[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2359 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2359

   To establish minimum public interest requirements for multi-cast 
                      digital television channels.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2005

 Ms. Watson (for herself, Mr. Hinchey, Mr. Sanders, and Ms. Slaughter) 
 introduced the following bill; which was referred to the Committee on 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
   To establish minimum public interest requirements for multi-cast 
                      digital television channels.

    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 ``Digital Television Accountability 
and Governance Enhancement Act of 2005'' or the ``DTV-AGE Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The broadcast airwaves are an extremely valuable public 
        resource. If television broadcast licensees had to pay for 
        their access to spectrum, it could generate in excess of $750 
        billion for the public treasury. Research by the Federal 
        Communications Commission (FCC) has found that the typical 
        profit margin for a local broadcast station is around 40 
        percent--four to five times higher than the typical Fortune 500 
        company.
            (2) The Communications Act of 1934 requires the FCC and 
        broadcast licensees to promote the public interest. As public 
        trustees, over-the-air television broadcast licensees have been 
        granted the unique privilege of using a scarce public asset--
        the airwaves--for free in exchange for their promise to serve 
        the public interest, convenience and necessity.
            (3) In 1969, the Supreme Court declared that ``it is the 
        purpose of the First Amendment to preserve an uninhibited 
        marketplace of ideas in which truth will ultimately prevail, 
        rather than to countenance monopolization of the market,'' and 
        thus, it is ``the right of the viewers and listeners, not the 
        right of the broadcasters, which is paramount''.
            (4) Over the past two decades, deregulation in the 
        telecommunications sector has led to rapid consolidation of 
        media ownership. Five companies now own the broadcast networks, 
        control 90 percent of the top 50 cable networks, produce three-
        quarter of all prime time programming, and control 70 percent 
        of the prime time television market share.
            (5) The drastic media consolidation has greatly diminished 
        the television broadcast licensee's performance of public 
        interest obligation and its ability to foster diversity, 
        competition, and localism in the media market.
            (6) An October 2003 analysis of seven media markets shows 
        that just 0.4 percent of television programming is devoted to 
        local public affairs. By contrast, 14.4 percent is paid 
        programming such as infomercials, 9.9 percent is reality or 
        game shows and 7.9 percent is sporting events. In addition, 
        most of the local public affairs programming airs on weekend 
        mornings, at times with lower television viewership.
            (7) The percentage of independently produced pilots and new 
        series on the four national broadcast networks has declined 
        from 87.5 percent in 1990 to 22.5 percent in 2002.
            (8) A survey of evening news broadcasts of 44 local 
        affiliates of broadcasters in 11 markets prior to the 2004 
        election showed that only eight percent of such broadcasts 
        contained a story about a local candidate race. In contrast, 
        eight times more coverage went to stories about accidental 
        injuries, and 12 times more coverage to sports and weather. 
        Nineteen percent of the stories focused on voting issues such 
        as the location of polling stations, absentee ballot 
        information and reports on early voting efforts. Just under 
        five percent of the stories focused on local and statewide 
        ballot initiatives.
            (9) A study of the 2000 election found that 60 percent of 
        debates among gubernatorial, senatorial and congressional 
        candidates were not televised. Another 19 percent appeared only 
        on public or independent stations.
            (10) Local television broadcasters claim to have 
        contributed $9.6 billion worth of community service in 2003. 
        However, $5.6 billion of that came from public service 
        announcements, and an additional $2.3 billion came from 
        fundraisers for charitable causes. Among the public service 
        announcements, roughly one-quarter featured the stars of the 
        networks' own prime time shows, thereby advancing the networks' 
        own commercial interests.
            (11) Since the mid-1980s, Congress and the FCC have played 
        major roles in the development of digital television, which 
        provides sharper pictures, a wider screen, CD-quality sound, 
        better color rendition and simultaneous transmission of 
        multiple video programming in standard definition television 
        (SDTV) or a single program of high definition television 
        (HDTV). It allows the same kind of digitally-based services 
        offered by cable and satellite television providers and 
        provides a more efficient use of the radio-frequency spectrum 
        than traditional analog television, thereby conserving 
        bandwidth.
            (12) In 1997, the FCC decided to grant existing, full-power 
        television stations additional spectrum to facilitate the 
        transition from analog to digital television. The Balanced 
        Budget Act of 1997 set the deadline for such transition by 
        stating that ``a broadcast license that authorizes analog 
        television service may not be renewed to authorize such service 
        for a period that extends beyond December 31, 2006''.
            (13) In 2004, Congress passed the Intelligence Reform and 
        Terrorism Prevention Act of 2004, which included the sense of 
        Congress that ``Congress must act to pass legislation in the 
        first session of the 109th Congress that establishes a 
        comprehensive approach to the timely return of analog broadcast 
        spectrum as early as December 31, 2006'' and that any delay 
        will ``delay the ability of public safety entities to begin 
        planning to use this needed spectrum''.
            (14) As of March 10, 2005, there were 1,373 commercial and 
        public stations broadcasting digital signals in 211 markets, 
        representing about 86 percent of the nation's approximately 
        1,600 television stations. The 211 markets currently receiving 
        digital television transmissions cover over 99 percent of U.S. 
        television households.
            (15) In 1997, President Clinton established an Advisory 
        Committee on Public Interest Obligations of DTV Broadcasters, 
        to make recommendations on how DTV licensees should serve the 
        public interest in exchange for free access to digital 
        spectrum. The Committee submitted a set of ten recommendations 
        to the FCC, Congress and the Administration and the broadcast 
        industry in 1998.
            (16) On December 15, 1999, the FCC opened a Notice of 
        Inquiry proceeding to solicit public comment on public interest 
        obligations of TV broadcasters as they transition to DTV (MM 
        Docket No. 99-360). In September 2000, the FCC issued the DTV 
        Public Interest Form Notice of Proposed Rulemaking (NPRM) which 
        sought to require television broadcasters (both digital and 
        analog) to disclose on a quarterly standardized form how they 
        are serving the public interest (MM Docket No. 00-168).
            (17) After more than four years, the FCC has not taken 
        final action in those proceedings.
            (18) On September 9, 2004, the FCC adopted a Report and 
        Order addressing children's programming obligations for digital 
        television broadcasters. The FCC required amount of core 
        educational programming proportionally to the amount of 
        increased free video programming offered by the broadcaster on 
        digital multicast channels. The Order also concluded that 
        commercial limits apply to all digital programming directed at 
        children 12 years and under, whether the programming is 
        provided on a free or pay multicast channel.
            (19) Congress is currently considering legislative efforts 
        to address the December 31, 2006 deadline for reclaiming the 
        analog spectrum.
            (20) The transition to digital television offers a profound 
        opportunity to improve television broadcasters' service to the 
        public by enhancing the diversity of viewpoints, promoting 
        civic participation, expanding local and community programming, 
        and increasing children's programming.

