[Congressional Record Volume 159, Number 160 (Tuesday, November 12, 2013)]
[Senate]
[Pages S7953-S7961]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. ROCKEFELLER:
S. 1680. A bill to amend the Communications Act of 1934 to increase
consumer choice and competition in the online video programming
distribution marketplace, and for other purposes; to the Committee on
Commerce, Science, and Transportation.
Mr. ROCKEFELLER. Mr. President, two decades ago, Congress passed the
Cable Television and Consumer Protection Act of 1992 in part to stop
cable companies from leveraging their market power to block competition
from satellite television providers. Congress did so with the
realization that market forces alone did not act to create true
competition in video services, mainly because the entrenched interests
held dominant control over the content necessary for new services to
compete effectively. As a result, regulation in the name of competition
was necessary to empower consumers and facilitate the development of
new innovative video services. Twenty years later, DirecTV and Dish
Network have become the second and third largest pay TV providers in
the Nation, respectively.
The legislation that I am introducing today, the Consumer Choice in
Online Video Act, builds upon the legacy, and the promise, of the 1992
Cable Act. More needs to be done.
Simply put, the video marketplace today, even with a variety of cable
and satellite television providers, still is one of ever-escalating
rates and of limited choice in terms of programming packages. Consumers
find themselves paying more and more each year for their pay TV
service, and those yearly rate increases often far exceed inflation.
Even though consumers have at their fingertips hundreds of channels of
programming, most homes watch very few of those channels and would
prefer to have more choice in what they pay for each month.
We have all heard the familiar complaint that we have five hundred
channels, but there is nothing to watch. My
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legislation aims to enable the ultimate a la carte--to give consumers
the ability to watch the programming they want to watch, when they want
to watch it, how they want to watch it, and pay only for what they
actually watch.
Key to that goal is online video. The Internet has revolutionized
many aspects of American life, from the economy, to health care, to
education. It has proven to be a disruptive and transformative
technology. It has forever changed the way Americans live their lives.
Consumers now use the Internet, for example, to purchase airline
tickets, to reserve rental cars and hotel rooms, to do their holiday
shopping. The Internet gives them the ability to identify prices and
choices and offers an endless supply of competitive offerings that
strive to meet individual consumer's needs.
But that type of choice, with full transparency and real competition,
has not been fully realized in today's video marketplace. The core
policy question is how to nurture new technologies and services, and
make sure incumbents cannot simply perpetuate the status quo of ever-
increasing bills and limited choice through exercise of their market
power.
Broadband-based online video today stands at a crossroads. It
promises to become the video delivery platform that can truly bring
consumer-centric video services to the marketplace. Consumers clearly
have an appetite for online video and the choice and flexibility it
affords, and innovative companies have risen to tap into that demand.
But their ability to fully compete and maximize the benefits of
broadband-based online video have been compromised.
Consumers do not really care whether they access their favorite video
programming through a traditional cable line, fiber, satellite, or
broadband wireless technology. What they are most frustrated by today,
though, is that some cable or broadcast programming is sometimes not
accessible in an ``over the top'' online format, or that their
experience with online video is somehow degraded. And disturbing
reports suggest that one of the reasons that the consumers have these
experiences is due to anticompetitive activity on the part of incumbent
media companies and broadband providers.
As both the Federal Communications Commission, FCC, and the
Department of Justice have noted, the nature of broadband-delivered
video makes it uniquely susceptible to anticompetitive activity. Online
video distributors do not own their distribution platform, and their
viability depends on the ability to acquire sought-after programming
from content companies on competitive terms. Yet, given their
relationships with both content companies and Internet service
providers, traditional cable and satellite providers have the incentive
and ability to try to limit the growth of innovative, competitive
online video distribution companies.
Press reports make clear that video marketplace incumbents are using
their market positions to limit online video companies from entering
the market and competing on a level playing field. Incumbent media
companies, who control both the delivery platform and the content
necessary for a robust online video service, are putting up barriers to
protect their current services from new competition. Other reports
indicate that some pay-TV operators are offering incentives to media
companies that agree to withhold content from Web-based entertainment
services.
My legislation would bar these and other anticompetitive practices in
the online video marketplace, while offering regulatory parity to
online video services that offer services similar to those presently
provided by cable and satellite companies. It also would remedy
lingering issues surrounding the regulatory treatment of online video
services by the FCC. Finally, the bill would empower consumers with
more information about their broadband Internet service, and give the
FCC the authority to oversee the use of metered broadband Internet
billing practices that could be used to stifle use of data-intensive
online video services.
I offer this legislation to begin an overdue conversation about the
best way that Congress can protect and promote a consumer-centric
online video marketplace. I recognize that this bill is not perfect.
That is why I invite discussion and comments from my colleagues and
others on ways to improve it as we move forward. While I am sure that
we can find ways to improve this legislation, we should not stand aside
in the name of the free market while the innovation and choice that can
come from online video for West Virginia and around the country is
stifled.
It is time for Congress to act to maximize the promise of today's
online world, and improve the consumer experience in the video
marketplace. Consumers must be able to benefit from online video's
promise of decreased costs for video services, more choice over the
types of programming that their families consume, and higher-quality
video content that educates and entertains. I strongly believe that the
breathing room provided to online video distributors by my legislation
is one of the keys to fostering a consumer-centric revolution in the
video marketplace.
Mr. President I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1680
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Consumer
Choice in Online Video Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; statement of policy.
Sec. 3. Definitions.
TITLE I--BILLING FOR INTERNET SERVICE
Sec. 101. Consumer protections.
TITLE II--ONLINE VIDEO DISTRIBUTION ALTERNATIVES
Sec. 201. Protections for online video distributors.
Sec. 202. Federal Communications Commission report on peering.
TITLE III--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS
Sec. 301. Non-facilities based multichannel video programming
distributors.
TITLE IV--MISCELLANEOUS
Sec. 401. Technical and conforming amendments.
Sec. 402. Provisions as complementary.
Sec. 403. Applicability of antitrust laws.
Sec. 404. Severability.
SEC. 2. FINDINGS; STATEMENT OF POLICY.
(a) Findings.--Congress makes the following findings:
(1) Online video distribution has the potential to increase
consumer choice in video programming, lower prices for video
services, bring innovative services to the video distribution
marketplace, and disrupt the traditional multichannel video
distribution marketplace.
(2) Evolving consumer demand, improving technology, and
increased choice of viewing devices can make online video
distributors stronger competitors to multichannel video
programming distributors for an increasing number of viewers.
(3) Unlike traditional multichannel video programming
distributors, online video distributors do not own
distribution facilities and are dependent upon Internet
service providers (many of which are affiliated with
multichannel video programming distributors) for the delivery
of their content to viewers.
(4) Internet service providers' management and pricing of
broadband services affects online video distributors. Because
online video distribution consumes significant amounts of
Internet bandwidth, Internet service providers' use of usage-
based billing practices can negatively impact the competitive
position of online video distributors and the appeal of their
services to consumers.
