[Senate Report 110-424]
[From the U.S. Government Publishing Office]
110th Congress
2d Session SENATE Report
110-424
_______________________________________________________________________
Calendar No. 886
DTV BORDER FIX ACT OF 2007
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2507
July 17, 2008.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
second session
DANIEL K. INOUYE, Hawaii, Chairman
TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West JOHN McCAIN, Arizona
Virginia KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota GORDON H. SMITH, Oregon
BARBARA BOXER, California JOHN ENSIGN, Nevada
BILL NELSON, Florida JOHN E. SUNUNU, New Hampshire
MARIA CANTWELL, Washington JIM DeMINT, South Carolina
FRANK R. LAUTENBERG, New Jersey DAVID VITTER, Louisiana
MARK PRYOR, Arkansas JOHN THUNE, South Dakota
THOMAS CARPER, Delaware ROGER F. WICKER, Mississippi
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Jean Toal Eisen, Senior Advisor and Deputy Policy Director
Christine Kurth, Republican Staff Director and General Counsel
Paul J. Nagle, Republican Chief Counsel
Mimi Braniff, Republican Deputy Chief Counsel
Calendar No. 886
110th Congress Report
SENATE
2d Session 110-424
======================================================================
DTV BORDER FIX ACT OF 2007
_______
July 17, 2008.--Ordered to be printed
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany S. 2507]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2507) to address the digital
television transition in border states, 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 S. 2507 is to ensure that residents along the
U.S.-Mexico border have access to over-the-air broadcasting
after the digital television (DTV) transition.
Background and Needs
In less than one year, full-power broadcasters in the United
States will switch from analog to digital signals. For
television stations along the U.S.-Mexico border, the DTV
transition poses special challenges. Residents along the border
presently receive analog broadcast signals from both the United
States and Mexico. The Digital Television Transition and Public
Safety Act of 2005 (DTV Act) set February 17, 2009, as the
deadline for the DTV transition in the United States. According
to the Federal Communications Commission (FCC), Mexico will not
complete their digital transition until 2021.
In order to continue receiving over-the-air television from
American broadcasters after the transition, consumers with
analog televisions will need to take one of three steps. First,
consumers may purchase a digital-ready television set. Second,
consumers may choose to subscribe to a cable or satellite
service. Third, consumers can attach a digital-to-analog
converter box to their analog set. To subsidize the cost of
these converter boxes, households may apply for up to two $40
coupons from the National Telecommunications and Information
Administration (NTIA). Residents along the border will not have
to take any action to continue to receive analog broadcasting
from Mexico.
As a result, some viewers may choose not to participate in
the transition. This could pose a significant public safety
risk for households relying on over-the-air television. As a
source of information in the event of emergency or natural
disaster, television serves a vital public safety role.
Consumers who continue to view over-the-air analog signals by
watching Mexican stations will lose access to the Emergency
Alert System and AMBER Alert messages broadcast by U.S.
television stations. In addition, American stations
broadcasting along the border could lose a portion of their
viewing audience.
To address this situation, the legislation is designed to
provide the FCC with the flexibility to permit full-power
television stations within 50 miles of the border with Mexico
to continue to broadcast in analog for as long as five years
after February 17, 2009. However, the FCC would have to find
that an eligible station's continued analog broadcasting is in
the public interest. In addition, the ability to continue to
broadcast in analog along the border would be limited to
stations operating between channels 2 and 51; channels that
would not prevent the use of recovered spectrum for public
safety purposes; and channels that are not assigned to other
stations for digital operation post-transition.
Legislative History
On December 18, 2007, Senator Hutchison, for herself and
Senator Boxer, introduced S. 2507. On April 8, 2008, the
Committee held an oversight hearing on the DTV transition. On
April 24, 2008, the Committee held an executive session at
which S. 2507 was considered. Senator Hutchison offered an
amendment in the nature of a substitute. The bill, as amended,
was approved by voice vote.
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:
June 13, 2008.
