[Senate Report 108-428]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-428
_______________________________________________________________________

                                     

                                                       Calendar No. 816

                       THE SAVE LIVES ACT OF 2004

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2820




       DATE deg.December 7, 2004.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred eighth congress
                             second session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Rob Freeman, Deputy Staff Director
     Samuel Whitehorn, Democratic Staff Director and Chief Counsel
               Margaret Spring, Democratic Senior Counsel


                                                       Calendar No. 816
108th Congress                                                   Report
                                 SENATE
 2d Session                                                     108-428

======================================================================



 
                       THE SAVE LIVES ACT OF 2004

                                _______
                                

                December 7, 2004.--Ordered to be printed

                                _______
                                

       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 2820]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2820) to ensure the 
availability of certain spectrum for public safety entities by 
amending the Communications Act of 1934 to establish January 1, 
2009, as the date by which the transition to digital television 
shall be completed, and for other purposes, having considered 
the same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

  The purpose of the SAVE LIVES Act is to provide by January 
2009 public safety professionals, such as firefighters and 
police officers, with spectrum for wireless emergency 
communications and for other purposes. In order for this to 
occur, the SAVE LIVES Act would require television stations 
currently broadcasting on this spectrum to vacate by December 
31, 2008. The legislation would also authorize funding for 
grants to public safety organizations for training and new 
interoperable equipment and authorize the Department of 
Homeland Security's (DHS) SAFECOM program.

                          Background and Needs

  In 1997, responding to a request from the public safety 
community for more spectrum, Congress passed legislation 
providing public safety professionals with 24 megahertz (MHz) 
in the 700 MHz band. \1\ The Federal Communications Commission 
(FCC) responded by allocating the frequencies 764-776 MHz and 
794-806 MHz, broadcast television channels 63-64 and 68-69 
respectively, for public safety use after the broadcasters 
cease using this spectrum when the Nation transitions from 
analog to digital television.
---------------------------------------------------------------------------
    \1\ See Balanced Budget Act of 1997, P.L.105-33, Title III. See 
Also 47 U.S.C. 337(a)(1).
---------------------------------------------------------------------------
  Full use of spectrum in the 700 MHz band can be extremely 
helpful to public safety organizations given the spectrum's 
propagation characteristics. Signals sent over these 
frequencies can penetrate walls, can travel great distances and 
can assist multiple jurisdictions in deploying interoperable 
communications systems.
  There are over 50,000 public safety agencies, which include 
2.5 million of the Nation's first responders (such as 
firefighters, police officers, and ambulance services) and a 
number of local, State, Federal--and in some cases--regional 
authorities. Communications, often wireless, are vital to these 
agencies' effectiveness and to the safety of their members and 
the public. The Association of Public Safety Communications 
Officials (APCO) argues that access to spectrum in the 700 MHz 
band is critical to reduce commercial transmission interference 
to emergency communications, to expand capacity, to help 
achieve implementation of high-speed services, to provide 
interoperability, and to promote technical standardization. 
Interoperability, also referred to as compatibility or inter-
connectivity, allows different systems to readily contact each 
other and provides needed redundancy.
  The lead program for fostering interoperability is SAFECOM, 
part of the DHS, while the National Telecommunications and 
Information Administration, part of the Department of Commerce, 
administers spectrum used by Federal entities. SAFECOM serves 
as the umbrella program within the Federal government to 
coordinate the efforts of local, tribal, State and Federal 
public safety agencies to promote effective, efficient and 
interoperable wireless communications. SAFECOM, however, has no 
authority over spectrum management decisions.
  The 9/11 Commission, in its final report, discussed the 
immediate need for ``the expedited and increased assignment of 
radio spectrum for public safety purposes.'' \2\ On September 
8, 2004, the Committee on Commerce, Science, and Transportation 
held a hearing on implementing the 9/11 Commission's 
recommendation. Chief Stephen T. Devine of the Missouri State 
Highway Patrol testified at the hearing on behalf of public 
safety organizations and this legislation:
---------------------------------------------------------------------------
    \2\ See http://www.9-11commission.gov/report/index.htm, page 397.

          The spectrum [allocated to public safety by Congress 
        in 1997, but currently being used for television 
        broadcasting] would nearly double the amount of 
        spectrum available for public safety mobile voice and 
        data communications * * *. Thus, Congress needs to 
        change existing law to establish a firm date for 
        nationwide access to this spectrum. State and local 
        governments need a firm date so they can proceed with 
        planning, funding, and construction of new radio 
        systems, safe in the knowledge that the spectrum will 
        be there when the systems are ready to be deployed.

                          Legislative History

  On September 8, 2004, Senator McCain introduced the SAVE 
LIVES Act, a bill to ensure the availability of certain 
spectrum for public safety, and for other purposes. That same 
day, the Senate Commerce, Science, and Transportation Committee 
held a hearing to review the 9/11 Commission's recommendation 
that Congress provide public safety organizations with spectrum 
on an expedited basis for wireless emergency communications 
systems.
  On September 22, 2004, the Committee held an executive 
session at which the SAVE LIVES Act was considered. The bill 
was amended by Senators Burns and Lautenberg and then ordered 
reported.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

S. 2820--SAVE LIVES Act

    Summary: S. 2820 would amend federal laws governing the use 
of the electromagnetic spectrum by public safety agencies and 
television broadcasters. The bill would appropriate up to $1 
billion on subsidize consumer purchases of certain television 
products. It also would authorize the appropriation of $117 
million in funding over the 2005-2009 period for programs aimed 
at improving the interoperability of radio systems used by 
public safety agencies.
    CBO estimates that enacting the bill would increase direct 
spending by $500 million over the 2005-2009 period and another 
$500 million thereafter. CBO estimates that implementing the 
legislation would add $83 million to discretionary spending 
over the 2005-2009 period, assuming appropriation of the 
authorized amounts. Enacting S. 2820 would not affect revenues.
    S. 2820 contains intergovernmental mandates as defined in 
the Unfunded Mandates Reform Act (UMRA) because it would 
require seven public broadcasting stations to vacate their 
current television channels by January 1, 2008. CBO estimates, 
however, that the associated costs to state, local, and tribal 
governments would be small and would not exceed the threshold 
established in UMRA ($60 million in 2004, adjusted annually for 
inflation).
    S. 2820 would impose private-sector mandates as defined in 
UMRA on television broadcasters and manufacturers, importers, 
and retailers of equipment capable of receiving analog 
broadcast television signals. The bill would increase the local 
and public affairs requirements for holders of broadcast 
licenses. It also would require television broadcasters to 
vacate certain channels by January 1, 2008. Finally, the bill 
would require certain manufacturers, importers and retailers to 
place labels on their equipment regarding the end of over-the-
air broadcasts of analog television signals. Based on 
information from the industry and the Federal Communications 
Commission (FCC), CBO expects that the aggregate direct cost to 
comply with those mandates would exceed the annual threshold 
established by UMRA for private-sector mandates would exceed 
the annual threshold established by UMRA for private-sector 
mandates ($120 million in 2004, adjusted annually for 
inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2820 is shown in the following table. 
The costs of this legislation fall within budget functions 370 
(commerce and housing credit) and 750 (administration of 
justice).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in million of dollars--
                                                                    --------------------------------------------
                                                                       2005     2006     2007     2008     2009
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Estimated Budget Authority.........................................        0        0        0    1,000        0
Estimated Outlays..................................................        0        0        0      150      350

                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level................................................       22       23       23       24       25
Estimated Outlays..................................................        3       13       20       23       24
----------------------------------------------------------------------------------------------------------------

    Basis of Estimate: For this estimate, CBO assumes that the 
bill will be enacted in calendar year 2004 and that the 
authorized amounts will be appropriated near the start of each 
fiscal year. Outlay estimates are based on spending patterns of 
similar programs. CBO estimates that enacting S. 2820 would 
increase direct spending by $1 billion over the next 10 years, 
but that spending would not begin until 2008. Discretionary 
spending also would increase by $83 million over the 2005-2009 
period, assuming appropriation of the authorized amounts.

Direct spending

    S. 2820 would appropriate up to $1 billion of the proceeds 
from auctioning certain spectrum for a new program to subsidize 
certain consumer purchases of digital television products. 
Under this bill, proceeds from auctions of licenses to use 
certain frequencies now used by television broadcasters would 
be deposited in a new Digital Transition Consumer Assistance 
Fund. The bill would direct the Secretary of Commerce to spend 
up to $1 billion of the money in that fund to assist households 
in purchasing equipment or services that would enable them to 
receive digital rather than analog television signals. Under 
current law, the Federal Communications Commission is supposed 
to auction those frequencies before its auction authority 
expires and deposit the proceeds in the Treasury.
    CBO estimates that $1 billion would become available to the 
new fund in 2008 and that it would be spent over the following 
six years. This estimate reflects CBO's baseline assumption 
that auctions of the affected television frequencies are likely 
to occur in fiscal year 2007 (the year the FCC's auction 
authority expires under current law) and that proceeds would be 
deposited by 2008. CBO expects that the department would spend 
the entire $1 billion authorized for the new program, as shown 
in the table below, given the large number of households that 
currently lack access to digital television signals.

----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                   2005    2006    2007    2008    2009    2010    2011    2012    2013    2014
----------------------------------------------------------------------------------------------------------------
                                   DIGITAL TRANSITION CONSUMER ASSISTANCE FUND

Estimated Outlays...............       0       0       0     150     350     200     150     100      50       0
----------------------------------------------------------------------------------------------------------------

Spending subject to appropriation

    S. 2820 would authorize funding for two new programs to 
enhance the interoperability of communications systems used by 
public safety agencies. The bill would authorize a new research 
and development initiative at the Department of Homeland 
Security (DHS) on systems, standards, and a strategic plan for 
interoperable communication systems. The authorized amounts 
range from $22 million in 2005 to $25 million in 2009 and would 
total $117 million over the 2005-2009 period. Based on 
experience with similar activities, CBO estimates that outlays 
for these programs would total $83 million over the 2005-2009 
period.
    The bill also would authorize DHS to assist state and local 
first-responder agencies to acquire and deploy interoperable 
communications systems. Funding for this program would be 
subject to appropriation and limited to the amounts in the 
Digital Transition Consumer Assistance Fund that are in excess 
of the amounts spent by the Department of Commerce to assist 
households in converting form analog to digital television. 
Because the Commerce program is likely to take several years to 
implement, CBO expects that grants for first-responders would 
not be made until after 2009.
    Finally, S. 2820 would direct various agencies to prepare 
reports and implement various rulemaking proceedings. Based on 
information from the Office of Management and Budget and 
affected agencies, CBO estimates that the cost of those 
activities would not be significant.
    Estimated impact on state, local, and tribal governments: 
S. 2820 contains an intergovernmental mandate as defined in 
UMRA because it would require seven public broadcasting 
stations to vacate their current television channels by January 
1, 2008, more quickly than under current law. Based on 
information from industry sources and the FCC, CBO estimates 
that stations affected by the bill would face costs totaling no 
more than $2 million per station depending on the television 
market in which they currently operate, possible lost 
contributions from members who are no longer able to receive 
the station signal, and the adjustments to their broadcasting 
technology that whey would be required to make.
    Section 11 also would require the FCC to develop new 
guidelines for programs that originate locally. However, based 
on information from the Corporation for Public Broadcasting, 
CBO estimates that the costs of the new guidelines to public 
television stations would be minimal. The aggregate costs of 
the mandate would thus not exceed the threshold established in 
UMRA ($60 million in 2004, adjusted annually for inflation).
    Estimated impact on the private sector: S. 2820 contains 
private-sector mandates as defined in UMRA that would affect 
television broadcasters and manufacturers, importers, and 
retailers of equipment capable of receiving analog broadcast 
television signals. The bill would impose mandates by:
           Requiring television broadcasters to 
        increase the amount of local and public affairs 
        programming;
           Requiring television broadcasters to vacate 
        certain channels by January 1, 2008; and
           Requiring certain manufacturers, importers, 
        and retailers to post notices on their equipment 
        regarding the termination date for over-the-air 
        broadcasts of analog television signals.
    Based on information from the industry and the FCC, CBO 
estimates that the aggregate direct cost to comply with those 
mandates would exceed the annual threshold established by UMRA 
for private-sector mandates ($120 million in 2004, adjusted 
annually for inflation). CBO cannot estimate the total cost of 
mandates in the bill because some of the requirements 
established by the bill would depend on future regulatory 
action for which information is not available. However, CBO 
estimates that the cost associated with increasing the amount 
of local and public affairs programing that broadcast licensees 
would have to carry is likely to be above the UMRA threshold.