(5) Internet service providers that are affiliated with a
multichannel video programming distributor or an online video
distributor have an increased incentive to degrade the
delivery of, or block entirely, traffic from the websites of
other online video distributors, or speed up or favor access
to the content and aggregation websites of their affiliates,
because online video distributors pose a threat to those
affiliates' video programming distribution businesses.
(6) Similarly, multichannel video programming distributors
who are affiliated with Internet service providers, online
video distributors who are affiliated with Internet service
providers, or video programming vendors with significant
market power have the incentive and ability to use their
competitive position to engage in unfair methods of
competition meant to hinder competition from online video
distributors.
(7) Growth of online video distribution alternatives also
will depend, in part, on the distributor's ability to acquire
programming from content producers. Without access to content
on competitive terms, an online
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video distributor suffers a distinct competitive harm.
(8) Some traditional multichannel video programming
distributors have admitted to taking steps to limit the
ability of online video distributors to access content or
otherwise effectively compete in the video distribution
marketplace.
(9) Traditional multichannel video programming distributors
and even other online video distributors have the incentive
and ability to convince their video programming vendor
partners not to sell content to online video distributors or
to sell content to them at competitively-disadvantageous
prices, terms, and conditions. They also have the incentive
and ability to retaliate against a video programming vendor
that sells content to an online video distributor.
(10) Traditional multichannel video programming
distributors have the incentive and ability to use their
relationships with manufacturers of television sets, set-top
boxes, and other customer premises equipment to favor their
own services over offerings from online video distributors.
(11) There is a substantial governmental and First
Amendment interest in--
(A) requiring Internet service providers to provide
consumers with accurate information about their Internet
service, and to ensure that data usage monitoring systems are
accurate, effective, and not used for an anticompetitive
purpose;
(B) promoting a diversity of views provided through
multiple technology media;
(C) promoting the development of online video distribution
platforms and fair competition amongst all distributors and
vendors of video programming;
(D) preventing Internet service providers that are
affiliated with a multichannel video programming distributor
or an online video distributor from discriminating against
unaffiliated content and distributors in its exercise of
control over consumers' broadband connections;
(E) encouraging and protecting consumer choice and
innovation in online video distribution, including with
respect to distribution of broadcast television content; and
(F) providing consumers with the ability to choose to
receive local broadcast television content from various
markets.
(b) Statement of Policy.--It is the policy of the Congress
that--
(1) consumers should be fully informed about the terms and
conditions related to the purchase of Internet service from
an Internet service provider;
(2) usage-based billing systems used by an Internet service
provider should not be used in a way that harms development
and use of high-bandwidth consuming Internet applications and
services that might compete with that Internet service
provider's own services;
(3) the availability of a diversity of views and
information should be promoted to the public through various
video programming distribution platforms, including those
providing service by utilizing the Internet or other IP-based
transmission paths;
(4) existing multichannel video programming distributors
and video programming vendors should not have or exercise
undue market power with respect to online video distributors;
and
(5) Internet service providers should not hinder through
anticompetitive behavior the ability of online video
distributors to provide services to their subscribers.
SEC. 3. DEFINITIONS.
In this Act:
(1) Broadcast television licensee.--The term ``broadcast
television licensee'' means the licensee of a full-power
television station or a low-power television station.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Internet service provider.--The term ``Internet service
provider'' means any provider of Internet service to an end
user, regardless of the technology used to provide that
service.
(4) Non-facilities based multichannel video programming
distributor.--The term ``non-facilities based multichannel
video programming distributor'' means an online video
distributor that has made the election permitted under
section 672.
(5) Online video distributor.--The term ``online video
distributor'' means any entity, including a non-facilities
based multichannel video programming distributor, that--
(A) has its principal place of business in the United
States; and
(B) distributes video programming in the United States by
means of the Internet or another IP-based transmission path
provided by a person other than that entity.
(6) Television network.--The term ``television network''
means a television network in the United States which offers
an interconnected program service on a regular basis for 15
or more hours per week to at least 25 affiliated broadcast
stations in 10 or more States.
(7) Usage-based billing.--
(A) In general.--The term ``usage-based billing'' means a
system of charging a consumer for Internet service or the use
of an IP-based transmission path provided by an Internet
service provider or other entity that is based upon the
amount of data the consumer uses over a period of time.
(B) Inclusions.--The term ``usage-based billing''
includes--
(i) imposing a cap on the amount of data the consumer can
use based on the price the consumer is willing to pay for
service;
(ii) charging a consumer varying amounts each billing cycle
based on a per-megabyte, per-gigabyte, or similar rate; and
(iii) establishing different tiers of prices based on the
amount of data the consumer elects to consume in a billing
cycle, whether or not the amount acts as a cap on the
consumer's service.
(8) Video programming.--The term ``video programming''
means programming provided by, or generally considered
comparable to programming provided by, a television broadcast
station, whether or not such programming is delivered using a
portion of the electromagnetic frequency spectrum.
(9) Video programming vendor.--The term ``video programming
vendor'' means a person engaged in the production, creation,
or wholesale distribution of video programming for sale.
TITLE I--BILLING FOR INTERNET SERVICE
SEC. 101. CONSUMER PROTECTIONS.
Title VII of the Communications Act of 1934 (47 U.S.C. 601
et seq.) is amended--
(1) by inserting before section 701 the following:
``PART I--GENERAL PROVISIONS''; and
(2) by adding at the end the following:
``PART II--INTERNET SERVICES BILLING
``SEC. 721. CONSUMER PROTECTIONS.
``(a) General Disclosures.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations requiring Internet
service providers to disclose certain information that will
assist a consumer in making an informed decision about the
purchase of Internet service.
``(2) Requirements.--The regulations under paragraph (1)
shall require, at a minimum, that--
``(A) any advertising related to Internet service include
plain language disclosure of any information the Commission
considers necessary for a consumer to make an informed
decision about the purchase of that Internet service;
``(B) an Internet service provider provide a plain language
disclosure to a consumer prior to the purchase of Internet
service that includes--
``(i) the length of the contract;
``(ii) the terms of renewal;
``(iii) a projected monthly bill, including all fees and
costs associated with the Internet service;
``(iv) if the consumer is receiving promotional pricing for
service, a projected monthly bill for service once that
promotional pricing period has ended;
``(v) the procedures to cancel the Internet service,
including any policies related to early termination fees;
``(vi) the average actual data transmission speeds,
including both upload and download speeds;
``(vii) any policies or practices regarding network
management, including limiting service speeds or prioritizing
content; and
``(viii) any other information that the Commission
considers necessary for the consumer to make an informed
decision about the purchase of the Internet service.
``(b) Special Disclosures for Usage-based Billing.--
``(1) In general.--As part of the rulemaking under
subsection (a), the Commission shall promulgate regulations
to protect consumers in the use of usage-based billing by
Internet service providers.
``(2) Plain language disclosure of terms and conditions.--
``(A) In general.--The regulations under paragraph (1)
shall require an Internet service provider to provide a plain
language disclosure of all terms and conditions associated
with its use of usage-based billing to a consumer prior to
the purchase of Internet service.