Hon. Daniel K. Inouye, Chairman,
Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2507, the DTV Border
Fix Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 2507--DTV Border Fix Act of 2007
Summary: S. 2507 would authorize the Federal Communications
Commission (FCC) to renew licenses for certain television
stations to broadcast analog signals through February 17, 2014.
Under current law, all full-power television stations are
required to switch from analog to digital broadcasts on
February 17, 2009; the bill would give stations operating
within 50 miles of the United States border with Mexico an
additional five years to make the conversion to digital
broadcasts. The bill would place certain restrictions on a
station's ability to receive an analog renewal.
CBO estimates that enacting this bill would increase direct
spending by about $10 million over the 2009-2013 period by
reducing offsetting receipts from FCC auctions of licenses to
use the electromagnetic spectrum. CBO estimates that the
additional rulemaking activity that would be required under the
bill to assign new channels would not have a significant effect
on spending subject to appropriation. Enacting the bill would
not affect revenues.
S. 2507 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
The bill would ease an existing mandate by allowing certain
public television stations to broadcast an analog signal until
2014, provided those stations meet certain requirements.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 2507 is shown in the following table.
The costs of this legislation fall within budget function 950
(undistributed offsetting receipts).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------
2009 2010 2011 2012 2013 2014 2015 2017 2018 2009-2013 2009-2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority................................ 0 5 5 0 0 0 0 0 0 10 10
Estimated Outlays......................................... 0 5 5 0 0 0 0 0 0 10 10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: Based on information from the FCC, CBO
expects that, under the bill, 33 stations would be eligible to
continue to broadcast analog signals after the February 2009
conversion deadline, including stations in San Diego and El
Paso. About half of those stations would need a new channel
assignment to prevent interference with other analog or digital
stations if they chose to take advantage of the extension.
Under current law, CBO expects that the FCC will auction
construction permits or other types of licenses for frequencies
within the television band (channels 2 through 51) that will be
vacated after the transition to digital. Allowing certain
stations to continue their analog operations would reduce the
number of channels that could be reassigned and auctioned for
new uses before the FCC's auction authority expires at the end
of fiscal year 2011. Based on the amounts paid for similar
licenses, CBO estimates that implementing this bill would
reduce auction receipts by about $10 million over the 2009-2013
period.
Intergovernmental and private-sector impact: S. 2507
contains no intergovernmental or private-sector mandates as
defined UMRA. The bill would ease an existing mandate by
allowing certain television stations to broadcast an analog
signal until 2014, provided those stations meet certain
requirements.
Estimate prepared by: Federal costs: Susan Willie and
Kathleen Gramp; Impact on state, local, and tribal governments:
Elizabeth Cove; Impact on the private sector: Jacob Kuipers.
Estimate approved by: Theresa Gullo, 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:
NUMBER OF PERSONS COVERED
The number of persons covered by this legislation would be
consistent with current levels of individuals affected.
ECONOMIC IMPACT
S. 2507 is not expected to have an economic impact.
PRIVACY
S. 2507 is not expected to have an adverse effect on the
personal privacy of any individuals that will be impacted by
this legislation.
PAPERWORK
S. 2507 would have minimal impact on current paperwork
levels.
Section-by-Section Analysis
Section 1. Short Title
Section 1 would provide that the legislation may be cited as
the ``DTV Border Fix Act of 2008.''
Section 2. Continuation of Analog Broadcasting along Common Border with
Mexico
Section 2 would amend Section 309(j) of the Communications
Act of 1934 to allow full-power television stations within 50
miles of the U.S.-Mexico border to renew their licenses
authorizing analog television service, from the date of
enactment of the DTV Border Fix Act of 2008 and ending February
17, 2014, provided that the FCC finds that an eligible
station's continued broadcasting of television service in
analog is in the public interest and the station operates
television service on a channel between 2 and 51. In addition,
the FCC would have to find that analog license renewal does not
prevent the recovery of auctioned spectrum; does not prevent
the use of recovered spectrum allocated for public safety use;
does not encumber or interfere with any channel reserved for
public safety use; and does not prevent the FCC from
considering or granting a request for waiver submitted for
public safety service prior to the date of enactment of the DTV
Border Fix Act of 2008. Renewals would be permitted if the
channels at issue are between 2 and 51; were not previously
assigned to other stations for digital operation after the
transition; and are capable of being used for broadcasting
analog television service after the digital transition without
causing interference to previously authorized digital
television stations. In addition, the bill would set up a
process through which eligible stations may request that the
FCC assign them a new channel for broadcasting analog service,
provided that the newly requested channel is between 2 and 51
and does not cause interference to other analog or digital
television stations or any stations licensed to operate in any
other radio service on channels between 2 and 51.