Minimum requirements for public interest programming

    Section 11 would direct the FCC to establish ``minimum 
quantitative guidelines for locally originating programming, 
local electoral and public affairs programming, and 
independently produced programming'' for television broadcast 
licensees. Under the bill, the FCC would have to consider the 
extent to which licensees have complied with those guidelines 
when reviewing an application for renewal of a digital 
broadcast license. The bill would impose a private-sector 
mandate by effectively increasing the requirements for renewal 
of television broadcast licences. Television stations already 
broadcast many public service announcements. Such announcements 
may not fulfill the requirements under the new guidelines, 
however, since those announcements are typically not locally 
oriented or locally produced nor do they typically deal with 
local electoral politics.
    To comply with the mandate, television stations would be 
required to reschedule or not transmit certain programs and 
produce other programs that qualify under the new guidelines. 
The cost of the mandate for licensees in the private sector 
would be:
           The loss in net advertising revenues (net 
        income) associated with rescheduling or not 
        transmitting some commercial programming, and
           The production costs of creating locally and 
        independently produced programming.
    Based on information from industry sources and the FCC, CBO 
expects that the cost of complying with the new guidelines 
would be greater than UMRA's annual threshold for private-
sector mandates.

Termination of broadcast television licenses for 24 megahertz of 
        spectrum

    Current law requires all television broadcasters to give up 
their analog spectrum by December 31, 2006. TV broadcasters can 
receive an unlimited extension of this deadline for several 
reasons; most notably, an extension may be granted to 
broadcasters until at least 85 percent of households in their 
service areas are capable of receiving a digital signal. Most 
experts agree that the 2006 deadline for vacating the analog 
channels will not be met by broadcasters in most markets under 
the current rules. The FCC has been considering a proposal that 
would require broadcasters to give up their analog broadcast 
licenses by January 1, 2009. Of the spectrum released as part 
of the transition to digital television, current law requires 
that 24 megahertz (4 channels) in the 700 megahertz band be 
turned over for use by public safety agencies.
    Section 3 of S. 2820 would require broadcasters operating 
on channels 63, 64, 68, and 69 to clear their analog and 
digital spectrum for public safety use by January 1, 2008. The 
bill would prohibit the FCC from extending broadcast licenses 
for those channels beyond the 2008 deadline. The bill also 
would authorize the FCC to modify or reassign the licenses of 
entities operating in the adjacent bands of the electromagnetic 
spectrum, if necessary, for the operations of the public safety 
services. The FCC could waive those requirements under the bill 
in two circumstances: first, if there is no substantive request 
by relevant first-responders in a designated market area, and 
second, ``to the extent necessary to avoid consumer disruption 
while maximizing the ability of relevant public safety entities 
to use the frequencies described * * *.''
    CBO is uncertain how the FCC would implement the provisions 
of section 3. The authority to waive the requirements of the 
bill under certain conditions increases the uncertainty about 
the scope of the mandate on broadcasters. The FCC could 
interpret the ``consumer disruption'' clause broadly and clear 
few, if any, channels before the general transition to digital 
television, which currently appears to be set for sometime in 
2009. Alternatively, the bill would allow the FCC to completely 
clear out the four relevant channels while permitting other 
television broadcasters to continue broadcasting on other 
analog channels through 2009.
    For purposes of this estimate, CBO assumes that the FCC 
would let the current 2006 deadline pass without clearing many 
of the channels, but that, following this bill, it would clear 
all the public safety channels by January 1, 2008. Further, CBO 
assumes that few of the adjacent channels would be cleared 
before the general transition to digital broadcasting. Clearing 
television broadcasters from the initial four channels could 
affect 31 analog broadcast stations and four digital broadcast 
stations in the United States, including Puerto Rico.
    For purposes of this estimate, CBO assumes that the FCC 
would require television stations to cease over-the-air 
broadcasts on the four designated channels, while still 
requiring their programs to be ``retransmitted'' to households 
by cable, satellite, and other multivideo services (enforcing 
the ``must-carry'' rules on cable companies and ``carry one, 
carry all'' rules on satellite companies). Some analysts have 
suggested this as a viable option since most households view 
television through cable, satellite, or other multivideo 
services. In this scenario, the cost to stations transmitting 
analog signals would end, but their over-the-air audience would 
also largely disappear. With the loss of that audience segment, 
the value of their advertising revenue would be reduced.
    Based on information from FCC and industry sources, CBO 
estimates that the costs to comply with the mandate facing the 
affected broadcasters would be small--substantially less than 
the UMRA threshold. The TV stations using the designated 
channels do not have large audiences and so do not command much 
in the way of advertising revenues. Some of the broadcasters 
might also face the additional costs of buying the necessary 
equipment to ensure that their signals get to the cable 
networks that are carrying their programs. However, most of the 
stations involved already have the digital transmitters in 
operation that can be used by the cable systems.

Warning requirements for analog equipment

    Section 9 would require manufacturers, importers, and 
retailers to display a label (or notice) on all television 
apparatus (mainly TV sets and VCRs) involved in interstate 
commerce and incapable of receiving digital television signals. 
A label (or printed notice, in the case of retailers) would 
state that the equipment ``will be incapable of displaying 
over-the-air television broadcast signals received after 
December 31, 2008, without the purchase of additional 
equipment.'' While requiring such a warning would appear to 
constitute an enforceable duty, the bill would not establish a 
2008 deadline for television broadcast conversion to digital 
signals, nor is there such a deadline in current law. Because 
such a label would be inconsistent with current law, CBO is 
uncertain how to measure the potential costs of compliance.
    Estimate prepared by: Federal Costs: Kathleen Gramp. Impact 
on State, Local, and Tribal Governments: Sarah Puro. Impact on 
the Private Sector: Philip Webre.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  The SAVE LIVES Act would have no additional regulatory impact 
and would result in no additional reporting requirements 
because the FCC is already taking action to move the Nation 
from analog to digital television.

                       NUMBER OF PERSONS COVERED

  The SAVE LIVES Act would impact a majority of the Nation's 
citizens by allowing public safety organizations to communicate 
with each other and adjacent communities' public safety 
organizations. This would provide citizens with a more secure 
community.

                            ECONOMIC IMPACT

  The SAVE LIVES Act would authorize funds to support grants to 
public safety organizations for new interoperable 
communications equipment and to assist citizens who may lose 
their ability to view some television stations. These funds 
would be raised from the auction of the returned analog 
television broadcast spectrum.

                                PRIVACY

  The SAVE LIVES Act is not expected to have an adverse effect 
on the personal privacy of any individuals that will be 
impacted by this legislation.

                               PAPERWORK

  The SAVE LIVES Act would have a minimal impact on current 
paperwork levels as the FCC is already managing the Nation's 
transition to digital television and accepting information from 
broadcast television licensees about their public interest 
programming.

                      Section-by-Section Analysis


Section 1. Short title

  Section 1 would provide that the act may be cited as ``The 
Spectrum Availability for Emergency-Response and Law-
Enforcement To Improve Vital Emergency Services Act,'' to be 
known as The SAVE LIVES Act.

Section 2. Findings

  Section 2 would provide Congress' findings in support of the 
legislation.

Section 3. Prevention of delay in the reassignment of 24 megahertz for 
        public safety purposes

  Section 3 would provide spectrum in the frequencies of 764-
776 megahertz and 794-806 megahertz, currently being used to 
broadcast television channels 63-64 and 68-69 respectively, to 
public safety organizations by January 1, 2008. This section 
would also allow the FCC to modify or re-assign licenses 
assigned to the frequencies surrounding these channels as 
necessary to permit operations by public safety organizations. 
However, the legislation would allow the FCC to waive this 
requirement if a public safety organization fails to make a 
bona fide request for the spectrum in the affected area and the 
removal of the broadcast television stations would create 
widespread consumer disruption because the station and the 
public safety organizations can not operate together on the 
spectrum due to interference.
  The Committee believes a bona fide request is one where a 
public safety organization can show that it has the need for 
the spectrum for interoperable emergency wireless 
communications, and has the funding and ability to begin using 
the spectrum upon the broadcaster vacating this spectrum. If 
there is disagreement as to whether the public safety 
organization has made a bona fide request, the Committee 
believes the parties should file with the FCC for a 
determination. Congress' intention is for this spectrum never 
to lay vacant, but rather to be used either for broadcasting or 
emergency wireless communications as needed in each community. 
It is also Congress' intention that in such a review public 
safety's need for the spectrum should be permanent.

Section 4. Study of public safety communications capabilities and needs 
        and spectrum uses

  Section 4 would require the FCC, in consultation with the 
Department of Homeland Security (DHS), to conduct a study to 
assess public safety's communications needs over the next ten 
years, including the need for additional spectrum, the ability 
of broadband and narrowband applications to be performed on 
public safety spectrum, and whether other first responders such 
as hospitals and health care workers should be included in an 
interoperable national communications system. Additionally, 
this section would ask the FCC to study the feasibility of 
reallocating some of the spectrum in the 700 MHz band for 
unlicensed broadband use. The FCC would be required to report 
back to the Senate Commerce, Science and Transportation 
Committee and House Energy and Commerce Committee within one 
year of the bill's enactment.

Section 5. Statutory authority for the Department of Homeland 
        Security's ``SAFECOM'' program

  Section 5 would authorize DHS' SAFECOM program for five 
years. SAFECOM serves as the umbrella program within the 
Federal government to coordinate the efforts of local, tribal, 
State and Federal public safety agencies to promote effective, 
efficient and interoperable wireless communications. In pursuit 
of this goal, SAFECOM has begun an inventory of all Federal 
grants to public safety organizations to better understand the 
amount of Federal funding to localities for emergency 
communications systems. This inventory is expected to be 
complete by October 2005.
  SAFECOM has also served as a consultant to many States and 
localities assisting with the development of their 
interoperable emergency communications systems. However, most 
importantly, SAFECOM has completed the development of critical 
standards for public safety communications equipment mandating 
interoperability, which is now included as a condition on all 
monies provided to localities by the Federal government for 
public safety communications equipment. This should provide for 
greater national interoperability and decreased costs for 
localities. Recognizing the need for a centralized office to 
handle all aspects of emergency communications planning, the 
Administration created SAFECOM and this section would recognize 
SAFECOM's necessity and authorize it.

Section 6. Grant program to provide enhanced interoperability of 
        communications for first responders

  Section 6 would authorize the Office for Domestic 
Preparedness in DHS to establish a grant program to assist 
State, local, tribal and regional public safety organization 
with the purchase and training costs of acquiring new wireless 
emergency communications system.

