109th CONGRESS
2d Session
S. 2686
To amend the Communications Act of 1934 and for other purposes.
IN THE SENATE OF THE UNITED STATES
May 1, 2006
Mr. STEVENS (for himself and Mr. INOUYE) introduced the following bill;
which was read twice and referred to the Committee on Commerce, Science,
and Transportation
A BILL
To amend the Communications Act of 1934 and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Communications, Consumer's Choice, and Broadband
Deployment Act of 2006'.
SEC. 2. AMENDMENT OF COMMUNICATIONS ACT OF 1934.
Except as otherwise expressly provided, whenever in this title an amendment
or repeal is expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be made to a section
or other provision of the Communications Act of 1934 (47 U.S.C. 151 et seq.).
SEC. 3. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 2. Amendment of Communications Act of 1934.
Sec. 3. Table of contents.
TITLE I--WAR ON TERRORISM
Subtitle A--Call Home
Sec. 103. Telephone rates for members of armed forces deployed abroad.
Sec. 102. Repeal of existing authorization.
Subtitle B--Interoperability
Sec. 151. Interoperable emergency communications.
TITLE II--UNIVERSAL SERVICE REFORM; INTERCONNECTION
Subtitle A--Contributions to Universal Service
Sec. 211. Stabilization of universal service funding.
Sec. 212. Telecommunications services for libraries.
Sec. 213. Modification of rural video service exemption.
Sec. 214. Interconnection.
Subtitle B--Distributions From Universal Service
Sec. 251. Broadband requirement.
Sec. 252. Establishment of broadband account within universal service
fund.
Sec. 253. Eligible telecommunications carrier guidelines.
Sec. 255. Phantom traffic.
Sec. 257. Waste, fraud, and abuse.
TITLE III--STREAMLINING FRANCHISING PROCESS
Subtitle A--Updating the 1934 Act and Leveling the Regulatory Playing
Field
Sec. 311. Application of title VI to video services and video service
providers.
Sec. 312. Purpose; franchise applications; scope.
Sec. 313. Standard franchise application form.
Subtitle B--Streamlining the Provision of Video Services
Sec. 331. Franchise requirements and related provisions.
Sec. 332. Renewal; revocation.
Sec. 333. PEG and institutional network obligations.
Sec. 334. Services, facilities, and equipment.
Sec. 337. Shared facilities.
Sec. 338. Consumer protection and customer service.
Subtitle C--Miscellaneous and Conforming Amendments
Sec. 351. Miscellaneous amendments.
Subtitle D--Effective Dates and Transition Rules.
Sec. 381. Effective dates; phase-in.
TITLE IV--VIDEO CONTENT
Subtitle A--Sports Freedom
Sec. 402. Development of competition and diversity in video programming
distribution.
Subtitle B--National Satellite
Sec. 431. Availability of certain licensed services in noncontiguous States.
Subtitle C--Video and Audio Flag
Sec. 452. Digital video broadcasting.
Sec. 453. Digital audio broadcasting.
Sec. 454. Digital Audio Review Board.
TITLE V--MUNICIPAL BROADBAND
Sec. 502. State regulation of municipal broadband networks.
TITLE VI--WIRELESS INNOVATION NETWORKS
Sec. 602. Eligible television spectrum made available for wireless use.
TITLE VII--DIGITAL TELEVISION
Sec. 701. Analog and digital television sets and converter boxes; consumer
education and requirements to reduce the government cost of the converter
box program.
Sec. 702. Digital stream requirement for the blind.
Sec. 703. Status of international coordination.
TITLE VIII--PROTECTING CHILDREN
Sec. 801. Video transmission of child pornography.
TITLE IX--INTERNET NEUTRALITY
Sec. 901. Neutral networks for consumers.
TITLE X--MISCELLANEOUS
Sec. 1001. Commissioner participation in forums and meetings.
TITLE I--WAR ON TERRORISM
Subtitle A--Call Home
SEC. 103. TELEPHONE RATES FOR MEMBERS OF ARMED FORCES DEPLOYED ABROAD.
(a) IN GENERAL- The Federal Communications Commission shall take such action
as may be necessary to reduce the cost of calling home for Armed Forces
personnel who are stationed outside the United States under official military
orders or deployed outside the United States in support of military operations,
training exercises, or other purposes as approved by the Secretary of Defense,
including the reduction of such costs through the waiver of government fees,
assessments, or other charges for such calls. The Commission may not regulate
rates in order to carry out this section.
(b) FACTORS TO CONSIDER- In taking the action described in subsection (a),
the Commission, in coordination with the Department of Defense and the Department
of State, shall--
(1) evaluate and analyze the costs to Armed Forces personnel of such telephone
calls to and from American military bases abroad;
(2) evaluate methods of reducing the rates imposed on such calls, including
deployment of new technology such as voice over Internet protocol or other
Internet protocol technology;
(3) encourage telecommunications carriers (as defined in section 3(44)
of the Communications Act of 1934 (47 U.S.C. 153(44))) to adopt flexible
billing procedures and policies for Armed Forces personnel and their dependents
for telephone calls to and from such Armed Forces personnel; and
(4) seek agreements with foreign governments to reduce international surcharges
on such telephone calls.
(c) DEFINITIONS- In this section:
(1) ARMED FORCES- The term `Armed Forces' has the meaning given that term
by section 2101(2) of title 5, United States Code.
(2) MILITARY BASE- The term `military base' includes official duty stations
to include vessels, whether such vessels are in port or underway outside
of the United States.
SEC. 102. REPEAL OF EXISTING AUTHORIZATION.
Section 213 of the Telecommunications Authorization Act of 1992 (47 U.S.C.
201 note) is repealed.
Subtitle B--Interoperability
SEC. 151. INTEROPERABLE EMERGENCY COMMUNICATIONS.
(a) IN GENERAL- Section 3006 of Public Law 109-171 (47 U.S.C. 309 note)
is amended by redesignating subsection (d) as subsection (g) and by inserting
after subsection (c) the following:
`(d) Interoperable Communications System Equipment Deployment-
`(1) IN GENERAL- The Assistant Secretary shall allocate a portion of the
funds made available to carry out this section to make interoperable communications
system equipment grants for equipment that can utilize reallocated public
safety spectrum.
`(2) ALLOCATION OF FUNDS- The Secretary shall allocate the funds as follows:
`(A) A portion to be equally distributed to each State.
`(B) A majority to be distributed to the States based on the threat
and risk factors used by the Secretary of Homeland Security for the
purposes of allocating discretionary grants under the heading `OFFICE
FOR DOMESTIC PREPAREDNESS, STATE AND LOCAL PROGRAMS' in the Department
of Homeland Security Appropriations Act, 2006.
`(3) ELIGIBILITY- A State may not receive funds allocated to it under
paragraph (2) unless it has established a statewide interoperable communications
plan approved by the Secretary of Homeland Security.
`(4) USE OF FUNDS- A State shall use any funds received under this subsection
for the purchase of equipment and infrastructure that complies with SAFECOM
guidance, including any standards that may be referenced by SAFECOM guidance.
`(e) Coordination and Planning Grant Initiative-
`(1) IN GENERAL- The Assistant Secretary, in consultation with the Secretary
of Homeland Security, shall allocate a portion of the funds made available
to carry out this section for emergency communication and coordination
planning grants. The grants shall supplement, and be in addition to, any
Federal funds otherwise made available by grant or otherwise to the States
for emergency planning.
`(2) ALLOCATION- The Secretary shall allocate funds under this subsection
as follows:
`(A) A portion shall be equally distributed to each State for use by
State and local governments; and
`(B) A majority shall be distributed to the States based on the threat
and risk factors used by the Secretary of Homeland Security for the
purposes of allocating discretionary grants under the heading `OFFICE
FOR DOMESTIC PREPAREDNESS, STATE AND LOCAL PROGRAMS' in the Department
of Homeland Security Appropriations Act, 2006.
