Congressional Record, Volume 150 Issue 125 (Wednesday, October 6, 2004)

[Congressional Record Volume 150, Number 125 (Wednesday, October 6, 2004)]
[House]
[Pages H8210-H8224]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

SATELLITE HOME VIEWER EXTENSION AND REAUTHORIZATION ACT OF 2004

Mr. DeLAY. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 4518) to extend the statutory license for secondary transmissions
under section 119 of title 17, United States Code, as amended.
The Clerk read as follows:

H.R. 4518

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

SECTION 1. SHORT TITLES; TABLE OF CONTENTS.

(a) Short Titles.--This Act may be cited as the ``Satellite
Home Viewer Extension and Reauthorization Act of 2004'' or
the ``W. J. (Billy) Tauzin Satellite Television Act of
2004''.
(b) Table of Contents.--

Sec. 1. Short titles; table of contents.

TITLE I--STATUTORY LICENSE FOR SATELLITE CARRIERS

Sec. 101. Extension of authority.
Sec. 102. Reporting of subscribers; significantly viewed and other
signals; technical amendments.
Sec. 103. Statutory license for satellite carriers outside local
markets.
Sec. 104. Statutory license for satellite retransmission of low power
television stations.
Sec. 105. Definitions.
Sec. 106. Effect on certain proceedings.
Sec. 107. Statutory license for satellite carriers retransmitting
superstation signals to commercial establishments.
Sec. 108. Expedited consideration of voluntary agreements to provide
satellite secondary transmissions to local markets.
Sec. 109. Study.

TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

Sec. 201. Extension of retransmission consent exemption.
Sec. 202. Cable/satellite comparability.
Sec. 203. Carriage of local stations on a single dish.
Sec. 204. Replacement of distant signals with local signals.
Sec. 205. Additional notices to subscribers, networks, and stations
concerning signal carriage.
Sec. 206. Privacy rights of satellite subscribers.
Sec. 207. Reciprocal bargaining obligations.
Sec. 208. Unserved digital customers.
Sec. 209. Reduction of required tests.

TITLE I--STATUTORY LICENSE FOR SATELLITE CARRIERS

SEC. 101. EXTENSION OF AUTHORITY.

(a) In General.--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, 2004'' and
inserting ``December 31, 2009''.
(b) Extension for Certain Subscribers.--Section 119(e) of
title 17, United States Code, is amended by striking
``December 31, 2004'' and inserting ``December 31, 2009''.

SEC. 102. REPORTING OF SUBSCRIBERS; SIGNIFICANTLY VIEWED AND
OTHER SIGNALS; TECHNICAL AMENDMENTS.

Section 119(a) of title 17, United States Code, is
amended--
(1) in paragraph (1)--
(A) in the paragraph heading, by striking ``and pbs
satellite feed'';
(B) in the first sentence, by striking ``(3), (4), and
(6)'' and inserting ``(5), (6), and (8)'';
(C) in the first sentence, by striking ``or by the Public
Broadcasting Service satellite feed''; and
(D) by striking the second sentence;
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``(3), (4), (5), and
(6)'' and inserting ``(5), (6), (7), and (8)''; and
(B) by striking subparagraph (C) and inserting the
following:
``(C) Exceptions.--
``(i) States with single full-power network station.--In a
State in which there is licensed by the Federal
Communications Commission a single full-power station that
was a network station on January 1, 1995, the statutory
license provided for in subparagraph (A) shall apply to the
secondary transmission by a satellite carrier of the primary
transmission of that station to any subscriber in a community
that is located within that State and that is not within the
first 50 television markets as listed in the regulations of
the Commission as in effect on such date (47 CFR 76.51).
``(ii) States with all network stations and superstations
in same local market.--In a State in which all network
stations and superstations licensed by the Federal
Communications Commission within that State as of January 1,
1995, are assigned to the same local market and that local
market does not encompass all counties of that State, the
statutory license provided under subparagraph (A) shall apply
to the secondary transmission by a satellite carrier of the
primary transmissions of such station to all subscribers in
the State who reside in a local market that is within the
first 50 major television markets as listed in the
regulations of the Commission as in effect on such date
(section 76.51 of tile 47 of the Code of Federal
Regulations).
``(iii) Certain additional stations.--If 2 adjacent
counties in a single State are in a local market comprised
principally of counties located in another State, the
statutory license provided for in subparagraph (A) shall
apply to the secondary transmission by a satellite carrier to
subscribers in those 2 counties of the primary transmissions
of any network station located in the capital of the State in
which such 2 counties are located, if--

``(I) the 2 counties are located in a local market that is
in the top 100 markets for the year 2003 according to Nielsen
Media Research; and
``(II) the total number of television households in the 2
counties combined did not exceed 10,000 for the year 2003
according to Nielsen Media Research.

``(D) Submission of subscriber lists to networks.--
``(i) Initial lists.--A satellite carrier that makes
secondary transmissions of a primary transmission made by a
network station pursuant to subparagraph (A) shall, 90 days
after commencing such secondary transmissions, submit to the
network that owns or is affiliated with the network station--

``(I) a list identifying (by name and address, including
street or rural route number, city, State, and zip code) all
subscribers to which the satellite carrier makes secondary
transmissions of that primary transmission to subscribers in
unserved households; and
``(II) a separate list, aggregated by designated market
area (as defined in section 122(j)) (by name and address,
including street or rural route number, city, State, and zip
code), which shall indicate those subscribers being served
pursuant to paragraph (3), relating to significantly viewed
stations.

``(ii) Monthly lists.--After the submission of the initial
lists under clause (i), on the 15th of each month, the
satellite carrier shall submit to the network--

``(I) a list identifying (by name and address, including
street or rural route number, city, State, and zip code) any
persons who have been added or dropped as subscribers under
clause (i)(I) since the last submission under clause (i); and
``(II) a separate list, aggregated by designated market
area (by name and street address, including street or rural
route number, city, State, and zip code), identifying those
subscribers whose service pursuant to paragraph (3), relating
to significantly viewed stations, has been added or dropped.

``(iii) Use of subscriber information.--Subscriber
information submitted by a satellite carrier under this
subparagraph may be used only for purposes of monitoring
compliance by the satellite carrier with this subsection.
``(iv) Applicability.--The submission requirements of this
subparagraph shall apply to a satellite carrier only if the
network to which 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.'';
(3) by striking paragraph (8);
(4) by redesignating paragraphs (9) through (12) as
paragraphs (10) through (13), respectively;
(5) by redesignating paragraphs (3) through (7) as
paragraphs (5) through (9), respectively;
(6) by inserting after paragraph (2) the following:
``(3) Secondary transmissions of significantly viewed
signals.--
``(A) In general.--Notwithstanding the provisions of
paragraph (2)(B), and subject to

[[Page H8211]]

subparagraph (B) of this paragraph, the statutory license
provided for in paragraphs (1) and (2) shall apply to the
secondary transmission of the primary transmission of a
network station or a superstation to a subscriber who resides
outside the station's local market (as defined in section
122(j)) but within a community in which the signal has been
determined by the Federal Communications Commission, to be
significantly viewed in such community, pursuant to the
rules, regulations and authorizations of the Federal
Communications Commission in effect on April 15, 1976,
applicable to determining with respect to a cable system
whether signals are significantly viewed in a community.
``(B) Limitation.--Subparagraph (A) shall apply only to
secondary transmissions of the primary transmissions of
network stations and superstations to subscribers who receive
secondary transmissions from a satellite carrier pursuant to
the statutory license under section 122.
``(C) Waiver.--
``(i) In general.--A subscriber who is denied the secondary
transmission of the primary transmission of a network station
under subparagraph (B) may request a waiver from such denial
by submitting a request, through the subscriber's satellite
carrier, to the network station in the local market
affiliated with the same network where the subscriber is
located. The network station shall accept or reject the
subscriber's request for a waiver within 30 days after
receipt of the request. If the network station fails to
accept or reject the subscriber's request for a waiver within
that 30-day period, that network station shall be deemed to
agree to the waiver request. Unless specifically stated by
the network station, a waiver that was granted before the
date of the enactment of the Satellite Home Viewer Extension
and Reauthorization Act of 2004 under section 339(c)(2) of
the Communications Act of 1934 shall not constitute a waiver
for purposes of this subparagraph.
``(ii) Sunset.--The authority under clause (i) to grant
waivers shall terminate on December 31, 2008, and any such
waiver in effect shall terminate on that date.'';
(7) in paragraph (2)(B)(i), by adding at the end the
following new sentence: ``The limitation in this clause shall
not apply to secondary transmissions under paragraph (3).''.

SEC. 103. STATUTORY LICENSE FOR SATELLITE CARRIERS OUTSIDE
LOCAL MARKETS.

Section 119 of title 17, United States Code, is amended as
follows:
(1) Subsection (a) is amended by inserting after paragraph
(3), as added by section 102 of this Act, the following:
``(4) Statutory license where retransmissions into local
market available.--
``(A) Rules for subscribers under subsection (e).--
``(i) For those receiving distant signals.--In the case of
a subscriber of a satellite carrier who is eligible to
receive the secondary transmission of the primary
transmission of a network station solely by reason of
subsection (e) (in this subparagraph referred to as a
`distant signal'), and who, as of October 1, 2004, is
receiving the distant signal of that network station, the
following shall apply:

``(I) In a case in which the satellite carrier makes
available to the subscriber the secondary transmission of the
primary transmission of a local network station affiliated
with the same television network pursuant to the statutory
license under section 122, the statutory license under
paragraph (2) shall apply only to secondary transmissions by
that satellite carrier to that subscriber of the distant
signal of a station affiliated with the same television
network--

``(aa) if, within 60 days after receiving the notice of the
satellite carrier under section 338(h)(1) of the
Communications Act of 1934, the subscriber elects to retain
the distant signal; but
``(bb) only until such time as the subscriber elects to
receive such local signal.

``(II) Notwithstanding subclause (I), the statutory license
under paragraph (2) shall not apply with respect to any
subscriber who is eligible to receive the distant signal of a
television network station solely by reason of subsection
(e), unless the satellite carrier, within 60 days after the
date of the enactment of the Satellite Home Viewer Extension
and Reauthorization Act of 2004, submits to that television
network a list, aggregated by designated market area (as
defined in section 122(j)(2)(C)), that--

``(aa) identifies that subscriber by name and address
(street or rural route number, city, State, and zip code) and
specifies the distant signals received by the subscriber; and
``(bb) states, to the best of the satellite carrier's
knowledge and belief, after having made diligent and good
faith inquiries, that the subscriber is eligible under
subsection (e) to receive the distant signals.
``(ii) For those not receiving distant signals.--In the
case of any subscriber of a satellite carrier who is eligible
to receive the distant signal of a network station solely by
reason of subsection (e) and who did not receive a distant
signal of a station affiliated with the same network on
October 1, 2004, the statutory license under paragraph (2)
shall not apply to secondary transmissions by that satellite
carrier to that subscriber of the distant signal of a station
affiliated with the same network.
``(B) Rules for other subscribers.--In the case of a
subscriber of a satellite carrier who is eligible to receive
the secondary transmission of the primary transmission of a
network station under the statutory license under paragraph
(2) (in this subparagraph referred to as a `distant signal'),
other than subscribers to whom subparagraph (A) applies, the
following shall apply:
``(i) In a case in which the satellite carrier makes
available to that subscriber, on January 1, 2005, the
secondary transmission of the primary transmission of a local
network station affiliated with the same television network
pursuant to the statutory license under section 122, the
statutory license under paragraph (2) shall apply only to
secondary transmissions by that satellite carrier to that
subscriber of the distant signal of a station affiliated with
the same television network if the subscriber's satellite
carrier, not later than March 1, 2005, submits to that
television network a list, aggregated by designated market
area (as defined in section 122(j)(2)(C)), that identifies
that subscriber by name and address (street or rural route
number, city, State, and zip code) and specifies the distant
signals received by the subscriber.
``(ii) In a case in which the satellite carrier does not
make available to that subscriber, on January 1, 2005, the
secondary transmission of the primary transmission of a local
network station affiliated with the same television network
pursuant to the statutory license under section 122, the
statutory license under paragraph (2) shall apply only to
secondary transmissions by that satellite carrier of the
distant signal of a station affiliated with the same network
to that subscriber if--

``(I) that subscriber seeks to subscribe to such distant
signal before the date on which such carrier commences to
provide pursuant to the statutory license under section 122
the secondary transmissions of the primary transmission of
stations from the local market of such local network station;
and
``(II) the satellite carrier, within 60 days after such
date, submits to each television network a list that
identifies each subscriber in that local market provided such
a signal by name and address (street or rural route number,
city, State, and zip code) and specifies the distant signals
received by the subscriber.

