[Congressional Record Volume 160, Number 115 (Tuesday, July 22, 2014)]
[House]
[Pages H6588-H6592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STELA REAUTHORIZATION ACT OF 2014
Mr. WALDEN. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4572) to amend the Communications Act of 1934 to extend
expiring provisions relating to the retransmission of signals of
television broadcast stations, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4572
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 ``STELA
Reauthorization Act of 2014''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. No additional appropriations authorized.
TITLE I--COMMUNICATIONS PROVISIONS
Sec. 101. Extension of authority.
Sec. 102. Retransmission consent negotiations.
Sec. 103. Delayed application of JSA attribution rule in case of waiver
petition.
Sec. 104. Deletion or repositioning of stations during certain periods.
Sec. 105. Repeal of integration ban.
Sec. 106. Report on communications implications of statutory licensing
modifications.
Sec. 107. Local network channel broadcast reports.
Sec. 108. Report on designated market areas.
Sec. 109. Definitions.
TITLE II--COPYRIGHT PROVISIONS
Sec. 201. Reauthorization.
Sec. 202. Termination of license.
SEC. 2. NO ADDITIONAL APPROPRIATIONS AUTHORIZED.
No additional funds are authorized to carry out this Act,
or the amendments made by this Act. This Act, and the
amendments made by this Act, shall be carried out using
amounts otherwise authorized or appropriated.
TITLE I--COMMUNICATIONS PROVISIONS
SEC. 101. EXTENSION OF AUTHORITY.
Section 325(b) of the Communications Act of 1934 (47 U.S.C.
325(b)) is amended--
(1) in paragraph (2)(C), by striking ``December 31, 2014''
and inserting ``December 31, 2019''; and
(2) in paragraph (3)(C), by striking ``January 1, 2015''
each place it appears and inserting ``January 1, 2020''.
SEC. 102. RETRANSMISSION CONSENT NEGOTIATIONS.
(a) In General.--Section 325(b)(3)(C) of the Communications
Act of 1934 (47 U.S.C. 325(b)(3)(C)) is amended--
(1) in clause (ii), by striking ``and'' at the end;
(2) in clause (iii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(iv) prohibit a television broadcast station from
coordinating negotiations or negotiating on a joint basis
with another television broadcast station in the same local
market (as defined in section 122(j) of title 17, United
States Code) to grant retransmission consent under this
section to a multichannel video programming distributor,
unless such stations are directly or indirectly under common
de jure control permitted under the regulations of the
Commission.''.
(b) Margin Correction.--Section 325(b)(3)(C) of the
Communications Act of 1934 (47 U.S.C. 325(b)(3)(C)) is
further amended by moving the margin of clause (iii) 4 ems to
the left.
(c) Deadline for Regulations.--Not later than 9 months
after the date of the enactment of this Act, the Commission
shall promulgate regulations to implement the amendments made
by this section.
SEC. 103. DELAYED APPLICATION OF JSA ATTRIBUTION RULE IN CASE
OF WAIVER PETITION.
In the case of a party to a joint sales agreement (as
defined in Note 2(k) to section 73.3555 of title 47, Code of
Federal Regulations) that is in effect on the effective date
of the amendment to Note 2(k)(2) to such section made by the
Further Notice of Proposed Rulemaking and Report and Order
adopted by the Commission on March 31, 2014 (FCC 14-28), and
who, not later than 90 days after the date of the enactment
of this Act, submits to the Commission a petition for a
waiver of the application to such agreement of the rule in
such Note 2(k)(2) (as so amended), such party shall not be
considered to be in violation of the ownership limitations of
such section by reason of the application of such rule to
such agreement until the later of--
(1) the date that is 18 months after the date on which the
Commission denies such petition; or
(2) December 31, 2016.
SEC. 104. DELETION OR REPOSITIONING OF STATIONS DURING
CERTAIN PERIODS.
(a) In General.--Section 614(b)(9) of the Communications
Act of 1934 (47 U.S.C. 534(b)(9)) is amended by striking the
second sentence.
(b) Revision of Rules.--Not later than 90 days after the
date of the enactment of this Act, the Commission shall
revise section 76.1601 of its rules (47 CFR 76.1601) and any
note to such section by removing the prohibition against
deletion or repositioning of a local commercial television
station during a period in which major television ratings
services measure the size of audiences of local television
stations.
SEC. 105. REPEAL OF INTEGRATION BAN.