`(3) COORDINATION AND PLANNING GUIDELINES- Except as provided in paragraph
(4), a State shall use its emergency communication coordination and planning
grant to establish a statewide plan consistent with the State communications
interoperability planning methodology developed by the SAFECOM program
within the Department of Homeland Security or a regional plan established
pursuant to a regional planning agency consistent with this section. In
establishing the plan, the Governor or the Governor's designee shall consult
with the Secretary of Homeland Security or the Secretary's designee. A
State shall submit its statewide plan to the Public Safety and Homeland
Security Bureau of the Federal Communications Commission for approval
and the Secretary of Homeland Security for approval.
`(f) Strategic Technology Reserves Initiative-
`(1) IN GENERAL- The Assistant Secretary, in consultation with the Secretary
of Homeland Security, shall allocate a portion the funds made available
to carry out this section to establish and implement a strategic technology
reserve to pre-position or secure communications equipment in advance
for immediate deployment in an emergency or major disaster (as defined
in section 102(2) of Public Law 93-288 (42 U.S.C. 5122)).
`(2) REQUIREMENTS AND CHARACTERISTICS- A reserve established under paragraph
(1) shall--
`(A) be capable of re-establishing communications when existing infrastructure
is damaged or destroyed in a major disaster or other event; and
`(B) include appropriate current, widely-used equipment, such as Land
Mobile Radio Systems, cellular and satellite telephones, Cells On Wheels,
Cells On Light Trucks, backup batteries, generators, fuel, and computers.
`(3) ADDITIONAL CHARACTERISTICS- Portions of the reserve may be virtual
and may include items donated on an in-kind contribution basis.
`(4) CONSULTATION- In developing the reserve, the Secretary shall seek
advice from the Secretary of Defense and the Secretary of Homeland Security,
as well as from communications providers, first responders, emergency
managers, and State, local, and tribal governments.
`(5) ALLOCATION AND USE OF FUNDS- The Secretary shall allocate--
`(A) a portion of the reserve's funds for block grants to States to
enable each State to establish a strategic technology reserve within
its borders in a secure location to allow immediate deployment; and
`(B) a portion of the reserve's funds for regional Federal strategic
technology reserves to facilitate any Federal response when necessary,
to be held in secure locations around the country for immediate deployment
to every region of the country including remote areas and noncontiguous
States.
`(g) Common Standards; Applications-
`(1) COMMON STANDARDS- In carrying out this section, the Assistant Secretary,
in cooperation with the Secretary of Homeland Security shall develop and
implement common standards to the greatest extent practicable.
`(2) APPLICATIONS- To be eligible for assistance under the programs established
in this section, each State shall submit an application, at such time,
in such form, and containing such information as the Assistant Secretary
may require, including--
`(A) a detailed explanation of how assistance received under the program
would be used to improve local communications interoperability and ensure
interoperability with other appropriate Federal, State, local, tribal,
and regional agencies in a regional or national emergency; and
`(B) assurance that the equipment and system would--
`(i) not be incompatible with the communications architecture developed
under section 7303(a)(1)(E) of the Intelligence Reform Act of 2004;
`(ii) meet any voluntary consensus standards developed under section
7303(a)(1)(D) of that Act; and
`(iii) be consistent with the common grant guidance established under
section 7303(a)(1)(H) of that Act.'.
(b) SEAMLESS MOBILITY- Within 180 days of the enactment of this Act, the
Federal Communications Commission shall establish a streamlined process
to review and approve deployment of multi-mode devices that permit communication
across multiple platforms, facilities, or networks notwithstanding any other
provision of law.
TITLE II--UNIVERSAL SERVICE REFORM; INTERCONNECTION
SEC. 201. SHORT TITLE.
This title may be cited as the `Internet and Universal Service Act of 2006'.
Subtitle A--Contributions to Universal Service
SEC. 211. STABILIZATION OF UNIVERSAL SERVICE FUNDING.
(a) ENSURING AN EQUITABLE CONTRIBUTION BASE FOR UNIVERSAL SERVICE-
(1) IN GENERAL- Section 254(d) (47 U.S.C. 254(d)) is amended to read as
follows:
`(d) Universal Service Support Contributions-
`(1) Contribution mechanism-
`(A) IN GENERAL- Each communications service provider shall contribute
as provided in this subsection to support universal service.
`(B) REQUIREMENTS- The Commission shall ensure that the contributions
required by this subsection are--
`(i) applied in a manner that is as competitively and technologically
neutral as possible; and
`(ii) specific, predictable, and sufficient to sustain the funding
of networks used to preserve and advance universal service.
`(C) ADJUSTMENTS- The Commission may adjust the contribution for providers
for their low volume residential customers.
`(2) EXEMPTIONS- The Commission may exempt a communications service provider
or any class of communications service providers from the requirements
of this subsection--
`(A) if the services of such a provider are limited to such an extent
that the level of its contributions would be de minimis; or
`(B) with respect to communications service provided pursuant to the
Commission's Lifeline Assistance Program.
`(3) Contribution assessment flexibility-
`(A) METHODOLOGY- To achieve the principles in this section, the Commission
may base universal service contributions upon--
`(i) revenue from communications service;
`(ii) working phone numbers or any other identifier protocol or connection
to the networks; or
`(B) USE OF MORE THAN 1 METHODOLOGY- If no single methodology employed
under subparagraph (A) achieves the principles described in this subsection,
the Commission may employ a combination of any such methodologies.
`(C) REMOVAL OF INTERSTATE/INTRASTATE DISTINCTION- For the purpose of
universal service contributions, the Commission may assess the interstate,
intrastate, or international portions of communications service.
`(D) GROUP PLAN DISCOUNT- If the Commission utilizes a methodology under
subparagraph (A) based in whole or in part on working phone numbers,
it may provide a discount for up to 3 additional phones provided under
a group or family pricing plan.
`(E) PRESERVATION OF UNIVERSAL SERVICE FUNDS- Nothing in this subsection
precludes a State from establishing or maintaining State universal service
pursuant to subsection (f).
`(4) NON-DISCRIMINATORY ELIGIBILITY REQUIREMENT- A communications service
provider is not exempted from the requirements of this subsection solely
on the basis that such provider is not eligible to receive support under
this section.
`(A) IN GENERAL- A communications service provider that contributes
to universal service under this section may place on any customer bill
a separate line item charge that does not exceed the amount for the
customer that the provider is required to contribute under this subsection
that shall be identified as the `Federal Universal Service Fee'.
`(B) LIMITATION- If such a provider bills customers for administrative
costs associated with its collection and remission of universal service
fees under this subsection--
`(i) the administrative costs shall be a separate line item charge
on the bill and shall be identified as `Optional Company Administrative
Fee'; and
`(ii) the amount billed for such costs may not exceed the estimated
direct costs attributable to such administrative costs.
`(7) DEFINITIONS- In this subsection:
`(A) BROADBAND SERVICE- The term `broadband service' means any service
used for transmission of information of a user's choosing with a transmission
speed of at least 200 kilobits per second in at least 1 direction, regardless
of the transmission medium or technology employed, that connects to
the public Internet for a fee directly--
`(ii) to such classes of users as to be effectively available directly
to the public.
`(B) COMMUNICATIONS SERVICE- The term `communications service' means
telecommunications service, broadband service, or IP-enabled voice service
(whether offered separately or as part of a bundle of services).
`(C) IP-ENABLED VOICE SERVICE- The term `IP-enabled voice service' means
the provision of real-time 2-way voice communications offered to the
public, or such classes of users as to be effectively available to the
public, transmitted through customer premises equipment using TCP/IP
protocol, or a successor protocol, for a fee (whether part of a bundle
of services or separately) with 2-way interconnection capability such
that the service can originate traffic to, and terminate traffic from,
the public switched telephone network.'.
(2) CONFORMING AMENDMENT- Section 254(b)(4) (47 U.S.C. 254(b)(4)) is amended
by striking `telecommunications services' and inserting `communications
services (as defined in subsection (d)(7)(B)'.
(b) Proper Accounting of Universal Service Contributions-
(1) FROM ALL BUDGETS- Notwithstanding any other provision of law, the
receipts and disbursements of universal service under section 254 of the
Communications Act of 1934 (47 U.S.C. 254) shall not be counted as new
budget authority, outlays, receipts, or deficit or surplus for purposes
of--
(A) the budget of the United States Government as submitted by the President;
(B) the Congressional budget;
(C) the Balanced Budget and Emergency Deficit Control Act of 1985; or
(D) any other statute requiring budget sequesters.