``(B) Contents.--The plain language disclosure under this
paragraph shall include--
``(i) an explanation of how usage-based billing will be
applied to the consumer;
``(ii) a complete list of the tiers of service;
``(iii) comparisons of how much data of varying types,
including video programming in standard and high-definition,
the consumer would be able to consume each month under each
tier;
``(iv) the procedure for providing the consumer the
notifications under paragraph (4);
``(v) an explanation of the consequences, if any, to a
consumer for exceeding the consumer's data usage amount,
including any fees that may be charged and any options a
consumer may have to avoid those fees;
``(vi) if the Internet service provider provides a tool for
a consumer to monitor the consumer's data usage, a
description of the tool and how to use it;
``(vii) the appeals procedure under paragraph (5); and
``(viii) any other information that the Commission
considers necessary to protect consumers in the use of usage-
based billing by Internet service providers.
``(3) Monthly disclosure of data usage.--
``(A) Data usage.--An Internet service provider that uses
usage-based billing shall provide a plain language disclosure
to a consumer of the consumer's data usage during each
billing cycle as part of the consumer's bill.
``(B) Data usage trends.--An Internet service provider that
uses usage-based billing shall include in the consumer's bill
information documenting the consumer's data usage over the
prior 6 monthly bills or over
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a period beginning on the date that the consumer contracted
for the Internet service, whichever is shorter.
``(4) Notifications.--
``(A) In general.--An Internet service provider that uses
usage-based billing shall provide to a consumer notification
of the amount of data the consumer has remaining at the
midpoint of a billing cycle, and at any other increments the
Commission finds are in the public interest.
``(B) Form.--The Commission may determine the form of the
notifications required under this paragraph.
``(5) Consumer appeals.--Each Internet service provider
that uses usage-based billing shall establish an appeals
procedure for a consumer to obtain more detailed information
about the consumer's Internet data usage and to challenge the
Internet service provider's determination of that consumer's
data usage.
``(c) Truth-in-Billing for Internet Services.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall update its truth-in-billing rules to extend
the rules to Internet service providers.
``(2) Bundled services.--As part of the rulemaking under
paragraph (1), the Commission shall consider whether it is in
the public interest to establish truth-in-billing rules for
bundled communications service packages.
``(d) Exemption.--The Commission may exempt an Internet
service provider serving 20,000 or fewer subscribers from the
requirements of this section
``(e) Special Consideration.--The Commission may take into
account the special considerations in an Internet service
provider's delivery technology, including wireless, when
implementing this section.
``SEC. 722. CERTIFICATION OF DATA USAGE MONITORING SYSTEMS.
``(a) Independent Certification Required.--
``(1) In general.--An Internet service provider may not use
a data usage monitoring system as part of usage-based billing
unless the data usage monitoring system is certified under
this section.
``(2) Development of standards.--The Commission, after
consultation with the National Institute of Standards and
Technology, shall develop standards to ensure that a data
usage monitoring system accurately measures a consumer's
usage of data.
``(3) Certification process.--The Commission may certify a
data usage monitoring system for use in usage-based billing
if it determines that the data usage monitoring system
accurately measures consumer data usage and is in material
compliance with the standards under paragraph (2).
``(4) Permissible delegation.--The Commission may designate
1 or more impartial third parties to conduct the
certification of a data usage monitoring system under this
section.
``(b) Periodic Review.--The Commission shall determine how
to ensure that an Internet service provider's data usage
monitoring system remains in compliance with this section.
``(c) Definition of Data Usage Monitoring System.--In this
section, the term `data usage monitoring system' means a
system of monitoring and calculating the amount of data a
user has consumed--
``(1) while accessing the Internet;
``(2) while using hardware, software, or applications that
consume data transmitted over the Internet; or
``(3) while accessing another IP-based transmission path
provided by an Internet service provider or another entity.
``(d) Penalties.--The Commission is authorized to assess
penalties against any Internet service provider that fails to
comply with this section.
``(e) Rulemaking.--
``(1) In general.--The Commission shall promulgate
regulations to implement this section not later than 1 year
after the date of enactment of the Consumer Choice in Online
Video Act.
``(2) Exemption.--The regulations under paragraph (1) may
provide an exemption from the regulations for an Internet
service provider serving 20,000 or fewer subscribers.
``(3) Special considerations.--The Commission may take into
account the special considerations in an Internet service
provider's delivery technology, including wireless, when
implementing this section.''.
TITLE II--ONLINE VIDEO DISTRIBUTION ALTERNATIVES
SEC. 201. PROTECTIONS FOR ONLINE VIDEO DISTRIBUTORS.
Title VI of the Communications Act of 1934 (47 U.S.C. 521
et seq.) is amended by adding at the end the following:
``PART VI--ONLINE VIDEO DISTRIBUTORS
``SEC. 661. DEFINITIONS.
``In this part:
``(1) Affiliated with.--For purposes of sections 663, 664,
and 667, the term `affiliated with' means that the Internet
service provider, multichannel video programming distributor,
online video distributor, or video programming vendor, as
appropriate, directly or indirectly, is owned or controlled
by, owns or controls, or is under common ownership or control
with another Internet service provider, multichannel video
programming distributor, online video distributor, or video
programming vendor, as appropriate. For purposes of this
paragraph, the term `own' means to own an equity interest, or
the equivalent thereof, of more than 10 percent.
``(2) Video programming.--The term `video programming'
means programming provided by, or generally considered
comparable to programming provided by, a television broadcast
station, whether or not such programming is delivered using a
portion of the electromagnetic frequency spectrum.
``SEC. 662. ENHANCEMENT OF CONSUMER CHOICE IN ONLINE VIDEO.
``The purposes of this part are
``(1) to promote the public interest, convenience, and
necessity by increasing competition, innovation, and
diversity in the video programming marketplace;
``(2) to enhance consumer access to online video
distribution platforms and consumer choice in online video
programming; and
``(3) to increase the availability of video programming on
all platforms, including Internet-based platforms.
``SEC. 663. DEVELOPMENT OF COMPETITION AND DIVERSITY IN
ONLINE VIDEO DISTRIBUTION.
``(a) Prohibition.--It shall be unlawful for a designated
distributor to engage in unfair methods of competition or
unfair or deceptive acts or practices, the purpose or effect
of which are to hinder significantly or prevent an online
video distributor from providing video programming to
consumers, including over any platform or device capable of
delivering that online video distributor's content to
consumers.
``(b) Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations to implement this
section.
``(2) Minimum contents.--At a minimum, the regulations
under this section shall--
``(A) specify the conduct that constitutes a prima facie
violation of subsection (a); and
``(B) establish effective safeguards to prevent a
designated distributor from--
``(i) unduly or improperly influencing the decision of any
other entity to make a television set or other customer
premises equipment incompatible with the services provided by
any online video distributor;
``(ii) unduly or improperly using its own customer premises
equipment to discriminate against, or otherwise favor its own
services over, the service provided by any online video
distributor;
``(iii) unduly or improperly influencing the decision of
any other entity to sell, or the prices, terms, and
conditions of the sale of, video programming to any online
video distributor; and
``(iv) providing an incentive to any entity in an attempt
to deny video programming to an online video distributor.
