[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1554 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                          May 20, 1999.
      Resolved, That the bill from the House of Representatives (H.R. 
1554) entitled ``An Act to amend the provisions of title 17, United 
States Code, and the Communications Act of 1934, relating to copyright 
licensing and carriage of broadcast signals by satellite.'', do pass 
with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

            TITLE I--SATELLITE HOME VIEWERS IMPROVEMENTS ACT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Satellite Home Viewers 
Improvements Act''.

SEC. 102. LIMITATIONS ON EXCLUSIVE RIGHTS; SECONDARY TRANSMISSIONS 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 transmissions by 
              satellite carriers within local markets
    ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--A secondary transmission of a primary transmission 
of a television broadcast station into the station's local market shall 
be subject to statutory licensing under this section if--
            ``(1) the secondary transmission is made by a satellite 
        carrier to the public;
            ``(2) the secondary transmission is permissible under the 
        rules, regulations, or authorizations of the Federal 
        Communications Commission; and
            ``(3) 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 primary transmission made by a 
        network station under subsection (a) shall, within 90 days 
        after commencing such secondary transmissions, submit to the 
        network that owns or is affiliated with the network 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 that primary 
        transmission.
            ``(2) Subsequent lists.--After the list is submitted under 
        paragraph (1), the satellite carrier shall, on the 15th of each 
        month, submit to the network a list identifying (by name and 
        street address, including county and zip code) any subscribers 
        who have been added or dropped as subscribers since the last 
        submission under this subsection.
            ``(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 network 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 royalty obligation 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 into the local market of a television 
broadcast station of a primary 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 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 primary 
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 primary 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) Violation of Territorial Restrictions on Statutory License 
for Television Broadcast Stations.--
            ``(1) Individual violations.--The willful or repeated 
        secondary transmission to the public by a satellite carrier of 
        a primary transmission made by a television broadcast station 
        and embodying a performance or display of a work to a 
        subscriber who does not reside in that station's local market, 
        and is not subject to statutory licensing under section 119, is 
        actionable as an act of infringement under section 501 and is 
        fully subject to the remedies provided by sections 502 through 
        506 and 509, except that--
                    ``(A) no damages shall be awarded for such act of 
                infringement if the satellite carrier took corrective 
                action by promptly withdrawing service from the 
                ineligible subscriber; and
                    ``(B) any statutory damages shall not exceed $5 for 
                such subscriber for each month during which the 
                violation occurred.
            ``(2) Pattern of violations.--If a satellite carrier 
        engages in a willful or repeated pattern or practice of 
        secondarily transmitting to the public a primary transmission 
        made by a television broadcast station and embodying a 
        performance or display of a work to subscribers who do not 
        reside in that station's local market, and are not subject to 
        statutory licensing under section 119, then in addition to the 
        remedies under paragraph (1)--
                    ``(A) if the pattern or practice has been carried 
                out on a substantially nationwide basis, the court 
                shall order a permanent injunction barring the 
                secondary transmission by the satellite carrier of the 
                primary transmissions of that television broadcast 
                station (and if such television broadcast station is a 
                network station, all other television broadcast 
                stations affiliated with such network), and the court 
                may order statutory damages not exceeding $250,000 for 
                each 6-month period during which the pattern or 
                practice was carried out; and
                    ``(B) if the pattern or practice has been carried 
                out on a local or regional basis with respect to more 
                than one television broadcast station (and if such 
                television broadcast station is a network station, all 
                other television broadcast stations affiliated with 
                such network), the court shall order a permanent 
                injunction barring the secondary transmission in that 
                locality or region by the satellite carrier of the 
                primary transmissions of any television broadcast 
                station, and the court may order statutory damages not 
                exceeding $250,000 for each 6-month period during which 
                the pattern or practice was carried out.
    ``(g) Burden of Proof.--In any action brought under subsection (d), 
(e), or (f), the satellite carrier shall have the burden of proving 
that its secondary transmission of a primary transmission by a 
television broadcast station is made only to subscribers located within 
that station's local market.
    ``(h) 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.
    ``(i) 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 primary transmission made by a television 
broadcast station may be made without obtaining the consent of the 
copyright owner.
    ``(j) Definitions.--In this section--
            ``(1) 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.
            ``(2) The term `local market' for a television broadcast 
        station has the meaning given that term under rules, 
        regulations, and authorizations of the Federal Communications 
        Commission relating to carriage of television broadcast signals 
        by satellite carriers.
            ``(3) The terms `network station', `satellite carrier' and 
        `secondary transmission' have the meaning given such terms 
        under section 119(d).
            ``(4) 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.
            ``(5) 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.''.
    (b) Technical and Conforming Amendments.--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 market.''.