(2) ADDITIONAL EXEMPTIONS- Section 1341, subchapter II of chapter 15,
and sections 3302, 3321, 3322, and 3325 of title 31, United States Code,
shall not apply to--
(A) the collection and receipt of universal service contributions, including
the interest earned on such contributions; or
(B) disbursements or other obligations authorized by the Commission
under section 254 of the Communications Act of 1934 (47 U.S.C. 254).
(c) FINANCIAL MANAGEMENT- The Federal Communications Commission and the
Administrator of the Universal Service Fund--
(1) shall account for the financial transactions of the Fund in accordance
with generally accepted accounting principles for Federal agencies;
(2) shall maintain the accounts of the Fund in accordance with the United
States Government Standard General Ledger; and
(3) may invest unexpended balances only in Federal securities (as defined
in section 113(b)(5) of Office of Management and Budget circular OMB A-11).
(d) RULEMAKING- Not later than 180 days after the date of enactment of this
Act, the Federal Communications Commission shall issue a rule to implement
section 254(d) of the Communications Act of 1934 (47 U.S.C. 254(d)) as amended
by subsection (a).
SEC. 212. TELECOMMUNICATIONS SERVICES FOR LIBRARIES.
(a) IN GENERAL- Section 254(h)(4) (47 U.S.C. 254(h)(4)) is amended to read
as follows:
`(4) CERTAIN USERS NOT ELIGIBLE- Notwithstanding any other provision of
this subsection, the following entities are not entitled to preferential
rates or treatment as required by this subsection:
`(A) An entity operated as a for-profit business.
`(B) A school described in paragraph (7)(A) with an endowment of more
than $50,000,000.
`(C) A library or library consortium not eligible for assistance under
the Library Services and Technology Act (20 U.S.C. 9101 et seq.)--
`(i) from a State library administrative agency; or
`(ii) funded by a grant under section 261 of the Library Services
and Technology Act (20 U.S.C. 9161) from an Indian tribe or other
organization.'.
(b) FUNDING- Section 254(h)(1) (47 U.S.C. 254(h)(1)) is amended by adding
at the end the following:
`(C) FUNDING- The obligations under, and administrative costs of, this
subsection for any funding year may not exceed the sum of--
`(i) the annual program funding cap established by the Commission;
and
`(ii) any unobligated balances from prior funding years.'.
(c) AMERICAN COMMUNITY SURVEY RESIDENTIAL INTERNET ACCESS QUESTION- The
Secretary of Commerce, in consultation with the Federal Communications Commission,
shall expand the American Community Survey conducted by the Bureau of the
Census to elicit information for residential households, including those
located on native lands, as to what technology such households use to access
the Internet from home.
SEC. 213. MODIFICATION OF RURAL VIDEO SERVICE EXEMPTION.
(a) RURAL TELEPHONE COMPANIES- Section 251(f)(1) (47 U.S.C. 251(f)(1)) is
amended--
(1) by striking `Subsection' in subparagraph (A) and inserting `Except
as provided in subparagraph (B), subsection';
(2) by striking `interconnection, services, or network elements,' in subparagraph
(A) and inserting `services or network elements,';
(3) by striking `(under subparagraph (B))' in subparagraph (A) and inserting
`(under subparagraph (C))'
(4) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and
(D);
(5) by inserting after subparagraph (A) the following:
`(B) INTERCONNECTION- Notwithstanding subparagraph (A), subsection (c)(2)
of this section shall not apply to a rural telephone company until such
company has received a bona fide request for interconnection.';
(6) by striking `exemption under subparagraph (A).' in subparagraph (C),
as redesignated, and inserting `exemption.'; and
(7) by striking subparagraph (D) as redesignated.
(b) OTHER RURAL CARRIERS- Section 251(f)(2) (47 U.S.C. 251(f)(2)) is amended
by inserting `(other than subsection (c)(2))' after `subsection (b) or (c)'.
SEC. 214. INTERCONNECTION.
Title VII (47 U.S.C. 601 et seq.) is amended by adding after section 714
the following new section:
`SEC. 715. RIGHTS AND OBLIGATIONS OF IP-ENABLED VOICE SERVICE PROVIDERS.
`(a) In General- An IP-enabled voice service provider shall have the same
rights, duties, and obligations as a requesting telecommunications carrier
under sections 251 and 252, if the provider elects to assert such rights.
`(b) Disabled Services- An IP-enabled voice service provider shall have
the same rights, duties, and obligations as a telecommunications carrier
under sections 225, 255, and 710. In revising the Commission's regulations
under such sections to carry out this subsection, the Commission shall consider
whether a service or equipment is marketed as a substitute for telecommunications
service, telecommunications equipment, customer premises equipment, or telecommunications
relay services.
`(c) IP-ENABLED VOICE SERVICE DEFINED- In this section, the term `IP-enabled
voice service' means the provision of real-time 2-way voice communications
offered to the public, or such classes of users as to be effectively available
to the public, transmitted through customer premises equipment using TCP/IP
protocol, or a successor protocol, for a fee (whether part of a bundle of
services or separately) with interconnection capability such that the service
can originate traffic to, or terminate traffic from, the public switched
telephone network.'.
Subtitle B--Distributions From Universal Service
SEC. 251. BROADBAND REQUIREMENT.
Section 214(e) (47 U.S.C. 214(e)) is amended by adding at the end the following:
`(7) Broadband Service Requirement-
`(A) IN GENERAL- Notwithstanding paragraph (1), an eligible communications
carrier may not receive universal service support under section 254
more than 60 months after the date of enactment of the Internet and
Universal Service Act of 2006 if it has not deployed broadband service
within its service area before the end of that 60-month period unless
it receives a waiver under subparagraph (B).
`(i) APPLICATION- In order to receive a waiver under this subparagraph,
an eligible communications carrier shall submit an application to
the Commission.
`(ii) COST OF DEPLOYMENT- If an eligible communications carrier demonstrates
to the satisfaction of the Commission that the cost per line of deploying
such broadband service is at least 3 times the average cost per line
of deploying such broadband service for all eligible communications
carriers receiving universal service support, the Commission shall
waive the application of subparagraph (A) to that eligible communications
carrier.
`(iii) OTHER FACTORS- If an eligible communications carrier demonstrates
to the satisfaction of the Commission that the deployment and provision
of such broadband service is not technically feasible or would materially
impair the carrier's ability to continue to provide local exchange
service or broadband service throughout its service area, the Commission
may waive the application of subparagraph (A) to that eligible communications
carrier.
`(iv) DEEMED APPROVAL- If the Commission fails to act on a waiver
request within 60 calendar days after it receives a completed application
for the waiver, the waiver shall be deemed to be granted. If the Commission
requests additional information from the eligible communications carrier,
the 60-day period shall be tolled beginning on the date on which request
is received by the carrier and ending on the date on which the Commission
receives the information requested.
`(v) TERM; RENEWAL- A waiver under this subparagraph--
`(I) shall be for a period of not more than 2 years; and
`(II) may be renewed, upon application, by the Commission if the
applicant demonstrates that it is eligible for a waiver under clause
(ii) or (iii).
`(C) NOTIFICATION OF STATE COMMISSION- Whenever the Commission grants
a waiver to an eligible communications carrier under subparagraph (B)
that has been designated under paragraph (2) by a State commission,
the Commission shall notify the State commission of the waiver.
`(D) DEFINITIONS- In this paragraph:
`(i) BROADBAND SERVICE- The term `broadband service' means any service
used for transmission of information of a user's choosing with a transmission
speed of at least 3 megabits per second in at least 1 direction, regardless
of the transmission medium or technology employed, that connects to
the public Internet for a fee directly--
`(II) to such classes of users as to be effectively available directly
to the public.
`(ii) ELIGIBLE COMMUNICATIONS CARRIER- The term `eligible communications
carrier' means an entity designated under paragraph (2), (3), or (6).
Any reference to `eligible telecommunications carrier' in this section
is deemed also to refer to `eligible communications carrier'.'.