(a) No Force or Effect.--The second sentence of section
76.1204(a)(1) of title 47, Code of Federal Regulations, shall
have no force or effect after the date of the enactment of
this Act.
(b) Removal From Rules.--Not later than 180 days after the
date of the enactment of this Act, the Commission shall
complete all actions necessary to remove the sentence
described in subsection (a) from its rules.
SEC. 106. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY
LICENSING MODIFICATIONS.
(a) Study.--The Comptroller General of the United States
shall conduct a study that analyzes and evaluates the changes
to the carriage requirements currently imposed on
multichannel video programming distributors under the
Communications Act of 1934 (47 U.S.C. 151 et seq.) and the
regulations promulgated by the Commission that would be
required or beneficial to consumers, and such other matters
as the Comptroller General considers appropriate, if Congress
implemented a phase-out of the current statutory licensing
requirements set forth under sections 111, 119, and 122 of
title 17, United States Code. Among other things, the study
shall consider the impact such a phase-out and related
changes to carriage requirements would have on consumer
prices and access to programming.
(b) Report.--Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall submit
to the appropriate congressional committees a report on the
results of the study conducted under subsection (a),
including any recommendations for legislative or
administrative actions. Such report shall also include a
discussion of any differences between such results and the
results of the study conducted under section 303 of the
Satellite Television Extension and Localism Act of 2010 (124
Stat. 1255).
SEC. 107. LOCAL NETWORK CHANNEL BROADCAST REPORTS.
(a) Requirement.--
(1) In general.--On the 270th day after the date of the
enactment of this Act, and on each succeeding anniversary of
such 270th day, each satellite carrier shall submit an annual
report to the Commission setting forth--
(A) each local market in which it--
(i) retransmits signals of 1 or more television broadcast
stations with a community of license in that market;
(ii) has commenced providing such signals in the preceding
1-year period; and
(iii) has ceased to provide such signals in the preceding
1-year period; and
(B) detailed information regarding the use and potential
use of satellite capacity for the retransmission of local
signals in each local market.
(2) Termination.--The requirement under paragraph (1) shall
cease after each satellite carrier has submitted 5 reports
under such paragraph.
(b) Definitions.--In this section--
(1) the terms ``local market'' and ``satellite carrier''
have the meaning given such terms in section 339(d) of the
Communications Act of 1934 (47 U.S.C. 339(d)); and
(2) the term ``television broadcast station'' has the
meaning given such term in section 325(b)(7) of the
Communications Act of 1934 (47 U.S.C. 325(b)(7)).
SEC. 108. REPORT ON DESIGNATED MARKET AREAS.
Not later than 18 months after the date of the enactment of
this Act, the Commission shall submit to the appropriate
congressional committees a report containing an analysis of--
(1) the extent to which consumers in each local market (as
defined in section 122(j) of title 17, United States Code)
have access to broadcast programming from television
broadcast stations (as defined in section 325(b)(7) of the
Communications Act of 1934 (47 U.S.C. 325(b)(7))) located
outside their local market, including through carriage by
cable operators and satellite carriers of signals that are
significantly viewed (within the meaning of section 340 of
such Act (47 U.S.C. 340)); and
(2) whether there are technologically and economically
feasible alternatives to the use of designated market areas
(as defined in section 122(j) of title 17, United States
Code) to define markets that would provide consumers with
more programming options and the potential impact such
alternatives could have on localism and on broadcast
television locally, regionally, and nationally.
SEC. 109. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Energy and Commerce and the Committee on
[[Page H6589]]
the Judiciary of the House of Representatives and the
Committee on Commerce, Science, and Transportation and the
Committee on the Judiciary of the Senate.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
TITLE II--COPYRIGHT PROVISIONS
SEC. 201. REAUTHORIZATION.
Chapter 1 of title 17, United States Code, is amended--
(1) in section 111(d)(3)--
(A) in the matter preceding subparagraph (A), by striking
``clause'' and inserting ``paragraph''; and
(B) in subparagraph (B), by striking ``clause'' and
inserting ``paragraph''; and
(2) in section 119--
(A) in subsection (c)(1)(E), by striking ``2014'' and
inserting ``2019''; and
(B) in subsection (e), by striking ``2014'' and inserting
``2019''.
SEC. 202. TERMINATION OF LICENSE.
(a) In General.--Section 119 of title 17, United States
Code, as amended in section 201, is amended by adding at the
end the following:
``(h) Termination of License.--This section shall cease to
be effective on December 31, 2019.''.