Section 7. Digital transition public safety communications grant and 
        consumer assistance fund

  Section 7 would authorize the appropriation of auction 
revenues from the sale of returned analog broadcast spectrum to 
be used for two programs. The first program, and the priority 
use for these funds, would allocate $1 billion to create a 
subsidy to limit the disruption of broadcast services to the 
public, especially for those who rely exclusively on over-the-
air broadcast television. This total cost of this subsidy 
program is not to exceed $1 billion. When the New America 
Foundation testified before the Senate Commerce Committee in 
June 2004, it testified that the cost to assist these 17.4 
million over-the-air consumers is slightly less than $1 billion 
dollars for equipment, assuming that digital-to-analog 
converter boxes retail for approximately $75 per box. At that 
same hearing, Motorola testified that they will introduce a 
digital-to-analog converter box for $67 per unit in 2005. 
Motorola calculated that such a price per unit would cap the 
cost of providing converters at less than $840 million 
nationwide to all over-the-air consumers. The same month of the 
hearing, Zenith Electronics announced that the company intends 
to retail digital-to-analog converter boxes at $50 to $70 per 
unit within four years.
  The Committee believes that the auction revenues should 
provide sufficient funds to cover the cost of equipment to 
ensure those who rely exclusively on over-the-air broadcast 
television will not have their television sets ``go dark'' on 
December 31, 2008. The New America Foundation expects the 
auction of the analog spectrum to yield $30-to-$40 billion in 
revenue to the Treasury, which equates roughly to less than 3 
percent of the Federal revenue likely from the auction of the 
analog television spectrum. In testimony before the Senate 
Commerce Committee, FCC Chairman Powell stated that some 
estimates go as high as $70 billion.
  After funding the consumer subsidy program, the legislation 
would authorize the appropriation of such sums as required to 
support a grant program to provide public safety organizations 
with emergency communications equipment so these groups can 
begin using the 24 MHz of spectrum. The amount would be 
determined by the Director of the Office of Management and 
Budget (OMB) and be based on a National Baseline 
Interoperability study currently being conducted by the DHS. 
This study is currently being performed to determine the 
precise amount that is already being provided by the Federal 
government to local and regional public safety organizations 
for the purchase of new communications equipment and for the 
funding of emergency communications training. There are 
numerous grant programs throughout the Federal government, 
however no agency has ever studied how many grants are being 
provided and for what amount. After this study is completed, as 
required by this legislation by December 31, 2005, the Federal 
government will best know how much money is needed to ensure 
that public safety organizations have the equipment necessary 
to immediately begin using the 700 MHz spectrum January 1, 
2009.
  At the September 8, 2004 hearing, a public safety 
representative testified, ``There also needs to be expanded 
funding for equipment, and more extensive planning and 
cooperation among public safety personnel at all levels of 
government. This includes local governments who must 
interoperate with their neighbors and with overlapping 
jurisdictions, regional authorities covering large metropolitan 
areas and sometimes crossing State borders, States through 
their State Interoperability Executive Committees (SIECs), and 
the Federal government.'' This section was drafted in response 
to such requests from public safety organizations and 
localities.

Section 8. Digital transition program

  Section 8 would establish the program to assist the over-the-
air viewers with the purchase or acquisition of digital-to-
analog converter devices, or other equipment or services to 
ensure they are able to view television after December 31, 
2008. The program would be developed by the Department of 
Commerce in conjunction with the OMB and established no later 
than January 1, 2008. This section would require the program to 
give priority to funding equipment or services to low income 
viewers, to offer these viewers technology neutral options and 
to be conducted at the lowest feasible administrative cost.

Section 9. Label requirement for analog television sets

  Section 9 would require, after September 30, 2005, the 
labeling of all analog television sets to communicate to buyers 
that the television sets will be incapable of displaying over-
the-air television broadcast signals after December 31, 2008 
without the purchase of additional equipment. This section 
would also require retailers to post the same information at 
their retail outlets.

Section 10. Report on consumer education program requirements

  Section 10 would require, within one year of enactment, that 
the Department of Commerce report back to the Senate Commerce, 
Sciend and Transportation Committee and House Energy and 
Commerce Committee any recommendations on an effective program 
to educate consumers about the digital television transition; 
the need, if any, for Federal funding, and the duration of such 
a program.

Section 11. FCC to issue decision in certain proceedings

  Section 11 would require the FCC to issue a decision by a 
date certain in some of its open DTV proceedings, including a 
proceeding on whether cable or satellite companies should be 
required to carry broadcasters' multi-cast channels, and a 
proceeding on what public interest obligations broadcasters 
should have for the digital television service. Additionally, 
this section would require the FCC to set forth specific 
guidelines on the amount of locally originated programming, 
local electoral and public affairs programming, and 
independently produced programming for television broadcast 
licensees. After setting forth such guidelines, the FCC is then 
required in its review of any application for renewal of a 
commercial or noncommercial digital television broadcast 
license, to consider the extent to which the applicant or 
licensee has complied with such guidelines.

Section 12. Definitions

  Section 12 sets forth definitions for this Act.

                      Rollcall Votes in Committee

  
  In accordance with paragraph 7(c) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following description of the record votes during its 
consideration of S. 1963:

  Senator Lautenberg offered an amendment to require the FCC to 
publish minimum quantitative guidelines for locally originated 
programming. By a rollcall vote of 13 yeas and 8 nays as 
follows, the amendment was adopted:
        YEAS--13                      NAYS--8
Ms. Snowe                           Mr. Stevens\1\
Mr. Fitzgerald                      Mr. Burns
Mr. Hollings                        Mr. Lott
Mr. Inouye\1\                       Mrs. Hutchison\1\
Mr. Rockefeller\1\                  Mr. Smith\1\
Mr. Breaux                          Mr. Ensign
Mr. Dorgan                          Mr. Allen\1\
Mr. Wyden                           Mr. Sununu\1\
Mrs. Boxer\1\
Mr. Nelson
Ms. Cantwell
Mr. Lautenberg
Mr. McCain

    \1\By proxy

  Mr. McCain, for himself and Mr. Hollings, offered a second 
degree amendment to the amendment proposed by Mr. Burns to 
modify the exception provided for the December 31, 2008, 
deadline. By a rollcall vote of 9 yeas and 13 nays, the 
amendment was not agreed to.
        YEAS--9                       NAYS--13
Mr. Brownback                       Mr. Stevens\1\
Mr. Fitzgerald                      Mr. Burns
Mr. Ensign                          Mr. Lott
Mr. Sununu\1\                       Mrs. Hutchison
Mr. Wyden                           Ms. Snowe
Mrs. Boxer                          Mr. Smith
Mr. Nelson                          Mr. Allen\1\
Mr. Lautenberg                      Mr. Hollings
Mr. McCain                          Mr. Inouye\1\
                                    Mr. Rockefeller\1\
                                    Mr. Breaux
                                    Mr. Dorgan
                                    Ms. Cantwell

    \1\By proxy

  Mr. Burns, for himself and Mr. Hollings, offered an amendment 
to prevent delay in the reassignment of 24 megaHertz for public 
safety purposes. By a rollcall vote of 13 yeas and 9 nays as 
follows, the amendment was adopted:
        YEAS--13                      NAYS--9
Mr. Stevens\1\                      Mr. Brownback
Mr. Burns                           Mr. Fitzgerald
Mr. Lott                            Mr. Ensign
Mrs. Hutchison                      Mr. Sununu
Ms. Snowe                           Mr. Wyden
Mr. Smith                           Mrs. Boxer
Mr. Allen\1\                        Mr. Nelson
Mr. Hollings                        Mr. Lautenberg
Mr. Inouye\1\                       Mr. McCain
Mr. Rockefeller\1\
Mr. Breaux
Mr. Dorgan
Ms. Cantwell

    \1\By proxy

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                     HOMELAND SECURITY ACT OF 2002


   TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

SEC. 302. RESPONSIBILITIES AND AUTHORITIES OF THE UNDER SECRETARY FOR 
                    SCIENCE AND TECHNOLOGY.

                             [6 U.S.C. 182]

  (a) In General._The Secretary, acting through the Under 
Secretary for Science and Technology, shall have the 
responsibility for--
          (1) advising the Secretary regarding research and 
        development efforts and priorities in support of the 
        Department's missions;
          (2) developing, in consultation with other 
        appropriate executive agencies, a national policy and 
        strategic plan for, identifying priorities, goals, 
        objectives and policies for, and coordinating the 
        Federal Government's civilian efforts to identify and 
        develop countermeasures to chemical, biological, 
        radiological, nuclear, and other emerging terrorist 
        threats, including the development of comprehensive, 
        research-based definable goals for such efforts and 
        development of annual measurable objectives and 
        specific targets to accomplish and evaluate the goals 
        for such efforts;
          (3) supporting the Under Secretary for Information 
        Analysis and Infrastructure Protection, by assessing 
        and testing homeland security vulnerabilities and 
        possible threats;
          (4) conducting basic and applied research, 
        development, demonstration, testing, and evaluation 
        activities that are relevant to any or all elements of 
        the Department, through both intramural and extramural 
        programs, except that such responsibility does not 
        extend to human health-related research and development 
        activities;
          (5) establishing priorities for, directing, funding, 
        and conducting national research, development, test and 
        evaluation, and procurement of technology and systems 
        for--
                  (A) preventing the importation of chemical, 
                biological, radiological, nuclear, and related 
                weapons and material; and
                  (B) detecting, preventing, protecting 
                against, and responding to terrorist attacks;
          (6) establishing a system for transferring homeland 
        security developments or technologies to Federal, 
        State, local government, and private sector entities;
          (7) entering into work agreements, joint 
        sponsorships, contracts, or any other agreements with 
        the Department of Energy regarding the use of the 
        national laboratories or sites and support of the 
        science and technology base at those facilities;
          (8) collaborating with the Secretary of Agriculture 
        and the Attorney General as provided in section 212 of 
        the Agricultural Bioterrorism Protection Act of 2002 (7 
        U.S.C. 8401), as amended by section 1709(b);
          (9) collaborating with the Secretary of Health and 
        Human Services and the Attorney General in determining 
        any new biological agents and toxins that shall be 
        listed as ``select agents'' in Appendix A of part 72 of 
        title 42, Code of Federal Regulations, pursuant to 
        section 351A of the Public Health Service Act (42 
        U.S.C. 262a);
          (10) supporting United States leadership in science 
        and technology;
          (11) establishing and administering the primary 
        research and development activities of the Department, 
        including the long-term research and development needs 
        and capabilities for all elements of the Department;
          (12) coordinating and integrating all research, 
        development, demonstration, testing, and evaluation 
        activities of the Department;
          (13) coordinating with other appropriate executive 
        agencies in developing and carrying out the science and 
        technology agenda of the Department to reduce 
        duplication and identify unmet needs; and
          (14) developing and overseeing the administration of 
        guidelines for merit review of research and development 
        projects throughout the Department, and for the 
        dissemination of research conducted or sponsored by the 
        Department.
  (b) SAFECOM Authorized.--
          (1) In general.--In carrying out subsection (a), the 
        Under Secretary shall establish a program to address 
        the interoperability of communications devices used by 
        Federal, State, tribal, and local first responders, to 
        be known as the Wireless Public Safety Interoperability 
        Communications Program, or `SAFECOM'. The Under 
        Secretary shall coordinate the program with the 
        Director of the Department of Justice's Office of 
        Science and Technology and all other Federal programs 
        engaging in communications interoperability research, 
        development, and funding activities to ensure that the 
        program takes into account, and does not duplicate, 
        those programs or activities.
          (2) Components.--The program established under 
        paragraph (1) shall be designed--
                  (A) to provide research on the development of 
                a communications system architecture that would 
                ensure the interoperability of communications 
                devices among Federal, State, tribal, and local 
                officials that would enhance the potential for 
                a coordinated response to a national emergency;
                  (B) to support the completion and promote the 
                adoption of mutually compatible voluntary 
                consensus standards developed by a standards 
                development organization accredited by the 
                American National Standards Institute to ensure 
                such interoperability; and
                  (C) to provide for the development of a model 
                strategic plan that could be used by any State 
                or region in developing its communications 
                interoperability plan.
          (3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry 
        out this subsection--
                  (A) $22,105,000 for fiscal year 2005;
                  (B) $22,768,000 for fiscal year 2006;
                  (C) $23,451,000 for fiscal year 2007;
                  (D) $24,155,000 for fiscal year 2008; and
                  (E) $24,879,000 for fiscal year 2009.
  (c) National Baseline Study of Public Safety Communications 
Interoperability.--By December 31, 2005, the Under Secretary of 
Homeland Security for Science and Technology shall complete a 
study to develop a national baseline for communications 
interoperability and develop common grant guidance for all 
Federal grant programs that provide communications-related 
resources or assistance to State and local agencies, any 
Federal programs conducting demonstration projects, providing 
technical assistance, providing outreach services, providing 
standards development assistance, or conducting research and 
development with the public safety community with respect to 
wireless communications. The Under Secretary shall transmit a 
report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Energy and Commerce containing the Under Secretary's findings, 
conclusions, and recommendations from the study.