SEC. 252. ESTABLISHMENT OF BROADBAND ACCOUNT WITHIN UNIVERSAL SERVICE
FUND.
Part I of title II (47 U.S.C. 201 et seq.) is amended by inserting after
section 254 the following:
`SEC. 254A. BROADBAND FOR UNSERVED AREAS ACCOUNT.
`(a) Account Established-
`(1) IN GENERAL- There shall be, within the universal service fund established
pursuant to section 254, a separate account to be known as the `Broadband
for Unserved Areas Account'.
`(2) PURPOSE- The purpose of the Account is to provide financial assistance
for the deployment of broadband service to unserved areas throughout the
United States.
`(1) IN GENERAL- Within 180 days after the date of enactment of the Internet
and Universal Service Act of 2006, the Commission shall issue rules establishing--
`(A) guidelines for determining which areas may be considered to be
unserved areas for purposes of this section;
`(B) criteria for determining which facilities-based providers of broadband
service, and which projects, are eligible for support from the Account;
`(C) procedural guidelines for awarding assistance from the Account
on a merit-based and competitive basis;
`(D) guidelines for application procedures, accounting and reporting
requirements, and other appropriate fiscal controls for assistance made
available from the Account; and
`(E) a procedure for making funds in the Account available among the
several States on an equitable basis.
`(A) ELIGIBILITY OF PROVIDER- A satellite service provider shall be
considered to be a facility-based provider eligible for support from
the Account.
`(B) ELIGIBILITY OF CPE PROJECTS- The deployment of satellite customer
premises equipment may be considered to be a project eligible for support
from the Account.
`(C) DESIGNATION OF LIGHTLY SERVED AREAS- The availability of broadband
service by satellite in an area shall not preclude the designation of
that area as an unserved area if the Commission determines that subscribership
to satellite service in the area is de minimis.
`(D) MULTIPLE AREAS WITHIN STATE- For purposes of this section, there
may be more than 1 unserved area within a State.
`(3) REPORT- The Commission shall transmit an annual report to the Senate
Committee on Commerce, Science, and Transportation and the House of Representatives
Committee on Energy and Commerce making recommendations for an increase
or decrease, if necessary, in the amounts credited to the account under
this section.
`(1) ANNUAL AMOUNT- Amounts obligated or expended under subsection (b)
for any fiscal year may not exceed $500,000,000.
`(2) USE OF FUNDS- To the extent that the full amount in the account is
not obligated for financial assistance under this section within a fiscal
year, any unobligated funds shall be used to support universal service
under section 254.
`(3) SUPPORT LIMITED TO FACILITIES-BASED SINGLE PROVIDER PER UNSERVED
AREA- Assistance under this section may be provided only to--
`(A) facilities-based providers of broadband service; and
`(B) 1 facility-based provider of broadband service in any unserved
area.
`(d) Application With Sections 214, 254, and 410-
`(1) Section 214(e)- Section 214(e) shall not apply to the Broadband for
Unserved Areas Account.
`(2) SECTION 254- Section 254 shall be applied to the Broadband for Unserved
Areas Account--
`(i) subsections (a) and (e) thereof; and
`(ii) any other provision thereof determined by the Commission to
be inappropriate or inapplicable to implementation of this section;
and
`(B) by reconciling, to the maximum extent feasible and in accordance
with guidelines prescribed by the Commission, the implementation of
this section with the provisions of subsections (h) and (l) thereof.
`(3) SECTION 410- Section 410 shall not apply to the Broadband for Unserved
Areas Account.
`(e) Broadband Service Defined-
`(1) IN GENERAL- In this section, except to the extent revised by the
Commission under paragraph (2), the term `broadband service' means any
service used for transmission of information of a user's choosing with
a transmission speed of at least 500 kilobits per second in at least 1
direction, regardless of the transmission medium or technology employed,
that connects to the public Internet for a fee directly--
`(B) to such classes of users as to be effectively available directly
to the public.
`(2) ANNUAL REVIEW OF TRANSMISSION SPEED- The Commission shall review
the transmission speed component of the definition in subparagraph (A)
no less frequently than once each year and revise that component as appropriate.'.
SEC. 253. ELIGIBILITY GUIDELINES.
Section 214(e) (47 U.S.C. 214(e)), as amended by section 251, is amended
by adding at the end the following:
`(8) ELIGIBILITY GUIDELINES- A common carrier may not be designated as
an eligible communications carrier (as defined in paragraph (7)(D)(ii))
subsection unless it--
`(A) provides a 5-year plan demonstrating how high-cost universal service
support will be used to improve its coverage, service quality, or capacity
in every wire center for which it seeks designation and expects to receive
universal service;
`(B) demonstrates its ability to remain functional in emergency situations;
`(C) demonstrates that it will satisfy consumer protection and service
quality standards;
`(D) offers local usage plans comparable to those offered by the incumbent
local exchange carrier in the areas for which it seeks designation;
and
`(E) acknowledges that it may be required to provide equal access if
all other eligible telecommunications carriers in the designated service
area relinquish their designations pursuant to paragraph (4) of this
subsection.'.
SEC. 254. PRIMARY LINE.
Section 214(e) (47 U.S.C. 214(e)), as amended by section 253, is amended
by adding at the end the following:
`(9) PRIMARY LINE- In implementing the requirements of this Act with respect
to the distribution and use of Federal universal service support the Commission
shall not limit such distribution and use to a single connection or primary
line, and all residential and business lines served by an eligible telecommunications
carrier shall be eligible for Federal universal service support.'.
SEC. 255. PHANTOM TRAFFIC.
Section 254 (47 U.S.C. 254) is amended by adding at the end the following:
`(i) NETWORK TRAFFIC IDENTIFICATION ACCOUNTABILITY STANDARDS-
`(1) NETWORK TRAFFIC IDENTIFICATION STANDARDS- A provider of voice communications
services (including an IP-enabled voice service provider) shall ensure
that all traffic that originates on its network contains sufficient information
to allow for traffic identification by other communications service providers
that transport, transit, or terminate such traffic, including information
on the identity of the originating provider, the calling and called parties,
and such other information as the Commission deems appropriate.
`(2) NETWORK TRAFFIC IDENTIFICATION RULEMAKING- The Commission, in consultation
with the States, shall initiate a single rulemaking no later than 180
days after the date of enactment of the Internet and Universal Service
Act of 2006 to establish rules and enforcement provisions for traffic
identification.
`(3) NETWORK TRAFFIC IDENTIFICATION ENFORCEMENT- The Commission shall
adopt clear penalties, fines, and sanctions for insufficiently labeled
traffic.'.
SEC. 256. RANDOM AUDITS.
Section 214(e) (47 U.S.C. 214(e)), as amended by section 254, is amended
by adding at the end the following:
`(10) AUDITS- Each State commission that designates an eligible communications
provider (as defined in paragraph (7)(D)(ii) and the Commission, with
respect to eligible communications carriers designated by it, shall provide
for random periodic audits of each such carrier with respect to its receipt
and use of universal service support and its relative cost to provide
service compared to other, similarly situated, universal service recipients
based on their respective study areas or service areas.'.
SEC. 257. WASTE, FRAUD, AND ABUSE.
The Federal Communications Commission, in consultation with the Administrator
of the Universal Service Administrative Company, shall--
(1) ensure the integrity and accountability of all programs established
under section 254(h) of the Communications Act of 1934 (47 U.S.C. 254(h));
and
(2) not later than 180 days after the date of enactment of this Act, establish
rules--
(A) identifying appropriate fiscal controls and accountability standards
that shall be applied to the Schools and Libraries Program under section
254(h);
(B) including a memorandum of understanding, or including contractual
relationships, as the Commission determines appropriate, defining the
administrative structure and processes by which the Universal Service
Administrative Company administers the Schools and Libraries Program
under section 254(h);
(C) creating performance goals and measures for the Schools and Libraries
Program under section 254(h), such goals and measures shall be used
by the Commission to determine--
(i) how efficiently and cost-effectively funds are spent in supporting
the telecommunications needs of schools and libraries; and
(ii) areas for improved operations; and
(D) establishing appropriate enforcement actions, including imposition
of sanctions on applicants and vendors who repeatedly and knowingly
violate program rules set forth in section 254(h), such as debarment
from the program for individuals convicted of crimes or held civilly
liable for actions taken in connection with the Schools and Libraries
Program.
