TITLE
II--BROADCAST SERVICES
SEC.
201. BROADCAST SPECTRUM FLEXIBILITY.
Title
III is amended by inserting after section 335 (47
U.S.C. 335) the following new section:
'SEC.
336. BROADCAST SPECTRUM FLEXIBILITY.
'(a)
Commission Action: If the Commission
determines to issue additional licenses for advanced
television services, the Commission--
'(1)
should limit the initial eligibility for such licenses
to persons that, as of the date of such issuance,
are licensed to operate a television broadcast station
or hold a permit to construct such a station (or
both); and
'(2)
shall adopt regulations that allow the holders of
such licenses to offer such ancillary or supplementary
services on designated frequencies as may be consistent
with the public interest, convenience, and necessity.
'(b)
Contents of Regulations: In prescribing
the regulations required by subsection (a), the
Commission shall--
'(1)
only permit such licensee or permittee to offer
ancillary or supplementary services if the use of
a designated frequency for such services is consistent
with the technology or method designated by the
Commission for the provision of advanced television
services;
'(2)
limit the broadcasting of ancillary or supplementary
services on designated frequencies so as to avoid
derogation of any advanced television services,
including high definition television broadcasts,
that the Commission may require using such frequencies;
'(3)
apply to any other ancillary or supplementary service
such of the Commission's regulations as are applicable
to the offering of analogous services by any other
person, except that no ancillary or supplementary
service shall have any rights to carriage under
section 614 or 615 or be deemed a multichannel video
programming distributor for purposes of section
628;
'(4)
adopt such technical and other requirements as may
be necessary or appropriate to assure the quality
of the signal used to provide advanced television
services, and may adopt regulations that stipulate
the minimum number of hours per day that such signal
must be transmitted; and
'(5)
prescribe such other regulations as may be necessary
for the protection of the public interest, convenience,
and necessity.
'(c)
Recovery of License: If the Commission
grants a license for advanced television services
to a person that, as of the date of such issuance,
is licensed to operate a television broadcast station
or holds a permit to construct such a station (or
both), the Commission shall, as a condition of such
license, require that either the additional license
or the original license held by the licensee be
surrendered to the Commission for reallocation or
reassignment (or both) pursuant to Commission regulation.
'(d)
Public Interest Requirement: Nothing
in this section shall be construed as relieving
a television broadcasting station from its obligation
to serve the public interest, convenience, and necessity.
In the Commission's review of any application for
renewal of a broadcast license for a television
station that provides ancillary or supplementary
services, the television licensee shall establish
that all of its program services on the existing
or advanced television spectrum are in the public
interest. Any violation of the Commission rules
applicable to ancillary or supplementary services
shall reflect upon the licensee's qualifications
for renewal of its license.
'(e)
Fees:
'(1)
Services to which fees apply: If
the regulations prescribed pursuant to subsection
(a) permit a licensee to offer ancillary or supplementary
services on a designated frequency--
'(A)
for which the payment of a subscription fee is required
in order to receive such services, or
'(B)
for which the licensee directly or indirectly receives
compensation from a third party in return for transmitting
material furnished by such third party (other than
commercial advertisements used to support broadcasting
for which a subscription fee is not required),
the
Commission shall establish a program to assess and
collect from the licensee for such designated frequency
an annual fee or other schedule or method of payment
that promotes the objectives described in subparagraphs
(A) and (B) of paragraph (2).
'(2)
Collection of fees: The program
required by paragraph (1) shall--
'(A)
be designed (i) to recover for the public a portion
of the value of the public spectrum resource made
available for such commercial use, and (ii) to avoid
unjust enrichment through the method employed to
permit such uses of that resource;
'(B)
recover for the public an amount that, to the extent
feasible, equals but does not exceed (over the term
of the license) the amount that would have been
recovered had such services been licensed pursuant
to the provisions of section 309(j) of this Act
and the Commission's regulations thereunder; and
'(C)
be adjusted by the Commission from time to time
in order to continue to comply with the requirements
of this paragraph.
'(3)
Treatment of revenues:
'(A)
General rule: Except as provided
in subparagraph (B), all proceeds obtained pursuant
to the regulations required by 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 section and regulating
and supervising advanced television services. 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.
'(4)
Report: Within 5 years after the
date of enactment of the Telecommunications Act
of 1996, the Commission shall report to the Congress
on the implementation of the program required by
this subsection, and shall annually thereafter advise
the Congress on the amounts collected pursuant to
such program.
'(f)
Evaluation: Within 10 years after
the date the Commission first issues additional
licenses for advanced television services, the Commission
shall conduct an evaluation of the advanced television
services program. Such evaluation shall include--
'(1)
an assessment of the willingness of consumers to
purchase the television receivers necessary to receive
broadcasts of advanced television services;
'(2)
an assessment of alternative uses, including public
safety use, of the frequencies used for such broadcasts;
and
'(3)
the extent to which the Commission has been or will
be able to reduce the amount of spectrum assigned
to licensees.
