[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4675 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4675

    To amend the Communications Act of 1934 to establish rules and 
 regulations for the redistribution or retransmission of local signals 
           by satellite broadcasters, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 1998

Mr. Tauzin (for himself, Mr. Markey, Mr. Deal of Georgia, Mr. Boucher, 
 Mr. Sanders, and Mrs. Kelly) introduced the following bill; which was 
referred to the Committee on Commerce, and in addition to the Committee 
  on the Judiciary, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To amend the Communications Act of 1934 to establish rules and 
 regulations for the redistribution or retransmission of local signals 
           by satellite broadcasters, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Satellite Consumer Protection and 
Competition Act of 1998''.

SEC. 2. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
January 1, 1999.

           TITLE I--AMENDMENTS TO COMMUNICATIONS ACT OF 1934

SEC. 101. RETRANSMISSION CONSENT.

    Section 325 of the Communications Act of 1934 (47 U.S.C. 325) is 
amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively;
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Satellite Retransmissions.--
            ``(1) Retransmission consent required.--No satellite 
        carrier shall retransmit the signal of a television broadcast 
        station, or any part thereof, except--
                    ``(A) with the express authority of the station; or
                    ``(B) pursuant to section 337, in the case of a 
                station electing, in accordance with this subsection, 
                to assert the right to carriage under such section.
            ``(2) Exclusions.--The provisions of this subsection shall 
        not apply to--
                    ``(A) retransmission of the signal of a 
                noncommercial television broadcast station;
                    ``(B) retransmission of the signal of a television 
                broadcast station outside the station's local market by 
                a satellite carrier directly to subscribers if--
                            ``(i) such station was a superstation on 
                        May 1, 1991; and
                            ``(ii) on December 31, 1997, such station 
                        was a network station and its signal was 
                        retransmitted by satellite carriers directly to 
                        at least 500,000 subscribers;
                    ``(C) retransmission of the distant signal of a 
                broadcasting station that is owned or operated by, or 
                affiliated with, a broadcasting network directly to a 
                home satellite antenna, if the household receiving the 
                signal is an unserved household;
                    ``(D) retransmission by a cable operator or other 
                multichannel video programming distributor (other than 
                by a satellite carrier direct to its subscribers) of 
                the signal of a television broadcast station outside 
                the station's local market, if such signal was obtained 
                from a satellite carrier and--
                            ``(i) the originating station was a 
                        superstation on May 1, 1991; and
                            ``(ii) the originating station was a 
                        network station on December 31, 1997, and its 
                        signal was retransmitted by a satellite carrier 
                        directly to subscribers; or
                    ``(E) retransmission by a satellite carrier to a 
                subscriber before the effective date of the regulations 
                required by paragraph (3).
            ``(3) Promulgation of the regulations.--Within 45 days 
        after the effective date of the Satellite Consumer Protection 
        and Competition Act of 1998, the Commission shall commence a 
        rulemaking proceeding to revise the regulations governing the 
        exercise by television broadcast stations of the right to grant 
        retransmission consent under this subsection, and such other 
        regulations as are necessary to administer the limitation 
        contained in paragraph (2). The Commission shall complete all 
        actions necessary to prescribe such regulations within one year 
        after such effective date. Such regulations shall--
                    ``(A) establish election time periods that 
                correspond with those regulations adopted under section 
                325(b)(3)(B) of the Communications Act of 1934;
                    ``(B) prohibit television broadcast stations that 
                provide retransmission consent from engaging in 
                practices, understandings, arrangements and activities, 
                including exclusive contracts for carriage that prevent 
                a satellite carrier from obtaining retransmission 
                consent from such stations;
                    ``(C) require television broadcast stations that 
                provide retransmission consent to do so on 
                nondiscriminatory financial terms and conditions, and 
                with respect to nonfinancial terms and conditions, take 
                into account whether different types of multichannel 
                video programming distributors can or cannot provide 
                all of the same types of nonfinancial consideration, if 
                any is required, to such stations; and
                    ``(D) establish a mechanism for resolution of 
                disputes concerning the provisions of this subsection, 
                including--
                            ``(i) expedited review of any complaint 
                        made pursuant to this subsection; and
                            ``(ii) procedures for the Commission to 
                        collect such data, including the right to 
                        obtain copies of all contracts and documents 
                        reflecting arrangements and understandings 
                        alleged to violate this subsection, as the 
                        Commission requires to carry out the provisions 
                        of this subsection.
            ``(4) Definitions.--For purposes of this subsection:
                    ``(A) Television broadcast station.--The term 
                `television broadcast station' means an over-the-air 
                commercial or noncommercial television broadcast 
                station licensed by the Federal Communications 
                Commission under subpart E of part 73 of title 47, Code 
                of Federal Regulations, as such regulations are in 
                effect on August 4, 1998, and as they may be amended 
                thereafter, except that such term does not include a 
                low-power or translator television broadcast station.
                    ``(B) Broadcasting network.--The term `broadcasting 
                network' means a television network in the United 
                States which offers an interconnected program service 
                on a regular basis for 15 or more hours per week to at 
                least 25 affiliated broadcast stations in 10 or more 
                States.
                    ``(C) Network station.--The term `network station' 
                means a television broadcast station that is owned or 
                operated by, or affiliated with, a broadcasting 
                network.
            ``(5) Local market.--
                    ``(A) In the case of both commercial and 
                noncommercial television broadcast stations, the term 
                `local market' means the designated market area in 
                which a station is located.
                    ``(B) In the case of a commercial television 
                broadcast station, all commercial television broadcast 
                stations licensed to a community within the same 
                designated market area are within the same local 
                market.
                    ``(C) In the case of a noncommercial educational 
                television broadcast station, the market includes any 
                station that is licensed to a community within the same 
                designated market area as the noncommercial educational 
                television broadcast station.
            ``(6) Designated market area.--The term `designated market 
        area' means a designated market area, as determined by Nielsen 
        Media Research and published in the DMA Market and Demographic 
        Report.''.

