[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 851 Reported in House (RH)]





                                                  Union Calendar No. 51

106th CONGRESS

  1st Session

                                H. R. 851

                      [Report No. 106-79, Part I]

_______________________________________________________________________

                                 A BILL

To require the Federal Communications Commission to establish improved 
   predictive models for determining the availability of television 
                           broadcast signals.

_______________________________________________________________________

                             April 16, 1999

 Committee on the Judiciary discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed





                                                  Union Calendar No. 51
106th CONGRESS
  1st Session
                                H. R. 851

                      [Report No. 106-79, Part I]

To require the Federal Communications Commission to establish improved 
   predictive models for determining the availability of television 
                           broadcast signals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 25, 1999

   Mr. Tauzin (for himself, Mr. Markey, Mr. Bliley, Mr. Dingell, Mr. 
 Oxley, Mr. Upton, Mr. Gillmor, Mrs. Cubin, Mr. Stearns, Mr. Largent, 
 Mr. Pickering, Mr. Blunt, Mr. Bilbray, Mr. Hill of Montana, Mr. Lewis 
  of California, Mr. Hilleary, Mr. John, Mr. Goss, and Mr. Boehlert) 
 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

                             April 7, 1999

       Reported from the Committee on Commerce with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             April 7, 1999

Referral to the Committee on the Judicary extended for a period ending 
                     not later than April 16, 1999

                             April 16, 1999

Additional sponsors: Mr. Sanders, Mr. Ewing, Mr. Boucher, Mr. Taylor of 
North Carolina, Mr. Gilman, Mr. DeFazio, Mr. Bereuter, Mrs. Wilson, Mr. 
Turner, Mrs. Emerson, Mr. Barrett of Nebraska, Mr. McHugh, Mr. Sawyer, 
    Mrs. Capps, Mr. Sandlin, Mr. McInnis, Mr. Bass, Mr. Peterson of 
 Pennsylvania, Mr. Sununu, Mr. Hutchinson, Mr. Oberstar, Mr. Collins, 
  Mr. Tierney, Mr. LaTourette, Mr. Olver, Mr. Rush, Mr. Ehrlich, Mr. 
Walsh, Mr. Barcia, Mr. Smith of Michigan, Mr. Reyes, Mr. Campbell, Mrs. 
 Kelly, Mr. Lampson, Mr. George Miller of California, Mr. Norwood, Mr. 
 Castle, Mr. Deal of Georgia, Mr. Thompson of Mississippi, Mr. Dickey, 
Mr. Moore, Mr. Petri, Mr. Ney, Mr. Burton of Indiana, Mr. Calvert, Mr. 
 Young of Alaska, Mr. Thompson of California, Mr. Aderholt, Mr. Minge, 
                     Mr. Traficant, and Mr. Hinchey

                             April 16, 1999

 Committee on the Judiciary discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed

_______________________________________________________________________

                                 A BILL


 
To require the Federal Communications Commission to establish improved 
   predictive models for determining the availability of television 
                           broadcast signals.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Save Our Satellites Act of 
1999''.</DELETED>

<DELETED>SEC. 2. FEDERAL COMMUNICATIONS COMMISSION RULEMAKING 
              REQUIRED.</DELETED>

<DELETED>    Title I of the Communications Act of 1934 is amended by 
inserting after section 11 (47 U.S.C. 161) the following new 
section:</DELETED>

<DELETED>``SEC. 12. FEDERAL COMMUNICATIONS COMMISSION RULEMAKING 
              REQUIRED.</DELETED>

<DELETED>    ``(a) Establishment of Improved Predictive Models 
Required.--Within 90 days after the date of enactment of this section, 
the Commission shall establish different predictive models for making 
determinations of the boundaries of areas within the predicted Grade B 
Contour of television broadcast stations for purposes of this Act and 
for purposes of other Federal statutes and regulations. Such models 
shall include a model based on one of the models described in the 
Commission's report and order adopted February 2, 1999 (CS Docket 98-
201).</DELETED>
<DELETED>    ``(b) Treatment as Unserved Household.--Any subscriber who 
on February 24, 1999, is receiving from a satellite carrier for private 
home viewing secondary transmissions of programming contained in a 
primary transmission made by a network station shall, during the period 
beginning February 24, 1999, and until the Commission completes the 
action required by subsection (a), be treated as residing in an 
unserved household for purposes of section 119 of title 17, United 
States Code.</DELETED>
<DELETED>    ``(c) Definitions.--The terms used in this section have 
the meanings provided by section 119(d) of title 17, United States 
Code.''.</DELETED>

SECTION 1. SHORT TITLE.

