[Congressional Record (Bound Edition), Volume 150 (2004), Part 15]
[House]
[Pages 21089-21103]
[From the U.S. Government Publishing Office, www.gpo.gov]




    SATELLITE HOME VIEWER EXTENSION AND REAUTHORIZATION ACT OF 2004

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

                               H.R. 4518

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

     SECTION 1. SHORT TITLES; TABLE OF CONTENTS.

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

Sec. 1. Short titles; table of contents.

           TITLE I--STATUTORY LICENSE FOR SATELLITE CARRIERS

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

         TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

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

           TITLE I--STATUTORY LICENSE FOR SATELLITE CARRIERS

     SEC. 101. EXTENSION OF AUTHORITY.

       (a) In General.--Section 4(a) of the Satellite Home Viewer 
     Act of 1994 (17 U.S.C. 119 note; Public Law 103-369; 108 
     Stat. 3481) is amended by striking ``December 31, 2004'' and 
     inserting ``December 31, 2009''.
       (b) Extension for Certain Subscribers.--Section 119(e) of 
     title 17, United States Code, is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2009''.

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

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

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

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

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

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

       ``(I) a list identifying (by name and address, including 
     street or rural route number, city, State, and zip code) any 
     persons

[[Page 21090]]

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

       ``(iii) Use of subscriber information.--Subscriber 
     information submitted by a satellite carrier under this 
     subparagraph may be used only for purposes of monitoring 
     compliance by the satellite carrier with this subsection.
       ``(iv) Applicability.--The submission requirements of this 
     subparagraph shall apply to a satellite carrier only if the 
     network to which the submissions are to be made places on 
     file with the Register of Copyrights a document identifying 
     the name and address of the person to whom such submissions 
     are to be made. The Register shall maintain for public 
     inspection a file of all such documents.'';
       (3) by striking paragraph (8);
       (4) by redesignating paragraphs (9) through (12) as 
     paragraphs (10) through (13), respectively;
       (5) by redesignating paragraphs (3) through (7) as 
     paragraphs (5) through (9), respectively;
       (6) by inserting after paragraph (2) the following:
       ``(3) Secondary transmissions of significantly viewed 
     signals.--
       ``(A) In general.--Notwithstanding the provisions of 
     paragraph (2)(B), and subject to subparagraph (B) of this 
     paragraph, the statutory license provided for in paragraphs 
     (1) and (2) shall apply to the secondary transmission of the 
     primary transmission of a network station or a superstation 
     to a subscriber who resides outside the station's local 
     market (as defined in section 122(j)) but within a community 
     in which the signal has been determined by the Federal 
     Communications Commission, to be significantly viewed in such 
     community, pursuant to the rules, regulations and 
     authorizations of the Federal Communications Commission in 
     effect on April 15, 1976, applicable to determining with 
     respect to a cable system whether signals are significantly 
     viewed in a community.
       ``(B) Limitation.--Subparagraph (A) shall apply only to 
     secondary transmissions of the primary transmissions of 
     network stations and superstations to subscribers who receive 
     secondary transmissions from a satellite carrier pursuant to 
     the statutory license under section 122.
       ``(C) Waiver.--
       ``(i) In general.--A subscriber who is denied the secondary 
     transmission of the primary transmission of a network station 
     under subparagraph (B) may request a waiver from such denial 
     by submitting a request, through the subscriber's satellite 
     carrier, to the network station in the local market 
     affiliated with the same network where the subscriber is 
     located. The network station shall accept or reject the 
     subscriber's request for a waiver within 30 days after 
     receipt of the request. If the network station fails to 
     accept or reject the subscriber's request for a waiver within 
     that 30-day period, that network station shall be deemed to 
     agree to the waiver request. Unless specifically stated by 
     the network station, a waiver that was granted before the 
     date of the enactment of the Satellite Home Viewer Extension 
     and Reauthorization Act of 2004 under section 339(c)(2) of 
     the Communications Act of 1934 shall not constitute a waiver 
     for purposes of this subparagraph.
       ``(ii) Sunset.--The authority under clause (i) to grant 
     waivers shall terminate on December 31, 2008, and any such 
     waiver in effect shall terminate on that date.'';
       (7) in paragraph (2)(B)(i), by adding at the end the 
     following new sentence: ``The limitation in this clause shall 
     not apply to secondary transmissions under paragraph (3).''.

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

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

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

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

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

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

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

       ``(C) Future applicability.--The statutory license under 
     paragraph (2) shall not apply to the secondary transmission 
     by a satellite carrier of a primary transmission of a network 
     station to a person who--
       ``(i) is not a subscriber lawfully receiving such secondary 
     transmission as of the date of the enactment of the Satellite 
     Home Viewer Extension and Reauthorization Act of 2004; and
       ``(ii) at the time such person seeks to subscribe to 
     receive such secondary transmission, resides in a local 
     market where the satellite carrier makes available to that 
     person the secondary transmission of the primary transmission 
     of a local network station affiliated with the same 
     television network pursuant to the statutory license under 
     section 122.
       ``(D) Other provisions not affected.--This paragraph shall 
     not affect the applicability of the statutory license to 
     secondary transmissions under paragraph (3) or to unserved 
     households included under paragraph (12).
       ``(E) Waiver.--A subscriber who is denied the secondary 
     transmission of a network station under subparagraph (C) may 
     request a

[[Page 21091]]

     waiver from such denial by submitting a request, through the 
     subscriber's satellite carrier, to the network station in the 
     local market affiliated with the same network where the 
     subscriber is located. The network station shall accept or 
     reject the subscriber's request for a waiver within 30 days 
     after receipt of the request. If the network station fails to 
     accept or reject the subscriber's request for a waiver within 
     that 30-day period, that network station shall be deemed to 
     agree to the waiver request. Unless specifically stated by 
     the network station, a waiver that was granted before the 
     date of the enactment of the Satellite Home Viewer Extension 
     and Reauthorization Act of 2004 under section 339(c)(2) of 
     the Communications Act of 1934 shall not constitute a waiver 
     for purposes of this subparagraph.
       ``(F) Available defined.--For purposes of this paragraph, a 
     satellite carrier makes available a secondary transmission of 
     the primary transmission of local station to a subscriber or 
     person if the satellite carrier offers that secondary 
     transmission to other subscribers who reside in the same zip 
     code as that subscriber or person.''.
       (2) Subsection (a) is amended by adding at the end the 
     following:
       ``(14) Waivers.--A subscriber who is denied the secondary 
     transmission of a signal of a network station under 
     subsection (a)(2)(B) may request a waiver from such denial by 
     submitting a request, through the subscriber's satellite 
     carrier, to the network station asserting that the secondary 
     transmission is prohibited. The network station shall accept 
     or reject a subscriber's request for a waiver within 30 days 
     after receipt of the request. If a television network station 
     fails to accept or reject a subscriber's request for a waiver 
     within the 30-day period after receipt of the request, that 
     station shall be deemed to agree to the waiver request and 
     have filed such written waiver. Unless specifically stated by 
     the network station, a waiver that was granted before the 
     date of the enactment of the Satellite Home Viewer Extension 
     and Reauthorization Act of 2004 under section 339(c)(2) of 
     the Communications Act of 1934, and that was in effect on 
     such date of enactment, shall constitute a waiver for 
     purposes of this subparagraph.''.
       (3) Subsection (b)(1) is amended by striking subparagraph 
     (B) and inserting the following:
       ``(B) a royalty fee for that 6-month period, computed by 
     multiplying the total number of subscribers receiving each 
     secondary transmission of each superstation or network 
     station during each calendar month by the appropriate rate in 
     effect under this section.''.
       (4) Subsection (b)(1) is further amended by adding at the 
     end the following flush sentence: ``Notwithstanding the 
     provisions of subparagraph (B), a satellite carrier whose 
     secondary transmissions are subject to statutory licensing 
     under paragraph (1) or (2) of subsection (a) shall have no 
     royalty obligation for secondary transmissions to a 
     subscriber under paragraph (3) of such subsection.''.
       (5) Subsection (c) is amended--
       (A) by amending paragraph (1) to read as follows:
       ``(1) Applicability and determination of royalty fees.--The 
     appropriate fee for purposes of determining the royalty fee 
     under subsection (b)(1)(B) shall be the appropriate fee set 
     forth in part 258 of title 37, Code of Federal Regulations, 
     as in effect on July 1, 2004, as modified under this 
     subsection.'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``July 1, 1996,'' and 
     inserting ``January 2, 2005,'';
       (ii) in subparagraph (C)--

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

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

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

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

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

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

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

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

     SEC. 105. DEFINITIONS.

       Section 119(d) of title 17, United States Code, is 
     amended--

[[Page 21092]]

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

     SEC. 106. EFFECT ON CERTAIN PROCEEDINGS.

       Nothing in this title shall modify any remedy imposed on a 
     party that is required by the judgment of a court in any 
     action that was brought before May 1, 2004, against that 
     party for a violation of section 119 of title 17, United 
     States Code.

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

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

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

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

     SEC. 109. STUDY.

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

         TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

     SEC. 201. EXTENSION OF RETRANSMISSION CONSENT EXEMPTION.