SEC. 3. TERM OF LICENSE.

    (a) Amendment.--Section 307(c)(1) of the Communications Act of 1934 
(47 U.S.C. 307(c)(1)) is amended by striking ``8 years'' each place it 
appears and inserting ``3 years''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective with respect to any license granted by the Federal 
Communications Commission after the date of enactment of this Act.

SEC. 4. IMPLEMENTATION OF PUBLIC INTEREST STANDARDS.

    Subsection (d) of section 336 of the Communications Act of 1934 (47 
U.S.C. 309) is amended to read as follows:
    ``(d) Implementation of Public Interest Standard.--
            ``(1) Requirements necessary to license renewal.--Nothing 
        in this section shall be construed as relieving a television 
        broadcasting station from its obligation to serve the public 
        interest, convenience, and necessity. In the Commission's 
        review of any application for renewal of a broadcast license 
        for a television station that provides ancillary or 
        supplementary services, the television licensee shall establish 
        that all of its program services on the existing or advanced 
        television spectrum are in the public interest. Any violation 
        of the Commission rules applicable to ancillary or 
        supplementary services shall reflect upon the licensee's 
        qualifications for renewal of its license. Any station licensee 
        that uses advanced television spectrum to broadcast multiple 
        channels of programming in the digital television service shall 
        establish that the program services on such spectrum are in the 
        public interest by demonstrating compliance with the 
        requirements of paragraphs (2) and (3).
            ``(2) Programming obligations of multicasting stations.--
        Each broadcast television station licensee providing multiple 
        channels of programming in the digital television service 
        shall, in accordance with regulations prescribed by the 
        Commission under this subsection, provide the following:
                    ``(A) Public affairs requirement.--An amount of 
                qualifying local civic affairs programming or 
                qualifying local electoral affairs programming on its 
                primary channel equal to a total of at least 3 hours 
                per week, and, on the remainder of the multi-cast 
                digital channels, a total of at least 3 hours per week 
                of such programming multiplied by the number of such 
                remainder channels, except that the licensee shall have 
                the discretion to determine how to allocate such amount 
                of programming among such remainder non-primary 
                channels.
                    ``(B) Independent or locally produced 
                programming.--An amount of programming on its primary 
                channel that is independently produced or locally 
                produced programming equal to not less than 25 percent 
                of the programming aired during primetime hours on the 
                primary channel.
                    ``(C) Children's educational programming.--A 
                minimum of 3 hours per week of children's educational 
                programming on each of the primary and remaining multi-
                cast digital channels, in accordance with section 
                102(a) of the Children's Television Act of 1990, except 
                that the licensee shall have the discretion to 
                determine how to allocate such amount of programming 
                among the remaining multi-cast digital channels.
                    ``(D) Public hearings.--At least 2 public hearings 
                per year to ascertain the needs and interest of the 
                communities they serve, one of such hearings taking 
                place at least 2 months prior to the date of 
                application for license issuance or renewal.
                    ``(E) FCC reports.--A report quarterly to the 
                Commission on how the ascertainment of such needs and 
                interests has led to public interest programming in 
                accordance with this subsection, and describing the 
                number of hours and the programs or program segments 
                devoted to local civic affairs programming, independent 
                or locally produced programming, and children's 
                educational programming (as required by subparagraphs 
                (A), (B), and (C)). The report shall be made available 
                to the public and the Commission no later than 30 days 
                after the end of the quarter, by placing a copy in the 
                station's public file, posting a copy in the station's 
                website (if it has one), with a prominent and clearly 
                identified link on the home page of the website, and 
                filling it with the Commission.
            ``(3) Definitions.--As used in this subsection:
                    ``(A) Primary channel.--The term `primary channel' 
                means the over-the-air channel that the station 
                licensee designates or determines as the primary video 
                signal of that station for purposes of section 614 
                (must-carry).
                    ``(B) Qualifying local civic affairs programming.--
                The term `qualifying local civic affairs programming' 
                means local civic programming that is designed to 
                provide the public with information about local issues. 
                Local civic programming includes broadcasts of 
                interviews with, or statements by, elected or appointed 
                officials and relevant policy experts on issues of 
                importance to the community, government meetings, 
                legislative sessions, conferences featuring elected 
                officials, and substantive discussions of civic issues 
