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110th Congress 
 2d Session                      SENATE                          Report
                                                                110-424
_______________________________________________________________________

                                     

                                                       Calendar No. 886
 
                       DTV BORDER FIX ACT OF 2007

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2507



                                     

                 July 17, 2008.--Ordered to be printed
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred tenth congress
                             second session

                   DANIEL K. INOUYE, Hawaii, Chairman
                   TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West         JOHN McCAIN, Arizona
    Virginia                         KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts         OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota        GORDON H. SMITH, Oregon
BARBARA BOXER, California            JOHN ENSIGN, Nevada
BILL NELSON, Florida                 JOHN E. SUNUNU, New Hampshire
MARIA CANTWELL, Washington           JIM DeMINT, South Carolina
FRANK R. LAUTENBERG, New Jersey      DAVID VITTER, Louisiana
MARK PRYOR, Arkansas                 JOHN THUNE, South Dakota
THOMAS CARPER, Delaware              ROGER F. WICKER, Mississippi
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
          Margaret Cummisky, Staff Director and Chief Counsel
         Lila Helms, Deputy Staff Director and Policy Director
       Jean Toal Eisen, Senior Advisor and Deputy Policy Director
     Christine Kurth, Republican Staff Director and General Counsel
                Paul J. Nagle, Republican Chief Counsel
             Mimi Braniff, Republican Deputy Chief Counsel


                                                       Calendar No. 886
110th Congress                                                   Report
                                 SENATE
 2d Session                                                     110-424

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




                       DTV BORDER FIX ACT OF 2007

                                _______
                                

                 July 17, 2008.--Ordered to be printed

                                _______
                                

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

                                 REPORT

                         [To accompany S. 2507]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2507) to address the digital 
television transition in border states, having considered the 
same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          Purpose of the Bill

  The purpose of S. 2507 is to ensure that residents along the 
U.S.-Mexico border have access to over-the-air broadcasting 
after the digital television (DTV) transition.

                          Background and Needs

  In less than one year, full-power broadcasters in the United 
States will switch from analog to digital signals. For 
television stations along the U.S.-Mexico border, the DTV 
transition poses special challenges. Residents along the border 
presently receive analog broadcast signals from both the United 
States and Mexico. The Digital Television Transition and Public 
Safety Act of 2005 (DTV Act) set February 17, 2009, as the 
deadline for the DTV transition in the United States. According 
to the Federal Communications Commission (FCC), Mexico will not 
complete their digital transition until 2021.
  In order to continue receiving over-the-air television from 
American broadcasters after the transition, consumers with 
analog televisions will need to take one of three steps. First, 
consumers may purchase a digital-ready television set. Second, 
consumers may choose to subscribe to a cable or satellite 
service. Third, consumers can attach a digital-to-analog 
converter box to their analog set. To subsidize the cost of 
these converter boxes, households may apply for up to two $40 
coupons from the National Telecommunications and Information 
Administration (NTIA). Residents along the border will not have 
to take any action to continue to receive analog broadcasting 
from Mexico.
  As a result, some viewers may choose not to participate in 
the transition. This could pose a significant public safety 
risk for households relying on over-the-air television. As a 
source of information in the event of emergency or natural 
disaster, television serves a vital public safety role. 
Consumers who continue to view over-the-air analog signals by 
watching Mexican stations will lose access to the Emergency 
Alert System and AMBER Alert messages broadcast by U.S. 
television stations. In addition, American stations 
broadcasting along the border could lose a portion of their 
viewing audience.
  To address this situation, the legislation is designed to 
provide the FCC with the flexibility to permit full-power 
television stations within 50 miles of the border with Mexico 
to continue to broadcast in analog for as long as five years 
after February 17, 2009. However, the FCC would have to find 
that an eligible station's continued analog broadcasting is in 
the public interest. In addition, the ability to continue to 
broadcast in analog along the border would be limited to 
stations operating between channels 2 and 51; channels that 
would not prevent the use of recovered spectrum for public 
safety purposes; and channels that are not assigned to other 
stations for digital operation post-transition.

                          Legislative History

  On December 18, 2007, Senator Hutchison, for herself and 
Senator Boxer, introduced S. 2507. On April 8, 2008, the 
Committee held an oversight hearing on the DTV transition. On 
April 24, 2008, the Committee held an executive session at 
which S. 2507 was considered. Senator Hutchison offered an 
amendment in the nature of a substitute. The bill, as amended, 
was approved by voice vote.

                            Estimated Costs

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

                                                     June 13, 2008.
Hon. Daniel K. Inouye, Chairman,
Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2507, the DTV Border 
Fix Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.
S. 2507--DTV Border Fix Act of 2007
    Summary: S. 2507 would authorize the Federal Communications 
Commission (FCC) to renew licenses for certain television 
stations to broadcast analog signals through February 17, 2014. 
Under current law, all full-power television stations are 
required to switch from analog to digital broadcasts on 
February 17, 2009; the bill would give stations operating 
within 50 miles of the United States border with Mexico an 
additional five years to make the conversion to digital 
broadcasts. The bill would place certain restrictions on a 
station's ability to receive an analog renewal.
    CBO estimates that enacting this bill would increase direct 
spending by about $10 million over the 2009-2013 period by 
reducing offsetting receipts from FCC auctions of licenses to 
use the electromagnetic spectrum. CBO estimates that the 
additional rulemaking activity that would be required under the 
bill to assign new channels would not have a significant effect 
on spending subject to appropriation. Enacting the bill would 
not affect revenues.
    S. 2507 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would ease an existing mandate by allowing certain 
public television stations to broadcast an analog signal until 
2014, provided those stations meet certain requirements.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2507 is shown in the following table. 
The costs of this legislation fall within budget function 950 
(undistributed offsetting receipts).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      By fiscal year, in millions of dollars--
                                                           ---------------------------------------------------------------------------------------------
                                                             2009    2010    2011    2012    2013    2014    2015    2017    2018   2009-2013  2009-2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               CHANGES IN DIRECT SPENDING
Estimated Budget Authority................................       0       5       5       0       0       0       0       0       0        10         10
Estimated Outlays.........................................       0       5       5       0       0       0       0       0       0        10         10
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: Based on information from the FCC, CBO 
expects that, under the bill, 33 stations would be eligible to 
continue to broadcast analog signals after the February 2009 
conversion deadline, including stations in San Diego and El 
Paso. About half of those stations would need a new channel 
assignment to prevent interference with other analog or digital 
stations if they chose to take advantage of the extension.
    Under current law, CBO expects that the FCC will auction 
construction permits or other types of licenses for frequencies 
within the television band (channels 2 through 51) that will be 
vacated after the transition to digital. Allowing certain 
stations to continue their analog operations would reduce the 
number of channels that could be reassigned and auctioned for 
new uses before the FCC's auction authority expires at the end 
of fiscal year 2011. Based on the amounts paid for similar 
licenses, CBO estimates that implementing this bill would 
reduce auction receipts by about $10 million over the 2009-2013 
period.
    Intergovernmental and private-sector impact: S. 2507 
contains no intergovernmental or private-sector mandates as 
defined UMRA. The bill would ease an existing mandate by 
allowing certain television stations to broadcast an analog 
signal until 2014, provided those stations meet certain 
requirements.
    Estimate prepared by: Federal costs: Susan Willie and 
Kathleen Gramp; Impact on state, local, and tribal governments: 
Elizabeth Cove; Impact on the private sector: Jacob Kuipers.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  The number of persons covered by this legislation would be 
consistent with current levels of individuals affected.