SEC. 102. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
              BROADCAST SIGNALS.

    Title III of the Communications Act of 1934 is amended by inserting 
after section 336 the following new section:

``SEC. 337. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

    ``(a) Carriage Obligations.--
            ``(1) In general.--Subject to the limitations of 
        subparagraph (2), each satellite carrier providing secondary 
        transmissions to subscribers located within the local market of 
        a television broadcast station of a primary transmission made 
        by that station shall carry upon request all television 
        broadcast stations located within that local market, subject to 
        section 325(c), by retransmitting the signal or signals of such 
        station that are identified by Commission regulations for 
        purposes of this subsection.
            ``(2) Limitations.--
                    ``(A) Until the date as established in subparagraph 
                (B), each satellite carrier providing secondary 
                transmissions to subscribers located within the local 
                market of a television broadcast station of a primary 
                transmission made by that station shall carry a minimum 
                of 5 local television broadcast stations in that local 
                market at least one of which shall be a noncommercial 
                educational broadcast station in that market.
                    ``(B) No satellite carrier shall be required to 
                carry more than the number of local television 
                broadcast stations specified in subparagraph (A) until 
                January 1, 2002.
                    ``(C) A satellite carrier providing secondary 
                transmissions to subscribers pursuant to subparagraph 
                (A) shall not be required to carry a greater number of 
                signals of local broadcast stations within a local 
                market than one-third of the usable activated channels 
                of such carrier that are used in providing video 
                programming to subscribers in such local market.
                    ``(D) Carriage of local broadcast stations within 
                the local market shall be at the discretion of the 
                satellite carrier, subject to the minimum requirement 
                established in subparagraph (A) and the requirements of 
                section 325(c).
    ``(b) Content To Be Carried.--
            ``(1) Video, audio, and closed caption.--A satellite 
        carrier providing secondary transmissions to subscribers 
        located within the local market of a television broadcast 
        station of a primary transmission made by that station shall 
carry in its entirety, the primary video, accompanying audio, and line 
21 closed caption transmission of each of the local commercial 
television stations so provided by the carrier and, to the extent 
technically feasible, program-related material carried in the vertical 
blanking interval or on subcarriers. Retransmission of other material 
in the vertical blanking internal or other nonprogram-related material 
(including teletext and other subscription and advertiser-supported 
information services) shall be at the discretion of the satellite 
carrier. Where appropriate and feasible, satellite carriers may delete 
signal enhancements, such as ghost-canceling, from the broadcast signal 
and employ other enhancements.
            ``(2) Program schedule.--Except as otherwise provided in 
        regulations of the Commission, the satellite carrier shall 
        carry the entirety of the program schedule of any television 
        station transmitted as described in paragraph (1) by the 
        satellite carrier unless carriage of specific programming is 
        prohibited, and other programming authorized to be substituted, 
        under section 76.67 or subpart F of part 76 of title 47, Code 
        of Federal Regulations (as in effect on January 1, 1991), or 
        any successor regulations thereto.
    ``(c) Duplication Not Required.--Notwithstanding subsection (a), a 
satellite carrier shall not be required to carry upon request the 
signal of any local television broadcast station that substantially 
duplicates the signal of another television broadcast station which is 
secondarily transmitted by the satellite carrier within the same local 
market, or to carry upon request the signals of more than 1 local 
television broadcast station in a single local market that is 
affiliated with a particular broadcast network (as the term is defined 
by regulation).
    ``(d) Channel Positioning.--No satellite carrier shall be required 
to provide the signal of a local television broadcast station to 
subscribers in that station's local market on any particular channel 
number or to provide the signals in any particular order, except that 
the satellite carrier shall retransmit the signal of the local 
television broadcast stations to subscribers in the stations' local 
market on contiguous channels and in a nondiscriminatory manner on any 
navigational device, on-screen program guide, or menu.
    ``(e) Compensation for Carriage.--A satellite carrier shall not 
accept or request monetary payment or other valuable consideration in 
exchange either for carriage of local television broadcast stations in 
fulfillment of the requirements of this section, except that any such 
station is required to bear the costs associated with delivering a good 
quality signal to the designated uplink facility of the satellite 
carrier.
    ``(f) Regulations by Commission.--Within 180 days after the 
effective date of this section, the Commission shall, following a 
rulemaking proceeding, issue regulations implementing this section.