(b) Conforming Amendment.--Section 107(a) of the Satellite
Television Extension and Localism Act of 2010 (17 U.S.C. 119
note) is repealed.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Oregon (Mr. Walden) and the gentleman from Vermont (Mr. Welch) each
will control 20 minutes.
The Chair recognizes the gentleman from Oregon.
General Leave
Mr. WALDEN. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks and
insert extraneous materials in the Record on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Oregon?
There was no objection.
Mr. WALDEN. Mr. Speaker, I yield myself such time as I may consume.
Today, we are offering a bill that will ensure that 1.5 million
subscribers in hard-to-reach areas, including many in my home State of
Oregon, will continue to receive vital news and information through the
television. The STELA Reauthorization Act extends the copyright and
retransmission consent provisions for distant signals retransmitted by
commercial satellite providers for 5 years.
Our committee has worked hard on this bill. We have engaged members
of industry and consumer groups, and we have talked about the difficult
policy matters that affect all consumers when it comes to video
programming. Every member of our committee, on both sides of the aisle,
has engaged with industry and consumers to figure out the right policy
and to get to the right outcome, which we bring to you today.
Our bill not only reauthorizes the compulsory copyright and
retransmission exemption for 5 years, but it also targets and, in some
areas, gives much-needed reforms to our communications law.
Specifically, this bill repeals the FCC's integration ban on cable-
leased set-top boxes. That clears the way for innovation and investment
by lifting an unnecessary regulatory burden that has cost the cable
industry and its consumers who pay the $1 billion--$1 billion, Mr.
Speaker--since 2007.
I especially want to thank my friend, the extraordinary, terrific
vice chair of the Telecommunications Subcommittee, Mr. Latta of Ohio,
and my Democratic colleague from Texas, Gene Green, who brought this
issue to our attention and helped us in this bipartisan lift to get rid
of the integration ban.
Our bill also evens the playing field for cable operators and
broadcasters during sweeps weeks by removing a government restriction
on cable's ability to drop broadcast signals during the Nielsen sweeps.
Additionally, broadcast stations in a single market will no longer be
able to negotiate jointly with pay-TV providers. Pay-TV subscribers
will no longer have to worry about losing more than one signal should a
programming distributor be unable to reach its retransmission consent
agreement with a broadcast station.
These can be very contentious matters, Mr. Speaker. I am proud to say
that the STELA Reauthorization Act is yet another example of working
together, getting true bipartisanship, with support from all sectors of
the communications industry.
This type of collaboration has long been the hallmark of our
subcommittee and full committee, and I am pleased to see this
legislative result. I can only urge the Senate to act swiftly and pass
this bill into law before the end of the year.
I yield back the balance of my time.
Mr. WELCH. Mr. Speaker, I yield myself such time as I may consume.
Today, Mr. Speaker, I rise in support of H.R. 4572, the STELA
Reauthorization Act, a bill that allows satellite providers to continue
to offer broadcast television programming to their subscribers.
Americans across the country will benefit from reauthorizing the
expiring communications and copyright statute that allows satellite
customers to have access to broadcast content, but it particularly
benefits rural communities, a concern of many of us in this body. Folks
from Vermont are going to benefit by this. They rely heavily on
satellite for access to video programming.
The STELA Reauthorization Act is the work product of two committees,
the Energy and Commerce Committee and the Judiciary Committee. Because
of the bill's complexity, both substantively and procedurally, the
Communications and Technology Subcommittee held a series of hearings
starting early last year to examine the various issues affecting our
Nation's ever-evolving video marketplace. As a result, H.R. 4572
includes several targeted provisions designed to improve regulatory
parity in the video marketplace.
One, the bill prohibits two noncommonly owned broadcasters from
jointly negotiating for retransmission consent with cable and satellite
companies.
Two, the bill also includes a compromise on the deadline for
broadcasters to unwind certain joint sales agreements in an attempt to
keep intact the FCC's local broadcast ownership rules.
The final provision we are voting on today strengthens the waiver
process both for the broadcasters seeking to maintain their joint sales
agreements, as well as for the FCC looking to streamline waiver
applications.
In addition, the bill eliminates the FCC's integration ban for cable
set-top boxes, a rule that was designed to help promote a retail market
for cable set-top boxes that regrettably is not working as intended.