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

     SEC. 202. CABLE/SATELLITE COMPARABILITY.

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

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

       ``(a) Significantly Viewed Stations.--In addition to the 
     broadcast signals that subscribers may receive under section 
     338 and 339, a satellite carrier is also authorized to 
     retransmit to a subscriber located in a community the signal 
     of any station located outside the local market in which such 
     subscriber is located, to the extent such signal--
       ``(1) has, before the date of enactment of the Satellite 
     Home Viewer Extension and Reauthorization Act of 2004, been 
     determined by the Federal Communications Commission to be a 
     signal a cable operator may carry as significantly viewed in 
     such community, except to the extent that such signal is 
     prevented from being carried by a cable system in such 
     community under the Commission's network nonduplication and 
     syndicated exclusivity rules; or
       ``(2) is, after such date of enactment, determined by the 
     Commission to be significantly viewed in such community in 
     accordance with the same standards and procedures concerning 
     shares of viewing hours and audience surveys as are 
     applicable under the rules, regulations, and authorizations 
     of the Commission to determining with respect to a cable 
     system whether signals are significantly viewed in a 
     community.
       ``(b) Limitations.--
       ``(1) Analog service limited to subscribers taking local-
     into-local service.--With respect to a signal that originates 
     as an analog signal of a network station, this section shall 
     apply only to retransmissions to subscribers of a satellite 
     carrier who receive retransmissions from that satellite 
     carrier pursuant to section 338.
       ``(2) Digital service limitations.--With respect to a 
     signal that originates as a digital signal of a network 
     station, this section shall apply only if--
       ``(A) the subscriber receives from the satellite carrier 
     pursuant to section 338 the retransmission of the digital 
     signal of a network station in the subscriber's local market 
     that is affiliated with the same television network; and
       ``(B) either--
       ``(i) the retransmission of the local network station 
     occupies at least the equivalent bandwidth as the digital 
     signal retransmitted pursuant to this section; or

[[Page 21093]]

       ``(ii) the retransmission of the local network station is 
     comprised of the entire bandwidth of the digital signal 
     broadcast by such local network station.
       ``(3) Limitation not applicable where no network 
     affiliates.--The limitations in paragraphs (1) and (2) shall 
     not prohibit a retransmission under this section to a 
     subscriber located in a local market in which there are no 
     network stations affiliated with the same television network 
     as the station whose signal is being retransmitted pursuant 
     to this section.
       ``(4) Authority to grant station-specific waivers.--
     Paragraphs (1) and (2) shall not prohibit a retransmission of 
     a network station to a subscriber if and to the extent that 
     the network station in the local market in which the 
     subscriber is located, and that is affiliated with the same 
     television network, has privately negotiated and 
     affirmatively granted a waiver from the requirements of 
     paragraph (1) and (2) to such satellite carrier with respect 
     to retransmission of the significantly viewed station to such 
     subscriber.
       ``(c) Publication and Modifications of Lists; 
     Regulations.--
       ``(1) In general.--The Commission shall--
       ``(A) within 60 days after the date of enactment of the 
     Satellite Home Viewer Extension and Reauthorization Act of 
     2004--
       ``(i) publish a list of the stations that are eligible for 
     retransmission under subsection (a) (1) and the communities 
     in which such stations are eligible for such retransmission; 
     and
       ``(ii) commence a rulemaking proceeding to implement this 
     section by publication of a notice of proposed rulemaking;
       ``(B) adopt rules pursuant to such rulemaking within one 
     year after such date of enactment.
       ``(2) Public availability of list.--The Commission shall 
     make readily available to the public in electronic form, on 
     the Internet website of the Commission or other comparable 
     facility, a list of the stations that are eligible for 
     retransmission under subsection (a) and the communities in 
     which such stations are eligible for such retransmission. The 
     Commission shall update such list within 10 business days 
     after the date on which the Commission issues an order making 
     any modification of such stations and communities.
       ``(3) Modifications.--In addition to cable operators and 
     television broadcast station licensees, the Commission shall 
     permit a satellite carrier to petition for decisions and 
     orders--
       ``(A) by which stations may be added to those that are 
     eligible for retransmission under subsection (a), and by 
     which communities may be added in which such stations are 
     eligible for such retransmission; and
       ``(B) by which network nonduplication or syndicated 
     exclusivity regulations are applied to the retransmission in 
     accordance with subsection (e).
       ``(d) Effect on Other Obligations and Rights.--
       ``(1) No effect on carriage obligations.--Carriage of a 
     signal under this section is not mandatory, and any right of 
     a station licensee to have the signal of such station carried 
     under section 338 is not affected by the eligibility of such 
     station to be carried under this section.
       ``(2) Retransmission consent rights not affected.--The 
     eligibility of the signal of a station to be carried under 
     this section does not affect any right of the licensee of 
     such station to grant (or withhold) retransmission consent 
     under section 325(b)(1).
       ``(e) Network Nonduplication and Syndicated Exclusivity.--
       ``(1) Not applicable except as provided by commission 
     regulations.--Signals eligible to be carried under this 
     section are not subject to the Commission's regulations 
     concerning network nonduplication or syndicated exclusivity 
     unless, pursuant to regulations adopted by the Commission, 
     the Commission determines to permit network nonduplication or 
     syndicated exclusivity to apply within the appropriate zone 
     of protection.
       ``(2) Limitation.--Nothing in this subsection or Commission 
     regulations shall permit the application of network 
     nonduplication or syndicated exclusivity regulations to the 
     retransmission of distant signals of network stations that 
     are carried by a satellite carrier pursuant to a statutory 
     license under section 119(a)(2)(A) or (B), with respect to 
     persons who reside in unserved households, under 
     119(a)(4)(A), or under section 119(a)(12).
       ``(f) Enforcement.--
       ``(1) Orders and damages.--Upon complaint, the Commission 
     shall issue a cease and desist order to any satellite carrier 
     found to have violated this section in carrying any 
     television broadcast station. Such order may, if a 
     complaining station requests damages--
       ``(A) provide for the award of damages to a complaining 
     station that establishes that the violation was committed in 
     bad faith, in an amount up to $50 per subscriber, per 
     station, per day of the violation; and
       ``(B) provide for the award of damages to a prevailing 
     satellite carrier if the Commission determines that the 
     complaint was frivolous, in an amount up to $50 per 
     subscriber alleged to be in violation, per station alleged, 
     per day of the alleged violation.
       ``(2) Commission decision.--The Commission shall issue a 
     final determination resolving a complaint brought under this 
     subsection not later than 180 days after the submission of a 
     complaint under this subsection. The Commission may hear 
     witnesses if it clearly appears, based on written filings by 
     the parties, that there is a genuine dispute about material 
     facts. Except as provided in the preceding sentence, the 
     Commission may issue a final ruling based on written filings 
     by the parties.
       ``(3) Remedies in addition.--The remedies under this 
     subsection are in addition to any remedies available under 
     title 17, United States Code.
       ``(4) No effect on copyright proceedings.--Any 
     determination, action, or failure to act of the Commission 
     under this subsection shall have no effect on any proceeding 
     under title 17, United States Code, and shall not be 
     introduced in evidence in any proceeding under that title. In 
     no instance shall a Commission enforcement proceeding under 
     this subsection be required as a predicate to the pursuit of 
     a remedy available under title 17.
       ``(g) Notices Concerning Significantly Viewed Stations.--
     Each satellite carrier that proposes to commence the 
     retransmission of a station pursuant to this section in any 
     local market shall--
       ``(1) not less than 60 days before commencing such 
     retransmission, provide a written notice to any television 
     broadcast station in such local market of such proposal; and
       ``(2) designate on such carrier's website all significantly 
     viewed signals carried pursuant to section 340 and the 
     communities in which the signals are carried.
       ``(h) Additional Corresponding Changes in Regulations.--
       ``(1) Community-by-community elections.--The Commission 
     shall, no later than April 30, 2005, revise section 76.66 of 
     its regulations (47 CFR 76.66), concerning satellite 
     broadcast signal carriage, to permit (at the next cycle of 
     elections under section 325) a television broadcast station 
     that is located in a local market into which a satellite 
     carrier retransmits a television broadcast station pursuant 
     to section 338, to elect, with respect to such satellite 
     carrier, between retransmission consent pursuant to such 
     section 325 and mandatory carriage pursuant to section 338 
     separately for each county within such station's local 
     market, if--
       ``(A) the satellite carrier has notified the station, 
     pursuant to paragraph (3), that it intends to carry another 
     affiliate of the same network pursuant to this section during 
     the relevant election period in the station's local market; 
     or
       ``(B) on the date notification under paragraph (3) was due, 
     the satellite carrier was retransmitting into the station's 
     local market pursuant to this section an affiliate of the 
     same television network.
       ``(2) Unified negotiations.--In revising its regulations as 
     required by paragraph (1), the Commission shall provide that 
     any such station shall conduct a unified negotiation for the 
     entire portion of its local market for which retransmission 
     consent is elected.
       ``(3) Additional provisions.--The Commission shall, no 
     later than April 30, 2005, revise its regulations to provide 
     the following:
       ``(A) Notifications by satellite carrier.--A satellite 
     carrier's retransmission of television broadcast stations 
     pursuant to this section shall be subject to the following 
     limitations:
       ``(i) In any local market in which the satellite carrier 
     provides service pursuant to section 338 on the date of 
     enactment of the Satellite Home Viewer Extension and 
     Reauthorization Act of 2004, the carrier may notify a 
     television broadcast station in that market, at least 60 days 
     prior to any date on which the station must thereafter make 
     an election under section 76.66 of the Commission's 
     regulations (47 CFR 76.66), of--