    ``(g) Remedies.--
            ``(1) Complaints by broadcast stations.--Whenever a local 
        television broadcast station believes that a satellite carrier 
        has failed to meet its obligations under this subsection, such 
        station shall notify the carrier, in writing, of the alleged 
        failure and identify its reasons for believing that the 
        satellite carrier is obligated to carry upon request the signal 
        of such station or has otherwise failed to comply with other 
        requirements of this subsection. The satellite carrier shall, 
        within 30 days of such written notification, respond in writing 
        to such notification and either begin carrying the signal of 
        such station in accordance with the terms requested or state 
        its reasons for believing that it is not obligated to carry 
        such signal or is in compliance with other requirements of this 
        subsection, as the case may be. A local television broadcast 
        station that is denied carriage in accordance with this 
        subsection by a satellite carrier or is otherwise harmed by a 
        response by a satellite carrier that it is in compliance with 
        other requirements of this subsection may obtain review of such 
        denial or response by filing a compliant with the Commission. 
        Such complaint shall allege the manner in which such satellite 
        carrier has failed to meet its obligations and the basis for 
        such allegations.
            ``(2) Opportunity to respond.--The Commission shall afford 
        the satellite carrier against which a complaint is filed under 
        subparagraph (A) an opportunity to present data and arguments 
        to establish that there has been no failure to meet its 
        obligations under this subsection.
            ``(3) Remedial actions; dismissal.--Within 120 days after 
        the date a complaint is filed under subparagraph (A), the 
        Commission shall determine whether the satellite carrier has 
        met its obligations under this chapter. If the Commission 
        determines that the satellite carrier has failed to meet such 
        obligations, the Commission shall order the satellite carrier, 
        in the case of an obligation to carry a station, to begin 
        carriage of the station and to continue such carriage for at 
        least 12 months, or, in the case of the failure to meet other 
        obligations under this subsection, shall take other appropriate 
        remedial action. If the Commission determines that the 
        satellite carrier has fully met the requirements of this 
        chapter, the Commission shall dismiss the complaint.
    ``(h) Definitions.--As used in this section:
            ``(1) Designated market area.--The term `designated market 
        area' means a designated market area, as determined by the 
        Nielsen Media Research and published in the DMA Market and 
        Demographic Report.
            ``(2) Distributor.--The term `distributor' means an entity 
        which contracts to distribute secondary transmissions from a 
        satellite carrier and, either as a single channel or in a 
        package with other programming, provides the secondary 
        transmission either directly to individual subscribers or 
        indirectly through other program distribution entities.
            ``(3) Local market.--
                    ``(A) In the case of both commercial and 
                noncommercial television broadcast stations, the term 
                `local market' means the designated market area in 
                which a station is located.
                    ``(B) In the case of a commercial television 
                broadcast station, all commercial television broadcast 
                stations licensed to a community within the same 
                designated market area are within the same local 
                market.
                    ``(C) In the case of a noncommercial educational 
                television broadcast station, the market includes any 
                station that is licensed to a community within the same 
                designated market area as the noncommercial educational 
                television broadcast station.
            ``(4) Designated uplink facility.--The term `designated 
        uplink facility' means the reception point in each local market 
        which a satellite carrier designates for delivery of the signal 
        of the station for purposes of retransmission. The designation 
        of such facility by a satellite carrier shall not be used to 
        undermine or evade the carriage requirements imposed by this 
        chapter.
            ``(5) Subscriber.--The term `subscriber' means an entity 
        that receives a secondary transmission service by means of a 
        secondary transmission from a satellite and pays a fee for the 
        service, directly or indirectly, to the satellite carrier or to 
        a distributor.
            ``(6) Television broadcast station.--The term `television 
        broadcast station' means an over-the-air commercial or 
        noncommercial television broadcast station licensed by the 
        Federal Communications Commission under subpart E of part 73 of 
        title 47, Code of Federal Regulations, as such regulations are 
        in effect on August 4, 1998, and as they may be amended 
        thereafter, except that such term does not include a low-power 
        or translator television broadcast station.
            ``(7) Satellite carrier, etc.--The terms `satellite 
        carrier', `secondary transmission', and `unserved household' 
        have the meanings given such terms in section 119(d) of title 
        17, United States Code.''.