SEC. 103. EXTENSION OF EFFECT OF AMENDMENTS TO SECTION 119 OF TITLE 17, 
              UNITED STATES CODE.

    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 ``December 31, 2004''.

SEC. 104. COMPUTATION OF ROYALTY FEES FOR SATELLITE CARRIERS.

    Section 119(c) of title 17, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) Reduction.--
                    ``(A) Superstation.--The rate of the royalty fee in 
                effect on January 1, 1998 payable in each case under 
                subsection (b)(1)(B)(i) shall be reduced by 30 percent.
                    ``(B) Network.--The rate of the royalty fee in 
                effect on January 1, 1998 payable under subsection 
                (b)(1)(B)(ii) shall be reduced by 45 percent.
            ``(5) Public broadcasting service as agent.--For purposes 
        of section 802, with respect to royalty fees paid by satellite 
        carriers for retransmitting the Public Broadcasting Service 
        satellite feed, the Public Broadcasting Service shall be the 
        agent for all public television copyright claimants and all 
        Public Broadcasting Service member stations.''.

SEC. 105. DEFINITIONS.

    Section 119(d) of title 17, United States Code, is amended by 
striking paragraph (10) and inserting the following:
            ``(10) Unserved household.--The term `unserved household', 
        with respect to a particular television network, means a 
        household that cannot receive, through the use of a 
        conventional outdoor rooftop receiving antenna, an over-the-air 
        signal of grade B intensity (as defined by the Federal 
        Communications Commission) of a primary network station 
        affiliated with that network or is not otherwise eligible to 
        receive directly from a satellite carrier a signal of that 
        television network (other than a signal provided under section 
        122) in accordance with section 338 of the Communications Act 
        of 1934.''.

SEC. 106. PUBLIC BROADCASTING SERVICE SATELLITE FEED.

    (a) Secondary Transmissions.--Section 119(a)(1) of title 17, United 
States Code, is amended--
            (1) by striking the paragraph heading and inserting ``(1) 
        Superstations and pbs satellite feed.--'';
            (2) by inserting ``or by the Public Broadcasting Service 
        satellite feed'' after ``superstation''; and
            (3) by adding at the end the following: ``In the case of 
        the Public Broadcasting Service satellite feed, the compulsory 
        license shall be effective until January 1, 2002.''.
    (b) Definitions.--Section 119(d) of title 17, United States Code, 
is amended--
            (1) by amending paragraph (9) to read as follows:
            ``(9) Superstation.--The term `superstation'--
                    ``(A) means a television broadcast station, other 
                than a network station, licensed by the Federal 
                Communications Commission that is secondarily 
                transmitted by a satellite carrier; and
                    ``(B) includes the Public Broadcasting Service 
                satellite feed.''; and
            (2) by adding at the end the following:
            ``(12) Public broadcasting service satellite feed.--The 
        term `Public Broadcasting Service satellite feed' means the 
        national satellite feed distributed by the Public Broadcasting 
        Service consisting of educational and informational programming 
        intended for private home viewing, to which the Public 
        Broadcasting Service holds national terrestrial broadcast 
        rights.''.

SEC. 107. 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,'';
            (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,''; and
            (3) by adding at the end the following:
            ``(11) Statutory license contingent on compliance with fcc 
        rules and remedial steps.--The willful or repeated secondary 
        transmission to the public by a satellite carrier of a primary 
        transmission made by a broadcast station licensed by the 
        Federal Communications Commission is actionable as an act of 
        infringement under section 501, and is fully subject to the 
        remedies provided by sections 502 through 506 and 509, if, at 
        the time of such transmission, the satellite carrier is not in 
        compliance with the rules, regulations, and authorizations of 
        the Federal Communications Commission concerning the carriage 
        of television broadcast station signals.''.

SEC. 108. TELEVISION BROADCAST STATION STANDING.

    Section 501 of title 17, United States Code, is amended by adding 
at the end the following:
    ``(f) With respect to any secondary transmission that is made by a 
satellite carrier of a primary transmission embodying the performance 
or display of a work and is actionable as an act of infringement under 
section 122, a television broadcast station holding a copyright or 
other license to transmit or perform the same version of that work 
shall, for purposes of subsection (b) of this section, be treated as a 
legal or beneficial owner if such secondary transmission occurs within 
the local market of that station.''.

SEC. 109. MORATORIUM ON COPYRIGHT LIABILITY.