                       COMMUNICATIONS ACT OF 1934

                TITLE III--PROVISIONS RELATING TO RADIO

PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 303. POWERS AND DUTIES OF COMMISSION.

                            [47 U.S.C. 303]

  Except as otherwise provided in this Act, the Commission from 
time to time, as public convenience, interest, or necessity 
requires, shall--
          (a) Classify radio stations;
          (b) Prescribe the nature of the service to be 
        rendered by each class of licensed stations and each 
        station within any class;
          (c) Assign bands of frequencies to the various 
        classes of stations, and assign frequencies for each 
        individual station and determine the power which each 
        station shall use and the time during which it may 
        operate;
          (d) Determine the location of classes of stations or 
        individual stations;
          (e) Regulate the kind of apparatus to be used with 
        respect to its external effects and the purity and 
        sharpness of the emissions from each station and from 
        the apparatus therein;
          (f) Make such regulations not inconsistent with law 
        as it may deem necessary to prevent interference 
        between stations and to carry out the provisions of 
        this Act: Provided, however, That changes in the 
        frequencies, authorized power, or in the times of 
        operation of any station, shall not be made without the 
        consent of the station licensee unless the Commission 
        shall determine that such changes will promote public 
        convenience or interest or will serve public necessity, 
        or the provisions of this Act will be more fully 
        complied with;
          (g) Study new uses for radio, provide for 
        experimental uses of frequencies, and generally 
        encourage the larger and more effective use of radio in 
        the public interest;
          (h) Have authority to establish areas or zones to be 
        served by any station;
          (i) Have authority to make special regulations 
        applicable to radio stations engaged in chain 
        broadcasting;
          (j) Have authority to make general rules and 
        regulations requiring stations to keep such records of 
        programs, transmissions of energy, communications, or 
        signals as it may deem desirable;
          (k) Have authority to exclude from the requirements 
        of any regulations in whole or in part any radio 
        station upon railroad rolling stock, or to modify such 
        regulations in its discretion;
          (l)(1) Have authority to prescribe the qualifications 
        of station operators, to classify them according to the 
        duties to be performed, to fix the forms of such 
        licenses, and to issue them to persons who are found to 
        be qualified by the Commission and who otherwise are 
        legally eligible for employment in the United States; 
        except that such requirement relating to eligibility 
        for employment in the United States shall not apply in 
        the case of licenses issued by the Commission to (A) 
        persons holding United States pilot certificates; or 
        (B) persons holding foreign aircraft pilot certificates 
        which are valid in the United States, if the foreign 
        government involved has entered into a reciprocal 
        agreement under which such foreign government does not 
        impose any similar requirement relating to eligibility 
        for employment upon citizens of the United States;
          (2) Notwithstanding paragraph (1) of this subsection, 
        an individual to whom a radio station is licensed under 
        the provisions of this Act may be issued an operator's 
        license to operate that station.
          (3) In addition to amateur operator licenses which 
        the Commission may issue to aliens pursuant to 
        paragraph (2) of this subsection, and notwithstanding 
        section 301 of this Act and paragraph (1) of this 
        subsection, the Commission may issue authorizations, 
        under such conditions and terms as it may prescribe, to 
        permit an alien licensed by his government as an 
        amateur radio operator to operate his amateur radio 
        station licensed by his government in the United 
        States, its possessions, and the Commonwealth of Puerto 
        Rico provided there is in effect a multilateral or 
        bilateral agreement, to which the United States and the 
        alien's government are parties, for such operation on a 
        reciprocal basis by United States amateur radio 
        operators. Other provisions of this Act and of the 
        Administrative Procedure Act shall not be applicable to 
        any request or application for or modification, 
        suspension, or cancellation of any such authorization.
          (m)(1) Have authority to suspend the license of any 
        operator upon proof sufficient to satisfy the 
        Commission that the licensee--
                  (A) has violated, or caused, aided, or 
                abetted the violation of, any provision of any 
                Act, treaty, or convention binding on the 
                United States, which the Commission is 
                authorized to administer, or any regulation 
                made by the Commission under any such Act, 
                treaty, or convention; or
                  (B) has failed to carry out a lawful order of 
                the master or person lawfully in charge of the 
                ship or aircraft on which he is employed; or
                  (C) has willfully damaged or permitted radio 
                apparatus or installations to be damaged; or
                  (D) has transmitted superfluous radio 
                communications or signals or communications 
                containing profane or obscene words, language, 
                or meaning, or has knowingly transmitted--
                          (i) false or deceptive signals or 
                        communications, or
                          (ii) a call signal or letter which 
                        has not been assigned by proper 
                        authority to the station he is 
                        operating; or
                  (E) has willfully or maliciously interfered 
                with any other radio communications or signals; 
                or
                  (F) has obtained or attempted to obtain, or 
                has assisted another to obtain or attempt to 
                obtain, an operator's license by fraudulent 
                means.
          (2) No order of suspension of any operator's license 
        shall take effect until fifteen days' notice in writing 
        thereof, stating the cause for the proposed suspension, 
        has been given to the operator licensee who may make 
        written application to the Commission at any time 
        within said fifteen days for a hearing upon such order. 
        The notice to the operator licensee shall not be 
        effective until actually received by him, and from that 
        time he shall have fifteen days in which to mail the 
        said application. In the event that physical conditions 
        prevent mailing of the application at the expiration of 
        the fifteen-day period, the application shall then be 
        mailed as soon as possible thereafter, accompanied by a 
        satisfactory explanation of the delay. Upon receipt by 
        the Commission of such application for hearing, said 
        order of suspension shall be held in abeyance until the 
        conclusion of the hearing which shall be conducted 
        under such rules as the Commission may prescribe. Upon 
        the conclusion of said hearing the Commission may 
        affirm, modify, or revoke said order of suspension.
          (n) Have authority to inspect all radio installations 
        associated with stations required to be licensed by any 
        Act, or which the Commission by rule has authorized to 
        operate without a license under section 307(e)(1); or 
        which are subject to the provisions of any Act, treaty, 
        or convention binding on the United States, to 
        ascertain whether in construction, installation, and 
        operation they conform to the requirements of the rules 
        and regulations of the Commission, the provisions of 
        any Act, the terms of any treaty or convention binding 
        on the United States, and the conditions of the license 
        or other instrument of authorization under which they 
        are constructed, installed, or operated.
          (o) Have authority to designate call letters of all 
        stations;
          (p) Have authority to cause to be published such call 
        letters and such other announcements and data as in the 
        judgment of the Commission may be required for the 
        efficient operation of radio stations subject to the 
        jurisdiction of the United States and for the proper 
        enforcement of this Act;
          (q) Have authority to require the painting and/or 
        illumination of radio towers if and when in its 
        judgment such towers constitute, or there is a 
        reasonable possibility that they may constitute, a 
        menace to air navigation. The permittee or licensee, 
        and the tower owner in any case in which the owner is 
        not the permittee or licensee, shall maintain the 
        painting and/or illumination of the tower as prescribed 
        by the Commission pursuant to this section. In the 
        event that the tower ceases to be licensed by the 
        Commission for the transmission of radio energy, the 
        owner of the tower shall maintain the prescribed 
        painting and/or illumination of such tower until it is 
        dismantled, and the Commission may require the owner to 
        dismantle and remove the tower when the Administrator 
        of the Federal Aviation Agency determines that there is 
        a reasonable possibility that it may constitute a 
        menace to air navigation.
          (r) Make such rules and regulations and prescribe 
        such restrictions and conditions, not inconsistent with 
        law, as may be necessary to carry out the provisions of 
        this Act, or any international radio or wire 
        communications treaty or convention, or regulations 
        annexed thereto, including any treaty or convention 
        insofar as it relates to the use of radio, to which the 
        United States is or may hereafter become a party.
          (s) Have authority to require that apparatus designed 
        to receive television pictures broadcast simultaneously 
        with sound be capable of adequately receiving all 
        frequencies allocated by the Commission to television 
        broadcasting when such apparatus is shipped in 
        interstate commerce, or is imported from any foreign 
        country into the United States, for sale or resale to 
        the public.
          (t) Notwithstanding the provisions of section 301(e), 
        have authority, in any case in which an aircraft 
        registered in the United States is operated (pursuant 
        to a lease, charter, or similar arrangement) by an 
        aircraft operator who is subject to regulation by the 
        government of a foreign nation, to enter into an 
        agreement with such government under which the 
        Commission shall recognize and accept any radio station 
        licenses and radio operator licenses issued by such 
        government with respect to such aircraft.
          (u) Require that apparatus designed to receive 
        television pictures broadcast simultaneously with sound 
        be equipped with built-in decoder circuitry designed to 
        display closed-captioned television transmissions when 
        such apparatus is manufactured in the United States or 
        imported for use in the United States, and its 
        television picture screen is 13 inches or greater in 
        size.
          (v) Have exclusive jurisdiction to regulate the 
        provision of direct-to-home satellite services. As used 
        in this subsection, the term ``direct-to-home satellite 
        services'' means the distribution or broadcasting of 
        programming or services by satellite directly to the 
        subscriber's premises without the use of ground 
        receiving or distribution equipment, except at the 
        subscriber's premises or in the uplink process to the 
        satellite.
          (w) [Omitted]
          (x) Require, in the case of an apparatus designed to 
        receive television signals that are shipped in 
        interstate commerce or manufactured in the United 
        States and that have a picture screen 13 inches or 
        greater in size (measured diagonally), that such 
        apparatus be equipped with a feature designed to enable 
        viewers to block display of all programs with a common 
        rating, except as otherwise permitted by regulations 
        pursuant to section 330(c)(4).
          (y) Have authority to allocate electromagnetic 
        spectrum so as to provide flexibility of use, if--
                  (1) such use is consistent with international 
                agreements to which the United States is a 
                party; and
                  (2) the Commission finds, after notice and an 
                opportunity for public comment, that--
                          (A) such an allocation would be in 
                        the public interest;
                          (B) such use would not deter 
                        investment in communications services 
                        and systems, or technology development; 
                        and
                          (C) such use would not result in 
                        harmful interference among users.
    (z) Require that any apparatus described in paragraph (s) 
sold or offered for sale in or affecting interstate commerce 
after September 30, 2005, that is incapable of receiving and 
displaying a digital television broadcast signal without the 
use of an external device that translates digital television 
broadcast signals into analog television broadcast signals have 
affixed to it and, if it is sold or offered for sale in a 
container, affixed to that container, a label that states that 
the apparatus will be incapable of displaying over-the-air 
television broadcast signals received after December 31, 2008, 
without the purchase of additional equipment.