SEC. 103. CARRIAGE OF DISTANT NETWORK SIGNALS BY SATELLITE CARRIERS.

    (a) Purpose.--The purpose of this section is to promote competition 
in the provision of multichannel video services by enabling direct 
broadcast satellite providers to offer distant network signals to 
consumers in areas receiving inadequate over-the-air reception of local 
television signals.
    (b) Continued Retransmission of Distant Network Signals.--
Notwithstanding any other provision of law, satellite carriers 
retransmitting the signal of a distant network station to households 
located within an area served by a local affiliate of the same network 
and receiving service as of the date of enactment of this Act, shall 
not be required to discontinue carriage of the distant network station 
to such households prior to February 28, 1999. Nothing in this 
subsection is intended to modify the duration of the license granted in 
section 119 of title 17, United States Code.
    (c) Rulemaking Required.--The Federal Communications Commission 
shall complete a single rulemaking proceeding in which it shall rule on 
any petitions or similar matters regarding the definition of unserved 
areas or households. Any definition adopted by the Commission must 
consist of an objective measure of a satisfactory signal obtainable by 
use of generally-available off-air reception devices. The Commission 
shall complete this rulemaking proceeding within such time as to enable 
any rule change to become effective no later than February 28, 1999.
    (d) No Remission on Penalty.--No action taken by the Commission 
pursuant to subsection (c) shall relieve any provider of direct 
broadcast satellite service from any liability for any prior violation 
of section 119(a)(5)(D) of title 17, United States Code, or from the 
imposition of any penalty therefor.