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

         TITLE I--AMENDMENTS TO THE COMMUNICATIONS ACT OF 1934

SEC. 101. RETRANSMISSION CONSENT.

    Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
            (1) by amending paragraphs (1) and (2) to read as follows:
    ``(b)(1) No cable system or other multichannel video programming 
distributor shall retransmit the signal of a television broadcast 
station, or any part thereof, except--
            ``(A) with the express authority of the originating 
        station;
            ``(B) pursuant to section 614, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section; or
            ``(C) pursuant to section 338, in the case of a station 
        electing, in accordance with this subsection, to assert the 
        right to carriage under such section.
    ``(2) The provisions of this subsection shall not apply--
            ``(A) to retransmission of the signal of a noncommercial 
        television broadcast station;
            ``(B) to retransmission of the signal of a television 
        broadcast station outside the station's local market by a 
        satellite carrier directly to its subscribers, if--
                    ``(i) such station was a superstation on May 1, 
                1991;
                    ``(ii) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                compulsory license of section 119 of title 17, United 
                States Code; and
                    ``(iii) the satellite carrier complies with all 
                network nonduplication, syndicated exclusivity, and 
                sports blackout rules adopted by the Commission 
                pursuant to section 712 of this Act;
            ``(C) until 7 months after the date of enactment of the 
        Satellite Competition and Consumer Protection Act, to 
        retransmission of the signal of a television network station 
        directly to a satellite antenna, if the subscriber receiving 
        the signal is located in an area outside the local market of 
        such station; or
            ``(D) to retransmission by a cable operator or other 
        multichannel video provider, other than a satellite carrier, 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) as of July 1, 1998, such station was 
                retransmitted by a satellite carrier under the 
                compulsory license of section 119 of title 17, United 
                States Code.'';
            (2) by adding at the end of paragraph (3) the following new 
        subparagraph:
    ``(C) Within 45 days after the date of enactment of the Satellite 
Competition and Consumer Protection Act, 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 limitations contained in 
paragraph (2). The Commission shall complete all actions necessary to 
prescribe such regulations within one year after such date of 
enactment. Such regulations shall--
            ``(i) establish election time periods that correspond with 
        those regulations adopted under subparagraph (B) of this 
        paragraph; and
            ``(ii) prohibit television broadcast stations that provide 
        retransmission consent from engaging in discriminatory 
        practices, understandings, arrangements, and activities, 
        including exclusive contracts for carriage, that prevent a 
        satellite carrier from obtaining retransmission consent from 
        such stations.'';
            (3) in paragraph (4), by adding at the end the following 
        new sentence: ``If an originating television station elects 
        under paragraph (3)(C) to exercise its right to grant 
        retransmission consent under this subsection with respect to a 
        satellite carrier, the provisions of section 338 shall not 
        apply to the carriage of the signal of such station by such 
        satellite carrier.'';
            (4) in paragraph (5), by striking ``614 or 615'' and 
        inserting ``338, 614, or 615''; and
            (5) by adding at the end the following new paragraph:
    ``(7) For purposes of this subsection, the term `television 
broadcast station' means an over-the-air commercial or noncommercial 
television broadcast station licensed by the Commission under subpart E 
of part 73 of title 47, Code of Federal Regulations, except that such 
term does not include a low-power or translator television station.''.

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 337 (47 U.S.C. 337) the following new section:

``SEC. 338. 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(b), by retransmitting the signal or signals of such 
        stations that are identified by Commission regulations for 
        purposes of this section.
            ``(2) Effective date.--No satellite carrier shall be 
        required to carry local television broadcast stations under 
        paragraph (1) until January 1, 2002.
    ``(b) Good Signal Required.--
            ``(1) Costs.--A television broadcast station asserting its 
        right to carriage under subsection (a) shall be required to 
        bear the costs associated with delivering a good quality signal 
        to the designated local receive facility of the satellite 
        carrier or to another facility that is acceptable to at least 
        one-half the stations asserting the right to carriage in the 
        local market.
            ``(2) Regulations.--The regulations issued under subsection 
        (g) shall set forth the obligations necessary to carry out this 
        subsection.
    ``(c) Duplication Not Required.--
            ``(1) Commercial stations.--Notwithstanding subsection (a), 
        a satellite carrier shall not be required to carry upon request 
        the signal of any local commercial television broadcast station 
        that substantially duplicates the signal of another local 
        commercial 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 commercial television broadcast station in a single local 
        market that is affiliated with a particular television network.
            ``(2) Noncommercial stations.--The Commission shall 
        prescribe regulations limiting the carriage requirements under 
        subsection (a) of satellite carriers with respect to the 
        carriage of multiple local noncommercial television broadcast 
        stations. To the extent possible, such regulations shall 
        provide the same degree of carriage by satellite carriers of 
        such multiple stations as is provided by cable systems under 
        section 615.
    ``(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 provide access to such station's 
signals at a nondiscriminatory price 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 or for channel 
positioning rights provided to such stations under this section, except 
that any such station may be required to bear the costs associated with 
delivering a good quality signal to the local receive facility of the 
satellite carrier.
    ``(f) 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 section, 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 section. 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 
        section, as the case may be. A local television broadcast 
        station that is denied carriage in accordance with this section 
        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 section may obtain review of such denial 
        or response by filing a complaint 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 section.
            ``(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 section, 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.
    ``(g) Regulations by Commission.--Within 180 days after the date of 
enactment of this section, the Commission shall, following a rulemaking 
proceeding, issue regulations implementing this section.
    ``(h) Definitions.--As used in this section:
            ``(1) 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.
            ``(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 receive facility.--The term `local receive 
        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.
            ``(4) Television broadcast station.--The term `television 
        broadcast station' has the meaning given such term in section 
        325(b)(7).
            ``(5) Secondary transmission.--The term `secondary 
        transmission' has the meaning given such term in section 119(c) 
        of title 17, United States Code.''.

SEC. 103. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

    Section 712 of the Communications Act of 1934 (47 U.S.C. 612) is 
amended to read as follows:

``SEC. 712. NONDUPLICATION OF PROGRAMMING BROADCAST BY LOCAL STATIONS.