``(C) Future applicability.--The statutory license under
paragraph (2) shall not apply to the secondary transmission
by a satellite carrier of a primary transmission of a network
station to a person who--
``(i) is not a subscriber lawfully receiving such secondary
transmission as of the date of the enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004; and
``(ii) at the time such person seeks to subscribe to
receive such secondary transmission, resides in a local
market where the satellite carrier makes available to that
person the secondary transmission of the primary transmission
of a local network station affiliated with the same
television network pursuant to the statutory license under
section 122.
``(D) Other provisions not affected.--This paragraph shall
not affect the applicability of the statutory license to
secondary transmissions under paragraph (3) or to unserved
households included under paragraph (12).
``(E) Waiver.--A subscriber who is denied the secondary
transmission of a network station under subparagraph (C) may
request a waiver from such denial by submitting a request,
through the subscriber's satellite carrier, to the network
station in the local market affiliated with the same network
where the subscriber is located. The network station shall
accept or reject the subscriber's request for a waiver within
30 days after receipt of the request. If the network station
fails to accept or reject the subscriber's request for a
waiver within that 30-day period, that network station shall
be deemed to agree to the waiver request. Unless specifically
stated by the network station, a waiver that was granted
before the date of the enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004 under section
339(c)(2) of the Communications Act of 1934 shall not
constitute a waiver for purposes of this subparagraph.
``(F) Available defined.--For purposes of this paragraph, a
satellite carrier makes available a secondary transmission of
the primary transmission of local station to a subscriber or
person if the satellite carrier offers that secondary
transmission to other subscribers who reside in the same zip
code as that subscriber or person.''.
(2) Subsection (a) is amended by adding at the end the
following:
``(14) Waivers.--A subscriber who is denied the secondary
transmission of a signal of a network station under
subsection (a)(2)(B) may request a waiver from such denial by
submitting a request, through the subscriber's satellite
carrier, to the network station asserting that the secondary
transmission is prohibited. The network station shall accept
or reject a subscriber's request for a waiver within 30 days
after receipt of the request. If a television network station
fails to accept or reject a subscriber's request for a waiver
within the 30-day period after receipt of the request, that
station shall be deemed to agree to the waiver request and
have filed such written waiver. Unless specifically stated by
the network station, a waiver that was granted before the
date of the enactment of the Satellite Home Viewer Extension
and Reauthorization Act

[[Page H8212]]

of 2004 under section 339(c)(2) of the Communications Act of
1934, and that was in effect on such date of enactment, shall
constitute a waiver for purposes of this subparagraph.''.
(3) Subsection (b)(1) is amended by striking subparagraph
(B) and inserting the following:
``(B) a royalty fee for that 6-month period, computed by
multiplying the total number of subscribers receiving each
secondary transmission of each superstation or network
station during each calendar month by the appropriate rate in
effect under this section.''.
(4) Subsection (b)(1) is further amended by adding at the
end the following flush sentence: ``Notwithstanding the
provisions of subparagraph (B), a satellite carrier whose
secondary transmissions are subject to statutory licensing
under paragraph (1) or (2) of subsection (a) shall have no
royalty obligation for secondary transmissions to a
subscriber under paragraph (3) of such subsection.''.
(5) Subsection (c) is amended--
(A) by amending paragraph (1) to read as follows:
``(1) Applicability and determination of royalty fees.--The
appropriate fee for purposes of determining the royalty fee
under subsection (b)(1)(B) shall be the appropriate fee set
forth in part 258 of title 37, Code of Federal Regulations,
as in effect on July 1, 2004, as modified under this
subsection.'';
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``July 1, 1996,'' and
inserting ``January 2, 2005,'';
(ii) in subparagraph (C)--

(I) in the heading, by inserting ``; public notice'' after
``agreements'';
(II) in the first sentence, by striking ``Voluntary
agreements'' and inserting ``(i) Voluntary agreements''; and
(III) by adding at the end the following:

``(ii)(I) Within 10 days after the publication in the
Federal Register of a notice of the initiation of voluntary
negotiation proceedings, parties who have reached a voluntary
agreement may request that the royalty fees in that agreement
be applied to all satellite carriers, distributors, and
copyright owners without convening an arbitration proceeding
pursuant to paragraph (3).
``(II) Upon receiving a request under subclause (I), the
Librarian of Congress shall immediately provide public notice
of the royalty fees from the voluntary agreement and afford
parties an opportunity to state that they object to those
fees.
``(III) The Librarian shall adopt the royalty fees from the
voluntary agreement for all satellite carriers, distributors,
and copyright owners without convening an arbitration
proceeding unless a party with an intent to participate in
the arbitration proceeding and a significant interest in the
outcome of that proceeding objects under subclause (II).'';
and
(iii) in subparagraph (D), by striking ``December 31,
1999,'' and inserting ``December 31, 2009'';
(C) in paragraph (3)--
(i) in subparagraph (A)--

(I) by striking ``January 1, 1997,'' and inserting ``May 1,
2005,'';
(II) by striking ``who are not parties to a voluntary
agreement filed with the Copyright Office in accordance with
paragraph (2).'' and inserting ``and distributors-- '';

``(i) in the absence of a voluntary agreement filed in
accordance with paragraph (2) that establishes the royalty
fees to be paid by all satellite carriers and distributors;
or
``(ii) if an objection to the fees from a voluntary
agreement submitted for adoption by the Librarian of Congress
to apply to all satellite carriers, distributors, and
copyright owners is received under paragraph (2)(C) from a
party with an intent to participate in the arbitration
proceeding and a significant interest in the outcome of that
proceeding.'';
(ii) in the first sentence of subparagraph (B), by
inserting after ``value of secondary transmissions'' the
following: ``, except that the Librarian of Congress and any
copyright arbitration royalty panel shall adjust those fees
to account for the obligations of the parties under any
applicable voluntary agreements filed with the Copyright
Office pursuant to paragraph (2).'' ; and
(iii) in subparagraph (C)(ii), by striking ``become
effective as provided'' and all that follows through
``later'' and inserting ``be effective as of January 1,
2005''; and
(D) by striking paragraphs (4) and (5)
(6) Subsection (a)(7), as redesignated by section 102(5) of
this Act, is amended--
(A) in subparagraph (A), by striking ``who does not reside
in an unserved household'' and inserting ``who is not
eligible to receive the transmission under this section'';
(B) in subparagraph (B), by striking ``who do not reside in
unserved households'' and inserting ``who are not eligible to
receive the transmission under this section''; and
(C) in subparagraph (D), by striking ``is for private home
viewing to an unserved household'' and inserting ``is to a
subscriber who is eligible to receive the secondary
transmission under this section''.

SEC. 104. STATUTORY LICENSE FOR SATELLITE RETRANSMISSION OF
LOW POWER TELEVISION STATIONS.

(a) In General.--Section 119(a) of title 17, United States
Code (as amended by sections 102 and 103 of this Act), is
further amended by adding at the end the following:
``(15) Carriage of low power television stations.--
``(A) In general.--Notwithstanding paragraph (2)(B), and
subject to subparagraphs (B) through (F) of this paragraph,
the statutory license provided for in paragraphs (1) and (2)
shall apply to the secondary transmission of the primary
transmission of a network station or a superstation that is
licensed as a low power television station, to a subscriber
who resides within the same local market.
``(B) Geographic limitation.--
``(i) Network stations.--With respect to network stations,
secondary transmissions provided for in subparagraph (A)
shall be limited to secondary transmissions to subscribers
who--

``(I) reside in the same local market as the station
originating the signal; and
``(II) reside within 35 miles of the transmitter site of
such station, except that in the case of such a station
located in a standard metropolitan statistical area which has
1 of the 50 largest populations of all standard metropolitan
statistical areas (based on the 1980 decennial census of
population taken by the Secretary of Commerce), the number of
miles shall be 20.

``(ii) Superstations.--With respect to superstations,
secondary transmissions provided for in subparagraph (A)
shall be limited to secondary transmissions to subscribers
who reside in the same local market as the station
originating the signal.
``(C) No applicability to repeaters and translators.--
Secondary transmissions provided for in subparagraph (A)
shall not apply to any low power television station that
retransmits the programs and signals of another television
station for more than 2 hours each day.
``(D) Royalty fees.--Notwithstanding subsection (b)(1)(B),
a satellite carrier whose secondary transmissions of the
primary transmissions of a low power television station are
subject to statutory licensing under this section shall have
no royalty obligation for secondary transmissions to a
subscriber who resides within 35 miles of the transmitter
site of such station, except that in the case of such a
station located in a standard metropolitan statistical area
which has 1 of the 50 largest populations of all standard
metropolitan statistical areas (based on the 1980 decennial
census of population taken by the Secretary of Commerce), the
number of miles shall be 20. Carriage of a superstation that
is a low power television station within the station's local
market, but outside of the 35-mile or 20-mile radius
described in the preceding sentence, shall be subject to
royalty payments under section (b)(1)(B).
``(E) Limitation to subscribers taking local-into-local
service.--Secondary transmissions provided for in
subparagraph (A) may be made only to subscribers who receive
secondary transmissions of primary transmissions from that
satellite carrier pursuant to the statutory license under
section 122, and only in conformity with the requirements
under 340(b) of the Communications Act of 1934, as in effect
on the date of the enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004.''.

SEC. 105. DEFINITIONS.

Section 119(d) of title 17, United States Code, is
amended--
(1) in paragraph (2)(A), by striking ``a television
broadcast station'' and inserting ``a television station
licensed by the Federal Communications Commission'';
(2) by amending paragraph (9) to read as follows:
``(9) Superstation.--The term `superstation' means a
television station, other than a network station, licensed by
the Federal Communications Commission, that is secondarily
transmitted by a satellite carrier.'';
(3) in paragraph (10)--
(A) in subparagraph (B), by striking ``granted under
regulations established under section 339(c)(2) of the
Communications Act of 1934'' and inserting ``that meets the
standards of subsection (a)(14) whether or not the waiver was
granted before the date of the enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004''; and
(B) in subparagraph (D), by striking ``(a)(11)'' and
inserting ``(a)(12)''; and
(4) by striking paragraphs (11) and (12) and inserting the
following:
``(11) Local market.--The term `local market' has the
meaning given such term under section 122(j), except that
with respect to a low power television station, the term
`local market' means the designated market area in which the
station is located.
``(12) Low power television station.--The term `low power
television station' means a low power television as defined
under section 74.701(f) of title 47, Code of Federal
Regulations, as in effect on June 1, 2004. For purposes of
this paragraph, the term ``low power television station''
includes a low power television station that has been
accorded primary status as a Class A television licensee
under section 73.6001(a) of title 47, Code of Federal
Regulations.
``(13) Commercial establishment.--The term `commercial
establishment'--
``(A) means an establishment used for commercial purposes,
such as a bar, restaurant, private office, fitness club, oil
rig, retail store, bank or other financial institution,
supermarket, automobile or boat dealership, or any other
establishment with a common business area; and
``(B) does not include a multi-unit permanent or temporary
dwelling where private home viewing occurs, such as a hotel,
dormitory, hospital, apartment, condominium, or prison.''

SEC. 106. EFFECT ON CERTAIN PROCEEDINGS.

Nothing in this title shall modify any remedy imposed on a
party that is required by

[[Page H8213]]

the judgment of a court in any action that was brought before
May 1, 2004, against that party for a violation of section
119 of title 17, United States Code.

SEC. 107. STATUTORY LICENSE FOR SATELLITE CARRIERS
RETRANSMITTING SUPERSTATION SIGNALS TO
COMMERCIAL ESTABLISHMENTS.

(a) In General.--Section 119 of title 17, United States
Code, is amended--
(1) in subsection (a)(1)--
(A) by inserting ``or for viewing in a commercial
establishment'' after ``for private home viewing'' each place
it appears; and
(B) by striking ``household'' and inserting ``subscriber'';
(2) in subsection (b), by striking ``for private home
viewing'' each place it appears;
(3) in subsection (d)(1)--
(A) by striking ``for private home viewing''; and
(B) by inserting ``in accordance with the provisions of
this section'' before the period;
(4) in subsection (d)(6), by inserting ``pursuant to this
section'' before the period; and
(5) in subsection (d)(8)--
(A) by striking ``who'' and inserting ``or entity that'';
(B) by striking ``for private home viewing''; and
(C) by inserting ``in accordance with the provisions of
this section'' before the period.
(b) Conforming Amendments.-- Subsections (a)(4) and
(d)(1)(A) of section 111 of title 17, United States Code, are
each amended by striking ``for private home viewing''.

SEC. 108. EXPEDITED CONSIDERATION OF VOLUNTARY AGREEMENTS TO
PROVIDE SATELLITE SECONDARY TRANSMISSIONS TO
LOCAL MARKETS.

Section 119 of title 17, United States Code, is amended by
adding at the end the following:
``(f) Expedited Consideration by Justice Department of
Voluntary Agreements to Provide Satellite Secondary
Transmissions to Local Markets.--
``(1) In general.--In a case in which no satellite carrier
makes available, to subscribers located in a local market, as
defined in section 122(j)(2), the secondary transmission into
that market of a primary transmission of one or more
television broadcast stations licensed by the Federal
Communications Commission, and two or more satellite carriers
request a business review letter in accordance with section
50.6 of title 28, Code of Federal Regulations (as in effect
on July 7, 2004), in order to assess the legality under the
antitrust laws of proposed business conduct to make or carry
out an agreement to provide such secondary transmission into
such local market, the appropriate official of the Department
of Justice shall respond to the request no later than 90 days
after the date on which the request is received.
``(2) Definition.--For purposes of this subsection, the
term `antitrust laws'--
``(A) has the meaning given that term in subsection (a) of
the first section of the Clayton Act (15 U.S.C. 12(a)),
except that such term includes section 5 of the Federal Trade
Commission Act (15 U.S.C. 45) to the extent such section 5
applies to unfair methods of competition; and
``(B) includes any State law similar to the laws referred
to in paragraph (1).''.

SEC. 109. STUDY.

No later than June 30, 2008, the Register of Copyrights
shall report to the Committee on the Judiciary of the House
of Representatives and the Committee on the Judiciary of the
Senate the Register's findings and recommendations on the
operation and revision of the statutory licenses under
sections 111, 119, and 122 of title 17, United States Code.
The report shall include, but not be limited to, the
following:
(1) A comparison of the royalties paid by licensees under
such sections, including historical rates of increases in
these royalties, a comparison between the royalties under
each such section and the prices paid in the marketplace for
comparable programming.
(2) An analysis of the differences in the terms and
conditions of the licenses under such sections, an analysis
of whether these differences are required or justified by
historical, technological, or regulatory differences that
affect the satellite and cable industries, and an analysis of
whether the cable or satellite industry is placed in a
competitive disadvantage due to these terms and conditions.
(3) An analysis of whether the licenses under such sections
are still justified by the bases upon which they were
originally created.
(4) An analysis of the correlation, if any, between the
royalties, or lack thereof, under such sections and the fees
charged to cable and satellite subscribers, addressing
whether cable and satellite companies have passed to
subscribers any savings realized as a result of the royalty
structure and amounts under such sections.
(5) An analysis of issues that may arise with respect to
the application of the licenses under such sections to the
secondary transmissions of the primary transmissions of
network stations and superstations that originate as digital
signals, including issues that relate to the application of
the unserved household limitations under section 119 of title
17, United States Code, and to the determination of royalties
of cable systems and satellite carriers.

TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

SEC. 201. EXTENSION OF RETRANSMISSION CONSENT EXEMPTION.

Section 325(b)(2)(C) of the Communications Act of 1934 (47
U.S.C. 325(b)(2)(C)) is amended by striking ``December 31,
2004'' and inserting ``December 31, 2009''.

SEC. 202. CABLE/SATELLITE COMPARABILITY.

(a) Amendment.--Part I of title III of the Communications
Act of 1934 is amended by inserting after section 339 (47
U.S.C. 339) the following new section:

``SEC. 340. SIGNIFICANTLY VIEWED SIGNALS PERMITTED TO BE
CARRIED.

``(a) Significantly Viewed Stations.--In addition to the
broadcast signals that subscribers may receive under section
338 and 339, a satellite carrier is also authorized to
retransmit to a subscriber located in a community the signal
of any station located outside the local market in which such
subscriber is located, to the extent such signal--
``(1) has, before the date of enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004, been
determined by the Federal Communications Commission to be a
signal a cable operator may carry as significantly viewed in
such community, except to the extent that such signal is
prevented from being carried by a cable system in such
community under the Commission's network nonduplication and
syndicated exclusivity rules; or
``(2) is, after such date of enactment, determined by the
Commission to be significantly viewed in such community in
accordance with the same standards and procedures concerning
shares of viewing hours and audience surveys as are
applicable under the rules, regulations, and authorizations
of the Commission to determining with respect to a cable
system whether signals are significantly viewed in a
community.
``(b) Limitations.--
``(1) Analog service limited to subscribers taking local-
into-local service.--With respect to a signal that originates
as an analog signal of a network station, this section shall
apply only to retransmissions to subscribers of a satellite
carrier who receive retransmissions from that satellite
carrier pursuant to section 338.
``(2) Digital service limitations.--With respect to a
signal that originates as a digital signal of a network
station, this section shall apply only if--
``(A) the subscriber receives from the satellite carrier
pursuant to section 338 the retransmission of the digital
signal of a network station in the subscriber's local market
that is affiliated with the same television network; and
``(B) either--
``(i) the retransmission of the local network station
occupies at least the equivalent bandwidth as the digital
signal retransmitted pursuant to this section; or
``(ii) the retransmission of the local network station is
comprised of the entire bandwidth of the digital signal
broadcast by such local network station.
``(3) Limitation not applicable where no network
affiliates.--The limitations in paragraphs (1) and (2) shall
not prohibit a retransmission under this section to a
subscriber located in a local market in which there are no
network stations affiliated with the same television network
as the station whose signal is being retransmitted pursuant
to this section.
``(4) Authority to grant station-specific waivers.--
Paragraphs (1) and (2) shall not prohibit a retransmission of
a network station to a subscriber if and to the extent that
the network station in the local market in which the
subscriber is located, and that is affiliated with the same
television network, has privately negotiated and
affirmatively granted a waiver from the requirements of
paragraph (1) and (2) to such satellite carrier with respect
to retransmission of the significantly viewed station to such
subscriber.
``(c) Publication and Modifications of Lists;
Regulations.--
``(1) In general.--The Commission shall--
``(A) within 60 days after the date of enactment of the
Satellite Home Viewer Extension and Reauthorization Act of
2004--
``(i) publish a list of the stations that are eligible for
retransmission under subsection (a) (1) and the communities
in which such stations are eligible for such retransmission;
and
``(ii) commence a rulemaking proceeding to implement this
section by publication of a notice of proposed rulemaking;
``(B) adopt rules pursuant to such rulemaking within one
year after such date of enactment.
``(2) Public availability of list.--The Commission shall
make readily available to the public in electronic form, on
the Internet website of the Commission or other comparable
facility, a list of the stations that are eligible for
retransmission under subsection (a) and the communities in
which such stations are eligible for such retransmission. The
Commission shall update such list within 10 business days
after the date on which the Commission issues an order making
any modification of such stations and communities.
``(3) Modifications.--In addition to cable operators and
television broadcast station licensees, the Commission shall
permit a satellite carrier to petition for decisions and
orders--
``(A) by which stations may be added to those that are
eligible for retransmission under subsection (a), and by
which communities may be added in which such stations are
eligible for such retransmission; and

[[Page H8214]]

``(B) by which network nonduplication or syndicated
exclusivity regulations are applied to the retransmission in
accordance with subsection (e).
``(d) Effect on Other Obligations and Rights.--
``(1) No effect on carriage obligations.--Carriage of a
signal under this section is not mandatory, and any right of
a station licensee to have the signal of such station carried
under section 338 is not affected by the eligibility of such
station to be carried under this section.
``(2) Retransmission consent rights not affected.--The
eligibility of the signal of a station to be carried under
this section does not affect any right of the licensee of
such station to grant (or withhold) retransmission consent
under section 325(b)(1).
``(e) Network Nonduplication and Syndicated Exclusivity.--
``(1) Not applicable except as provided by commission
regulations.--Signals eligible to be carried under this
section are not subject to the Commission's regulations
concerning network nonduplication or syndicated exclusivity
unless, pursuant to regulations adopted by the Commission,
the Commission determines to permit network nonduplication or
syndicated exclusivity to apply within the appropriate zone
of protection.
``(2) Limitation.--Nothing in this subsection or Commission
regulations shall permit the application of network
nonduplication or syndicated exclusivity regulations to the
retransmission of distant signals of network stations that
are carried by a satellite carrier pursuant to a statutory
license under section 119(a)(2)(A) or (B), with respect to
persons who reside in unserved households, under
119(a)(4)(A), or under section 119(a)(12).
``(f) Enforcement.--
``(1) Orders and damages.--Upon complaint, the Commission
shall issue a cease and desist order to any satellite carrier
found to have violated this section in carrying any
television broadcast station. Such order may, if a
complaining station requests damages--
``(A) provide for the award of damages to a complaining
station that establishes that the violation was committed in
bad faith, in an amount up to $50 per subscriber, per
station, per day of the violation; and
``(B) provide for the award of damages to a prevailing
satellite carrier if the Commission determines that the
complaint was frivolous, in an amount up to $50 per
subscriber alleged to be in violation, per station alleged,
per day of the alleged violation.
``(2) Commission decision.--The Commission shall issue a
final determination resolving a complaint brought under this
subsection not later than 180 days after the submission of a
complaint under this subsection. The Commission may hear
witnesses if it clearly appears, based on written filings by
the parties, that there is a genuine dispute about material
facts. Except as provided in the preceding sentence, the
Commission may issue a final ruling based on written filings
by the parties.
``(3) Remedies in addition.--The remedies under this
subsection are in addition to any remedies available under
title 17, United States Code.
``(4) No effect on copyright proceedings.--Any
determination, action, or failure to act of the Commission
under this subsection shall have no effect on any proceeding
under title 17, United States Code, and shall not be
introduced in evidence in any proceeding under that title. In
no instance shall a Commission enforcement proceeding under
this subsection be required as a predicate to the pursuit of
a remedy available under title 17.
``(g) Notices Concerning Significantly Viewed Stations.--
Each satellite carrier that proposes to commence the
retransmission of a station pursuant to this section in any
local market shall--
``(1) not less than 60 days before commencing such
retransmission, provide a written notice to any television
broadcast station in such local market of such proposal; and
``(2) designate on such carrier's website all significantly
viewed signals carried pursuant to section 340 and the
communities in which the signals are carried.
``(h) Additional Corresponding Changes in Regulations.--
``(1) Community-by-community elections.--The Commission
shall, no later than April 30, 2005, revise section 76.66 of
its regulations (47 CFR 76.66), concerning satellite
broadcast signal carriage, to permit (at the next cycle of
elections under section 325) a television broadcast station
that is located in a local market into which a satellite
carrier retransmits a television broadcast station pursuant
to section 338, to elect, with respect to such satellite
carrier, between retransmission consent pursuant to such
section 325 and mandatory carriage pursuant to section 338
separately for each county within such station's local
market, if--
``(A) the satellite carrier has notified the station,
pursuant to paragraph (3), that it intends to carry another
affiliate of the same network pursuant to this section during
the relevant election period in the station's local market;
or
``(B) on the date notification under paragraph (3) was due,
the satellite carrier was retransmitting into the station's
local market pursuant to this section an affiliate of the
same television network.
``(2) Unified negotiations.--In revising its regulations as
required by paragraph (1), the Commission shall provide that
any such station shall conduct a unified negotiation for the
entire portion of its local market for which retransmission
consent is elected.
``(3) Additional provisions.--The Commission shall, no
later than April 30, 2005, revise its regulations to provide
the following:
``(A) Notifications by satellite carrier.--A satellite
carrier's retransmission of television broadcast stations
pursuant to this section shall be subject to the following
limitations:
``(i) In any local market in which the satellite carrier
provides service pursuant to section 338 on the date of
enactment of the Satellite Home Viewer Extension and
Reauthorization Act of 2004, the carrier may notify a
television broadcast station in that market, at least 60 days
prior to any date on which the station must thereafter make
an election under section 76.66 of the Commission's
regulations (47 CFR 76.66), of--

``(I) each affiliate of the same television network that
the carrier reserves the right to retransmit into that
station's local market pursuant to this section during the
next election cycle under such section of such regulations;
and
``(II) for each such affiliate, the communities into which
the satellite carrier reserves the right to make such
retransmissions.

``(ii) In any local market in which the satellite carrier
commences service pursuant to section 338 after the date of
enactment of the Satellite Home Viewer Extension and
Reauthorization Act of 2004, the carrier may notify a station
in that market, at least 60 days prior to the introduction of
such service in that market, and thereafter at least 60 days
prior to any date on which the station must thereafter make
an election under section 76.66 of the Commission's
regulations (47 CFR 76.66), of each affiliate of the same
television network that the carrier reserves the right to
retransmit into that station's local market during the next
election cycle under such section of such regulations.
``(iii) Beginning with the 2005 election cycle, a satellite
carrier may only retransmit pursuant to this section during
the pertinent election period a signal--

``(I) as to which it has provided the notifications set
forth in clauses (i) and (ii); or
``(II) that it was retransmitting into the local market
under this section as of the date such notifications were
due.

``(B) Harmonization of elections and retransmission consent
agreements.--If a satellite carrier notifies a television
broadcast station that it reserves the right to retransmit an
affiliate of the same television network during the next
election cycle pursuant to this section, the station may
choose between retransmission consent and mandatory carriage
for any portion of the 3-year election cycle that is not
covered by an existing retransmission consent agreement.
``(i) Definitions.--As used in this section:
``(1) Local market; satellite carrier; subscriber;
television broadcast station.--The terms `local market',
`satellite carrier', `subscriber', and `television broadcast
station' have the meanings given such terms in section
338(k).
``(2) Network station; television network.--The terms
`network station' and `television network' have the meanings
given such terms in section 339(d).
``(3) Community.--The term `community' means--
``(A) a county or a cable community, as determined under
the rules, regulations, and authorizations of the Commission
applicable to determining with respect to a cable system
whether signals are significantly viewed; or
``(B) a satellite community, as determined under such
rules, regulations, and authorizations (or revisions thereof)
as the Commission may prescribe in implementing the
requirements of this section.
``(4) Bandwidth.--The terms `equivalent bandwidth' and
`entire bandwidth' shall be defined by the Commission by
regulation.''.

SEC. 203. CARRIAGE OF LOCAL STATIONS ON A SINGLE DISH.

(a) Amendments.--Section 338 of the Communications Act of
1934 (47 U.S.C. 338(d)) is amended--
(1) by redesignating subsections (g) and (h) as subsections
(j) and (k), respectively;
(2) by inserting after subsection (f) the following new
subsection:
``(g) Carriage of Local Stations on a Single Dish.--
``(1) Single dish.--Each satellite carrier that retransmits
the analog signals of local television broadcast stations in
a local market shall retransmit such analog signals in such
market by means of a single reception antenna and associated
equipment.
``(2) Exception.--If the carrier retransmits signals in the
digital television service, the carrier shall retransmit such
digital signals in such market by means of a single reception
antenna and associated equipment, but such antenna and
associated equipment may be separate from the single
reception antenna and associated equipment used for analog
television service signals.
``(3) Effective date.--The requirements of paragraphs (1)
and (2) of this subsection shall apply on and after one year
after the date of enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004.
``(4) Notice of disruptions.--A carrier that is providing
signals of a local television broadcast station in a local
market under this section on the date of enactment of the
Satellite Home Viewer Extension and Reauthorization Act of
2004 shall, not later than

[[Page H8215]]

270 days after such date of enactment, provide to the
licensees for such stations and the carrier's subscribers in
such local market a notice that displays prominently and
conspicuously a clear statement of--
``(A) any reallocation of signals between different
reception antennas and associated equipment that the carrier
intends to make in order to comply with the requirements of
this subsection;
``(B) the need, if any, for subscribers to obtain an
additional reception antenna and associated equipment to
receive such signals; and
``(C) any cessation of carriage or other material change in
the carriage of signals as a consequence of the requirements
of this paragraph.''.
(b) Conforming Amendments: Commission Enforcement of
Section; Low Power Television Stations.--
(1) Section 338(a) of such Act is amended by striking
paragraphs (1) and (2) and inserting the following:
``(1) In general.--Each satellite carrier providing, under
section 122 of title 17, United States Code, 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 the signals of
all television broadcast stations located within that local
market, subject to section 325(b).
``(2) Remedies for failure to carry.--In addition to the
remedies available to television broadcast stations under
section 501(f) of title 17, United States Code, the
Commission may use the Commission's authority under this Act
to assure compliance with the obligations of this subsection,
but in no instance shall a Commission enforcement proceeding
be required as a predicate to the pursuit of a remedy
available under such section 501(f).
``(3) Low power station carriage optional.--No low power
television station whose signals are provided under section
119(a)(14) of title 17, United States Code, shall be entitled
to insist on carriage under this section, regardless of
whether the satellite carrier provides secondary
transmissions of the primary transmissions of other stations
in the same local market pursuant to section 122 of such
title, nor shall any such carriage be considered in
connection with the requirements of subsection (c) of this
section.''.
(2) Section 338(c)(1) of such Act is amended by striking
``subsection (a)'' and inserting ``subsection (a)(1)''.
(3) Section 338(k) of such Act (as redesignated by
subsection (a)(1)) is amended--
(A) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively; and
(B) by inserting after paragraph (3) the following new
paragraph:
``(4) Low power television station.--The term `low power
television station' means a low power television station as
defined under section 74.701(f) of title 47, Code of Federal
Regulations, as in effect on June 1, 2004. For purposes of
this paragraph, the term ``low power television station''
includes a low power television station that has been
accorded primary status as a Class A television licensee
under section 73.6001(a) of title 47, Code of Federal
Regulations.''.