          TITLE II--AMENDMENTS TO TITLE 17, UNITED STATES CODE

SEC. 201. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSION BY 
              SATELLITE CARRIERS WITHIN LOCAL MARKETS.

    (a) In General.--Chapter 1 of title 17, United States Code, is 
amended by adding after section 121 the following new section:
``Sec. 122. Limitations on exclusive rights; secondary transmission by 
              satellite carriers within local markets
    ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--A secondary transmission into the local market of 
a television broadcast station of a designated transmission made by 
that station and embodying the performance or display of a work shall 
be subject to statutory licensing under this section if--
            ``(1) the secondary transmission is made by a satellite 
        carrier to the public; and
            ``(2) the satellite carrier makes a direct or indirect 
        charge for the secondary transmission to--
                    ``(A) each subscriber receiving the secondary 
                transmission; or
                    ``(B) a distributor that has contracted with the 
                satellite carrier for direct or indirect delivery of 
                the secondary transmission to the public.
    ``(b) Reporting Requirements.--
            ``(1) Initial lists.--A satellite carrier that makes 
        secondary transmissions of a designated transmission made by a 
        network station under subsection (a) shall, within 90 days 
        after commencing such secondary transmissions, submit to that 
        station a list identifying (by name and street address, 
        including county and zip code) all subscribers to which the 
        satellite carrier currently makes secondary transmissions of a 
        distant signal of the network with which such network station 
        is affiliated.
            ``(2) Subsequent lists.--After the list is submitted under 
        paragraph (1), the satellite carrier shall, on the 15th of each 
        month, submit to the station a list identifying (by name and 
        street address, including county and zip code) any subscribers 
        who have been added or dropped as subscribers described in 
        paragraph (1).
            ``(3) Use of subscriber information.--Subscriber 
        information submitted by a satellite carrier under this 
        subsection may be used only for the purposes of monitoring 
        compliance by the satellite carrier with this section.
            ``(4) Requirements of stations.--The submission 
        requirements of this subsection shall apply to a satellite 
        carrier only if the station to whom the submissions are to be 
        made places on file with the Register of Copyrights a document 
        identifying the name and address of the person to whom such 
        submissions are to be made. The Register shall maintain for 
        public inspection a file of all such documents.
    ``(c) No Royalty Fee Required.--A satellite carrier whose secondary 
transmissions are subject to statutory licensing under subsection (a) 
shall have no obligation to pay royalties under this title for such 
secondary transmissions.
    ``(d) Noncompliance With Reporting Requirements.--Notwithstanding 
subsection (a), the willful or repeated secondary transmission to the 
public by a satellite carrier of a television broadcast station and 
embodying a performance or display of a work is actionable as an act of 
infringement under section 501, and is fully subject to the remedies 
provided under sections 502 through 506 and 509, if the satellite 
carrier has not complied with the reporting requirements of subsection 
(b).
    ``(e) Willful Alterations.--Notwithstanding subsection (a), the 
secondary transmission to the public by a satellite carrier into the 
local market of a television broadcast station of a designated 
transmission made by that television broadcast station and embodying a 
performance or display of a work is actionable as an act of 
infringement under section 501, and is fully subject to the remedies 
provided by sections 502 through 506 and sections 509 and 510, if the 
content of the particular program in which the performance or display 
is embodied, or any commercial advertising or station announcement 
transmitted by the designated transmitter during, or immediately before 
or after, the transmission of such program, is in any way willfully 
altered by the satellite carrier through changes, deletions, or 
additions, or is combined with programming from any other broadcast 
signal.
    ``(f) Geographic Limitations on Secondary Transmissions.--The 
statutory license created by this section shall apply to secondary 
transmissions to locations in the United States, and any commonwealth, 
territory, or possession of the United States.
    ``(g) Exclusivity With Respect to Secondary Transmissions of 
Broadcast Stations by Satellite to Members of the Public.--No provision 
of section 111 or any other law (other than this section and section 
119) shall be construed to contain any authorization, exemption, or 
license through which secondary transmissions by satellite carriers of 
programming contained in a designated transmission made by a television 
broadcast station may be made without obtaining the consent of the 
copyright owner.
    ``(h) Definitions.--As used in this section:
            ``(1) Designated market area.--The term `designated market 
        area' means a designated market area, as determined by the 
        Nielsen Media Research and published in the DMA Market and 
        Demographic Report.
            ``(2) Distributor.--The term `distributor' means an entity 
        which contracts to distribute secondary transmissions from a 
        satellite carrier and, either as a single channel or in a 
        package with other programming, provides the secondary 
        transmission either directly to individual subscribers or 
        indirectly through other program distribution entities.
            ``(3) Local market.--
                    ``(A) In the case of both commercial and 
                noncommercial television broadcast stations, the term 
                `local market' means the designated market area in 
                which a station is located.
                    ``(B) In the case of a commercial television 
                broadcast station, all commercial television broadcast 
                stations licensed to a community within the same 
                designated market area are within the same local 
                market.
                    ``(C) In the case of a noncommercial educational 
                television broadcast station, the market includes any 
                station that is licensed to a community within the same 
                designated market area as the noncommercial educational 
                television broadcast station.
            ``(4) Satellite carrier.--The term `satellite carrier' has 
        the meaning given that term in section 119(d) of this title.
            ``(5) Secondary transmission.--The term `secondary 
        transmission' has the meaning given that term in section 111(f) 
        of this title.
            ``(6) Subscriber.--The term `subscriber' means an entity 
        that receives a secondary transmission service by means of a 
        secondary transmission from a satellite and pays a fee for the 
        service, directly or indirectly, to the satellite carrier or to 
        a distributor.
            ``(7) Television broadcast station.--The term `television 
        broadcast station' means an over-the-air commercial or 
        noncommercial television broadcast station licensed by the 
        Federal Communications Commission under subpart E of part 73 of 
        title 47, Code of Federal Regulations, as such regulations are 
        in effect on September 25, 1998, and as they may be amended 
        thereafter, except that such term does not include a low-power 
        or translator television broadcast station.''.
    (b) Clerical Amendment.--The table of sections for chapter 1 of 
title 17, United States Code, is amended by adding after the item 
relating to section 121 the following:

