[House Report 106-567]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-567
======================================================================
RADIO BROADCASTING PRESERVATION ACT OF 2000
_______
April 10, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bliley, from the Committee on Commerce, submitted the following
R E P O R T
[To accompany H.R. 3439]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, to whom was referred the bill
(H.R. 3439) to prohibit the Federal Communications Commission
from establishing rules authorizing the operation of new, low
power FM radio stations, having considered the same, report
favorably thereon with amendments and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Committee Consideration.......................................... 4
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 5
Committee on Government Reform Oversight Findings................ 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Committee Cost Estimate.......................................... 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 9
Amendment
The amendments are as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Radio Broadcasting Preservation Act of
2000''.
SEC. 2. MODIFICATIONS TO LOW-POWER FM REGULATIONS REQUIRED.
(a) Third-Adjacent Channel Protections Required.--
(1) Modifications required.--The Federal Communications
Commission shall modify the rules authorizing the operation of
low-power FM radio stations, as proposed in MM Docket No. 99-
25, to--
(A) prescribe minimum distance separations for third-
adjacent channels (as well as for co-channels and
first- and second-adjacent channels); and
(B) prohibit any applicant from obtaining a low-power
FM license if the applicant has engaged in any manner
in the unlicensed operation of any station in violation
of section 301 of the Communications Act of 1934 (47
U.S.C. 301).
(2) Congressional authority required for further changes.--
The Federal Communications Commission may not--
(A) eliminate or reduce the minimum distance
separations for third-adjacent channels required by
paragraph (1)(A), or
(B) extend the eligibility for application for low-
power FM stations beyond the organizations and entities
as proposed in MM Docket No. 99-25 (47 C.F.R. 73.853),
except as expressly authorized by Act of Congress enacted after
the date of enactment of this Act.
(3) Validity of prior actions.--Any license that was issued
by the Commission to a low-power FM station prior to the date
on which the Commission modify its rules as required by
paragraph (1) and that does not comply with such modifications
shall be invalid.
(b) Further Evaluation of Need for Third-Adjacent Channel
Protections.--
(1) Pilot program required.--The Federal Communications
Commission shall conduct an experimental program to test
whether low-power FM radio stations will result in harmful
interference to existing FM radio stations if such stations are
not subject to the minimum distance separations for third-
adjacent channels required by subsection (a). The Commission
shall conduct such test in no more than 9 FM radio markets,
including urban, suburban, and rural markets, by waiving the
minimum distance separations for third-adjacent channels for
the stations that are the subject of the experimental program.
At least one of the stations shall be selected for the purpose
of evaluating whether minimum distance separations for third-
adjacent channels are needed for FM translator stations. The
Commission may, consistent with the public interest, continue
after the conclusion of the experimental program to waive the
minimum distance separations for third-adjacent channels for
the stations that are the subject of the experimental program.
(2) Conduct of testing.--The Commission shall select an
independent testing entity to conduct field tests in the
markets of the stations in the experimental program under
paragraph (1). Such field tests shall include--
(A) an opportunity for the public to comment on
interference; and
(B) independent audience listening tests to determine
what is objectionable and harmful interference to the
average radio listener.
(3) Report to congress.--The Commission shall publish the
results of the experimental program and field tests and afford
an opportunity for the public to comment on such results. The
Federal Communications Commission shall submit a report on the
experimental program and field tests to the Committee on
Commerce of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate not later
than February 1, 2001. Such report shall include--
(A) an analysis of the experimental program and field
tests and of the public comment received by the
Commission;
(B) an evaluation of the impact of the modification
or elimination of minimum distance separations for
third-adjacent channels on--
(i) listening audiences;
(ii) incumbent FM radio broadcasters in
general, and on minority and small market
broadcasters in particular, including an
analysis of the economic impact on such
broadcasters;
(iii) the transition to digital radio for
terrestrial radio broadcasters;
(iv) stations that provide a reading service
for the blind to the public; and
(v) FM radio translator stations;
(C) the Commission's recommendations to the Congress
to reduce or eliminate the minimum distance separations
for third-adjacent channels required by subsection (a);
and
(D) such other information and recommendations as the
Commission considers appropriate.
Amend the title so as to read:
A bill to require the Federal Communications Commission to revise
its regulations authorizing the operation of new, low-power FM radio
stations.