                            ECONOMIC IMPACT

  S. 2507 is not expected to have an economic impact.

                                PRIVACY

  S. 2507 is not expected to have an adverse effect on the 
personal privacy of any individuals that will be impacted by 
this legislation.

                               PAPERWORK

  S. 2507 would have minimal impact on current paperwork 
levels.

                      Section-by-Section Analysis

Section 1. Short Title
  Section 1 would provide that the legislation may be cited as 
the ``DTV Border Fix Act of 2008.''
Section 2. Continuation of Analog Broadcasting along Common Border with 
        Mexico
  Section 2 would amend Section 309(j) of the Communications 
Act of 1934 to allow full-power television stations within 50 
miles of the U.S.-Mexico border to renew their licenses 
authorizing analog television service, from the date of 
enactment of the DTV Border Fix Act of 2008 and ending February 
17, 2014, provided that the FCC finds that an eligible 
station's continued broadcasting of television service in 
analog is in the public interest and the station operates 
television service on a channel between 2 and 51. In addition, 
the FCC would have to find that analog license renewal does not 
prevent the recovery of auctioned spectrum; does not prevent 
the use of recovered spectrum allocated for public safety use; 
does not encumber or interfere with any channel reserved for 
public safety use; and does not prevent the FCC from 
considering or granting a request for waiver submitted for 
public safety service prior to the date of enactment of the DTV 
Border Fix Act of 2008. Renewals would be permitted if the 
channels at issue are between 2 and 51; were not previously 
assigned to other stations for digital operation after the 
transition; and are capable of being used for broadcasting 
analog television service after the digital transition without 
causing interference to previously authorized digital 
television stations. In addition, the bill would set up a 
process through which eligible stations may request that the 
FCC assign them a new channel for broadcasting analog service, 
provided that the newly requested channel is between 2 and 51 
and does not cause interference to other analog or digital 
television stations or any stations licensed to operate in any 
other radio service on channels between 2 and 51.

                        Changes in Existing Law

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

                       COMMUNICATIONS ACT OF 1934

309. APPLICATION FOR LICENSE

                            [47 U.S.C. 309]