``(c) Exceptions.--
``(1) In general.--Subject to paragraph (2), a designated
distributor shall not be prohibited from--
``(A) imposing reasonable requirements for
creditworthiness, offering of service, and financial
stability and standards regarding character and technical
quality;
``(B) establishing different prices, terms, and conditions
to take into account economies of scale, cost savings, or
other direct and legitimate economic benefits reasonably
attributable to the number of subscribers served by the
online video distributor; and
``(C) imposing reasonable requirements to ensure the
security of the video programming being provided to the
online video distributor, including means to authenticate the
right of the distributor's subscribers to access the
programming.
``(2) Limitations.--An exception under paragraph (1)--
``(A) shall be related to the substantial, real, and
legitimate business concerns of the designated distributor;
and
``(B) may not be used in an anticompetitive manner.
``(d) Definition of Designated Distributor.--
``(1) In general.--In this section, the term `designated
distributor' means--
``(A) a multichannel video programming distributor
affiliated with an Internet service provider;
``(B) an online video distributor affiliated with an
Internet service provider; or
``(C) a video programming vendor with significant market
power.
``(2) Significant market power.--The Commission shall
establish rules for determining whether a video programming
vendor has significant market power under paragraph (1)(C).
``SEC. 664. ACCESS TO VIDEO PROGRAMMING.
``(a) Prohibitions.--It shall be unlawful for a
multichannel video programming distributor or an online video
distributor--
``(1) to include in a contract with any video programming
vendor a provision that serves as a substantial disincentive
for the video programming vendor to sell its content to an
online video distributor;
``(2) to use any practice, understanding, arrangement, or
other agreement with a video programming vendor that has the
effect of causing the video programming vendor to face a
substantial disincentive to sell its content to an online
video distributor; or
``(3) to enter into a contract with a video programming
vendor that has the effect of preventing an online video
distributor from making the video programming vendor's
content available on any platform or device capable of
delivering that distributor's content to its subscribers.
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``(b) Contract Limitations.--A multichannel video
programming distributor or an online video distributor may
not include in any contract with a video programming vendor
any provision that requires the multichannel video
programming distributor or online video distributor, as
applicable, to be treated in material parity with other
similarly situated multichannel video programming
distributors or online video distributors with regard to
pricing or other terms and conditions of carriage of video
programming.
``(c) Retaliation Prohibited.--A multichannel video
programming distributor or an online video distributor may
not retaliate against--
``(1) any video programming vendor for making its video
programming available to an online video distributor;
``(2) any online video distributor for obtaining video
programming from a video programming vendor; or
``(3) any entity for exercising a right under this Act.
``(d) Exception.--Notwithstanding subsection (a) or any
other provision of this part, a multichannel video
programming distributor or an online video distributor may
enter into an exclusive contract with a video programming
vendor for video programming provided by that video
programming vendor if the contract does not exceed the limits
or violate the prohibitions under subsection (e).
``(e) Public Interest Limitations on Exclusive Contracts.--
``(1) In general.--The Commission shall adopt limits on--
``(A) the ability of a multichannel video programming
distributor or an online video distributor to enter into any
contract for video programming that includes an exclusivity
provision that substantially deters the development of an
online video distribution alternative; and
``(B) the ability of an online video distributor to enter
into any contract for video programming that includes an
exclusivity provision that substantially deters the
development of an online video distribution alternative.
``(2) Prohibited contracts.--The Commission shall
prohibit--
``(A) a multichannel video programming distributor from
entering into an exclusive contract with a video programming
vendor that is affiliated with the multichannel video
programming distributor; and
``(B) an online video distributor from entering into an
exclusive contract with a video programming vendor that is
affiliated with the online video distributor.
``(3) Limitations on other exclusive contracts for video
programming.--
``(A) In general.--The Commission shall establish criteria
for determining whether an exclusive contract for programming
substantially deters the development of an online video
distribution alternative.
``(B) Considerations.--In establishing the criteria under
subparagraph (A), the Commission shall consider the totality
of the circumstances surrounding the contract, including--
``(i) the duration of the exclusivity period;
``(ii) the effect of the exclusive contract on capital
investment in the production and distribution of video
programming;
``(iii) the time period after initial first-day
distribution of video programming to consumers when the
multichannel video programming distributor or the online
video distributor is granted exclusive access to distribute
the programming; and
``(iv) the likelihood that the exclusive contract will
enhance diversity in programming on video distribution
platforms.
``(f) Online Distribution of Content by a Video Programming
Vendor.--
``(1) In general.--A multichannel video programming
distributor or an online video distributor may not enter into
an agreement that limits or prohibits a video programming
vendor from making its video content available to consumers
free over the Internet.
``(2) Exception.--The prohibition under paragraph (1) shall
not apply if the duration of the agreement is 30 days or
less.
``(g) Prices, Terms, and Conditions for Programming.--A
video programming vendor may establish different prices,
terms, and conditions for its video programming if, taking
into account economies of scale, cost savings, or other
direct and legitimate economic benefits that are reasonably
attributable to the number of subscribers served by an online
video distributor, the prices, terms, and conditions--
``(1) are related to substantial, real, and legitimate
business concerns of the video programming vendor; and
``(2) are not used in an anticompetitive manner.
``(h) Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations to specify particular
conduct that is prohibited by this section.
``(2) Minimum contents.--The regulations under this section
shall establish, at a minimum--
``(A) effective safeguards to prevent any activity
prohibited by this section; and
``(B) complaint and contract review procedures to
facilitate the Commission's ability to determine if a
multichannel video programming distributor, a video
programming vendor, or an online video distributor has
violated this section.
``(i) Existing Contracts.--
``(1) In general.--Subject to paragraph (2), nothing in
this section shall affect any contract, understanding, or
arrangement that was entered into on or before December 1,
2013.
``(2) Exceptions.--No contract, understanding, or
arrangement entered into on or before December 1, 2013, that
violates this section shall be enforceable by any person
after the date that is 3 years after the date of enactment of
the Consumer Choice in Online Video Act.
``(3) Limitation on renewals.--A contract, understanding,
or arrangement that was entered into on or before December 1,
2013, but that is renewed or extended after the date of
enactment of the Consumer Choice in Online Video Act shall
not be exempt under paragraph (1).
``SEC. 665. FOSTERING ACCESS TO VIDEO PROGRAMMING.
``(a) In General.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall commence a proceeding to determine the
additional steps it should take, in the public interest, to
foster the ability of online video distributors to gain
access to video programming, offer innovative services, and
compete with multichannel video programming distributors.
``(b) Limitation.--The Commission shall not compel a video
programming vendor to sell its video programming to an online
video distributor as part of any rules adopted under this
section.
``SEC. 666. BROADCAST TELEVISION LICENSEES AND TELEVISION
NETWORKS.
``(a) Duty to Negotiate.--It shall be unlawful for a
broadcast television licensee or television network--
``(1) to refuse to negotiate with an online video
distributor for carriage of the broadcast television
licensee's or the television network's content, as
applicable; or
``(2) to place any restriction on an online video
distributor's ability to make the broadcast television
licensee's or the television network's content, as
applicable, available on any platform or device that is
capable of delivering the online video distributor's content
to its subscribers.