    Until December 31, 1999, no subscriber, as defined under section 
119(d)(8) of title 17, United States Code, located within the predicted 
Grade B contour of a local network television broadcast station shall 
have satellite service of a distant network signal affiliated with the 
same network terminated, if that subscriber received satellite service 
of such network signal before July 11, 1998, as a result of section 119 
of title 17, United States Code.

SEC. 110. EFFECTIVE DATE.

    This title and the amendments made by this title shall take effect 
on January 1, 1999, except the amendments made by section 104 shall 
take effect on July 1, 1999.

               TITLE II--SATELLITE TELEVISION ACT OF 1999

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Satellite Television Act of 
1999''.

SEC. 202. FINDINGS.

    The Congress makes the following findings:
            (1) In the Cable Television Consumer Protection and 
        Competition Act of 1992, Congress stated its policy of 
        promoting competition in cable services and making available to 
        the public a diversity of views and information through cable 
        television and other video media.
            (2) In the Telecommunications Act of 1996, Congress stated 
        its policy of securing lower prices and higher quality service 
        for American telecommunications consumers and encouraging the 
        rapid deployment of new telecommunications technologies.
            (3) In most places throughout America, cable television 
        system operators still do not face effective competition from 
        other providers of multichannel video service.
            (4) Absent effective competition, the market power 
        exercised by cable television operators enables them to raise 
        the price of cable service to consumers, and to control the 
        price and availability of cable programming services to other 
        multichannel video service providers. Current Federal 
        Communications Commission rules have been inadequate in 
        constraining cable price increases.
            (5) Direct-to-home satellite service has over 8 million 
        subscribers and constitutes the most significant competitive 
        alternative to cable television service.
            (6) Direct-to-home satellite service currently suffers from 
        a number of statutory, regulatory, and technical barriers that 
        keep it from being an effective competitor to cable television 
        in the provision of multichannel video services.
            (7) The most prominent of these barriers is the inability 
        to provide subscribers with local television broadcast signals 
        by satellite.
            (8) Permitting providers of direct-to-home satellite 
        service to retransmit local television signals to their 
        subscribers would greatly enhance the ability of direct-to-home 
        satellite service providers to compete more effectively in the 
        provision of multichannel video services.
            (9) Due to capacity limitations and in the interest of 
        providing service in as many markets as possible, providers of 
        direct-to-home satellite service, unlike cable television 
        systems, cannot at this time carry all local television 
        broadcast signals in all the local television markets they seek 
        to serve.
            (10) It would be in the public interest for providers of 
        direct-to-home satellite service to fully comply with the 
        mandatory signal carriage rules at the earliest possible date. 
        In the interim, requiring full compliance with the mandatory 
        signal carriage rules would substantially limit the ability of 
        direct-to-home satellite service providers to compete in the 
        provision of multichannel video services and would not serve 
        the public interest.
            (11) Maintaining the viability of free, local, over-the-air 
        television service is a matter of preeminent public interest.
            (12) All subscribers to multichannel video services should 
        be able to receive the signal of at least one station 
        affiliated with each of the major broadcast television 
        networks.
            (13) Millions of subscribers to direct-to-home satellite 
        service currently receive the signals of network-affiliated 
        stations not located in these subscribers' local television 
        markets. Where conventional rooftop antennas cannot provide 
        satisfactory reception of local stations, distant network 
        signals may be these subscribers' only source of network 
        television service.
            (14) The widespread carriage of distant network stations in 
        local network affiliates' markets could harm the local 
        stations' ability to serve their local community.
            (15) Abrupt termination of satellite carriers' provision of 
        distant network signals could have a negative impact on the 
        ability of direct-to-home satellite service to compete 
        effectively in the provision of multichannel video services.
            (16) The public interest would be served by permitting 
        direct-to-home satellite service providers to continue existing 
        carriage of a distant network affiliate station's signal 
        where--
                    (A) there is no local network affiliate;
                    (B) the local network affiliate cannot be 
                adequately received off-air; or
                    (C) continued carriage would not harm the local 
                network station.

SEC. 203. PURPOSE.

    The purpose of this title is to promote competition in the 
provision of multichannel video services while protecting the 
availability of free, local, over-the-air television, particularly for 
the 22 percent of American television households that do not subscribe 
to any multichannel video programming service.

SEC. 204. MUST-CARRY FOR SATELLITE CARRIERS RETRANSMITTING TELEVISION 
              BROADCAST SIGNALS.

    Part I of title III of the Communications Act of 1934 (47 U.S.C. 
301 et seq.) is amended by adding at the end thereof the following:

``SEC. 338. CARRIAGE OF LOCAL TELEVISION STATIONS BY SATELLITE 
              CARRIERS.

