[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2686 Introduced in Senate (IS)]
109th CONGRESS
2d Session
S. 2686
To amend the Communications Act of 1934 and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 1, 2006
Mr. Stevens (for himself and Mr. Inouye) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To amend the Communications Act of 1934 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.
This Act may be cited as the ``Communications, Consumer's Choice,
and Broadband Deployment Act of 2006''.
SEC. 2. AMENDMENT OF COMMUNICATIONS ACT OF 1934.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, 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. 3. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Amendment of Communications Act of 1934.
Sec. 3. Table of contents.
TITLE I--WAR ON TERRORISM
Subtitle A--Call Home
Sec. 103. Telephone rates for members of armed forces deployed abroad.
Sec. 102. Repeal of existing authorization.
Subtitle B--Interoperability
Sec. 151. Interoperable emergency communications.
TITLE II--UNIVERSAL SERVICE REFORM; INTERCONNECTION
Sec. 201. Short title.
Subtitle A--Contributions to Universal Service
Sec. 211. Stabilization of universal service funding.
Sec. 212. Telecommunications services for libraries.
Sec. 213. Modification of rural video service exemption.
Sec. 214. Interconnection.
Subtitle B--Distributions From Universal Service
Sec. 251. Broadband requirement.
Sec. 252. Establishment of broadband account within universal service
fund.
Sec. 253. Eligible telecommunications carrier guidelines.
Sec. 254. Primary line.
Sec. 255. Phantom traffic.
Sec. 256. Random audits.
Sec. 257. Waste, fraud, and abuse.
TITLE III--STREAMLINING FRANCHISING PROCESS
Sec. 301. Short title.
Subtitle A--Updating the 1934 Act and Leveling the Regulatory Playing
Field
Sec. 311. Application of title VI to video services and video service
providers.
Sec. 312. Purpose; franchise applications; scope.
Sec. 313. Standard franchise application form.
Sec. 314. Definitions.
Subtitle B--Streamlining the Provision of Video Services
Sec. 331. Franchise requirements and related provisions.
Sec. 332. Renewal; revocation.
Sec. 333. PEG and institutional network obligations.
Sec. 334. Services, facilities, and equipment.
Sec. 337. Shared facilities.
Sec. 338. Consumer protection and customer service.
Sec. 339. Redlining.
Subtitle C--Miscellaneous and Conforming Amendments
Sec. 351. Miscellaneous amendments.
Subtitle D--Effective Dates and Transition Rules.
Sec. 381. Effective dates; phase-in.
TITLE IV--VIDEO CONTENT
Sec. 401. Short title.
Subtitle A--Sports Freedom
Sec. 401. Short title.
Sec. 402. Development of competition and diversity in video programming
distribution.
Sec. 403. Regulations.
Subtitle B--National Satellite
Sec. 431. Availability of certain licensed services in noncontiguous
States.
Subtitle C--Video and Audio Flag
Sec. 451. Short title.
Sec. 452. Digital video broadcasting.
Sec. 453. Digital audio broadcasting.
Sec. 454. Digital Audio Review Board.
TITLE V--MUNICIPAL BROADBAND
Sec. 501. Short title.
Sec. 502. State regulation of municipal broadband networks.
TITLE VI--WIRELESS INNOVATION NETWORKS
Sec. 601. Short title.
Sec. 602. Eligible television spectrum made available for wireless use.
TITLE VII--DIGITAL TELEVISION
Sec. 701. Analog and digital television sets and converter boxes;
consumer education and requirements to
reduce the government cost of the converter
box program.
Sec. 702. Digital stream requirement for the blind.
Sec. 703. Status of international coordination.
TITLE VIII--PROTECTING CHILDREN
Sec. 801. Video transmission of child pornography.
TITLE IX--INTERNET NEUTRALITY
Sec. 901. Neutral networks for consumers.
TITLE X--MISCELLANEOUS
Sec. 1001. Commissioner participation in forums and meetings.
Sec. 1002. Severability.
TITLE I--WAR ON TERRORISM
Subtitle A--Call Home
SEC. 103. TELEPHONE RATES FOR MEMBERS OF ARMED FORCES DEPLOYED ABROAD.
(a) In General.--The Federal Communications Commission shall take
such action as may be necessary to reduce the cost of calling home for
Armed Forces personnel who are stationed outside the United States
under official military orders or deployed outside the United States in
support of military operations, training exercises, or other purposes
as approved by the Secretary of Defense, including the reduction of
such costs through the waiver of government fees, assessments, or other
charges for such calls. The Commission may not regulate rates in order
to carry out this section.
(b) Factors to Consider.--In taking the action described in
subsection (a), the Commission, in coordination with the Department of
Defense and the Department of State, shall--
(1) evaluate and analyze the costs to Armed Forces
personnel of such telephone calls to and from American military
bases abroad;
(2) evaluate methods of reducing the rates imposed on such
calls, including deployment of new technology such as voice
over Internet protocol or other Internet protocol technology;
(3) encourage telecommunications carriers (as defined in
section 3(44) of the Communications Act of 1934 (47 U.S.C.
153(44))) to adopt flexible billing procedures and policies for
Armed Forces personnel and their dependents for telephone calls
to and from such Armed Forces personnel; and
(4) seek agreements with foreign governments to reduce
international surcharges on such telephone calls.
(c) Definitions.--In this section:
(1) Armed forces.--The term ``Armed Forces'' has the
meaning given that term by section 2101(2) of title 5, United
States Code.
(2) Military base.--The term ``military base'' includes
official duty stations to include vessels, whether such vessels
are in port or underway outside of the United States.
SEC. 102. REPEAL OF EXISTING AUTHORIZATION.
Section 213 of the Telecommunications Authorization Act of 1992 (47
U.S.C. 201 note) is repealed.
Subtitle B--Interoperability
SEC. 151. INTEROPERABLE EMERGENCY COMMUNICATIONS.
(a) In General.--Section 3006 of Public Law 109-171 (47 U.S.C. 309
note) is amended by redesignating subsection (d) as subsection (g) and
by inserting after subsection (c) the following:
``(d) Interoperable Communications System Equipment Deployment.--
``(1) In general.--The Assistant Secretary shall allocate a
portion of the funds made available to carry out this section
to make interoperable communications system equipment grants
for equipment that can utilize reallocated public safety
spectrum.
``(2) Allocation of funds.--The Secretary shall allocate
the funds as follows:
``(A) A portion to be equally distributed to each
State.
``(B) A majority to be distributed to the States
based on the threat and risk factors used by the
Secretary of Homeland Security for the purposes of
allocating discretionary grants under the heading
``Office for Domestic Preparedness, State and Local
Programs'' in the Department of Homeland Security
Appropriations Act, 2006.
``(3) Eligibility.--A State may not receive funds allocated
to it under paragraph (2) unless it has established a statewide
interoperable communications plan approved by the Secretary of
Homeland Security.
``(4) Use of funds.--A State shall use any funds received
under this subsection for the purchase of equipment and
infrastructure that complies with SAFECOM guidance, including
any standards that may be referenced by SAFECOM guidance.
``(e) Coordination and Planning Grant Initiative.--
``(1) In general.--The Assistant Secretary, in consultation
with the Secretary of Homeland Security, shall allocate a
portion of the funds made available to carry out this section
for emergency communication and coordination planning grants.
The grants shall supplement, and be in addition to, any Federal
funds otherwise made available by grant or otherwise to the
States for emergency planning.
``(2) Allocation.--The Secretary shall allocate funds under
this subsection as follows:
``(A) A portion shall be equally distributed to
each State for use by State and local governments; and
``(B) A majority shall be distributed to the States
based on the threat and risk factors used by the
Secretary of Homeland Security for the purposes of
allocating discretionary grants under the heading
``Office for Domestic Preparedness, State and Local
Programs'' in the Department of Homeland Security
Appropriations Act, 2006.
``(3) Coordination and planning guidelines.--Except as
provided in paragraph (4), a State shall use its emergency
communication coordination and planning grant to establish a
statewide plan consistent with the State communications
interoperability planning methodology developed by the SAFECOM
program within the Department of Homeland Security or a
regional plan established pursuant to a regional planning
agency consistent with this section. In establishing the plan,
the Governor or the Governor's designee shall consult with the
Secretary of Homeland Security or the Secretary's designee. A
State shall submit its statewide plan to the Public Safety and
Homeland Security Bureau of the Federal Communications
Commission for approval and the Secretary of Homeland Security
for approval.
``(f) Strategic Technology Reserves Initiative.--
``(1) In general.--The Assistant Secretary, in consultation
with the Secretary of Homeland Security, shall allocate a
portion the funds made available to carry out this section to
establish and implement a strategic technology reserve to pre-
position or secure communications equipment in advance for
immediate deployment in an emergency or major disaster (as
defined in section 102(2) of Public Law 93-288 (42 U.S.C.
5122)).
``(2) Requirements and characteristics.--A reserve
established under paragraph (1) shall--
``(A) be capable of re-establishing communications
when existing infrastructure is damaged or destroyed in
a major disaster or other event; and
``(B) include appropriate current, widely-used
equipment, such as Land Mobile Radio Systems, cellular
and satellite telephones, Cells On Wheels, Cells On
Light Trucks, backup batteries, generators, fuel, and
computers.
``(3) Additional characteristics.--Portions of the reserve
may be virtual and may include items donated on an in-kind
contribution basis.
``(4) Consultation.--In developing the reserve, the
Secretary shall seek advice from the Secretary of Defense and
the Secretary of Homeland Security, as well as from
communications providers, first responders, emergency managers,
and State, local, and tribal governments.
``(5) Allocation and use of funds.--The Secretary shall
allocate--
``(A) a portion of the reserve's funds for block
grants to States to enable each State to establish a
strategic technology reserve within its borders in a
secure location to allow immediate deployment; and
``(B) a portion of the reserve's funds for regional
Federal strategic technology reserves to facilitate any
Federal response when necessary, to be held in secure
locations around the country for immediate deployment
to every region of the country including remote areas
and noncontiguous States.
``(g) Common Standards; Applications.--
``(1) Common standards.--In carrying out this section, the
Assistant Secretary, in cooperation with the Secretary of
Homeland Security shall develop and implement common standards
to the greatest extent practicable.
``(2) Applications.--To be eligible for assistance under
the programs established in this section, each State shall
submit an application, at such time, in such form, and
containing such information as the Assistant Secretary may
require, including--
``(A) a detailed explanation of how assistance
received under the program would be used to improve
local communications interoperability and ensure
interoperability with other appropriate Federal, State,
local, tribal, and regional agencies in a regional or
national emergency; and
``(B) assurance that the equipment and system
would--
``(i) not be incompatible with the
communications architecture developed under
section 7303(a)(1)(E) of the Intelligence
Reform Act of 2004;
``(ii) meet any voluntary consensus
standards developed under section 7303(a)(1)(D)
of that Act; and
``(iii) be consistent with the common grant
guidance established under section
7303(a)(1)(H) of that Act.''.
(b) Seamless Mobility.--Within 180 days of the enactment of this
Act, the Federal Communications Commission shall establish a
streamlined process to review and approve deployment of multi-mode
devices that permit communication across multiple platforms,
facilities, or networks notwithstanding any other provision of law.
TITLE II--UNIVERSAL SERVICE REFORM; INTERCONNECTION
SEC. 201. SHORT TITLE.
This title may be cited as the ``Internet and Universal Service Act
of 2006''.
Subtitle A--Contributions to Universal Service
SEC. 211. STABILIZATION OF UNIVERSAL SERVICE FUNDING.
(a) Ensuring an Equitable Contribution Base for Universal
Service.--
(1) In general.--Section 254(d) (47 U.S.C. 254(d)) is
amended to read as follows:
`(d) Universal Service Support Contributions.--
``(1) Contribution mechanism.--
``(A) In general.--Each communications service
provider shall contribute as provided in this
subsection to support universal service.
``(B) Requirements.--The Commission shall ensure
that the contributions required by this subsection
are--
``(i) applied in a manner that is as
competitively and technologically neutral as
possible; and
``(ii) specific, predictable, and
sufficient to sustain the funding of networks
used to preserve and advance universal service.
``(C) Adjustments.--The Commission may adjust the
contribution for providers for their low volume
residential customers.
``(2) Exemptions.--The Commission may exempt a
communications service provider or any class of communications
service providers from the requirements of this subsection--
``(A) if the services of such a provider are
limited to such an extent that the level of its
contributions would be de minimis; or
``(B) with respect to communications service
provided pursuant to the Commission's Lifeline
Assistance Program.
``(3) Contribution assessment flexibility.--
``(A) Methodology.--To achieve the principles in
this section, the Commission may base universal service
contributions upon--
``(i) revenue from communications service;
``(ii) working phone numbers or any other
identifier protocol or connection to the
networks; or
``(iii) network capacity.
``(B) Use of more than 1 methodology.--If no single
methodology employed under subparagraph (A) achieves
the principles described in this subsection, the
Commission may employ a combination of any such
methodologies.
``(C) Removal of interstate/intrastate
distinction.--For the purpose of universal service
contributions, the Commission may assess the
interstate, intrastate, or international portions of
communications service.
``(D) Group plan discount.--If the Commission
utilizes a methodology under subparagraph (A) based in
whole or in part on working phone numbers, it may
provide a discount for up to 3 additional phones
provided under a group or family pricing plan.
``(E) Preservation of universal service funds.--
Nothing in this subsection precludes a State from
establishing or maintaining State universal service
pursuant to subsection (f).
``(4) Non-discriminatory eligibility requirement.--A
communications service provider is not exempted from the
requirements of this subsection solely on the basis that such
provider is not eligible to receive support under this section.
``(6) Billing.--
``(A) In general.--A communications service
provider that contributes to universal service under
this section may place on any customer bill a separate
line item charge that does not exceed the amount for
the customer that the provider is required to
contribute under this subsection that shall be
identified as the `Federal Universal Service Fee'.