           *       *       *       *       *       *       *


SEC. 309. APPLICATION FOR LICENSE.

                            [47 U.S.C. 309]

  (a) Considerations in Granting Application.--Subject to the 
provisions of this section, the Commission shall determine, in 
the case of each application filed with it to which section 308 
applies, whether the public interest, convenience, and 
necessity will be served by the granting of such application, 
and, if the Commission, upon examination of such application 
and upon consideration of such other matters as the Commission 
may officially notice, shall find that public interest, 
convenience, and necessity would be served by the granting 
thereof, it shall grant such application.
  (b) Time of Granting Application.--Except as provided in 
subsection (c) of this section, no such application--
          (1) for an instrument of authorization in the case of 
        a station in the broadcasting or common carrier 
        services, or
          (2) for an instrument of authorization in the case of 
        a station in any of the following categories:
                  (A) industrial radio positioning stations for 
                which frequencies are assigned on an exclusive 
                basis,
                  (B) aeronautical en route stations,
                  (C) aeronautical advisory stations,
                  (D) airdrome control stations,
                  (E) aeronautical fixed stations, and
                  (F) such other stations or classes of 
                stations, not in the broadcasting or common 
                carrier services, as the Commission shall by 
                rule prescribe, shall be granted by the 
                Commission earlier than thirty days following 
                issuance of public notice by the Commission of 
                the acceptance for filing of such application 
                or of any substantial amendment thereof.
  (c) Applications not affected by subsection (b).--Subsection 
(b) of this section shall not apply--
          (1) to any minor amendment of an application to which 
        such subsection is applicable, or
          (2) to any application for--
                  (A) a minor change in the facilities of an 
                authorized station,
                  (B) consent to an involuntary assignment or 
                transfer under section 310(b) or to an 
                assignment or transfer thereunder which does 
                not involve a substantial change in ownership 
                or control,
                  (C) a license under section 319(c) or, 
                pending application for or grant of such 
                license, any special or temporary authorization 
                to permit interim operation to facilitate 
                completion of authorized construction or to 
                provide substantially the same service as would 
                be authorized by such license,
                  (D) extension of time to complete 
                construction of authorized facilities,
                  (E) an authorization of facilities for remote 
                pickups, studio links and similar facilities 
                for use in the operation of a broadcast 
                station,
                  (F) authorizations pursuant to section 325(c) 
                where the programs to be transmitted are 
                special events not of a continuing nature,
                  (G) a special temporary authorization for 
                nonbroadcast operation not to exceed thirty 
                days where no application for regular operation 
                is contemplated to be filed or not to exceed 
                sixty days pending the filing of an application 
                for such regular operation, or
                  (H) an authorization under any of the proviso 
                clauses of section 308(a).
  (d) Petition To Deny Application; Time; Contents; Reply; 
Findings.--
          (1) Any party in interest may file with the 
        Commission a petition to deny any application (whether 
        as originally filed or as amended) to which subsection 
        (b) of this section applies at any time prior to the 
        day of Commission grant thereof without hearing or the 
        day of formal designation thereof for hearing; except 
        that with respect to any classification of 
        applications, the Commission from time to time by rule 
        may specify a shorter period (no less than thirty days 
        following the issuance of public notice by the 
        Commission of the acceptance for filing of such 
        application or of any substantial amendment thereof), 
        which shorter period shall be reasonably related to the 
        time when the applications would normally be reached 
        for processing. The petitioner shall serve a copy of 
        such petition on the applicant. The petition shall 
        contain specific allegations of fact sufficient to show 
        that the petitioner is a party in interest and that a 
        grant of the application would be prima facie 
        inconsistent with subsection (a) (or subsection (k) in 
        the case of renewal of any broadcast station license). 
        Such allegations of fact shall, except for those of 
        which official notice may be taken, be supported by 
        affidavit of a person or persons with personal 
        knowledge thereof. The applicant shall be given the 
        opportunity to file a reply in which allegations of 
        fact or denials thereof shall similarly be supported by 
        affidavit.
          (2) If the Commission finds on the basis of the 
        application, the pleadings filed, or other matters 
        which it may officially notice that there are no 
        substantial and material questions of fact and that a 
        grant of the application would be consistent with 
        subsection (a) (or subsection (k) in the case of 
        renewal of any broadcast station license), it shall 
        make the grant, deny the petition, and issue a concise 
        statement of the reasons for denying the petition, 
        which statement shall dispose of all substantial issues 
        raised by the petition. If a substantial and material 
        question of fact is presented or if the Commission for 
        any reason is unable to find that grant of the 
        application would be consistent with subsection (a) (or 
        subsection (k) in the case of renewal of any broadcast 
        station license), it shall proceed as provided in 
        subsection (e).
  (e) Hearings; Intervention; Evidence; Burden of Proof.--If, 
in the case of any application to which subsection (a) of this 
section applies, a substantial and material question of fact is 
presented or the Commission for any reason is unable to make 
the finding specified in such subsection, it shall formally 
designate the application for hearing on the ground or reasons 
then obtaining and shall forthwith notify the applicant and all 
other known parties in interest of such action and the grounds 
and reasons therefor, specifying with particularity the matters 
and things in issue but not including issues or requirements 
phrased generally. When the Commission has so designated an 
application for hearing the parties in interest, if any, who 
are not notified by the Commission of such action may acquire 
the status of a party to the proceeding thereon by filing a 
petition for intervention showing the basis for their interest 
not more than thirty days after publication of the hearing 
issues or any substantial amendment thereto in the Federal 
Register. Any hearing subsequently held upon such application 
shall be a full hearing in which the applicant and all other 
parties in interest shall be permitted to participate. The 
burden of proceeding with the introduction of evidence and the 
burden of proof shall be upon the applicant, except that with 
respect to any issue presented by a petition to deny or a 
petition to enlarge the issues, such burdens shall be as 
determined by the Commission.
  (f) Temporary Authorization of Operations under Subsection 
(b).--When an application subject to subsection (b) has been 
filed, the Commission, notwithstanding the requirements of such 
subsection, may, if the grant of such application is otherwise 
authorized by law and if it finds that there are extraordinary 
circumstances requiring temporary operations in the public 
interest and that delay in the institution of such temporary 
operations would seriously prejudice the public interest, grant 
a temporary authorization, accompanied by a statement of its 
reasons therefor, to permit such temporary operations for a 
period not exceeding 180 days, and upon making like findings 
may extend such temporary authorization for additional periods 
not to exceed 180 days. When any such grant of a temporary 
authorization is made, the Commission shall give expeditious 
treatment to any timely filed petition to deny such application 
and to any petition for rehearing of such grant filed under 
section 405.
  (g) Classification of Applications.--The Commission is 
authorized to adopt reasonable classifications of applications 
and amendments in order to effectuate the purposes of this 
section.
  (h) Form and Conditions of Station Licenses.--Such station 
licenses as the Commission may grant shall be in such general 
form as it may prescribe, but each license shall contain, in 
addition to other provisions, a statement of the following 
conditions to which such license shall be subject:
          (1) The station license shall not vest in the 
        licensee any right to operate the station nor any right 
        in the use of the frequencies designated in the license 
        beyond the term thereof nor in any other manner than 
        authorized therein;
          (2) neither the license nor the right granted 
        thereunder shall be assigned or otherwise transferred 
        in violation of this Act;
          (3) every license issued under this Act shall be 
        subject in terms to the right of use or control 
        conferred by section 706 of this Act.
  (i) Random Selection.--
          (1) General authority.--Except as provided in 
        paragraph (5), if there is more than one application 
        for any initial license or construction permit, then 
        the Commission shall have the authority to grant such 
        license or permit to a qualified applicant through the 
        use of a system of random selection.
          (2) No license or construction permit shall be 
        granted to an applicant selected pursuant to paragraph 
        (1) unless the Commission determines the qualifications 
        of such applicant pursuant to subsection (a) and 
        section 308(b). When substantial and material questions 
        of fact exist concerning such qualifications, the 
        Commission shall conduct a hearing in order to make 
        such determinations. For the purpose of making such 
        determinations, the Commission may, by rule, and 
        notwithstanding any other provision of law--
                  (A) adopt procedures for the submission of 
                all or part of the evidence in written form;
                  (B) delegate the function of presiding at the 
                taking of the evidence to Commission employees 
                other than administrative law judges; and
                  (C) omit the determination required by 
                subsection (a) with respect to any application 
                other than the one selected pursuant to 
                paragraph (1).
          (3)(A) The Commission shall establish rules and 
        procedures to ensure that, in the administration of any 
        system of random selection under this subsection used 
        for granting licenses or construction permits for any 
        media of mass communications, significant preferences 
        will be granted to applicants or groups of applicants, 
        the grant to which of the license or permit would 
        increase the diversification of ownership of the media 
        of mass communications. To further diversify the 
        ownership of the media of mass communications, an 
        additional significant preference shall be granted to 
        any applicant controlled by a member or members of a 
        minority group.
          (B) The Commission shall have authority to require 
        each qualified applicant seeking a significant 
        preference under subparagraph (A) to submit to the 
        Commission such information as may be necessary to 
        enable the Commission to make a determination regarding 
        whether such applicant shall be granted such 
        preference. Such information shall be submitted in such 
        form, at such times, and in accordance with such 
        procedures, as the Commission may require.
          (C) For purposes of this paragraph:
                  (i) The term ``media of mass communications'' 
                includes television, radio, cable television, 
                multipoint distribution service, direct 
                broadcast satellite service, and other 
                services, the licensed facilities of which may 
                be substantially devoted toward providing 
                programming or other information services 
                within the editorial control of the licensee.
                  (ii) The term ``minority group'' includes 
                Blacks, Hispanics, American Indians, Alaska 
                Natives, Asians, and Pacific Islanders.
          (4)(A) The Commission shall, after notice and 
        opportunity for hearing, prescribe rules establishing a 
        system of random selection for use by the Commission 
        under this subsection in any instance in which the 
        Commission, in its discretion, determines that such use 
        is appropriate for the granting of any license or 
        permit in accordance with paragraph (1).
          (B) The Commission shall have authority to amend such 
        rules from time to time to the extent necessary to 
        carry out the provisions of this subsection. Any such 
        amendment shall be made after notice and opportunity 
        for hearing.
          (C) Not later than 180 days after the date of 
        enactment of this subparagraph, the Commission shall 
        prescribe such transfer disclosures and antitrafficking 
        restrictions and payment schedules as are necessary to 
        prevent the unjust enrichment of recipients of licenses 
        or permits as a result of the methods employed to issue 
        licenses under this subsection.
          (5) Termination of authority.--
                  (A) Except as provided in subparagraph (B), 
                the Commission shall not issue any license or 
                permit using a system of random selection under 
                this subsection after July 1, 1997.
                  (B) Subparagraph (A) of this paragraph shall 
                not apply with respect to licenses or permits 
                for stations described in section 397(6) of 
                this Act.
  (j) Use of Competitive Bidding.--
          (1) General authority.--If, consistent with the 
        obligations described in paragraph (6)(E), mutually 
        exclusive applications are accepted for any initial 
        license or construction permit, then, except as 
        provided in paragraph (2), the Commission shall grant 
        the license or permit to a qualified applicant through 
        a system of competitive bidding that meets the 
        requirements of this subsection.
          (2) Exemptions.--The competitive bidding authority 
        granted by this subsection shall not apply to licenses 
        or construction permits issued by the Commission--
                  (A) for public safety radio services, 
                including private internal radio services used 
                by State and local governments and non-
                government entities and including emergency 
                road services provided by not-for-profit 
                organizations, that--
                          (i) are used to protect the safety of 
                        life, health, or property; and
                          (ii) are not made commercially 
                        available to the public;
                  (B) for initial licenses or construction 
                permits for digital television service given to 
                existing terrestrial broadcast licensees to 
                replace their analog television service 
                licenses; or
                  (C) for stations described in section 397(6) 
                of this Act.
          (3) Design of systems of competitive bidding.--For 
        each class of licenses or permits that the Commission 
        grants through the use of a competitive bidding system, 
        the Commission shall, by regulation, establish a 
        competitive bidding methodology. The Commission shall 
        seek to design and test multiple alternative 
        methodologies under appropriate circumstances. The 
        Commission shall, directly or by contract, provide for 
        the design and conduct (for purposes of testing) of 
        competitive bidding using a contingent combinatorial 
        bidding system that permits prospective bidders to bid 
        on combinations or groups of licenses in a single bid 
        and to enter multiple alternative bids within a single 
        bidding round. In identifying classes of licenses and 
        permits to be issued by competitive bidding, in 
        specifying eligibility and other characteristics of 
        such licenses and permits, and in designing the 
        methodologies for use under this subsection, the 
        Commission shall include safeguards to protect the 
        public interest in the use of the spectrum and shall 
        seek to promote the purposes specified in section 1 of 
        this Act and the following objectives:
                  (A) the development and rapid deployment of 
                new technologies, products, and services for 
                the benefit of the public, including those 
                residing in rural areas, without administrative 
                or judicial delays;
                  (B) promoting economic opportunity and 
                competition and ensuring that new and 
                innovative technologies are readily accessible 
                to the American people by avoiding excessive 
                concentration of licenses and by disseminating 
                licenses among a wide variety of applicants, 
                including small businesses, rural telephone 
                companies, and businesses owned by members of 
                minority groups and women;
                  (C) recovery for the public of a portion of 
                the value of the public spectrum resource made 
                available for commercial use and avoidance of 
                unjust enrichment through the methods employed 
                to award uses of that resource;
                  (D) efficient and intensive use of the 
                electromagnetic spectrum; and
                  (E) ensure that, in the scheduling of any 
                competitive bidding under this subsection, an 
                adequate period is allowed--
                          (i) before issuance of bidding rules, 
                        to permit notice and comment on 
                        proposed auction procedures; and
                          (ii) after issuance of bidding rules, 
                        to ensure that interested parties have 
                        a sufficient time to develop business 
                        plans, assess market conditions, and 
                        evaluate the availability of equipment 
                        for the relevant services.
          (4) Contents of regulations.--In prescribing 
        regulations pursuant to paragraph (3), the Commission 
        shall--
                  (A) consider alternative payment schedules 
                and methods of calculation, including lump sums 
                or guaranteed installment payments, with or 
                without royalty payments, or other schedules or 
                methods that promote the objectives described 
                in paragraph (3)(B), and combinations of such 
                schedules and methods;
                  (B) include performance requirements, such as 
                appropriate deadlines and penalties for 
                performance failures, to ensure prompt delivery 
                of service to rural areas, to prevent 
                stockpiling or warehousing of spectrum by 
                licensees or permittees, and to promote 
                investment in and rapid deployment of new 
                technologies and services;
                  (C) consistent with the public interest, 
                convenience, and necessity, the purposes of 
                this Act, and the characteristics of the 
                proposed service, prescribe area designations 