    ``(a) Application of Mandatory Carriage to Satellite Carriers.--The 
mandatory carriage provisions of sections 614 and 615 of this Act will 
apply in a local market no later than January 1, 2002, to satellite 
carriers retransmitting any television broadcast station in that local 
market pursuant to the compulsory license provided by section 122 of 
title 17, United States Code.
    ``(b) Good Signal Required.--
            ``(1) Costs.--A television broadcast station eligible for 
        carriage under subsection (a) may be required to bear the costs 
        associated with delivering a good quality signal to the 
        designated local receive facility of the satellite carrier. The 
        selection of a local receive facility by a satellite carrier 
        shall not be made in a manner that frustrates the purposes of 
        this Act. The Commission shall implement the requirements of 
        this section without imposing any undue economic burden on any 
        party.
            ``(2) Rulemaking required.--The Commission shall adopt 
        rules implementing paragraph (1) within 180 days after the date 
        of enactment of the Satellite Television Act of 1999.
    ``(c) Cable Television System Digital Signal Carriage Not 
Covered.--Nothing in this section applies to the carriage of the 
digital signals of television broadcast stations by cable television 
systems.
    ``(d) Definitions.--In this section:
            ``(1) Television broadcast station.--The term `television 
        broadcast station' means a full power local television 
        broadcast station, but does not include a low-power or 
        translator television broadcast station.
            ``(2) Network station.--The term `network station' means a 
        television broadcast station that is owned or operated by, or 
        affiliated with, a broadcasting network.
            ``(3) 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.
            ``(4) Distant television station.--The term `distant 
        television station' means any television broadcast station that 
        is not licensed and operating on a channel regularly assigned 
        to the local television market in which a subscriber to a 
        direct-to-home satellite service is located.
            ``(5) Local market.--The term `local market' means the 
        designated market area in which a station is located. For a 
        noncommercial educational television broadcast station, the 
        local market includes any station that is licensed to a 
        community within the same designated market area as the 
        noncommercial educational television broadcast station.
            ``(6) Satellite carrier.--The term `satellite carrier' has 
        the meaning given it by section 119(d) of title 17, United 
        States Code.

``SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE 
              CARRIERS.

    ``(a) Provisions Relating to New Subscribers.--
            ``(1) In general.--Except as provided in subsection (d), 
        direct-to-home satellite service providers shall be permitted 
        to provide the signals of 1 affiliate of each television 
        network to any household that initially subscribed to direct-
        to-home satellite service on or after July 10, 1998.
            ``(2) Eligibility determination.--The determination of a 
        new subscriber's eligibility to receive the signals of one or 
        more distant network stations as a component of the service 
        provided pursuant to paragraph (a) shall be made by 
        ascertaining whether the subscriber resides within the 
        predicted Grade B service area of a local network station. The 
        Individual Location Longley-Rice methodology described by the 
        Commission in Docket 98-201 shall be used to make this 
        determination. A direct-to-home satellite service provider may 
        provide the signal of a distant network station to any 
        subscriber determined by this method to be unserved by a local 
        station affiliated with that network.
            ``(3) Rulemaking required.--
                    ``(A) Within 90 days after the date of enactment of 
                the Satellite Television Act of 1999, the Commission 
                shall adopt procedures that shall be used by any 
                direct-to-home satellite service subscriber requesting 
                a waiver to receive one or more distant network 
                signals. The waiver procedures adopted by the 
                Commission shall--
                            ``(i) impose no unnecessary burden on the 
                        subscriber seeking the waiver;
                            ``(ii) allocate responsibilities fairly 
                        between direct-to-home satellite service 
                        providers and local stations;
                            ``(iii) prescribe mandatory time limits 
                        within which direct-to-home satellite service 
                        providers and local stations shall carry out 
                        the obligations imposed upon them; and
                            ``(iv) prescribe that all costs of 
                        conducting any measurement or testing shall be 
                        borne by the direct-to-home satellite service 
                        provider, if the local station's signal meets 
                        the prescribed minimum standards, or by the 
                        local station, if its signal fails to meet the 
                        prescribed minimum standards.
            ``(4) Penalty for violation.--Any direct-to-home satellite 
        service provider that knowingly and willfully provides the 
        signals of 1 or more distant television stations to subscribers 
        in violation of this section shall be liable for forfeiture in 
        the amount of $50,000 per day per violation.
    ``(b) Provisions Relating to Existing Subscribers.--
            ``(1) Moratorium on termination.--Until December 31, 1999, 
        any direct-to-home satellite service may continue to provide 
        the signals of distant television stations to any subscriber 
        located within predicted Grade A and Grade B contours of a 
        local network station who received those distant network 
        signals before July 11, 1998.
            ``(2) Continued carriage.--Direct-to-home satellite service 
        providers may continue to provide the signals of distant 
        television stations to subscribers located between the outside 
        limits of the predicted Grade A contour and the predicted Grade 
        B contour of the corresponding local network stations after 
        December 31, 1999, subject to any limitations adopted by the 
        Commission under paragraph (3).
            ``(3) Rulemaking required.--
                    ``(A) Within 180 days after the date of enactment 
                of the Satellite Television Act of 1999, the Commission 
                shall conclude a single rulemaking, compliant with 
                subchapter II of chapter 5 of title 5, United States 
                Code, to examine the extent to which any existing 
                program exclusivity rules should be imposed on distant 
                network stations provided to subscribers under 
                paragraph (2).
                    ``(B) The Commission shall not impose any program 
                exclusivity rules on direct-to-home satellite service 
                providers pursuant to subparagraph (A) unless it finds 
                that it would be both technically and economically 
                feasible and otherwise in the public interest to do so.
    ``(c) Waivers Not Precluded.--Notwithstanding any other provision 
in this section, nothing shall preclude any network stations from 
authorizing the continued provision of distant network signals in 
unaltered form to any direct-to-home satellite service subscriber 
currently receiving them.
    ``(d) Certain Signals.--Providers of direct-to-home satellite 
service may continue to carry the signals of distant network stations 
without regard to subsections (a) and (b) in any situation in which--
            ``(1) a subscriber is unserved by the local station 
        affiliated with that network;
            ``(2) a waiver is otherwise granted by the local station 
        under subsection (c); or
            ``(3) if the carriage would otherwise be consistent with 
        rules adopted by the Commission in CS Docket 98-201.
    ``(e) Report Required.--Within 180 days after the date of enactment 
of the Satellite Television Act of 1999, the Commission shall report to 
Congress on methods of facilitating the delivery of local signals in 
local markets, especially smaller markets.''.