SEC. 204. REPLACEMENT OF DISTANT SIGNALS WITH LOCAL SIGNALS.

Section 339(a) of the Communications Act of 1934 (47 U.S.C.
339(a)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Replacement of distant signals with local signals.--
Notwithstanding any other provision of paragraph (1), the
following rules shall apply after the date of enactment of
the Satellite Home Viewer Extension and Reauthorization Act
of 2004:
``(A) Rules for grandfathered subscribers.--
``(i) For those receiving distant signals.--In the case of
a subscriber of a satellite carrier who is eligible to
receive the signal of a network station solely by reason of
section 119(e) of title 17, United States Code (in this
subparagraph referred to as a `distant signal'), and who, as
of October 1, 2004, is receiving the distant signal of that
network station, the following shall apply:

``(I) In a case in which the satellite carrier makes
available to the subscriber the signal of a local network
station affiliated with the same television network pursuant
to section 338, the carrier may only provide the secondary
transmissions of the distant signal of a station affiliated
with the same network to that subscriber--

``(aa) if, within 60 days after receiving the notice of the
satellite carrier under section 338(h)(1) of this Act, the
subscriber elects to retain the distant signal; but
``(bb) only until such time as the subscriber elects to
receive such local signal.

``(II) Notwithstanding subclause (I), the carrier may not
retransmit the distant signal to any subscriber who is
eligible to receive the signal of a network station solely by
reason of section 119(e) of title 17, United States Code,
unless such carrier, within 60 days after the date of the
enactment of the Satellite Home Viewer Extension and
Reauthorization Act of 2004, submits to that television
network the list and statement required by subparagraph
(E)(i).

``(ii) For those not receiving distant signals.--In the
case of any subscriber of a satellite carrier who is eligible
to receive the distant signal of a network station solely by
reason of section 119(e) of title 17, United States Code, and
who did not receive a distant signal of a station affiliated
with the same network on October 1, 2004, the carrier may not
provide the secondary transmissions of the distant signal of
a station affiliated with the same network to that
subscriber.
``(B) Rules for other subscribers.--In the case of a
subscriber of a satellite carrier who is eligible to receive
the signal of a network station under this section (in this
subparagraph referred to as a `distant signal'), other than
subscribers to whom subparagraph (A) applies, the following
shall apply:
``(i) In a case in which the satellite carrier makes
available to that subscriber, on January 1, 2005, the signal
of a local network station affiliated with the same
television network pursuant to section 338, the carrier may
only provide the secondary transmissions of the distant
signal of a station affiliate with the same network to that
subscriber if the subscriber's satellite carrier, not later
than March 1, 2005, submits to that television network the
list and statement required by subparagraph (E)(i).
``(ii) In a case in which the satellite carrier does not
make available to that subscriber, on January 1, 2005, the
signal of a local network station pursuant to section 338,
the carrier may only provide the secondary transmissions of
the distant signal of a station affiliated with the same
network to that subscriber if--

``(I) that subscriber seeks to subscribe to such distant
signal before the date on which such carrier commences to
carry pursuant to section 338 the signals of stations from
the local market of such local network station; and
``(II) the satellite carrier, within 60 days after such
date, submits to each television network the list and
statement required by subparagraph (E)(ii).

``(C) Future applicability.--A satellite carrier may not
provide a distant signal (within the meaning of subparagraph
(A) or (B)) to a person who--
``(i) is not a subscriber lawfully receiving such secondary
transmission as of the date of the enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004; and
``(ii) at the time such person seeks to subscribe to
receive such secondary transmission, resides in a local
market where the satellite carrier makes available to that
person the signal of a local network station affiliated with
the same television network pursuant to section 338.
``(D) Authority to grant station-specific waivers.--This
paragraph shall not prohibit a retransmission of a distant
signal (within the meaning of subparagraph (A) or (B)) of any
distant network station to any subscriber to whom the signal
of a local network station affiliated with the same network
is available pursuant to section 338, if and to the extent
that such local network station has affirmatively granted a
waiver from the requirements of this paragraph to such
satellite carrier with respect to retransmission of such
distant network station to such subscriber.
``(E) Notices to networks of distant signal subscribers.--
--
``(i) Within 60 days after the date of enactment of the
Satellite Home Viewer Extension and Reauthorization Act of
2004, each satellite carrier that provides a distant signal
of a network station to a subscriber pursuant to subparagraph
(A) or (B)(i) of this paragraph shall submit to each
network--

``(I) a list, aggregated by designated market area,
identifying each subscriber provided such a signal by--

``(aa) name;
``(bb) address (street or rural route number, city, State,
and zip code); and
``(cc) the distant network signal or signals received; and

``(II) a statement that, to the best of the carrier's
knowledge and belief after having made diligent and good
faith inquiries, the subscriber is qualified under the
existing law to receive the distant network signal or signals
pursuant to subparagraph (A) or (B)(i) of this paragraph.

``(ii) Within 60 days after the date a satellite carrier
commences to carry pursuant to section 338 the signals of
stations from a local market, such a satellite carrier that
provides a distant signal of a network station to a
subscriber pursuant to subparagraph (B)(ii) of this paragraph
shall submit to each network --

``(I) a list identifying each subscriber in that local
market provided such a signal by--

``(aa) name;
``(bb) address (street or rural route number, city, State,
and zip code); and
``(cc) the distant network signal or signals received; and

``(F) Other provisions not affected.--This paragraph shall
not affect the eligibility of a subscriber to receive
secondary transmissions under section 340 of this Act or as
an unserved household included under section 119(a)(12) of
title 17, United States Code.
``(G) Available defined.--For purposes of this paragraph, a
satellite carrier makes

[[Page H8216]]

available a local signal to a subscriber or person if the
satellite carrier offers that local signal to other
subscribers who reside in the same zip code as that
subscriber or person.''.

SEC. 205. ADDITIONAL NOTICES TO SUBSCRIBERS, NETWORKS, AND
STATIONS CONCERNING SIGNAL CARRIAGE.

Section 338 of the Communications Act of 1934 (47 U.S.C.
338) is further amended by inserting after subsection (g) (as
added by section 203) the following new subsection:
``(h) Additional Notices to Subscribers, Networks, and
Stations Concerning Signal Carriage.--
``(1) Notices to and elections by subscribers concerning
grandfathered signals.--Any carrier that provides a distant
signal of a network station to a subscriber pursuant section
339(a)(2)(A) shall--
``(A) within 60 days after the local signal of a network
station of the same television network is available pursuant
to section 338, or within 60 days after the date of enactment
of the Satellite Home Viewer Extension and Reauthorization
Act of 2004, whichever is later, send a notice to the
subscriber--
``(i) offering to substitute the local network signal for
the duplicating distant network signal; and
``(ii) informing the subscriber that, if the subscriber
fails to respond in 60 days, the subscriber will lose the
distant network signal but will be permitted to subscribe to
the local network signal; and
``(B) if the subscriber--
``(i) elects to substitute such local network signal within
such 60 days, switch such subscriber to such local network
signal within 10 days after the end of such 60-day period; or
``(ii) fails to respond within such 60 days, terminate the
distant network signal within 10 days after the end of such
60-day period.
``(2) Notice to station licensees of commencement of local-
into-local service.--
``(A) Notice required.--Within 180 days after the date of
enactment of the Satellite Home Viewer Extension and
Reauthorization Act of 2004, the Commission shall revise the
regulations under this section relating to notice to
broadcast station licensees to comply with the requirements
of this paragraph.
``(B) Contents of commencement notice.--The notice required
by such regulations shall inform each television broadcast
station licensee within any local market in which a satellite
carrier proposes to commence carriage of signals of stations
from that market, not later than 60 days prior to the
commencement of such carriage--
``(i) of the carrier's intention to launch local-into-local
service under this section in a local market, the identity of
that local market, and the location of the carrier's proposed
local receive facility for that local market;
``(ii) of the right of such licensee to elect carriage
under this section or grant retransmission consent under
section 325(b);
``(iii) that such licensee has 30 days from the date of the
receipt of such notice to make such election; and
``(iv) that failure to make such election will result in
the loss of the right to demand carriage under this section
for the remainder of the 3-year cycle of carriage under
section 325.
``(C) Transmission of notices.--Such regulations shall
require that each satellite carrier shall transmit the
notices required by such regulation via certified mail to the
address for such television station licensee listed in the
consolidated database system maintained by the Commission.''.

SEC. 206. PRIVACY RIGHTS OF SATELLITE SUBSCRIBERS.

(a) Amendment.--Section 338 of the Communications Act of
1934 (47 U.S.C. 338) is further amended by inserting after
subsection (h) (as added by section 205) the following new
subsection:
``(i) Privacy Rights of Satellite Subscribers.--
``(1) Notice.--At the time of entering into an agreement to
provide any satellite service or other service to a
subscriber and at least once a year thereafter, a satellite
carrier shall provide notice in the form of a separate,
written statement to such subscriber which clearly and
conspicuously informs the subscriber of--
``(A) the nature of personally identifiable information
collected or to be collected with respect to the subscriber
and the nature of the use of such information;
``(B) the nature, frequency, and purpose of any disclosure
which may be made of such information, including an
identification of the types of persons to whom the disclosure
may be made;
``(C) the period during which such information will be
maintained by the satellite carrier;
``(D) the times and place at which the subscriber may have
access to such information in accordance with paragraph (5);
and
``(E) the limitations provided by this section with respect
to the collection and disclosure of information by a
satellite carrier and the right of the subscriber under
paragraphs (7) and (9) to enforce such limitations.

In the case of subscribers who have entered into such an
agreement before the effective date of this subsection, such
notice shall be provided within 180 days of such date and at
least once a year thereafter.
``(2) Definitions.--For purposes of this subsection, other
than paragraph (9)--
``(A) the term `personally identifiable information' does
not include any record of aggregate data which does not
identify particular persons;
``(B) the term `other service' includes any wire or radio
communications service provided using any of the facilities
of a satellite carrier that are used in the provision of
satellite service; and
``(C) the term `satellite carrier' includes, in addition to
persons within the definition of satellite carrier, any
person who--
``(i) is owned or controlled by, or under common ownership
or control with, a satellite carrier; and
``(ii) provides any wire or radio communications service.
``(3) Prohibitions.--
``(A) Consent to collection.--Except as provided in
subparagraph (B), a satellite carrier shall not use any
facilities used by the satellite carrier to collect
personally identifiable information concerning any subscriber
without the prior written or electronic consent of the
subscriber concerned.
``(B) Exceptions.--A satellite carrier may use such
facilities to collect such information in order to--
``(i) obtain information necessary to render a satellite
service or other service provided by the satellite carrier to
the subscriber; or
``(ii) detect unauthorized reception of satellite
communications.
``(4) Disclosure.--
``(A) Consent to disclosure.--Except as provided in
subparagraph (B), a satellite carrier shall not disclose
personally identifiable information concerning any subscriber
without the prior written or electronic consent of the
subscriber concerned and shall take such actions as are
necessary to prevent unauthorized access to such information
by a person other than the subscriber or satellite carrier.
``(B) Exceptions.--A satellite carrier may disclose such
information if the disclosure is--
``(i) necessary to render, or conduct a legitimate business
activity related to, a satellite service or other service
provided by the satellite carrier to the subscriber;
``(ii) subject to paragraph (9), made pursuant to a court
order authorizing such disclosure, if the subscriber is
notified of such order by the person to whom the order is
directed;
``(iii) a disclosure of the names and addresses of
subscribers to any satellite service or other service, if--

``(I) the satellite carrier has provided the subscriber the
opportunity to prohibit or limit such disclosure; and
``(II) the disclosure does not reveal, directly or
indirectly, the--

``(aa) extent of any viewing or other use by the subscriber
of a satellite service or other service provided by the
satellite carrier; or
``(bb) the nature of any transaction made by the subscriber
over any facilities used by the satellite carrier; or
``(iv) to a government entity as authorized under chapters
119, 121, or 206 of title 18, United States Code, except that
such disclosure shall not include records revealing satellite
subscriber selection of video programming from a satellite
carrier.
``(5) Access by subscriber.--A satellite subscriber shall
be provided access to all personally identifiable information
regarding that subscriber which is collected and maintained
by a satellite carrier. Such information shall be made
available to the subscriber at reasonable times and at a
convenient place designated by such satellite carrier. A
satellite subscriber shall be provided reasonable opportunity
to correct any error in such information.
``(6) Destruction of information.--A satellite carrier
shall destroy personally identifiable information if the
information is no longer necessary for the purpose for which
it was collected and there are no pending requests or orders
for access to such information under paragraph (5) or
pursuant to a court order.
``(7) Penalties.--Any person aggrieved by any act of a
satellite carrier in violation of this section may bring a
civil action in a United States district court. The court may
award--
``(A) actual damages but not less than liquidated damages
computed at the rate of $100 a day for each day of violation
or $1,000, whichever is higher;
``(B) punitive damages; and
``(C) reasonable attorneys' fees and other litigation costs
reasonably incurred.