``(B) Limitation.--If such a provider bills
customers for administrative costs associated with its
collection and remission of universal service fees
under this subsection--
``(i) the administrative costs shall be a
separate line item charge on the bill and shall
be identified as `Optional Company
Administrative Fee'; and
``(ii) the amount billed for such costs may
not exceed the estimated direct costs
attributable to such administrative costs.
``(7) Definitions.--In this subsection:
``(A) Broadband service.--The term `broadband
service' means any service used for transmission of
information of a user's choosing with a transmission
speed of at least 200 kilobits per second in at least 1
direction, regardless of the transmission medium or
technology employed, that connects to the public
Internet for a fee directly--
``(i) to the public; or
``(ii) to such classes of users as to be
effectively available directly to the public.
``(B) Communications service.--The term
`communications service' means telecommunications
service, broadband service, or IP-enabled voice service
(whether offered separately or as part of a bundle of
services).
``(C) IP-enabled voice service.--The term `IP-
enabled voice service' means the provision of real-time
2-way voice communications offered to the public, or
such classes of users as to be effectively available to
the public, transmitted through customer premises
equipment using TCP/IP protocol, or a successor
protocol, for a fee (whether part of a bundle of
services or separately) with 2-way interconnection
capability such that the service can originate traffic
to, and terminate traffic from, the public switched
telephone network.''.
(2) Conforming amendment.--Section 254(b)(4) (47 U.S.C.
254(b)(4)) is amended by striking ``telecommunications
services'' and inserting ``communications services (as defined
in subsection (d)(7)(B)''.
(b) Proper Accounting of Universal Service Contributions.--
(1) From all budgets.--Notwithstanding any other provision
of law, the receipts and disbursements of universal service
under section 254 of the Communications Act of 1934 (47 U.S.C.
254) shall not be counted as new budget authority, outlays,
receipts, or deficit or surplus for purposes of--
(A) the budget of the United States Government as
submitted by the President;
(B) the Congressional budget;
(C) the Balanced Budget and Emergency Deficit
Control Act of 1985; or
(D) any other statute requiring budget sequesters.
(2) Additional exemptions.--Section 1341, subchapter II of
chapter 15, and sections 3302, 3321, 3322, and 3325 of title
31, United States Code, shall not apply to--
(A) the collection and receipt of universal service
contributions, including the interest earned on such
contributions; or
(B) disbursements or other obligations authorized
by the Commission under section 254 of the
Communications Act of 1934 (47 U.S.C. 254).
(c) Financial Management.--The Federal Communications Commission
and the Administrator of the Universal Service Fund--
(1) shall account for the financial transactions of the
Fund in accordance with generally accepted accounting
principles for Federal agencies;
(2) shall maintain the accounts of the Fund in accordance
with the United States Government Standard General Ledger; and
(3) may invest unexpended balances only in Federal
securities (as defined in section 113(b)(5) of Office of
Management and Budget circular OMB A-11).
(d) Rulemaking.--Not later than 180 days after the date of
enactment of this Act, the Federal Communications Commission shall
issue a rule to implement section 254(d) of the Communications Act of
1934 (47 U.S.C. 254(d)) as amended by subsection (a).
SEC. 212. TELECOMMUNICATIONS SERVICES FOR LIBRARIES.
(a) In General.--Section 254(h)(4) (47 U.S.C. 254(h)(4)) is amended
to read as follows:
``(4) Certain users not eligible.--Notwithstanding any other
provision of this subsection, the following entities are not entitled
to preferential rates or treatment as required by this subsection:
``(A) An entity operated as a for-profit business.
``(B) A school described in paragraph (7)(A) with
an endowment of more than $50,000,000.
``(C) A library or library consortium not eligible
for assistance under the Library Services and
Technology Act (20 U.S.C. 9101 et seq.)--
``(i) from a State library administrative
agency; or
``(ii) funded by a grant under section 261
of the Library Services and Technology Act (20
U.S.C. 9161) from an Indian tribe or other
organization.''.
(b) Funding.--Section 254(h)(1) (47 U.S.C. 254(h)(1)) is amended by
adding at the end the following:
``(C) Funding.--The obligations under, and
administrative costs of, this subsection for any
funding year may not exceed the sum of--
``(i) the annual program funding cap
established by the Commission; and
``(ii) any unobligated balances from prior
funding years.''.
(c) American Community Survey Residential Internet Access
Question.--The Secretary of Commerce, in consultation with the Federal
Communications Commission, shall expand the American Community Survey
conducted by the Bureau of the Census to elicit information for
residential households, including those located on native lands, as to
what technology such households use to access the Internet from home.
SEC. 213. MODIFICATION OF RURAL VIDEO SERVICE EXEMPTION.
(a) Rural telephone companies.--Section 251(f)(1) (47 U.S.C.
251(f)(1)) is amended--
(1) by striking ``Subsection'' in subparagraph (A) and
inserting ``Except as provided in subparagraph (B),
subsection'';
(2) by striking ``interconnection, services, or network
elements,'' in subparagraph (A) and inserting ``services or
network elements,'';
(3) by striking ``(under subparagraph (B))'' in
subparagraph (A) and inserting ``(under subparagraph (C))''
(4) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D);
(5) by inserting after subparagraph (A) the following:
``(B) Interconnection.--Notwithstanding
subparagraph (A), subsection (c)(2) of this section
shall not apply to a rural telephone company until such
company has received a bona fide request for
interconnection.'';
(6) by striking ``exemption under subparagraph (A).'' in
subparagraph (C), as redesignated, and inserting
``exemption.''; and
(7) by striking subparagraph (D) as redesignated.
(b) Other rural carriers.--Section 251(f)(2) (47 U.S.C. 251(f)(2))
is amended by inserting ``(other than subsection (c)(2))'' after
``subsection (b) or (c)''.
SEC. 214. INTERCONNECTION.
Title VII (47 U.S.C. 601 et seq.) is amended by adding after
section 714 the following new section:
``SEC. 715. RIGHTS AND OBLIGATIONS OF IP-ENABLED VOICE SERVICE
PROVIDERS.
``(a) In General.--An IP-enabled voice service provider shall have
the same rights, duties, and obligations as a requesting
telecommunications carrier under sections 251 and 252, if the provider
elects to assert such rights.
``(b) Disabled Services.--An IP-enabled voice service provider
shall have the same rights, duties, and obligations as a
telecommunications carrier under sections 225, 255, and 710. In
revising the Commission's regulations under such sections to carry out
this subsection, the Commission shall consider whether a service or
equipment is marketed as a substitute for telecommunications service,
telecommunications equipment, customer premises equipment, or
telecommunications relay services.
``(c) IP-Enabled Voice Service Defined.--In this section, the term
`IP-enabled voice service' means the provision of real-time 2-way voice
communications offered to the public, or such classes of users as to be
effectively available to the public, transmitted through customer
premises equipment using TCP/IP protocol, or a successor protocol, for
a fee (whether part of a bundle of services or separately) with
interconnection capability such that the service can originate traffic
to, or terminate traffic from, the public switched telephone
network.''.
Subtitle B--Distributions From Universal Service
SEC. 251. BROADBAND REQUIREMENT.
Section 214(e) (47 U.S.C. 214(e)) is amended by adding at the end
the following:
``(7) Broadband Service Requirement.--
``(A) In general.--Notwithstanding paragraph (1),
an eligible communications carrier may not receive
universal service support under section 254 more than
60 months after the date of enactment of the Internet
and Universal Service Act of 2006 if it has not
deployed broadband service within its service area
before the end of that 60-month period unless it
receives a waiver under subparagraph (B).
``(B) Waivers.--
``(i) Application.--In order to receive a
waiver under this subparagraph, an eligible
communications carrier shall submit an
application to the Commission.
``(ii) Cost of deployment.--If an eligible
communications carrier demonstrates to the
satisfaction of the Commission that the cost
per line of deploying such broadband service is
at least 3 times the average cost per line of
deploying such broadband service for all
eligible communications carriers receiving
universal service support, the Commission shall
waive the application of subparagraph (A) to
that eligible communications carrier.
``(iii) Other factors.--If an eligible
communications carrier demonstrates to the
satisfaction of the Commission that the
deployment and provision of such broadband
service is not technically feasible or would
materially impair the carrier's ability to
continue to provide local exchange service or
broadband service throughout its service area,
the Commission may waive the application of
subparagraph (A) to that eligible
communications carrier.
``(iv) Deemed approval.--If the Commission
fails to act on a waiver request within 60
calendar days after it receives a completed
application for the waiver, the waiver shall be
deemed to be granted. If the Commission
requests additional information from the
eligible communications carrier, the 60-day
period shall be tolled beginning on the date on
which request is received by the carrier and
ending on the date on which the Commission
receives the information requested.
``(v) Term; renewal.--A waiver under this
subparagraph--
``(I) shall be for a period of not
more than 2 years; and
``(II) may be renewed, upon
application, by the Commission if the
applicant demonstrates that it is
eligible for a waiver under clause (ii)
or (iii).
``(C) Notification of state commission.--Whenever
the Commission grants a waiver to an eligible
communications carrier under subparagraph (B) that has
been designated under paragraph (2) by a State
commission, the Commission shall notify the State
commission of the waiver.
``(D) Definitions.--In this paragraph:
``(i) Broadband service.--The term
`broadband service' means any service used for
transmission of information of a user's
choosing with a transmission speed of at least
3 megabits per second in at least 1 direction,
regardless of the transmission medium or
technology employed, that connects to the
public Internet for a fee directly--
``(I) to the public; or
``(II) to such classes of users as
to be effectively available directly to
the public.
``(ii) Eligible communications carrier.--
The term `eligible communications carrier'
means an entity designated under paragraph (2),
(3), or (6). Any reference to `eligible
telecommunications carrier' in this section is
deemed also to refer to `eligible
communications carrier'.''.
SEC. 252. ESTABLISHMENT OF BROADBAND ACCOUNT WITHIN UNIVERSAL SERVICE
FUND.
Part I of title II (47 U.S.C. 201 et seq.) is amended by inserting
after section 254 the following:
``SEC. 254A. BROADBAND FOR UNSERVED AREAS ACCOUNT.
``(a) Account Established.--
``(1) In general.--There shall be, within the universal
service fund established pursuant to section 254, a separate
account to be known as the `Broadband for Unserved Areas
Account'.
``(2) Purpose.--The purpose of the Account is to provide
financial assistance for the deployment of broadband service to
unserved areas throughout the United States.
``(b) Implementation.--
``(1) In general.--Within 180 days after the date of
enactment of the Internet and Universal Service Act of 2006,
the Commission shall issue rules establishing--
``(A) guidelines for determining which areas may be
considered to be unserved areas for purposes of this
section;
``(B) criteria for determining which facilities-
based providers of broadband service, and which
projects, are eligible for support from the Account;
``(C) procedural guidelines for awarding assistance
from the Account on a merit-based and competitive
basis;
``(D) guidelines for application procedures,
accounting and reporting requirements, and other
appropriate fiscal controls for assistance made
available from the Account; and
``(E) a procedure for making funds in the Account
available among the several States on an equitable
basis.
``(2) Satellite service.--
``(A) Eligibility of provider.--A satellite service
provider shall be considered to be a facility-based
provider eligible for support from the Account.
``(B) Eligibility of cpe projects.--The deployment
of satellite customer premises equipment may be
considered to be a project eligible for support from
the Account.
``(C) Designation of lightly served areas.--The
availability of broadband service by satellite in an
area shall not preclude the designation of that area as
an unserved area if the Commission determines that
subscribership to satellite service in the area is de
minimis.
``(D) Multiple areas within state.--For purposes of
this section, there may be more than 1 unserved area
within a State.
``(3) Report.--The Commission shall transmit an annual
report to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Energy and Commerce making recommendations for an increase or
decrease, if necessary, in the amounts credited to the account
under this section.
``(c) Limitations.--
``(1) Annual amount.--Amounts obligated or expended under
subsection (b) for any fiscal year may not exceed $500,000,000.
``(2) Use of funds.--To the extent that the full amount in
the account is not obligated for financial assistance under
this section within a fiscal year, any unobligated funds shall
be used to support universal service under section 254.
``(3) Support limited to facilities-based single provider
per unserved area.--Assistance under this section may be
provided only to--
``(A) facilities-based providers of broadband
service; and
``(B) 1 facility-based provider of broadband
service in any unserved area.
``(d) Application With Sections 214, 254, and 410.--
``(1) Section 214(e).--Section 214(e) shall not apply to
the Broadband for Unserved Areas Account.
``(2) Section 254.--Section 254 shall be applied to the
Broadband for Unserved Areas Account--
``(A) by disregarding--
``(i) subsections (a) and (e) thereof; and
``(ii) any other provision thereof
determined by the Commission to be
inappropriate or inapplicable to implementation
of this section; and
``(B) by reconciling, to the maximum extent
feasible and in accordance with guidelines prescribed
by the Commission, the implementation of this section
with the provisions of subsections (h) and (l) thereof.
``(3) Section 410.--Section 410 shall not apply to the
Broadband for Unserved Areas Account.
``(e) Broadband Service Defined.--
``(1) In general.--In this section, except to the extent
revised by the Commission under paragraph (2), the term
`broadband service' means any service used for transmission of
information of a user's choosing with a transmission speed of
at least 500 kilobits per second in at least 1 direction,
regardless of the transmission medium or technology employed,
that connects to the public Internet for a fee directly--
``(A) to the public; or
``(B) to such classes of users as to be effectively
available directly to the public.
``(2) Annual review of transmission speed.--The Commission
shall review the transmission speed component of the definition
in subparagraph (A) no less frequently than once each year and
revise that component as appropriate.''.
SEC. 253. ELIGIBILITY GUIDELINES.