To allow independent manufacturers of set-top boxes a chance to
compete, the FCC requires both cable companies and third-party set-top
box manufacturers to rely on the same piece of technology to decrypt
their signals, called the CableCARD.
Not only has this regime not resulted in the kind of competition
Congress envisioned, energy experts told us that the CableCARD actually
creates significant energy inefficiencies. So our bill takes this rule
off the books, but does not place any forward-looking restrictions on
the FCC's authority to continue to promote retail competition for set-
top boxes.
These narrow changes only begin to scratch the surface of the broken
video marketplace. In my view, Congress should revisit the entire video
regime and update the corresponding laws to better represent the 21st
century marketplace, to drive competition, and, most importantly, to
provide more benefits to consumers.
The various stakeholders, from distributors to programmers to
broadcasters and content providers, have all been able to reap
financial rewards, as they should, in this video marketplace, but my
concern and the concern of many of us is that the consumer has been
left out of the equation.
They have paid, on average, twice the rate of inflation annually for
cable over the past 20 years. I understand there are a lot of costs
that go into the overall rate to consumers, but it is time for the
consumers' concerns to be heard and responded to.
I want to thank Chairman Upton and Chairman Walden for working with
Ranking Members Waxman and Eshoo and Democrats--thank you, gentlemen--
on the bipartisan compromise on this bill.
I urge my colleagues to support the passage of this bill today, but I
do hope that this is only the beginning, and we can work together on a
more comprehensive bill to address the broken aspects of the video
marketplace.
I reserve the balance of my time.
[[Page H6590]]
Mr. WALDEN. Mr. Speaker, I ask unanimous consent to reclaim my time.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Oregon?
There was no objection.
Mr. WALDEN. Mr. Speaker, with that, I yield to the distinguished
gentleman from Michigan (Mr. Upton), the leader of our Energy and
Commerce Committee.
Mr. UPTON. Mr. Speaker, the STELA Reauthorization Act is a very
important piece of must-pass legislation that ensures that millions of
satellite TV subscribers continue to receive broadcast TV programming
from their chosen satellite provider.
The bill represents the best of what our committee does--work
together to produce a bipartisan bill that does indeed strengthen our
economy and streamline our laws for the innovation age.
In addition to extending the laws that permit satellite providers to
bring broadcast signals to hard-to-reach customers, the bill also makes
targeted reforms to our Nation's woefully outdated communications laws.
As our committee prepares for an updated Communications Act, these
reforms are small examples of some of the deregulatory changes that we
can make to spur investment and communications networks and promote
competition.
{time} 1515
The bill eliminates the costly cableCARD integration ban that has
increased the cost of cable-leased set-top boxes and made them less
energy efficient, evens the playing field for cable and satellite
providers when it comes to protecting broadcast signals during Nielsen
sweeps, brings fairness to retransmission consent negotiations by
barring broadcast stations from jointly negotiating with programing
distributors, and ensures that broadcasters who have had their business
models upended by recent FCC actions indeed have adequate time to make
the changes necessary to comply with the new rules.
This bill is good policy, and we hope that the Senate will take quick
action to enact this must-pass law for the millions depending on
satellite television.
I want to particularly thank Subcommittee on Communications and
Technology Chairman Walden from Oregon, Ranking Members Henry Waxman
and Anna Eshoo, and our respective staffs for their bipartisan work
from the start on this very important legislation.
I am proud of this product. As we work toward the Comm Act update to
modernize our Nation's communications law for the innovation era,
continued cooperation will be very critical to our success. I urge my
colleagues to support this bill.
Mr. WALDEN. I reserve the balance of my time.
Mr. WELCH. Mr. Speaker, I yield 3 minutes to the gentleman from
Michigan (Mr. Conyers), the ranking member of the Judiciary Committee.
Mr. CONYERS. I thank the gentleman for his generosity.
Mr. Speaker, I, like my colleague from New York (Mr. Nadler), rise in
support of this bipartisan legislation for several reasons.
To begin with, section 119 of the Copyright Act expires on December
31. It is particularly important for unserved households, namely,
customers who can't receive an over-the-air-signal of a local network.
Thus, if Congress fails to act, millions of Americans stand to lose
access to their broadcast television service.
H.R. 4572 responds to this problem, in pertinent part, by extending
for 5 years the section 119 license authorization, thereby ensuring
continued service to millions of Americans.
The other reason that I support this bill is that it is a good
example of how Congress can work on a bipartisan basis and produce
legislation offering effective solutions.
