[Congressional Record Volume 149, Number 87 (Friday, June 13, 2003)]
[Senate]
[Pages S7882-S7884]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 1264. A bill to reauthorize the Federal Communications Commission, 
and for other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. McCAIN. Mr. President, today I am introducing the Federal 
Communications Commission Reauthorization Act of 2003. This legislation 
is designed to reauthorize the Federal Communications Commission, FCC 
or Commission, so that it may continue to carry forth its charge to 
ensure interference-free communication on interstate and international 
radio, television, wire, satellite, and cable communications. This 
independent agency has not been reauthorized since 1991.
  The FCC is responsible for a wide range of duties, including 
establishing regulatory policies that promote competition, innovation, 
and investment in broadband services; ensuring that a comprehensive and 
sound national competitive framework for communications services 
exists; encouraging the best use of spectrum domestically and 
internationally; and providing leadership for the rapid restoration of 
the Nation's communications infrastructure in the event of disruption.
  This bill would reauthorize the Commission through fiscal year 2007. 
It would require that all application and regulatory fees paid to the 
Commission be deposited with the Commission subject to Appropriations.
  The legislation also would authorize the Commission to allocate 
sufficient funds to be used for an audit of the e-rate program to 
determine the specific fraud or abuse that has occurred during the 
operation of the program. Serious allegations of fraud in the operation 
of the e-rate fund have been raised in recent months, and we should 
provide the Commission adequate resources to ensure that e-rate funds 
are being used for the purposes intended. The Commission would be 
required to transmit a report of its findings and conclusions to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Energy and Commerce on the anniversary 
of the Act's enactment for each year between 2004 and 2007.
  Further, this bill would clarify the Commission's review of its media 
ownership rules. Specifically, the bill sets forth the timing and the 
standard the FCC will use for reviewing its broadcast ownership rules. 
Currently, the FCC is required to review its broadcast ownership rules 
every 2 years. The bill lengthens the duration between reviews from 2 
years to 5 years. At a recent hearing, all five FCC Commissioners 
recommended this change.
  The legislation also would clarify the actions the FCC may take 
during its media ownership reviews. Courts have found the current 
review standard to carry ``with it a presumption in favor of repealing 
or modifying ownership rules'' as part of ``a process of 
deregulation.'' This bill modifies the review standard to specifically 
allow the FCC to repeal, strengthen, limit, or retain media ownership 
rules if it determines such changes are in the public interest. At a 
recent hearing, several of the FCC Commissioners endorsed this change.
  The bill would increase the Commission's ability to enforce the 
Communications Act of 1934, the 1934 Act, by raising the statutory cap 
on Commission fines and forfeitures by a factor of ten. The Commission 
has sought this increased enforcement ability to ensure communications 
providers do not accept Commission fines as a ``cost of doing 
business.'' The bill also increases the statute of limitations for 
violations of FCC rules or regulations from one year to two years. The 
legislation also allows the Commission to assess fines against direct 
broadcast satellite (DBS) operators for violations of the 
Communications Act in the same manner that the Commission may assess 
fines against broadcasters and cable operators.
  The bill would further clarify that a party injured by a common 
carrier's violation of FCC rules or orders may recover damages for such 
injury in an action before the FCC or before a United States District 
Court. The need for this clarification is underscored by the recent 
decision by the United States Court of Appeals or the Second Circuit in 
Conboy v. AT&T Corp. Moreover, the new section would allow for the 
recovery of attorneys' fees in complaints filed either in district 
court or at the FCC.
  The bill also would allow the Commission to seize broadcasting 
equipment where one engages in malicious interference to radio 
communications. This type of behavior is particularly egregious when 
parties attempt to maliciously interfere with public safety 
frequencies.
  Furthermore, the bill would ensure that valuable spectrum does not 
lie fallow unnecessarily. It precludes a successful bidder in a 
spectrum auction from using bankruptcy to avoid its obligation to pay 
for its spectrum license. The bill also establishes an office within 
the Commission for the recording and perfecting of security interests 
related to licenses.
  It also would ban any payment or reimbursement to the FCC of travel 
costs for FCC officials or staff from a nongovernmental sponsor of a 
convention, conference, or meeting. Recent reports indicate that during 
the last eight years, FCC officials and staff have taken more than 
2,500 trips paid for by the industries they regulate. Although this is 
perfectly legal and it is often appropriate for FCC officials and staff 
to attend such conventions, conferences, or meetings, it should be 
without the appearance of impropriety. Therefore, the bill authorizes 
the Commission sufficient funds to pay for their own travel costs in 
the future.
  The bill would impose a one year lobbying ban on high-level FCC 
staffers who leave the FCC's employment.
  Finally, the bill contains language in response to a recent court 
case before the D.C. Circuit Court of Appeals, which held that the 
Commission lacked jurisdiction to promulgate regulations necessary to 
require video descriptions of television programming to assist those 
who are visually impaired. This section would provide the FCC such 
authority.
  Reauthorizing the FCC is important so the agency may continue to 
successfully carry out its many responsibilities. I look forward to 
working on this important legislation and I hope that my colleagues 
will agree to join me in expeditiously moving this reauthorization 
through the legislative process.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1264