The remedy provided by this subsection shall be in addition
to any other lawful remedy available to a satellite
subscriber.
``(8) Rule of construction.--Nothing in this title shall be
construed to prohibit any State from enacting or enforcing
laws consistent with this section for the protection of
subscriber privacy.
``(9) Court orders.--Except as provided in paragraph
(4)(B)(iv), a governmental entity may obtain personally
identifiable information concerning a satellite subscriber
pursuant to a court order only if, in the court proceeding
relevant to such court order--
``(A) such entity offers clear and convincing evidence that
the subject of the information is reasonably suspected of
engaging in criminal activity and that the information sought
would be material evidence in the case; and
``(B) the subject of the information is afforded the
opportunity to appear and contest such entity's claim.''.
(b) Effective Date.--Section 338(i) of the Communications
Act of 1934 (47 U.S.C. 338(i))

[[Page H8217]]

as amended by subsection (a) of this section shall be
effective 60 days after the date of enactment of this Act.

SEC. 207. RECIPROCAL BARGAINING OBLIGATIONS.

(a) Amendments.--Section 325(b)(3)(C) of the Communications
Act of 1934 (47 U.S.C. 325(b)(3)(C)) is amended--
(1) by striking ``Within 45 days'' and all that follows
through ``1999, the'' and inserting ``The'';
(2) by striking the second sentence;
(3) by striking ``and'' at the end of clause (i);
(4) in clause (ii)--
(A) by striking ``January 1, 2006'' and inserting ``January
1, 2010''; and
(B) by striking the period at the end and inserting ``;
and''; and
(5) by adding at the end the following new clauses:
``(iii) until January 1, 2010, prohibit a multichannel
video programming distributor from failing to negotiate in
good faith for retransmission consent under this section, and
it shall not be a failure to negotiate in good faith if the
distributor enters into retransmission consent agreements
containing different terms and conditions, including price
terms, with different broadcast stations if such different
terms and conditions are based on competitive marketplace
considerations.''.
(b) Deadline.--The Federal Communications Commission shall
prescribe regulations to implement the amendments made by
subsection (a)(5) within 180 days after the date of enactment
of this Act.

SEC. 208. UNSERVED DIGITAL CUSTOMERS.

(a) Inquiry Required.--Consistent with the digital
television service rules of the Federal Communications
Commission in effect on the date of enactment of this Act,
and the propagation prediction models derived from Bulletin
No. 69 of the Commission's Office of Engineering and
Technology, the Commission shall initiate an inquiry to
recommend the appropriate methodologies for determining which
consumers are in locations where the consumer will be unable,
on and after the date on which analog television services are
discontinued pursuant to the provisions of section 309(j)(14)
of the Communications Act of 1934 (47 U.S.C. 309(j)(14)), to
receive broadcast digital television service signals that are
transmitted from a station's permanent digital television
channel that are of sufficient intensity to be able to
receive and display digital television service using
receiving terrestrial outdoor antennas of reasonable cost and
ease of installation. Such methodologies shall be based on
the current field strength requirements for digital
television stations in section 73.622(e)(1) of the
Commission's regulations (47 CFR 622(e)(1)).
(b) Report Required.--The Federal Communications Commission
shall submit a report on the results of the inquiry required
by subsection (a) to the Committee on Energy and Commerce of
the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate not later than
December 31, 2005. Such report shall include--
(1) a proposal, using the best engineering practices for
the broadcast television industry, for a predictive
methodology for determining both which consumers--
(A) receive a digital signal of sufficient intensity to be
able to receive and display digital television service using
receiving terrestrial outdoor antennas of reasonable cost and
ease of installation; or
(B) will receive such a signal after a local station begins
transmitting on its permanent digital television channel;
(2) an analysis of whether it is possible to identify the
areas of the country within which consumers will not, on and
after the date on which analog television services are
discontinued pursuant to the provisions of section 309(j)(14)
of the Communications Act of 1934 (47 U.S.C. 309(j)(14)), be
able to receive a digital television signal of sufficient
intensity to be able to receive and display digital
television service using receiving terrestrial outdoor
antennas of reasonable cost and ease of installation; and
(3) if possible, an identification, on a county-by-county
or more localized basis, of such areas for each television
network.

SEC. 209. REDUCTION OF REQUIRED TESTS.

Section 339(c)(4) of the Communications Act of 1934 (47
U.S.C. 339(c)(4)) is amended by inserting after subparagraph
(C) the following new subparagraphs:
``(D) Reduction of verification burdens.--Within one year
after the date of enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004, the Commission
shall by rule exempt from the verification requirements of
subparagraph (A) any request for a test made by a subscriber
to a satellite carrier--
``(i) to whom the retransmission of the signals of local
broadcast stations is available under section 338 from such
carrier; or
``(ii) for whom the predictive model required by paragraph
(3) predicts a signal intensity that exceeds the signal
intensity standard in effect under section 119(d)(10)(A) of
such title by such number of decibels as the Commission
specifies in such rule.
``(E) Exception.--A subscriber in a local market in which
the satellite carrier does not offer the signals of local
broadcast stations under section 338 and whose household is
predicted to meet or exceed the number of decibels specified
by the Commission pursuant to subparagraph (D)(ii), may, at
his or her own expense, authorize a signal intensity test to
be performed pursuant to the procedures specified by the
Commission in section 73.686(d) of title 47, Code of Federal
Regulations, by a tester who is approved by the satellite
carrier and by each affected network station, or who has been
previously approved by the satellite carrier and by each
affected network station but not previously disapproved. A
tester may not be so disapproved for a test after the tester
has commenced such test. The tester shall give 5 business
days advance written notice to the satellite carrier and to
the affected network station or stations. A signal intensity
test conducted in accordance with the preceding sentence
shall be determinative of the signal strength received at
that household for purposes of determining whether the
household is capable of receiving a Grade B intensity
signal.''.

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. DeLay) and the gentleman from California (Mr. Berman) each
will control 20 minutes.
The Chair recognizes the gentleman from Texas (Mr. DeLay).
Mr. DeLAY. Mr. Speaker, I ask unanimous consent that the chairman of
the Committee on Energy and Commerce, the gentleman from Texas (Mr.
Barton), and the chairman of the Committee on the Judiciary, the
gentleman from Wisconsin (Mr. Sensenbrenner), each be allowed to
control 10 minutes of the time currently under my control.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that the
gentleman from Texas (Mr. Barton) and I be allowed to yield portions of
the time that has been yielded to us by the majority leader.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Wisconsin?
There was no objection.
Mr. SENSENBRENNER. Mr. Speaker, I yield myself 6 minutes.
Mr. Speaker, I thank the majority leader for calling up this bill
which is appropriately named in tribute to our colleague, the gentleman
from Louisiana (Mr. Tauzin), who will retire at the end of this year
after having served the citizens of Louisiana for more than a quarter
century.
This bill is a product of a remarkable collaborative effort that has
involved members of the Committee on the Judiciary and Committee on
Energy and Commerce. I would like to especially thank the gentleman
from Texas (Mr. Barton) for his excellent cooperation through this
entire process.
The manager's amendment to the bill, which the Committee on the
Judiciary approved unanimously on July 7, 2004, incorporates H.R. 4501
which was the Committee on Energy and Commerce version of the bill
reported on July 22.
The manager's amendment incorporates important refinements to both
the copyright and communications acts. These provisions are designed to
extend for an additional 5 years the license that permits satellite TV
companies such as DirecTV and EchoStar to retransmit to their
subscribers TV programming shown on distant network stations and
superstations. The extension will ensure that Americans who live in
rural areas where they have trouble receiving signals from the regular
broadcast stations will continue to have access to network TV
programming.
Significantly, this bill does not simply preserve the status quo for
the statutory period. Instead, the bill changes both the copyright and
communications acts to ensure, first, that consumers will have greater
choice in programming; second, that satellite providers will have
greater freedom to deliver the content consumers desire; third, that
free, over-the-air local broadcasters will have the opportunity to
serve needs that are specific to their communities; and, fourth, the
copyright owners will enjoy the first compulsory royalty fee adjustment
in nearly 5 years.
The amendments have been carefully negotiated and crafted. They have
benefited from an open process which has involved at least four
committee hearings, the introduction and mark-up of two committee-
reported bills to the House, and a willingness to consider numerous
refinements to achieve the right policy and to gain consensus.
As a result, the bill is supported by numerous organizations
including the

[[Page H8218]]

National Association of Broadcasters, numerous local broadcast
stations, and the Capital Broadcasting Company. In addition, the
royalty provision contained in the judiciary title has been
specifically endorsed by effective stakeholders. This is a culmination
of a painstaking effort under the leadership of the gentleman from
Texas (Mr. Smith) and the ranking member, the gentleman from California
(Mr. Berman), who encouraged affected parties to negotiate a voluntary
agreement.
As a result, the section 119 rate provisions contained in the
manager's amendment are now supported by the two largest DBS providers,
DirecTV and EchoStar; their trade association, the Satellite
Broadcasting and Communications Association, and major copyright owners
including the Motion Picture Association and the Office of the
Commission of Baseball. Together those entities represent the copyright
owners who receive the overwhelming majority of copyright royalties
paid under the license and the satellite carriers who make the vast
majority of such payments.
In return for extending the license to satellite companies, the bill
does require the beneficiaries to accept certain reporting
requirements. These requirements are designed to protect the legitimate
interests of copyright owners and free over-the-air broadcasters.
I would like to take a moment to acknowledge the contributions of the
subcommittee chairman, the gentleman from Texas (Mr. Smith). We could
not have reached this point without his steady work. I also want to
thank the gentleman from Texas (Mr. Barton) for all his help and
support during the process. Thanks also go to other key players, the
gentleman from Michigan (Mr. Upton), the gentleman from Michigan (Mr.
Conyers), the gentleman from California (Mr. Berman), the gentleman
from Michigan (Mr. Dingell), and the gentleman from Massachusetts (Mr.
Markey), all of whom have made significant contributions to this
effort. I appreciate all their efforts.
I am pleased that we have been able to work together in developing
this joint bill, and I look forward to building on this success next
year. The bill promotes the interests of consumers, satellite
providers, broadcasters, and copyright owners. It is a balanced bill
and deserves the support of this House.
Mr. Speaker, I reserve the balance of my time.
Mr. BERMAN. Mr. Speaker, I ask unanimous consent that the gentleman
from Texas (Mr. Gonzalez) be allowed to control 10 minutes of my time.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. BERMAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 4518 and ask my colleagues to
vote in favor of its passage. I am happy to join my friend from
Wisconsin (Mr. Sensenbrenner), the chairman of the committee, the
gentleman who rolled me yesterday, in supporting this legislation.
This bill is a must-pass piece of legislation. Its core provision re-
authorizes the statutory license found in section 119 of the Copyright
Act which is due to expire on December 31 of this year. The section 119
enables satellite television companies to retransmit distant
superstation and network signals to the subscribers who cannot obtain
comparable signals over the air.
Extension of the section 119 license is very important to many
satellite TV subscribers who might otherwise lose access to a number of
popular television stations. The section 119 license is also of great
benefit to satellite TV companies as it provides them with the
equivalent of a valuable government subsidy. It guarantees satellite
companies the ability to retransmit copyrighted broadcast programming,
without the permission of the copyright owners and to do so at a
government set rate.
I support this extension of the section 119 license despite my
longstanding opposition to statutory licensing of copyrighted works.
Section 119 was originally enacted in order to help satellite
television become competitive with cable television which benefits from
an analogous license. With 22 percent of the pay TV market, it appears
that satellite television has reached that goal. However, expiration of
section 119 without simultaneous expiration of the analogous statutory
license for cable television may upset that competitive balance. When
Congress revisits this issue in 2009, it may reach a different
conclusion or even decide to do away with both licenses. Until then,
however, we should strive to maintain a competitive balance.
The legislation before us does far more than simply reauthorize the
section 119 statutory license. It is a combination of two bills that
emerged from the Committee on the Judiciary and the Committee on Energy
and Commerce. As such, it is the culmination of a long, sometimes
difficult but ultimately successful collaboration between our two
committees.
I commend the chairmen of both committees, the Committee on Energy
and Commerce and the Committee on the Judiciary, for their steady and
inclusive stewardship throughout this collaborative effort. I leave it
to my colleagues of the Committee on Energy and Commerce to describe
the provisions of title II which fall in their jurisdiction. However, I
do want to express my support for title II and in particular the single
dish requirement contained therein.
This provision requires that satellite TV providers enable customers
to obtain all local broadcast programming through a single satellite
dish, rather than having to install two dishes. The one-dish
requirement will prevent further de facto discrimination against
broadcast stations carrying minority, religious, and public interest
programming.
As for title I, I am pleased most of all by its royalty provisions.
These provisions represent a marked improvement over the provisions
found in the Judiciary-reported version of H.R. 4518. The bill before
us today does not mandate any increase in royalty rates. Nor does it
establish a specific royalty rate for the retransmission of distant
signals. Rather, the royalty rate will be set through adoption of a
voluntary industry agreement, or in the absence of an acceptable
agreement, by a copyright arbitration royalty panel.
While I do not know its terms, I understand that a voluntary industry
agreement on royalties has already been reached. EchoStar, DirecTV, the
Satellite Broadcast Communications Associations, and the relevant
copyright owners have written us a letter to this effect. The letter
also expresses unequivocal support for the royalty provisions contained
in the bill before us today. If no interested party raises a well-
founded objection, the legislation directs the copyright office to
expeditiously adopt the voluntary industry agreement.
The adoption of this agreement would represent perhaps the least
contentious establishment of section 119 royalties since section 119
was first enacted. All involved deserve a great deal of credit for
reaching a mutually acceptable agreement in such a compressed time
frame.
Once again, Mr. Speaker, I note my support for H.R. 4518, as amended,
and ask my colleagues to add their support.
Mr. Speaker, I reserve the balance of my time.
Mr. BARTON of Texas. Mr. Speaker, do we have the time allocated
equally on both sides, or do I need to yield time to the minority?
The SPEAKER pro tempore. The gentleman from Texas (Mr. Barton) has 10
minutes, and the time has been distributed as agreed to.
Mr. BARTON of Texas. So the gentleman from Texas (Mr. Gonzalez) have
10 minutes?
The SPEAKER pro tempore. Yes, sir. I might point out for further
clarification, the gentleman from California (Mr. Berman) has 10
minutes and the gentleman from Texas (Mr. Gonzalez) has 10 minutes.
Mr. BARTON of Texas. Mr. Speaker, I was under the impression that
perhaps I needed to yield time to the gentleman from Texas (Mr.
Gonzalez), but apparently not, so I yield myself such time as I may
consume.
(Mr. BARTON of Texas asked and was given permission to revise and
extend his remarks.)
Mr. BARTON of Texas. Mr. Speaker, I will focus on what the gentleman
from California (Mr. Berman) asked me to focus on, which is title II of
H.R. 4518 which addresses a communications provision that originated in
H.R. 4501.