TITLE III--STREAMLINING FRANCHISING PROCESS
SEC. 301. SHORT TITLE.
This title may be cited as the `Video Competition and Savings for Consumers
Act of 2006'.
Subtitle A--Updating the 1934 Act and Leveling the Regulatory Playing
Field
SEC. 311. APPLICATION OF TITLE VI TO VIDEO SERVICES AND VIDEO SERVICE
PROVIDERS.
(a) TERMINOLOGY- Title VI (47 U.S.C. 521 et seq.), except for section 602
(47 U.S.C. 522), is amended--
(1) by striking `cable operator' and `cable operators' each place they
appear and inserting `video service provider' or `video service providers',
as appropriate;
(2) by striking `cable service' and `cable services' each place they appear
and inserting `video service' or `video services', respectively;
(3) by striking `cable' each place it appears, except the second place
it appears in section 624(i), and inserting `video service';
(4) by striking `operator' each place it appears and inserting `provider';
(5) by striking `cassette' each place it appears; and
(6) by striking `tape' each place it appears and inserting `copy'.
(b) HEADINGS- Title VI (47 U.S.C. 521 et seq.) is amended--
(1) by striking the heading for title VI and inserting `TITLE VI--VIDEO
SERVICES';
(2) by striking the heading for part II and inserting `PART II--USE
OF VIDEO SERVICES; RESTRICTIONS';
(3) by striking the heading for part III and inserting `PART III--FRANCHISING';
and
(4) striking `CABLE' in the heading for sections 633 and 640 and
inserting `VIDEO SERVICE'.
(1) NEW REGULATIONS- Within 120 days after the date of enactment of this
Act, the Commission shall issue regulations to implement sections 603,
612, 621, and 622 of the Communications Act of 1934, as amended by this
Act.
(2) UPDATING EXISTING REGULATIONS- Within 120 days after the date of enactment
of this Act, the Commission shall issue, as necessary, updated regulations
needed under title VI or other provisions of the Communications Act of
1934 to reflect the amendments made by this Act.
SEC. 312. PURPOSE; FRANCHISE APPLICATIONS; SCOPE.
(a) PURPOSE- Section 601 (47 U.S.C. 521) is amended to read as follows:
`SEC. 601. PURPOSE.
`It is the purpose of this title to establish a comprehensive Federal legal
framework for the franchising of video services that use public rights-of-way.'.
(b) FRANCHISE APPLICATION; SCOPE- Part I of title VI (47 U.S.C. 521 et seq.)
is amended by adding at the end the following:
`SEC. 603. FRANCHISE APPLICATIONS.
`(1) 30-day process- Except as otherwise provided in this subsection,
a franchising authority shall grant a franchise to provide video service
within its franchise area to a video service provider within 30 calendar
days after receiving a franchise application from the video service provider
that is complete except for--
`(A) the franchise fee, as provided by section 622;
`(B) the number of public, educational, or governmental use channels
required by section 611;
`(C) any fee that may be assessed under section 622(b)(5); and
`(D) the point of contact for the franchising authority.
`(2) STANDARDIZED APPLICATION FORM- A video service provider shall use
the standard franchise application form promulgated by the Commission
under section 612.
`(3) RESPONSIBILITIES OF FRANCHISE AUTHORITY- Within 15 calendar days
after receiving a franchise application under paragraph (1), a franchising
authority may--
`(A) complete the application form by providing the information described
in subparagraphs (A), (B), (C) and (D) of paragraph (1) in a manner
that is consistent with the requirements of this title; and
`(B) return the completed application to the video service provider.
`(4) ACCEPTANCE OF TERMS- A franchising agreement shall take effect on
the date on which the completed franchise application is received by the
applicant under paragraph (3)(B) unless the applicant notifies the franchising
authority within 15 calendar days after receipt of the completed franchise
application form that the terms provided are not accepted.
`(5) EXCEPTION- This subsection does not require a franchise authority
to approve or complete an application from a video service provider if
a franchise held by that provider has been revoked under section 625(b)
or 640 by the franchise authority.
`(b) DEEMED APPROVAL- Except as provided in subsection (a)(5), if a franchising
authority fails to act on a franchise application that meets the requirements
of paragraphs (1) and (2) of subsection (a) within the 30-day period, the
franchise application shall be deemed to be granted--
`(1) effective on the 31st day after the franchising authority received
the application;
`(2) for a term of 15 years;
`(3) with a franchise fee equal to the lesser of--
`(A) the fee paid by the cable operator with the most subscribers offering
cable service in the franchise area; or
`(B) 5 percent of gross revenue (determined under section 622); and
`(4) with an obligation to provide the number of public, educational,
or governmental use channels required by section 611.
`(c) PROCEDURE- If an application is not granted within 30 days after its
receipt by a franchising authority because of subsection (a)(5), the applicant
may avail itself of the procedures in section 635 of this Act.
`SEC. 604. NO EFFECT ON STATE LAWS OF GENERAL APPLICABILITY.
`Nothing in this title is intended to affect State or local laws of general
applicability for all businesses, except to the extent that such laws are
inconsistent with this title.
`SEC. 605. DIRECT BROADCAST SATELLITE SERVICE.
`No State or local government may regulate direct broadcast satellite services
(as that term is used in section 335 of this Act).'.
SEC. 313. STANDARD FRANCHISE APPLICATION FORM.
Section 612 (47 U.S.C. 532) is amended to read as follows:
`SEC. 612. STANDARD FRANCHISE AGREEMENT FORM.
`Within 30 days after the date of enactment of the Video Competition and
Savings for Consumers Act of 2006, the Commission shall promulgate a standard
franchise agreement form, the use of which by franchising authorities shall
be mandatory. The franchise application form shall include blank spaces
to be filled in by the video service provider and the franchising authority,
as appropriate, for--
`(1) the name of the video service provider;
`(2) the name and business address of each director and principal executive
officers;
`(3) a point of contact for the video service provider;
`(4) a point of contact for the franchising authority;
`(6) the period during which the franchising agreement shall be in effect;
`(7) the public, educational, or governmental programming to be provided;
`(8) the physical location of the headend; and
`(9) a description of the video service to be provided.'.
SEC. 314. DEFINITIONS.
(a) IN GENERAL- Section 602 (47 U.S.C. 522) is amended--
(1) by striking `cable system' in paragraphs (1) and (9) and inserting
`video service system';
(2) by striking `regulation);' in paragraph (4) and inserting `regulation)
or its equivalent (as determined by the Commission).';
(3) by inserting after paragraph (11) the following:
`(11A) `headend' means the headend of a cable system or video service
system.';
(4) by inserting after paragraph (12) the following:
`(12A) `institutional network' means a communication network that is constructed
or operated by a video service provider cable operator and that is generally
available only to subscribers who are not residential subscribers.';
(5) by striking `cable operator' in paragraph (14) and inserting `video
service provider';
(6) by inserting after paragraph (16) the following:
`(16A) `satellite carrier' means an entity that uses the facilities of
a satellite or satellite service licensed by the Federal Communications
Commission and operates in the Fixed-Satellite Service under part 25 of
title 47 of the Code of Federal Regulations or the Direct Broadcast Satellite
Service under part 100 of title 47 of the Code of Federal Regulations,
to establish and operate a channel of communications for point-to-multipoint
distribution of television station signals, and that owns or leases a
capacity or service on a satellite in order to provide such point-to-multipoint
distribution, except to the extent that such entity provides such distribution
pursuant to tariff under the Communications Act of 1934, other than for
private home viewing.';
(7) by striking `cable service' in paragraph (17) and inserting `video
service';
(8) by striking `cable operator' each place it appears in paragraph (17)
and inserting `video service provider'; and
(9) by inserting after paragraph (20) the following:
`(24) VIDEO SERVICE- The term `video service' means--
`(B) interactive on demand services; or
`(C) other programming services.