There are many issues regarding the relationship between broadcast
television stations and distributors that would benefit from similar
efforts by stakeholders working together to see if consensus can be
obtained. In particular, I have long argued that content creators
should be compensated appropriately for their works. Negotiations in
the free market can often best ensure that artists and content creators
are fairly compensated. In some cases, we have seen consumers pulled
into the middle of such negotiations. No one wants this to happen. It
is not good for consumers, nor is it good for the parties involved.
Finally, this legislation comports with two important guiding
principles: consumers should be protected, and competition should be
safeguarded.
All of us consumers benefit from increased competition because it
typically facilitates lower prices, while also generating more
innovation, variety, and options. Consumers want the flexibility to
watch programming on their choice of television sets, phones, and
tablets, no matter where they are.
We should also recognize that many consumers very much value local
news and sports programming and the need for local channels to deliver
community service and emergency information. Thus, we should continue
to consider ways to increase programming options for subscribers to
cable or satellite television.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. WELCH. Mr. Speaker, I yield the gentleman an additional 30
seconds.
Mr. CONYERS. Accordingly, I urge my colleagues to support the bill.
Mr. WALDEN. Mr. Speaker, I am honored to yield such time as he may
consume to the gentleman from Virginia (Mr. Goodlatte), the chairman of
the House Judiciary Committee.
Mr. GOODLATTE. Mr. Speaker, this afternoon, the House is considering
joint Judiciary and Energy and Commerce Committee legislation to ensure
that our rural constituents continue to have access to network channels
on America's two satellite carriers.
Title II of the legislation extends the expiring section 119
copyright license for another 5 years, as this committee has done on
previous occasions, most recently in 2010. This license ensures that
when our constituents do not have access to a full complement of local
network television stations, they can have access, through satellite
television carriers, to distant network television stations. This helps
ensure that consumers in rural areas, like my congressional district,
have the same access to news and entertainment options that consumers
in urban areas enjoy.
Without enactment of this legislation, many of our constituents would
potentially lose access to certain networks altogether on December 31
when the current license expires. I would like to point out that,
although numerous stakeholders interested in video issues have
contacted the Judiciary Committee on a variety of issues, they all
agree that this license should not expire at the end of this year.
Other issues of interest in this area will be the subject of further
discussions as the Judiciary Committee continues its ongoing review of
our Nation's copyright laws.
I want to express my appreciation to the chairman of the Energy and
Commerce Committee, Mr. Upton, and the chairman of the
Telecommunications Subcommittee, Mr. Walden, for their efforts on this
reauthorization as well, and I look forward to continuing to work with
them on this issue that is important to all of our constituents.
Mr. WELCH. Mr. Speaker, I yield 3 minutes to the gentleman from New
York (Mr. Nadler), a member of the Judiciary Committee.
Mr. NADLER. Mr. Speaker, I rise in support of H.R. 4572, the STELA
Reauthorization Act of 2014, as amended, which renews for another 5
years the statutory license that allows satellite providers to
retransmit distance signals into a local broadcast area in certain
circumstances.
The satellite distant-into-local license contained in section 119 of
the Copyright Act is set to expire on December 31 of this year. Among
other things, that license allows satellite carriers to provide an out-
of-market station to customers who are not served by local television
broadcasts.
Enacted in 1988 when the satellite industry was in its infancy, the
section 119 license was intended to foster competition with the cable
industry and also to increase service to unserved households, those
subscribers who cannot receive an over-the-air signal of a local
network. In 2010, as was the case on three prior occasions, Congress
extended the section 119 license for another 5 years.
[[Page H6591]]
In granting cable and satellite providers the statutory right to
retransmit copyrighted content at a government-regulated rate, Congress
created an exception to the general rule that creators have exclusive
rights to their works, including the right to determine when and how to
distribute them.
This licensing system replaces the free market, something that we are
generally reluctant to do. When we did so for cable and satellite
providers, these industries were just starting up and the licenses were
intended to encourage growth, foster competition, and enhance consumer
access.
On these fronts, the system has been a tremendous success. It is
estimated that nearly 90 percent of American households now subscribe
to a pay-TV service provided by multichannel video programming
distributors, in most cases, cable or satellite operators. Nearly all
households have a choice of at least three different providers.
Nonetheless, the dramatic recent changes in marketplace dynamics, as
well as technological advantages that revolutionize ways of
distributing video content, raise legitimate questions about whether
the statutory licensing system in the Copyright Act is still needed or
should be changed.
