Unless the Fairness Doctrine gets renewed - which from early polling it's not going to - the bill in general, much less revisions like this nutjob is proposing are pointless.
It's supposed to expire later this year, and really had no teeth other than a polite recommendation.
And basically Phelkis, I don't think being outside of the state's you'd get a good view on how wacky our news media is - two of the more popular outlets (Fox and MSNBC - one Con, one Lib) have a tendency to run stories excessively with little sourcing and then if they're found to be false run very little "retraction" coverage - leading most folks to believe that the retraction never occurred. [Both have even gone as far as to refer to their "news" programs as entertainment, not news in court cases to get around any discipline for inaccuracies]
So basically if it expanded to the internet, the blogosphere would start to be accountable for the stories they run - which are frequently just rumors, and incorrect. Although as the Lewinsky issue and a few other have shown over the years, there is that valuable 1% that jumpstarts something real.
It's a mixed bag really - anything that labels itself "news" should have a certain accuracy rating it's required to maintain. That's sensible - anything else should be labeled as entertainment (as Fox and MSNBC have done although quietly) - that's the only censorship I could personally approve of. No stupid fines, no banning content - just simply a text bar (or an occasional message during a radio program) that identifies the accuracy ratings of the given media source. (Something like the BBB for news, a clear tally included researchers who analyze each and give reports on the specific inaccuracies)
Entertaining "news" with some embellishment is fine, it's just got to have be identified as such with something to encourage the news purveyors to aim for complete accuracy. Right now "early stories" are such a big selling point, and inaccuracy is such a non-penalty that nearly everyone runs an early partial story, filling in the blanks, rather than reporting it accurately.