`(25) VIDEO SERVICE PROVIDER- The term `video service provider'--
`(A) means a provider of video service that utilizes a public right-of-way
in the provision of such service, including a cable operator; but
`(i) a satellite carrier;
`(ii) any person providing video programming using radio communication
directly to the recipient's premises; or
`(iii) any provider of commercial mobile service (as defined in section
332(d)).'.
(b) STYLISTIC CONSISTENCY- Section 602 (47 U.S.C. 622), as amended by subsection
(a), is amended--
(1) by striking `title--' and inserting `title:';
(2) by redesignating paragraphs (1) through (20) as paragraphs (1) through
(23);
(3) by striking the semicolon at the end of each such paragraph and inserting
a period; and
(4) by inserting after the designation of each such paragraph--
(A) a heading, in a form consistent with the form of the heading of
paragraphs (24) and (25), as added by subsection (a) of this section
consisting of the term defined by such paragraph, or the first term
so defined in the paragraph defines more than 1 term; and
(B) the words `The term'.
Subtitle B--Streamlining the Provision of Video Services
SEC. 331. FRANCHISE REQUIREMENTS AND RELATED PROVISIONS.
(a) GENERAL FRANCHISE REQUIREMENTS- Section 621 (47 U.S.C. 541) is amended--
(1) by striking subsection (a) and inserting the following:
`(1) AWARD OF FRANCHISE- A franchising authority may not--
`(A) grant an exclusive franchise; or
`(B) grant a franchise for a term shorter than 5 years or longer than
15 years.
`(2) Preservation of local government power to manage public rights-of-way;
easements-
`(A) IN GENERAL- Nothing in this title affects the authority of a State
or local government to apply its laws or regulations governing the use
of the public rights of way in a manner that is reasonable, competitively
neutral, nondiscriminatory, and consistent with State statutory police
powers, including permitting, payments for bonds, security funds, letters
of credit, insurance, indemnification, penalties, or liquidated damages
to ensure compliance with such laws and regulations.
`(B) Limitations on permitting fees-
`(i) IN GENERAL- A State or local government may not--
`(I) impose a permitting fee on a video service provider that exceeds
the estimated direct costs incurred by the State or local government
in issuing the permit;
`(II) impose any conditions for market entry or use this section
as a barrier to entry by a video service provider; or
`(III) take any action that would delay the provision of video services
by a video service provider in a local franchise area.
`(ii) RECONCILIATION OF OVERCHARGES- Within 30 days after any re-estimate
of estimated direct costs for purposes of clause (i)(I) that--
`(I) requires a reduction in the permitting fee, the State or local
government shall refund the excess, if any, to the video service
provider; or
`(II) results in an increase in the permitting fee, the video service
provider shall pay the difference between the amount paid and the
increased fee to the State or local government.
`(C) TIMELY ACTION REQUIRED- In managing the public rights-of-way a
State or local government that issues permits or licenses for use of
the public rights-of-way shall act upon any such request for use in
a timely manner.
`(D) NEW ROADS- Nothing in this section shall affect the ability of
a State or local government to impose reasonable limits on access to
public rights-of-way associated with newly constructed roads.
`(E) PREVENTION OF ABUSE OF POWER- If the Commission determines in a
proceeding brought by a video service provider to enforce this subsection
that a franchising authority abused the authority provided by this section
in violation of subparagraph (B), the Commission may award reasonable
attorneys' fees and Commission costs to the video service provider.';
and
(2) by striking paragraph (1) of subsection (b) and inserting `(1) Except
to the extent provided in subsection (f), a video service provider may
not provide video service without a franchise.'.
(b) FRANCHISE FEE- Section 622 (47 U.S.C. 542) is amended--
(1) by striking subsections (a) and (b) and inserting the following:
`(a) IN GENERAL- A franchising authority may impose and collect a franchise
fee from a video service provider that provides video services within the
local franchise area of that authority.
`(1) IN GENERAL- The franchise fee imposed by a franchising authority
under subsection (a) for any 12-month period may not exceed 5 percent
of the video service provider's gross revenue derived in such period.
For purposes of this section, the 12-month period shall be the 12-month
period applicable under the franchise for accounting purposes.
`(2) PREPAID OR DEFERRED PAYMENT ARRANGEMENTS- Nothing in this subsection
prohibits a franchising authority and a video service provider from agreeing
that franchise fees which lawfully could be collected for any such 12-month
period shall be paid on a prepaid or deferred basis, except that the sum
of the fees paid during the term of the franchise may not exceed the amount,
including the time value of money, which would have lawfully been collected
if such fees had been paid per annum.
`(3) FRANCHISING AUTHORITY AND VIDEO SERVICE PROVIDER AGREEMENTS- Nothing
in this section precludes a State or local government and a video service
provider from entering into a voluntary commercial agreement, whereby
in consideration for a mutually agreed upon reduction in the franchise
fee under paragraph (1), the video service provider makes available to
the local unit of government services, equipment, capabilities, or other
valuable consideration.
`(4) PEG and institutional network financial support-
`(A) IN GENERAL- A video service provider with a franchise under this
section for a franchise area may be required to pay an amount equal
to not more than 1 percent of the video service provider's gross revenue
in the franchise area to the franchising authority for the support of
public, educational, and governmental use and institutional networks.
The payment shall be assessed and collected in a manner consistent with
this section.
`(B) EXISTING FRANCHISE INSTITUTIONAL NETWORKS- A franchising authority
may require a cable operator to continue to provide any institutional
network provided by that cable operator before executing a franchise
agreement under this title.
`(C) INCREMENTAL COSTS- If the incremental cost of operating an institutional
network under subparagraph (B) is less than 1 percent of the video service
provider's gross revenue, the video service provider may deduct the
incremental cost of operating the institutional network from the contribution
required under subparagraph (A). The franchising authority shall reimburse
the video service provider for the amount by which the incremental cost
of operating such institutional network exceeds any fee required under
subparagraph (A).
`(D) ADJUSTMENT- Every 15 years after the commencement of a franchise
granted after April 30, 2006, a franchising authority may require a
video service provider to increase the channel capacity designated for
public, educational, or governmental use, and the channel capacity designated
for such use on any institutional networks required under subparagraph
(A). The increase may not exceed the greater of--
`(ii) 10 percent of the public, educational, or governmental channel
capacity required of the video service provider before the required
increase.'; and
(2) by striking subsections (d) through (h) and inserting the following:
`(d) Other Taxes, Fees, and Assessments Not Affected-
`(1) IN GENERAL- Nothing in this section shall be construed to modify,
impair, or supersede, or authorize the modification, impairment, or supersession
of, any State or local law pertaining to taxation.
`(2) GENERALLY APPLICABLE TAXES, FEES, AND ASSESSMENTS- Nothing in this
section shall be construed to modify, impair, or supersede any Federal,
State, or local tax, fee, or assessment, or other charges that are--
`(A) applicable to services other than video service; or
`(B) generally applicable (including any such tax, fee, assessment,
or charge imposed on both utilities and video service providers or their
services other than a tax, fee, assessment, or charge that is unduly
discriminatory against video service providers or video service subscribers).
`(3) TELECOMMUNICATIONS SERVICES- Nothing in this section is intended
to modify, impair, or supersede the ability of any State to impose a tax,
fee, or assessment (including any such tax, fee, or assessment that is
imposed by the State and remitted to its political subdivisions) that
is--
`(A) measured by the sales price of a telecommunications service and
required to be paid by all telecommunications service providers or their
customers (including video service providers) on a nondiscriminatory
basis; and
`(B) in lieu of any compensation or other charge for using or occupying
the public rights-of-way to provide telecommunications service, including
the franchise fee authorized by this section.
`(1) AUDIT PROCEDURE- A franchising authority that believes that it is
not receiving the full amount of the video service fee imposed under this
section may petition its State commission to commence an audit to ensure
compliance with the definition of gross revenue and the calculation of
fees under this section. The State commission shall coordinate audits
to the maximum extent possible to avoid unnecessary duplication and cost
on carriers.