I support this 5-year reauthorization of the section 119 distant-
into-local satellite license. We still need answers as to how many
households would actually lose one or more of the four major network
channels if section 119 were not renewed. I, nonetheless, support this
5-year reauthorization because it will ensure that consumers who are
receiving service by virtue of the section 119 license retain that
service when the agreements providing for that service expire at the
end of the year.
I hope we use the time afforded by this renewal to make the
modifications to see if we have to keep the statutory license and keep
away from the free market or modify the statutory license in the
future. For the time being, we ought to extend it and renew this
license now.
I, therefore, urge my colleagues to join me in voting for H.R. 4572.
Mr. WALDEN. I thank the gentleman for his comments.
Mr. Speaker, I now yield such time as he may consume to the
distinguished gentleman from Ohio (Mr. Latta), the vice chair of the
Subcommittee on Communications and Technology.
Mr. LATTA. I thank the gentleman, the chairman of the subcommittee,
for yielding.
Mr. Speaker, I rise today in support of H.R. 4572, the STELA
Reauthorization Act.
For the last several months, Members of Congress have been earnestly
engaged in collaborative discussions and a great deal of work regarding
the reauthorization of the Satellite Television Extension and Localism
Act. This must-pass legislation is key to ensuring that over 1.5
million consumers of satellite television service do not lose access to
programming they rely on when the current measure is set to expire at
the end of this year.
Through Chairmen Upton's and Walden's thoughtful leadership, the
STELA Reauthorization Act also includes a few discrete and narrow
reforms to laws governing the video marketplace. These reforms
represent a critical step forward in modernizing our communications
laws to reflect the rapidly evolving, dynamic, and competitive
communications marketplace we have today.
I am especially pleased that a provision from my bipartisan bill,
H.R. 3196, with Congressman Gene Green was included in this measure to
eliminate the current set-top box integration ban. Repealing this
outmoded technological mandate will foster greater investment and
innovation in the set-top box market but, more importantly, will help
decrease the cost of delivery to consumers.
Since the FCC adopted the integration ban, we have seen a tremendous
amount of progress and competition in the video marketplace organically
developed outside the set-top box retail market, all absent government
regulation. Now, given the myriad devices and means through which
consumers can access video content, the integration ban is an
unnecessary regulation that does not reflect the state of competition,
technological advancements, or consumer demands of today.
The elimination of the integration ban, along with the few other
targeted reforms included in STELA, underscores the bipartisan
commitment to ensuring that our communication laws maximize the
potential for investment, innovation, and consumer choice.
I once again commend Chairmen Upton and Walden for their leadership
in this effort.
Our priority in reauthorizing STELA has long been to ensure a
continuity of service for satellite subscribers, and today's vote marks
a critical step toward fulfilling that responsibility.
I urge my colleagues to vote ``yes'' and support this bipartisan
legislation.
Mr. WELCH. Mr. Speaker, I congratulate Mr. Latta and Mr. Green for
their very good work in making a good bill better. I want to also
salute Mr. Upton and Mr. Walden for their good work, working closely in
partnership with Mr. Waxman and Ms. Eshoo.
We have no further speakers, so I urge a ``yes'' vote on this bill,
and I yield back the balance of my time.
Mr. WALDEN. Mr. Speaker, I want to thank the gentleman from Vermont
for his kind words and his good work on this legislation. Certainly, I
recognize our counterparts on the Democratic side, Mr. Waxman and Ms.
Eshoo, who have worked tirelessly on this bill, as well as their staff:
Shawn Chang, Margaret McCarthy, and David Grossman. Also, our staff,
David Redl; my senior policy adviser, Ray Baum; and Grace Koh, all of
whom have spent a lot of time working this through.
It seems interesting that we get to this point and it kind of goes
naturally, but there is a lot of work that went in to getting it to
this point. So I thank our staff and the Members who worked with us in
a very good-spirited way.
With that, Mr. Speaker, I urge the House to approve this bill, and I
yield back the balance of my time.
Ms. ESHOO. Mr. Speaker, I rise today in support of H.R. 4572, the
STELA Reauthorization Act of 2014.
Seventeen months ago, the Subcommittee on Communications and
Technology embarked on a process to reauthorize the Satellite
Television Extension and Localism Act of 2010 (STELA), a law ensuring
that approximately 1.5 million satellite subscribers can continue
accessing broadcast television signals. By reauthorizing STELA for a
period of five years, H.R. 4572 ensures that these mostly rural
households do not lose access to broadcast programming when the statute
expires on December 31, 2014.