[[Page H8219]]

Before I do that, I do want to say how appreciative I am that we have
all agreed to name this after the former chairman of the committee, the
gentleman from Louisiana (Mr. Tauzin). It really is a tribute to him.
He was an expert in telecommunications. He took a personal interest in
telecommunications acts, and I am proud that my House colleagues have
agreed that we can name the bill in his honor.
I would also like to inform the House that another of our colleagues,
the gentleman from Georgia (Mr. Norwood), a distinguished member of the
Committee on Energy and Commerce, did have a lung implant last evening,
and he is doing well today in the hospital. When he came out from
anesthesia, his first question was was his staff at work today. So he
was obviously doing well.

{time} 1330

Let me go to the issue at hand. Current law authorizes direct
broadcast satellite operators, such as DirecTV and EchoStar, to provide
the signals of distant broadcast network stations to a consumer who
cannot receive an over-the-air signal from the local network stations.
The Communications Act exempts satellite operators from having to
obtain consent from a distant broadcaster to carry the signal into the
local market. That exemption expires at the end of this year. The bill
before us would extend that exemption to December 31, 2009.
Cable operators currently may carry certain out-of-market signals
into a local market if the signals can be viewed by a significant
number of people in the local market using over-the-air antennas. The
bill would extend to satellite operators the authority to carry such
significantly viewed signals on comparable terms as cable operators.
EchoStar currently uses two satellite dishes in some markets to
provide local broadcast stations. Some broadcasters argue that this
harms the ratings of stations on the second dish because not all
customers are aware of, or want to install, that second dish. The bill
before us would give EchoStar 1 year from date of enactment to provide
all local stations in a market on a single satellite dish.
The bill would also require satellite operators to stop offering
distant signals in markets where they carry local signals. It does,
however, grandfather certain existing subscribers.
Although broadcasters are starting to transmit in digital, their
digital signals do not yet reach all consumers over the air. As a
result, many consumers could not receive a digital signal over the air
even if they had a digital television. Once the digital television
transition is complete, analog broadcasts will cease.
At that time, it will be important for satellite operators to be able
to provide distant digital signals to consumers in so-called ``white
areas,'' who cannot receive local digital signals over the air, just as
satellite operators currently offer distant analog signals to
subscribers who are unserved over the air.
The bill requires the Federal Communications Commission to submit a
report to the House Committee on Energy and Commerce at the end of 2005
on how it would propose to implement a digital white air area once the
DTV transition ends.
Mr. Speaker, I'm proud to bring before the House today H.R. 4518, the
``Satellite Home Viewer Extension and Reauthorization Act of 2004'',
SHVERA. The bill will also be known as ``The W.J. `Billy' Tauzin
Satellite Television Act of 2004,'' in honor of our former House Energy
and Commerce Committee chairman. He has done so much to foster the
growth of satellite television, increase television service
competition, and improve choices for consumers that it is only fitting
that we name this bill after him. Chairman Tauzin is currently
recovering from a bout with cancer. My understanding is that he is
doing so with his characteristic vigor and good humor, and is faring
well. I am sure all join me in wishing him a speedy recovery.
The bill reauthorizes certain expiring provisions in the
communications and copyright acts regarding satellite television. It
also increases parity and enhances competition between satellite and
cable operators by modernizing other provisions. Because the bill
implicates both communications and copyright issues, the House Energy
and Commerce Committee and the House Judiciary Committee have worked
closely in drafting the legislation. Indeed, pursuant to a compromise
between the House Energy and Commerce Committee and the House Judiciary
Committee, H.R. 4518 has now been amended to combine its copyright
provisions with the Communications Act provisions of H.R. 4501, which
my committee reported 3 months ago.
H.R. 4501 resulted from an extensive examination of satellite
television issues. The Subcommittee on Telecommunications and the
Internet held an oversight hearing on March 10, 2004, and a legislative
hearing on April 1, 2004. The subcommittee then marked up the
legislation on April 28, 2004, and the full committee marked up the
bill on June 3, 2004. I will focus the remainder of my remarks to title
II of H.R. 4518, as amended, which addresses the Communications Act
provisions that originated in H.R. 4501.
Current law authorizes direct broadcast satellite, DBS, operators,
such as DirecTV and Echostar, to provide the signals of distant
broadcast network stations to a consumer who cannot receive an over-
the-air signal from the local network stations. The Communications Act
exempts satellite operators from having to obtain consent from a
distant broadcaster to carry the signal into the local market. That
exemption expires at the end of this year. The bill would extend it to
December 31, 2009.
Cable operators currently may carry certain out-of-market signals
into a local market if the signals can be viewed by a ``significant
number'' of people in the local market using over-the-air antennas. The
bill would extend to satellite operators the authority to carry
such significantly viewed signals on comparable terms as cable
operators.

Echostar currently uses two satellite dishes in some markets to
provide local broadcast stations. Some broadcasters argue that this
harms the ratings of stations on the second dish because not all
customers are aware of, or want to install, the second dish. The bill
would give Echostar 1 year from enactment to provide all local stations
in a market on a single satellite dish.
The bill also requires satellite operators to stop offering distant
signals in markets where they carry local signals. It does, however,
grandfather certain existing subscribers.
Although broadcasters are starting to transmit in digital, their
digital signals do not yet reach all consumers over the air. As a
result, many consumers could not receive a digital signal over the air
even if they had a digital television. Once the digital television
transition is complete, analog broadcasts will cease. At that time, it
will be important for satellite operators to be able to provide distant
digital signals to consumers in ``white areas'' who cannot receive
local digital signals over the air, just as satellite operators
currently offer distant analog signals to subscribers who are
``unserved'' over the air. The bill requires the Federal Communications
Commission to submit a report to the House Energy and Commerce
Committee at the end of 2005 on how it would propose to implement a
digital white area once the LTV transition ends.
Since its introduction about a decade ago, satellite television
service has become a significant facilities-based competitor to cable
service. Satellite retransmission of broadcast programming is
responsible for much of the growth. Satellite-delivered television
service started as a way to serve consumers, particularly in rural
areas, who could not get adequate over-the-air reception and did not
have access to cable. But DBS does more than serve otherwise unserved
areas. Its nationwide coverage allows it to compete against cable
operators, and in so doing it improves consumer options. Indeed, the
presence of satellite operators has caused cable operators to upgrade
their infrastructure to allow consumers to receive high-quality video
and more channels, as well as interactive, broadband, video-on-demand,
and Internet telephony services.
By extending the expiring provisions, increasing parity, and
promoting further competition, this legislation will continue to
enhance service to consumers.
I urge my colleagues to support the bill.
Mr. Speaker, I reserve the balance of my time, and I ask unanimous
consent that the gentleman from Michigan (Mr. Upton), the distinguished
subcommittee chairman, control the balance of my time.
The SPEAKER pro tempore (Mr. Whitfield). Is there objection to the
request of the gentleman from Texas?
There was no objection.
Mr. GONZALEZ. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, I rise in support of H.R. 4518, the Satellite Home
Viewer Extension Reauthorization Act of 2004. I would like to thank the
gentleman from Texas (Chairman Barton) and the gentleman from Wisconsin
(Chairman Sensenbrenner), the gentleman from Michigan (Ranking Member
Dingell) and the gentleman from Michigan (Ranking Member Conyers) and
the subcommittee chairmen and ranking

[[Page H8220]]

members for their hard work on this piece of legislation.
H.R. 4518 is a comprehensive, bipartisan bill crafted jointly by the
Committee on Energy and Commerce and the Committee on the Judiciary
that will preserve localism, protect consumer privacy and increase
competition between cable and satellite companies.
Local broadcasters play a vital role in providing to the communities
they serve local news and weather, information on community events and
entertainment. In 1999, Congress recognized the important role of local
broadcasters when it last authorized this act. Specifically, the act
requires satellite companies to offer in a nondiscriminatory manner all
local broadcast signals once the satellite carriers begin offering
local-into-local service in a market. This requirement, dubbed ``carry
one, carry all,'' was the cornerstone of the act.
Unfortunately, in several markets, one satellite company has refused
to comply with this requirement. For several years, I have heard
complaints from local Spanish language broadcasters that one particular
satellite company has refused to carry Spanish language broadcasts on
the same dish on which it carries the signals of the major television
networks. In fact, in my own home State of Texas nine of the eleven
stations bumped by that particular satellite company to a second dish
are Spanish language stations.
In these two-dish markets, customers do not receive all of the
channels for which they have paid if they do not ask that particular
company for the second dish. This is unfair to consumers, and it harms
the viability of local broadcasters because fewer people are watching
their channels.
The negative effects of a two-dish practice are made even greater by
a failure to inform many customers of a particular company of the need
for a second dish. This practice is wrong. It undermines basic
principles of localism by essentially giving Spanish language and other
minority-themed stations a second-class status in their own home
markets.
I thank my colleagues for including language in this bill that would
put an end to this two-dish practice within 1 year. Forcing satellite
providers to carry all local broadcast signals on one dish will finally
ensure the equal treatment of all broadcasters.
Protecting the privacy of consumers who subscribe to satellite
television is also very important. Although current law protects the
privacy of persons who subscribe to cable television service, it does
not protect those who subscribe to satellite service.
I commend the gentleman from Massachusetts (Mr. Markey) in particular
for seeing to it that this bill extends to satellite subscribers the
same privacy protections in effect for cable subscribers.
Finally, increasing competition between cable and satellite companies
is an important goal of this act. Prior to the last reauthorization of
the act, cable companies provided their customers with all of the local
broadcast channels, but satellite companies were not permitted to do
the same. Since Congress gave satellite companies the authority to
provide local-into-local service in 1999, the number of subscribers to
satellite has about doubled.
This legislation before us today makes further important strides in
increasing parity which should lead to greater competition between
cable and satellite. Right now, cable television companies can provide
their subscribers with signals that are significantly viewed in a local
market. Satellite television providers have no such authority. H.R.
4518 would fix this inequity by permitting satellite carriers of those
same significantly viewed signals.
Mr. Speaker, this is a good bill that preserves local broadcasting,
protects the privacy of satellite television service subscribers, and
will provide a more level playing field for satellite companies on
which to compete against cable providers. I support these goals and
urge all Members to support this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. SENSENBRENNER. Mr. Speaker, I yield the balance of my time to the
gentleman from Texas (Mr. Smith), the chairman of the Subcommittee on
Courts, the Internet, and Intellectual Property.
(Mr. SMITH of Texas asked and was given permission to revise and
extend his remarks, and include extraneous material.)
Mr. SMITH of Texas. Mr. Speaker, first of all, I thank the gentleman
from Wisconsin (Mr. Sensenbrenner), the chairman of the Committee on
the Judiciary, for yielding me time.
Mr. Speaker, I support the manager's amendment to H.R. 4518, the
Satellite Home Viewer Extension and Reauthorization Act of 2004 which I
introduced.
I, too, would like to acknowledge the contributions and support of
the gentleman from Texas (Chairman Barton) and our colleagues on the
Committee on Energy and Commerce.
Without the hard work of the gentleman from Michigan (Mr. Upton),
sitting to my right, the gentleman from Michigan (Mr. Dingell) and the
gentleman from Massachusetts (Mr. Markey), a bill this complex would
not have been able to move under suspension.
Also, I want to especially thank the gentleman from Wisconsin
(Chairman Sensenbrenner) for his leadership, as well as recognize the
personal effort and contributions of both the gentleman from Michigan
(Mr. Conyers) and the gentleman from California (Mr. Berman).
This bill will reauthorize the Copyrights Act's distant-signal
license, which benefits the satellite industry. Because of this bill,
Americans will continue to be able to receive television programming
over satellite.
This legislation strikes a balance between the interests of
intellectual property owners and the interests of the satellite
providers who distribute copyrighted programming.
With time running out this session, it is now critically important
that H.R. 4518 be enacted without delay.
The bill makes important changes to both the Copyright Act and the
Communications Act to ensure that consumers will have greater choices
in programming; that satellite providers have greater freedom to
deliver the content consumers desire; that free over-the-air local
broadcasters have the opportunity to serve needs that are specific to
their communities; and that copyright owners receive the first
adjustment to their compensation in 5 years.
In addition, the bill requires the Copyright Office to complete a
study and provide recommendations on whether Congress should take
further steps to create more parity with the cable compulsory license.
Mr. Speaker, I would also like to recognize the hard work and
countless hours that were dedicated by the Copyright Office's Bill
Roberts, as well as by David Whitney of my staff, Sampak Garg of the
gentleman from Michigan's (Mr. Conyers) staff, and Alec French from the
gentleman from California's (Mr. Berman) staff.
Mr. Speaker, H.R. 4518 is a carefully crafted bill that promotes the
interests of consumers, satellite providers, broadcasters and copyright
owners. It is a fair and balanced bill that deserves the support of
this House.
Mr. Speaker, I would like to insert a copy of the September 23 letter
by DirecTV, EchoStar, the Motion Picture Association, Major League
Baseball into the Record, as well as an October 5 letter by Eddie
Fritts of the National Association of Broadcasters that endorses H.R.
4518 at this point.