Section 214(e) (47 U.S.C. 214(e)), as amended by section 251, is
amended by adding at the end the following:
``(8) Eligibility guidelines.--A common carrier may not be
designated as an eligible communications carrier (as defined in
paragraph (7)(D)(ii)) subsection unless it--
``(A) provides a 5-year plan demonstrating how
high-cost universal service support will be used to
improve its coverage, service quality, or capacity in
every wire center for which it seeks designation and
expects to receive universal service;
``(B) demonstrates its ability to remain functional
in emergency situations;
``(C) demonstrates that it will satisfy consumer
protection and service quality standards;
``(D) offers local usage plans comparable to those
offered by the incumbent local exchange carrier in the
areas for which it seeks designation; and
``(E) acknowledges that it may be required to
provide equal access if all other eligible
telecommunications carriers in the designated service
area relinquish their designations pursuant to
paragraph (4) of this subsection.''.
SEC. 254. PRIMARY LINE.
Section 214(e) (47 U.S.C. 214(e)), as amended by section 253, is
amended by adding at the end the following:
``(9) Primary line.--In implementing the requirements of
this Act with respect to the distribution and use of Federal
universal service support the Commission shall not limit such
distribution and use to a single connection or primary line,
and all residential and business lines served by an eligible
telecommunications carrier shall be eligible for Federal
universal service support.''.
SEC. 255. PHANTOM TRAFFIC.
Section 254 (47 U.S.C. 254) is amended by adding at the end the
following:
``(i) Network Traffic Identification Accountability Standards.--
``(1) Network traffic identification standards.--A provider
of voice communications services (including an IP-enabled voice
service provider) shall ensure that all traffic that originates
on its network contains sufficient information to allow for
traffic identification by other communications service
providers that transport, transit, or terminate such traffic,
including information on the identity of the originating
provider, the calling and called parties, and such other
information as the Commission deems appropriate.
``(2) Network traffic identification rulemaking.--The
Commission, in consultation with the States, shall initiate a
single rulemaking no later than 180 days after the date of
enactment of the Internet and Universal Service Act of 2006 to
establish rules and enforcement provisions for traffic
identification.
``(3) Network traffic identification enforcement.--The
Commission shall adopt clear penalties, fines, and sanctions
for insufficiently labeled traffic.''.
SEC. 256. RANDOM AUDITS.
Section 214(e) (47 U.S.C. 214(e)), as amended by section 254, is
amended by adding at the end the following:
``(10) Audits.--Each State commission that designates an
eligible communications provider (as defined in paragraph
(7)(D)(ii) and the Commission, with respect to eligible
communications carriers designated by it, shall provide for
random periodic audits of each such carrier with respect to its
receipt and use of universal service support and its relative
cost to provide service compared to other, similarly situated,
universal service recipients based on their respective study
areas or service areas.''.
SEC. 257. WASTE, FRAUD, AND ABUSE.
The Federal Communications Commission, in consultation with the
Administrator of the Universal Service Administrative Company, shall--
(1) ensure the integrity and accountability of all programs
established under section 254(h) of the Communications Act of
1934 (47 U.S.C. 254(h)); and
(2) not later than 180 days after the date of enactment of
this Act, establish rules--
(A) identifying appropriate fiscal controls and
accountability standards that shall be applied to the
Schools and Libraries Program under section 254(h);
(B) including a memorandum of understanding, or
including contractual relationships, as the Commission
determines appropriate, defining the administrative
structure and processes by which the Universal Service
Administrative Company administers the Schools and
Libraries Program under section 254(h);
(C) creating performance goals and measures for the
Schools and Libraries Program under section 254(h),
such goals and measures shall be used by the Commission
to determine--
(i) how efficiently and cost-effectively
funds are spent in supporting the
telecommunications needs of schools and
libraries; and
(ii) areas for improved operations; and
(D) establishing appropriate enforcement actions,
including imposition of sanctions on applicants and
vendors who repeatedly and knowingly violate program
rules set forth in section 254(h), such as debarment
from the program for individuals convicted of crimes or
held civilly liable for actions taken in connection
with the Schools and Libraries Program.
TITLE III--STREAMLINING FRANCHISING PROCESS
SEC. 301. SHORT TITLE.
This title may be cited as the ``Video Competition and Savings for
Consumers Act of 2006''.
Subtitle A--Updating the 1934 Act and Leveling the Regulatory Playing
Field
SEC. 311. APPLICATION OF TITLE VI TO VIDEO SERVICES AND VIDEO SERVICE
PROVIDERS.
(a) Terminology.--Title VI (47 U.S.C. 521 et seq.), except for
section 602 (47 U.S.C. 522), is amended--
(1) by striking ``cable operator'' and ``cable operators''
each place they appear and inserting ``video service provider''
or ``video service providers'', as appropriate;
(2) by striking ``cable service'' and ``cable services''
each place they appear and inserting ``video service'' or
``video services'', respectively;
(3) by striking ``cable'' each place it appears, except the
second place it appears in section 624(i), and inserting
``video service'';
(4) by striking ``operator'' each place it appears and
inserting ``provider'';
(5) by striking ``cassette'' each place it appears; and
(6) by striking ``tape'' each place it appears and
inserting ``copy''.
(b) Headings.--Title VI (47 U.S.C. 521 et seq.) is amended--
(1) by striking the heading for title VI and inserting
``TITLE VI--VIDEO SERVICES'';
(2) by striking the heading for part II and inserting
``PART II--USE OF VIDEO SERVICES; RESTRICTIONS'';
(3) by striking the heading for part III and inserting
``PART III--FRANCHISING''; and
(4) striking ``CABLE'' in the heading for sections 633 and
640 and inserting ``VIDEO SERVICE''.
(c) Regulations.--
(1) New regulations.--Within 120 days after the date of
enactment of this Act, the Commission shall issue regulations
to implement sections 603, 612, 621, and 622 of the
Communications Act of 1934, as amended by this Act.
(2) Updating existing regulations.--Within 120 days after
the date of enactment of this Act, the Commission shall issue,
as necessary, updated regulations needed under title VI or
other provisions of the Communications Act of 1934 to reflect
the amendments made by this Act.
SEC. 312. PURPOSE; FRANCHISE APPLICATIONS; SCOPE.
(a) Purpose.--Section 601 (47 U.S.C. 521) is amended to read as
follows:
``SEC. 601. PURPOSE.
``It is the purpose of this title to establish a comprehensive
Federal legal framework for the franchising of video services that use
public rights-of-way.''.
(b) Franchise Application; Scope.--Part I of title VI (47 U.S.C.
521 et seq.) is amended by adding at the end the following:
``SEC. 603. FRANCHISE APPLICATIONS.
``(a) In General.--
``(1) 30-day process.--Except as otherwise provided in this
subsection, a franchising authority shall grant a franchise to
provide video service within its franchise area to a video
service provider within 30 calendar days after receiving a
franchise application from the video service provider that is
complete except for--
``(A) the franchise fee, as provided by section
622;
``(B) the number of public, educational, or
governmental use channels required by section 611;
``(C) any fee that may be assessed under section
622(b)(5); and
``(D) the point of contact for the franchising
authority.
``(2) Standardized application form.--A video service
provider shall use the standard franchise application form
promulgated by the Commission under section 612.
``(3) Responsibilities of franchise authority.--Within 15
calendar days after receiving a franchise application under
paragraph (1), a franchising authority may--
``(A) complete the application form by providing
the information described in subparagraphs (A), (B),
(C) and (D) of paragraph (1) in a manner that is
consistent with the requirements of this title; and
``(B) return the completed application to the video
service provider.
``(4) Acceptance of terms.--A franchising agreement shall
take effect on the date on which the completed franchise
application is received by the applicant under paragraph (3)(B)
unless the applicant notifies the franchising authority within
15 calendar days after receipt of the completed franchise
application form that the terms provided are not accepted.
``(5) Exception.--This subsection does not require a
franchise authority to approve or complete an application from
a video service provider if a franchise held by that provider
has been revoked under section 625(b) or 640 by the franchise
authority.
``(b) Deemed Approval.--Except as provided in subsection (a)(5), if
a franchising authority fails to act on a franchise application that
meets the requirements of paragraphs (1) and (2) of subsection (a)
within the 30-day period, the franchise application shall be deemed to
be granted--
``(1) effective on the 31st day after the franchising
authority received the application;
``(2) for a term of 15 years;
``(3) with a franchise fee equal to the lesser of--
``(A) the fee paid by the cable operator with the
most subscribers offering cable service in the
franchise area; or
``(B) 5 percent of gross revenue (determined under
section 622); and
``(4) with an obligation to provide the number of public,
educational, or governmental use channels required by section
611.
``(c) Procedure.--If an application is not granted within 30 days
after its receipt by a franchising authority because of subsection
(a)(5), the applicant may avail itself of the procedures in section 635
of this Act.
``SEC. 604. NO EFFECT ON STATE LAWS OF GENERAL APPLICABILITY.
``Nothing in this title is intended to affect State or local laws
of general applicability for all businesses, except to the extent that
such laws are inconsistent with this title.
``SEC. 605. DIRECT BROADCAST SATELLITE SERVICE.
``No State or local government may regulate direct broadcast
satellite services (as that term is used in section 335 of this
Act).''.
SEC. 313. STANDARD FRANCHISE APPLICATION FORM.
Section 612 (47 U.S.C. 532) is amended to read as follows:
``SEC. 612. STANDARD FRANCHISE AGREEMENT FORM.
``Within 30 days after the date of enactment of the Video
Competition and Savings for Consumers Act of 2006, the Commission shall
promulgate a standard franchise agreement form, the use of which by
franchising authorities shall be mandatory. The franchise application
form shall include blank spaces to be filled in by the video service
provider and the franchising authority, as appropriate, for--
``(1) the name of the video service provider;
``(2) the name and business address of each director and
principal executive officers;
``(3) a point of contact for the video service provider;
``(4) a point of contact for the franchising authority;
``(5) the fees;
``(6) the period during which the franchising agreement
shall be in effect;
``(7) the public, educational, or governmental programming
to be provided;
``(8) the physical location of the headend; and
``(9) a description of the video service to be provided.''.
SEC. 314. DEFINITIONS.
(a) In General.--Section 602 (47 U.S.C. 522) is amended--
(1) by striking ``cable system'' in paragraphs (1) and (9)
and inserting ``video service system'';
(2) by striking ``regulation);'' in paragraph (4) and
inserting ``regulation) or its equivalent (as determined by the
Commission).'';
(3) by inserting after paragraph (11) the following:
``(11A) `headend' means the headend of a cable system or
video service system.'';
(4) by inserting after paragraph (12) the following:
``(12A) `institutional network' means a communication
network that is constructed or operated by a video service
provider cable operator and that is generally available only to
subscribers who are not residential subscribers.'';
(5) by striking ``cable operator'' in paragraph (14) and
inserting ``video service provider'';
(6) by inserting after paragraph (16) the following:
``(16A) `satellite carrier' means an entity that uses the
facilities of a satellite or satellite service licensed by the
Federal Communications Commission and operates in the Fixed-
Satellite Service under part 25 of title 47 of the Code of
Federal Regulations or the Direct Broadcast Satellite Service
under part 100 of title 47 of the Code of Federal Regulations,
to establish and operate a channel of communications for point-
to-multipoint distribution of television station signals, and
that owns or leases a capacity or service on a satellite in
order to provide such point-to-multipoint distribution, except
to the extent that such entity provides such distribution
pursuant to tariff under the Communications Act of 1934, other
than for private home viewing.'';
(7) by striking ``cable service'' in paragraph (17) and
inserting ``video service'';
(8) by striking ``cable operator'' each place it appears in
paragraph (17) and inserting ``video service provider''; and
(9) by inserting after paragraph (20) the following:
``(24) Video service.--The term `video service' means--
``(A) video programming;
``(B) interactive on demand services; or
``(C) other programming services.
``(25) Video service provider.--The term `video service
provider'--
``(A) means a provider of video service that
utilizes a public right-of-way in the provision of such
service, including a cable operator; but
``(B) does not include--
``(i) a satellite carrier;
``(ii) any person providing video
programming using radio communication directly
to the recipient's premises; or
``(iii) any provider of commercial mobile
service (as defined in section 332(d)).''.
(b) Stylistic Consistency.--Section 602 (47 U.S.C. 622), as amended
by subsection (a), is amended--
(1) by striking ``title--'' and inserting ``title:'';
(2) by redesignating paragraphs (1) through (20) as
paragraphs (1) through (23);
(3) by striking the semicolon at the end of each such
paragraph and inserting a period; and
(4) by inserting after the designation of each such
paragraph--
(A) a heading, in a form consistent with the form
of the heading of paragraphs (24) and (25), as added by
subsection (a) of this section consisting of the term
defined by such paragraph, or the first term so defined
in the paragraph defines more than 1 term; and
(B) the words ``The term''.
Subtitle B--Streamlining the Provision of Video Services
SEC. 331. FRANCHISE REQUIREMENTS AND RELATED PROVISIONS.
(a) General Franchise Requirements.--Section 621 (47 U.S.C. 541) is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--
``(1) Award of franchise.--A franchising authority may
not--
``(A) grant an exclusive franchise; or
``(B) grant a franchise for a term shorter than 5
years or longer than 15 years.
``(2) Preservation of local government power to manage
public rights-of-way; easements.--
``(A) In general.--Nothing in this title affects
the authority of a State or local government to apply
its laws or regulations governing the use of the public
rights of way in a manner that is reasonable,
competitively neutral, nondiscriminatory, and
consistent with State statutory police powers,
including permitting, payments for bonds, security
funds, letters of credit, insurance, indemnification,
penalties, or liquidated damages to ensure compliance
with such laws and regulations.
``(B) Limitations on permitting fees.--
``(i) In general.--A State or local
government may not--
``(I) impose a permitting fee on a
video service provider that exceeds the
estimated direct costs incurred by the
State or local government in issuing
the permit;
``(II) impose any conditions for
market entry or use this section as a
barrier to entry by a video service
provider; or
``(III) take any action that would
delay the provision of video services
by a video service provider in a local
franchise area.