                of interest to local communities or groups.
                    ``(C) Qualifying local electoral affairs 
                programming.--The term `qualifying local electoral 
                affairs programming' means programming that consists of 
                candidate-centered discourse focusing on the local, 
                State, and Federal races for public offices to be 
                elected by a constituency within the licensee's 
                broadcast area. Local electoral affairs programming 
                includes broadcasts of candidate debates, interviews, 
                or statements, as well as substantive discussions of 
                ballot measures that will be put before the voters in a 
                forthcoming election. Programming that focuses on the 
                `horserace' aspects of an election does not qualify as 
                local electoral affairs programming. Programming that 
                is primarily concerned with the political strength or 
                viability of a candidate or ballot issue; that focuses 
                on a candidate or ballot issue's status in relation to 
                polling data, endorsements or fundraising totals; or 
                discusses an election in terms of who is winning or 
                losing is considered to be focused on such `horserace' 
                aspects.
                    ``(D) Exclusions from definitions.--Public service 
                announcements and paid political advertisements shall 
                not be treated as qualifying local civic affairs 
                programming or qualifying local electoral affairs 
                programming.
                    ``(E) Additional qualification requirements.--Local 
                civic and electoral affairs programming must meet the 
                following qualification requirements in order to be 
                counted towards the 3 hour minimums under paragraph 
                (2)(A):
                            ``(i) The programming must be aired between 
                        7:00 a.m. and 11:35 p.m., with at least 50 
                        percent of that programming being aired between 
                        5:00 p.m. and 11:35 p.m., Monday through 
                        Friday, and between 7:00 a.m. and 12:00 p.m., 
                        Saturday and Sunday mornings.
                            ``(ii) At least 75 percent of the required 
                        minimum must be `first-run programming' by the 
                        licensee. For purposes of this clause, `first-
                        run programming' means a program which has 
                        never before been distributed by a broadcast 
                        licensee and which will be distributed for the 
                        first time by the licensee.
                            ``(iii) A licensee holding multiple 
                        licenses within the same area (as defined by 
                        the Commission's rules permitting multiple 
                        ownership) may not fulfill its requirements by 
                        duplicating original `first run' programming on 
                        its stations.
                            ``(iv) Programming that is aired during 
                        regularly scheduled newscasts on the primary 
                        channel that otherwise meets the definition of 
                        qualifying local civic affairs programming or 
                        qualifying local electoral affairs programming 
                        may be counted towards the licensee's weekly 
                        minimum, up to 30 minutes per week.
                    ``(F) Independently produced or locally produced 
                programming.--
                            ``(i) The term `independently produced or 
                        locally produced programming' means programming 
                        produced by an entity not owned or controlled 
                        by an owner of a national television network.
                            ``(ii) If an owner of a national television 
                        network owns or controls more than a one-third 
                        financial interest in the program, acts as the 
                        distributor of such program in syndication, or 
                        owns the copyright in such program, the owner 
                        of a national television network shall be 
                        considered to be the producer of that program 
                        for the purposes of this section. A program 
                        cross-licensed by one network entity to another 
                        network entity shall not be considered 
                        independent or locally produced programming.
                            ``(iii) Programming that meets the 
                        definition of qualifying local civic or 
                        electoral affairs programming shall not be 
                        included as independently produced or locally 
                        produced programming under this 
                        subparagraph.''.

SEC. 5. COMMISSION ACTION REQUIRED.

    The FCC shall, consistent with the amendment made by section 4, 
within 9 months after the date of enactment of this Act--
            (1) issue a final decision in the Matter of Public Interest 
        Obligations of TV Broadcast Licensees, MM Docket No. 99-360;
            (2) issue a final decision in the Matter of Standardized 
        and Enhanced Disclosure Requirements for Television Broadcast 
        Licensee Public Interest Obligations, MM Docket No. 00-168; and
            (3) complete a rulemaking proceeding to determine how the 
        broadcast licensees may utilize distribution and promotion 
        mechanisms, such as personal video recorders, video-on-demand, 
        and electronic program guides, to make available and promote 
        local civic and electoral affairs programming.
                                 <all>