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

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

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

[[Page 21094]]

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

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

       (a) Amendments.--Section 338 of the Communications Act of 
     1934 (47 U.S.C. 338(d)) is amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (j) and (k), respectively;
       (2) by inserting after subsection (f) the following new 
     subsection:
       ``(g) Carriage of Local Stations on a Single Dish.--
       ``(1) Single dish.--Each satellite carrier that retransmits 
     the analog signals of local television broadcast stations in 
     a local market shall retransmit such analog signals in such 
     market by means of a single reception antenna and associated 
     equipment.
       ``(2) Exception.--If the carrier retransmits signals in the 
     digital television service, the carrier shall retransmit such 
     digital signals in such market by means of a single reception 
     antenna and associated equipment, but such antenna and 
     associated equipment may be separate from the single 
     reception antenna and associated equipment used for analog 
     television service signals.
       ``(3) Effective date.--The requirements of paragraphs (1) 
     and (2) of this subsection shall apply on and after one year 
     after the date of enactment of the Satellite Home Viewer 
     Extension and Reauthorization Act of 2004.
       ``(4) Notice of disruptions.--A carrier that is providing 
     signals of a local television broadcast station in a local 
     market under this section on the date of enactment of the 
     Satellite Home Viewer Extension and Reauthorization Act of 
     2004 shall, not later than 270 days after such date of 
     enactment, provide to the licensees for such stations and the 
     carrier's subscribers in such local market a notice that 
     displays prominently and conspicuously a clear statement of--
       ``(A) any reallocation of signals between different 
     reception antennas and associated equipment that the carrier 
     intends to make in order to comply with the requirements of 
     this subsection;
       ``(B) the need, if any, for subscribers to obtain an 
     additional reception antenna and associated equipment to 
     receive such signals; and
       ``(C) any cessation of carriage or other material change in 
     the carriage of signals as a consequence of the requirements 
     of this paragraph.''.
       (b) Conforming Amendments: Commission Enforcement of 
     Section; Low Power Television Stations.--
       (1) Section 338(a) of such Act is amended by striking 
     paragraphs (1) and (2) and inserting the following:
       ``(1) In general.--Each satellite carrier providing, under 
     section 122 of title 17, United States Code, secondary 
     transmissions to subscribers located within the local market 
     of a television broadcast station of a primary transmission 
     made by that station shall carry upon request the signals of 
     all television broadcast stations located within that local 
     market, subject to section 325(b).
       ``(2) Remedies for failure to carry.--In addition to the 
     remedies available to television broadcast stations under 
     section 501(f) of title 17, United States Code, the 
     Commission may use the Commission's authority under this Act 
     to assure compliance with the obligations of this subsection, 
     but in no instance shall a Commission enforcement proceeding 
     be required as a predicate to the pursuit of a remedy 
     available under such section 501(f).
       ``(3) Low power station carriage optional.--No low power 
     television station whose signals are provided under section 
     119(a)(14) of title 17, United States Code, shall be entitled 
     to insist on carriage under this section, regardless of 
     whether the satellite carrier provides secondary 
     transmissions of the primary transmissions of other stations 
     in the same local market pursuant to section 122 of such 
     title, nor shall any such carriage be considered in 
     connection with the requirements of subsection (c) of this 
     section.''.
       (2) Section 338(c)(1) of such Act is amended by striking 
     ``subsection (a)'' and inserting ``subsection (a)(1)''.
       (3) Section 338(k) of such Act (as redesignated by 
     subsection (a)(1)) is amended--
       (A) by redesignating paragraphs (4) through (7) as 
     paragraphs (5) through (8), respectively; and
       (B) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Low power television station.--The term `low power 
     television station' means a low power television station as 
     defined under section 74.701(f) of title 47, Code of Federal 
     Regulations, as in effect on June 1, 2004. For purposes of 
     this paragraph, the term ``low power television station'' 
     includes a low power television station that has been 
     accorded primary status as a Class A television licensee 
     under section 73.6001(a) of title 47, Code of Federal 
     Regulations.''.

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

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

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

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

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

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

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

       ``(C) Future applicability.--A satellite carrier may not 
     provide a distant signal

[[Page 21095]]

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

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

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

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

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

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

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

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

       ``(F) Other provisions not affected.--This paragraph shall 
     not affect the eligibility of a subscriber to receive 
     secondary transmissions under section 340 of this Act or as 
     an unserved household included under section 119(a)(12) of 
     title 17, United States Code.
       ``(G) Available defined.--For purposes of this paragraph, a 
     satellite carrier makes available a local signal to a 
     subscriber or person if the satellite carrier offers that 
     local signal to other subscribers who reside in the same zip 
     code as that subscriber or person.''.

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

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

     SEC. 206. PRIVACY RIGHTS OF SATELLITE SUBSCRIBERS.

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

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

[[Page 21096]]

     actions as are necessary to prevent unauthorized access to 
     such information by a person other than the subscriber or 
     satellite carrier.
       ``(B) Exceptions.--A satellite carrier may disclose such 
     information if the disclosure is--
       ``(i) necessary to render, or conduct a legitimate business 
     activity related to, a satellite service or other service 
     provided by the satellite carrier to the subscriber;
       ``(ii) subject to paragraph (9), made pursuant to a court 
     order authorizing such disclosure, if the subscriber is 
     notified of such order by the person to whom the order is 
     directed;
       ``(iii) a disclosure of the names and addresses of 
     subscribers to any satellite service or other service, if--

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

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

     The remedy provided by this subsection shall be in addition 
     to any other lawful remedy available to a satellite 
     subscriber.
       ``(8) Rule of construction.--Nothing in this title shall be 
     construed to prohibit any State from enacting or enforcing 
     laws consistent with this section for the protection of 
     subscriber privacy.
       ``(9) Court orders.--Except as provided in paragraph 
     (4)(B)(iv), a governmental entity may obtain personally 
     identifiable information concerning a satellite subscriber 
     pursuant to a court order only if, in the court proceeding 
     relevant to such court order--
       ``(A) such entity offers clear and convincing evidence that 
     the subject of the information is reasonably suspected of 
     engaging in criminal activity and that the information sought 
     would be material evidence in the case; and
       ``(B) the subject of the information is afforded the 
     opportunity to appear and contest such entity's claim.''.
       (b) Effective Date.--Section 338(i) of the Communications 
     Act of 1934 (47 U.S.C. 338(i)) as amended by subsection (a) 
     of this section shall be effective 60 days after the date of 
     enactment of this Act.

     SEC. 207. RECIPROCAL BARGAINING OBLIGATIONS.

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

     SEC. 208. UNSERVED DIGITAL CUSTOMERS.

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

     SEC. 209. REDUCTION OF REQUIRED TESTS.

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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. DeLay) and the gentleman from California (Mr. Berman) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Texas (Mr. DeLay).

[[Page 21097]]