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

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

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

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--Section 6 (47 U.S.C. 156) is amended--
       (1) by striking subsections (a), (b), and (c);
       (2) by redesignating subsection (d) as subsection (c);
       (3) by inserting ``Regulatory Fees Offset.--'' before 
     ``Of'' in subsection (c), as redesignated; and
       (3) by inserting before subsection (c), as redesignated, 
     the following:
       ``(a) In General.--There are authorized to be appropriated 
     for the administration of this Act by the Commission 
     $281,289,000 for fiscal year 2004, $299,500,000 for fiscal 
     year 2005, $318,982,000 for fiscal year 2006, and

[[Page S7883]]

     $334,931,000 for fiscal year 2007, to carry out this Act 
     including amounts necessary for unreimbursed travel, together 
     with such sums as may be necessary for increases resulting 
     from adjustments in salary, pay, retirement, other employee 
     benefits required by law, and other nondiscretionary costs, 
     for each of such years.
       ``(b) Staffing Levels.--The Commission may hire and 
     maintain an adequate number of full time equivalent staff, to 
     the extent of the amounts authorized by subsection (a), 
     necessary to carry out the Commission's powers and duties 
     under this Act.''.
       (b) Deposit of Application Fees.--Section 8(e) is amended 
     to read as follows:
       ``(e) Deposit of Collections.--Moneys received from fees 
     established under this section shall be deposited as an 
     offsetting collection in, and credited to, the account 
     providing appropriations to carry out the functions of the 
     Commission.''.

     SEC. 3. AUDITS AND INVESTIGATIONS OF E-RATE BENEFICIARY 
                   COMPLIANCE WITH PROGRAM REQUIREMENTS.

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

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

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

     SEC. 5. FCC ENFORCEMENT ENHANCEMENTS.

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

     ``SEC. 206. LIABILITY OF CARRIERS FOR DAMAGES.

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

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

       Section 4 (47 U.S.C. 154) is amended by adding at the end 
     the following:
       ``(p) Application with Bankruptcy Laws.--
       ``(1) In general.--The bankruptcy laws shall not be 
     applied--
       ``(A) to avoid, discharge, stay, or set-off any pre-
     petition debt obligation to the United States arising from an 
     auction under this Act,
       ``(B) to stay the payment obligations of the debtor to the 
     United States if such payments were a condition of the grant 
     or retention of a license under this Act, or
       ``(C) to prevent the automatic cancellation of licenses for 
     failure to comply with any monetary or non-monetary condition 
     for holding any license issued by the Commission, including 
     automatic cancellation of licenses for failure to pay a 
     monetary obligation of the debtor to the United States when 
     due under an installment payment plan arising from an auction 
     under this Act,

     except that, upon cancellation of a license issued by the 
     Commission, the United States shall have an allowed unsecured 
     claim for any outstanding debt to the United States with 
     respect to such canceled licenses, and that unsecured debt 
     may be recovered by the United States under its rights as a 
     creditor under title 11, United States Code, or other 
     applicable law.
       ``(2) Debtor to have no interest in proceeds of auction.--A 
     debtor in a proceeding under the bankruptcy laws shall have 
     no right or interest in any portion of the proceeds from an 
     auction of any license reclaimed by the Commission for 
     failure to pay a monetary obligation of the debtor to the 
     United States in connection with the grant or retention of a 
     license under this Act.
       ``(3) Security interests.--Notwithstanding any other 
     provision of law, the Commission may--
       ``(A) establish rules and procedures governing security 
     interests in licenses, or the proceeds of the sale of 
     licenses, issued by the Commission; and
       ``(B) establish an office within the Office of Secretary 
     for the recording and perfection of such security interests 
     without regard to otherwise applicable State law.
       ``(4) Bankruptcy laws defined.--In this subsection, the 
     term `bankruptcy laws' means title 11, United States Code, or 
     any otherwise applicable Federal or State law regarding 
     insolvencies or receiverships, including any Federal law 
     enacted or amended after the date of enactment of the FCC 
     Reauthorization Act of 2003 not expressly in derogation of 
     this subsection.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to cases and proceedings commenced on or after 
     the date of enactment of this Act.

     SEC. 7. BAN ON REIMBURSED TRAVEL EXPENSES.

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

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

       For purposes of section 207 of title 18, United States 
     Code, an individual serving in any of the following positions 
     at the Federal Communications Commission is deemed to be a 
     person described in section 207(c)(2)(A)(ii) of that title, 
     regardless of the individual's rate of basic pay:
       (1) Chief, Office of Engineering and Technology.
       (2) Director, Office of Legislative Affairs.
       (3) Inspector General, Office of Inspector General.
       (4) Managing Director, Office of Managing Director.
       (5) General Counsel, Office of General Counsel.

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       (6) Chief, Office of Strategic Planning and Policy 
     Analysis.
       (7) Chief, Consumer and Governmental Affairs Bureau.
       (8) Chief, Enforcement Bureau.
       (9) Chief, International Bureau.
       (10) Chief, Media Bureau.
       (11) Chief, Wireline Competition Bureau.
       (12) Chief, Wireless Telecommunications Bureau.

     SEC. 9. VIDEO DESCRIPTION RULES AUTHORITY.

       Notwithstanding the decision of the United States Court of 
     Appeals for the District of Columbia Circuit in Motion 
     Picture Association of America, Inc., et al, v. Federal 
     Communications Commission, et al (309 F. 3d 796, November 8, 
     2002), the Federal Communications Commission--
       (1) shall, within 90 days after the date of enactment of 
     this Act, reinstate its video description rules contained in 
     the report and order identified as Implementation of Video 
     Description of Video Programming, Report and Order, 15 
     F.C.C.R. 15,230 (2000); and
       (2) may amend, repeal, or otherwise modify such rules.

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