    ``(a) Extension of Network Nonduplication, Syndicated Exclusivity, 
and Sports Blackout to Satellite Retransmission.--Within 45 days after 
the date of enactment of the Satellite Competition and Consumer 
Protection Act, the Commission shall commence a single rulemaking 
proceeding to establish regulations that apply network nonduplication 
protection, syndicated exclusivity protection, and sports blackout 
protection to the retransmission of broadcast signals by satellite 
carriers to subscribers. To the extent possible consistent with 
subsection (b), such regulations shall provide the same degree of 
protection against retransmission of broadcast signals as is provided 
by the network nonduplication (47 C.F.R. 76.92), syndicated exclusivity 
(47 C.F.R. 151), and sports blackout (47 C.F.R. 76.67) rules applicable 
to cable television systems. The Commission shall complete all actions 
necessary to prescribe regulations required by this section so that the 
regulations shall become effective within 1 year after such date of 
enactment.
    ``(b) Establishment of Network Nonduplication Boundaries.--
            ``(1) Establishment of signal standard for network 
        nonduplication required.--The Commission shall establish a 
        signal intensity standard for purposes of determining the 
        network nonduplication rights of local television broadcast 
        stations. Until revised pursuant to subsection (c), such 
        standard shall be the Grade B field strength standard 
        prescribed by the Commission in section 73.683 of the 
        Commission's regulations (47 C.F.R. 73.683). For purposes of 
        this section, the standard established under this paragraph is 
        referred to as the `Network Nonduplication Signal Standard'.
            ``(2) Establishment of improved predictive model 
        required.--Within 180 days after the date of enactment of the 
        Satellite Competition and Consumer Protection Act, the 
        Commission shall take all actions necessary, including any 
        reconsideration, to develop and prescribe by rule a point-to-
        point predictive model for reliably and presumptively 
        determining the ability of individual locations to receive 
        signals in accordance with the Network Nonduplication Signal 
        Standard. In prescribing such model, the Commission shall 
        ensure that such model takes into account terrain, building 
        structures, and other land cover variations. The Commission 
        shall establish procedures for the continued refinement in the 
        application of the model by the use of additional data as it 
        becomes available. For purposes of this section, such model is 
        referred to as the `Network Nonduplication Reception Model', 
        and the area encompassing locations that are predicted to have 
        the ability to receive such a signal of a particular broadcast 
        station is referred to as that station's `Reception Model 
        Area'.
            ``(3) Network nonduplication.--The network nonduplication 
        regulations required under subsection (a) shall allow a 
        television network station to assert nonduplication rights as 
        follows:
                    ``(A) If a satellite carrier is retransmitting that 
                station, or any other television broadcast stations 
                located in the same local market, to subscribers 
                located in that station's local market, the television 
                network station may assert nonduplication rights 
                against the satellite carrier throughout the area 
                within which that station may assert such rights under 
                the rules applicable to cable television systems (47 
C.F.R. 76.92), except as provided in subparagraph (C).
                    ``(B) If a satellite carrier is not retransmitting 
                any television broadcast stations located in the 
                television network station's local market to 
                subscribers located in such market, the television 
                network station may assert nonduplication rights 
                against the satellite carrier in the geographic area 
                that is within such station's Reception Model Area, but 
                such geographic area shall not extend beyond the local 
                market of such station.
                    ``(C) If there are 2 or more television network 
                stations that are each affiliates of a single 
                television network within the same local market, 
                neither such station may assert under subparagraph (A) 
                nonduplication rights against a satellite carrier in an 
                area that is outside the Reception Model Area of that 
                station.
            ``(4) Waivers.--The network nonduplication protection 
        described in paragraph (3) shall not apply to a subscriber who 
        files with the satellite carrier a written waiver with respect 
        to that subscriber obtained from a television network station 
        allowing the subscriber to receive satellite retransmission of 
        another network station affiliated with that same network. The 
        television network station shall accept or reject a 
        subscriber's request for a waiver within 30 days after receipt 
        of the request. The television network station and the 
        satellite carrier shall maintain a file available to the public 
        that contains such waiver requests and the acceptances and 
        rejections thereof.
            ``(5) Objective verification.--If a subscriber submits a 
        petition to the Commission or an entity designated by the 
        Commission by rule--
                    ``(A) that alleges that such subscriber does not 
                receive a signal that meets or exceeds the Network 
                Nonduplication Signal Standard; and
                    ``(B) includes a processing fee in an amount 
                prescribed by regulation to recover the cost of 
                administering the provisions of this paragraph;
        the network nonduplication rights described in paragraph (3) 
        shall not apply to that subscriber unless such station submits 
        to the Commission or such entity and to the subscriber the 
        written findings and conclusions of a test conducted in 
        accordance with the provisions of section 73.686(d) of title 
        47, Code of Federal Regulations, or any successor regulation, 
        demonstrating that the subscriber receives a signal that meets 
        or exceeds the Network Nonduplication Signal Standard. A 
        subscriber is required to file a waiver request under paragraph 
        (4) before filing a petition under this paragraph. A subscriber 
        may not be required to bear any portion of the cost of such 
        test.
            ``(6) Recreational vehicle location.--In the case of a 
        subscriber to a satellite carrier who has installed satellite 
        reception equipment in a recreational vehicle, and who has 
        permitted any television network station seeking to assert 
        network nonduplication rights to verify the motor vehicle 
        registration, license, and proof of ownership of such vehicle, 
        the subscriber shall be considered to be outside the local 
        market and Reception Model Area of such station. For purposes 
        of this paragraph, the term `recreational vehicle' does not 
        include any residential manufactured home, as defined in 
        section 603(6) of the National Manufactured Housing 
        Construction and Safety Standards Act of 1974 (42 U.S.C. 
        5402(6)).
    ``(c) Review and Revision of Standards and Model.--
            ``(1) Ongoing inquiry required.--Not later than 2 years 
        after the date of enactment of the Satellite Competition and 
        Consumer Protection Act, the Commission shall conduct an 
        inquiry of the extent to which the Network Nonduplication 
        Signal Standard, the Network Nonduplication Reception Model, 
        and the Reception Model Areas of television stations are 
        adequate to reliably measure the ability of consumers to 
        receive an acceptable over-the-air television broadcast signal.
            ``(2) Data to be considered.--In conducting the inquiry 
        required by paragraph (1), the Commission shall consider as 
        evidence that consumers are not receiving a signal of the 
        quality described in such paragraph--
                    ``(A) the number of subscribers requesting waivers 
                under subsection (b)(4), and the number of waivers that 
                are denied;
                    ``(B) the number of subscribers submitting 
                petitions under subsection (b)(5), and the number of 
                such petitions that are granted;
                    ``(C) the results of any consumer research study 
                that may be undertaken to carry out the purposes of 
                this section; and
                    ``(D) the extent to which consumers are not legally 
                entitled to install broadcast reception devices assumed 
                in the Commission's standard.
            ``(3) Report and action.--The Commission shall submit to 
        the Congress a report on the inquiry required by this 
        subsection not later than the end of the 2-year period 
        described in paragraph (1). The Commission shall complete any 
        actions necessary to revise the Network Nonduplication Signal 
        Standard, the Network Nonduplication Reception Model, and the 
        Reception Model Areas of television stations in accordance with 
        the findings of such inquiry not later than 6 months after the 
        end of such 2-year period.
            ``(4) Data submission.--The Commission shall prescribe by 
        rule the data required to be submitted by television broadcast 
        stations and by satellite carriers to the Commission or such 
        designated entity to carry out this subsection, and the format 
        for submission of such data.''.