H.R. 4572 also offers several meaningful reforms to the video
marketplace. First, the legislation ensures broadcasters cannot team up
against pay-TV providers for leverage during retransmission consent
negotiations. As retrans revenue is projected to rise to an estimated
$7.6 billion by 2019, this provision is an important step toward
rebalancing the playing field and ultimately protecting consumers from
unacceptable blackouts and increased rates.
Second, the bill eliminates a provision dating back to the 1992 Cable
Act which has prevented a cable operator from dropping a broadcast
signal during a Nielsen ratings ``sweeps week.'' With no such
prohibition for a broadcaster that pulls their signal during a retrans
dispute, H.R. 4572 creates regulatory parity and ensures a more level
playing field for cable operators and broadcasters.
Finally, while I support provisions intended to modernize the video
marketplace, I continue to have deep concerns about repealing the cable
set-top box integration ban prior to the industry-wide adoption of a
successor to the CableCARD. With an eye to the future, we can fulfill a
goal I set out to achieve nearly 20 years ago and that is to give
consumers an alternative to renting a set-top box from their local
cable company each month.
I thank Chairman Upton and Chairman Walden for their leadership in
bringing H.R. 4572 to the House floor and I urge my colleagues to join
me in supporting this important legislation.
Mr. GENE GREEN of Texas. Mr. Speaker, I rise in support of H.R. 4572,
the STELA Reauthorization Act.
The Energy and Commerce Committee worked several months to put
together this bipartisan legislation that will reauthorize the
Satellite Television Extension and Localism Act through the end of this
decade. It is necessary that the House and Senate reauthorize STELA,
which governs our nation's retransmission regulations, before it
expires at the end of this year.
Included in this bipartisan bill is language that closely resembles
legislation that I introduced with my Republican colleague, Rep. Bob
Latta, that will repeal the FCC's integration ban.
Once enacted, this provision will end the burdensome integration ban,
which has cost
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consumers and businesses over $1 billion since 2007 and has impeded
innovation and energy efficiency.
Section 6 of this legislation is a surgical approach that will end
this antiquated tech mandate while preserving FCC's authority in the
retail set-top box market.
I ask my colleagues on both sides of the aisle to support H.R. 4572
today. It balances the needs of competing stakeholders and most
importantly, protecting what's in the best interest of the American
people, while reauthorizing must-pass legislation and waiting for a
more appropriate vehicle to address our nation's retransmission consent
laws and regulations.
Ms. JACKSON LEE. Mr. Speaker, I rise to speak on the STELA.
First, I would like to thank Chairman Coble and Ranking Member Nadler
for holding two Judiciary Committee hearings in the past year where we
have examined the laws in the satellite television arena in Title 17 of
the United States Code (U.S.C.), and related issues.
The relevant part of STELA expires at the end of the year but I am
sure that those in the industry would have us do something before then
and preferably before the lame duck session after November.
I would note the inclusion of a provision in this bill which some
consumer groups find objectionable because it repeals the integration
ban which deprives consumers of choice. This is from the Energy and
Commerce Committee--though hopefully it will be worked out before the
President signs--because consumers must not be deprived of choices.
And now that the Supreme Court has decided the Aereo case, we have
another set of variables on the table.
I mention the Aereo case because it is the seminal case due to its
timing but it also reminds us of how ephemeral our work can be in this
Committee and this Congress.
Back in 1992 and through all of the other reauthorizations of STELA
and the concurrent surge of innovation from the late 1990's until
present day--who could have contemplated the existence of an Aereo,
HULU, Netflix, or Pandora?
In doing so we are able to take a walk down the memory lane of analog
and digital television, the role of cable and satellite providers, vis-
a-vis their network partners.
It is useful to note that in the 18th Congressional District my
constituents are able to avail themselves of DISH, Comcast, ATT, and
even Phonoscope which I believe is one of the oldest in the nation and
a Houston, Texas company since 1953.
In looking at these laws, we must note the role of the Copyright
Office which released a widely-read report on the Satellite Television
Extension and Localism Act in August 2011 as ordered by the last
reauthorization, and the GAO report which focused on consumer issues.
Americans from Houston, Texas, Chicago, New York, the Bay Area, and
all across this great nation benefit from a broadcast system which
consists of the laws which undergird the system, buffeted by the policy
and practices by which transmitters, providers, artists, writers,
musicians, and other creators of all stripes benefit.