  (a) Considerations in granting application.--Subject to the 
provisions of this section, the Commission shall determine, in 
the case of each application filed with it to which section 308 
applies, whether the public interest, convenience, and 
necessity will be served by the granting of such application, 
and, if the Commission, upon examination of such application 
and upon consideration of such other matters as the Commission 
may officially notice, shall find that public interest, 
convenience, and necessity would be served by the granting 
thereof, it shall grant such application.
  (b) Time of granting application.--Except as provided in 
subsection (c) of this section, no such application--
          (1) for an instrument of authorization in the case of 
        a station in the broadcasting or common carrier 
        services, or
          (2) for an instrument of authorization in the case of 
        a station in any of the following categories:
                  (A) industrial radio positioning stations for 
                which frequencies are assigned on an exclusive 
                basis,
                  (B) aeronautical en route stations,
                  (C) aeronautical advisory stations,
                  (D) airdrome control stations,
                  (E) aeronautical fixed stations, and
                  (F) such other stations or classes of 
                stations, not in the broadcasting or common 
                carrier services, as the Commission shall by 
                rule prescribe, shall be granted by the 
                Commission earlier than thirty days following 
                issuance of public notice by the Commission of 
                the acceptance for filing of such application 
                or of any substantial amendment thereof.
  (c) Applications not affected by subsection (b).--Subsection 
(b) of this section shall not apply--
          (1) to any minor amendment of an application to which 
        such subsection is applicable, or
          (2) to any application for--
                  (A) a minor change in the facilities of an 
                authorized station,
                  (B) consent to an involuntary assignment or 
                transfer under section 310(b) or to an 
                assignment or transfer thereunder which does 
                not involve a substantial change in ownership 
                or control,
                  (C) a license under section 319(c) or, 
                pending application for or grant of such 
                license, any special or temporary authorization 
                to permit interim operation to facilitate 
                completion of authorized construction or to 
                provide substantially the same service as would 
                be authorized by such license,
                  (D) extension of time to complete 
                construction of authorized facilities,
                  (E) an authorization of facilities for remote 
                pickups, studio links and similar facilities 
                for use in the operation of a broadcast 
                station,
                  (F) authorizations pursuant to section 325(c) 
                where the programs to be transmitted are 
                special events not of a continuing nature,
                  (G) a special temporary authorization for 
                nonbroadcast operation not to exceed thirty 
                days where no application for regular operation 
                is contemplated to be filed or not to exceed 
                sixty days pending the filing of an application 
                for such regular operation, or
                  (H) an authorization under any of the proviso 
                clauses of section 308(a).
  (d) Petition to deny application; time; contents; reply; 
findings.
          (1) Any party in interest may file with the 
        Commission a petition to deny any application (whether 
        as originally filed or as amended) to which subsection 
        (b) of this section applies at any time prior to the 
        day of Commission grant thereof without hearing or the 
        day of formal designation thereof for hearing; except 
        that with respect to any classification of 
        applications, the Commission from time to time by rule 
        may specify a shorter period (no less than thirty days 
        following the issuance of public notice by the 
        Commission of the acceptance for filing of such 
        application or of any substantial amendment thereof), 
        which shorter period shall be reasonably related to the 
        time when the applications would normally be reached 
        for processing. The petitioner shall serve a copy of 
        such petition on the applicant. The petition shall 
        contain specific allegations of fact sufficient to show 
        that the petitioner is a party in interest and that a 
        grant of the application would be prima facie 
        inconsistent with subsection (a) (or subsection (k) in 
        the case of renewal of any broadcast station license). 
        Such allegations of fact shall, except for those of 
        which official notice may be taken, be supported by 
        affidavit of a person or persons with personal 
        knowledge thereof. The applicant shall be given the 
        opportunity to file a reply in which allegations of 
        fact or denials thereof shall similarly be supported by 
        affidavit.
          (2) If the Commission finds on the basis of the 
        application, the pleadings filed, or other matters 
        which it may officially notice that there are no 
        substantial and material questions of fact and that a 
        grant of the application would be consistent with 
        subsection (a) (or subsection (k) in the case of 
        renewal of any broadcast station license), it shall 
        make the grant, deny the petition, and issue a concise 
        statement of the reasons for denying the petition, 
        which statement shall dispose of all substantial issues 
        raised by the petition. If a substantial and material 
        question of fact is presented or if the Commission for 
        any reason is unable to find that grant of the 
        application would be consistent with subsection (a) (or 
        subsection (k) in the case of renewal of any broadcast 
        station license), it shall proceed as provided in 
        subsection (e).
  (e) Hearings; intervention; evidence; burden of proof.--If, 
in the case of any application to which subsection (a) of this 
section applies, a substantial and material question of fact is 
presented or the Commission for any reason is unable to make 
the finding specified in such subsection, it shall formally 
designate the application for hearing on the ground or reasons 
then obtaining and shall forthwith notify the applicant and all 
other known parties in interest of such action and the grounds 
and reasons therefor, specifying with particularity the matters 
and things in issue but not including issues or requirements 
phrased generally. When the Commission has so designated an 
application for hearing the parties in interest, if any, who 
are not notified by the Commission of such action may acquire 
the status of a party to the proceeding thereon by filing a 
petition for intervention showing the basis for their interest 
not more than thirty days after publication of the hearing 
issues or any substantial amendment thereto in the Federal 
Register. Any hearing subsequently held upon such application 
shall be a full hearing in which the applicant and all other 
parties in interest shall be permitted to participate. The 
burden of proceeding with the introduction of evidence and the 
burden of proof shall be upon the applicant, except that with 
respect to any issue presented by a petition to deny or a 
petition to enlarge the issues, such burdens shall be as 
determined by the Commission.
  (f) Temporary authorization of operations under subsection 
(b).--When an application subject to subsection (b) has been 
filed, the Commission, notwithstanding the requirements of such 
subsection, may, if the grant of such application is otherwise 
authorized by law and if it finds that there are extraordinary 
circumstances requiring temporary operations in the public 
interest and that delay in the institution of such temporary 
operations would seriously prejudice the public interest, grant 
a temporary authorization, accompanied by a statement of its 
reasons therefor, to permit such temporary operations for a 
period not exceeding 180 days, and upon making like findings 
may extend such temporary authorization for additional periods 
not to exceed 180 days. When any such grant of a temporary 
authorization is made, the Commission shall give expeditious 
treatment to any timely filed petition to deny such application 
and to any petition for rehearing of such grant filed under 
section 405.
  (g) Classification of applications.--The Commission is 
authorized to adopt reasonable classifications of applications 
and amendments in order to effectuate the purposes of this 
section.
  (h) Form and conditions of station licenses.--Such station 
licenses as the Commission may grant shall be in such general 
form as it may prescribe, but each license shall contain, in 
addition to other provisions, a statement of the following 
conditions to which such license shall be subject: (1) The 
station license shall not vest in the licensee any right to 
operate the station nor any right in the use of the frequencies 
designated in the license beyond the term thereof nor in any 
other manner than authorized therein; (2) neither the license 
nor the right granted thereunder shall be assigned or otherwise 
transferred in violation of this Act; (3) every license issued 
under this Act shall be subject in terms to the right of use or 
control conferred by section 706 of this Act.
  (i) Random selection.
          (1) General authority.--Except as provided in 
        paragraph (5), if there is more than one application 
        for any initial license or construction permit, then 
        the Commission shall have the authority to grant such 
        license or permit to a qualified applicant through the 
        use of a system of random selection.
          (2) No license or construction permit shall be 
        granted to an applicant selected pursuant to paragraph 
        (1) unless the Commission determines the qualifications 
        of such applicant pursuant to subsection (a) and 
        section 308(b). When substantial and material questions 
        of fact exist concerning such qualifications, the 
        Commission shall conduct a hearing in order to make 
        such determinations. For the purpose of making such 
        determinations, the Commission may, by rule, and 
        notwithstanding any other provision of law--
                  (A) adopt procedures for the submission of 
                all or part of the evidence in written form;
                  (B) delegate the function of presiding at the 
                taking of the evidence to Commission employees 
                other than administrative law judges; and
                  (C) omit the determination required by 
                subsection (a) with respect to any application 
                other than the one selected pursuant to 
                paragraph (1).
          (3)(A) The Commission shall establish rules and 
        procedures to ensure that, in the administration of any 
        system of random selection under this subsection used 
        for granting licenses or construction permits for any 
        media of mass communications, significant preferences 
        will be granted to applicants or groups of applicants, 
        the grant to which of the license or permit would 
        increase the diversification of ownership of the media 
        of mass communications. To further diversify the 
        ownership of the media of mass communications, an 
        additional significant preference shall be granted to 