SEC. 104. CONSENT OF MEMBERSHIP TO RETRANSMISSION OF PUBLIC 
              BROADCASTING SERVICE SATELLITE FEED.

    Section 396 of the Communications Act of 1934 (47 U.S.C. 396) is 
amended by adding at the end the following new subsection:
    ``(n) The Public Broadcasting Service shall certify to the Board on 
an annual basis that a majority of its membership supports or does not 
support the secondary transmission of the Public Broadcasting Service 
satellite feed, and provide notice to each satellite carrier carrying 
such feed of such certification.''.

SEC. 105. INQUIRY ON RURAL SERVICE REQUIRED.

    (a) Inquiry Required.--Within 180 days after the enactment of this 
section, the National Telecommunications and Information Administration 
shall complete an inquiry into the availability of local television 
broadcast signals in small and rural markets as part of a service that 
competes with, or supplements, video programming delivered by satellite 
carriers or cable operators. The Administration shall submit to the 
Committee on Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate a report on the 
results of such inquiry.
    (b) Analysis Required.--The inquiry under subsection (a) shall 
include an analysis of--
            (1) the technological capability of dual satellite dish 
        technology to receive effectively over-the-air broadcast 
        transmissions from the local market, the availability of such 
        capability in small and rural markets and the affordability of 
        such capability;
            (2) the technological capability (including interference), 
        availability, and affordability of wireless cable (or 
        terrestrial wireless) delivery of local broadcast stations, 
        including the feasibility and desirability of the expedited 
        licensing of such competitive wireless technologies for rural 
        and small markets; and
            (3) the technological capability, availability, and 
        affordability of a broadcast-only basic tier of cable service.

SEC. 106. DEFINITIONS.

    Section 3 of the Communications Act of 1934 (47 U.S.C. 153) is 
amended--
            (1) by redesignating--
                    (A) paragraphs (49) through (52) as paragraphs (52) 
                through (55), respectively;
                    (B) paragraphs (39) through (48) as paragraphs (41) 
                through (50), respectively; and
                    (C) paragraphs (27) through (38) as paragraph (28) 
                through (39), respectively;
            (2) by inserting after paragraph (26) the following new 
        paragraph:
            ``(27) Local market.--
                    ``(A) In general.--The term `local market', in the 
                case of both commercial and noncommercial television 
                broadcast stations, means the designated market area in 
                which a station is located, and--
                            ``(i) 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; and
                            ``(ii) 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.
                    ``(B) County of license.--In addition to the area 
                described in subparagraph (A), a station's local market 
                includes the county in which the station's community of 
                license is located.
                    ``(C) Designated market area.--For purposes of 
                subparagraph (A), 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.'';
            (3) by inserting after paragraph (39) (as redesignated by 
        paragraph (1) of this section) the following new paragraph:
            ``(40) Satellite carrier.--The term `satellite carrier' 
        means an entity that uses the facilities of a satellite or 
        satellite service licensed by the Commission, and operates in 
        the Fixed-Satellite Service under part 25 of title 47 of the 
        Code of Federal Regulations or the Direct Broadcast Satellite 
        Service under part 100 of title 47 of the Code of Federal 
        Regulations, to establish and operate a channel of 
        communications for point-to-multipoint distribution of 
        television station signals, and that owns or leases a capacity 
        or service on a satellite in order to provide such point-to-
        multipoint distribution, except to the extent that such entity 
        provides such distribution pursuant to tariff under this 
        Act.''; and
            (3) by inserting after paragraph (50) (as redesignated by 
        paragraph (1) of this section) the following new paragraph:
            ``(51) Television network; television network station.--
                    ``(A) Television network.--The term `television 
                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.
                    ``(B) Television network station.--The term 
                `television network station' means a television 
                broadcast station that is owned or operated by, or 
                affiliated with, a television network.''.