``(ii) Reconciliation of overcharges.--
Within 30 days after any re-estimate of
estimated direct costs for purposes of clause
(i)(I) that--
``(I) requires a reduction in the
permitting fee, the State or local
government shall refund the excess, if
any, to the video service provider; or
``(II) results in an increase in
the permitting fee, the video service
provider shall pay the difference
between the amount paid and the
increased fee to the State or local
government.
``(C) Timely action required.--In managing the
public rights-of-way a State or local government that
issues permits or licenses for use of the public
rights-of-way shall act upon any such request for use
in a timely manner.
``(D) New roads.--Nothing in this section shall
affect the ability of a State or local government to
impose reasonable limits on access to public rights-of-
way associated with newly constructed roads.
``(E) Prevention of abuse of power.--If the
Commission determines in a proceeding brought by a
video service provider to enforce this subsection that
a franchising authority abused the authority provided
by this section in violation of subparagraph (B), the
Commission may award reasonable attorneys' fees and
Commission costs to the video service provider.''; and
(2) by striking paragraph (1) of subsection (b) and
inserting ``(1) Except to the extent provided in subsection
(f), a video service provider may not provide video service
without a franchise.''.
(b) Franchise Fee.--Section 622 (47 U.S.C. 542) is amended--
(1) by striking subsections (a) and (b) and inserting the
following:
``(a) In General.--A franchising authority may impose and collect a
franchise fee from a video service provider that provides video
services within the local franchise area of that authority.
``(b) Amount.--
``(1) In general.--The franchise fee imposed by a
franchising authority under subsection (a) for any 12-month
period may not exceed 5 percent of the video service provider's
gross revenue derived in such period. For purposes of this
section, the 12-month period shall be the 12-month period
applicable under the franchise for accounting purposes.
``(2) Prepaid or deferred payment arrangements.--Nothing in
this subsection prohibits a franchising authority and a video
service provider from agreeing that franchise fees which
lawfully could be collected for any such 12-month period shall
be paid on a prepaid or deferred basis, except that the sum of
the fees paid during the term of the franchise may not exceed
the amount, including the time value of money, which would have
lawfully been collected if such fees had been paid per annum.
``(3) Franchising authority and video service provider
agreements.--Nothing in this section precludes a State or local
government and a video service provider from entering into a
voluntary commercial agreement, whereby in consideration for a
mutually agreed upon reduction in the franchise fee under
paragraph (1), the video service provider makes available to
the local unit of government services, equipment, capabilities,
or other valuable consideration.
``(4) PEG and institutional network financial support.--
``(A) In general.--A video service provider with a
franchise under this section for a franchise area may
be required to pay an amount equal to not more than 1
percent of the video service provider's gross revenue
in the franchise area to the franchising authority for
the support of public, educational, and governmental
use and institutional networks. The payment shall be
assessed and collected in a manner consistent with this
section.
``(B) Existing franchise institutional networks.--A
franchising authority may require a cable operator to
continue to provide any institutional network provided
by that cable operator before executing a franchise
agreement under this title.
``(C) Incremental costs.--If the incremental cost
of operating an institutional network under
subparagraph (B) is less than 1 percent of the video
service provider's gross revenue, the video service
provider may deduct the incremental cost of operating
the institutional network from the contribution
required under subparagraph (A). The franchising
authority shall reimburse the video service provider
for the amount by which the incremental cost of
operating such institutional network exceeds any fee
required under subparagraph (A).
``(D) Adjustment.--Every 15 years after the
commencement of a franchise granted after April 30,
2006, a franchising authority may require a video
service provider to increase the channel capacity
designated for public, educational, or governmental
use, and the channel capacity designated for such use
on any institutional networks required under
subparagraph (A). The increase may not exceed the
greater of--
``(i) 1 channel; or
``(ii) 10 percent of the public,
educational, or governmental channel capacity
required of the video service provider before
the required increase.''; and
(2) by striking subsections (d) through (h) and inserting
the following:
``(d) Other Taxes, Fees, and Assessments Not Affected.--
``(1) In general.--Nothing in this section shall be
construed to modify, impair, or supersede, or authorize the
modification, impairment, or supersession of, any State or
local law pertaining to taxation.
``(2) Generally applicable taxes, fees, and assessments.--
Nothing in this section shall be construed to modify, impair,
or supersede any Federal, State, or local tax, fee, or
assessment, or other charges that are--
``(A) applicable to services other than video
service; or
``(B) generally applicable (including any such tax,
fee, assessment, or charge imposed on both utilities
and video service providers or their services other
than a tax, fee, assessment, or charge that is unduly
discriminatory against video service providers or video
service subscribers).
``(3) Telecommunications services.--Nothing in this section
is intended to modify, impair, or supersede the ability of any
State to impose a tax, fee, or assessment (including any such
tax, fee, or assessment that is imposed by the State and
remitted to its political subdivisions) that is--
``(A) measured by the sales price of a
telecommunications service and required to be paid by
all telecommunications service providers or their
customers (including video service providers) on a
nondiscriminatory basis; and
``(B) in lieu of any compensation or other charge
for using or occupying the public rights-of-way to
provide telecommunications service, including the
franchise fee authorized by this section.
``(e) Annual Review.--
``(1) Audit procedure.--A franchising authority that
believes that it is not receiving the full amount of the video
service fee imposed under this section may petition its State
commission to commence an audit to ensure compliance with the
definition of gross revenue and the calculation of fees under
this section. The State commission shall coordinate audits to
the maximum extent possible to avoid unnecessary duplication
and cost on carriers.
``(2) Reimbursement of franchising authority for
substantial deficiencies.--If there is a final determination,
after the dispute resolution procedures under subsection (f)
have been completed, that the video service provider has
underpaid the franchise fee imposed under this section by 5
percent or more for the 12-month period that was the subject of
the review, the video service provider shall reimburse the
franchising authority for the reasonable costs associated with
the review. Those costs include any reasonable amount paid by
the franchising authority to an independent third party for
conducting the review other than any amount paid to an
independent third party under a contingency fee arrangement.
``(3) Statute of limitations.--A franchising authority may
not request a review under paragraph (1) for any 12-month
period ending more than 36 months before the date on which the
request is submitted.
``(f) Dispute Resolution Procedure.--
``(1) Notice; 30-day period.--If there is a dispute between
a franchising authority and a video service provider over the
amount or payment of the fee authorized by this section that
has not been resolved between the parties in a reasonable
period of time under normal business procedures, the aggrieved
party may give the other party written notice of intent to
initiate the dispute resolution procedure provided by this
subsection. Within 30 calendar days after the notice has been
received by the second party, representatives of each party
with authority to settle the dispute shall meet at a mutually
agreed upon time and place to attempt to negotiate a resolution
of the dispute.
``(2) 60-day period; commission complaint procedure.--
``(A) In general.--If the dispute has not been
resolved within 60 calendar days after the notice has
been received by the second party, either party may
file a complaint with the Commission.
``(B) Information provided in the course of
negotiations.--For the purpose of any adjudication by
the Commission under this subsection, information
provided by either party to the other in negotiations
under subparagraph (A) shall be treated as compromise
and settlement negotiations for purposes of the Federal
Rules of Evidence.
``(C) Statute of limitations.--Notwithstanding
subparagraph (A), no complaint may be filed with the
Commission under this paragraph more than 3 years after
the end of the quarter to which the disputed amount
relates, unless the 3-year period is extended by
written agreement between the video service provider
and the local government franchising authority.
``(D) Procedural requirements.--The Commission
shall adopt rules establishing procedures for handling
complaints under this paragraph, which shall require
that--
``(i) the complaint be heard by an
administrative law judge;
``(ii) any decision of the administrative
law judge be directly reviewable by the
Commission upon the request of either party;
``(iii) any review by the Commission be
limited to the record before the administrative
law judge;
``(iv) the complaint be treated as a
restricted proceeding under subpart H of part 1
of the Commission's regulations (47 C.F.R. part
1, subpart H); and
``(v) any review of the Commission's
decision shall be brought as provided in
section 402(a) of this Act.
``(g) GAAP Standards.--For purposes of this section, all financial
determinations and computations shall be made in accordance with
generally accepted accounting principles except as otherwise provided.
``(h) Definitions.--In this section:
``(1) Franchise fee.--The term `franchise fee'--
``(A) includes any tax, fee, or assessment of any
kind imposed by a franchising authority or other
governmental entity on a video service provider or
subscriber, or both, solely because of their status as
such; but
``(B) does not include--
``(i) any tax, fee, or assessment of
general applicability (including any such tax,
fee, or assessment imposed on both utilities
and video service providers or their services
but not including a tax, fee, or assessment
which is unduly discriminatory against video
service providers or subscribers);
``(ii) any fee that is required by the
franchise under section 622(b);
``(iii) requirements or charges incidental
to the awarding or enforcing of the franchise,
including payments for bonds, security funds,
letters of credit, insurance, indemnification,
penalties, or liquidated damages; or
``(iv) any fee imposed under title 17,
United States Code.
``(2) Gross revenue.--
``(A) In general.--The term `gross revenue' means
all consideration of any kind or nature including cash,
credits, property, and in-kind contributions (services
or goods) received by a video service provider from the
provision of broadband video service within a local
franchise area including--
``(i) all charges and fees paid by
subscribers for the provision of video service,
including fees attributable to video service
when that service is sold individually or as
part of package, bundle, or functionally
integrated with services other than video
service; and
``(ii) revenue received by a video service
provider as compensation for carriage of video
programming on the provider's system.
``(B) Affiliates.--The gross revenue of a video
service provider includes gross revenue of an affiliate
to the extent the exclusion of the affiliate's gross
revenue would have the effect of permitting the video
service provider to evade the payment of franchise fees
which would otherwise be paid by that video service
provider for video services provided within the local
franchise area of the franchising authority imposing
the fee.
``(C) Revenue from bundled or functionally
integrated service.--In the case of a video service
that is bundled or functionally integrated with other
services, capabilities, or applications, the portion of
the video service provider's revenue attributable to
such other services, capabilities, or applications
shall be included in gross revenue unless the video
service provider can reasonably identify the division
or exclusion of such revenue from its books and records
kept in the regular course of business.
``(D) Exclusions.--Gross revenue of a video service
provider (or an affiliate to the extent otherwise
included in the gross revenue of the video service
provider under subparagraph (B)) does not include--
``(i) any revenue not actually received,
even if billed, such as bad debts net of any
recoveries of bad debts;
``(ii) refunds, rebates, credits, or
discounts to subscribers or a municipality to
the extent not excluded under clause (i);
``(iii) subject to subparagraph (C), any
revenues received by a video service provider
or its affiliates from the provision of
services or capabilities other than video
service, including--
``(I) voice, Internet access, or
other broadband-enabled applications;
and
``(II) services, capabilities, and
applications that are sold or provided
as part of a package or bundle of
services or capabilities, or that are
functionally integrated with video
service;
``(iv) any revenues received by a video
service provider or its affiliates for the
provision of directory or Internet advertising,
including yellow pages, white pages, banner
advertisement, and electronic publishing;
``(v) any amounts attributable to the
provision of video services to subscribers at
no charge, including the provision of such
services to public institutions without charge;
``(vi) any revenue derived from home
shopping channels;
``(vii) any revenue forgone from the
provision of video service at no charge to any
person other than forgone revenue exchanged for
trades, barters, services, or other items of
value;
``(viii) any tax, fee, or assessment of
general applicability imposed on a subscriber,
subscription, or subscription-related
transaction by Federal, State, or local
government that is required to be collected by
the video service provider and remitted to the
taxing authority, including sales taxes, use
taxes, and utility user taxes;
``(ix) any revenue from the sale of capital
assets or surplus equipment;
``(x) the reimbursement by programmers for
marketing costs actually incurred by a video
service provider for the introduction of new
programming; or
``(xi) any revenue from the sale of video
services for resale to the extent that the
purchaser certifies in writing that it will--
``(I) resell the service; and
``(II) pay any applicable franchise
fee with respect thereto.''.
SEC. 332. RENEWAL; REVOCATION.
Part II of title VI (47 U.S.C. 541 et seq.) is amended--
(1) by striking section 623 and redesignating sections 624
and 624A as sections 623 and 624, respectively; and
(2) by striking sections 625 and 626 and inserting the
following:
``SEC. 625. RENEWAL; REVOCATION.
``(a) Renewal.--A video service provider may submit a written
application for renewal of its franchise to a franchising authority not
more than 180 days before the franchise expires. Any such application
shall be made on the standard application form promulgated by the
Commission under section 612 and shall be treated under section 603 in
the same manner as any other franchise application.
``(b) Revocation.--A franchising authority may revoke a video
service provider's franchise to provide video services if it
determines, after notice and an opportunity for a hearing, that the
video service provider has willfully and repeatedly--
``(1) violated any Federal or State law, or any Commission
regulation, relating to the provision of video services in the
franchise area;
``(2) made false statements, or material omissions, in any
filing with the Commission relating to the provision of video
service in the franchise area; or
``(3) violated the rights-of-way management laws or
regulations of any franchising authority in the franchise area
relating to the provision of video service in the franchise
area.
``(c) Notice; Opportunity To Cure.--A franchising authority may not
revoke a franchise unless it first provides--
``(1) written notice to the video service provider of the
alleged violation in which the revocation would be based; and
``(2) a reasonable opportunity to cure the violation.
``(d) Finality of Decision.--Any decision of a franchising
authority to revoke a franchise under this section is final for
purposes of appeal. A video service provider whose franchise is revoked
by a franchising authority may avail itself of the procedures in
section 635 of this Act.
``(e) Prevention of Abuse of Power.--A franchising authority may
not use this section as a barrier to entry by a video service provider.
If the Commission determines, in a proceeding brought by a video
service provider to enforce this subsection, that a franchising
authority abused the authority provided by this section in violation of
the preceding sentence, the Commission may award reasonable attorneys'
fees and Commission costs to the video service provider.''.