'(g)
Definitions: As used in this section:
'(1)
Advanced television services: The
term 'advanced television services' means television
services provided using digital or other advanced
technology as further defined in the opinion, report,
and order of the Commission entitled 'Advanced Television
Systems and Their Impact Upon the Existing Television
Broadcast Service', MM Docket 87-268, adopted September
17, 1992, and successor proceedings.
'(2)
Designated frequencies: The term
'designated frequency' means each of the frequencies
designated by the Commission for licenses for advanced
television services.
'(3)
High definition television: The
term 'high definition television' refers to systems
that offer approximately twice the vertical and
horizontal resolution of receivers generally available
on the date of enactment of the Telecommunications
Act of 1996, as further defined in the proceedings
described in paragraph (1) of this subsection.'.
SEC.
202. BROADCAST OWNERSHIP.
(a)
National Radio Station Ownership Rule Changes
Required: The Commission shall modify section
73.3555 of its regulations (47 C.F.R. 73.3555) by
eliminating any provisions limiting the number of
AM or FM broadcast stations which may be owned or
controlled by one entity nationally.
(b)
Local Radio Diversity:
(1)
Applicable caps: The Commission
shall revise section 73.3555(a) of its regulations
(47 C.F.R. 73.3555) to provide that--
(A)
in a radio market with 45 or more commercial radio
stations, a party may own, operate, or control up
to 8 commercial radio stations, not more than 5
of which are in the same service (AM or FM);
(B)
in a radio market with between 30 and 44 (inclusive)
commercial radio stations, a party may own, operate,
or control up to 7 commercial radio stations, not
more than 4 of which are in the same service (AM
or FM);
(C)
in a radio market with between 15 and 29 (inclusive)
commercial radio stations, a party may own, operate,
or control up to 6 commercial radio stations, not
more than 4 of which are in the same service (AM
or FM); and
(D)
in a radio market with 14 or fewer commercial radio
stations, a party may own, operate, or control up
to 5 commercial radio stations, not more than 3
of which are in the same service (AM or FM), except
that a party may not own, operate, or control more
than 50 percent of the stations in such market.
(2)
Exception: Notwithstanding any
limitation authorized by this subsection, the Commission
may permit a person or entity to own, operate, or
control, or have a cognizable interest in, radio
broadcast stations if the Commission determines
that such ownership, operation, control, or interest
will result in an increase in the number of radio
broadcast stations in operation.
(c)
Television Ownership Limitations:
(1)
National ownership limitations:
The Commission shall modify its rules for multiple
ownership set forth in section 73.3555 of its regulations
(47 C.F.R. 73.3555)--
(A)
by eliminating the restrictions on the number of
television stations that a person or entity may
directly or indirectly own, operate, or control,
or have a cognizable interest in, nationwide; and
(B)
by increasing the national audience reach limitation
for television stations to 35 percent.
(2)
Local ownership limitations: The
Commission shall conduct a rulemaking proceeding
to determine whether to retain, modify, or eliminate
its limitations on the number of television stations
that a person or entity may own, operate, or control,
or have a cognizable interest in, within the same
television market.
(d)
Relaxation of One-To-A-Market:
With respect to its enforcement of its one-to-a-market
ownership rules under section 73.3555 of its regulations,
the Commission shall extend its waiver policy to
any of the top 50 markets, consistent with the public
interest, convenience, and necessity.
(e)
Dual Network Changes: The Commission
shall revise section 73.658(g) of its regulations
(47 C.F.R. 658(g)) to permit a television broadcast
station to affiliate with a person or entity that
maintains 2 or more networks of television broadcast
stations unless such dual or multiple networks are
composed of--
(1)
two or more persons or entities that, on the date
of enactment of the Telecommunications Act of 1996,
are 'networks' as defined in section 73.3613(a)(1)
of the Commission's regulations (47 C.F.R. 73.3613(a)(1));
or
(2)
any network described in paragraph (1) and an English-language
program distribution service that, on such date,
provides 4 or more hours of programming per week
on a national basis pursuant to network affiliation
arrangements with local television broadcast stations
in markets reaching more than 75 percent of television
homes (as measured by a national ratings service).
(f)
Cable Cross Ownership:
(1)
Elimination of restrictions: The
Commission shall revise section 76.501 of its regulations
(47 C.F.R. 76.501) to permit a person or entity
to own or control a network of broadcast stations
and a cable system.
(2)
Safeguards against discrimination:
The Commission shall revise such regulations if
necessary to ensure carriage, channel positioning,
and nondiscriminatory treatment of nonaffiliated
broadcast stations by a cable system described in
paragraph (1).
(g)
Local Marketing Agreements: Nothing
in this section shall be construed to prohibit the
origination, continuation, or renewal of any television
local marketing agreement that is in compliance
with the regulations of the Commission.