``(b) Refusal to Negotiate; Commission Determination.--The
Commission shall determine what constitutes a refusal to
negotiate under subsection (a). The Commission may require a
broadcast television licensee or television network to engage
in good faith negotiations with an online video distributor.
The Commission shall define good faith for purposes of this
subsection.
``(c) Online Retransmission of In-Market Broadcast
Signals.--
``(1) Signal parity.--
``(A) In general.--It shall be unlawful for a broadcast
television licensee to provide an over-the-air signal that
differs from a retransmission of that signal provided to a
multichannel video programming distributor or an online video
distributor.
``(B) Exception.--Subparagraph (A) shall not apply if--
``(i) the variation in the 2 signals consists of a change
to 1 or more commercial advertisements of not more than 60
seconds in duration embedded in a broadcast television
licensee's signal; and
``(ii) the broadcast television licensee is not using the
variation under clause (i) to increase the overall amount of
advertising time in its over-the-air signal.
``(2) Antenna rental services.--
``(A) In general.--Notwithstanding any other provision of
this Act, except subparagraph (C), an entity may rent to a
consumer access to an individual antenna to view over-the-air
broadcast television signals transmitted from that antenna--
``(i) directly to the consumer over the Internet or another
IP-based transmission path; or
``(ii) to an individual data storage system, including an
online remote data storage system, for recording and then
made accessible to that consumer through the Internet or
another IP-based transmission path.
``(B) Retransmission consent fees.--An antenna rental
service described under subparagraph (A) shall be exempt from
paying retransmission consent fees under section 325 of this
Act to any broadcast television station whose signal is
received by the individual antenna and retransmitted to the
subscriber.
``(C) Conditions of rental services.--An antenna rental
service described under subparagraph (A) shall--
``(i) only provide a subscriber with access to over-the-air
broadcast television signals received by an individual
antenna located in the same designated market area (as
defined in section 671 of this Act) in which that subscriber
resides; and
``(ii) make available to a subscriber all over-the-air
broadcast signals that are received by the individual antenna
rented by that subscriber, unless a signal is of such poor
quality that it cannot be transmitted to the consumer in a
reasonably viewable form.
``(d) Limits in Existing Programming and Affiliation
Contracts.--
``(1) In general.--It shall be unlawful for any entity
selling or otherwise providing video programming to be
transmitted by a broadcast television licensee or television
network to include in any contract, agreement, understanding,
or arrangement with that licensee or network a limitation on
the ability of that licensee or network to comply with the
requirements of this section.
``(2) Existing contracts.--
``(A) In general.--Subject to subparagraph (B), nothing in
this section shall affect any
[[Page S7958]]
contract, understanding, or arrangement that was entered into
on or before December 1, 2013.
``(B) Exceptions.--No contract, understanding, or
arrangement entered into on or before December 1, 2013, that
violates this section shall be enforceable by any person
after the date that is 3 years after the date of enactment of
the Consumer Choice in Online Video Act.
``(C) Limitation on renewals.--A contract, understanding,
or arrangement that was entered into on or before December 1,
2013, but that is renewed or extended after the date of
enactment of the Consumer Choice in Online Video Act shall
not be exempt under subparagraph (A).
``(e) Regulations.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations to implement this
section. The Commission shall not compel a broadcast
television licensee or television network to sell its video
programming to an online video distributor as part of any
rules adopted under this section.
``SEC. 667. CONSUMER ACCESS TO CONTENT.
``(a) In General.--It shall be unlawful for a designated
Internet service provider to engage in unfair methods of
competition or unfair or deceptive acts or practices, the
purpose or effect of which are to hinder significantly or to
prevent an online video distributor from providing video
programming to a consumer.
``(b) Regulations.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations to specify particular
conduct that is prohibited by subsection (a). The
Commission's regulations under this section shall ensure, at
a minimum, that a designated Internet service provider does
not--
``(1) block, degrade, or otherwise impair any content
provided by an online video distributor;
``(2) unreasonably discriminate in transmitting the content
of an unaffiliated online video distributor over the
designated Internet service provider's network;
``(3) provide benefits in the transmission of the video
content of any company affiliated with the Internet service
provider through specialized services or other means, or
otherwise leverage its ownership of the physical delivery
architecture to benefit that affiliated company in a way that
has the effect of harming competition from an unaffiliated
online video distributor; or
``(4) use billing systems, such as usage-based billing, in
a way that deters competition from unaffiliated online video
distributors that may be in competition with the Internet
service provider's or its affiliate's services.
``(c) Definition of Designated Internet Service Provider.--
In this section, the term `designated Internet service
provider' means an Internet service provider that is
affiliated with a multichannel video programming distributor,
an online video distributor, or a video programming vendor.
``SEC. 668. BLOCKING CONSUMER ACCESS TO ONLINE VIDEO
PROGRAMMING.
``(a) In General.--No video programming vendor that has
made available its video programming to consumers online may
restrict access to that online video programming for a
subscriber of a multichannel video programming distributor or
its affiliate, or an online video distributor or its
affiliate, during the time that vendor is involved in a
dispute with such distributor.
``(b) Exception.--
``(1) In general.--If a video programming vendor requires a
consumer to purchase access to its online video programming
through a contract with a multichannel video programming
distributor or an online video distributor then that vendor
may restrict access to that online video programming during
the time that the vendor is involved in a dispute with that
distributor.
``(2) Limitation.--The exception under this subsection
shall apply only to a subscriber to video services provided
by a multichannel video programming distributor or an online
video distributor involved in the dispute and not to a
subscriber to any other service provided by that distributor
or its affiliate.
``(c) Remedies.--
``(1) In general.--Any entity that is aggrieved by a
violation of this section may bring a civil action in a
United States district court or in any other court of
competent jurisdiction.
``(2) Authority.--The court may--
``(A) grant a temporary or final injunction on such terms
as it may deem reasonable to prevent or restrain violations
of this section;
``(B) award any damages it deems appropriate; and
``(C) direct the recovery of full costs, including awarding
reasonable attorneys' fees to an aggrieved party who
prevails.
``(d) Definitions.--In this section:
``(1) Available online.--The term `available online' means
both available over the Internet and through applications,
software, or other similar services on a mobile device.
``(2) Dispute.--The term `dispute' includes--
``(A) a dispute over carriage of the programming provided
by a video programming vendor to a multichannel video
programming distributor or online video distributor; and
``(B) a dispute over carriage of the programming provided
by a television licensee or television network under section
325(b) of this Act.
``(3) Entity that is aggrieved.--The term `entity that is
aggrieved' includes--
``(A) a consumer whose access to online video programming
has been restricted in violation of this section; and
``(B) a multichannel video programming distributor or its
affiliate, or an online video distributor or its affiliate,
that has had a subscriber's access to online video
programming restricted in violation of this section.
``SEC. 669. REMEDIES AND ADJUDICATIONS.
``(a) Adjudicatory Proceedings.--Any online video
distributor aggrieved by conduct that it alleges constitutes
a violation of this part, or the regulations of the
Commission under this part, may commence an adjudicatory
proceeding at the Commission.