SEC. 333. PEG AND INSTITUTIONAL NETWORK OBLIGATIONS.
Section 611 (47 U.S.C. 531) is amended to read as follows:
``SEC. 611. CHANNELS FOR PUBLIC, EDUCATIONAL, OR GOVERNMENTAL USE.
``(a) In General.--A video service provider that obtains a
franchise shall provide channel capacity for public, educational, or
governmental use that is not less than the channel capacity required of
the video service provider with the greatest number of public,
educational, or governmental use channels in the franchise area on the
effective date of that franchise. If there is no other video service
provider in the franchise area on the effective date of the franchise,
the video service provider shall provide the amount of channel capacity
for such use as determined by Commission rule.
``(b) Editorial Control.--Subject to section 623(b)(1), a video
service provider shall not exercise any editorial control over any
public, educational, or governmental use of channel capacity provided
pursuant to this section, but a video service provider may refuse to
transmit any public access program or portion of a public access
program which contains obscenity.
``(c) Transmission and Production of Programming.--
``(1) PEG programming.--A video service provider shall
ensure that all subscribers receive any public, educational, or
governmental programming carried by the video service provider
within the subscriber's franchise area.
``(2) Production responsibility.--The production of any
programming provided under this subsection shall be the
responsibility of the franchising authority.
``(3) Transmission responsibility.--The video service
provider shall be responsible for the transmission from the
signal origination point (or points) of the programming, or
from the point of interconnection with another video service
provider already offering the public, educational, or
governmental programming under paragraph (4), to the video
service provider's subscribers, or any public, educational, or
governmental programming produced by or for the franchising
authority and carried by the video service provider pursuant to
this section.
``(4) Interconnection; cost-sharing.--Unless 2 video
service providers otherwise agree to the terms for
interconnection and cost sharing, such video service providers
shall comply with regulations prescribed by the Commission
providing for--
``(A) the interconnection between 2 video service
providers in a franchise area for transmission of
public, educational, or governmental programming,
without material degradation in signal quality or
functionality; and
``(B) the reasonable allocation of the costs of
such interconnection between such video service
providers.
``(5) Display of program information.--The video service
provider shall display the program information for public,
educational, or governmental programming in any print or
electronic program guide in the same manner in which it
displays program information for other video programming in the
franchise area. The video service provider shall not omit
public, educational, or governmental programming from any
navigational device, guide, or menu containing other video
programming that is available to subscribers in the franchise
area.''.
SEC. 334. SERVICES, FACILITIES, AND EQUIPMENT.
Section 623 of title VI, as redesignated by section 332, is
amended--
(1) by striking subsections (a), (b), (c), (e), and (h) and
redesignating subsections (d), (f), (g), and (i) as subsections
(a) through (d), respectively; and
(2) by inserting ``or wire'' after ``cable'' in subsection
(d), as redesignated.
SEC. 337. SHARED FACILITIES.
Part III of title VI (47 U.S.C. 541 et seq.) is amended--
(1) by striking section 627 and redesignating sections 628
(after its amendment by section 402) and 629 as sections 626
and 627, respectively; and
(2) by adding at the end the following:
``SEC. 628. ACCESS TO PROGRAMMING FOR SHARED FACILITIES.
``(a) In General.--A video service programming vendor in which a
video service provider has an attributable interest may not deny a
video service provider with a franchise under this title access to
video programming solely because that video service provider uses a
headend for its video service system that is also used, under a shared
ownership or leasing agreement, as the headend for another video
service system.
``(b) Video Service Programming Vendor Defined.--The term `video
service programming vendor' means a person engaged in the production,
creation, or wholesale distribution for sale of video programming that
is primarily intended for direct receipt by video service providers for
retransmission to their video service subscribers.''.
SEC. 338. CONSUMER PROTECTION AND CUSTOMER SERVICE.
Section 632 (47 U.S.C. 552) is amended to read as follows:
``SEC. 632. CONSUMER PROTECTION AND CUSTOMER SERVICE.
``(a) Regulations.--
``(1) In general.--Not later than 120 days after the date
of enactment of the Video Competition and Savings for Consumers
Act of 2006, the Commission, after receiving comments from
interested parties, including franchising authorities and
consumer representatives, shall promulgate regulations, which
may include penalties, with respect to customer service and
consumer protection requirements for video service providers.
``(2) Effective date of regulations.--The regulations
required by subsection (a) shall take effect 60 days after the
date on which a final rule is promulgated by the Commission.
``(b) State Commission Authority.--A State commission shall have
the authority to enforce regulations promulgated under subsection (a).
``(c) Franchising Authority Standing.--A franchising authority
shall have standing to file a complaint, otherwise initiate an
enforcement proceeding, or intervene in a proceeding on behalf of
consumers in its franchise area under the regulations promulgated under
subsection (a).''.
SEC. 339. REDLINING.
Part IV of title VI (47 U.S.C. 551 et seq.) is amended by adding at
the end the following:
``SEC. 642. REDLINING.
``(a) In General.--A video service provider may not deny access to
its video service to any group of potential residential video service
subscribers because of the income, race, or religion of that group.
``(b) Enforcement.--This section shall be enforced by the
Commission through a complaint-initiated adjudication process. A
complaint may be filed by a resident of the franchising area who is
aggrieved by a violation of subsection (a) or by a franchising
authority on behalf of residents of its franchise area.
``(c) Remedies.--If the Commission determines that a video service
provider has violated subsection (a), it--
``(1) shall ensure that the video service provider extends
access to any group denied access in violation of subsection
(a);
``(2) may assess a civil penalty in such amount as may be
authorized under State law for the franchising area in which
the violation occurred for violation of its antidiscrimination
laws; and
``(3) may revoke a video service provider's franchise to
provide video services if it determines, after notice and an
opportunity for a hearing, that the video service provider has
willfully and repeatedly violated this section.''.
Subtitle C--Miscellaneous and Conforming Amendments
SEC. 351. MISCELLANEOUS AMENDMENTS.
(a) Municipal Operators.--Section 621(f) (47 U.S.C. 541(f)) is
amended to read as follows:
``(f) Municipal operators.--No provision of this title shall be
construed to prohibit a local or municipal authority that is also, or
is affiliated with, a franchising authority from operating as a
multichannel video programming distributor in the franchise area,
notwithstanding the granting of one or more franchises by the
franchising authority.''.
(b) Procedure.--Section 622(b) (47 U.S.C. 542(b)), as amended by
section 331(a) of this Act, is further amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Required showing in litigation.--In any lawsuit
challenging the amount of the franchise fee imposed under this
subsection, the franchising authority shall be required to
demonstrate that the rate structure reflects all costs of the
franchise fees.''.
(c) Sunset.--Section 626(c)(5) (47 U.S.C. 546), as redesignated by
section 334, is amended--
(1) by striking ``10 years after the date of enactment of
this section,'' and inserting ``on October 5, 2012,''; and
(2) by striking ``last year of such 10-year period,'' and
inserting ``12-month period ending on that date,''.
(d) Updating.--Section 613 is amended--
(1) by striking ``July 1, 1984,'' in subsection (g) and
inserting ``the date of enactment of the Communications,
Consumer's Choice, and Broadband Deployment of 2006''; and
(2) by striking subsection (a) and redesignating
subsections (c) through (h) as subsections (a) through (f),
respectively.
(e) Repeal.--Section 617 (47 U.S.C. 537) is repealed.
(f) Enforcement.--Section 634(i) (47 U.S.C. 554(i)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs
(1) and (2), respectively.
(g) Restructuring Part IV.--Part IV of title VI (47 U.S.C. 551 et
seq.) is amended--
(1) by striking sections 635A, 636, and 637; and
(2) by redesignating sections 638, 639, 640, 641, and 642
(as added by section 339 of this Act) as sections 636, 637,
638, 639, and 640 respectively.
(h) Conforming Amendments for Retransmission.--
(1) Section 325(b) (47 U.S.C. 325(b)) is amended--
(A) by striking ``cable system'' in paragraph (1)
and inserting ``video service provider''; and
(B) by inserting ``The term `video service
provider' has the meaning given it in section 602(25)
of this Act.'' after ``title.'' in the matter following
subparagraph (E) of paragraph (2).
(2) Section 336(b) (47 U.S.C. 336(b)) is amended by
striking ``section 614 or 615 or be deemed a multichannel video
programming distributor for purposes of section 628;'' and
inserting ``section 614 or 615;''.
Subtitle D--Effective Dates and Transition Rules.
SEC. 381. EFFECTIVE DATES; PHASE-IN.
(a) In General.--
(1) 6-month delay.--Except as provided in paragraph (2),
the amendments made by this Act (the Video Competition and
Savings for Consumers Act of 2006) shall take effect 180 days
after the date of enactment of this Act.
(2) Initiation of certain proceedings.--Notwithstanding
paragraph (1), the Federal Communications Commission shall
initiate any proceeding required by title VI of the
Communications Act of 1934, as amended by this Act, or made
necessary by such amendment as soon as practicable after the
date of enactment of this Act.
(b) Application to Existing Franchise Agreements.--
(1) In general.--Except as provided in paragraph (2), the
provisions of title VI of the Communications Act of 1934, as
amended by this Act, shall not apply to a franchise agreement
in effect on the date of enactment of this Act between a
franchising authority and a video service provider before the
expiration date of the agreement, as determined without regard
to any renewal or extension of the agreement. The provisions of
title VI of that Act, as in effect on the day before the date
of enactment of this Act shall continue to apply to any such
franchise agreement as provided by subsection (c) until the
earlier of--
(A) the expiration date of the agreement; or
(B) that date on which a new franchise agreement
that replaces the existing franchise agreement takes
effect.
(2) Competition trigger.--
(A) Notification of existing franchisee required.--
If a franchising authority receives an application from
a video service provider to provide video service in an
area in which cable service is provided under an
existing franchise agreement, it shall notify any cable
operator providing cable service in that area.
(B) New franchise agreement supersedes existing
agreement.--Upon receipt of notice under subparagraph
(A), a cable operator may submit an application for a
franchise under section 603 of the Communications Act
of 1934, as amended by this Act. When the franchise is
granted--
(i) the terms and conditions of the new
franchise agreement supersede the existing
franchise agreement; and
(ii) the provisions of title VI of the
Communications Act of 1934, as amended by this
Act, shall apply.
(c) Limited Application of Old Title VI .--
(1) In general.--Except as provided in subsection (b) or
otherwise explicitly provided in new title VI, the provisions
of old title VI (and all regulations, rulings, waivers, orders,
and franchise agreements under old title VI) shall continue in
effect after the date of enactment of this Act with respect to
any cable operator to which they applied before that date until
the earlier of--
(A) the expiration date of the franchise agreement
under which the cable operator was operating on the
date of enactment of this Act; or
(B) that date on which a new franchise agreement
takes effect that replaces a cable operator's franchise
agreement described in subparagraph (A).
(2) Definitions.--In this subsection:
(A) New title vi.--The term ``new title VI'' means
title VI of the Communications Act of 1934 (47 U.S.C.
521 et seq.) as amended by this Act.
(B) Old title vi.--The term ``old title VI'' means
title VI of the Communications Act of 1934 (47 U.S.C.
521 et seq.) as in effect on the day before the date of
enactment of this Act.
TITLE IV--VIDEO CONTENT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Video Content Act''.
Subtitle A--Sports Freedom
SEC. 401. SHORT TITLE.
This subtitle may be cited as the ``Sports Freedom Act of 2006''.
SEC. 402. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO PROGRAMMING
DISTRIBUTION.
(a) In General.--Section 628 (47 U.S.C. 548), before its
redesignation by section 337 of this Act, is amended to read as
follows:
``SEC. 628. DEVELOPMENT OF COMPETITION AND DIVERSITY IN VIDEO
PROGRAMMING DISTRIBUTION.
``(a) Purpose.--The purpose of this section is--
``(1) to promote the public interest, convenience, and
necessity by increasing competition and diversity in the
multichannel video programming market;
``(2) to increase the availability of MVPD programming and
satellite broadcast programming to persons in rural and other
areas not currently able to receive such programming; and
``(3) to spur the development of communications
technologies.
``(b) Prohibition.--It is unlawful for an MVPD, an MVPD
programming vendor in which an MVPD 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 MVPD from providing MVPD
programming or satellite broadcast programming to subscribers
or consumers.
``(c) Regulations Required.--
``(1) Proceeding required.--Not later than 180 days after
the date of enactment of the Sports Freedom Act of 2006, the
Commission shall prescribe regulations to specify particular
conduct that is prohibited by subsection (b), in order to
promote--
``(A) the public interest, convenience, and
necessity by increasing competition and diversity in
the multichannel video programming market; and
``(B) the continuing development of communications
technologies.
``(2) Minimum contents of regulation.-- The regulations
required under paragraph (1) shall--
``(A) establish effective safeguards to prevent an
MVPD which has an attributable interest in an MVPD
programming vendor or a satellite broadcast programming
vendor from unduly or improperly influencing the
decision of such vendor to sell, or the prices, terms,
and conditions of sale of, MVPD programming or
satellite broadcast programming to any unaffiliated
MVPD;
``(B) prohibit discrimination by an MVPD
programming vendor in which an MVPD has an attributable
interest or by a satellite broadcast programming vendor
in the prices, terms, and conditions of sale or
delivery of MVPD programming or satellite broadcast
programming among or between cable systems, cable
operators, or other MVPDs, or their agents or buying
groups, except that an MVPD programming vendor in which
an MVPD has an attributable interest or such a
satellite broadcast programming vendor shall not be
prohibited from--
``(i) imposing reasonable requirements
for--
``(I) creditworthiness;
``(II) offering of service; and
``(III) 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
MVPD 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 MVPD programming or satellite broadcast
programming between an MVPD and an MVPD programming
vendor or satellite broadcast programming vendor, that
prevent an MVPD from obtaining such programming from
any MVPD programming vendor in which an MVPD has an
attributable interest or any satellite broadcast
programming vendor in which an MVPD has an attributable
interest for distribution to persons in areas not
served by an MVPD as of the date of enactment of the
Sports Freedom Act of 2006; and
``(D) with respect to distribution to persons in
areas served by an MVPD, prohibit exclusive contracts
for MVPD programming or satellite broadcast programming
between an MVPD and an MVPD programming vendor in which
an MVPD has an attributable interest or a satellite
broadcast programming vendor in which an MVPD has an
attributable interest, unless the Commission determines
(in accordance with paragraph (4)) that such contract
is in the public interest.