        any applicant controlled by a member or members of a 
        minority group.
                  (B) The Commission shall have authority to 
                require each qualified applicant seeking a 
                significant preference under subparagraph (A) 
                to submit to the Commission such information as 
                may be necessary to enable the Commission to 
                make a determination regarding whether such 
                applicant shall be granted such preference. 
                Such information shall be submitted in such 
                form, at such times, and in accordance with 
                such procedures, as the Commission may require.
                  (C) For purposes of this paragraph:
                          (i) The term ``media of mass 
                        communications'' includes television, 
                        radio, cable television, multipoint 
                        distribution service, direct broadcast 
                        satellite service, and other services, 
                        the licensed facilities of which may be 
                        substantially devoted toward providing 
                        programming or other information 
                        services within the editorial control 
                        of the licensee.
                          (ii) The term ``minority group'' 
                        includes Blacks, Hispanics, American 
                        Indians, Alaska Natives, Asians, and 
                        Pacific Islanders.
          (4)(A) The Commission shall, after notice and 
        opportunity for hearing, prescribe rules establishing a 
        system of random selection for use by the Commission 
        under this subsection in any instance in which the 
        Commission, in its discretion, determines that such use 
        is appropriate for the granting of any license or 
        permit in accordance with paragraph (1).
                  (B) The Commission shall have authority to 
                amend such rules from time to time to the 
                extent necessary to carry out the provisions of 
                this subsection. Any such amendment shall be 
                made after notice and opportunity for hearing.
                  (C) Not later than 180 days after the date of 
                enactment of this subparagraph, the Commission 
                shall prescribe such transfer disclosures and 
                antitrafficking restrictions and payment 
                schedules as are necessary to prevent the 
                unjust enrichment of recipients of licenses or 
                permits as a result of the methods employed to 
                issue licenses under this subsection.
          (5) Termination of authority.
                  (A) Except as provided in subparagraph (B), 
                the Commission shall not issue any license or 
                permit using a system of random selection under 
                this subsection after July 1, 1997.
                  (B) Subparagraph (A) of this paragraph shall 
                not apply with respect to licenses or permits 
                for stations described in section 397(6) of 
                this Act.
  (j) Use of competitive bidding..
          (1) General authority.--If, consistent with the 
        obligations described in paragraph (6)(E), mutually 
        exclusive applications are accepted for any initial 
        license or construction permit, then, except as 
        provided in paragraph (2), the Commission shall grant 
        the license or permit to a qualified applicant through 
        a system of competitive bidding that meets the 
        requirements of this subsection.
          (2) Exemptions.--The competitive bidding authority 
        granted by this subsection shall not apply to licenses 
        or construction permits issued by the Commission--
                  (A) for public safety radio services, 
                including private internal radio services used 
                by State and local governments and non-
                government entities and including emergency 
                road services provided by not-for-profit 
                organizations, that--
                          (i) are used to protect the safety of 
                        life, health, or property; and
                          (ii) are not made commercially 
                        available to the public;
                  (B) for initial licenses or construction 
                permits for digital television service given to 
                existing terrestrial broadcast licensees to 
                replace their analog television service 
                licenses; or
                  (C) for stations described in section 397(6) 
                of this Act.
          (3) Design of systems of competitive bidding.--For 
        each class of licenses or permits that the Commission 
        grants through the use of a competitive bidding system, 
        the Commission shall, by regulation, establish a 
        competitive bidding methodology. The Commission shall 
        seek to design and test multiple alternative 
        methodologies under appropriate circumstances. The 
        Commission shall, directly or by contract, provide for 
        the design and conduct (for purposes of testing) of 
        competitive bidding using a contingent combinatorial 
        bidding system that permits prospective bidders to bid 
        on combinations or groups of licenses in a single bid 
        and to enter multiple alternative bids within a single 
        bidding round. In identifying classes of licenses and 
        permits to be issued by competitive bidding, in 
        specifying eligibility and other characteristics of 
        such licenses and permits, and in designing the 
        methodologies for use under this subsection, the 
        Commission shall include safeguards to protect the 
        public interest in the use of the spectrum and shall 
        seek to promote the purposes specified in section 1 of 
        this Act and the following objectives:
                  (A) the development and rapid deployment of 
                new technologies, products, and services for 
                the benefit of the public, including those 
                residing in rural areas, without administrative 
                or judicial delays;
                  (B) promoting economic opportunity and 
                competition and ensuring that new and 
                innovative technologies are readily accessible 
                to the American people by avoiding excessive 
                concentration of licenses and by disseminating 
                licenses among a wide variety of applicants, 
                including small businesses, rural telephone 
                companies, and businesses owned by members of 
                minority groups and women;
                  (C) recovery for the public of a portion of 
                the value of the public spectrum resource made 
                available for commercial use and avoidance of 
                unjust enrichment through the methods employed 
                to award uses of that resource;
                  (D) efficient and intensive use of the 
                electromagnetic spectrum;
                  (E) ensure that, in the scheduling of any 
                competitive bidding under this subsection, an 
                adequate period is allowed--
                          (i) before issuance of bidding rules, 
                        to permit notice and comment on 
                        proposed auction procedures; and
                          (ii) after issuance of bidding rules, 
                        to ensure that interested parties have 
                        a sufficient time to develop business 
                        plans, assess market conditions, and 
                        evaluate the availability of equipment 
                        for the relevant services; and
                  (F) for any auction of eligible frequencies 
                described in section 113(g)(2) of the National 
                Telecommunications and Information 
                Administration Organization Act (47 U.S.C. 
                923(g)(2)), the recovery of 110 percent of 
                estimated relocation costs as provided to the 
                Commission pursuant to section 113(g)(4) of 
                such Act.
          (4) Contents of regulations.--In prescribing 
        regulations pursuant to paragraph (3), the Commission 
        shall--
                  (A) consider alternative payment schedules 
                and methods of calculation, including lump sums 
                or guaranteed installment payments, with or 
                without royalty payments, or other schedules or 
                methods that promote the objectives described 
                in paragraph (3)(B), and combinations of such 
                schedules and methods;
                  (B) include performance requirements, such as 
                appropriate deadlines and penalties for 
                performance failures, to ensure prompt delivery 
                of service to rural areas, to prevent 
                stockpiling or warehousing of spectrum by 
                licensees or permittees, and to promote 
                investment in and rapid deployment of new 
                technologies and services;
                  (C) consistent with the public interest, 
                convenience, and necessity, the purposes of 
                this Act, and the characteristics of the 
                proposed service, prescribe area designations 
                and bandwidth assignments that promote
                          (i) an equitable distribution of 
                        licenses and services among geographic 
                        areas,
                          (ii) economic opportunity for a wide 
                        variety of applicants, including small 
                        businesses, rural telephone companies, 
                        and businesses owned by members of 
                        minority groups and women, and
                          (iii) investment in and rapid 
                        deployment of new technologies and 
                        services;
                  (D) ensure that small businesses, rural 
                telephone companies, and businesses owned by 
                members of minority groups and women are given 
                the opportunity to participate in the provision 
                of spectrum-based services, and, for such 
                purposes, consider the use of tax certificates, 
                bidding preferences, and other procedures;
                  (E) require such transfer disclosures and 
                antitrafficking restrictions and payment 
                schedules as may be necessary to prevent unjust 
                enrichment as a result of the methods employed 
                to issue licenses and permits; and
                  (F) prescribe methods by which a reasonable 
                reserve price will be required, or a minimum 
                bid will be established, to obtain any license 
                or permit being assigned pursuant to the 
                competitive bidding, unless the Commission 
                determines that such a reserve price or minimum 
                bid is not in the public interest.
          (5) Bidder and licensee qualification.--No person 
        shall be permitted to participate in a system of 
        competitive bidding pursuant to this subsection unless 
        such bidder submits such information and assurances as 
        the Commission may require to demonstrate that such 
        bidder's application is acceptable for filing. No 
        license shall be granted to an applicant selected 
        pursuant to this subsection unless the Commission 
        determines that the applicant is qualified pursuant to 
        subsection (a) and sections 308(b) and 310. Consistent 