  Mr. DeLAY. Mr. Speaker, I ask unanimous consent that the chairman of 
the Committee on Energy and Commerce, the gentleman from Texas (Mr. 
Barton), and the chairman of the Committee on the Judiciary, the 
gentleman from Wisconsin (Mr. Sensenbrenner), each be allowed to 
control 10 minutes of the time currently under my control.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. SENSENBRENNER. Mr. Speaker, I ask unanimous consent that the 
gentleman from Texas (Mr. Barton) and I be allowed to yield portions of 
the time that has been yielded to us by the majority leader.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  Mr. SENSENBRENNER. Mr. Speaker, I yield myself 6 minutes.
  Mr. Speaker, I thank the majority leader for calling up this bill 
which is appropriately named in tribute to our colleague, the gentleman 
from Louisiana (Mr. Tauzin), who will retire at the end of this year 
after having served the citizens of Louisiana for more than a quarter 
century.
  This bill is a product of a remarkable collaborative effort that has 
involved members of the Committee on the Judiciary and Committee on 
Energy and Commerce. I would like to especially thank the gentleman 
from Texas (Mr. Barton) for his excellent cooperation through this 
entire process.
  The manager's amendment to the bill, which the Committee on the 
Judiciary approved unanimously on July 7, 2004, incorporates H.R. 4501 
which was the Committee on Energy and Commerce version of the bill 
reported on July 22.
  The manager's amendment incorporates important refinements to both 
the copyright and communications acts. These provisions are designed to 
extend for an additional 5 years the license that permits satellite TV 
companies such as DirecTV and EchoStar to retransmit to their 
subscribers TV programming shown on distant network stations and 
superstations. The extension will ensure that Americans who live in 
rural areas where they have trouble receiving signals from the regular 
broadcast stations will continue to have access to network TV 
programming.
  Significantly, this bill does not simply preserve the status quo for 
the statutory period. Instead, the bill changes both the copyright and 
communications acts to ensure, first, that consumers will have greater 
choice in programming; second, that satellite providers will have 
greater freedom to deliver the content consumers desire; third, that 
free, over-the-air local broadcasters will have the opportunity to 
serve needs that are specific to their communities; and, fourth, the 
copyright owners will enjoy the first compulsory royalty fee adjustment 
in nearly 5 years.
  The amendments have been carefully negotiated and crafted. They have 
benefited from an open process which has involved at least four 
committee hearings, the introduction and mark-up of two committee-
reported bills to the House, and a willingness to consider numerous 
refinements to achieve the right policy and to gain consensus.
  As a result, the bill is supported by numerous organizations 
including the National Association of Broadcasters, numerous local 
broadcast stations, and the Capital Broadcasting Company. In addition, 
the royalty provision contained in the judiciary title has been 
specifically endorsed by effective stakeholders. This is a culmination 
of a painstaking effort under the leadership of the gentleman from 
Texas (Mr. Smith) and the ranking member, the gentleman from California 
(Mr. Berman), who encouraged affected parties to negotiate a voluntary 
agreement.
  As a result, the section 119 rate provisions contained in the 
manager's amendment are now supported by the two largest DBS providers, 
DirecTV and EchoStar; their trade association, the Satellite 
Broadcasting and Communications Association, and major copyright owners 
including the Motion Picture Association and the Office of the 
Commission of Baseball. Together those entities represent the copyright 
owners who receive the overwhelming majority of copyright royalties 
paid under the license and the satellite carriers who make the vast 
majority of such payments.
  In return for extending the license to satellite companies, the bill 
does require the beneficiaries to accept certain reporting 
requirements. These requirements are designed to protect the legitimate 
interests of copyright owners and free over-the-air broadcasters.
  I would like to take a moment to acknowledge the contributions of the 
subcommittee chairman, the gentleman from Texas (Mr. Smith). We could 
not have reached this point without his steady work. I also want to 
thank the gentleman from Texas (Mr. Barton) for all his help and 
support during the process. Thanks also go to other key players, the 
gentleman from Michigan (Mr. Upton), the gentleman from Michigan (Mr. 
Conyers), the gentleman from California (Mr. Berman), the gentleman 
from Michigan (Mr. Dingell), and the gentleman from Massachusetts (Mr. 
Markey), all of whom have made significant contributions to this 
effort. I appreciate all their efforts.
  I am pleased that we have been able to work together in developing 
this joint bill, and I look forward to building on this success next 
year. The bill promotes the interests of consumers, satellite 
providers, broadcasters, and copyright owners. It is a balanced bill 
and deserves the support of this House.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BERMAN. Mr. Speaker, I ask unanimous consent that the gentleman 
from Texas (Mr. Gonzalez) be allowed to control 10 minutes of my time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. BERMAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 4518 and ask my colleagues to 
vote in favor of its passage. I am happy to join my friend from 
Wisconsin (Mr. Sensenbrenner), the chairman of the committee, the 
gentleman who rolled me yesterday, in supporting this legislation.
  This bill is a must-pass piece of legislation. Its core provision re-
authorizes the statutory license found in section 119 of the Copyright 
Act which is due to expire on December 31 of this year. The section 119 
enables satellite television companies to retransmit distant 
superstation and network signals to the subscribers who cannot obtain 
comparable signals over the air.
  Extension of the section 119 license is very important to many 
satellite TV subscribers who might otherwise lose access to a number of 
popular television stations. The section 119 license is also of great 
benefit to satellite TV companies as it provides them with the 
equivalent of a valuable government subsidy. It guarantees satellite 
companies the ability to retransmit copyrighted broadcast programming, 
without the permission of the copyright owners and to do so at a 
government set rate.
  I support this extension of the section 119 license despite my 
longstanding opposition to statutory licensing of copyrighted works. 
Section 119 was originally enacted in order to help satellite 
television become competitive with cable television which benefits from 
an analogous license. With 22 percent of the pay TV market, it appears 
that satellite television has reached that goal. However, expiration of 
section 119 without simultaneous expiration of the analogous statutory 
license for cable television may upset that competitive balance. When 
Congress revisits this issue in 2009, it may reach a different 
conclusion or even decide to do away with both licenses. Until then, 
however, we should strive to maintain a competitive balance.
  The legislation before us does far more than simply reauthorize the 
section 119 statutory license. It is a combination of two bills that 
emerged from the Committee on the Judiciary and the Committee on Energy 
and Commerce. As such, it is the culmination of

[[Page 21098]]

a long, sometimes difficult but ultimately successful collaboration 
between our two committees.
  I commend the chairmen of both committees, the Committee on Energy 
and Commerce and the Committee on the Judiciary, for their steady and 
inclusive stewardship throughout this collaborative effort. I leave it 
to my colleagues of the Committee on Energy and Commerce to describe 
the provisions of title II which fall in their jurisdiction. However, I 
do want to express my support for title II and in particular the single 
dish requirement contained therein.
  This provision requires that satellite TV providers enable customers 
to obtain all local broadcast programming through a single satellite 
dish, rather than having to install two dishes. The one-dish 
requirement will prevent further de facto discrimination against 
broadcast stations carrying minority, religious, and public interest 
programming.
  As for title I, I am pleased most of all by its royalty provisions. 
These provisions represent a marked improvement over the provisions 
found in the Judiciary-reported version of H.R. 4518. The bill before 
us today does not mandate any increase in royalty rates. Nor does it 
establish a specific royalty rate for the retransmission of distant 
signals. Rather, the royalty rate will be set through adoption of a 
voluntary industry agreement, or in the absence of an acceptable 
agreement, by a copyright arbitration royalty panel.
  While I do not know its terms, I understand that a voluntary industry 
agreement on royalties has already been reached. EchoStar, DirecTV, the 
Satellite Broadcast Communications Associations, and the relevant 
copyright owners have written us a letter to this effect. The letter 
also expresses unequivocal support for the royalty provisions contained 
in the bill before us today. If no interested party raises a well-
founded objection, the legislation directs the copyright office to 
expeditiously adopt the voluntary industry agreement.
  The adoption of this agreement would represent perhaps the least 
contentious establishment of section 119 royalties since section 119 
was first enacted. All involved deserve a great deal of credit for 
reaching a mutually acceptable agreement in such a compressed time 
frame.
  Once again, Mr. Speaker, I note my support for H.R. 4518, as amended, 
and ask my colleagues to add their support.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BARTON of Texas. Mr. Speaker, do we have the time allocated 
equally on both sides, or do I need to yield time to the minority?
  The SPEAKER pro tempore. The gentleman from Texas (Mr. Barton) has 10 
minutes, and the time has been distributed as agreed to.
  Mr. BARTON of Texas. So the gentleman from Texas (Mr. Gonzalez) have 
10 minutes?
  The SPEAKER pro tempore. Yes, sir. I might point out for further 
clarification, the gentleman from California (Mr. Berman) has 10 
minutes and the gentleman from Texas (Mr. Gonzalez) has 10 minutes.
  Mr. BARTON of Texas. Mr. Speaker, I was under the impression that 
perhaps I needed to yield time to the gentleman from Texas (Mr. 
Gonzalez), but apparently not, so I yield myself such time as I may 
consume.
  Mr. Speaker, I will focus on what the gentleman from California (Mr. 
Berman) asked me to focus on, which is title II of H.R. 4518 which 
addresses a communications provision that originated in H.R. 4501. 
Before I do that, I do want to say how appreciative I am that we have 
all agreed to name this after the former chairman of the committee, the 
gentleman from Louisiana (Mr. Tauzin). It really is a tribute to him. 
He was an expert in telecommunications. He took a personal interest in 
telecommunications acts, and I am proud that my House colleagues have 
agreed that we can name the bill in his honor.
  I would also like to inform the House that another of our colleagues, 
the gentleman from Georgia (Mr. Norwood), a distinguished member of the 
Committee on Energy and Commerce, did have a lung implant last evening, 
and he is doing well today in the hospital. When he came out from 
anesthesia, his first question was was his staff at work today. So he 
was obviously doing well.