``(3) Preemption and rescheduling of children's programs.--
Nothing in this section shall be construed in a manner that
limits the discretion of a licensee of a local television
broadcast station to preempt or to reschedule programming
specifically designed to serve educational and informational
needs of children in order to air timely coverage of news or
sporting events.
``(4) Limitations.--
``(A) Geographic limitations.--Nothing in this
section shall require any person who is engaged in the
national or regional distribution of video programming
to make such programming available in any geographic
area beyond which such programming has been authorized
or licensed for distribution.
``(B) Applicability to satellite retransmissions.--
Nothing in this section shall apply--
``(i) to the signal of any broadcast
affiliate of a national television network or
other television signal that is retransmitted
by satellite but that is not satellite
broadcast programming; or
``(ii) to any internal satellite
communication of any broadcast network or cable
network that is not satellite broadcast
programming.
``(C) Exclusion of individual video programs.--
Nothing in this section shall apply to a specific
individual video program produced by an MVPD for local
distribution by that MVPD and not made available
directly or indirectly to unaffiliated MVPDs, if--
``(i) all other video programming carried
on a programming channel or network on which
the individual video program is carried, is
made available to unaffiliated MVPDs pursuant
to paragraph (2)(D); and
``(ii) such specific individual video
program is not the transmission of a sporting
event.
``(D) MVPD sports programming.--The prohibition set
forth in paragraph (2)(D), and the rules adopted by the
Commission pursuant to that paragraph, shall apply to
any MVPD programming that includes the transmission of
live sporting events, irrespective of whether an MVPD
has an attributable interest in the MVPD programming
vendor engaged in the production, creation, or
wholesale distribution of such MVPD programming.
``(5) Public interest determinations on exclusive
contacts.--In determining whether an exclusive contract is in
the public interest for purposes of paragraph (2)(D), the
Commission shall consider with respect to the effect of such
contract on the distribution of video programming in areas that
are served by an MVPD--
``(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 MVPD 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.
``(6) Sunset provision.--The prohibition required by
paragraph (2)(D) shall cease to be effective 10 years after the
date of enactment of the Sports Freedom Act of 2006, 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.--
``(1) In general.--An MVPD 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.
``(2) Request for production of agreements.--In any
proceeding commenced under paragraph (1), the Commission shall
request from a party, and the party shall produce, such
agreements between the party and a third party relating to the
distribution of MVPD programming that the Commission believes
to be relevant to its decision regarding the matters at issue
in such adjudicatory proceeding.
``(3) Confidentiality to be maintained.--The production of
any agreement under paragraph (2) and its use in a Commission
decision in the adjudicatory proceeding under paragraph (1)
shall be subject to such provisions ensuring confidentiality as
the Commission may by regulation determine.
``(e) Remedies for Violations.--
``(1) Remedies authorized.--Upon completion of an
adjudicatory proceeding under subsection (d), 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 an aggrieved MVPD.
``(2) Additional remedies.--The remedies provided under
paragraph (1) are in addition to any remedy available to an
MVPD under title V or any other provision of this Act.
``(f) Procedures.--
``(1) In general.--The Commission shall prescribe
regulations to implement this section.
``(2) Content of regulations.--The regulations required
under paragraph (1) shall--
``(A) provide for an expedited review of any
complaints made pursuant to this section, including the
issuance of a final order terminating such review not
later than 120 days after the date on which the
complaint was filed;
``(B) establish procedures for the Commission to
collect such data as the Commission requires to carry
out this section, including the right to obtain copies
of all contracts and documents reflecting arrangements
and understandings alleged to violate this section; and
``(C) provide for penalties to be assessed against
any person filing a frivolous complaint pursuant to
this section.
``(g) Reports.--The Commission shall, beginning not later than 18
months after promulgation of the regulations required by subsection
(c), annually report to Congress on the status of competition in the
market for the delivery of video programming.
``(h) Exemptions for Prior Contracts.--
``(1) In general.--Nothing in this section shall affect--
``(A) 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; or
``(B) any contract that grants exclusive
distribution rights to any person with respect to MVPD
programming that is not satellite cable programming and
that was entered into on or before July 1, 2003, except
that the provisions of subsection (c)(2)(C) shall apply
for distribution to persons in areas not served by an
MVPD.
``(2) Limitation on renewals.--
``(A) Satellite cable programming contracts.--A
contract pertaining to satellite cable programming or
satellite broadcast programming that was entered into
on or before June 1, 1990, but that is renewed or
extended after the date of enactment of the Sports
Freedom Act of 2006 shall not be exempt under paragraph
(1).
``(B) MVPD programming contracts.-- A contract
pertaining to MVPD programming that is not satellite
cable programming that was entered into on or before
July 1, 2003, but that is renewed or extended after the
date of enactment of the Sports Freedom Act of 2006
shall not be exempt under paragraph (1).
``(i) Definitions.--In this section:
``(1) MVPD.--The term ``MVPD'' means multichannel video
programming distributor.
``(2) MVPD programming.--The term ``MVPD programming''
includes the following:
``(A) Direct receipt.--Video programming primarily
intended for the direct receipt by MVPDs for their
retransmission to MVPD subscribers (including any
ancillary data transmission).
``(B) Additional programming.--
``(i) In general.--Additional types of
programming content that the Commission
determines in a rulemaking proceeding to be
completed not later than 120 days from the date
of enactment of the Sports Freedom Act of 2006,
as of the time of such rulemaking, of a type
that is--
``(I) primarily intended for the
direct receipt by MVPDs for their
retransmission to MVPD subscribers,
regardless of whether such programming
content is--
``(aa) digital or analog;
``(bb) compressed or
uncompressed;
``(cc) encrypted or
unencrypted; or
``(dd) provided on a
serial, pay-per-view, or on
demand basis; and
``(II) without regard to the end
user device used to access such
programming or the mode of delivery of
such programming content to MVPDs.
``(ii) Considerations.--In making the
determination under clause (i), the Commission
shall consider the effect of technologies and
services that combine different forms of
content so that certain content or programming
is not included within the meaning of MVPD
programming solely because it is integrated
with other content that is of a type that is
primarily intended for the direct receipt by
MVPDs for their retransmission to MVPD
subscribers.
``(iii) Modification of programming defined
as mvpd programming.-- At any time after 3
years following the conclusion of the
rulemaking proceeding required under clause
(ii), any interested MVPD or MVPD programming
vendor may petition the Commission to modify
the types of additional programming content
included by the Commission within the
definition of MVPD programming in light of--
``(I) the purpose of this section;
``(II) market conditions at the
time of such petition; and
``(III) the factors to be
considered by the Commission under
clause (ii).
``(3) MVPD programming vendor.--The term `MVPD programming
vendor'--
``(A) means a person engaged in the production,
creation, or wholesale distribution for sale of MVPD
programming; and
``(B) does not include a satellite broadcast
programming vendor.
``(4) Satellite broadcast programming.-- The term
`satellite broadcast programming' means broadcast video
programming when--
``(A) such programming is retransmitted by
satellite; and
``(B) 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.
``(5) Satellite broadcast programming vendor.--The term
`satellite broadcast programming vendor' means a fixed service
satellite carrier that provides satellite broadcast
programming.
``(6) Satellite cable programming.--The term `satellite
cable programming' has the same meaning as in section 705,
except that such term does not include satellite broadcast
programming.
``(7) Satellite cable programming vendor.--The term
`satellite cable programming vendor'--
``(A) means a person engaged in the production,
creation, or wholesale distribution for sale of
satellite cable programming; but
``(B) does not include a satellite broadcast
programming vendor.
``(j) Common carriers.--
``(1) In general.--Any provision that applies to an MVPD
under this section shall apply to a common carrier or its
affiliate that provides video programming by any means directly
to subscribers.
``(2) Attributable interest.--Any provision that applies to
an MVPD programming vendor in which an MVPD has an attributable
interest shall apply to any MVPD programming vendor in which
such common carrier has an attributable interest.
``(3) Limitation.--For the purposes of this subsection, 2
or fewer common officers or directors shall not by itself
establish an attributable interest by a common carrier in an
MVPD programming vendor (or its parent company).''.
(b) Effective Date.--Notwithstanding section 381 of this Act, the
amendment made by subsection (a) shall take effect on the date of
enactment of this Act.
SEC. 403. REGULATIONS.
Not later than 120 days after the date of enactment of this Act,
the Commission shall prescribe such regulations as may be necessary to
implement section 628 of the Communications Act of 1934 (47 U.S.C. 548)
as amended by section 402(a).
Subtitle B--National Satellite
SEC. 431. AVAILABILITY OF CERTAIN LICENSED SERVICES IN NONCONTIGUOUS
STATES.
Notwithstanding any other provision of law, before the Federal
Communications Commission grants a license under the Communications Act
of 1934 (47 U.S.C. 151 et seq.) to a satellite carrier (as defined in
section 338(k)(5) of that Act (47 U.S.C. 338(k)(5))), it shall ensure
that, to the greatest extent technically feasible, if the license is
granted the service provided by that carrier pursuant to the license
will be available to subscribers in the noncontiguous States to the
same extent as that service is available to subscribers in the
contiguous States.
Subtitle C--Video and Audio Flag
SEC. 451. SHORT TITLE.
This subtitle may be cited as the ``Digital Content Protection Act
of 2006''.
SEC. 452. DIGITAL VIDEO BROADCASTING.
Part I of title III (47 U.S.C. 301 et seq.) is amended by adding at
the end the following:
``SEC. 342. PROTECTION OF DIGITAL VIDEO BROADCASTING CONTENT.
``(a) In General.--Within 30 days after the date of enactment of
the Digital Content Protection Act of 2006, the Commission shall
initiate, and within 6 months after that date conclude, a proceeding--
``(1) to implement its Report and Order in the matter of
Digital Broadcast Content Protection, FCC 03-273 and its Report
and Order in the matter of Digital Output Protection Technology
and Recording Method Certifications, FCC 04-193; and
``(2) to modify, if necessary, such Reports and Orders to
meet the requirements of subsection (b) of this section.
``(b) Requirements.--In the regulations promulgated under this
section, the Commission shall permit transmission of--
``(1) short excerpts of broadcast digital television
content over the Internet; and
``(2) broadcast digital television content over a home
network or other localized network accessible to a limited
number of devices connected to such network; or
``(C) broadcast digital television content over the
Internet for distance learning purposes;
``(2) permit government bodies or accredited nonprofit
educational institutions to use copyrighted work in distance
education courses pursuant to the Technology, Education, and
Copyright Harmonization Act of 2002 and the amendments made by
that Act;
``(3) permit the redistribution of news and public affairs
programming (not including sports) in which the primary
commercial value depends on timeliness as determined by the
broadcaster or broadcasting network; and
``(4) require that any authorized redistribution control
technology and any authorized recording method technology
approved by the Commission under this Section that is publicly
offered to licensees, be licensed on reasonable and
nondiscriminatory terms and conditions.
``(c) Review of Determinations.--The Commission may review any such
determination described in subsection (b)(3) by a broadcaster or
broadcasting network if the Commission receives a bona fide complaint
alleging, or otherwise has reason to believe, that the determination is
inconsistent with the requirements of that subsection or the
regulations promulgated thereunder.
``(d) Effective Date of Regulations.--Regulations promulgated under
this section shall take effect 12 months after the date on which the
Commission issues a final rule under this section.''.
SEC. 453. DIGITAL AUDIO BROADCASTING.
Part I of title III (47 U.S.C. 301 et seq.), as amended by section
452, is further amended by adding at the end the following:
``SEC. 343. PROTECTION OF DIGITAL AUDIO BROADCASTING CONTENT.
``(a) In General.--Subject to section 454(d)(2) of the Digital
Content Protection Act of 2006, the Commission may promulgate
regulations governing the indiscriminate redistribution of audio
content with respect to--
``(1) digital radio broadcasts;
``(2) satellite digital radio transmissions; and
``(3) digital radios.
``(b) Monitoring Organizations.--The Commission shall ensure that a
performing rights society or a mechanical rights organization, or any
entity acting on behalf of such a society or organization, is granted a
license for free or for a de minimis fee to cover only the reasonable
costs to the licensor of providing the license, and on reasonable,
nondiscriminatory terms and conditions, to access and retransmit as
necessary any content contained in such transmissions protected by
content protection or similar technologies, if such licenses are for
purposes of carrying out the activities of such society, organization,
or entity in monitoring the public performance or other uses of
copyrighted works, and such society, organization, or entity employs
reasonable methods to protect any such content accessed from further
distribution.''.
SEC. 454. DIGITAL AUDIO REVIEW BOARD.
(a) Establishment.--The Federal Communications Commission shall
establish an advisory committee, to be known as the Digital Audio
Review Board.
(b) Membership.--Members of the Board shall be appointed by the
chairman of the Commission and shall include representatives nominated
by--
(1) the information technology industry;
(2) the software industry;
(3) the consumer electronics industry;
(4) the radio broadcasting industry;
(5) the satellite radio broadcasting industry;
(6) the cable industry;
(7) the audio recording industry;
(8) the music publishing industry;
(9) performing rights societies, including--
(A) the American Society of Composers, Authors and
Publishers;
(B) Broadcast Music, Inc.; and
(C) SESAC, Inc.;
(10) public interest organizations;
(11) organizations representing recording artists,
performers and musicians; and
(12) any other group that the Commission determines will be
directly affected by adoption of broadcast flag technology
regulations.