The system stands on principles of balance and fairness which allow
for continued innovation while not infringing on the property rights of
others.
In my state, I see satellite dishes in urban and rural areas but it
seems like a higher percentage of rural homes have DISH or DIRECTV than
in the cities and towns. Is that an accurate observation and if so,
why?
What is the justification for a 30 foot outdoor rooftop antenna being
the standard for measuring whether a home can get a broadcaster over-
the-air signal?
Who has 30 foot antennas on their rooftops these days? Can folks even
go out and buy those and install them easily?
Shouldn't the standard reflect the consumer realities and be changed
to a regular indoor antenna that can be picked up at most electronics
stores?
What are the criteria for a household to be considered `unserved'?
Does the current definition of unserved households adequately account
for those homes that do not receive over-the-air signals?
This will be the 6th reauthorization of STELA but to my knowledge
there has never before been a discussion of these blackouts, because
they simply didn't happen in the past like they do today. We've gone
from zero blackouts to 12 in 2010 and now 127 in 2013.
Viewers in my state have experienced their fair share of blackouts
and I stand with them in saying: we don't like them.
We must all agree that blackouts must stop.
The statutory framework for the retransmission of broadcast
television signals has been based on a distinction between local and
distant signals.
The signals of significantly viewed stations and the signals of in-
state, out-of-market stations in the four states that satellite
operators were allowed to import into orphan counties under the
exceptions in SHVERA, originate outside the market into which they are
imported; in that regard, they are distant signals and they have been
subject to the Section 119 distant signal statutory copyright license.
Since significantly viewed stations and the ``exception'' stations
can be presumed to be providing programming of local or state-wide
interest to counties in particular local markets, arguably that content
could be viewed as local to the counties into which they are imported
and should be treated accordingly.
STELA modified the Copyright Act to treat those signals as local,
moving the relevant provisions from Section 119 to Section 122.
If a broadcaster opts to negotiate a retransmission consent
agreement, cable companies are no longer required to broadcast that
signal pursuant to the must-carry requirement. Furthermore, if
negotiations for retransmission consent fail, cable companies are not
permitted to retransmit the broadcast signals that they have not been
granted a license to retransmit. This is precisely what has happened in
the dispute between Time Warner Cable and CBS Broadcasting.
My concern is that when retransmission consent negotiations fail,
consumers often look to the Federal Communications Commission (FCC) to
mediate the dispute. However, the FCC actually has very little
authority over retransmission consent negotiations. The Communications
Act requires that programming be offered on a non-discriminatory basis,
and that the negotiations be conducted in good faith.
The FCC has the authority to enforce both of these requirements, but
does not appear to have the authority to force the companies to reach
an agreement, or the ability to order the companies to continue to
provide programming to consumers who have lost access while the dispute
is being resolved. Therefore, as was seen in the debacle that was the
TWC-CBS negotiation, unless negotiations are not occurring in ``good
faith'' the FCC has little power over retransmission consent
agreements.
STELA clarified that a significantly viewed signal may only be
provided in high definition format if the satellite carrier is passing
through all of the high definition programming of the corresponding
local station in high definition format as well; if the local station
is not providing programming in high definition format, then the
satellite operator is not restricted from providing the significantly
viewed station's signal in high definition format.
Studying What the Impact Would Be If the Statutory Licensing System
for Satellite and Cable Retransmission of Distant Broadcast Signals
Were Eliminated
The United States Copyright Office has proposed that Congress abolish
Sections 111 and 119 of the Copyright Law, arguing that the statutory
licensing systems created by these provisions result in lower payments
to copyright holders than would be made if compensation were left to
market negotiations. According to the Copyright Office, the cable and
satellite industries no longer are nascent entities in need of
government subsidies, have substantial market power, and are able to
negotiate private agreements with copyright owners for programming
carried on distant broadcast signals.
Congress must have a role in the broadcasting space but whether that
is doing away with compulsory licensing or becoming even more involved
is what needs to be discussed.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Oregon (Mr. Walden) that the House suspend the rules and
pass the bill, H.R. 4572, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title was amended so as to read: ``A bill to amend the
Communications Act of 1934 and title 17, United States Code, to extend
expiring provisions relating to the retransmission of signals of
television broadcast stations, and for other purposes.''.
A motion to reconsider was laid on the table.
____________________