                              {time}  1330

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

[[Page 21099]]

will focus the remainder of my remarks to title II of H.R. 4518, as 
amended, which addresses the Communications Act provisions that 
originated in H.R. 4501.
  Current law authorizes direct broadcast satellite, DBS, operators, 
such as DirecTV and Echostar, to provide the signals of distant 
broadcast network stations to a consumer who cannot receive an over-
the-air signal from the local network stations. The Communications Act 
exempts satellite operators from having to obtain consent from a 
distant broadcaster to carry the signal into the local market. That 
exemption expires at the end of this year. The bill would extend it to 
December 31, 2009.
  Cable operators currently may carry certain out-of-market signals 
into a local market if the signals can be viewed by a ``significant 
number'' of people in the local market using over-the-air antennas. The 
bill would extend to satellite operators the authority to carry such 
significantly viewed signals on comparable terms as cable operators.
  Echostar currently uses two satellite dishes in some markets to 
provide local broadcast stations. Some broadcasters argue that this 
harms the ratings of stations on the second dish because not all 
customers are aware of, or want to install, the second dish. The bill 
would give Echostar 1 year from enactment to provide all local stations 
in a market on a single satellite dish.
  The bill also requires satellite operators to stop offering distant 
signals in markets where they carry local signals. It does, however, 
grandfather certain existing subscribers.
  Although broadcasters are starting to transmit in digital, their 
digital signals do not yet reach all consumers over the air. As a 
result, many consumers could not receive a digital signal over the air 
even if they had a digital television. Once the digital television 
transition is complete, analog broadcasts will cease. At that time, it 
will be important for satellite operators to be able to provide distant 
digital signals to consumers in ``white areas'' who cannot receive 
local digital signals over the air, just as satellite operators 
currently offer distant analog signals to subscribers who are 
``unserved'' over the air. The bill requires the Federal Communications 
Commission to submit a report to the House Energy and Commerce 
Committee at the end of 2005 on how it would propose to implement a 
digital white area once the LTV transition ends.
  Since its introduction about a decade ago, satellite television 
service has become a significant facilities-based competitor to cable 
service. Satellite retransmission of broadcast programming is 
responsible for much of the growth. Satellite-delivered television 
service started as a way to serve consumers, particularly in rural 
areas, who could not get adequate over-the-air reception and did not 
have access to cable. But DBS does more than serve otherwise unserved 
areas. Its nationwide coverage allows it to compete against cable 
operators, and in so doing it improves consumer options. Indeed, the 
presence of satellite operators has caused cable operators to upgrade 
their infrastructure to allow consumers to receive high-quality video 
and more channels, as well as interactive, broadband, video-on-demand, 
and Internet telephony services.
  By extending the expiring provisions, increasing parity, and 
promoting further competition, this legislation will continue to 
enhance service to consumers.
  I urge my colleagues to support the bill.
  Mr. Speaker, I reserve the balance of my time, and I ask unanimous 
consent that the gentleman from Michigan (Mr. Upton), the distinguished 
subcommittee chairman, control the balance of my time.
  The SPEAKER pro tempore (Mr. Whitfield). Is there objection to the 
request of the gentleman from Texas?
  There was no objection.
  Mr. GONZALEZ. Mr. Speaker, I yield myself as much time as I may 
consume.
  Mr. Speaker, I rise in support of H.R. 4518, the Satellite Home 
Viewer Extension Reauthorization Act of 2004. I would like to thank the 
gentleman from Texas (Chairman Barton) and the gentleman from Wisconsin 
(Chairman Sensenbrenner), the gentleman from Michigan (Ranking Member 
Dingell) and the gentleman from Michigan (Ranking Member Conyers) and 
the subcommittee chairmen and ranking members for their hard work on 
this piece of legislation.
  H.R. 4518 is a comprehensive, bipartisan bill crafted jointly by the 
Committee on Energy and Commerce and the Committee on the Judiciary 
that will preserve localism, protect consumer privacy and increase 
competition between cable and satellite companies.
  Local broadcasters play a vital role in providing to the communities 
they serve local news and weather, information on community events and 
entertainment. In 1999, Congress recognized the important role of local 
broadcasters when it last authorized this act. Specifically, the act 
requires satellite companies to offer in a nondiscriminatory manner all 
local broadcast signals once the satellite carriers begin offering 
local-into-local service in a market. This requirement, dubbed ``carry 
one, carry all,'' was the cornerstone of the act.
  Unfortunately, in several markets, one satellite company has refused 
to comply with this requirement. For several years, I have heard 
complaints from local Spanish language broadcasters that one particular 
satellite company has refused to carry Spanish language broadcasts on 
the same dish on which it carries the signals of the major television 
networks. In fact, in my own home State of Texas nine of the eleven 
stations bumped by that particular satellite company to a second dish 
are Spanish language stations.
  In these two-dish markets, customers do not receive all of the 
channels for which they have paid if they do not ask that particular 
company for the second dish. This is unfair to consumers, and it harms 
the viability of local broadcasters because fewer people are watching 
their channels.
  The negative effects of a two-dish practice are made even greater by 
a failure to inform many customers of a particular company of the need 
for a second dish. This practice is wrong. It undermines basic 
principles of localism by essentially giving Spanish language and other 
minority-themed stations a second-class status in their own home 
markets.
  I thank my colleagues for including language in this bill that would 
put an end to this two-dish practice within 1 year. Forcing satellite 
providers to carry all local broadcast signals on one dish will finally 
ensure the equal treatment of all broadcasters.
  Protecting the privacy of consumers who subscribe to satellite 
television is also very important. Although current law protects the 
privacy of persons who subscribe to cable television service, it does 
not protect those who subscribe to satellite service.
  I commend the gentleman from Massachusetts (Mr. Markey) in particular 
for seeing to it that this bill extends to satellite subscribers the 
same privacy protections in effect for cable subscribers.
  Finally, increasing competition between cable and satellite companies 
is an important goal of this act. Prior to the last reauthorization of 
the act, cable companies provided their customers with all of the local 
broadcast channels, but satellite companies were not permitted to do 
the same. Since Congress gave satellite companies the authority to 
provide local-into-local service in 1999, the number of subscribers to 
satellite has about doubled.
  This legislation before us today makes further important strides in 
increasing parity which should lead to greater competition between 
cable and satellite. Right now, cable television companies can provide 
their subscribers with signals that are significantly viewed in a local 
market. Satellite television providers have no such authority. H.R. 
4518 would fix this inequity by permitting satellite carriers of those 
same significantly viewed signals.
  Mr. Speaker, this is a good bill that preserves local broadcasting, 
protects the privacy of satellite television service subscribers, and 
will provide a more level playing field for satellite companies on 
which to compete against cable providers. I support these goals and 
urge all Members to support this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SENSENBRENNER. Mr. Speaker, I yield the balance of my time to the 
gentleman from Texas (Mr. Smith), the chairman of the Subcommittee on 
Courts, the Internet, and Intellectual Property.
  Mr. SMITH of Texas. Mr. Speaker, first of all, I thank the gentleman 
from Wisconsin (Mr. Sensenbrenner), the chairman of the Committee on 
the Judiciary, for yielding me time.

[[Page 21100]]

  Mr. Speaker, I support the manager's amendment to H.R. 4518, the 
Satellite Home Viewer Extension and Reauthorization Act of 2004 which I 
introduced.
  I, too, would like to acknowledge the contributions and support of 
the gentleman from Texas (Chairman Barton) and our colleagues on the 
Committee on Energy and Commerce.
  Without the hard work of the gentleman from Michigan (Mr. Upton), 
sitting to my right, the gentleman from Michigan (Mr. Dingell) and the 
gentleman from Massachusetts (Mr. Markey), a bill this complex would 
not have been able to move under suspension.
  Also, I want to especially thank the gentleman from Wisconsin 
(Chairman Sensenbrenner) for his leadership, as well as recognize the 
personal effort and contributions of both the gentleman from Michigan 
(Mr. Conyers) and the gentleman from California (Mr. Berman).
  This bill will reauthorize the Copyrights Act's distant-signal 
license, which benefits the satellite industry. Because of this bill, 
Americans will continue to be able to receive television programming 
over satellite.
  This legislation strikes a balance between the interests of 
intellectual property owners and the interests of the satellite 
providers who distribute copyrighted programming.
  With time running out this session, it is now critically important 
that H.R. 4518 be enacted without delay.
  The bill makes important changes to both the Copyright Act and the 
Communications Act to ensure that consumers will have greater choices 
in programming; that satellite providers have greater freedom to 
deliver the content consumers desire; that free over-the-air local 
broadcasters have the opportunity to serve needs that are specific to 
their communities; and that copyright owners receive the first 
adjustment to their compensation in 5 years.
  In addition, the bill requires the Copyright Office to complete a 
study and provide recommendations on whether Congress should take 
further steps to create more parity with the cable compulsory license.
  Mr. Speaker, I would also like to recognize the hard work and 
countless hours that were dedicated by the Copyright Office's Bill 
Roberts, as well as by David Whitney of my staff, Sampak Garg of the 
gentleman from Michigan's (Mr. Conyers) staff, and Alec French from the 
gentleman from California's (Mr. Berman) staff.
  Mr. Speaker, H.R. 4518 is a carefully crafted bill that promotes the 
interests of consumers, satellite providers, broadcasters and copyright 
owners. It is a fair and balanced bill that deserves the support of 
this House.
  Mr. Speaker, I would like to insert a copy of the September 23 letter 
by DirecTV, EchoStar, the Motion Picture Association, Major League 
Baseball into the Record, as well as an October 5 letter by Eddie 
Fritts of the National Association of Broadcasters that endorses H.R. 
4518 at this point.