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):
COMMUNICATIONS ACT OF 1934
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;
(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; and
(F) for any auction of eligible frequencies
described in section 113(g)(2) of the National
Telecommunications and Information
Administration Organization Act (47 U.S.C.
923(g)(2)), the recovery of 110 percent of
estimated relocation costs as provided to the
Commission pursuant to section 113(g)(4) of
such Act.
(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
subparagraphs (B), (D), and (E), 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,
except as otherwise provided in
subparagraph (E)(ii);
(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.--Cash
proceeds attributable to the auction of any
eligible frequencies described in section
113(g)(2) of the National Telecommunications
and Information Administration Organization Act
(47 U.S.C. 923(g)(2)) shall be deposited in the
Spectrum Relocation Fund established under
section 118 of such Act, and shall be available
in accordance with that section.
(E) Transfer of receipts.
(i) Establishment of Fund.--There is
established in the Treasury of the
United States a fund to be known as the
Digital Television Transition and
Public Safety Fund.
(ii) Proceeds for funds.--
Notwithstanding subparagraph (A), the
proceeds (including deposits and
upfront payments from successful
bidders) from the use of a competitive
bidding system under this subsection
with respect to recovered analog
spectrum shall be deposited in the
Digital Television Transition and
Public Safety Fund.
(iii) Transfer of amount to
Treasury.--On September 30, 2009, the
Secretary shall transfer $
7,363,000,000 from the Digital
Television Transition and Public Safety
Fund to the general fund of the
Treasury.
(iv) Recovered analog spectrum.--For
purposes of clause (i), the term
``recovered analog spectrum'' has the
meaning provided in paragraph
(15)(C)(vi).
(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, 2011.
(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 full-power
television broadcast license that authorizes
analog television service may not be renewed to
authorize such service for a period that
extends beyond February 17, 2009.
(B) Spectrum reversion and resale.
(i) The Commission shall--
(I) ensure that, as licenses
for analog television service
expire pursuant to subparagraph
(A), 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.
(C) Certain limitations on qualified bidders
prohibited.--In prescribing any regulations
relating to the qualification of bidders for
spectrum reclaimed pursuant to subparagraph
(B)(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.
(D) Continuation of analog broadcasting along
common border with mexico.--
(i) In general.--Notwithstanding any
other provision of this section, any
television station that has been
granted a full-power television
broadcast license that authorizes
analog television service prior to
February 17, 2009, that is licensed by
the Commission to serve communities
located within 50 miles of the United
States common border with Mexico, and
that can establish to the satisfaction
of the Commission that such station's
continued broadcasting of television
service in analog is in the public
interest, shall during the period
beginning on the date of enactment of
the DTV Border Fix Act of 2008, and
ending February 17, 2014--
(I) be entitled to the
renewal of such station's
television broadcast license
authorizing analog television
service; and
(II) operate such television
service on a channel between 2
and 51.
(ii) Conditions.--The rights,
privileges, and obligations described
under clause (i) shall only be extended
if the following requirements are
satisfied:
(I) Any channel used for the
distribution of analog
television service shall not--
(aa) prevent the
auction of recovered
spectrum pursuant to
paragraph (15);
(bb) prevent the use
of recovered spectrum
for any public safety
service pursuant to
section 337(a)(1);
(cc) encumber or
interfere with any
channel reserved for
public safety use, as
such channels are
designated in ET Docket
No. 97-157; and
(dd) prevent the
Commission from
considering or granting
a request for waiver
submitted for public
safety service prior to
the date of enactment
of the DTV Border Fix
Act of 2008.