        with the objectives described in paragraph (3), the 
        Commission shall, by regulation, prescribe expedited 
        procedures consistent with the procedures authorized by 
        subsection (i)(2) for the resolution of any substantial 
        and material issues of fact concerning qualifications.
          (6) Rules of construction.--Nothing in this 
        subsection, or in the use of competitive bidding, 
        shall--
                  (A) alter spectrum allocation criteria and 
                procedures established by the other provisions 
                of this Act;
                  (B) limit or otherwise affect the 
                requirements of subsection (h) of this section, 
                section 301, 304, 307, 310, or 706, or any 
                other provision of this Act (other than 
                subsections (d)(2) and (e) of this section);
                  (C) diminish the authority of the Commission 
                under the other provisions of this Act to 
                regulate or reclaim spectrum licenses;
                  (D) be construed to convey any rights, 
                including any expectation of renewal of a 
                license, that differ from the rights that apply 
                to other licenses within the same service that 
                were not issued pursuant to this subsection;
                  (E) be construed to relieve the Commission of 
                the obligation in the public interest to 
                continue to use engineering solutions, 
                negotiation, threshold qualifications, service 
                regulations, and other means in order to avoid 
                mutual exclusivity in application and licensing 
                proceedings;
                  (F) be construed to prohibit the Commission 
                from issuing nationwide, regional, or local 
                licenses or permits;
                  (G) be construed to prevent the Commission 
                from awarding licenses to those persons who 
                make significant contributions to the 
                development of a new telecommunications service 
                or technology; or
                  (H) be construed to relieve any applicant for 
                a license or permit of the obligation to pay 
                charges imposed pursuant to section 8 of this 
                Act.
          (7) Consideration of revenues in public interest 
        determinations.
                  (A) Consideration prohibited. In making a 
                decision pursuant to section 303(c) to assign a 
                band of frequencies to a use for which licenses 
                or permits will be issued pursuant to this 
                subsection, and in prescribing regulations 
                pursuant to paragraph (4)(C) of this 
                subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity on the expectation of Federal 
                revenues from the use of a system of 
                competitive bidding under this subsection.
                  (B) Consideration limited.--In prescribing 
                regulations pursuant to paragraph (4)(A) of 
                this subsection, the Commission may not base a 
                finding of public interest, convenience, and 
                necessity solely or predominantly on the 
                expectation of Federal revenues from the use of 
                a system of competitive bidding under this 
                subsection.
                  (C) Consideration of demand for spectrum not 
                affected.--Nothing in this paragraph shall be 
                construed to prevent the Commission from 
                continuing to consider consumer demand for 
                spectrum-based services.
          (8) Treatment of revenues.
                  (A) General rule.--Except as provided in 
                subparagraphs (B), (D), and (E), all proceeds 
                from the use of a competitive bidding system 
                under this subsection shall be deposited in the 
                Treasury in accordance with chapter 33 of title 
                31, United States Code.
                  (B) Retention of revenues.--Notwithstanding 
                subparagraph (A), the salaries and expenses 
                account of the Commission shall retain as an 
                offsetting collection such sums as may be 
                necessary from such proceeds for the costs of 
                developing and implementing the program 
                required by this subsection. Such offsetting 
                collections shall be available for obligation 
                subject to the terms and conditions of the 
                receiving appropriations account, and shall be 
                deposited in such accounts on a quarterly 
                basis. Such offsetting collections are 
                authorized to remain available until expended. 
                No sums may be retained under this subparagraph 
                during any fiscal year beginning after 
                September 30, 1998, if the annual report of the 
                Commission under section 4(k) for the second 
                preceding fiscal year fails to include in the 
                itemized statement required by paragraph (3) of 
                such section a statement of each expenditure 
                made for purposes of conducting competitive 
                bidding under this subsection during such 
                second preceding fiscal year.
                  (C) Deposit and use of auction escrow 
                accounts.--Any deposits the Commission may 
                require for the qualification of any person to 
                bid in a system of competitive bidding pursuant 
                to this subsection shall be deposited in an 
                interest bearing account at a financial 
                institution designated for purposes of this 
                subsection by the Commission (after 
                consultation with the Secretary of the 
                Treasury). Within 45 days following the 
                conclusion of the competitive bidding--
                          (i) the deposits of successful 
                        bidders shall be paid to the Treasury, 
                        except as otherwise provided in 
                        subparagraph (E)(ii);
                          (ii) the deposits of unsuccessful 
                        bidders shall be returned to such 
                        bidders; and
                          (iii) the interest accrued to the 
                        account shall be transferred to the 
                        Telecommunications Development Fund 
                        established pursuant to section 714 of 
                        this Act.
                  (D) Disposition of cash proceeds.--Cash 
                proceeds attributable to the auction of any 
                eligible frequencies described in section 
                113(g)(2) of the National Telecommunications 
                and Information Administration Organization Act 
                (47 U.S.C. 923(g)(2)) shall be deposited in the 
                Spectrum Relocation Fund established under 
                section 118 of such Act, and shall be available 
                in accordance with that section.
                  (E) Transfer of receipts.
                          (i) Establishment of Fund.--There is 
                        established in the Treasury of the 
                        United States a fund to be known as the 
                        Digital Television Transition and 
                        Public Safety Fund.
                          (ii) Proceeds for funds.--
                        Notwithstanding subparagraph (A), the 
                        proceeds (including deposits and 
                        upfront payments from successful 
                        bidders) from the use of a competitive 
                        bidding system under this subsection 
                        with respect to recovered analog 
                        spectrum shall be deposited in the 
                        Digital Television Transition and 
                        Public Safety Fund.
                          (iii) Transfer of amount to 
                        Treasury.--On September 30, 2009, the 
                        Secretary shall transfer $ 
                        7,363,000,000 from the Digital 
                        Television Transition and Public Safety 
                        Fund to the general fund of the 
                        Treasury.
                          (iv) Recovered analog spectrum.--For 
                        purposes of clause (i), the term 
                        ``recovered analog spectrum'' has the 
                        meaning provided in paragraph 
                        (15)(C)(vi).
          (9) Use of former government spectrum.--The 
        Commission shall, not later than 5 years after the date 
        of enactment of this subsection, issue licenses and 
        permits pursuant to this subsection for the use of 
        bands of frequencies that--
                  (A) in the aggregate span not less than 10 
                megahertz; and
                  (B) have been reassigned from Government use 
                pursuant to part B of the National 
                Telecommunications and Information 
                Administration Organization Act.
          (10) Authority contingent on availability of 
        additional spectrum.
                  (A) Initial conditions.--The Commission's 
                authority to issue licenses or permits under 
                this subsection shall not take effect unless--
                          (i) the Secretary of Commerce has 
                        submitted to the Commission the report 
                        required by section 113(d)(1) of the 
                        National Telecommunications and 
                        Information Administration Organization 
                        Act;
                          (ii) such report recommends for 
                        immediate reallocation bands of 
                        frequencies that, in the aggregate, 
                        span not less than 50 megahertz;
                          (iii) such bands of frequencies meet 
                        the criteria required by section 113(a) 
                        of such Act; and
                          (iv) the Commission has completed the 
                        rulemaking required by section 
                        332(c)(1)(D) of this Act.
                  (B) Subsequent conditions.--The Commission's 
                authority to issue licenses or permits under 
                this subsection on and after 2 years after the 
                date of the enactment of this subsection shall 
                cease to be effective if--
                          (i) the Secretary of Commerce has 
                        failed to submit the report required by 
                        section 113(a) of the National 
                        Telecommunications and Information 
                        Administration Organization Act;
                          (ii) the President has failed to 
                        withdraw and limit assignments of 
                        frequencies as required by paragraphs 
                        (1) and (2) of section 114(a) of such 
                        Act;
                          (iii) the Commission has failed to 
                        issue the regulations required by 
                        section 115(a) of such Act;
                          (iv) the Commission has failed to 
                        complete and submit to Congress, not 
                        later than 18 months after the date of 
                        enactment of this subsection, a study 
                        of current and future spectrum needs of 
                        State and local government public 