``(b) Remedies.--
``(1) Remedies authorized.--
``(A) Interim remedies.--The Commission may authorize
interim remedies during the pendency of a complaint.
``(B) Appropriate remedies.--Upon completion of an
adjudicatory proceeding under this section, the Commission
shall have the power to order appropriate remedies,
including, if necessary, the power to establish prices,
terms, and conditions of sale of programming to the aggrieved
online video distributor.
``(2) Additional remedies.--The remedies provided in
paragraph (1) are in addition to and not in lieu of the
remedies available under title V or any other provision of
this Act.
``(c) Procedures.--In promulgating regulations to implement
this part, the Commission shall--
``(1) provide for an expedited review of any complaint made
under this part, including a procedural timeline to conclude
the review of each complaint not later than 180 days after
the date the complaint is filed;
``(2) establish procedures for the Commission to collect
any data, including the right to obtain copies of all
contracts and documents reflecting any practice,
understanding, arrangement, or agreement alleged to violate
this part, as the Commission requires to carry out this part;
and
``(3) provide for penalties to be assessed against any
person filing a frivolous complaint under this part.''.
SEC. 202. FEDERAL COMMUNICATIONS COMMISSION REPORT ON
PEERING.
(a) In General.--The Commission shall study--
(1) the status of peering, transit, and interconnection
agreements related to the transport and delivery of content
over the Internet and other IP-based transmission paths; and
(2) what impact the agreements under paragraph (1) or
disputes about the agreements under paragraph (1) have on
consumers and competition with respect to online video.
(b) Report.--Not later than 3 years after the date of
enactment of this Act, the Commission shall report the
findings of the study under subsection (a) to the Committee
on Commerce, Science, and Transportation of the Senate and
the Committee on Energy and Commerce of the House of
Representatives.
TITLE III--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS
SEC. 301. NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS.
Title VI of the Communications Act of 1934 (47 U.S.C. 521
et seq.), as amended by title II of this Act, is further
amended by adding at the end the following:
``PART VII--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS
``SEC. 671. DEFINITIONS.
``In this part:
``(1) Designated market area.--The term `designated market
area' means a designated market area as determined by Nielsen
Media Research or by any successor system of dividing
broadcast television licensees into local markets that the
Commission determines is equivalent to the designated market
area system created by Nielsen Media Research.
``(2) Local commercial television station.--The term `local
commercial television station' means, with respect to a
subscriber to a non-facilities based multichannel video
programming distributor, any full power commercial television
station licensed and operating on a channel regularly
assigned to a community in the same designated market area as
the subscriber.
``(3) Local noncommercial educational television station.--
The term `local noncommercial educational television station'
means, with respect to a subscriber to a non-facilities based
multichannel video programming distributor, a television
broadcast station that is a noncommercial educational
broadcast station (as defined in section 397 of this Act),
licensed and operating on a channel regularly assigned to a
community in the same designated market area as the
subscriber.
``(4) Non-local commercial television station.--The term
`non-local commercial television station' means, with respect
to a subscriber to a non-facilities based multichannel video
programming distributor, any full power commercial television
station licensed and operating on a channel regularly
assigned to a community not located in the same designated
market area as the subscriber.
[[Page S7959]]
``(5) Video programming.--The term `video programming'
means programming provided by, or generally considered
comparable to programming provided by, a television broadcast
station, whether or not such programming is delivered using a
portion of the electromagnetic frequency spectrum.
``SEC. 672. RIGHT TO ELECT STATUS.
``(a) In General.--Any online video distributor that
provides programming in a manner reasonably equivalent to a
multichannel video programming distributor may elect to be
treated as a non-facilities based multichannel video
programming distributor under this part.
``(b) Procedure for Election.--Not later than 1 year after
the date of enactment of the Consumer Choice in Online Video
Act, the Commission shall establish the form and procedures
for an online video distributor to make the election
permitted under subsection (a).
``(c) Definition of Reasonably Equivalent.--For purposes of
this section, the term `reasonably equivalent'--
``(1) means providing multiple channels of video
programming that allow a subscriber to watch that programming
in a fashion comparable to the services provided by
multichannel video programming distributors, regardless of
the means used to transmit the multiple channels of video
programming;
``(2) shall be based upon the subscriber experience in
using the service provided by the online video distributor,
and not the underlying technology used by the online video
distributor; and
``(3) may include services that include the ability for a
subscriber to record video programming and watch recorded
programming at another time if the underlying video
programming service being recorded conforms to this
subsection.
``SEC. 673. EFFECT OF ELECTION.
``Any online video distributor that elects to be treated as
a non-facilities based multichannel video programming
distributor under section 672 shall have all of the rights
and responsibilities under this part.
``SEC. 674. FEDERAL COMMUNICATIONS COMMISSION PROCEEDING.
``(a) In General.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall--
``(1) determine whether any of its rules and regulations
applicable to a multichannel video programming distributor
shall also be applied, in the public interest, to a non-
facilities based multichannel video programming distributor;
``(2) require a non-facilities based multichannel video
programming distributor to comply with the access to
broadcast time requirement under section 312(a)(7) of this
Act and the use of facilities requirements under section 315
of this Act;
``(3) consider whether it is in the public interest for the
Commission to adopt minimum technical quality standards for a
non-facilities based multichannel video programming
distributor; and
``(4) adopt any other rules the Commission considers
necessary to implement this part.
``(b) Limitation.--The Commission shall not require, as
part of its rulemaking under subsection (a), a non-facilities
based multichannel video programming distributor to comply
with the basic tier and tier buy-through requirement under
section 623(b)(7).
``SEC. 675. PROGRAM ACCESS FOR NON-FACILITIES BASED
MULTICHANNEL VIDEO PROGRAMMING DISTRIBUTORS.
``(a) In General.--The Commission shall prohibit practices,
understandings, arrangements, and activities, including any
exclusive contract for video programming between a
multichannel video programming distributor and a video
programming vendor or an online video distributor and a video
programming vendor that prevents a non-facilities based
multichannel video programming distributor from obtaining
programming from any video programming vendor.
``(b) Specific Actions Prohibited.--
``(1) Material parity restrictions.--A multichannel video
programming distributor or an online video distributor may
not include in any contract with a video programming vendor
any provision that requires the multichannel video
programming distributor or online video distributor, as
applicable, to be treated in material parity with other
similarly situated multichannel video programming
distributors or online video distributors with regard to
pricing or other terms and conditions of carriage of video
programming.
``(2) Retaliation prohibited.--A multichannel video
programming distributor or an online video distributor may
not retaliate against--
``(A) any video programming vendor for making its video
programming available to a non-facilities based multichannel
video programming distributor;
``(B) any non-facilities based multichannel video
programming distributor for obtaining video programming from
a video programming vendor; or
``(C) any entity for exercising a right under this Act.
``SEC. 676. CONSUMER CHOICE IN VIDEO PROGRAMMING.