Purpose and Summary
Low Power FM (LPFM) refers to a new FM Radio service
adopted by the FCC on January 20, 2000. This new radio service
is to provide a class of radio stations to serve very localized
communities, or under represented groups within those
communities, with a new, localized radio broadcast service in
order to enhance community-oriented radio broadcasting.
However, some questions exist as to the amount of interference
that these new stations will bring to the signals of currently
operating radio broadcasters.
The purpose of H.R. 3439, the Radio Broadcasting
Preservation Act of 2000, is to modify the FCC rules
authorizing the operation of low-power FM radio stations. In
response to the new service proposed by the FCC, the bill
requires Congressional authority for the FCC to eliminate or
reduce any interference standards on the radio dial. Further,
the bill establishes a pilot program to study the amount of
interference that such new low power FM radio stations will
cause to existing broadcasters under the interference standards
contained in the FCC's original Order, and requires a report to
Congress no later than February 1, 2001.
Background and Need for Legislation
The FCC's Order (Mass Media Docket No. 99-25) authorized
two new classes of noncommercial LPFM radio services, (1) LP
100, with power from 50-100 watts reaching a radius of about
3.5 miles; and (2) LP 10, with power from 1-10 watts reaching a
radius of about 1-2 miles. The Order requires that new stations
must be offered by a noncommercial entity, which may include:
(1) government or private educational organizations,
associations or entities; (2) non-profit entities with
educational purposes; or, (3) government or non-profit entities
providing local public safety or transportation services. No
existing broadcaster, or any other media entity may have an
ownership interest, or enter into any program or operating
agreement with any LPFM station.
The FCC's original intent in creating the LPFM service was
to create a class of radio stations ``designed to serve very
localized communities or under represented groups within
communities.'' The Commission found that the recent extensive
consolidation of radio stations into large commercial groups,
combined with the financial challenges of operating full power
commercial stations, has limited the broadcasting opportunities
for highly localized interests.
The controversy regarding this new service revolves around
whether or not this new class of radio stations will cause
interference to existing broadcasters' signals. Currently,
protection exists on the FM dial within three adjacent channel
positions. The new FCC Order would lift those third adjacent
channel protections in order to allow for the introduction of
more low power FM radio stations on the dial.
At the hearings held by the Subcommittee on
Telecommunications, Trade and Consumer Protection, the
Subcommittee heard testimony that contradicted the FCC studies
that supported elimination of third adjacent channel
interference protection, as well as evidence that the new LPFM
stations may interfere with Radio Reading Services carried on
subcarriers of full-power FM stations. The Subcommittee also
received testimony that the introduction of LPFM service may
have a deleterious effect on the service now provided to
listeners by many small market and minority-owned radio
stations.
The Committee concludes that these concerns are well-
justified and that the FCC erred in rushing to adopt LPFM
rules. The bill, therefore, requires the FCC to revise its LPFM
rules to maintain preexisting levels of interference
protection. It further requires the FCC, using an independent
testing entity, to conduct further studies of the potential for
interference from LPFM stations and of the impact of LPFM
service.
Hearings
The Telecommunications, Trade, and Consumer Protection
Subcommittee met and held a legislative hearing on February 17,
2000 on H.R. 3439, the Radio Broadcasting Preservation Act. The
Subcommittee heard testimony from one panel of witnesses,
comprised of: Mr. Bruce Franca, Deputy Chief, Office of
Engineering and Technology, Federal Communications Commission;
Mr. Eddie Fritts, CEO, National Association of Broadcasting;
The Honorable Harold Furchtgott-Roth, Commissioner, Federal
Communications Commission; Mr. Charles L. Jackson, CEO, Jackson
Telecom Consulting; Mr. Kevin Klose, President and CEO,
National Public Radio; Mr. Dirk Koning, Executive Director,
Grand Rapids Community Media Center; Mr. David Maxon, Founder,
Broadcast Signal Lab on behalf of The Lawyers Guild; Dr.
Theodore S. Rappaport, Professor,Virginia Polytechnic Institute
and State University; Mr. Bruce T. Reese, President and CEO,
Bonneville International Corporation; and Mr. Don Schellhardt,
National Coordinator, The Amherst Alliance.