                and bandwidth assignments that promote (i) an 
                equitable distribution of licenses and services 
                among geographic areas, (ii) economic 
                opportunity for a wide variety of applicants, 
                including small businesses, rural telephone 
                companies, and businesses owned by members of 
                minority groups and women, and (iii) investment 
                in and rapid deployment of new technologies and 
                services;
                  (D) ensure that small businesses, rural 
                telephone companies, and businesses owned by 
                members of minority groups and women are given 
                the opportunity to participate in the provision 
                of spectrum-based services, and, for such 
                purposes, consider the use of tax certificates, 
                bidding preferences, and other procedures;
                  (E) require such transfer disclosures and 
                antitrafficking restrictions and payment 
                schedules as may be necessary to prevent unjust 
                enrichment as a result of the methods employed 
                to issue licenses and permits; and
                  (F) prescribe methods by which a reasonable 
                reserve price will be required, or a minimum 
                bid will be established, to obtain any license 
                or permit being assigned pursuant to the 
                competitive bidding, unless the Commission 
                determines that such a reserve price or minimum 
                bid is not in the public interest.
          (5) Bidder and licensee qualification.--No person 
        shall be permitted to participate in a system of 
        competitive bidding pursuant to this subsection unless 
        such bidder submits such information and assurances as 
        the Commission may require to demonstrate that such 
        bidder's application is acceptable for filing. No 
        license shall be granted to an applicant selected 
        pursuant to this subsection unless the Commission 
        determines that the applicant is qualified pursuant to 
        subsection (a) and sections 308(b) and 310. Consistent 
        with the objectives described in paragraph (3), the 
        Commission shall, by regulation, prescribe expedited 
        procedures consistent with the procedures authorized by 
        subsection (i)(2) for the resolution of any substantial 
        and material issues of fact concerning qualifications.
          (6) Rules of construction.--Nothing in this 
        subsection, or in the use of competitive bidding, 
        shall--
                  (A) alter spectrum allocation criteria and 
                procedures established by the other provisions 
                of this Act;
                  (B) limit or otherwise affect the 
                requirements of subsection (h) of this section, 
                section 301, 304, 307, 310, or 706, or any 
                other provision of this Act (other than 
                subsections (d)(2) and (e) of this section);
                  (C) diminish the authority of the Commission 
                under the other provisions of this Act to 
                regulate or reclaim spectrum licenses;
                  (D) be construed to convey any rights, 
                including any expectation of renewal of a 
                license, that differ from the rights that apply 
                to other licenses within the same service that 
                were not issued pursuant to this subsection;
                  (E) be construed to relieve the Commission of 
                the obligation in the public interest to 
                continue to use engineering solutions, 
                negotiation, threshold qualifications, service 
                regulations, and other means in order to avoid 
                mutual exclusivity in application and licensing 
                proceedings;
                  (F) be construed to prohibit the Commission 
                from issuing nationwide, regional, or local 
                licenses or permits;
                  (G) be construed to prevent the Commission 
                from awarding licenses to those persons who 
                make significant contributions to the 
                development of a new telecommunications service 
                or technology; or
                  (H) be construed to relieve any applicant for 
                a license or permit of the obligation to pay 
                charges imposed pursuant to section 8 of this 
                Act.
          (7) Consideration of revenues in public interest 
        determinations.--
                  (A) Consideration prohibited.--In making a 
                decision pursuant to section 303(c) to assign a 
                band of frequencies to a use for which licenses 
                or permits will be issued pursuant to this 
                subsection, and in prescribing regulations 
                pursuant to paragraph (4)(C) of this 
                subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity on the expectation of Federal 
                revenues from the use of a system of 
                competitive bidding under this subsection.
                  (B) Consideration limited.--In prescribing 
                regulations pursuant to paragraph (4)(A) of 
                this subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity solely or predominantly on the 
                expectation of Federal revenues from the use of 
                a system of competitive bidding under this 
                subsection.
                  (C) Consideration of demand for spectrum not 
                affected.--Nothing in this paragraph shall be 
                construed to prevent the Commission from 
                continuing to consider consumer demand for 
                spectrum-based services.
          (8) Treatment of revenues.--
                  (A) General rule.--Except as provided in 
                subparagraph (B) or subparagraph (D), all 
                proceeds from the use of a competitive bidding 
                system under this subsection shall be deposited 
                in the Treasury in accordance with chapter 33 
                of title 31, United States Code.
                  (B) Retention of revenues.--Notwithstanding 
                subparagraph (A), the salaries and expenses 
                account of the Commission shall retain as an 
                offsetting collection such sums as may be 
                necessary from such proceeds for the costs of 
                developing and implementing the program 
                required by this subsection. Such offsetting 
                collections shall be available for obligation 
                subject to the terms and conditions of the 
                receiving appropriations account, and shall be 
                deposited in such accounts on a quarterly 
                basis. Such offsetting collections are 
                authorized to remain available until expended. 
                No sums may be retained under this subparagraph 
                during any fiscal year beginning after 
                September 30, 1998, if the annual report of the 
                Commission under section 4(k) for the second 
                preceding fiscal year fails to include in the 
                itemized statement required by paragraph (3) of 
                such section a statement of each expenditure 
                made for purposes of conducting competitive 
                bidding under this subsection during such 
                second preceding fiscal year.
                  (C) Deposit and use of auction escrow 
                accounts.--Any deposits the Commission may 
                require for the qualification of any person to 
                bid in a system of competitive bidding pursuant 
                to this subsection shall be deposited in an 
                interest bearing account at a financial 
                institution designated for purposes of this 
                subsection by the Commission (after 
                consultation with the Secretary of the 
                Treasury). Within 45 days following the 
                conclusion of the competitive bidding--
                          (i) the deposits of successful 
                        bidders shall be paid to the Treasury;
                          (ii) the deposits of unsuccessful 
                        bidders shall be returned to such 
                        bidders; and
                          (iii) the interest accrued to the 
                        account shall be transferred to the 
                        Telecommunications Development Fund 
                        established pursuant to section 714 of 
                        this Act.
                  (D) Disposition of cash proceeds from auction 
                of channels 52 through 69.--Cash proceeds 
                attributable to the auction of any eligible 
                frequencies between 698 and 806 megaHertz on 
                the electromagnetic spectrum conducted after 
                the date of enactment of the SAVE LIVES Act 
                shall be deposited in the Digital Transition 
                Consumer Assistance Fund established under 
                section 7 of that Act.
          (9) Use of former government spectrum.--The 
        Commission shall, not later than 5 years after the date 
        of enactment of this subsection, issue licenses and 
        permits pursuant to this subsection for the use of 
        bands of frequencies that--
                  (A) in the aggregate span not less than 10 
                megahertz; and
                  (B) have been reassigned from Government use 
                pursuant to part B of the National 
                Telecommunications and Information 
                Administration Organization Act.
          (10) Authority contingent on availability of 
        additional spectrum.--
                  (A) Initial conditions.--The Commission's 
                authority to issue licenses or permits under 
                this subsection shall not take effect unless--
                          (i) the Secretary of Commerce has 
                        submitted to the Commission the report 
                        required by section 113(d)(1) of the 
                        National Telecommunications and 
                        Information Administration Organization 
                        Act;
                          (ii) such report recommends for 
                        immediate reallocation bands of 
                        frequencies that, in the aggregate, 
                        span not less than 50 megahertz;
                          (iii) such bands of frequencies meet 
                        the criteria required by section 113(a) 
                        of such Act; and
                          (iv) the Commission has completed the 
                        rulemaking required by section 
                        332(c)(1)(D) of this Act.
                  (B) Subsequent conditions.--The Commission's 
                authority to issue licenses or permits under 
                this subsection on and after 2 years after the 
                date of the enactment of this subsection shall 
                cease to be effective if--
                          (i) the Secretary of Commerce has 
                        failed to submit the report required by 
                        section 113(a) of the National 
                        Telecommunications and Information 
                        Administration Organization Act;
                          (ii) the President has failed to 
                        withdraw and limit assignments of 
                        frequencies as required by paragraphs 
                        (1) and (2) of section 114(a) of such 
                        Act;
                          (iii) the Commission has failed to 
                        issue the regulations required by 
                        section 115(a) of such Act;
                          (iv) the Commission has failed to 
                        complete and submit to Congress, not 
                        later than 18 months after the date of 
                        enactment of this subsection, a study 
                        of current and future spectrum needs of 
                        State and local government public 
                        safety agencies through the year 2010, 
                        and a specific plan to ensure that 
                        adequate frequencies are made available 
                        to public safety licensees; or
                          (v) the Commission has failed under 
                        section 332(c)(3) to grant or deny 
                        within the time required by such 
                        section any petition that a State has 
                        filed within 90 days after the date of 
                        enactment of this subsection; until 
                        such failure has been corrected.
          (11) Termination.--The authority of the Commission to 
        grant a license or permit under this subsection shall 
        expire September 30, 2007.
          (12) Evaluation.--Not later than September 30, 1997, 
        the Commission shall conduct a public inquiry and 
        submit to the Congress a report--
                  (A) containing a statement of the revenues 
                obtained, and a projection of the future 
                revenues, from the use of competitive bidding 
                systems under this subsection;
                  (B) describing the methodologies established 
                by the Commission pursuant to paragraphs (3) 
                and (4);
                  (C) comparing the relative advantages and 
                disadvantages of such methodologies in terms of 
                attaining the objectives described in such 
                paragraphs;
                  (D) evaluating whether and to what extent--
                          (i) competitive bidding significantly 
                        improved the efficiency and 
                        effectiveness of the process for 
                        granting radio spectrum licenses;
                          (ii) competitive bidding facilitated 
                        the introduction of new spectrum-based 
                        technologies and the entry of new 
                        companies into the telecommunications 
                        market;
                          (iii) competitive bidding 
                        methodologies have secured prompt 
                        delivery of service to rural areas and 
                        have adequately addressed the needs of 
                        rural spectrum users; and
                          (iv) small businesses, rural 
                        telephone companies, and businesses 
                        owned by members of minority groups and 
                        women were able to participate 
                        successfully in the competitive bidding 
                        process; and
                  (E) recommending any statutory changes that 
                are needed to improve the competitive bidding 
                process.
          (13) Recovery of value of public spectrum in 
        connection with pioneer preferences.--
                  (A) In general.--Notwithstanding paragraph 
                (6)(G), the Commission shall not award licenses 
                pursuant to a preferential treatment accorded 
                by the Commission to persons who make 
                significant contributions to the development of 
                a new telecommunications service or technology, 
                except in accordance with the requirements of 
                this paragraph.
                  (B) Recovery of value.--The Commission shall 
                recover for the public a portion of the value 
                of the public spectrum resource made available 
                to such person by requiring such person, as a 
                condition for receipt of the license, to agree 
                to pay a sum determined by--
                          (i) identifying the winning bids for 
                        the licenses that the Commission 
                        determines are most reasonably 
                        comparable in terms of bandwidth, scope 
                        of service area, usage restrictions, 
                        and other technical characteristics to 
                        the license awarded to such person, and 
                        excluding licenses that the Commission 
                        determines are subject to bidding 
                        anomalies due to the award of 
                        preferential treatment;
                          (ii) dividing each such winning bid 
                        by the population of its service area 
                        (hereinafter referred to as the per 
                        capita bid amount);
                          (iii) computing the average of the 
                        per capita bid amounts for the licenses 
                        identified under clause (i);
                          (iv) reducing such average amount by 
                        15 percent; and
                          (v) multiplying the amount determined 
                        under clause (iv) by the population of 
                        the service area of the license 
                        obtained by such person.
                  (C) Installments permitted.--The Commission 
                shall require such person to pay the sum 
                required by subparagraph (B) in a lump sum or 
                in guaranteed installment payments, with or 
                without royalty payments, over a period of not 
                more than 5 years.
                  (D) Rulemaking on pioneer preferences.--
                Except with respect to pending applications 
                described in clause (iv) of this subparagraph, 
                the Commission shall prescribe regulations 
                specifying the procedures and criteria by which 
                the Commission will evaluate applications for 
                preferential treatment in its licensing 
                processes (by precluding the filing of mutually 
                exclusive applications) for persons who make 
                significant contributions to the development of 
                a new service or to the development of new 
                technologies that substantially enhance an 
                existing service. Such regulations shall--
                          (i) specify the procedures and 
                        criteria by which the significance of 
                        such contributions will be determined, 
                        after an opportunity for review and 
                        verification by experts in the radio 
                        sciences drawn from among persons who 
                        are not employees of the Commission or 
                        by any applicant for such preferential 
                        treatment;
                          (ii) include such other procedures as 
                        may be necessary to prevent unjust 
                        enrichment by ensuring that the value 
                        of any such contribution justifies any 
                        reduction in the amounts paid for 
                        comparable licenses under this 
                        subsection;
                          (iii) be prescribed not later than 6 
                        months after the date of enactment of 
                        this paragraph;
                          (iv) not apply to applications that 
                        have been accepted for filing on or 
                        before September 1, 1994; and
                          (v) cease to be effective on the date 
                        of the expiration of the Commission's 
                        authority under subparagraph (F).
                  (E) Implementation with respect to pending 
                applications.--In applying this paragraph to 
                any broadband licenses in the personal 
                communications service awarded pursuant to the 
                preferential treatment accorded by the Federal 
                Communications Commission in the Third Report 
                and Order in General Docket 90-314 (FCC 93-550, 
                released February 3, 1994)--
                          (i) the Commission shall not 
                        reconsider the award of preferences in 
                        such Third Report and Order, and the 
                        Commission shall not delay the grant of 
                        licenses based on such awards more than 
                        15 days following the date of enactment 