                        safety agencies through the year 2010, 
                        and a specific plan to ensure that 
                        adequate frequencies are made available 
                        to public safety licensees; or
                          (v) the Commission has failed under 
                        section 332(c)(3) to grant or deny 
                        within the time required by such 
                        section any petition that a State has 
                        filed within 90 days after the date of 
                        enactment of this subsection; until 
                        such failure has been corrected.
          (11) Termination.--The authority of the Commission to 
        grant a license or permit under this subsection shall 
        expire September 30, 2011.
          (12) Evaluation.--Not later than September 30, 1997, 
        the Commission shall conduct a public inquiry and 
        submit to the Congress a report--
                  (A) containing a statement of the revenues 
                obtained, and a projection of the future 
                revenues, from the use of competitive bidding 
                systems under this subsection;
                  (B) describing the methodologies established 
                by the Commission pursuant to paragraphs (3) 
                and (4);
                  (C) comparing the relative advantages and 
                disadvantages of such methodologies in terms of 
                attaining the objectives described in such 
                paragraphs;
                  (D) evaluating whether and to what extent--
                          (i) competitive bidding significantly 
                        improved the efficiency and 
                        effectiveness of the process for 
                        granting radio spectrum licenses;
                          (ii) competitive bidding facilitated 
                        the introduction of new spectrum-based 
                        technologies and the entry of new 
                        companies into the telecommunications 
                        market;
                          (iii) competitive bidding 
                        methodologies have secured prompt 
                        delivery of service to rural areas and 
                        have adequately addressed the needs of 
                        rural spectrum users; and
                          (iv) small businesses, rural 
                        telephone companies, and businesses 
                        owned by members of minority groups and 
                        women were able to participate 
                        successfully in the competitive bidding 
                        process; and
                  (E) recommending any statutory changes that 
                are needed to improve the competitive bidding 
                process.
          (13) Recovery of value of public spectrum in 
        connection with pioneer preferences.
                  (A) In general.--Notwithstanding paragraph 
                (6)(G), the Commission shall not award licenses 
                pursuant to a preferential treatment accorded 
                by the Commission to persons who make 
                significant contributions to the development of 
                a new telecommunications service or technology, 
                except in accordance with the requirements of 
                this paragraph.
                  (B) Recovery of value.--The Commission shall 
                recover for the public a portion of the value 
                of the public spectrum resource made available 
                to such person by requiring such person, as a 
                condition for receipt of the license, to agree 
                to pay a sum determined by--
                          (i) identifying the winning bids for 
                        the licenses that the Commission 
                        determines are most reasonably 
                        comparable in terms of bandwidth, scope 
                        of service area, usage restrictions, 
                        and other technical characteristics to 
                        the license awarded to such person, and 
                        excluding licenses that the Commission 
                        determines are subject to bidding 
                        anomalies due to the award of 
                        preferential treatment;
                          (ii) dividing each such winning bid 
                        by the population of its service area 
                        (hereinafter referred to as the per 
                        capita bid amount);
                          (iii) computing the average of the 
                        per capita bid amounts for the licenses 
                        identified under clause (i);
                          (iv) reducing such average amount by 
                        15 percent; and
                          (v) multiplying the amount determined 
                        under clause (iv) by the population of 
                        the service area of the license 
                        obtained by such person.
                  (C) Installments permitted.--The Commission 
                shall require such person to pay the sum 
                required by subparagraph (B) in a lump sum or 
                in guaranteed installment payments, with or 
                without royalty payments, over a period of not 
                more than 5 years.
                  (D) Rulemaking on pioneer preferences.--
                Except with respect to pending applications 
                described in clause (iv) of this subparagraph, 
                the Commission shall prescribe regulations 
                specifying the procedures and criteria by which 
                the Commission will evaluate applications for 
                preferential treatment in its licensing 
                processes (by precluding the filing of mutually 
                exclusive applications) for persons who make 
                significant contributions to the development of 
                a new service or to the development of new 
                technologies that substantially enhance an 
                existing service. Such regulations shall--
                          (i) specify the procedures and 
                        criteria by which the significance of 
                        such contributions will be determined, 
                        after an opportunity for review and 
                        verification by experts in the radio 
                        sciences drawn from among persons who 
                        are not employees of the Commission or 
                        by any applicant for such preferential 
                        treatment;
                          (ii) include such other procedures as 
                        may be necessary to prevent unjust 
                        enrichment by ensuring that the value 
                        of any such contribution justifies any 
                        reduction in the amounts paid for 
                        comparable licenses under this 
                        subsection;
                          (iii) be prescribed not later than 6 
                        months after the date of enactment of 
                        this paragraph;
                          (iv) not apply to applications that 
                        have been accepted for filing on or 
                        before September 1, 1994; and
                          (v) cease to be effective on the date 
                        of the expiration of the Commission's 
                        authority under subparagraph (F).
                  (E) Implementation with respect to pending 
                applications.--In applying this paragraph to 
                any broadband licenses in the personal 
                communications service awarded pursuant to the 
                preferential treatment accorded by the Federal 
                Communications Commission in the Third Report 
                and Order in General Docket 90-314 (FCC 93-550, 
                released February 3, 1994)--
                          (i) the Commission shall not 
                        reconsider the award of preferences in 
                        such Third Report and Order, and the 
                        Commission shall not delay the grant of 
                        licenses based on such awards more than 
                        15 days following the date of enactment 
                        of this paragraph, and the award of 
                        such preferences and licenses shall not 
                        be subject to administrative or 
                        judicial review;
                          (ii) the Commission shall not alter 
                        the bandwidth or service areas 
                        designated for such licenses in such 
                        Third Report and Order;
                          (iii) except as provided in clause 
                        (v), the Commission shall use, as the 
                        most reasonably comparable licenses for 
                        purposes of subparagraph (B)(i), the 
                        broadband licenses in the personal 
                        communications service for blocks A and 
                        B for the 20 largest markets (ranked by 
                        population) in which no applicant has 
                        obtained preferential treatment;
                          (iv) for purposes of subparagraph 
                        (C), the Commission shall permit 
                        guaranteed installment payments over a 
                        period of 5 years, subject to--
                                  (I) the payment only of 
                                interest on unpaid balances 
                                during the first 2 years, 
                                commencing not later than 30 
                                days after the award of the 
                                license (including any 
                                preferential treatment used in 
                                making such award) is final and 
                                no longer subject to 
                                administrative or judicial 
                                review, except that no such 
                                payment shall be required prior 
                                to the date of completion of 
                                the auction of the comparable 
                                licenses described in clause 
                                (iii); and
                                  (II) payment of the unpaid 
                                balance and interest thereon 
                                after the end of such 2 years 
                                in accordance with the 
                                regulations prescribed by the 
                                Commission; and
                          (v) the Commission shall recover with 
                        respect to broadband licenses in the 
                        personal communications service an 
                        amount under this paragraph that is 
                        equal to not less than $ 400,000,000, 
                        and if such amount is less than $ 
                        400,000,000, the Commission shall 
                        recover an amount equal to $ 
                        400,000,000 by allocating such amount 
                        among the holders of such licenses 
                        based on the population of the license 
                        areas held by each licensee. The 
                        Commission shall not include in any 
                        amounts required to be collected under 
                        clause (v) the interest on unpaid 
                        balances required to be collected under 