National Association of

Broadcasters,

Washington, DC, October 5, 2004.
Dear Representative: I understand that this week the House
of Representatives will consider H.R. 4518, the Satellite
Home Viewer Extension and Reauthorization Act. On behalf of
your local television stations, I am writing to urge you to
support this critical legislation, which will help preserve
localism in television and protect the interests of the
American viewer.
The legislation enjoys widespread, bipartisan support. The
bill is the result of extensive compromise and negotiation
between Members of the two Committees of jurisdiction, the
Judiciary Committee and the Energy and Commerce Committee and
is carefully crafted to address a range of satellite
television issues in a pro-consumer fashion. For instance:
The bill would create incentives for satellite subscribers
to gradually shift to selecting their local television
stations in their programming packages.
It would phase-out a discriminatory ``2-dish'' practice
which relegates some local television stations to a second
dish, where they are all but invisible to satellite
subscribers.
The bill would give satellite providers parity with cable
by allowing them to import

[[Page H8221]]

``significantly viewed'' out-of-market stations from
adjoining markets.
The legislation balances this new privilege with key
safeguards ensuring such a practice is not abused to the
detriment of local television and consumers.
The bill provides a long needed update to copyright rates,
increasing compensation for copyright holders.
Some have argued the legislation should be modified to
include a ``Digital White Areas'' provision, which would
permit satellite companies to import national, distant,
digital network digital networks from Los Angeles or New York
into local television markets, supplanting local television
stations. However, the vast majority of industry
stakeholders, including local broadcast stations, the
television networks, cable operators, and DirecTV have
rejected this approach and are instead working to see local
high-definition digital television available on cable and
satellite systems. We urge you to reject the Digital White
Areas proposal as well.
Ultimately, as the product of an open process of hearings
and mark-ups in both Committees of jurisdiction, H.R. 4518
would reauthorize the Satellite Home Viewer Improvement Act
in a manner consistent with broadcast television localism. I
strongly urge you to pass H.R. 4518 as written. The measure
will take import strides in protecting the interests of
consumers and furthering localism in television.
Sincerely,
Eddie Fritts.
____

September 23, 2004.
Re H.R. 4518, Satellite Home Viewer--Extension and
Reauthorization Act of 2004.

Hon. F. James Sensenbrenner, Jr.,
Chairman, Committee on the Judiciary, House of
Representatives, Rayburn House Office Building,
Washington, DC.
Hon. Lamar Smith,
Chairman, Subcommittee on Courts, the Internet and
Intellectual Property, House of Representatives, Rayburn
House Office Building, Washington, DC.
Hon. John Conyers, Jr.,
Ranking Member, Committee on the Judiciary, House of
Representatives, Rayburn House Office Building,
Washington, DC.
Hon. Howard L. Berman,
Ranking Member, Subcommittee on Courts, the Internet and
Intellectual Property, House of Representatives, Rayburn
House Office Building, Washington, DC.
Dear Congressmen: This letter is written on behalf of the
undersigned representatives of those (1) copyright owners who
receive the vast majority of the copyright royalties paid for
the statutory licenses set forth in Section 119 of the
Copyright Act, 17 U.S.C. Sec. 119; and (2) satellite carriers
who pay the vast majority of the Section 119 royalties.
At your request, we undertook negotiations over the
copyright royalty rates that satellite carriers should pay
under Section 119 for the statutory license to retransmit
superstations and network stations. As we are certain you
understand, negotiations of this nature necessarily involve a
number of difficult and competing considerations and
strongly-held views. Nevertheless, we are pleased to report
that, with the considerable assistance of you and your staff,
our negotiations have been successful. We have entered into a
voluntary agreement specifying the royalty fees that
satellite carriers would pay for the Section 119 license
during each of the years 2005 through 2009.
Our agreement is effective only if legislation is enacted
into law, prior to January 1, 2005, with provisions that: (1)
reauthorize 17 U.S.C. Sec. 119 for the five-year period
ending December 31, 2009; (2) permit affected parties to
enter into voluntary agreements as an alternative to a
Copyright Arbitration Royalty Panel (``CARP'') proceeding;
(3) provide for the convening, if necessary, of a CARP
proceeding to adjust the royalty rates payable under 17
U.S.C. Sec. 119, provided that such provisions require the
Librarian of Congress and any CARP to adjust any fees set by
arbitration to account for the obligations of the parties
under any applicable voluntary agreements filed with the
Copyright Office; and (4) amend the Section 119 compulsory
license to permit the retransmission of superstations to
commercial establishments. These provisions are collectively
referred to herein as the ``Section 199 Rate Provisions.''
If legislation containing each of these Section 119 Rate
Provisions is enacted into law prior to January 1, 2005, we
will submit to the Copyright Office our voluntary agreement
that specifies the agreed-upon royalty rates, and this
agreement will become binding on the parties. We will also
jointly petition the Copyright Office to adopt these rates
for all copyright owners, satellite carriers and distributors
under Section 119.
Attachment A hereto describes in narrative form the changes
that we believe must be made to H.R. 4518, as reported to the
House of Representatives on September 7, 2004, for that bill
to incorporate the above-identified Section 119 Rate
Provisions. Attachment B provides specific suggested language
amending H.R. 4518 to reflect the Section 119 Rate
Provisions. Attachment C contains a red-lined version of H.R.
3518 showing the proposed Section 119 Rate Provisions.
There are a few additional points that we wish to
emphasize. First, the rates to which the parties have agreed
reflect multiple considerations and difficult compromises--
including a desire to be responsive to your reasonable
requests for a negotiated agreement and to avoid the costs
and uncertainties of further controversy and political
litigation. Accordingly, our agreement provides that its
terms do not have any precedential value. Nevertheless, we
firmly believe that it is in the best interests of all
copyright owners and satellite carriers alike, as well as
those consumers who receive the valuable copyrighted works
offered under the Section 119 statutory license, for Congress
to enact the Section 119 Rate Provisions--and for the
Copyright Office ultimately to adopt the rates set forth in
our voluntary agreement.
Second, nothing in our voluntary agreement prevents any
party from supporting or opposing provisions other than those
reflected in the attached Section 119 Rate Provisions.
Third, each of the Parties to this agreement (DIRECTV,
EchoStar and the copyright owners) supports the attached
Section 119 Rate Provisions. This is not to say, however,
that each of the parties would support any legislative
vehicle to which the Section 119 Rate Provisions could be
attached. Each Party must base its decision on whether to
support any such legislation on the totality of the
provisions therein.
Finally, we wish to personally thank each of you and your
staff for your continuing efforts in bring the parties
together and assisting us to resolve our considerable
differences in an amicable way that serves the best interests
of all concerned. In particular, we wish to recognize the
hard work of David Whitney, Alec French, Sampak Garg and
Cameron Gilreath. We very much appreciated their
professionalism, their diligence and their patience
throughout the process. It is our fervent wish that all of
these efforts bear fruit with the passage of legislation that
resolves the Section 119 rate issues for the upcoming five-
year period.
Sincerely,
Program Suppliers: Fritz Attaway, Executive Vice President
and Washington Counsel, Motion Picture Association of
America, Inc.
Joint Sports Claimants: Thomas J. Ostertag, Senior Vice
President & General Counsel, Office of the Commissioner of
Baseball.
DirecTV, Inc.: Daniel M. Fawcett, Executive Vice President
and General Counsel.
EchoStar Satellite L.L.C.: David K. Moskowitz, Executive
Vice President & General Counsel.
Satellite Broadcasting & Communications Association:
Richard DalBello, President.

Mr. Speaker, finally and obviously, I urge all Members to support
this good piece of legislation, and I appreciate in advance their
support.
Mr. UPTON. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
Indiana (Mr. Buyer), my friend and colleague, a member of the
Subcommittee on Telecommunications and the Internet.
(Mr. BUYER asked and was given permission to revise and extend his
remarks.)
Mr. BUYER. Mr. Speaker, I appreciate the gentleman's good work on
this.
The act we are approving today continues a strong policy of
continuing local-to-local service. It also pushes the satellite
industry to be as competitive as possible with cable.
For the first time, the bill will allow satellite carriers to deliver
significantly viewed stations from nearby markets as cable now is able
to do. In any given community, the significantly viewed stations that
the direct broadcast service will be allowed to carry are exactly the
same ones that cable can carry.
The act imposes a variety of limits designed to protect free, local,
over-the-air broadcasting. For example, the only subscribers who can
receive significantly viewed stations are those who are already
receiving their own local stations by satellite.
Nor can the direct broadcast service company offer a digital signal
of a significantly viewed affiliate of, say, CBS to a subscriber to
which it offers only the analog feed of the local CBS station or carry
the significantly viewed CBS station with more digital broadband than
the local station.
There also are some pretty strong provisions in this. If the
satellite carrier abuses this new regime by carrying an unauthorized
station, it will be both subject to swift and severe penalties at the
FCC and will forfeit its compulsory license under the Copyright Act
which is conditioned on compliance with all applicable FCC rules
regulations and authorization.
I had been impressed with the satellite industry and how it has
created this industry, but they also now need to be fair players in the
marketplace.
As Congress made clear when we passed the 1999 Satellite Home Viewer
Improvement Act (``SHVIA''), it is far better for local communities if
satellite carriers offer their customers local television stations--
including network

[[Page H8222]]

stations--rather than TV stations from other cities. Put another way,
local-to-local service is the right way, and--except when there is no
other choice--distant network stations are the wrong way, to deliver
broadcast programming by satellite. Local-to-local fosters localism and
helps keep free, over-the-air television available to everyone, while
delivery of distant network stations to households that can receive
their own local stations (whether over the air or via local-to-local
service) has just the opposite effect.
The pro-local-to-local policy of the 1999 SHVIA has been an
astounding success. The satellite industry has grown spectacularly
since then, spurred--as the satellite industry has many times reminded
us--by the availability of local-to-local service. In fact, in the past
year, the number of cable subscribers has actually shrunk, while
satellite carriers continue to expand at a rapid clip.
Recognizing that local-to-local is not just good policy but good
business, the DBS firms have expanded local-to-local service at a rate
far faster than the industry predicted a few years ago. As to analog
service, EchoStar recently announced that it was serving no fewer than
150 local markets, covering more than 90 percent of the television
households in the United States. And for its part, DirecTV expects to
offer local-to-local in at least 130 local markets by the end of 2004--
and has committed to offering local-to-local in every market as soon as
2006, and no later than 2008.
I want to commend DirecTV for its commitment to provide service to
all 210 Designated Market Areas. I hope that EchoStar is on a similar
path and will provide more certainty as to when this might occur just
as DirecTV has done. It is my hope that this service is provided sooner
rather than later so that those satellite subscribers in Lafayette,
Indiana will be able to receive their local affiliate station and
achieve true local-into-local service.
But there is still more: DirecTV announced just a few weeks ago that
it plans to offer high-definition local-to-local service in many
markets over the next few years. With the first of its new satellites,
DirecTV plans to offer during 2005 more than 500 local high-definition
channels, enabling it to offer local HD programming to the majority of
U.S. television households. And with the launch of still more new
satellites, DirecTV will be able to add even more local HD markets in
the future. Of course, in the highly competitive world of multichannel
television providers, there is little doubt that DirecTV's competitors
will be driven to try to match--or exceed--DirecTV's local-to-local
offerings. And that is all to the good.
The Act we are approving today continues the strong policy of
encouraging local-to-local service and pushing the satellite industry
to be as competitive as possible with cable. For the first time, the
bill will allow satellite carriers to deliver ``significantly-viewed''
stations from nearby markets, as cable is now able to do. In any given
community, the ``significantly viewed'' stations that DBS will be
allowed to carry are exactly the same ones that cable can carry. The
Act imposes a variety of limits designed to protect free, local, over-
the-air broadcasting: For example, the only subscribers who can receive
significantly-viewed stations are those who already receive their own
local stations by satellite. (Since cable always offers local stations,
this rule ensures a level playing field.) Nor can a DBS company offer a
digital signal of a significantly-viewed affiliate of, say, CBS, to a
subscriber to which it offers only the analog feed of the local CBS
station, or carry a significantly-viewed CBS station with more digital
bandwidth than the local CBS station (unless the carrier offers the
entire bandwidth of the local digital station).
If a satellite carrier abuses this new regime--by carrying
unauthorized stations--it will both be subject to swift and severe
penalties at the FCC, and will forfeit its compulsory license under the
Copyright Act, which is conditioned on compliance with all applicable
FCC rules, regulations, and authorizations.
Mr. GONZALEZ. Mr. Speaker, I yield 3 minutes to the gentleman from
New York (Mr. Engel).
Mr. ENGEL. Mr. Speaker, I thank the gentleman for yielding time to
me. And, Mr. Speaker, I am pleased to rise in strong support of this
proconsumer legislation, the Satellite Home Viewers Extension and
Reauthorization Act.
I also want to thank the chairman and ranking member of the Committee
on Energy and Commerce for the manner in which this legislation moved
through our committee. The Committee on Energy and Commerce moved
through the process, it was completely open and bipartisan; and I thank
the Chair for that.
The Satellite Home Viewer Improvement Act expires at the end of this
year. Thus, we must act quickly to ensure our constituents continue to
receive the services they enjoy.
This bill also does a great service to our communities by preserving
and strengthening local broadcasting.
My interest in this legislation was piqued when I discovered that one
of the two satellite companies was engaging in a discriminatory
practice that forced 95 percent of their customers to pay for services
they do not receive.
EchoStar's system requires two satellite dishes on a rooftop to be
able to receive all of the local channels and other channels they
offer. Nothing is wrong with that. It is how their technology works.
However, EchoStar is discriminatory in choosing which local
broadcasters would end up on the second dish which is inconvenient.
Most often it is Spanish language, public and religious broadcasters.
On top of that, EchoStar does a poor job informing its customers of
the need for a second dish, and the company requires a second
technician to come out and install the second dish. The company states
that only about 5 percent of their customers take the second dish,
which means that 95 percent of customers are paying for services they
do not receive.
This legislation requires all satellite companies to put all local
channels on one of the two dishes. I think that is important, and I
think it is a major breakthrough.
This provision is also key to the health of the satellite industry by
setting the ground rules for providing local broadcast stations. Local-
to-local has been a driving force in the satellite television
industry's growth. In 1999, just prior to the establishment of the
local-to-local compulsory license, the industry had 10.1 million
subscribers. Only 4 years later, after the advent of local-to-local,
the industry had more than doubled its subscriber base to 20.4 million.
Another key provision gives consumers of satellite TV service the
same choices as cable subscribers. Specifically, the bill gives
satellite the ability to import significantly viewed stations from
adjoining markets. At the same time, the bill includes safeguards to
ensure this new privilege is not abused to the detriment of local
television and television viewers.