(h)
Further Commission Review: The
Commission shall review its rules adopted pursuant
to this section and all of its ownership rules biennially
as part of its regulatory reform review under section
11 of the Communications Act of 1934 and shall determine
whether any of such rules are necessary in the public
interest as the result of competition. The Commission
shall repeal or modify any regulation it determines
to be no longer in the public interest.
(i)
Elimination of Statutory Restriction:
Section 613(a) (47 U.S.C. 533(a)) is amended--
(1)
by striking paragraph (1);
(2)
by redesignating paragraph (2) as subsection (a);
(3)
by redesignating subparagraphs (A) and (B) as paragraphs
(1) and (2), respectively;
(4)
by striking 'and' at the end of paragraph (1) (as
so redesignated);
(5)
by striking the period at the end of paragraph (2)
(as so redesignated) and inserting '; and'; and
(6)
by adding at the end the following new paragraph:
'(3)
shall not apply the requirements of this subsection
to any cable operator in any franchise area in which
a cable operator is subject to effective competition
as determined under section 623(l).'.
SEC.
203. TERM OF LICENSES.
Section
307(c) (47 U.S.C. 307(c)) is amended to read as
follows:
'(c)
Terms of Licenses:
'(1)
Initial and renewal licenses: Each
license granted for the operation of a broadcasting
station shall be for a term of not to exceed 8 years.
Upon application therefor, a renewal of such license
may be granted from time to time for a term of not
to exceed 8 years from the date of expiration of
the preceding license, if the Commission finds that
public interest, convenience, and necessity would
be served thereby. Consistent with the foregoing
provisions of this subsection, the Commission may
by rule prescribe the period or periods for which
licenses shall be granted and renewed for particular
classes of stations, but the Commission may not
adopt or follow any rule which would preclude it,
in any case involving a station of a particular
class, from granting or renewing a license for a
shorter period than that prescribed for stations
of such class if, in its judgment, the public interest,
convenience, or necessity would be served by such
action.
'(2)
Materials in application: In order
to expedite action on applications for renewal of
broadcasting station licenses and in order to avoid
needless expense to applicants for such renewals,
the Commission shall not require any such applicant
to file any information which previously has been
furnished to the Commission or which is not directly
material to the considerations that affect the granting
or denial of such application, but the Commission
may require any new or additional facts it deems
necessary to make its findings.
'(3)
Continuation pending decision:
Pending any hearing and final decision on such an
application and the disposition of any petition
for rehearing pursuant to section 405, the Commission
shall continue such license in effect.'.
SEC.
204. BROADCAST LICENSE RENEWAL PROCEDURES.
(a)
Renewal Procedures:
(1)
Amendment: Section 309 (47 U.S.C.
309) is amended by adding at the end thereof the
following new subsection:
'(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.'.
(2)
Conforming amendment: Section 309(d)
(47 U.S.C. 309(d)) is amended by inserting after
'with subsection (a)' each place it appears the
following: '(or subsection (k) in the case of renewal
of any broadcast station license)'.
(b)
Summary of Complaints on Violent Programming:
Section 308 (47 U.S.C. 308) is amended by adding
at the end the following new subsection:
'(d)
Summary of Complaints: Each applicant
for the renewal of a commercial or noncommercial
television license shall attach as an exhibit to
the application a summary of written comments and
suggestions received from the public and maintained
by the licensee (in accordance with Commission regulations)
that comment on the applicant's programming, if
any, and that are characterized by the commentor
as constituting violent programming.'.
(c)
Effective Date: The amendments
made by this section apply to applications filed
after May 1, 1995.
SEC.
205. DIRECT BROADCAST SATELLITE SERVICE.
(a)
DBS Signal Security: Section 705(e)(4)
(47 U.S.C. 605(e)(4)) is amended by inserting 'or
direct-to-home satellite services,' after 'programming,'.
(b)
FCC Jurisdiction Over Direct-to-Home Satellite
Services: Section 303 (47 U.S.C. 303) is
amended by adding at the end thereof the following
new subsection:
'(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.'.
SEC.
206. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
Part
II of title III is amended by inserting after section
364 (47 U.S.C. 362) the following new section:
'SEC.
365. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
'Notwithstanding
any provision of this Act or any other provision
of law or regulation, a ship documented under the
laws of the United States operating in accordance
with the Global Maritime Distress and Safety System
provisions of the Safety of Life at Sea Convention
shall not be required to be equipped with a radio
telegraphy station operated by one or more radio
officers or operators. This section shall take effect
for each vessel upon a determination by the United
States Coast Guard that such vessel has the equipment
required to implement the Global Maritime Distress
and Safety System installed and operating in good
working condition.'.
SEC.
207. RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.
Within
180 days after the date of enactment of this Act,
the Commission shall, pursuant to section 303 of
the Communications Act of 1934, promulgate regulations
to prohibit restrictions that impair a viewer's
ability to receive video programming services through
devices designed for over-the-air reception of television
broadcast signals, multichannel multipoint distribution
service, or direct broadcast satellite services.