                        clause (iv).
                  (F) Expiration.--The authority of the 
                Commission to provide preferential treatment in 
                licensing procedures (by precluding the filing 
                of mutually exclusive applications) to persons 
                who make significant contributions to the 
                development of a new service or to the 
                development of new technologies that 
                substantially enhance an existing service shall 
                expire on the date of enactment of the Balanced 
                Budget Act of 1997.
                  (G) Effective date.--This paragraph shall be 
                effective on the date of its enactment and 
                apply to any licenses issued on or after August 
                1, 1994, by the Federal Communications 
                Commission pursuant to any licensing procedure 
                that provides preferential treatment (by 
                precluding the filing of mutually exclusive 
                applications) to persons who make significant 
                contributions to the development of a new 
                service or to the development of new 
                technologies that substantially enhance an 
                existing service.
          (14) Auction of recaptured broadcast television 
        spectrum.
                  (A) Limitations on terms of terrestrial 
                television broadcast licenses.--A full-power 
                television broadcast license that authorizes 
                analog television service may not be renewed to 
                authorize such service for a period that 
                extends beyond February 17, 2009.
                  (B) Spectrum reversion and resale.
                          (i) The Commission shall--
                                  (I) ensure that, as licenses 
                                for analog television service 
                                expire pursuant to subparagraph 
                                (A), each licensee shall cease 
                                using electromagnetic spectrum 
                                assigned to such service 
                                according to the Commission's 
                                direction; and
                                  (II) reclaim and organize the 
                                electromagnetic spectrum in a 
                                manner consistent with the 
                                objectives described in 
                                paragraph (3) of this 
                                subsection.
                          (ii) Licensees for new services 
                        occupying spectrum reclaimed pursuant 
                        to clause (i) shall be assigned in 
                        accordance with this subsection.
                  (C) Certain limitations on qualified bidders 
                prohibited.--In prescribing any regulations 
                relating to the qualification of bidders for 
                spectrum reclaimed pursuant to subparagraph 
                (B)(i), the Commission, for any license that 
                may be used for any digital television service 
                where the grade A contour of the station is 
                projected to encompass the entirety of a city 
                with a population in excess of 400,000 (as 
                determined using the 1990 decennial census), 
                shall not--
                          (i) preclude any party from being a 
                        qualified bidder for such spectrum on 
                        the basis of--
                                  (I) the Commission's duopoly 
                                rule (47 C.F.R. 73.3555(b)); or
                                  (II) the Commission's 
                                newspaper cross-ownership rule 
                                (47 C.F.R. 73.3555(d)); or
                          (ii) apply either such rule to 
                        preclude such a party that is a winning 
                        bidder in a competitive bidding for 
                        such spectrum from using such spectrum 
                        for digital television service.
                  (D) Continuation of analog broadcasting along 
                common border with mexico.--
                          (i) In general.--Notwithstanding any 
                        other provision of this section, any 
                        television station that has been 
                        granted a full-power television 
                        broadcast license that authorizes 
                        analog television service prior to 
                        February 17, 2009, that is licensed by 
                        the Commission to serve communities 
                        located within 50 miles of the United 
                        States common border with Mexico, and 
                        that can establish to the satisfaction 
                        of the Commission that such station's 
                        continued broadcasting of television 
                        service in analog is in the public 
                        interest, shall during the period 
                        beginning on the date of enactment of 
                        the DTV Border Fix Act of 2008, and 
                        ending February 17, 2014--
                                  (I) be entitled to the 
                                renewal of such station's 
                                television broadcast license 
                                authorizing analog television 
                                service; and
                                  (II) operate such television 
                                service on a channel between 2 
                                and 51.
                          (ii) Conditions.--The rights, 
                        privileges, and obligations described 
                        under clause (i) shall only be extended 
                        if the following requirements are 
                        satisfied:
                                  (I) Any channel used for the 
                                distribution of analog 
                                television service shall not--
                                          (aa) prevent the 
                                        auction of recovered 
                                        spectrum pursuant to 
                                        paragraph (15);
                                          (bb) prevent the use 
                                        of recovered spectrum 
                                        for any public safety 
                                        service pursuant to 
                                        section 337(a)(1);
                                          (cc) encumber or 
                                        interfere with any 
                                        channel reserved for 
                                        public safety use, as 
                                        such channels are 
                                        designated in ET Docket 
                                        No. 97-157; and
                                          (dd) prevent the 
                                        Commission from 
                                        considering or granting 
                                        a request for waiver 
                                        submitted for public 
                                        safety service prior to 
                                        the date of enactment 
                                        of the DTV Border Fix 
                                        Act of 2008.
                                  (II) Each station described 
                                in clause (i) operates on its 
                                assigned analog channel, as of 
                                February 16, 2009, if such 
                                channel--
                                          (aa) is between 2 and 
                                        51;
                                          (bb) has not 
                                        previously been 
                                        assigned to such 
                                        station or any another 
                                        station for digital 
                                        operation after the 
                                        digital transition 
                                        required under 
                                        subparagraph (A); and
                                          (cc) could be used by 
                                        such station for 
                                        broadcasting analog 
                                        television service 
                                        after the digital 
                                        transition required 
                                        under subparagraph (A) 
                                        without causing 
                                        interference to any 
                                        previously authorized 
                                        digital television 
                                        stations.
                                  (III) If such station does 
                                not meet the requirements under 
                                subclause (II) for operation on 
                                its assigned analog channel, as 
                                of February 16, 2009, such 
                                station may request, and the 
                                Commission shall promptly act 
                                upon such request, to be 
                                assigned a new channel for 
                                broadcasting analog television 
                                service, provided that such 
                                newly requested channel shall--
                                          (aa) be between 
                                        channels 2 and 51; and
                                          (bb) allow such 
                                        station to operate on a 
                                        primary basis without 
                                        causing interference 
                                        to--
                                                  (AA) any 
                                                other analog or 
                                                digital 
                                                television 
                                                station; or
                                                  (BB) any 
                                                station 
                                                licensed to 
                                                operate in any 
                                                other radio 
                                                service that 
                                                also operates 
                                                on channels 
                                                between 2 and 
                                                51.
                          (iii) Mutually exclusive 
                        applications.--If mutually exclusive 
                        applications are submitted for the 
                        right to use a channel in order to 
                        broadcast analog television service 
                        pursuant to this subparagraph, the 
                        Commission shall--
                                  (I) award the authority to 
                                use such channel for such 