                                           National Association of


                                                 Broadcasters,

                                  Washington, DC, October 5, 2004.
       Dear Representative: I understand that this week the House 
     of Representatives will consider H.R. 4518, the Satellite 
     Home Viewer Extension and Reauthorization Act. On behalf of 
     your local television stations, I am writing to urge you to 
     support this critical legislation, which will help preserve 
     localism in television and protect the interests of the 
     American viewer.
       The legislation enjoys widespread, bipartisan support. The 
     bill is the result of extensive compromise and negotiation 
     between Members of the two Committees of jurisdiction, the 
     Judiciary Committee and the Energy and Commerce Committee and 
     is carefully crafted to address a range of satellite 
     television issues in a pro-consumer fashion. For instance:
       The bill would create incentives for satellite subscribers 
     to gradually shift to selecting their local television 
     stations in their programming packages.
       It would phase-out a discriminatory ``2-dish'' practice 
     which relegates some local television stations to a second 
     dish, where they are all but invisible to satellite 
     subscribers.
       The bill would give satellite providers parity with cable 
     by allowing them to import ``significantly viewed'' out-of-
     market stations from adjoining markets.
       The legislation balances this new privilege with key 
     safeguards ensuring such a practice is not abused to the 
     detriment of local television and consumers.
       The bill provides a long needed update to copyright rates, 
     increasing compensation for copyright holders.
       Some have argued the legislation should be modified to 
     include a ``Digital White Areas'' provision, which would 
     permit satellite companies to import national, distant, 
     digital network digital networks from Los Angeles or New York 
     into local television markets, supplanting local television 
     stations. However, the vast majority of industry 
     stakeholders, including local broadcast stations, the 
     television networks, cable operators, and DirecTV have 
     rejected this approach and are instead working to see local 
     high-definition digital television available on cable and 
     satellite systems. We urge you to reject the Digital White 
     Areas proposal as well.
       Ultimately, as the product of an open process of hearings 
     and mark-ups in both Committees of jurisdiction, H.R. 4518 
     would reauthorize the Satellite Home Viewer Improvement Act 
     in a manner consistent with broadcast television localism. I 
     strongly urge you to pass H.R. 4518 as written. The measure 
     will take import strides in protecting the interests of 
     consumers and furthering localism in television.
           Sincerely,
     Eddie Fritts.
                                  ____

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

     Hon. F. James Sensenbrenner, Jr.,
     Chairman, Committee on the Judiciary, House of 
         Representatives, Rayburn House Office Building, 
         Washington, DC.
     Hon. Lamar Smith,
     Chairman, Subcommittee on Courts, the Internet and 
         Intellectual Property, House of Representatives, Rayburn 
         House Office Building, Washington, DC.
     Hon. John Conyers, Jr.,
     Ranking Member, Committee on the Judiciary, House of 
         Representatives, Rayburn House Office Building, 
         Washington, DC.
     Hon. Howard L. Berman,
     Ranking Member, Subcommittee on Courts, the Internet and 
         Intellectual Property, House of Representatives, Rayburn 
         House Office Building, Washington, DC.
       Dear Congressmen: This letter is written on behalf of the 
     undersigned representatives of those (1) copyright owners who 
     receive the vast majority of the copyright royalties paid for 
     the statutory licenses set forth in Section 119 of the 
     Copyright Act, 17 U.S.C. Sec. 119; and (2) satellite carriers 
     who pay the vast majority of the Section 119 royalties.
       At your request, we undertook negotiations over the 
     copyright royalty rates that satellite carriers should pay 
     under Section 119 for the statutory license to retransmit 
     superstations and network stations. As we are certain you 
     understand, negotiations of this nature necessarily involve a 
     number of difficult and competing considerations and 
     strongly-held views. Nevertheless, we are pleased to report 
     that, with the considerable assistance of you and your staff, 
     our negotiations have been successful. We have entered into a 
     voluntary agreement specifying the royalty fees that 
     satellite carriers would pay for the Section 119 license 
     during each of the years 2005 through 2009.
       Our agreement is effective only if legislation is enacted 
     into law, prior to January 1, 2005, with provisions that: (1) 
     reauthorize 17 U.S.C. Sec. 119 for the five-year period 
     ending December 31, 2009; (2) permit affected parties to 
     enter into voluntary agreements as an alternative to a 
     Copyright Arbitration Royalty Panel (``CARP'') proceeding; 
     (3) provide for the convening, if necessary, of a CARP 
     proceeding to adjust the royalty rates payable under 17 
     U.S.C. Sec. 119, provided that such provisions require the 
     Librarian of Congress and any CARP to adjust any fees set by 
     arbitration to account for the obligations of the parties 
     under any applicable voluntary agreements filed with the 
     Copyright Office; and (4) amend the Section 119 compulsory 
     license to permit the retransmission of superstations to 
     commercial establishments. These provisions are collectively 
     referred to herein as the ``Section 199 Rate Provisions.''
       If legislation containing each of these Section 119 Rate 
     Provisions is enacted into law prior to January 1, 2005, we 
     will submit to the Copyright Office our voluntary agreement 
     that specifies the agreed-upon royalty rates, and this 
     agreement will become binding on the parties. We will also 
     jointly petition the Copyright Office to adopt these rates 
     for all copyright owners, satellite carriers and distributors 
     under Section 119.
       Attachment A hereto describes in narrative form the changes 
     that we believe must be made to H.R. 4518, as reported to the 
     House of Representatives on September 7, 2004, for that bill 
     to incorporate the above-

[[Page 21101]]

     identified Section 119 Rate Provisions. Attachment B provides 
     specific suggested language amending H.R. 4518 to reflect the 
     Section 119 Rate Provisions. Attachment C contains a red-
     lined version of H.R. 3518 showing the proposed Section 119 
     Rate Provisions.
       There are a few additional points that we wish to 
     emphasize. First, the rates to which the parties have agreed 
     reflect multiple considerations and difficult compromises--
     including a desire to be responsive to your reasonable 
     requests for a negotiated agreement and to avoid the costs 
     and uncertainties of further controversy and political 
     litigation. Accordingly, our agreement provides that its 
     terms do not have any precedential value. Nevertheless, we 
     firmly believe that it is in the best interests of all 
     copyright owners and satellite carriers alike, as well as 
     those consumers who receive the valuable copyrighted works 
     offered under the Section 119 statutory license, for Congress 
     to enact the Section 119 Rate Provisions--and for the 
     Copyright Office ultimately to adopt the rates set forth in 
     our voluntary agreement.
       Second, nothing in our voluntary agreement prevents any 
     party from supporting or opposing provisions other than those 
     reflected in the attached Section 119 Rate Provisions.
       Third, each of the Parties to this agreement (DIRECTV, 
     EchoStar and the copyright owners) supports the attached 
     Section 119 Rate Provisions. This is not to say, however, 
     that each of the parties would support any legislative 
     vehicle to which the Section 119 Rate Provisions could be 
     attached. Each Party must base its decision on whether to 
     support any such legislation on the totality of the 
     provisions therein.
       Finally, we wish to personally thank each of you and your 
     staff for your continuing efforts in bring the parties 
     together and assisting us to resolve our considerable 
     differences in an amicable way that serves the best interests 
     of all concerned. In particular, we wish to recognize the 
     hard work of David Whitney, Alec French, Sampak Garg and 
     Cameron Gilreath. We very much appreciated their 
     professionalism, their diligence and their patience 
     throughout the process. It is our fervent wish that all of 
     these efforts bear fruit with the passage of legislation that 
     resolves the Section 119 rate issues for the upcoming five-
     year period.
           Sincerely,
       Program Suppliers: Fritz Attaway, Executive Vice President 
     and Washington Counsel, Motion Picture Association of 
     America, Inc.
       Joint Sports Claimants: Thomas J. Ostertag, Senior Vice 
     President & General Counsel, Office of the Commissioner of 
     Baseball.
       DirecTV, Inc.: Daniel M. Fawcett, Executive Vice President 
     and General Counsel.
       EchoStar Satellite L.L.C.: David K. Moskowitz, Executive 
     Vice President & General Counsel.
       Satellite Broadcasting & Communications Association: 
     Richard DalBello, President.