                        of this paragraph, and the award of 
                        such preferences and licenses shall not 
                        be subject to administrative or 
                        judicial review;
                          (ii) the Commission shall not alter 
                        the bandwidth or service areas 
                        designated for such licenses in such 
                        Third Report and Order;
                          (iii) except as provided in clause 
                        (v), the Commission shall use, as the 
                        most reasonably comparable licenses for 
                        purposes of subparagraph (B)(i), the 
                        broadband licenses in the personal 
                        communications service for blocks A and 
                        B for the 20 largest markets (ranked by 
                        population) in which no applicant has 
                        obtained preferential treatment;
                          (iv) for purposes of subparagraph 
                        (C), the Commission shall permit 
                        guaranteed installment payments over a 
                        period of 5 years, subject to--
                                  (I) the payment only of 
                                interest on unpaid balances 
                                during the first 2 years, 
                                commencing not later than 30 
                                days after the award of the 
                                license (including any 
                                preferential treatment used in 
                                making such award) is final and 
                                no longer subject to 
                                administrative or judicial 
                                review, except that no such 
                                payment shall be required prior 
                                to the date of completion of 
                                the auction of the comparable 
                                licenses described in clause 
                                (iii); and
                                  (II) payment of the unpaid 
                                balance and interest thereon 
                                after the end of such 2 years 
                                in accordance with the 
                                regulations prescribed by the 
                                Commission; and
                          (v) the Commission shall recover with 
                        respect to broadband licenses in the 
                        personal communications service an 
                        amount under this paragraph that is 
                        equal to not less than $400,000,000, 
                        and if such amount is less than 
                        $400,000,000, the Commission shall 
                        recover an amount equal to $400,000,000 
                        by allocating such amount among the 
                        holders of such licenses based on the 
                        population of the license areas held by 
                        each licensee. The Commission shall not 
                        include in any amounts required to be 
                        collected under clause (v) the interest 
                        on unpaid balances required to be 
                        collected under clause (iv).
                  (F) Expiration.--The authority of the 
                Commission to provide preferential treatment in 
                licensing procedures (by precluding the filing 
                of mutually exclusive applications) to persons 
                who make significant contributions to the 
                development of a new service or to the 
                development of new technologies that 
                substantially enhance an existing service shall 
                expire on the date of enactment of the Balanced 
                Budget Act of 1997.
                  (G) Effective date.--This paragraph shall be 
                effective on the date of its enactment and 
                apply to any licenses issued on or after August 
                1, 1994, by the Federal Communications 
                Commission pursuant to any licensing procedure 
                that provides preferential treatment (by 
                precluding the filing of mutually exclusive 
                applications) to persons who make significant 
                contributions to the development of a new 
                service or to the development of new 
                technologies that substantially enhance an 
                existing service.
          (14) Auction of recaptured broadcast television 
        spectrum.--
                  (A) Limitations on terms of terrestrial 
                television broadcast licenses.--A television 
                broadcast license that authorizes analog 
                television service may not be renewed to 
                authorize such service for a period that 
                extends beyond December 31, 2006.
                  (B) Extension.--The Commission shall extend 
                the date described in subparagraph (A) for any 
                station that requests such extension in any 
                television market if the Commission finds 
                that--
                          (i) one or more of the stations in 
                        such market that are licensed to or 
                        affiliated with one of the four largest 
                        national television networks are not 
                        broadcasting a digital television 
                        service signal, and the Commission 
                        finds that each such station has 
                        exercised due diligence and satisfies 
                        the conditions for an extension of the 
                        Commission's applicable construction 
                        deadlines for digital television 
                        service in that market;
                          (ii) digital-to-analog converter 
                        technology is not generally available 
                        in such market; or
                          (iii) in any market in which an 
                        extension is not available under clause 
                        (i) or (ii), 15 percent or more of the 
                        television households in such market--
                                  (I) do not subscribe to a 
                                multichannel video programming 
                                distributor (as defined in 
                                section 602) that carries one 
                                of the digital television 
                                service programming channels of 
                                each of the television stations 
                                broadcasting such a channel in 
                                such market; and
                                  (II) do not have either--
                                          (a) at least one 
                                        television receiver 
                                        capable of receiving 
                                        the digital television 
                                        service signals of the 
                                        television stations 
                                        licensed in such 
                                        market; or
                                          (b) at least one 
                                        television receiver of 
                                        analog television 
                                        service signals 
                                        equipped with digital-
                                        to-analog converter 
                                        technology capable of 
                                        receiving the digital 
                                        television service 
                                        signals of the 
                                        television stations 
                                        licensed in such 
                                        market.
                  (C) Spectrum reversion and resale.--
                          (i) The Commission shall--
                                  (I) ensure that, as licenses 
                                for analog television service 
                                expire pursuant to subparagraph 
                                (A) or (B), each licensee shall 
                                cease using electromagnetic 
                                spectrum assigned to such 
                                service according to the 
                                Commission's direction; and
                                  (II) reclaim and organize the 
                                electromagnetic spectrum in a 
                                manner consistent with the 
                                objectives described in 
                                paragraph (3) of this 
                                subsection.
                          (ii) Licensees for new services 
                        occupying spectrum reclaimed pursuant 
                        to clause (i) shall be assigned in 
                        accordance with this subsection.
                  (D) Certain limitations on qualified bidders 
                prohibited.--In prescribing any regulations 
                relating to the qualification of bidders for 
                spectrum reclaimed pursuant to subparagraph 
                (C)(i), the Commission, for any license that 
                may be used for any digital television service 
                where the grade A contour of the station is 
                projected to encompass the entirety of a city 
                with a population in excess of 400,000 (as 
                determined using the 1990 decennial census), 
                shall not--
                          (i) preclude any party from being a 
                        qualified bidder for such spectrum on 
                        the basis of--
                                  (I) the Commission's duopoly 
                                rule (47 C.F.R. 73.3555(b)); or
                                  (II) the Commission's 
                                newspaper cross-ownership rule 
                                (47 C.F.R. 73.3555(d)); or
                          (ii) apply either such rule to 
                        preclude such a party that is a winning 
                        bidder in a competitive bidding for 
                        such spectrum from using such spectrum 
                        for digital television service.
                  (E) Exception to 2006 deadline.--
                          (i) Notwithstanding subparagraph (B), 
                        the Commission shall not grant any 
                        extension under such subparagraph from 
                        the limitation of subparagraph (A) with 
                        respect to the frequencies assigned, 
                        pursuant to section 337(a)(1), for 
                        public safety services. The Commission 
                        shall take all actions necessary to 
                        complete assignment of the 
                        electromagnetic spectrum between 764 
                        and 776 megahertz and between 794 and 
                        806 megahertz for public safety 
                        services and to permit operations by 
                        public safety services on those 
                        frequencies commencing no later than 
                        January 1, 2008.
                          (ii) Beginning January 1, 2008, the 
                        Commission may modify or reassign the 
                        licenses of licensees assigned to 
                        frequencies between 758 and 764 
                        megahertz, 776 and 782 megahertz, and 
                        788 and 794 megahertz as necessary to 
                        permit operations by public safety 
                        services on frequencies between 764 and 
                        776 megahertz and between 794 and 806 
                        megahertz.
                          (iii) The Commission may waive the 
                        requirements of clauses (i) and (ii) 
                        and such other rules as necessary--
                                  (I) in the absence of a bona 
                                fide request from relevant 
                                first responders in the 
                                affected designated market area 
                                (as that term is defined in 
                                section 122(j) of title 17, 
                                United States Code); and
                                  (II) to the extent necessary 
                                to avoid consumer disruption 
                                while maximizing the ability of 
                                relevant public safety entities 
                                to use frequencies described in 
                                this subparagraph in the 
                                affected designated market area 
                                (as so defined).
          (15) Commission to determine timing of auctions.--
                  (A) Commission authority.--Subject to the 
                provisions of this subsection (including 
                paragraph (11)), but notwithstanding any other 
                provision of law, the Commission shall 
                determine the timing of and deadlines for the 
                conduct of competitive bidding under this 
                subsection, including the timing of and 
                deadlines for qualifying for bidding; 
                conducting auctions; collecting, depositing, 
                and reporting revenues; and completing 
                licensing processes and assigning licenses.
                  (B) Termination of portions of auctions 31 
                and 44.--Except as provided in subparagraph 
                (C), the Commission shall not commence or 
                conduct auctions 31 and 44 on June 19, 2002, as 
                specified in the public notices of March 19, 
                2002, and March 20, 2002 (DA 02-659 and DA 02-
                563).
                  (C) Exception.--
                          (i) Blocks excepted.--Subparagraph 
                        (B) shall not apply to the auction of--
                                  (I) the C-block of licenses 
                                on the bands of frequencies 
                                located at 710-716 megahertz, 
                                and 740- 746 megahertz; or
                                  (II) the D-block of licenses 
                                on the bands of frequencies 
                                located at 716-722 megahertz.
                          (ii) Eligible bidders.--The entities 
                        that shall be eligible to bid in the 
                        auction of the C-block and D-block 
                        licenses described in clause (i) shall 
                        be those entities that were qualified 
                        entities, and that submitted 
                        applications to participate in auction 
                        44, by May 8, 2002, as part of the 
                        original auction 44 short form filing 
                        deadline.
                          (iii) Auction deadlines for excepted 
                        blocks.--Notwithstanding subparagraph 
                        (B), the auction of the C-block and D-
                        block licenses described in clause (i) 
                        shall be commenced no earlier than 
                        August 19, 2002, and no later than 
                        September 19, 2002, and the proceeds of 
                        such auction shall be deposited in 
                        accordance with paragraph (8) not later 
                        than December 31, 2002.
                          (iv) Report.--Within one year after 
                        the date of enactment of this 
                        paragraph, the Commission shall submit 
                        a report to Congress--
                                  (I) specifying when the 
                                Commission intends to 
                                reschedule auctions 31 and 44 
                                (other than the blocks excepted 
                                by clause (i)); and
                                  (II) describing the progress 
                                made by the Commission in the 
                                digital television transition 
                                and in the assignment and 
                                allocation of additional 
                                spectrum for advanced mobile 
                                communications services that 
                                warrants the scheduling of such 
                                auctions.
                  (D) Return of payments.--Within one month 
                after the date of enactment of this paragraph, 
                the Commission shall return to the bidders for 
                licenses in the A-block, B-block, and E-block 
                of auction 44 the full amount of all upfront 
                payments made by such bidders for such 
                licenses.
  (k) Broadcast Station Renewal Procedures.--
          (1) Standards for renewal.--If the licensee of a 
        broadcast station submits an application to the 
        Commission for renewal of such license, the Commission 
        shall grant the application if it finds, with respect 
        to that station, during the preceding term of its 
        license--
                  (A) the station has served the public 
                interest, convenience, and necessity;
                  (B) there have been no serious violations by 
                the licensee of this Act or the rules and 
                regulations of the Commission; and
                  (C) there have been no other violations by 
                the licensee of this Act or the rules and 
                regulations of the Commission which, taken 
                together, would constitute a pattern of abuse.
          (2) Consequence of failure to meet standard.--If any 
        licensee of a broadcast station fails to meet the 
        requirements of this subsection, the Commission may 
        deny the application for renewal in accordance with 
        paragraph (3), or grant such application on terms and 
        conditions as are appropriate, including renewal for a 
        term less than the maximum otherwise permitted.
          (3) Standards for denial. If the Commission 
        determines, after notice and opportunity for a hearing 
        as provided in subsection (e), that a licensee has 
        failed to meet the requirements specified in paragraph 
        (1) and that no mitigating factors justify the 
        imposition of lesser sanctions, the Commission shall--
                  (A) issue an order denying the renewal 
                application filed by such licensee under 
                section 308; and
                  (B) only thereafter accept and consider such 
                applications for a construction permit as may 
                be filed under section 308 specifying the 
                channel or broadcasting facilities of the 
                former licensee.
          (4) Competitor consideration prohibited.--In making 
        the determinations specified in paragraph (1) or (2), 
        the Commission shall not consider whether the public 
        interest, convenience, and necessity might be served by 
        the grant of a license to a person other than the 
        renewal applicant.
  (l) Applicability of Competitive Bidding to Pending 
Comparative Licensing Cases.--With respect to competing 
applications for initial licenses or construction permits for 
commercial radio or television stations that were filed with 
the Commission before July 1, 1997, the Commission shall--
          (1) have the authority to conduct a competitive 
        bidding proceeding pursuant to subsection (j) to assign 
        such license or permit;
          (2) treat the persons filing such applications as the 
        only persons eligible to be qualified bidders for 
        purposes of such proceeding; and
          (3) waive any provisions of its regulations necessary 
        to permit such persons to enter an agreement to procure 
        the removal of a conflict between their applications 
        during the 180-day period beginning on the date of 
        enactment of the Balanced Budget Act of 1997.