`(2) REIMBURSEMENT OF FRANCHISING AUTHORITY FOR SUBSTANTIAL DEFICIENCIES-
If there is a final determination, after the dispute resolution procedures
under subsection (f) have been completed, that the video service provider
has underpaid the franchise fee imposed under this section by 5 percent
or more for the 12-month period that was the subject of the review, the
video service provider shall reimburse the franchising authority for the
reasonable costs associated with the review. Those costs include any reasonable
amount paid by the franchising authority to an independent third party
for conducting the review other than any amount paid to an independent
third party under a contingency fee arrangement.
`(3) STATUTE OF LIMITATIONS- A franchising authority may not request a
review under paragraph (1) for any 12-month period ending more than 36
months before the date on which the request is submitted.
`(f) Dispute Resolution Procedure-
`(1) NOTICE; 30-DAY PERIOD- If there is a dispute between a franchising
authority and a video service provider over the amount or payment of the
fee authorized by this section that has not been resolved between the
parties in a reasonable period of time under normal business procedures,
the aggrieved party may give the other party written notice of intent
to initiate the dispute resolution procedure provided by this subsection.
Within 30 calendar days after the notice has been received by the second
party, representatives of each party with authority to settle the dispute
shall meet at a mutually agreed upon time and place to attempt to negotiate
a resolution of the dispute.
`(2) 60-day period; commission complaint procedure-
`(A) IN GENERAL- If the dispute has not been resolved within 60 calendar
days after the notice has been received by the second party, either
party may file a complaint with the Commission.
`(B) INFORMATION PROVIDED IN THE COURSE OF NEGOTIATIONS- For the purpose
of any adjudication by the Commission under this subsection, information
provided by either party to the other in negotiations under subparagraph
(A) shall be treated as compromise and settlement negotiations for purposes
of the Federal Rules of Evidence.
`(C) STATUTE OF LIMITATIONS- Notwithstanding subparagraph (A), no complaint
may be filed with the Commission under this paragraph more than 3 years
after the end of the quarter to which the disputed amount relates, unless
the 3-year period is extended by written agreement between the video
service provider and the local government franchising authority.
`(D) PROCEDURAL REQUIREMENTS- The Commission shall adopt rules establishing
procedures for handling complaints under this paragraph, which shall
require that--
`(i) the complaint be heard by an administrative law judge;
`(ii) any decision of the administrative law judge be directly reviewable
by the Commission upon the request of either party;
`(iii) any review by the Commission be limited to the record before
the administrative law judge;
`(iv) the complaint be treated as a restricted proceeding under subpart
H of part 1 of the Commission's regulations (47 C.F.R. part 1, subpart
H); and
`(v) any review of the Commission's decision shall be brought as provided
in section 402(a) of this Act.
`(g) GAAP STANDARDS- For purposes of this section, all financial determinations
and computations shall be made in accordance with generally accepted accounting
principles except as otherwise provided.
`(h) DEFINITIONS- In this section:
`(1) FRANCHISE FEE- The term `franchise fee'--
`(A) includes any tax, fee, or assessment of any kind imposed by a franchising
authority or other governmental entity on a video service provider or
subscriber, or both, solely because of their status as such; but
`(i) any tax, fee, or assessment of general applicability (including
any such tax, fee, or assessment imposed on both utilities and video
service providers or their services but not including a tax, fee,
or assessment which is unduly discriminatory against video service
providers or subscribers);
`(ii) any fee that is required by the franchise under section 622(b);
`(iii) requirements or charges incidental to the awarding or enforcing
of the franchise, including payments for bonds, security funds, letters
of credit, insurance, indemnification, penalties, or liquidated damages;
or
`(iv) any fee imposed under title 17, United States Code.
`(A) IN GENERAL- The term `gross revenue' means all consideration of
any kind or nature including cash, credits, property, and in-kind contributions
(services or goods) received by a video service provider from the provision
of broadband video service within a local franchise area including--
`(i) all charges and fees paid by subscribers for the provision of
video service, including fees attributable to video service when that
service is sold individually or as part of package, bundle, or functionally
integrated with services other than video service; and
`(ii) revenue received by a video service provider as compensation
for carriage of video programming on the provider's system.
`(B) AFFILIATES- The gross revenue of a video service provider includes
gross revenue of an affiliate to the extent the exclusion of the affiliate's
gross revenue would have the effect of permitting the video service
provider to evade the payment of franchise fees which would otherwise
be paid by that video service provider for video services provided within
the local franchise area of the franchising authority imposing the fee.
`(C) REVENUE FROM BUNDLED OR FUNCTIONALLY INTEGRATED SERVICE- In the
case of a video service that is bundled or functionally integrated with
other services, capabilities, or applications, the portion of the video
service provider's revenue attributable to such other services, capabilities,
or applications shall be included in gross revenue unless the video
service provider can reasonably identify the division or exclusion of
such revenue from its books and records kept in the regular course of
business.
`(D) EXCLUSIONS- Gross revenue of a video service provider (or an affiliate
to the extent otherwise included in the gross revenue of the video service
provider under subparagraph (B)) does not include--
`(i) any revenue not actually received, even if billed, such as bad
debts net of any recoveries of bad debts;
`(ii) refunds, rebates, credits, or discounts to subscribers or a
municipality to the extent not excluded under clause (i);
`(iii) subject to subparagraph (C), any revenues received by a video
service provider or its affiliates from the provision of services
or capabilities other than video service, including--
`(I) voice, Internet access, or other broadband-enabled applications;
and
`(II) services, capabilities, and applications that are sold or
provided as part of a package or bundle of services or capabilities,
or that are functionally integrated with video service;
`(iv) any revenues received by a video service provider or its affiliates
for the provision of directory or Internet advertising, including
yellow pages, white pages, banner advertisement, and electronic publishing;
`(v) any amounts attributable to the provision of video services to
subscribers at no charge, including the provision of such services
to public institutions without charge;
`(vi) any revenue derived from home shopping channels;
`(vii) any revenue forgone from the provision of video service at
no charge to any person other than forgone revenue exchanged for trades,
barters, services, or other items of value;
`(viii) any tax, fee, or assessment of general applicability imposed
on a subscriber, subscription, or subscription-related transaction
by Federal, State, or local government that is required to be collected
by the video service provider and remitted to the taxing authority,
including sales taxes, use taxes, and utility user taxes;
`(ix) any revenue from the sale of capital assets or surplus equipment;
`(x) the reimbursement by programmers for marketing costs actually
incurred by a video service provider for the introduction of new programming;
or
`(xi) any revenue from the sale of video services for resale to the
extent that the purchaser certifies in writing that it will--
`(I) resell the service; and
`(II) pay any applicable franchise fee with respect thereto.'.
SEC. 332. RENEWAL; REVOCATION.
Part II of title VI (47 U.S.C. 541 et seq.) is amended--
(1) by striking section 623 and redesignating sections 624 and 624A as
sections 623 and 624, respectively; and
(2) by striking sections 625 and 626 and inserting the following:
`SEC. 625. RENEWAL; REVOCATION.
`(a) RENEWAL- A video service provider may submit a written application
for renewal of its franchise to a franchising authority not more than 180
days before the franchise expires. Any such application shall be made on
the standard application form promulgated by the Commission under section
612 and shall be treated under section 603 in the same manner as any other
franchise application.
`(b) REVOCATION- A franchising authority may revoke a video service provider's
franchise to provide video services if it determines, after notice and an
opportunity for a hearing, that the video service provider has willfully
and repeatedly--
`(1) violated any Federal or State law, or any Commission regulation,
relating to the provision of video services in the franchise area;
`(2) made false statements, or material omissions, in any filing with
the Commission relating to the provision of video service in the franchise
area; or
`(3) violated the rights-of-way management laws or regulations of any
franchising authority in the franchise area relating to the provision
of video service in the franchise area.
`(c) NOTICE; OPPORTUNITY TO CURE- A franchising authority may not revoke
a franchise unless it first provides--
`(1) written notice to the video service provider of the alleged violation
in which the revocation would be based; and
`(2) a reasonable opportunity to cure the violation.
`(d) FINALITY OF DECISION- Any decision of a franchising authority to revoke
a franchise under this section is final for purposes of appeal. A video
service provider whose franchise is revoked by a franchising authority may
avail itself of the procedures in section 635 of this Act.