``(a) In General.--As part of the rulemaking required by
section 674, the Commission shall determine what, if any,
additional steps it should take, in the public interest, to
allow a non-facilities based multichannel video programming
vendor to offer a subscriber greater choice over the video
programming that is part of the subscriber's service.
``(b) Considerations.--As part of the proceeding under
subsection (a), the Commission shall consider whether to
limit a video programming vendor's use of certain contractual
terms and conditions that disincentivize or impede the
ability of a subscriber to have greater choice over the video
programming packages or options the subscriber can purchase
from a non-facilities based multichannel video programming
vendor.
``(c) Limitation.--The Commission shall not compel a video
programming vendor to sell its video programming to a non-
facilities based multichannel video programming vendor as
part of any rules adopted under this section.
``SEC. 677. CARRIAGE OF COMMERCIAL BROADCAST TELEVISION
SIGNALS.
``(a) In-Market Broadcast Television Signals.--
``(1) In general.--At the request of a non-facilities based
multichannel video programming distributor serving a
designated market area, a local commercial television
broadcast station located in that designated market area
shall enter into negotiations for carriage of its content
over that distributor's system.
``(2) Good faith requirements.--A local commercial
television station subject to the duty to negotiate under
paragraph (1) shall engage in good faith negotiations for
carriage of its signal in the designated marketed area where
the station is located. The Commission shall define good
faith for purposes of this paragraph.
``(3) Good signal requirements.--A local commercial
television broadcast station being carried by a non-
facilities based multichannel video programming distributor
under this subsection shall be responsible for delivering a
good quality signal suitable for distribution by that
distributor.
``(b) Out-of-Market Broadcast Television Signals.--
``(1) In general.--In addition to any signal carried under
subsection (a), a non-facilities based multichannel video
programming distributor also may deliver to a subscriber the
signal of a non-local commercial broadcast television station
under this subsection and subsection (c).
``(2) Deemed significantly viewed.--
``(A) In general.--A signal of a non-local commercial
broadcast television station delivered by a non-facilities
based multichannel video programming distributor under this
section shall be deemed to be significantly viewed within the
meaning of section 76.54 of title 47, Code of Federal
Regulations.
``(B) Exemptions.--The following regulations shall not
apply to a signal that is eligible to be carried under this
subsection:
``(i) Section 76.92 of title 47, Code of Federal
Regulations (relating to cable network non-duplication).
``(ii) Section 76.122 of title 47, Code of Federal
Regulations (relating to satellite network non-duplication).
``(iii) Section 76.101 of title 47, Code of Federal
Regulations (relating to cable syndicated program
exclusivity).
``(iv) Section 76.123 of title 47, Code of Federal
Regulations (relating to satellite syndicated program
exclusivity).
``(v) Section 76.111 of title 47, Code of Federal
Regulations (relating to cable sports blackout).
``(vi) Section 76.127 of title 47, Code of Federal
Regulations (relating to satellite sports blackout).
``(3) Subscriber preference.--In delivering a non-local
commercial broadcast television station signal to a
subscriber under this subsection, and consistent with
subsection (c)--
``(A) the non-facilities based multichannel video
programming distributor shall provide the subscriber with
information regarding all signals that the distributor is
capable of making available to the subscriber under this
subsection;
``(B) the non-facilities based multichannel video
programming distributor shall offer a subscriber the option
to choose each non-local commercial television station signal
the subscriber wants to receive as part of the subscriber's
service; and
``(C) if a subscriber does not make a choice under
subparagraph (B), the non-facilities based multichannel video
programming distributor shall take reasonable steps to
deliver to the subscriber the signal of each non-local
commercial television station that is closest in proximity.
``(4) Definition of closest in proximity.--
``(A) In general.--For purposes of paragraph (3), the term
`closest in proximity' means the non-local commercial
television station whose community of license is the closest
in distance to the subscriber's place of residence.
``(B) Inclusions.--For purposes of paragraph (3), the term
`closest in proximity' includes a non-local commercial
television station located in a State other than the State of
the subscriber's place of residence.
``(c) Subscriber Rights.--
``(1) In general.--Notwithstanding any other provision of
law, a subscriber to a non-facilities based multichannel
video programming distributor shall be entitled to receive
programming from not more than 2 commercial television
stations that are affiliates of the same television network
and not more than 1 of the affiliates may be located in a
[[Page S7960]]
designated market area where the subscriber does not reside.
``(2) Local signal not required.--A non-facilities based
multichannel video programming distributor shall not be
required to carry the signal of a local commercial television
station under subsection (a) as a condition to carrying and
delivering to a consumer a non-local commercial broadcast
television signal under subsection (b).
``(3) Mobile platforms.--A subscriber shall have the right
to view any commercial television station signal provided to
that subscriber under this section at any time and on any
device, including a mobile device and any other device not
permanently located in the subscriber's place of residence,
that a non-facilities based multichannel video programming
distributor has made capable of delivering the distributor's
service to that subscriber.
``(d) Limits in Existing Programming and Affiliation
Contracts.--
``(1) In general.--It shall be unlawful for any entity
selling or otherwise providing video programming to be
transmitted by a local or non-local commercial television
station to include in any contract, agreement, understanding,
or arrangement with that station a limitation on the ability
of the station to comply with the requirements of this
section.
``(2) Existing contracts.--
``(A) In general.--Subject to subparagraph (B), nothing in
this section shall affect any contract, understanding, or
arrangement that was entered into on or before December 1,
2013.
``(B) Exceptions.--No contract, understanding, or
arrangement entered into on or before December 1, 2013, that
violates this section shall be enforceable by any person
after the date that is 3 years after the date of enactment of
the Consumer Choice in Online Video Act.
``(C) Limitation on renewals.--A contract, understanding,
or arrangement that was entered into on or before December 1,
2013, but that is renewed or extended after the date of
enactment of the Consumer Choice in Online Video Act shall
not be exempt under subparagraph (A).
``SEC. 678. CARRIAGE OF NONCOMMERCIAL, EDUCATIONAL, AND
INFORMATIONAL PROGRAMMING.
``(a) Local Noncommercial Educational Television
Stations.--
``(1) In general.--If a non-facilities based multichannel
video programming distributor elects to carry a local
commercial broadcast television signal under section 677(a),
that non-facilities based multichannel video programming
distributor shall carry, upon request, the signal of a local
noncommercial educational television station located in the
same designated market area of the local commercial
television broadcast station being carried under that
section.
``(2) Carriage only in local market.--
``(A) In general.--A local noncommercial educational
television station shall be entitled to carriage only in the
designated market area to which that station is assigned.
``(B) Systems of noncommercial educational broadcast
stations.--In the case of a system of 3 or more noncommercial
educational broadcast stations licensed to a single State,
public agency, or political, educational, or special purpose
subdivision of a State, the carriage right under this
subsection shall apply to any designated market area in the
State where that system is located.
``(3) Good signal requirements.--A local noncommercial
educational television station that requests to be carried by
a non-facilities based multichannel video programming
distributor under paragraph (1) shall be responsible for
delivering a good quality signal suitable for distribution by
that distributor.