SEC. 107. COMPLETION OF BIENNIAL REGULATORY REVIEW.

    Within 180 days after the date of enactment of this Act, the 
Commission shall complete the biennial review required by section 
202(h) of the Telecommunications Act of 1996.

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

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

    (a) In General.--Section 119 of title 17, United States Code, is 
amended to read as follows:
``Sec. 119. Limitations on exclusive rights; Secondary transmissions by 
              satellite carriers
    ``(a) Secondary Transmissions of Television Broadcast Stations by 
Satellite Carriers.--
            ``(1) Statutory license.--Subject to the provisions of 
        paragraphs (2), (3), (4), and (5) of this subsection and 
        section 114(d), a secondary transmission that is in compliance 
        with the rules, regulations, and authorizations of the Federal 
        Communications Commission of a primary transmission made by a 
        television broadcast station and embodying a performance or 
        display of a work may have a statutory license under this 
        section if the satellite carrier makes a direct or indirect 
        charge to subscribers for the secondary transmission or to a 
        distributor that has contracted with the satellite carrier for 
        direct or indirect delivery of the secondary transmission. For 
        purposes of this section, the Public Broadcasting Service 
        satellite feed shall be considered a primary transmission made 
        by a television broadcast station that is in compliance with 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission, except that subsequent to--
                    ``(A) the date when a majority of subscribers to 
                satellite carriers are able to receive the signal of at 
                least one noncommercial educational television 
                broadcast station from their satellite carrier within 
                such stations' local market, or
                    ``(B) 2 years after the effective date of the 
                Satellite Competition and Consumer Protection Act,
        whichever is earlier, the statutory license created by this 
        section with respect to such satellite feed shall be 
        conditioned on the annual certification of support under 
        section 396(n) of the Communications Act of 1934.
            ``(2) Submission of subscriber lists.--(A) A satellite 
        carrier that makes secondary transmissions of a primary 
        transmission of a television broadcast station under paragraph 
        (1) shall, within 90 days after commencing such secondary 
        transmissions, submit to that station a list identifying all 
        subscribers to which the satellite carrier currently makes 
        secondary transmissions of that primary transmission. Such list 
        shall be organized by State, identifying all subscribers by 
        name (including street address, county, and 9-digit zip code) 
        in that State that receive secondary transmissions of that 
        primary transmission.
            ``(B) After the list is submitted under subparagraph (A), 
        the satellite carrier shall, on the 15th of each month, submit 
        to the television broadcast station a list identifying by State 
        the names (including street address, county, and 9-digit zip 
        code) of any subscribers who have been added or dropped as 
        subscribers since the last submission under this paragraph.
            ``(C) Subscriber information submitted by a satellite 
        carrier under this paragraph may be used only for purposes of 
        monitoring compliance by the satellite carrier with the 
        statutory license created by this section. The submission of 
        subscriber lists is only required for those television 
        broadcast stations that place 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.
            ``(3) Noncompliance with reporting and payment 
        requirements.--Notwithstanding the provisions of paragraph (1), 
        the willful or repeated secondary transmission to the public 
        that is in compliance with the rules, regulations, and 
        authorizations of the Federal Communications Commission by a 
        satellite carrier of a primary transmission made by 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 by 
        sections 502 through 506 and 509, if the satellite carrier has 
        not deposited the statement of account and royalty fees 
        required by subsection (b).
            ``(4) Willful alterations.--Notwithstanding the provisions 
        of paragraph (1), the secondary transmission to the public that 
        is in compliance with the rules, regulations, and 
        authorizations of the Federal Communications Commission by a 
        satellite carrier of a primary transmission made by 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 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 a 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.
            ``(5) Discrimination by satellite carrier.--Notwithstanding 
        the provisions of paragraph (1), the willful or repeated 
        secondary transmission to the public that is in compliance with 
        the rules, regulations, and authorizations of the Federal 
        Communications Commission by a satellite carrier of a primary 
        transmission made by a television broadcast station and 