  Mr. Speaker, finally and obviously, I urge all Members to support 
this good piece of legislation, and I appreciate in advance their 
support.
  Mr. UPTON. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from 
Indiana (Mr. Buyer), my friend and colleague, a member of the 
Subcommittee on Telecommunications and the Internet.
  Mr. BUYER. Mr. Speaker, I appreciate the gentleman's good work on 
this.
  The act we are approving today continues a strong policy of 
continuing local-to-local service. It also pushes the satellite 
industry to be as competitive as possible with cable.
  For the first time, the bill will allow satellite carriers to deliver 
significantly viewed stations from nearby markets as cable now is able 
to do. In any given community, the significantly viewed stations that 
the direct broadcast service will be allowed to carry are exactly the 
same ones that cable can carry.
  The act imposes a variety of limits designed to protect free, local, 
over-the-air broadcasting. For example, the only subscribers who can 
receive significantly viewed stations are those who are already 
receiving their own local stations by satellite.
  Nor can the direct broadcast service company offer a digital signal 
of a significantly viewed affiliate of, say, CBS to a subscriber to 
which it offers only the analog feed of the local CBS station or carry 
the significantly viewed CBS station with more digital broadband than 
the local station.
  There also are some pretty strong provisions in this. If the 
satellite carrier abuses this new regime by carrying an unauthorized 
station, it will be both subject to swift and severe penalties at the 
FCC and will forfeit its compulsory license under the Copyright Act 
which is conditioned on compliance with all applicable FCC rules 
regulations and authorization.
  I had been impressed with the satellite industry and how it has 
created this industry, but they also now need to be fair players in the 
marketplace.
  As Congress made clear when we passed the 1999 Satellite Home Viewer 
Improvement Act (``SHVIA''), it is far better for local communities if 
satellite carriers offer their customers local television stations--
including network stations--rather than TV stations from other cities. 
Put another way, local-to-local service is the right way, and--except 
when there is no other choice--distant network stations are the wrong 
way, to deliver broadcast programming by satellite. Local-to-local 
fosters localism and helps keep free, over-the-air television available 
to everyone, while delivery of distant network stations to households 
that can receive their own local stations (whether over the air or via 
local-to-local service) has just the opposite effect.
  The pro-local-to-local policy of the 1999 SHVIA has been an 
astounding success. The satellite industry has grown spectacularly 
since then, spurred--as the satellite industry has many times reminded 
us--by the availability of local-to-local service. In fact, in the past 
year, the number of cable subscribers has actually shrunk, while 
satellite carriers continue to expand at a rapid clip.
  Recognizing that local-to-local is not just good policy but good 
business, the DBS firms have expanded local-to-local service at a rate 
far faster than the industry predicted a few years ago. As to analog 
service, EchoStar recently announced that it was serving no fewer than 
150 local markets, covering more than 90 percent of the television 
households in the United States. And for its part, DirecTV expects to 
offer local-to-local in at least 130 local markets by the end of 2004--
and has committed to offering local-to-local in every market as soon as 
2006, and no later than 2008.
  I want to commend DirecTV for its commitment to provide service to 
all 210 Designated Market Areas. I hope that EchoStar is on a similar 
path and will provide more certainty as to when this might occur just 
as DirecTV has done. It is my hope that this service is provided sooner 
rather than later so that those satellite subscribers in Lafayette, 
Indiana will be able to receive their local affiliate station and 
achieve true local-into-local service.
  But there is still more: DirecTV announced just a few weeks ago that 
it plans to offer high-definition local-to-local service in many 
markets over the next few years. With the first of its new satellites, 
DirecTV plans to offer during 2005 more than 500 local high-definition 
channels, enabling it to offer local HD programming to the majority of 
U.S. television households. And with the launch of still more new 
satellites, DirecTV will be able to add even more local HD markets in 
the future. Of course, in the highly competitive world of multichannel 
television providers, there is little doubt that DirecTV's competitors 
will be driven to try to match--or exceed--DirecTV's local-to-local 
offerings. And that is all to the good.
  The Act we are approving today continues the strong policy of 
encouraging local-to-local service and pushing the satellite industry 
to be as competitive as possible with cable. For the first time, the 
bill will allow satellite carriers to deliver ``significantly-viewed'' 
stations from nearby markets, as cable is now able to do. In any given 
community, the ``significantly viewed'' stations that DBS will be 
allowed to carry are exactly the same ones that cable can carry. The 
Act imposes a variety of limits designed to protect free, local, over-
the-air broadcasting: For example, the only subscribers who can receive 
significantly-viewed stations are those who already receive their own 
local stations by satellite. (Since cable always offers local stations, 
this rule ensures a level playing field.) Nor can a DBS company offer a 
digital signal of a significantly-viewed affiliate of, say, CBS, to a 
subscriber to which it offers only the analog feed of the local CBS 
station, or carry a significantly-viewed CBS station with more digital 
bandwidth than the local CBS station (unless the carrier offers the 
entire bandwidth of the local digital station).
  If a satellite carrier abuses this new regime--by carrying 
unauthorized stations--it will both be subject to swift and severe 
penalties at the FCC, and will forfeit its compulsory license under the 
Copyright Act, which is conditioned on compliance with all applicable 
FCC rules, regulations, and authorizations.
  Mr. GONZALEZ. Mr. Speaker, I yield 3 minutes to the gentleman from 
New York (Mr. Engel).
  Mr. ENGEL. Mr. Speaker, I thank the gentleman for yielding time to 
me. And, Mr. Speaker, I am pleased to rise in strong support of this 
proconsumer legislation, the Satellite Home Viewers Extension and 
Reauthorization Act.
  I also want to thank the chairman and ranking member of the Committee 
on Energy and Commerce for the manner in which this legislation moved

[[Page 21102]]

through our committee. The Committee on Energy and Commerce moved 
through the process, it was completely open and bipartisan; and I thank 
the Chair for that.
  The Satellite Home Viewer Improvement Act expires at the end of this 
year. Thus, we must act quickly to ensure our constituents continue to 
receive the services they enjoy.
  This bill also does a great service to our communities by preserving 
and strengthening local broadcasting.
  My interest in this legislation was piqued when I discovered that one 
of the two satellite companies was engaging in a discriminatory 
practice that forced 95 percent of their customers to pay for services 
they do not receive.
  EchoStar's system requires two satellite dishes on a rooftop to be 
able to receive all of the local channels and other channels they 
offer. Nothing is wrong with that. It is how their technology works. 
However, EchoStar is discriminatory in choosing which local 
broadcasters would end up on the second dish which is inconvenient. 
Most often it is Spanish language, public and religious broadcasters.
  On top of that, EchoStar does a poor job informing its customers of 
the need for a second dish, and the company requires a second 
technician to come out and install the second dish. The company states 
that only about 5 percent of their customers take the second dish, 
which means that 95 percent of customers are paying for services they 
do not receive.
  This legislation requires all satellite companies to put all local 
channels on one of the two dishes. I think that is important, and I 
think it is a major breakthrough.
  This provision is also key to the health of the satellite industry by 
setting the ground rules for providing local broadcast stations. Local-
to-local has been a driving force in the satellite television 
industry's growth. In 1999, just prior to the establishment of the 
local-to-local compulsory license, the industry had 10.1 million 
subscribers. Only 4 years later, after the advent of local-to-local, 
the industry had more than doubled its subscriber base to 20.4 million.
  Another key provision gives consumers of satellite TV service the 
same choices as cable subscribers. Specifically, the bill gives 
satellite the ability to import significantly viewed stations from 
adjoining markets. At the same time, the bill includes safeguards to 
ensure this new privilege is not abused to the detriment of local 
television and television viewers.

                              {time}  1345

  This means, for example, a satellite prescriber in Baltimore could 
soon be getting Washington, D.C., local stations if they are 
significantly viewed. For people who live in or near Baltimore and 
commute to D.C. to work, the traffic reports are obviously vital.
  In closing, Mr. Speaker, this legislation enjoys widespread 
bipartisan support in Congress as well as the endorsement of nearly all 
key industry stakeholders, including local television stations, the 
television networks, cable operators, and DirecTV.
  Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today we are considering H.R. 4518, which is 
alternatively named the ``W.J. `Billy' Tauzin Satellite Television Act 
of 2004,'' in honor of our former chairman, Billy Tauzin. It is 
particularly fitting that this is named after Boudreaux friend, Billy 
Tauzin, since he was the chief architect of the regulatory landscape 
which promoted the creation of a vibrant satellite TV industry to the 
benefit of so many consumers across the country.
  Mr. Speaker, our prayers remain with Billy Tauzin as he continues his 
fight against cancer, and I know that he is fighting with the same vim 
and vigor that characterizes his very able public service.
  This bill reauthorizes certain expiring provisions in the 
communications and copyright acts. It also modernizes other provisions 
to increase parity and enhance competition between satellite and cable 
operations. And given that this bill affects both communications and 
copyright issues, the Committee on Energy and Commerce worked very 
closely with the House Committee on the Judiciary on a bipartisan basis 
in putting this bill together.
  Procedurally, this bill combines the elements of H.R. 4501, which was 
reported by the House Committee on Energy and Commerce, with elements 
of H.R. 4518, which was reported by the House Committee on the 
Judiciary. I want to commend my colleagues on both committees, on both 
sides of the aisle, for their cooperation and dedication of this 
mission, particularly the gentleman from Wisconsin (Mr. Sensenbrenner), 
chairman of the Committee on the Judiciary; the gentleman from Texas 
(Mr. Smith), chairman of the Subcommittee on Courts, the Internet, and 
Intellectual Property; and, obviously, the ranking member of the 
Committee on Energy and Commerce, the gentleman from Michigan (Mr. 
Dingell) and the ranking member of the Subcommittee on 
Telecommunications and the Internet, the gentleman from Massachusetts 
(Mr. Markey), for their very active work on this legislation.
  This bill resulted from an extensive examination of satellite TV 
issues in our committee. The subcommittee on Telecommunications and the 
Internet held an oversight hearing on March 10, a legislative hearing 
on April 1, subcommittee markup to legislation on April 28, and the 
full committee markup to legislation on June 3 that would become H.R. 
4501. As I recall, that bill passed in both the subcommittee and full 
committee on a voice vote. It was extensively bipartisan from the very 
start. And without a doubt, by extending these expiring provisions, 
increasing parity between satellite TV and cable operators, promoting 
competition between satellite TV and cable, the bill will enhance 
consumer choice and service.
  Mr. Speaker, this bill builds upon the solid foundation laid by our 
friend Billy Tauzin. I commend this bill to my colleagues on both sides 
of the aisle and urge its passage.
  Mr. Speaker, I yield back the balance of my time.
  Mr. GONZALEZ. Mr. Speaker, I yield myself such time as I may consume.
  Just briefly again, Mr. Speaker, this is a bill that makes good 
business sense and is a good deal for the consumer, standing for the 
proposition those are not mutually exclusive concepts.
  Mr. DINGELL. Mr. Speaker, I rise today in support of H.R. 4518, the 
Satellite Home Viewer Extension and Reauthorization Act of 2004. I 
congratulate Chairmen Barton and Sensenbrenner, Ranking Member Conyers 
and the subcommittee chairmen and ranking members of their hard work on 
this legislation. The task of combining separate Energy and Commerce 
and Judiciary Committee bills into a single product is never easy, but 
I am pleased with this bipartisan bill before us today. Let us hope 
that the other body will act with due haste to ensure that this 
legislation becomes law this year.
  I note that the bill before us incorporates the language of both H.R. 
4501 and H.R. 4518 was solely referred to the Committee on Energy and 
Commerce. H.R. 4518 was referred solely to the Committee on the 
Judiciary. The members of both committees worked long and hard on their 
respective bills. Accordingly, the legislative history on H.R. 4518 
includes the legislative history of H.R. 4501.
  The bill before us achieves three very critical goals. First, it will 
increase regulatory parity between cable and satellite providers, 
thereby strengthen satellite companies' ability to compete in the 
multichannel video marketplace. Currently, cable providers can offer 
their subscribers out-of-market television signals that are 
``significantly viewed'' in the subscribers' local communities. 
Satellite companies, however, are prevented by law from offering to 
their subscribers the same signals. This bill would change the law to 
provide satellite companies an equal right to provide their subscribers 
those ``significantly viewed'' signals. This increased parity should 
help spur greater competition between cable and satellite providers and 
ultimately benefit consumers in the form of lower prices and better 
service.
  Second, the act will protect consumers and foster localism by 
ensuring that satellite customers receive all of their local broadcast 
signals when these signals become available via satellite. Local 
broadcasters provide their communities with important local 
programming. Whether it is local news, weather, or community events, 
these broadcasters are there, on