``(b) Channel Reservation Requirements.--
``(1) In general.--The Commission shall require a non-
facilities based multichannel video programming distributor
to reserve a portion of its channel capacity, equal to not
less than 3.5 percent or not more than 7 percent, exclusively
for noncommercial programming of an educational or
informational nature.
``(2) Use of unused channel capacity.--A non-facilities
based multichannel video programming distributor may use for
any purpose any unused channel capacity required to be
reserved under this subsection pending the actual use of that
channel capacity for noncommercial programming of an
educational or informational nature.
``(3) Prices, terms, and conditions.--A non-facilities
based multichannel video programming distributor shall meet
the requirements of this subsection by making channel
capacity available to each national educational programming
supplier, upon reasonable prices, terms, and conditions, as
determined by the Commission under paragraph (5).
``(4) Editorial control.--A non-facilities based
multichannel video programming distributor may not exercise
any editorial control over any video programming provided
under this subsection.
``(5) Limitations.--In determining reasonable prices under
paragraph (3)--
``(A) the Commission, among other considerations, shall
consider the nonprofit character of the programming provider
and any Federal funds used to support that programming;
``(B) the Commission shall not permit the prices to exceed,
for any channel capacity made available under this
subsection, 50 percent of the total direct costs of making
the channel capacity available; and
``(C) in the calculation of total direct costs, the
Commission shall exclude--
``(i) the marketing costs, general administrative costs,
and similar overhead costs of the non-facilities based
multichannel video programming distributor; and
``(ii) the revenue that the non-facilities based
multichannel video programming distributor might have
obtained by making that channel capacity available to a video
programming vendor.
``(6) Definition of channel capacity.--In this section, the
term `channel capacity' means the total number of channels of
video programming provided to a subscriber by the non-
facilities based multichannel video programming distributor,
without regard to whether that non-facilities based
multichannel video programming distributor uses a portion of
the electromagnetic frequency spectrum to deliver that
channel of video programming.
``SEC. 679. LICENSING.
``(a) In General.--A non-facilities based multichannel
video programming distributor that is carrying any broadcast
television station signal under section 677 or section 678
shall--
``(1) be considered to be a cable system under section 111
of title 17, United States Code; and
``(2) be subject to--
``(A) the statutory licensing requirements set forth in
sections 111(c) and 111(e) of that title;
``(B) payment of the fees required by section 111(d) of
that title; and
``(C) the penalties under section 111 of that title for
failure to pay the fees required by that section.
``(b) Local Service Area of a Primary Transmitter.--For
purposes of the application of section 111 of title 17,
United States Code, to a non-facilities based multichannel
video programming distributor under this section--
``(1) a local commercial television station's local service
area of a primary transmitter shall consist of the entirety
of that station's designated market area; and
``(2) a local noncommercial educational television
station's local service area of a primary transmitter shall
consist of the entirety of that station's designated market
area.
``SEC. 680. EXCLUSION FROM FRANCHISE REQUIREMENTS.
``A non-facilities based multichannel video programming
distributor shall not be subject to local franchising
requirements under section 621 of this Act or otherwise be
regulated by any franchising authority.
``SEC. 681. PRIVACY PROTECTIONS.
``(a) In General.--A non-facilities based multichannel
video programming distributor shall comply with the privacy
protections applicable to satellite services as set forth in
section 338(i) of this Act and the Commission's regulations
under that section.
``(b) Penalties.--Any non-facilities based multichannel
video programming distributor that fails to comply with the
provisions under section 338(i) of this Act, and the
Commission's regulations under that section, shall be subject
to the penalties set forth in section 338(i)(7) of this Act.
``SEC. 682. CONSUMER EQUIPMENT.
``Not later than 1 year after the date of enactment of the
Consumer Choice in Online Video Act, the Commission shall
commence a proceeding to consider whether to adopt rules--
``(1) to establish standards to ensure that services and
platforms provided by a non-facilities based multichannel
video programming distributor can interconnect and interface
with--
``(A) any Internet-capable television and television
receiver; and
``(B) any other Internet-capable consumer electronics
equipment that facilitates the viewing of video programming
on a television receiver; and
``(2) to promote the commercial availability of other
devices that will permit a consumer to access non-facilities
based multichannel video programming distribution services
and platforms over equipment of the consumer's choice.
``SEC. 683. EFFECTIVE COMPETITION STANDARD.
``The number of households subscribing to a non-facilities
based multichannel video programming distributor in a
franchise area under this part shall not be considered for
purposes of a determination by the Commission of whether a
cable system is subject to effective competition in that
franchise area under section 623 of this Act.
``SEC. 684. REMEDIES AND ADJUDICATIONS.
``(a) Adjudicatory Proceedings.--Any entity aggrieved by
conduct that it alleges constitutes a violation of this part,
or the regulations of the Commission under this part, may
commence an adjudicatory proceeding at the Commission.
``(b) Remedies.--
``(1) Remedies authorized.--
``(A) Interim remedies.--The Commission may authorize
interim remedies during the pendency of a complaint.
``(B) Appropriate remedies.--Upon completion of an
adjudicatory proceeding under this section, the Commission
shall have the power to order appropriate remedies,
including, if necessary, the power to establish
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prices, terms, and conditions of sale of programming to, or
prices, terms, and conditions of the transport of the content
of, the aggrieved entity.
``(2) Additional remedies.--The remedies provided in
paragraph (1) are in addition to and not in lieu of the
remedies available under title V or any other provision of
this Act.
``(c) Procedures.--In promulgating regulations to implement
this part, the Commission shall--
``(1) provide for an expedited review of any complaint made
under this part, including a procedural timeline to conclude
the review of each complaint not later than 180 days after
the date the complaint is filed;
``(2) establish procedures for the Commission to collect
any data, including the right to obtain copies of all
contracts and documents reflecting any practice,
understanding, arrangement, or agreement alleged to violate
this part, as the Commission requires to carry out this part;
and
``(3) provide for penalties to be assessed against any
person filing a frivolous complaint under this part.''.
TITLE IV--MISCELLANEOUS
SEC. 401. TECHNICAL AND CONFORMING AMENDMENTS.
Section 602(20) of title VI of the Communications Act of
1934 (47 U.S.C. 522(20)) is amended by inserting ``unless
expressly provided otherwise,'' before ``the term `video
programming' means''.
SEC. 402. PROVISIONS AS COMPLEMENTARY.
The provisions of this Act are in addition to, and shall
not affect the operation of, other Federal, State, or local
laws or regulations regulating billing for Internet service,
online video distribution, or non-facilities based
multichannel video programming distributors, except if the
provisions of any other law are inconsistent with the
provisions of this Act, the provisions of this Act shall be
controlling.
SEC. 403. APPLICABILITY OF ANTITRUST LAWS.
Nothing in this Act or the amendments made by this Act
shall be construed to alter or restrict in any manner the
applicability of any Federal or State antitrust law.
SEC. 404. SEVERABILITY.
If any provision of this Act, an amendment made by this
Act, or the application of such provision or amendment to any
person or circumstance is held invalid, the remainder of this
Act, the amendments made by this Act, and the application of
such provision or amendment to any person or circumstance
shall not be affected thereby.
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