           *       *       *       *       *       *       *


                            [47 U.S.C. 330]

SEC. 330. PROHIBITION AGAINST SHIPMENT OF CERTAIN TELEVISION RECEIVERS.

  (a) No person shall ship in interstate commerce, or import 
from any foreign country into the United States, for sale or 
resale to the public, apparatus described in paragraph (s) of 
section 303 unless it complies with rules prescribed by the 
Commission pursuant to the authority granted by that paragraph: 
Provided, That this section shall not apply to carriers 
transporting such apparatus without trading in it.
  (b) No person shall ship in interstate commerce, manufacture, 
assemble, or import from any foreign country into the United 
States, any apparatus described in section 303(u) of this Act 
except in accordance with rules prescribed by the Commission 
pursuant to the authority granted by that section. Such rules 
shall provide performance and display standards for such built-
in decoder circuitry. Such rules shall further require that all 
such apparatus be able to receive and display closed captioning 
which have been transmitted by way of line 21 of the vertical 
blanking interval and which conform to the signal and display 
specifications set forth in the Public Broadcasting System 
engineering report numbered E-7709-C dated May 1980, as amended 
by the Telecaption II Decoder Module Performance Specification 
published by the National Captioning Institute, November 1985. 
As new video technology is developed, the Commission shall take 
such action as the Commission determines appropriate to ensure 
that closed-captioning service continues to be available to 
consumers. This subsection shall not apply to carriers 
transporting such apparatus without trading it.
  (c)(1) Except as provided in paragraph (2), no person shall 
ship in interstate commerce or manufacture in the United States 
any apparatus described in section 303(x) of this Act except in 
accordance with rules prescribed by the Commission pursuant to 
the authority granted by that section.
  (2) This subsection shall not apply to carriers transporting 
apparatus referred to in paragraph (1) without trading in it.
  (3) The rules prescribed by the Commission under this 
subsection shall provide for the oversight by the Commission of 
the adoption of standards by industry for blocking technology. 
Such rules shall require that all such apparatus be able to 
receive the rating signals which have been transmitted by way 
of line 21 of the vertical blanking interval and which conform 
to the signal and blocking specifications established by 
industry under the supervision of the Commission.
  (4) As new video technology is developed, the Commission 
shall take such action as the Commission determines appropriate 
to ensure that blocking service continues to be available to 
consumers. If the Commission determines that an alternative 
blocking technology exists that--
          (A) enables parents to block programming based on 
        identifying programs without ratings,
          (B) is available to consumers at a cost which is 
        comparable to the cost of technology that allows 
        parents to block programming based on common ratings, 
        and
          (C) will allow parents to block a broad range of 
        programs on a multichannel system as effectively and as 
        easily as technology that allows parents to block 
        programming based on common ratings, the Commission 
        shall amend the rules prescribed pursuant to section 
        303(x) to require that the apparatus described in such 
        section be equipped with either the blocking technology 
        described in such section or the alternative blocking 
        technology described in this paragraph.
  (d) Shipment of Unlabeled Obsolescent Television Sets.--No 
person shall ship in interstate commerce or manufacture in the 
United States any apparatus described in section 303(s) of this 
Act except in accordance with rules prescribed by the 
Commission under section 303(z) of this Act.
  [(d)] (e) For the purposes of this section, and sections 
303(s), 303(u), and 303(x)--
          (1) The term ``interstate commerce'' means (A) 
        commerce between any State, the District of Columbia, 
        the Commonwealth of Puerto Rico, or any possession of 
        the United States and any place outside thereof which 
        is within the United States, (B) commerce between 
        points in the same State, the District of Columbia, the 
        Commonwealth of Puerto Rico, or possession of the 
        United States but through any place outside thereof, or 
        (C) commerce wholly within the District of Columbia or 
        any possession of the United States.
          (2) The term ``United States'' means the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, and the possessions of the United States, 
        but does not include the Canal Zone.

                                  
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