Committee Consideration
On March 23, 2000 the Subcommittee on Telecommunications,
Trade and Consumer Protection met in open mark up session and
approved H.R. 3439, the Radio Broadcasting Preservation Act of
1999 for Full Committee consideration, without amendment, by a
voice vote.
On March 30, 2000 the Committee met in open markup session
and ordered H.R. 3439 reported to the House, as amended, by a
voice vote, a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House requires
the Committee to list the record votes on the motion to report
legislation and amendments thereto. There were no record votes
taken in connection with ordering H.R. 3439 reported. A motion
by Mr. Bliley to order H.R. 3439 reported to the House, as
amended, was agreed to by a voice vote, a quorum being present.
The following amendment was agreed to by a voice vote:
An amendment in the nature of a substitute by Mrs.
Wilson, No. 1, prescribing third adjacent channel
protections on the FM radio dial, requiring
Congressional authority for future changes to these
protections, mandating the FCC to conduct a pilot
program administered by an independent testing entity
to test whether low power FM radio stations will result
in harmful interference to existing FM radio stations,
if third channel protections are not in place, and
requiring the FCC to report its findings to Congress by
February 1, 2001.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a legislative
hearing and made findings that are reflected in this report.
Committee on Government Reform Oversight Findings
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, no oversight findings have been
submitted to the Committee by the Committee on Government
Reform.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
3439, the Radio Broadcasting Preservation Act, would result in
no new or increased budget authority, entitlement authority, or
tax expenditures or revenues.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 10, 2000.
Hon. Tom Bliley,
Chairman, Committee on Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3439, the Radio
Broadcast Preservation Act of 2000.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Kathleen
Gramp (for federal costs), Shelley Finlayson (for the state and
local impact), and Jean Wooster (for the private-sector
impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.R. 3439--Radio Broadcasting Preservation Act of 2000
H.R. 3439 would establish guidelines and procedures for
licensing low-power FM radio stations. This newly created
service would allow noncommercial and educational entities to
broadcast radio signals at 10 watts to 100 watts, subject to a
requirement that the new station not interfere with existing FM
radio broadcasts. This bill would direct the Federal
Communications Commission (FCC) to modify its rules to
prescribe certain technical and legal standards outlined in the
legislation. H.R. 3439 also would require existing applicants
to comply with standards required by the bill and would limit
eligibility for new stations. Finally, H.R. 3439 would direct
the FCC to conduct field studies and other experiments on the
minimum distances needed between channels to prevent
interference to existing radio stations and translator
stations.
Based on information from the FCC, CBO estimates that
conducting the studies and regulatory proceedings required by
the bill would cost about $1 million in fiscal year 2001,
subject to the appropriation of the necessary amounts. We
estimate that this additional expense would have no net effect
on discretionary spending, however, because the FCC assesses
and collects fees from the communications industry to offset
the amounts appropriated for such expenses. CBO estimates that
H.R. 3439 would not affect direct spending or receipts;
therefore pay-as-you-go procedures would not apply.
H.R. 3439 would impose both a private-sector and an
intergovernmental mandate, as defined by the Unfunded Mandates
Reform Act (UMRA). CBO estimates that the mandate would not
impose any significant costs, and thus, would not exceed the
thresholds established by UMRA ($109 million in 2000 for
private-sector mandates and $55 million in 2000 for
intergovernmental mandates, adjusted annually for inflation).
A great deal of uncertainty surrounds the timing and the
number of expected applicants under FCC's current plan to
establish low-power FM radio stations. However, based on
information from industry sources and the FCC's final rule, 47
CFR Parts 11, 73, and 74, CBO assumes that the FCC would issue
licenses for up to 400 privately or publicly owned
noncommercial stations. The FCC plans to accept the first of
five rounds of applications for the low-power radio stations in
May and to grant the licenses in September. If H.R. 3439 were
enacted after September, any licenses that the FCC issued in
September that do not comply with the bill's requirements would
be invalid. It is unclear how many licenses would be issued or
how many of them would be invalidated by the new requirements
in H.R. 3439, however, the invalidation of any licenses would
constitute a mandate as defined by UMRA. There would be no new
mandate as defined by UMRA if the bill is enacted before any
licenses are issued. CBO estimates that the mandate imposed by
invalidating licenses would not result in any significant
costs. Moreover, assuming that the time between the issuance of
licenses and the enactment of the bill would be short, it is
unlikely that new license holders would have made any
significant expenditures, such as radio equipment, associated
with the licenses.