(c) Duty.--
(1) In general.--Within 1 year after the date of enactment
of this Act, the Board shall submit to the Commission a
proposed regulation under section 343 of the Communications Act
of 1934 (47 U.S.C. 343) that--
(A) represents a consensus of the members of the
Board; and
(B) are consistent with fair use principles.
(2) Extension of 1-year period.--The Commission may extend,
for good cause shown, the 1-year period described in paragraph
(1) for a period of not more than 6 months, if the Commission
determines that--
(A) substantial progress has been made by the Board
toward the development of a proposed regulation;
(B) the members of the Board are continuing to
negotiate in good faith; and
(C) there is a reasonable expectation that the
Board will draft and submit a proposed regulation
before the expiration of the extended period of time.
(d) Commission Treatment of Proposed Regulation.--
(1) Draft regulation.--Within 30 days after the Commission
receives a proposed regulation from the Board under this
section the Commission shall initiate a rulemaking proceeding
to implement the proposed regulation.
(2) Deference; deadline.--If the Board submits a proposed
regulation under this section the Commission, in promulgating a
regulation under section 343 of the Communications Act of 1934,
shall--
(A) give substantial deference to the proposed
regulation submitted by the Board; and
(B) issue a final rule not later than 6 months
after the date on which the proceeding was initiated.
(3) Commission action if no board action.--If the Board
does not submit a proposed regulation to the Commission within
1 year after the date of enactment of this Act, plus any
extension granted by the Commission under subsection (c), the
Commission may not promulgate regulations under section 343 of
the Communications Act of 1934, but shall submit
recommendations to the Senate Committee on Commerce, Science,
and Transportation and the House Committee on Energy and
Commerce.
(e) Administrative Provisions.--
(1) Meetings.--The Board shall meet at the call of the
Chairman of the Commission.
(2) Executive director.--The Chairman of the Commission
may, without regard to civil service laws and regulations,
appoint and terminate an Executive Director and such other
additional personnel as may be necessary to enable the Board to
perform its duties. The Executive Director shall be compensated
at a rate not to exceed the rate of pay payable for level V of
the Executive Schedule under section 5316 of title 5, United
States Code.
(3) Temporary and intermittent services.--In carrying out
its duty, the Board may procure temporary and intermittent
services of consultants and experts under section 3109(b) of
title 5, United States Code, at rates for individuals which do
not exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under section
5316 of such title.
(4) Detail of government employees.--Upon request of the
Board, the head of any Federal agency may detail any Federal
Government employee to the Board without reimbursement, and
such detail shall be without interruption or loss of civil
service status or privilege.
(5) Administrative support.--Notwithstanding section 7(c)
of the Federal Advisory Committee Act (5 U.S.C. App.), the
Commission shall provide the Board with such administrative and
supportive services as are necessary to ensure that the Board
can carry out its functions.
(6) Termination.--The Board shall terminate on the date on
which it submits a proposed regulation to the Commission or at
the discretion of the Chairman of the Federal Communications
Commission.
TITLE V--MUNICIPAL BROADBAND
SEC. 501. SHORT TITLE.
This title may be cited as the ``Community Broadband Act''.
SEC. 502. STATE REGULATION OF MUNICIPAL BROADBAND NETWORKS.
Section 706 of the Telecommunications Act of 1996 (47 U.S.C. 157
note) is amended--
(1) by redesignating subsection (c) as subsection (h);
(2) by inserting after subsection (b) the following:
``(c) Local Government Provision of Advanced Communications
Capability and Services.--No State or local government statute,
regulation, or other State or local government legal requirement may
prohibit or have the effect of prohibiting any public provider from
providing, to any person or any public or private entity, advanced
communications capability or any service that utilizes the advanced
communications capability provided by such provider.
``(d) Safeguards.--
``(1) Antidiscrimination.--To the extent any public
provider regulates competing providers of advanced
communications capability, it shall apply its ordinances and
rules and policies, including those relating to the use of
public rights-of-way, permitting, performance bonding and
reporting, without discrimination in favor of itself or any
advanced communications capability provider that it owns or is
affiliated with, as compared to other providers of such
capability or services.
``(2) Application of general laws.--A public provider may
not provide advanced communications capability to the public
unless the provision of such capability by that public provider
is subject to the same laws and regulations that would apply if
the advanced communications capability were being provided by a
nongovernmental entity.
``(3) Open access to non-governmental entities.--If a
public provider initiates a project to provide advanced
communications capability to the public, it shall grant to a
requesting non-governmental entity the right to place similar
facilities in the same conduit, trenches, and locations as the
public provider for concurrent or future use under the same
conditions as the public provider. A public provider may limit,
or refuse to grant, such a right to a requesting non-
governmental entity with respect to any such conduit, trench,
or location for public safety reasons.
``(4) Enforcement.--Paragraphs (1), (2), and (3) preempt
any State or local law, regulation, rule, or practice that is
inconsistent with the requirements of those paragraphs. If the
Commission determines, after notice and an opportunity for a
hearing, that a State or local government is engaging in any
act or practice that violates paragraph (1), (2), or (3), the
Commission shall take such action as may be necessary to enjoin
or restrain the State or local government from engaging in that
act or practice.
``(e) Public-Private Partnerships Encouraged.--If a public provider
initiates a project to provide advanced communications capability to
the public through a public-private partnership, the public provider
shall publish a request for proposals in a publication of general
circulation in the community in which the project is to be implemented
and solicit bids through an open bid process.
``(f) Protection Against Undue Government Competition With Private
Sector.--
``(1) Notice and opportunity to bid required.--If a public
provider decides not to initiate a project to provide advanced
communications capability to the public through a public-
private partnership, then, before the public provider may
provide advanced communications capability to the public, it
shall--
``(A) publish notice of its intention in media
generally available to the public in the area in which
it intends to provide such capability; and
``(B) provide an opportunity for commercial
enterprises to bid for the rights to provide such
capability during the 30-day period following
publication of the notice.
``(2) Notice requirements.--The public provider shall
include in the notice required by paragraph (1) a description
of the proposed scope of the advanced communications capability
to be provided, including--
``(A) the services to be provided (including
network capabilities);
``(B) the coverage area;
``(C) service tiers and pricing; and
``(D) any proposal for providing advanced
communications capability to low-income areas, or other
demographically or geographically defined areas, that
are not the same as the terms, service, pricing, or
tiers applicable in other portions of the coverage
area.
``(3) Private sector right of first refusal.--The public
provider may proceed with the project only if, during the 30-
day period, no private sector entity submits a bid to provide
equivalent advanced communications capability of the same scope
for the same or lower cost to consumers, as determined by a
neutral third party, and demonstrates the requisite technical
and financial ability to provide that capability. The neutral
third party shall be selected by the public provider, and the
private sector entity shall bear the costs of using a neutral
third party.
``(4) Application to existing arrangements and pending
proposals.--This subsection does not apply to--
``(A) any contract or other arrangement under which
a public provider is providing advanced communications
capability to the public as of April 20, 2006; or
``(B) any public provider proposal to provide
advanced communications capability to the public that,
as of April 20, 2006--
``(i) is in the request-for-proposals
process;
``(ii) is in the process of being built; or
``(iii) has been approved by referendum but
is the subject of a lawsuit brought before
March 1, 2006.
``(g) Public Safety Exemption.--Subsections (d), (e), and (f) of
this section do not apply when a public provider provides advanced
communications capabilities other than to the public or to such classes
of users as effectively to be available to the public.'';
(3) by adding at the end of subsection (h), as
redesignated, the following:
``(3) Public provider.--The term `public provider' means a
State or political subdivision thereof, any agency, authority,
or instrumentality of a State or political subdivision thereof,
or an Indian tribe (as defined in section 4(e) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C.
450b(e)), or any entity that is owned, controlled, or otherwise
affiliated with a State, political subdivision thereof, agency,
authority, or instrumentality, or Indian tribe.''; and
(4) by striking ``capability.--'' in paragraph (1) of
subsection (h), as redesignated, and inserting ``capability;
advanced communications capability.--'';
(5) by striking ``is defined'' in paragraph (2) of
subsection (h), as redesignated, and inserting ``and `advanced
communications capability' mean''; and
(6) by striking ``as'' in that paragraph.
TITLE VI--WIRELESS INNOVATION NETWORKS
SEC. 601. SHORT TITLE.
This title may be cited as the ``Wireless Innovation Act of 2006''
or the ``WIN Act of 2006''.
SEC. 602. ELIGIBLE TELEVISION SPECTRUM MADE AVAILABLE FOR WIRELESS USE.
Part I of title III (47 U.S.C. 301 et seq.), as amended by section
453 of this Act, is further amended by adding at the end the following:
``SEC. 344. ELIGIBLE BROADCAST TELEVISION SPECTRUM MADE AVAILABLE FOR
WIRELESS USE.
``(a) In General.--Effective 270 days after the date of enactment
of the WIN Act of 2006, a certified unlicensed device may use eligible
broadcast television frequencies in a manner that protects licensees
from harmful interference.
``(b) Commission To Facilitate Use.--Within 270 days after the date
of enactment of that Act, the Commission shall adopt minimal technical
and device rules in ET Docket No. 04-186 to facilitate the efficient
use of eligible broadcast television frequencies by certified
unlicensed devices, which shall include rules and procedures--
``(1) to protect licensees from harmful interference from
certified unlicensed devices;
``(2) to require certification of unlicensed devices
designed to be operated in the eligible broadcast television
frequencies which shall include testing in a laboratory
certified by the Commission that demonstrates (A) compliance
with the requirements set forth pursuant to this paragraph and
(B) that such compliance effectively protects licensees from
harmful interference;
``(3) to require manufacturers of such devices to include a
means of disabling or modifying the device remotely if the
Commission determines that certain certified unlicensed devices
may cause harmful interference to licensees;
``(4) to address immediately any complaints from licensees
that a certified unlicensed device causes harmful interference
including verification, in the field, of actual harmful
interference; and
``(5) to limit the operation or use of certified unlicensed
devices within any geographic area in which a public safety
entity is authorized to operate as a primary licensee within
the eligible broadcast television frequencies.
``(c) Definitions.--In this section:
``(1) Certified unlicensed device.--The term `certified
unlicensed device' means a device certified under subsection
(b)(2).
``(2) Eligible broadcast television frequencies.--The term
`eligible broadcast television frequencies' means the following
frequencies:
``(A) All frequencies between 54 and 72 megaHertz,
inclusive.
``(B) All frequencies between 76 and 88 megaHertz,
inclusive.
``(C) All frequencies between 174 and 216
megaHertz, inclusive.
``(D) All frequencies between 470 and 608
megaHertz, inclusive.
``(E) All frequencies between 616 and 698
megaHertz, inclusive.
``(3) Licensee.--The term `licensee' means a licensee, as
defined in section 3(24), that holds a license to operate in
the eligible broadcast television frequencies and is operating
in such frequencies in a manner that is not inconsistent with
its license.''.
TITLE VII--DIGITAL TELEVISION
SEC. 701. ANALOG AND DIGITAL TELEVISION SETS AND CONVERTER BOXES;
CONSUMER EDUCATION AND REQUIREMENTS TO REDUCE THE
GOVERNMENT COST OF THE CONVERTER BOX PROGRAM.
(a) Consumer Education Requirements.--Section 330 (47 U.S.C. 330)
is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Consumer Education Requirements Regarding Analog Receivers.--
``(1) Requirements for manufacturers.--The manufacturer of
any analog television set manufactured in the United States or
shipped in interstate commerce shall--
``(A) place the appropriate removable label
described in paragraph (4) on the screen of such
television set; and
``(B) display the consumer information required by
paragraph (5) on the outside of the retail packaging of
the television set--
``(i) in a clear and conspicuous manner;
and
``(ii) in a manner that cannot be removed.
``(2) Requirements for in-store retailers.--Not later than
60 days after the conclusion of the rulemaking proceeding
required under paragraph (5), each in-store retailer shall
place adjacent to television sets that such retailer displays
for sale or rent, a separate sign containing the consumer
information required by paragraph (5).
``(3) Requirements for other retailers.--Not later than 60
days after the conclusion of the rulemaking proceeding required
under paragraph (5), any retailer of television sets described
in paragraph (2) that sells such television sets via direct
mail, catalog, or electronic means, shall include in all
advertisements or descriptions of such television set the
product and the information described in paragraph (4).
``(4) Product and digital television transition
information.--The following product and digital television
transition information shall be displayed as a label on analog
television sets, in both English and Spanish:
`CONSUMER ALERT
`This TV only has an ``analog'' broadcast tuner and
will require a converter box after February 17, 2009 to
receive over-the-air broadcasts with an antenna because
of the Nation's transition to digital broadcasting on
that date as required by Federal law. It should
continue to work as before with cable and satellite TV
services, gaming consoles, VCRs, DVD players, and
similar products.'.
``(5) Consumer information.--The consumer information
required by this paragraph shall--
``(A) be developed by the Commission in a
rulemaking proceeding concluded not later than 60 days
after the date of enactment of the Communications,
Consumer's Choice, and Broadband Deployment of 2006;
``(B) clearly explain--
``(i) what the digital transition is;
``(ii) how it serves the public interest;
``(iii) how it will benefit public safety
and improve wireless services;
``(iv) how it may affect television
viewers, including--
``(I) the deadline for termination
of analog television broadcasting;
``(II) the options consumers have
after such termination to continue to
receive broadcast programming;
``(III) the information that
analog-only television sets will
continue to work as before with cable
and satellite television systems,
gaming consoles, VCRs, DVD players and
recorders, camcorders, and similar
products; and
``(IV) the capabilities of
television sets, including digital
sets;
``(v) how the transition will affect
subscribers of multichannel video programming
distributors (as defined in section 602); and
``(vi) that consumers who have analog-only
television sets will need a converter box in
order to receive over-the-air broadcast
programming; and
``(C) include any additional information the
Commission deems appropriate with respect to any
television set.