[[Page 21103]]

the ground serving their friends and neighbors. This idea of localism 
was recognized and fostered by Congress during the last reauthorization 
of this statute in 1999, through a provision called ``carry one, carry 
all.'' This policy mandates that a satellite provider, in a 
nondiscriminatory fashion, offer all local broadcast signals in a 
market if it offers one.
  Finally, I am also pleased that this bill will help protect consumer 
privacy. This bill will force satellite carriers to comply with the 
same privacy obligations that already apply to cable television 
providers. Personally identifiable information will now be better 
protected.
  Mr. Speaker, H.R. 4518 will encourage competition between cable and 
satellite. It also furthers the goal of localism and protects 
consumers. I urge my colleagues to support it.
  Mr. CONYERS. Mr. Speaker, I rise in support of this legislation, of 
which I am an original cosponsor. I first would like to note the comity 
that went into drafting this bill. We worked with the Commerce 
Committee on addressing the relevant issues based on jurisdiction. 
Further, Chairman Sensenbrenner and his staff worked diligently with us 
on drafting this legislation. I would particularly like to thank David 
Whitney, counsel to the majority, whose diligence and bipartisanship 
are the only reason we are here today.
  In 1999, we passed the Satellite Home Viewer Improvement Act to allow 
satellite companies to retransmit distant network signals to customers 
who could not receive clear over-the-air television signals. Such 
companies have to pay a government-set rate to the broadcast copyright 
owners. While I had, and still have, hesitations about creating 
compulsory licenses that require content owners to sell their work for 
a set fee, I believe this license led to significant competition in 
programming distribution.
  As a result of this policy decision, the satellite industry has 
dedicated significant technological and financial resources to 
expanding the choices available to consumers. I am certain we can all 
agree that is a good thing.
  The 1999 law expires at the end of this calendar year, so we must 
reauthorize it. The bill before us extends the license for 5 years. 
Importantly, the bill goes beyond that in addressing the desires of 
consumers in that it permits the satellite companies to retransmit a 
significantly viewed local signal to a customer.
  The bill also settles a gray area in terms of what satellite service 
customers can get when local-to-local satellite television is 
available. Under the new regime, current subscribers will be allowed to 
choose between the distant signal service or the local service. New 
customers would be provided with the local service.
  Despite the benefits of this legislation and the work of the 
interested parties, much remains to be done in terms of providing 
complete television service across the country. I look forward to 
working with the content owners and satellite companies in making that 
happen.
  I urge my colleagues to vote ``yes'' on this legislation.
  Mr. TANCREDO. Mr. Speaker, I wish to express my views on the 
legislation before us today.
  This legislation includes a requirement for Echostar, better known as 
Dish Network, to eliminate the solution it developed to serve more 
Americans with local service than any other satellite TV company. The 
legislation would eliminate its ``two dish'' solution within 12 months. 
This requirement will cause consumer inconvenience and hamper the 
rollout of local programming. The ``two dish'' remedy maximizes the 
number of television markets that can receive local channels by 
utilizing the scarce spectrum available.
  I believe a better route to dealing with the lack of spectrum, which 
I know is a priority for you, is for this legislation to include a 
provision similar to that of the Senate Commerce Committee. That 
committee voted to allow satellite TV providers to offer High 
Definition TV service to markets where a local broadcaster is not even 
offering a digital signal. As noted in the Digital Transition Coalition 
letter which I will also enter into the Record, the freed-up spectrum 
could be redeployed to our Nation's first responders, auctioned to 
wireless companies eager to offer new advanced services, and raise 
funds that could be returned to the taxpayer or put to paying off the 
debt.
  I look forward to our continuing work on this legislation.


                                 Digital Transition Coalition,

                                  Washington, DC, October 4, 2004.
     Hon. J. Dennis Hastert,
     Speaker, House of Representatives,
     U.S. Capitol, Washington, DC.
       Dear Speaker Hastert: The Digital Transition Coalition is 
     writing to express its concern regarding the House 
     reauthorization of the Satellite Home Viewer Improvement Act 
     (SHVIA). While the legislation adopts rate increase 
     adjustments for content owners and allows satellite companies 
     to provide ``distant network signals'' to subscribers who 
     cannot receive ``over-the-air'' broadcast signals, it fails 
     to include the ``digital white area'' provision adopted by 
     the Senate Commerce Committee which would accelerate the 
     digital television transition. Without this provision, 
     millions of Americans, especially consumers in rural areas, 
     will have to wait even longer for digital and High-Definition 
     television and be denied the world of innovation derived from 
     freed-up spectrum.
       H.R. 4501, approved by the Committee on Energy & Commerce, 
     did not include an important provision to speed up the return 
     of tens of billions of dollars of analog spectrum currently 
     held by broadcasters. Despite the fact that Congress years 
     ago set a 2006 deadline for broadcasters to return the analog 
     spectrum (in exchange for tens of billions of dollars of free 
     digital spectrum), it is clear that deadline will not be met. 
     As a result, consumers in more than 39 million U.S. 
     households (about 36 percent nationwide) will continue to be 
     deprived of receiving all their network signals in digital.
       As taxpayer groups, consumer advocates and technology 
     leaders, our coalition has strongly supported proposals to 
     allow direct broadcast satellite providers to offer a distant 
     digital network signal into local television markets where 
     broadcasters are not transmitting a full-power digital 
     signal. We believe such a measure is essential to provide 
     market-based pressure on local broadcasters to complete the 
     digital transition and return the public's valuable analog 
     spectrum for other uses.
       The satellite home viewer reauthorization legislation is 
     the vehicle to address this issue. The Senate Commerce 
     Committee, in its version of the satellite legislation, 
     adopted a ``digital white area'' provision that will help 
     provide the necessary impetus to speed up the digital 
     transition and serve the needs of millions of television 
     viewers who are disadvantaged by the current situation. In 
     contrast, the House Commerce Committee bill requests a 
     perfunctory report on the matter without any immediate 
     remedy.
       As such an important issue for consumers and the economy, 
     we strongly urge that a digital white area provision be added 
     to the House legislation. We appreciate your consideration of 
     our request, and we look forward to continuing to work with 
     the Congressional leadership, the committee chairmen and 
     ranking members to further improve this legislation.
           Sincerely,
       Grover Norquist, Americans for Tax Reform; The Honorable 
     Andrea Seastrand, The California Space Authority; Tom Schatz, 
     Council for Citizens Against Government Waste; Charles Ergen, 
     EchoStar Communications Corporation; George Landrith, 
     Frontiers of Freedom; Andrew Jay Schwartzman, Media Access 
     Project; Gigi Sohn, Public Knowledge; Richard DalBello, 
     Satellite Broadcasting and Communications Association; Karen 
     Kerrigan, Small Business Survival Committee.

  Mr. GONZALEZ. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. BERMAN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Whitfield). The question is on the 
motion offered by the gentleman from Texas (Mr. DeLay) that the House 
suspend the rules and pass the bill, H.R. 4518, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  The title of the bill was amended so as to read: ``A Bill to extend 
the statutory license for secondary transmissions by satellite carriers 
of transmissions by television broadcast stations under title 17, 
United States Code, and to amend the Communications Act of 1934 with 
respect to such transmissions, and for other purposes.''.
  A motion to reconsider was laid on the table.

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