        embodying the 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 509, 
        if the satellite carrier unlawfully discriminates against a 
        distributor.
            ``(6) Geographic limitation on secondary transmissions.--
        The statutory license created by this section shall apply only 
to secondary transmissions to subscribers located in the United States.
    ``(b) Statutory License for Secondary Transmissions of Television 
Broadcast Stations.--
            ``(1) Deposits with the register of copyrights.--A 
        satellite carrier whose secondary transmissions are subject to 
        statutory licensing under subsection (a) shall, on a semiannual 
        basis, deposit with the Register of Copyrights, in accordance 
        with the requirements that the Register shall prescribe by 
        regulation--
                    ``(A) a statement of account, covering the 
                preceding 6-month period, specifying the names and 
                locations of all television broadcast stations whose 
                signals were retransmitted at any time during that 
                period to subscribers, the total number of subscribers 
                that received such secondary transmissions, and such 
                other data as the Register of Copyrights may from time 
                to time prescribe by regulation, and
                    ``(B) a royalty fee for that 6-month period, 
                computed as follows:
                            ``(i) For each television network station 
                        that is retransmitted to subscribers located 
                        outside the local market of that station, by 
                        multiplying the total number of subscribers 
                        receiving such secondary transmission during 
                        each calendar month by the royalty fee 
                        prescribed in section 258.3(b)(2) of title 37, 
                        Code of Federal Regulations, as in effect on 
                        January 1, 1998.
                            ``(ii) For each superstation that is 
                        retransmitted to subscribers located outside 
                        the local market of that station, by 
                        multiplying the total number of subscribers 
                        receiving such secondary transmission during 
                        each calendar month by the royalty fee 
                        prescribed in section 258.3(b)(1) of title 37, 
                        Code of Federal Regulations, as in effect on 
                        January 1, 1998.
                            ``(iii) By adding together the totals 
                        computed under clauses (i) and (ii).
        For secondary transmissions of a television broadcast station 
        to subscribers who reside within the local market of that 
        station, there shall be no royalty fee.
            ``(2) Investment of fees.--The Register of Copyrights shall 
        receive all fees deposited under this section and, after 
        deducting the reasonable costs incurred by the Copyright Office 
        under this section (other than the costs deducted under 
        paragraph (4)), shall deposit the balance in the Treasury of 
        the United States, in such manner as the Secretary of the 
        Treasury directs. Any funds held by the Secretary of the 
        Treasury shall be invested in interest bearing securities of 
        the United States for later distribution with interest by the 
        Librarian of Congress as provided by this title. The Register 
        may, in the Register's discretion, at any time after four years 
        have elapsed since the close of any calendar year, close out 
        the royalty payments account for that calendar year, and may 
        treat any funds remaining in such account and any subsequent 
        deposits that would otherwise be attributable to that calendar 
        year as attributable to the succeeding calendar year.
            ``(3) Persons to whom fees are distributed.--The royalty 
        fees deposited under paragraph (2) shall, in accordance with 
        the procedures provided by paragraph (4), be distributed to 
        those copyright owners whose works were included in a secondary 
        transmission to the public made by a satellite carrier during 
        the applicable 6-month accounting period and who file a claim 
        with the Librarian of Congress under paragraph (4). For 
        purposes of section 802 of this title, with respect to royalty 
        fees paid by satellite carriers for retransmitting the Public 
        Broadcasting Service satellite feed, the Public Broadcasting 
        Service shall be agent for all public television copyright 
        claimants and all Public Broadcasting Service member stations.
            ``(4) Procedures for distribution.--The royalty fees 
        deposited under paragraph (2) shall be distributed in 
        accordance with the following procedures:
                    ``(A) Filing of claims for fees.--During the month 
                of July in each year, each person claiming to be 
                entitled to statutory license fees for secondary 
                transmissions under this section shall file a claim 
                with the Librarian of Congress, in accordance with 
                requirements that the Librarian shall prescribe by 
