscene or indecent matter from more than 1 individual during
the same program, then the broadcast of such matter from each
individual shall be considered a separate violation.
``(2) Revocation proceeding to be commenced.--If the
Commission has reason to believe that an entity described in
subsection (b)(2)(A)(i) of this section has violated section
1464 of title 18, United States Code, then the Commission shall
commence a proceeding under section 312(a)(6) to revoke the
station license or construction permit of that entity and shall
revoke such station license or construction permit unless the
Commission determines that such action would not be in the
public interest.''.

SEC. 12. PHASE-OUT OF UHF DISCOUNT.

(a) In General.--No Discount for Newly Acquired Stations.--The
attribution discount permitted for UHF television stations pursuant to
section 73.5555(e)(2) of the Federal Communication Commission's
regulations (47 C.F.R. 73.3555(e)(2)) shall not apply to any UHF
station granted, transferred, or assigned after June 2, 2003, for the
purpose of calculating the aggregate national audience reach of a party
under section 73.3555(e)(1) of those regulations (47 C.F.R.
73.3555(e)(1)).
(b) Sunset of UHF Discount for Existing Stations.--Beginning on
January 1, 2008, the attribution discount permitted for UHF television
stations pursuant to section 73.5555(e)(2) of the Federal
Communication's regulations (47 C.F.R. 73.3555(e)(2)) shall expire.

SEC. 13. DIGITAL TRANSLATORS.

Section 336(f)(4) of the Communications Act of 1934 (47 U.S.C.
336(f)(4)) is amended by adding at the end ``Within 60 days after the
date of enactment of the FCC Reauthorization Act of 2003, the
Commission shall initiate a rulemaking implementing this section to
authorize the operation of digital television translators and digital
on-channel repeaters.''.D23/D23/

Calendar No. 268

108th CONGRESS

1st Session

S. 1264

[Report No. 108-140]

_______________________________________________________________________

A BILL

To reauthorize the Federal Communications Commission, and for other
purposes.

_______________________________________________________________________

September 3, 2003

Reported with amendments