``(6) Commission outreach.--
``(A) In general.--Beginning within 1 month after
the date of enactment of the Communications, Consumer's
Choice, and Broadband Deployment of 2006, the
Commission shall engage in a public outreach program to
educate consumers about the digital television
transition, including the consumer information
described in paragraph (5).
``(B) Website.--The Commission shall maintain and
publicize a website, or an easily accessible page on
its website, containing such consumer information as
well as any links to other websites the Commission
determines to be appropriate.
``(7) Public service announcements.--Each day from July 17,
2009, through February 17, 2009, each television broadcast
licensee or permittee shall broadcast 2 30-second public
service announcements at such times as the Commission may
require notifying the public of the digital transition and
containing the address of the website provided by the
Commission under paragraph (6) and such additional consumer
information as the Commission may require, including the
consumer information described in paragraph (5).
``(8) Penalty.--In addition to any other civil or criminal
penalty provided by law, the Commission shall issue civil
forfeitures for violations of the requirements of this
subsection in an amount equal to not more than 3 times the
amount of the forfeiture penalty established by section
503(a)(2)(A).
``(9) Sunset.--The requirements of this subsection shall
cease to apply to manufacturers and retailers on April 1, 2009,
unless the Commission determines that the information required
to be displayed under this subsection should continue to be
displayed in the public interest.''.
(b) DTV Working Group on Consumer Education, Outreach, and
Technical Assistance.--
(1) In general.--Within 60 days after the date of enactment
of this Act, the Federal Communications Commission shall
establish an advisory committee, to be known as the DTV Working
Group, to consult with State and local governments, providers
of low income assistance programs, educational institutions,
and community groups to promote consumer outreach and to
provide logistical assistance to consumers, including converter
box delivery and installation.
(2) Membership.--The Commission shall appoint to the DTV
Working Group representatives of groups involved with the
transition to digital television, including the Commission, the
National Telecommunications and Information Administration,
other Federal agencies, television broadcasters, multichannel
video programming distributors, consumer electronics
manufacturers and manufacturers of peripheral devices,
broadcast antenna and tuner manufacturers, retail providers of
consumer electronics equipment, consumers, and public interest
groups (including the American Association of Retired Persons).
Members of the DTV Working Group shall serve without
compensation and shall not be considered Federal employees by
reason of their service on the advisory committee.
(3) Purposes.--The purposes of the DTV Working Group are--
(A) to advise the Commission in creating and
implementing a national plan to inform consumers about
the digital television transition as required by
section 330(d)(6) of the Communications Act of 1934 (47
U.S.C. 330(d)(6));
(B) to ensure that the Commission's national plan
includes, at a minimum--
(i) recommended procedures for public
service announcements by broadcasters and
multichannel video programming distributors,
toll-free information hotlines, retail displays
or notices, such as making available at the
point of sale for television sets and equipment
designed to receive over-the-air broadcast
television signals a sufficient supply of free
handbills containing that consumer information;
and
(ii) recommended procedures for direct
mail, billboards, and community events related
to the digital television transition;
(C) to ensure that the Commission's national plan
includes a requirement that all licensed broadcasters
in a designated market area submit a joint plan to the
Commission addressing the public outreach and public
service announcement requirements required by this
title to inform consumers in those areas of the
transition to digital television that--
(i) includes a description of how each
broadcaster will fulfill the public service
announcement requirements required under
section 330(d)(7) of the Communications Act of
1934 (47 U.S.C. 330(d)(7));
(ii) includes market research by each
broadcaster regarding projected consumer demand
for converter boxes in their designated market
area; and
(iii) will be shared with retailers inside
their designated market area so that such
retailers may stock the appropriate amount of
converter boxes to meet the needs of consumers
within each designated market area; and
(D) to provide to the Commission a DTV Progress
Report that reflects ongoing and planned efforts by the
private sector, both nationally and in various
television broadcast markets, to inform consumers about
the digital transition and to minimize potential
disruption to consumers attributable to the transition
to digital broadcasting.
(c) Requirements To Promote Sale of Digital Televisions and
Converter Boxes.--
(1) Digital tuner mandate.--Part I of title III (47 U.S.C.
301 et seq.) is amended by inserting after section 303 the
following:
``SEC. 303A. REQUIREMENTS FOR DIGITAL TELEVISION SETS AND CERTAIN OTHER
EQUIPMENT.
``(a) In General.--It is unlawful to sell, or offer for sale, at
retail after March 1, 2007, a television set with a picture screen 13
inches or greater in size (measured diagonally) unless that television
set is equipped with a tuner capable of receiving and decoding digital
signals.
``(b) Retail Defined.--In this section, the term `retail' means the
first sale for purposes other than resale.''.
(2) Commission not to change schedule.--The Federal
Communications Commission may not revise the digital television
reception capability implementation schedule under section
15.117(i) of its regulations (47 C.F.R. 15.117(i)) except to
conform that section to the requirements of section 303A of the
Communications Act of 1934.
(3) Converter boxes.--The Commission shall set the energy
standards for converter boxes. Notwithstanding any other
provision of law, those standards shall govern the energy
standards for converter boxes sold for use in the United
States. This paragraph shall not apply after May 17, 2009.
(d) Downconversion From Digital Signals to Analog Signals.
(1) Digital-to-analog conversion.--Section 614(b)(4) (47
U.S.C. 534(b)(4)) is amended--
(A) by redesignating subparagraph (B) as
subparagraph (I); and
(B) by inserting after subparagraph (A) the
following:
``(B) Digital video signal.--With respect to any
television station that is transmitting broadcast
programming exclusively in the digital television
service in a local market, a cable operator of a cable
system in that market shall carry any digital video
signal requiring carriage under this section and
program-related material in the digital format
transmitted by that station, without material
degradation, if the licensee for that station relies on
this section or section 615 to obtain carriage of the
digital video signal and program-related material on
that cable system in that market.
``(C) Multiple formats permitted.--A cable operator
of a cable system may offer the digital video signal
and program-related material of a local television
station described in subparagraph (A) in any analog or
digital format or formats, whether or not doing so
requires conversion from the format transmitted by the
local television station, so long as--
``(i) the cable operator offers the digital
video signal and program-related material in
the converted analog or digital format or
formats without material degradation; and
``(ii) also offers the digital video signal
and program-related material in the manner or
manners required by this paragraph.
``(D) Transitional conversions.--Notwithstanding
the requirement in subparagraph (B) to carry the
digital video signal and program-related material in
the digital format transmitted by the local television
station, but subject to the prohibition on material
degradation, until February 17, 2014--
``(i) a cable operator--
``(I) shall offer the digital video
signal and program-related material in
the format or formats necessary for
such stream and material to be viewable
on analog and digital televisions; and
``(II) may convert the digital
video signal and program-related
material to standard-definition digital
format in lieu of offering it in the
digital format transmitted by the local
television station;
``(ii) notwithstanding clause (i), a cable
operator of a cable system with an activated
capacity of 550 megahertz or less--
``(I) shall offer the digital video
signal and program-related material of
the local television station described
in subparagraph (A), converted to an
analog format; and
``(II) may, but shall not be
required to, offer the digital video
signal and program-related material in
any digital format or formats.
``(E) Location and method of conversion.--A cable
operator of a cable system may perform any conversion
permitted or required by this paragraph at any
location, from the cable head-end to the customer
premises, inclusive.
``(F) Conversions not treated as degradation.--Any
conversion permitted or required by this paragraph
shall not, by itself, be treated as a material
degradation.
``(G) Carriage of program-related material.--The
obligation to carry program-related material under this
paragraph is effective only to the extent technically
feasible.
``(H) Definition of standard-definition format.--
For purposes of this paragraph, a stream shall be in
standard definition digital format if such stream meets
the criteria for such format specified in the standard
recognized by the Commission in section 73.682 of its
rules (47 C.F.R. 73.682) or a successor regulation.''.
(2) Tiering.--
(A) Amendment to communications act.--Clause (iii)
of section 623(b)(7)(A) (47 U.S.C. 543(b)(7)(A)(iii))
is amended to read as follows:
``(iii) Any analog signal and any digital
video signal of any television broadcast
station that is provided by the cable operator
to any subscriber, except a signal which is
secondarily transmitted by a satellite carrier
beyond the local service area of such
station.''.
(B) Effective date.--With respect to any television
broadcast station, this subsection and the amendments
made by this paragraph shall take effect on the date
the broadcaster ceases transmissions in the analog
television service.
(3) Material degradation.--Section 614 (47 U.S.C. 534) is
amended--
(A) by redesignating subsection (h) as subsection
(i); and
(B) by inserting after subsection (g) the
following:
``(i) Material Degradation.--For purposes of this section and
section 615, transmission of a digital signal over a cable system in a
compressed bitstream shall not be considered material degradation as
long as such compression does not materially affect the picture quality
the consumer receives.''.
SEC. 702. DIGITAL STREAM REQUIREMENT FOR THE BLIND.
(a) Rules Reinstated.--The video description rules of the Federal
Communications Commission 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), shall, 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), be considered to be authorized and ratified by law.
(b) Continuing Authority of Commission.--The Federal Communications
Commission--
(1) shall, within 45 days after the date of enactment of
this Act, republish its video description rules contained in
the report and order Implementation of Video Description of
Video Programming, Report and Order, 15 F.C.C.R. 15,230 (2000);
(2) may amend, repeal, or otherwise modify such rules; and
(3) shall initiate a proceeding within 120 days after the
date of enactment of this Act, and complete that proceeding
within 1 year, to consider incorporating accessible information
requirements in its video description rules.
(c) 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. 703. STATUS OF INTERNATIONAL COORDINATION.
Until the date on which the international coordination with Canada
and Mexico of the DTV table of allotments is complete (as determined by
the Federal Communications Commission), the Federal Communications
Commission shall submit a report every 6 months on the status of that
international coordination to the Senate Committee on Commerce,
Science, and Transportation and the House of Representatives Committee
on Energy and Commerce.
TITLE VIII--PROTECTING CHILDREN
SEC. 801. VIDEO TRANSMISSION OF CHILD PORNOGRAPHY.
Section 621 (47 U.S.C. 541) is amended by adding at the end the
following:
``(j) Child Pornography.--
``(1) In general.--A video service provider authorized to
provide video service in a local franchise area shall comply
with the regulations on child pornography promulgated pursuant
to paragraph (2).
``(2) Regulations.--Not later than 180 days after the date
of enactment of the Communications, Consumer's Choice, and
Broadband Deployment of 2006, the Commission shall promulgate
regulations to require a video service to prevent the
distribution of child pornography (as such term is defined in
section 254(h)(7)(F)) over its network.''.
TITLE IX--INTERNET NEUTRALITY
SEC. 901. NEUTRAL NETWORKS FOR CONSUMERS.
(a) In General.--Beginning 1 year after the date of enactment of
this Act, the Federal Communications Commission shall report annually
to the Senate Committee on Commerce, Science, and Transportation and
the House of Representatives Committee on Energy and Commerce for 5
years regarding--
(1) the developments in Internet traffic processing,
routing, peering, transport, and interconnection;
(2) how such developments impact the free flow of
information over the public Internet and the consumer
experience using the public Internet;
(3) business relationships between broadband service
providers and applications and online user services; and
(4) the development of and services available over public
and private Internet offerings.
(b) Determinations and Recommendations.--If the Commission
determines that there are significant problems with any of the matters
described in subsection (a) the Commission shall make such
recommendations in its next annual report under subsection (a) as it
deems necessary and appropriate to ensure that consumers can access
lawful content and run Internet applications and services over the
public Internet subject to the bandwidth purchased and the needs of law
enforcement agencies. The Commission shall include recommendations for
appropriate enforcement mechanisms but may not recommend additional
rulemaking authority for the Commission.
TITLE X--MISCELLANEOUS
SEC. 1001. COMMISSIONER PARTICIPATION IN FORUMS AND MEETINGS.
(a) In General.--Section 5 (47 U.S.C. 155) is amended by adding at
the end the following:
``(f) Meetings.--
``(1) Attendance required.--Notwithstanding 552b of title
5, United States Code, and section 4(h) of this Act, the
Commission may conduct a meeting that is not open to the public
if the meeting is attended by--
``(A) all members of the Commission; or
``(B) at least 1 member of the political party
whose members are in the minority.
``(2) Voting prohibited.--The Commission may not vote or
make any final decision on any matter pending before it in a
meeting that is not open to the public, unless--
``(A) otherwise authorized by section 552b(b) of
title 5, United States Code; or
``(B) the Commission has moved its operations
outside Washington, D.C., pursuant to a Continuity of
Operations Plan.
``(3) Publication of summary.--If the Commission conducts a
meeting that is not open to the public under this section, the
Commission shall promptly publish an executive summary
describing the matters discussed at that meeting after the
meeting ends, except for such matters as the Commission
determines may be withheld under section 552b(c) of title 5,
United States Code. This paragraph does not apply to a meeting
described in paragraph (4).
``(4) Quorum unnecessary for certain meetings.--Neither
section 552b of title 5, United States Code, nor paragraph (1)
of this subsection applies to--
``(A) a meeting of 3 or more members of the
Commission with the President, any person employed by
the Office of the President, any official of a Federal,
State, or local agency, a Member of Congress or his
staff;
``(B) the attendance, by 3 or more members of the
Commission, at a forum or conference to discuss general
communications issues; or
``(C) a meeting of 3 or more members of the
Commission when the Continuity of Operations Plan is in
effect and the Commission is operating under the terms
of that Plan.
``(5) Savings clause.--Nothing in this subsection shall be
construed to prohibit the Commission from doing anything
authorized by section 552b of title 5, United States Code.''.
SEC. 1002. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act,
the amendments made by this Act, and the application of such provisions
to any person or circumstance shall not be affected thereby.
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