(II) Each station described
in clause (i) operates on its
assigned analog channel, as of
February 16, 2009, if such
channel--
(aa) is between 2 and
51;
(bb) has not
previously been
assigned to such
station or any another
station for digital
operation after the
digital transition
required under
subparagraph (A); and
(cc) could be used by
such station for
broadcasting analog
television service
after the digital
transition required
under subparagraph (A)
without causing
interference to any
previously authorized
digital television
stations.
(III) If such station does
not meet the requirements under
subclause (II) for operation on
its assigned analog channel, as
of February 16, 2009, such
station may request, and the
Commission shall promptly act
upon such request, to be
assigned a new channel for
broadcasting analog television
service, provided that such
newly requested channel shall--
(aa) be between
channels 2 and 51; and
(bb) allow such
station to operate on a
primary basis without
causing interference
to--
(AA) any
other analog or
digital
television
station; or
(BB) any
station
licensed to
operate in any
other radio
service that
also operates
on channels
between 2 and
51.
(iii) Mutually exclusive
applications.--If mutually exclusive
applications are submitted for the
right to use a channel in order to
broadcast analog television service
pursuant to this subparagraph, the
Commission shall--
(I) award the authority to
use such channel for such
purpose through the application
of the procedures established
under this section; and
(II) give due consideration
to any resolution procedures
established by the Commission.
(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.
(v) Additional deadlines for
recovered analog spectrum.--
Notwithstanding subparagraph (B), the
Commission shall conduct the auction of
the licenses for recovered analog
spectrum by commencing the bidding not
later than January 28, 2008, and shall
deposit the proceeds of such auction in
accordance with paragraph (8)(E)(ii)
not later than June 30, 2008.
(vi) Recovered analog spectrum.--For
purposes of clause (v), the term
``recovered analog spectrum'' means the
spectrum between channels 52 and 69,
inclusive (between frequencies 698 and
806 megahertz, inclusive) reclaimed
from analog television service
broadcasting under paragraph (14),
other than--
(I) the spectrum required by
section 337 to be made
available for public safety
services; and
(II) the spectrum auctioned
prior to the date of enactment
of the Digital Television
Transition and Public Safety
Act of 2005.
(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.
(16) Special auction provisions for eligible
frequencies.
(A) Special regulations.--The Commission
shall revise the regulations prescribed under
paragraph (4)(F) of this subsection to
prescribe methods by which the total cash
proceeds from any auction of eligible
frequencies described in section 113(g)(2) of
the National Telecommunications and Information
Administration Organization Act (47 U.S.C.
923(g)(2)) shall at least equal 110 percent of
the total estimated relocation costs provided
to the Commission pursuant to section 113(g)(4)
of such Act.
(B) Conclusion of auctions contingent on
minimum proceeds.--The Commission shall not
conclude any auction of eligible frequencies
described in section 113(g)(2) of such Act if
the total cash proceeds attributable to such
spectrum are less than 110 percent of the total
estimated relocation costs provided to the
Commission pursuant to section 113(g)(4) of
such Act. If the Commission is unable to
conclude an auction for the foregoing reason,
the Commission shall cancel the auction, return
within 45 days after the auction cancellation
date any deposits from participating bidders
held in escrow, and absolve such bidders from
any obligation to the United States to bid in
any subsequent reauction of such spectrum.
(C) Authority to issue prior to
deauthorization..--In any auction conducted
under the regulations required by subparagraph
(A), the Commission may grant a license
assigned for the use of eligible frequencies
prior to the termination of an eligible Federal
entity's authorization. However, the Commission
shall condition such license by requiring that
the licensee cannot cause harmful interference
to such Federal entity until such entity's
authorization has been terminated by the
National Telecommunications and Information
Administration.
(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.