SEC. 205. RETRANSMISSION CONSENT.

    (a) Amendment of Section 325(b).--Section 325(b) of the 
Communications Act of 1934 (47 U.S.C. 325(b)) is amended by striking 
the subsection designation and paragraphs (1) and (2) and inserting the 
following:
    ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a broadcasting station, or 
any part thereof, except--
            ``(A) with the express authority of the station; or
            ``(B) pursuant to section 614 or section 615, in the case 
        of a station electing, in accordance with this subsection, to 
        assert the right to carriage under that section.
    ``(2) The provisions of this subsection shall not apply to--
            ``(A) retransmission of the signal of a television 
        broadcast station outside the station's local market by a 
        satellite carrier directly to subscribers if--
                    ``(i) that station was a superstation on May 1, 
                1991;
                    ``(ii) as of July 1, 1998, such station's signal 
                was transmitted under the compulsory license of section 
                119 of title 17, United States Code, by satellite 
                carriers directly to at least 250,000 subscribers; and
                    ``(iii) the satellite carrier complies with any 
                program exclusivity rules that may be adopted by the 
                Federal Communications Commission pursuant to section 
                338.
            ``(B) 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 subscriber resides in an unserved 
        household; or
            ``(C) 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 that 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.
    ``(3) Any term used in this subsection that is defined in section 
337(d) of this Act has the meaning given to it by that section.''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on January 1, 1999.

SEC. 206. DESIGNATED MARKET AREAS.

    Nothing in this title, or in the amendments made by this title, 
prevents the Federal Communications Commission from revising the 
listing of designated market areas or reassigning those areas if the 
revision or reassignment is done in the same manner and to the same 
extent as the Commission's cable television mandatory carriage rules 
provide.

SEC. 207. SEVERABILITY.

    If any provision of this title or section 325(b) or 337 of the 
Communications Act of 1934 (47 U.S.C. 325(b) or 337, respectively), or 
the application of that provision to any person or circumstance, is 
held by a court of competent jurisdiction to violate any provision of 
the Constitution of the United States, then the other provisions of 
that section, and the application of that provision to other persons 
and circumstances, shall not be affected.

SEC. 208. DEFINITIONS.

    In this title:
            (1) Terms defined in communications act of 1934.--Any term 
        used in this title that is defined in section 337(d) of the 
        Communications Act of 1934, as added by section 204 of this 
        title, has the meaning given to it by that section.
            (2) 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.

            Attest:

                                                             Secretary.
106th CONGRESS

  1st Session

                               H. R. 1554

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                               AMENDMENT