`(e) PREVENTION OF ABUSE OF POWER- A franchising authority may not use this
section as a barrier to entry by a video service provider. If the Commission
determines, in a proceeding brought by a video service provider to enforce
this subsection, that a franchising authority abused the authority provided
by this section in violation of the preceding sentence, the Commission may
award reasonable attorneys' fees and Commission costs to the video service
provider.'.
SEC. 333. PEG AND INSTITUTIONAL NETWORK OBLIGATIONS.
Section 611 (47 U.S.C. 531) is amended to read as follows:
`SEC. 611. CHANNELS FOR PUBLIC, EDUCATIONAL, OR GOVERNMENTAL USE.
`(a) IN GENERAL- A video service provider that obtains a franchise shall
provide channel capacity for public, educational, or governmental use that
is not less than the channel capacity required of the video service provider
with the greatest number of public, educational, or governmental use channels
in the franchise area on the effective date of that franchise. If there
is no other video service provider in the franchise area on the effective
date of the franchise, the video service provider shall provide the amount
of channel capacity for such use as determined by Commission rule.
`(b) EDITORIAL CONTROL- Subject to section 623(b)(1), a video service provider
shall not exercise any editorial control over any public, educational, or
governmental use of channel capacity provided pursuant to this section,
but a video service provider may refuse to transmit any public access program
or portion of a public access program which contains obscenity.
`(c) TRANSMISSION AND PRODUCTION OF PROGRAMMING-
`(1) PEG PROGRAMMING- A video service provider shall ensure that all subscribers
receive any public, educational, or governmental programming carried by
the video service provider within the subscriber's franchise area.
`(2) PRODUCTION RESPONSIBILITY- The production of any programming provided
under this subsection shall be the responsibility of the franchising authority.
`(3) TRANSMISSION RESPONSIBILITY- The video service provider shall be
responsible for the transmission from the signal origination point (or
points) of the programming, or from the point of interconnection with
another video service provider already offering the public, educational,
or governmental programming under paragraph (4), to the video service
provider's subscribers, or any public, educational, or governmental programming
produced by or for the franchising authority and carried by the video
service provider pursuant to this section.
`(4) INTERCONNECTION; COST-SHARING- Unless 2 video service providers otherwise
agree to the terms for interconnection and cost sharing, such video service
providers shall comply with regulations prescribed by the Commission providing
for--
`(A) the interconnection between 2 video service providers in a franchise
area for transmission of public, educational, or governmental programming,
without material degradation in signal quality or functionality; and
`(B) the reasonable allocation of the costs of such interconnection
between such video service providers.
`(5) DISPLAY OF PROGRAM INFORMATION- The video service provider shall
display the program information for public, educational, or governmental
programming in any print or electronic program guide in the same manner
in which it displays program information for other video programming in
the franchise area. The video service provider shall not omit public,
educational, or governmental programming from any navigational device,
guide, or menu containing other video programming that is available to
subscribers in the franchise area.'.
SEC. 334. SERVICES, FACILITIES, AND EQUIPMENT.
Section 623 of title VI, as redesignated by section 332, is amended--
(1) by striking subsections (a), (b), (c), (e), and (h) and redesignating
subsections (d), (f), (g), and (i) as subsections (a) through (d), respectively;
and
(2) by inserting `or wire' after `cable' in subsection (d), as redesignated.
SEC. 337. SHARED FACILITIES.
Part III of title VI (47 U.S.C. 541 et seq.) is amended--
(1) by striking section 627 and redesignating sections 628 (after its
amendment by section 402) and 629 as sections 626 and 627, respectively;
and
(2) by adding at the end the following:
`SEC. 628. ACCESS TO PROGRAMMING FOR SHARED FACILITIES.
`(a) IN GENERAL- A video service programming vendor in which a video service
provider has an attributable interest may not deny a video service provider
with a franchise under this title access to video programming solely because
that video service provider uses a headend for its video service system
that is also used, under a shared ownership or leasing agreement, as the
headend for another video service system.
`(b) VIDEO SERVICE PROGRAMMING VENDOR DEFINED- The term `video service programming
vendor' means a person engaged in the production, creation, or wholesale
distribution for sale of video programming that is primarily intended for
direct receipt by video service providers for retransmission to their video
service subscribers.'.
SEC. 338. CONSUMER PROTECTION AND CUSTOMER SERVICE.
Section 632 (47 U.S.C. 552) is amended to read as follows:
`SEC. 632. CONSUMER PROTECTION AND CUSTOMER SERVICE.
`(1) IN GENERAL- Not later than 120 days after the date of enactment of
the Video Competition and Savings for Consumers Act of 2006, the Commission,
after receiving comments from interested parties, including franchising
authorities and consumer representatives, shall promulgate regulations,
which may include penalties, with respect to customer service and consumer
protection requirements for video service providers.
`(2) EFFECTIVE DATE OF REGULATIONS- The regulations required by subsection
(a) shall take effect 60 days after the date on which a final rule is
promulgated by the Commission.
`(b) STATE COMMISSION AUTHORITY- A State commission shall have the authority
to enforce regulations promulgated under subsection (a).
`(c) FRANCHISING AUTHORITY STANDING- A franchising authority shall have
standing to file a complaint, otherwise initiate an enforcement proceeding,
or intervene in a proceeding on behalf of consumers in its franchise area
under the regulations promulgated under subsection (a).'.
SEC. 339. REDLINING.
Part IV of title VI (47 U.S.C. 551 et seq.) is amended by adding at the
end the following:
`SEC. 642. REDLINING.
`(a) IN GENERAL- A video service provider may not deny access to its video
service to any group of potential residential video service subscribers
because of the income, race, or religion of that group.
`(b) ENFORCEMENT- This section shall be enforced by the Commission through
a complaint-initiated adjudication process. A complaint may be filed by
a resident of the franchising area who is aggrieved by a violation of subsection
(a) or by a franchising authority on behalf of residents of its franchise
area.
`(c) REMEDIES- If the Commission determines that a video service provider
has violated subsection (a), it--
`(1) shall ensure that the video service provider extends access to any
group denied access in violation of subsection (a);
`(2) may assess a civil penalty in such amount as may be authorized under
State law for the franchising area in which the violation occurred for
violation of its antidiscrimination laws; and
`(3) may revoke a video service provider's franchise to provide video
services if it determines, after notice and an opportunity for a hearing,
that the video service provider has willfully and repeatedly violated
this section.'.
Subtitle C--Miscellaneous and Conforming Amendments
SEC. 351. MISCELLANEOUS AMENDMENTS.
(a) MUNICIPAL OPERATORS- Section 621(f) (47 U.S.C. 541(f)) is amended to
read as follows:
`(f) MUNICIPAL OPERATORS- No provision of this title shall be construed
to prohibit a local or municipal authority that is also, or is affiliated
with, a franchising authority from operating as a multichannel video programming
distributor in the franchise area, notwithstanding the granting of one or
more franchises by the franchising authority.'.
(b) PROCEDURE- Section 622(b) (47 U.S.C. 542(b)), as amended by section
331(a) of this Act, is further amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5),
respectively; and
(2) by inserting after paragraph (2) the following:
`(3) REQUIRED SHOWING IN LITIGATION- In any lawsuit challenging the amount
of the franchise fee imposed under this subsection, the franchising authority
shall be required to demonstrate that the rate structure reflects all
costs of the franchise fees.'.
(c) SUNSET- Section 626(c)(5) (47 U.S.C. 546), as redesignated by section
334, is amended--
(1) by striking `10 years after the date of enactment of this section,'
and inserting `on October 5, 2012,'; and
(2) by striking `last year of such 10-year period,' and inserting `12-month
period ending on that date,'.
(d) UPDATING- Section 613 is amended--
(1) by striking `July 1, 1984,' in subsection (g) and inserting `the date
of enactment of the Communications, Consumer's Choice, and Broadband Deployment
of 2006'; and
(2) by striking subsection (a) and redesignating subsections (c) through
(h) as subsections (a) through (f), respectively.
(e) REPEAL- Section 617 (47 U.S.C. 537) is repealed.
(f) ENFORCEMENT- Section 634(i) (47 U.S.C. 554(i)) is amended--
(1) by striking paragraph (1); and
(2) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2),
respectively.