The CBO staff contacts are Kathleen Gramp (for federal
costs), Shelley Finlayson (for the state and local impact), and
Jean Wooster (for the private-sector impact). This estimate was
approved by Peter H. Fontaine, Deputy Assistant Director for
Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of Rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
Article I, section 8, clause 3, which grants Congress the power
to regulate commerce with foreign nations, among the several
States, and with the Indian tribes.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides the short title of the legislation,
the ``Radio Broadcasting Preservation Act of 2000.''
Section 2. Modifications to low-power FM regulations required
Section 2(a)(1) of the bill directs the FCC to modify its
rules authorizing LPFM service to provide for minimum
separations between LPFM stations and other stations operating
on the same channel, or the first, second, or third adjacent
channel from the LPFM station. The Commission is directed to
maintain the same level of protection from interference from
other stations for existing stations and any new full-power
stations as the Commission's rules provided for such full power
stations on January 1, 2000, as provided in section 73 of the
Commission's rules (47 C.F.R. 73) in effect on that date. The
Committee intends that this level of protection should apply at
any time during the operation of an LPFM station. Thus, LPFM
stations which are authorized under this section, but cause
interference to new or modified facilities of a full-power
station, would be required to modify their facilities or cease
operations.
The Commission is further required to amend its rules to
bar issuance of an LPFM license to any applicant that
previously engaged in unlicensed broadcasting in violation of
section 301 of the 1934 Communications Act (47 U.S.C.
Sec. 301). The Committee concludes that the operation of an
unlicensed station demonstrates a lack of commitment to follow
the basic rules and regulations which are essential to having a
broadcast service that serves the public, and those individuals
or groups should not be permitted to receive licenses in the
LPFM service.
Section 2(a)(2) of the bill prohibits the FCC from further
changes to the minimum distance separation rules for FM
stations, or from permitting commercial entities to be licensed
in the LPFM service, without express authorization by Congress.
Section 2(a)(3) of the bill provides that any license
issued by the Commission for an LPFM station prior to the time
when the rules are modified pursuant to section 2(a)(1) will be
invalid if the LPFM station's facilities would not provide to
other stations the interference protections established in the
bill.
The bill directs the Commission to conduct tests of the
interference effects of LPFM stations. Section 2(b)(1) requires
that the Commission conduct an experimental program in no more
than nine radio markets by waiving the minimum distance
separations for third adjacent channels for the stations that
are the subject of the experimental program. The Commission
must authorize experimental licenses for LPFM stations in
various types of markets which may have differing interference
environments.
Section 2(b)(2) mandates the selection of an independent
testing entity that is not associated with the Commission to
conduct field tests in the markets in the experimental program.
The Committee expects there to be a meaningful opportunity for
the public to comment on the structure and methodology of the
field tests. The independent entity must, at a minimum, accept
comments from the public on the extent to which the
experimental stations create interference, and conduct audience
listening tests in order to establish the level of interference
that is objectionable to the average radio listener. In making
the latter determination, the Committee intends that the
independent testing entity take into account the effects of
interference on all kinds of radios in the market, and further,
to rely, as appropriate, on international and academic
standards for determining interference.
Following completion of the work of the independent testing
entity, the Commission will be required under section 2(b)(3)
to publish the results of the experimental program and to
solicit comments from the public. It must then submit a report
to this Committee and the Committee on Commerce, Science and
Transportation of the Senate which includes an analysis of the
experimental program, the field tests, and the public comments
the Commission received. The FCC's report must also assess the
impact (using the same standards for establishing the levels of
objectionable interference established for the independent
testing entity) which modifying or eliminating the protection
against third adjacent channel interference would have on
listening audiences, on incumbent broadcasters (particularly
minority and small market stations and the economic impact that
an increased number of LPFM stations would have on those
broadcasters), on the transition of terrestrial radio
broadcasters to digital service, on stations that provide
reading services for the blind, and on FM translator stations
generally. The report must also include any recommendations the
Commission may have with respect to modifying or eliminating
the LPFM rules concerning protection against third adjacent
channel interference from LPFM stations, and such other
information or recommendations as the Commission may wish to
provide.
Changes in Existing Law Made by the Bill, as Reported
This legislation does not amend any existing Federal
statute.