                regulation. For purposes of this paragraph, any 
                claimants may agree among themselves as to the 
                proportionate division of statutory license fees among 
                them, may lump their claims together and file them 
                jointly or as a single claim, or may designate a common 
                agent to receive payment on their behalf.
                    ``(B) Determination of controversy; 
                distributions.--After the first day of August of each 
                year, the Librarian of Congress shall determine whether 
                there exists a controversy concerning the distribution 
                of royalty fees. If the Librarian determines that no 
                such controversy exists, the Librarian shall, after 
                deducting reasonable administrative costs under this 
                paragraph, distribute such fees to the copyright owners 
                entitled to receive them, or to their designated 
                agents. If the Librarian finds the existence of a 
                controversy, the Librarian shall, pursuant to chapter 8 
                of this title, convene a copyright arbitration royalty 
                panel to determine the distribution of fees.
                    ``(C) Withholding of fees during controversy.--
                During the pendency of any proceeding under this 
                subsection, the Librarian of Congress shall withhold 
                from distribution an amount sufficient to satisfy all 
                claims with respect to which a controversy exists, but 
                shall have discretion to proceed to distribute any 
                amounts that are not in controversy.
    ``(c) Definitions.--As used in this section--
            ``(1) Distributor.--The term `distributor' means any 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) Local market.--The term `local market' of a 
        television broadcast station has the meaning given that term 
        section 3 of the Communications Act of 1934 (47 U.S.C. 153) as 
        interpreted under the rules, regulations, and authorizations of 
        the Federal Communications Commission relating to carriage of 
        television broadcast signals by satellite carriers.
            ``(3) Primary transmission.--The term `primary 
        transmission' has the meaning given that term in section 111(f) 
        of this title.
            ``(4) Public broadcasting service satellite feed.--The term 
        `Public Broadcasting Service satellite feed' means the national 
        satellite feed distributed by the Public Broadcasting Service 
        for purposes of this section consisting of educational and 
        informational programming, to which the Public Broadcasting 
        Service holds national terrestrial broadcast rights.
            ``(5) Satellite carrier.--The term `satellite carrier' has 
        the meaning given that term in section 3 of the Communications 
        Act of 1934.
            ``(6) Secondary transmission.--The term `secondary 
        transmission' has the meaning given that term in section 111(f) 
        of this title.
            ``(7) 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 a 
        distributor.
            ``(8) Superstation.--The term `superstation' means a 
        television broadcast station, other than a television network 
        station, licensed by the Federal Communications Commission that 
        is secondarily transmitted by a satellite carrier, and includes 
        the Public Broadcasting Service satellite feed.
            ``(9) Television broadcast station.--The term `television 
        broadcast station' has the meaning given that term in section 
        325(b)(7) of the Communications Act of 1934.
            ``(10) Television network station.--The term `television 
        network station' means--
                    ``(A) a television network station (as defined in 
                section 3 of the Communications Act of 1934); or
                    ``(B) a noncommercial educational broadcast station 
                (as defined in section 397 of such Act).
    ``(d) Exclusivity of This Section With Respect to Secondary 
Transmissions of Television Broadcast Stations by Satellite to Members 
of the Public.--No provision of section 111 of this title or any other 
law (other than this section) shall be construed to contain any 
authorization, exemption, or license through which secondary 
transmissions by satellite carriers of programming contained in a 
primary transmission may be made without obtaining the consent of the 
copyright owner.''.
    (b) Conforming Amendments.--
            (1) Table of contents.--The table of sections for chapter 1 
        of title 17, United States Code, is amended by striking the 
        item relating to section 119 and inserting the following:

``119.    Limitation on exclusive rights: Secondary transmissions by 
                            satellite carriers.''.
            (2) Standing.--Subsection (e) of section 501 of title 17, 
        United States Code, is repealed.

SEC. 202. REDUCTION IN ROYALTY FEES.

    The royalty fee prescribed in section 119(b)(1)(B)(i) of title 17, 
United States Code, as amended by section 201(a) of this Act, is 
reduced by 45 percent, effective upon July 1, 1999. The royalty fee 
prescribed in section 119(b)(1)(B)(ii) of such title, as so amended, is 
reduced by 30 percent, effective upon July 1, 1999.