``122. Limitations on exclusive rights; secondary transmissions by 
                            satellite carriers within local markets.''.

SEC. 202. UNSERVED HOUSEHOLDS.

    Section 119(d)(10) of title 17, United States Code, is amended--
            (1) by striking ``, and'' at the end of subparagraph (A);
            (2) by striking ``household that--
                    ``(A) cannot'' and inserting ``household that 
                cannot'';
            (3) by running in all that follows in subparagraph (A) 
        through ``network'', and inserting a period after ``network''; 
        and
            (4) by striking subparagraph (B).

SEC. 203. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119.

    Section 4(a) of the Satellite Home Viewer Act of 1994 (17 U.S.C. 
119 note; Public Law 103-369; 108 Stat. 3481) is amended by striking 
``December 31, 1999'' and inserting ``January 1, 2002''.

SEC. 204. TRANSITION.

    Section 119(a)(5) of title 17, United States Code, is amended by 
adding at the end the following:
                    ``(E) Transition.--Notwithstanding subparagraphs 
                (A) and (B), a satellite carrier shall not be required 
                to terminate service of a network station to a 
                subscriber until February 28, 1999.''.

SEC. 205. APPLICATION OF FEDERAL COMMUNICATIONS COMMISSION REGULATIONS.

    Section 119(a) of title 17, United States Code, is amended--
            (1) in paragraph (1), by inserting ``is permissible under 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission,'' after ``satellite carrier to the 
        public for private home viewing,''; and
            (2) in paragraph (2), by inserting ``is permissible under 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission,'' after ``satellite carrier to the 
        public for private home viewing,''.
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