                                purpose through the application 
                                of the procedures established 
                                under this section; and
                                  (II) give due consideration 
                                to any resolution procedures 
                                established by the Commission.
          (15) Commission to determine timing of auctions.
                  (A) Commission authority.--Subject to the 
                provisions of this subsection (including 
                paragraph (11)), but notwithstanding any other 
                provision of law, the Commission shall 
                determine the timing of and deadlines for the 
                conduct of competitive bidding under this 
                subsection, including the timing of and 
                deadlines for qualifying for bidding; 
                conducting auctions; collecting, depositing, 
                and reporting revenues; and completing 
                licensing processes and assigning licenses.
                  (B) Termination of portions of auctions 31 
                and 44.--Except as provided in subparagraph 
                (C), the Commission shall not commence or 
                conduct auctions 31 and 44 on June 19, 2002, as 
                specified in the public notices of March 19, 
                2002, and March 20, 2002 (DA 02-659 and DA 02-
                563).
                  (C) Exception.
                          (i) Blocks excepted.--Subparagraph 
                        (B) shall not apply to the auction of--
                                  (I) the C-block of licenses 
                                on the bands of frequencies 
                                located at 710-716 megahertz, 
                                and 740- 746 megahertz; or
                                  (II) the D-block of licenses 
                                on the bands of frequencies 
                                located at 716-722 megahertz.
                          (ii) Eligible bidders.--The entities 
                        that shall be eligible to bid in the 
                        auction of the C-block and D- block 
                        licenses described in clause (i) shall 
                        be those entities that were qualified 
                        entities, and that submitted 
                        applications to participate in auction 
                        44, by May 8, 2002, as part of the 
                        original auction 44 short form filing 
                        deadline.
                          (iii) Auction deadlines for excepted 
                        blocks.--Notwithstanding subparagraph 
                        (B), the auction of the C-block and D-
                        block licenses described in clause (i) 
                        shall be commenced no earlier than 
                        August 19, 2002, and no later than 
                        September 19, 2002, and the proceeds of 
                        such auction shall be deposited in 
                        accordance with paragraph (8) not later 
                        than December 31, 2002.
                          (iv) Report.--Within one year after 
                        the date of enactment of this 
                        paragraph, the Commission shall submit 
                        a report to Congress--
                                  (I) specifying when the 
                                Commission intends to 
                                reschedule auctions 31 and 44 
                                (other than the blocks excepted 
                                by clause (i)); and
                                  (II) describing the progress 
                                made by the Commission in the 
                                digital television transition 
                                and in the assignment and 
                                allocation of additional 
                                spectrum for advanced mobile 
                                communications services that 
                                warrants the scheduling of such 
                                auctions.
                          (v) Additional deadlines for 
                        recovered analog spectrum.--
                        Notwithstanding subparagraph (B), the 
                        Commission shall conduct the auction of 
                        the licenses for recovered analog 
                        spectrum by commencing the bidding not 
                        later than January 28, 2008, and shall 
                        deposit the proceeds of such auction in 
                        accordance with paragraph (8)(E)(ii) 
                        not later than June 30, 2008.
                          (vi) Recovered analog spectrum.--For 
                        purposes of clause (v), the term 
                        ``recovered analog spectrum'' means the 
                        spectrum between channels 52 and 69, 
                        inclusive (between frequencies 698 and 
                        806 megahertz, inclusive) reclaimed 
                        from analog television service 
                        broadcasting under paragraph (14), 
                        other than--
                                  (I) the spectrum required by 
                                section 337 to be made 
                                available for public safety 
                                services; and
                                  (II) the spectrum auctioned 
                                prior to the date of enactment 
                                of the Digital Television 
                                Transition and Public Safety 
                                Act of 2005.
                  (D) Return of payments.--Within one month 
                after the date of enactment of this paragraph, 
                the Commission shall return to the bidders for 
                licenses in the A-block, B-block, and E-block 
                of auction 44 the full amount of all upfront 
                payments made by such bidders for such 
                licenses.
          (16) Special auction provisions for eligible 
        frequencies.
                  (A) Special regulations.--The Commission 
                shall revise the regulations prescribed under 
                paragraph (4)(F) of this subsection to 
                prescribe methods by which the total cash 
                proceeds from any auction of eligible 
                frequencies described in section 113(g)(2) of 
                the National Telecommunications and Information 
                Administration Organization Act (47 U.S.C. 
                923(g)(2)) shall at least equal 110 percent of 
                the total estimated relocation costs provided 
                to the Commission pursuant to section 113(g)(4) 
                of such Act.
                  (B) Conclusion of auctions contingent on 
                minimum proceeds.--The Commission shall not 
                conclude any auction of eligible frequencies 
                described in section 113(g)(2) of such Act if 
                the total cash proceeds attributable to such 
                spectrum are less than 110 percent of the total 
                estimated relocation costs provided to the 
                Commission pursuant to section 113(g)(4) of 
                such Act. If the Commission is unable to 
                conclude an auction for the foregoing reason, 
                the Commission shall cancel the auction, return 
                within 45 days after the auction cancellation 
                date any deposits from participating bidders 
                held in escrow, and absolve such bidders from 
                any obligation to the United States to bid in 
                any subsequent reauction of such spectrum.
                  (C) Authority to issue prior to 
                deauthorization..--In any auction conducted 
                under the regulations required by subparagraph 
                (A), the Commission may grant a license 
                assigned for the use of eligible frequencies 
                prior to the termination of an eligible Federal 
                entity's authorization. However, the Commission 
                shall condition such license by requiring that 
                the licensee cannot cause harmful interference 
                to such Federal entity until such entity's 
                authorization has been terminated by the 
                National Telecommunications and Information 
                Administration.
  (k) Broadcast station renewal procedures.
          (1) Standards for renewal.--If the licensee of a 
        broadcast station submits an application to the 
        Commission for renewal of such license, the Commission 
        shall grant the application if it finds, with respect 
        to that station, during the preceding term of its 
        license--
                  (A) the station has served the public 
                interest, convenience, and necessity;
                  (B) there have been no serious violations by 
                the licensee of this Act or the rules and 
                regulations of the Commission; and
                  (C) there have been no other violations by 
                the licensee of this Act or the rules and 
                regulations of the Commission which, taken 
                together, would constitute a pattern of abuse.
          (2) Consequence of failure to meet standard.--If any 
        licensee of a broadcast station fails to meet the 
        requirements of this subsection, the Commission may 
        deny the application for renewal in accordance with 
        paragraph (3), or grant such application on terms and 
        conditions as are appropriate, including renewal for a 
        term less than the maximum otherwise permitted.
          (3) Standards for denial.--If the Commission 
        determines, after notice and opportunity for a hearing 
        as provided in subsection (e), that a licensee has 
        failed to meet the requirements specified in paragraph 
        (1) and that no mitigating factors justify the 
        imposition of lesser sanctions, the Commission shall--
                  (A) issue an order denying the renewal 
                application filed by such licensee under 
                section 308; and
                  (B) only thereafter accept and consider such 
                applications for a construction permit as may 
                be filed under section 308 specifying the 
                channel or broadcasting facilities of the 
                former licensee.
          (4) Competitor consideration prohibited.--In making 
        the determinations specified in paragraph (1) or (2), 
        the Commission shall not consider whether the public 
        interest, convenience, and necessity might be served by 
        the grant of a license to a person other than the 
        renewal applicant.
  (l) Applicability of competitive bidding to pending 
comparative licensing cases.--With respect to competing 
applications for initial licenses or construction permits for 
commercial radio or television stations that were filed with 
the Commission before July 1, 1997, the Commission shall--
          (1) have the authority to conduct a competitive 
        bidding proceeding pursuant to subsection (j) to assign 
        such license or permit;
          (2) treat the persons filing such applications as the 
        only persons eligible to be qualified bidders for 
        purposes of such proceeding; and
          (3) waive any provisions of its regulations necessary 
        to permit such persons to enter an agreement to procure 
        the removal of a conflict between their applications 
        during the 180-day period beginning on the date of 
        enactment of the Balanced Budget Act of 1997.