{time} 1345

This means, for example, a satellite prescriber in Baltimore could
soon be getting Washington, D.C., local stations if they are
significantly viewed. For people who live in or near Baltimore and
commute to D.C. to work, the traffic reports are obviously vital.
In closing, Mr. Speaker, this legislation enjoys widespread
bipartisan support in Congress as well as the endorsement of nearly all
key industry stakeholders, including local television stations, the
television networks, cable operators, and DirecTV.
Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today we are considering H.R. 4518, which is
alternatively named the ``W.J. `Billy' Tauzin Satellite Television Act
of 2004,'' in honor of our former chairman, Billy Tauzin. It is
particularly fitting that this is named after Boudreaux friend, Billy
Tauzin, since he was the chief architect of the regulatory landscape
which promoted the creation of a vibrant satellite TV industry to the
benefit of so many consumers across the country.
Mr. Speaker, our prayers remain with Billy Tauzin as he continues his
fight against cancer, and I know that he is fighting with the same vim
and vigor that characterizes his very able public service.
This bill reauthorizes certain expiring provisions in the
communications and copyright acts. It also modernizes other provisions
to increase parity and enhance competition between satellite and cable
operations. And given that this bill affects both communications and
copyright issues, the Committee on Energy and Commerce worked very
closely with the House Committee on the Judiciary on a bipartisan basis
in putting this bill together.
Procedurally, this bill combines the elements of H.R. 4501, which was
reported by the House Committee on Energy and Commerce, with elements
of H.R. 4518, which was reported by the House Committee on the
Judiciary. I want to commend my colleagues on both committees, on both
sides of the aisle, for their cooperation and dedication of this
mission, particularly the gentleman from Wisconsin (Mr. Sensenbrenner),
chairman of the Committee on the Judiciary; the gentleman

[[Page H8223]]

from Texas (Mr. Smith), chairman of the Subcommittee on Courts, the
Internet, and Intellectual Property; and, obviously, the ranking member
of the Committee on Energy and Commerce, the gentleman from Michigan
(Mr. Dingell) and the ranking member of the Subcommittee on
Telecommunications and the Internet, the gentleman from Massachusetts
(Mr. Markey), for their very active work on this legislation.
This bill resulted from an extensive examination of satellite TV
issues in our committee. The subcommittee on Telecommunications and the
Internet held an oversight hearing on March 10, a legislative hearing
on April 1, subcommittee markup to legislation on April 28, and the
full committee markup to legislation on June 3 that would become H.R.
4501. As I recall, that bill passed in both the subcommittee and full
committee on a voice vote. It was extensively bipartisan from the very
start. And without a doubt, by extending these expiring provisions,
increasing parity between satellite TV and cable operators, promoting
competition between satellite TV and cable, the bill will enhance
consumer choice and service.
Mr. Speaker, this bill builds upon the solid foundation laid by our
friend Billy Tauzin. I commend this bill to my colleagues on both sides
of the aisle and urge its passage.
Mr. Speaker, I yield back the balance of my time.
Mr. GONZALEZ. Mr. Speaker, I yield myself such time as I may consume.
Just briefly again, Mr. Speaker, this is a bill that makes good
business sense and is a good deal for the consumer, standing for the
proposition those are not mutually exclusive concepts.
Mr. DINGELL. Mr. Speaker, I rise today in support of H.R. 4518, the
Satellite Home Viewer Extension and Reauthorization Act of 2004. I
congratulate Chairmen Barton and Sensenbrenner, Ranking Member Conyers
and the subcommittee chairmen and ranking members of their hard work on
this legislation. The task of combining separate Energy and Commerce
and Judiciary Committee bills into a single product is never easy, but
I am pleased with this bipartisan bill before us today. Let us hope
that the other body will act with due haste to ensure that this
legislation becomes law this year.
I note that the bill before us incorporates the language of both H.R.
4501 and H.R. 4518 was solely referred to the Committee on Energy and
Commerce. H.R. 4518 was referred solely to the Committee on the
Judiciary. The members of both committees worked long and hard on their
respective bills. Accordingly, the legislative history on H.R. 4518
includes the legislative history of H.R. 4501.
The bill before us achieves three very critical goals. First, it will
increase regulatory parity between cable and satellite providers,
thereby strengthen satellite companies' ability to compete in the
multichannel video marketplace. Currently, cable providers can offer
their subscribers out-of-market television signals that are
``significantly viewed'' in the subscribers' local communities.
Satellite companies, however, are prevented by law from offering to
their subscribers the same signals. This bill would change the law to
provide satellite companies an equal right to provide their subscribers
those ``significantly viewed'' signals. This increased parity should
help spur greater competition between cable and satellite providers and
ultimately benefit consumers in the form of lower prices and better
service.
Second, the act will protect consumers and foster localism by
ensuring that satellite customers receive all of their local broadcast
signals when these signals become available via satellite. Local
broadcasters provide their communities with important local
programming. Whether it is local news, weather, or community events,
these broadcasters are there, on the ground serving their friends and
neighbors. This idea of localism was recognized and fostered by
Congress during the last reauthorization of this statute in 1999,
through a provision called ``carry one, carry all.'' This policy
mandates that a satellite provider, in a nondiscriminatory fashion,
offer all local broadcast signals in a market if it offers one.
Finally, I am also pleased that this bill will help protect consumer
privacy. This bill will force satellite carriers to comply with the
same privacy obligations that already apply to cable television
providers. Personally identifiable information will now be better
protected.
Mr. Speaker, H.R. 4518 will encourage competition between cable and
satellite. It also furthers the goal of localism and protects
consumers. I urge my colleagues to support it.
Mr. CONYERS. Mr. Speaker, I rise in support of this legislation, of
which I am an original cosponsor. I first would like to note the comity
that went into drafting this bill. We worked with the Commerce
Committee on addressing the relevant issues based on jurisdiction.
Further, Chairman Sensenbrenner and his staff worked diligently with us
on drafting this legislation. I would particularly like to thank David
Whitney, counsel to the majority, whose diligence and bipartisanship
are the only reason we are here today.
In 1999, we passed the Satellite Home Viewer Improvement Act to allow
satellite companies to retransmit distant network signals to customers
who could not receive clear over-the-air television signals. Such
companies have to pay a government-set rate to the broadcast copyright
owners. While I had, and still have, hesitations about creating
compulsory licenses that require content owners to sell their work for
a set fee, I believe this license led to significant competition in
programming distribution.
As a result of this policy decision, the satellite industry has
dedicated significant technological and financial resources to
expanding the choices available to consumers. I am certain we can all
agree that is a good thing.
The 1999 law expires at the end of this calendar year, so we must
reauthorize it. The bill before us extends the license for 5 years.
Importantly, the bill goes beyond that in addressing the desires of
consumers in that it permits the satellite companies to retransmit a
significantly viewed local signal to a customer.
The bill also settles a gray area in terms of what satellite service
customers can get when local-to-local satellite television is
available. Under the new regime, current subscribers will be allowed to
choose between the distant signal service or the local service. New
customers would be provided with the local service.
Despite the benefits of this legislation and the work of the
interested parties, much remains to be done in terms of providing
complete television service across the country. I look forward to
working with the content owners and satellite companies in making that
happen.
I urge my colleagues to vote ``yes'' on this legislation.
Mr. TANCREDO. Mr. Speaker, I wish to express my views on the
legislation before us today.
This legislation includes a requirement for Echostar, better known as
Dish Network, to eliminate the solution it developed to serve more
Americans with local service than any other satellite TV company. The
legislation would eliminate its ``two dish'' solution within 12 months.
This requirement will cause consumer inconvenience and hamper the
rollout of local programming. The ``two dish'' remedy maximizes the
number of television markets that can receive local channels by
utilizing the scarce spectrum available.
I believe a better route to dealing with the lack of spectrum, which
I know is a priority for you, is for this legislation to include a
provision similar to that of the Senate Commerce Committee. That
committee voted to allow satellite TV providers to offer High
Definition TV service to markets where a local broadcaster is not even
offering a digital signal. As noted in the Digital Transition Coalition
letter which I will also enter into the Record, the freed-up spectrum
could be redeployed to our Nation's first responders, auctioned to
wireless companies eager to offer new advanced services, and raise
funds that could be returned to the taxpayer or put to paying off the
debt.
I look forward to our continuing work on this legislation.

Digital Transition Coalition,

Washington, DC, October 4, 2004.
Hon. J. Dennis Hastert,
Speaker, House of Representatives,
U.S. Capitol, Washington, DC.
Dear Speaker Hastert: The Digital Transition Coalition is
writing to express its concern regarding the House
reauthorization of the Satellite Home Viewer Improvement Act
(SHVIA). While the legislation adopts rate increase
adjustments for content owners and allows satellite companies
to provide ``distant network signals'' to subscribers who
cannot receive ``over-the-air'' broadcast signals, it fails
to include the ``digital white area'' provision adopted by
the Senate Commerce Committee which would accelerate the
digital television transition. Without this provision,
millions of Americans, especially consumers in rural areas,
will have to wait even longer for digital and High-Definition
television and be denied the world of innovation derived from
freed-up spectrum.
H.R. 4501, approved by the Committee on Energy & Commerce,
did not include an important provision to speed up the return
of tens of billions of dollars of analog spectrum currently
held by broadcasters. Despite the fact that Congress years
ago set a 2006 deadline for broadcasters to return the analog
spectrum (in exchange for tens of billions of dollars of free
digital spectrum), it is clear that deadline will not be met.
As a result, consumers in more than 39 million U.S.
households (about 36 percent nationwide) will continue to be
deprived of receiving all their network signals in digital.
As taxpayer groups, consumer advocates and technology
leaders, our coalition has

[[Page H8224]]

strongly supported proposals to allow direct broadcast
satellite providers to offer a distant digital network signal
into local television markets where broadcasters are not
transmitting a full-power digital signal. We believe such a
measure is essential to provide market-based pressure on
local broadcasters to complete the digital transition and
return the public's valuable analog spectrum for other uses.
The satellite home viewer reauthorization legislation is
the vehicle to address this issue. The Senate Commerce
Committee, in its version of the satellite legislation,
adopted a ``digital white area'' provision that will help
provide the necessary impetus to speed up the digital
transition and serve the needs of millions of television
viewers who are disadvantaged by the current situation. In
contrast, the House Commerce Committee bill requests a
perfunctory report on the matter without any immediate
remedy.
As such an important issue for consumers and the economy,
we strongly urge that a digital white area provision be added
to the House legislation. We appreciate your consideration of
our request, and we look forward to continuing to work with
the Congressional leadership, the committee chairmen and
ranking members to further improve this legislation.
Sincerely,
Grover Norquist, Americans for Tax Reform; The Honorable
Andrea Seastrand, The California Space Authority; Tom Schatz,
Council for Citizens Against Government Waste; Charles Ergen,
EchoStar Communications Corporation; George Landrith,
Frontiers of Freedom; Andrew Jay Schwartzman, Media Access
Project; Gigi Sohn, Public Knowledge; Richard DalBello,
Satellite Broadcasting and Communications Association; Karen
Kerrigan, Small Business Survival Committee.
Mr. GONZALEZ. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. BERMAN. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Whitfield). The question is on the
motion offered by the gentleman from Texas (Mr. DeLay) that the House
suspend the rules and pass the bill, H.R. 4518, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A Bill to extend
the statutory license for secondary transmissions by satellite carriers
of transmissions by television broadcast stations under title 17,
United States Code, and to amend the Communications Act of 1934 with
respect to such transmissions, and for other purposes.''.
A motion to reconsider was laid on the table.

____________________