[Congressional Record (Bound Edition), Volume 156 (2010), Part 6]
[Senate]
[Pages 7643-7655]
[From the U.S. Government Publishing Office, www.gpo.gov]




            SATELLITE TELEVISION EXTENSION AND LOCALISM ACT

  The PRESIDING OFFICER. I ask unanimous consent that the Senate 
proceed to the immediate consideration of S. 3333, introduced earlier 
today.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 3333) to extend the statutory license for 
     secondary transmissions under title 17, United States Code, 
     and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. LEAHY. Mr. President, I am pleased that the Senate will pass the 
Satellite Television Extension and Localism Act, STELA, of 2010. This 
legislation modernizes and extends important statutory copyright 
licenses that allow cable and satellite companies to retransmit the 
content transmitted by television broadcasters. STELA also includes 
important Communications Act authorizations that allow for the 
retransmission of broadcast television signals by satellite and cable 
providers.
  Ensuring that Americans have access to broadcast television content 
is important, and it is particularly relevant for consumers in rural 
areas who might not otherwise be able to receive these signals over-
the-air. The legislation that the Senate is passing today will ensure 
that nobody will be left in the dark for the foreseeable future. 
Broadcast television plays a critical role in cities and towns across 
the country, and remains the primary way in which consumers are able to 
access local content such as news, weather, and sports.
  Cable and satellite providers help to expand the footprint of 
broadcast stations by allowing them to reach viewers who are unable to 
receive signals over-the-air. Vermont is an example of how cable and 
satellite companies can provide service to consumers in rural areas who 
might not otherwise receive these signals.
  Vermonters will see improved service when this legislation is 
enacted. Today, DirecTV is permitted to use the licenses to provide 
Windham and Bennington Counties with stations from the Burlington 
television market, but DISH Network is not. This legislation will 
permit DISH to provide their subscribers in southern Vermont with the 
same service. As soon as DISH Network uses this authority, virtually 
everyone in the State will be able to access the news and information 
that is truly important to Vermonters.
  One other important way that STELA will preserve and improve existing 
service for consumers is by correcting a flaw in the statutory 
copyright license for the cable industry. An unintended result of 
current law is that the cable license requires the cable industry to 
pay copyright holders for signals that many of their subscribers do not 
actually receive. This is often referred to as the phantom signal 
problem. The effect of this anomaly in the law is that Comcast is 
required to pay copyright royalties based on their subscriber base 
across the northeast for the Canadian television content that is only 
provided to subscribers in Burlington, VT.
  The bill corrects this flaw by giving the cable industry the 
flexibility to continue to provide signals that are tailored to local 
interests--signals that might otherwise have been pulled from cable 
line-ups. This will benefit industry and consumers. For instance, 
subscribers in Burlington will still be able to receive programming 
such as ``Hockey Night in Canada,'' which has been a tradition, without 
fear that Comcast will have to remove the channel or raise prices 
because it is being charged royalties based on subscribers in Boston.
  In addition, the legislation will expand consumer access to their 
States' public television programming and low-power, community-oriented 
stations that will promote media diversity.
  This is the third time the Senate will have passed substantially the 
same reauthorization language. The bill is the product of many hours of 
hard work and compromise among four committees in both Houses of 
Congress. No single member or committee chairman would have written it 
in this exact way, but the final language represents a fair compromise 
on important issues. For instance, I would have preferred the approach 
included in the Senate Judiciary Committee-approved bill for providing 
incentives to DISH Network to launch additional local markets, rather 
than lifting a court-ordered injunction. As a matter of policy, lifting 
a court-ordered injunction based on copyright infringement is something 
I generally do not support, but others insisted upon it and it is part 
of the compromise embodied in STELA.
  Overall, this is a good bill that will preserve and improve the 
service that consumers across the country are accustomed to receiving. 
I hope the third time the Senate passes it will be the final time and 
that it will be considered promptly by the House and signed into law by 
the President.
  Mr. CONRAD: This is the Statement of Budgetary Effects of PAYGO 
Legislation for S. 3333. This statement has been prepared pursuant to 
Section 4 of

[[Page 7644]]

the Statutory Pay-As-You-Go Act of 2010 (Public Law 111-139), and is 
being submitted for printing in the Congressional Record prior to 
passage of S. 3333 by the Senate.

     Total Budgetary Effects of S. 3333 for the 5-year Statutory 
     PAYGO Scorecard: $0.
     Total Budgetary Effects of S. 3333 for the 10-year Statutory 
     PAYGO Scorecard: $0.

  Also submitted for the Record as part of this statement is a table 
prepared by the Congressional Budget Office, which provides additional 
information on the budgetary effects of this Act.

CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS FOR A BILL TO EXTEND THE STATUTORY LICENSE FOR SECONDARY TRANSMISSIONS UNDER TITLE 17, UNITED STATES
                         CODE, AND FOR OTHER PURPOSES AS PROVIDED TO CBO BY THE SENATE COMMITTEE ON THE JUDICIARY ON MAY 6, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         By fiscal year, in millions of dollars--
                                ------------------------------------------------------------------------------------------------------------------------
                                   2010     2011     2012     2013     2014     2015     2016     2017     2018     2019     2020   2010-2015  2010-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       Net Increase or Decrease (-) in the Deficit
 
Statutory Pay-As-You-Go Impacta        0        0        0        0        0        0        0        0        0        0        0         0         0
--------------------------------------------------------------------------------------------------------------------------------------------------------
aThe bill would authorize the Copyright Office to charge fees to cable and satellite providers to offset a portion of the costs of operating the
  copyright licensing program. This provision would increase both revenues and direct spending by $8 million over the 2010-2020 period.

  Mr. WHITEHOUSE. I ask unanimous consent that the bill be read a third 
time; passed, and the motion to reconsider be laid upon the table, and 
that any statements relating to the measure be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 3333) was ordered to be engrossed for a third reading, 
was read the third time and passed, as follows:

                                S. 3333

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Satellite 
     Television Extension and Localism Act of 2010''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--STATUTORY LICENSES

Sec. 101. Reference.
Sec. 102. Modifications to statutory license for satellite carriers.
Sec. 103. Modifications to statutory license for satellite carriers in 
              local markets.
Sec. 104. Modifications to cable system secondary transmission rights 
              under section 111.
Sec. 105. Certain waivers granted to providers of local-into-local 
              service for all DMAs.
Sec. 106. Copyright Office fees.
Sec. 107. Termination of license.
Sec. 108. Construction.

                  TITLE II--COMMUNICATIONS PROVISIONS

Sec. 201. Reference.
Sec. 202. Extension of authority.
Sec. 203. Significantly viewed stations.
Sec. 204. Digital television transition conforming amendments.
Sec. 205. Application pending completion of rulemakings.
Sec. 206. Process for issuing qualified carrier certification.
Sec. 207. Nondiscrimination in carriage of high definition digital 
              signals of noncommercial educational television stations.
Sec. 208. Savings clause regarding definitions.
Sec. 209. State public affairs broadcasts.

                TITLE III--REPORTS AND SAVINGS PROVISION

Sec. 301. Definition.
Sec. 302. Report on market based alternatives to statutory licensing.
Sec. 303. Report on communications implications of statutory licensing 
              modifications.
Sec. 304. Report on in-state broadcast programming.
Sec. 305. Local network channel broadcast reports.
Sec. 306. Savings provision regarding use of negotiated licenses.
Sec. 307. Effective date; Noninfringement of copyright.

                         TITLE IV--SEVERABILITY

Sec. 401. Severability.

              TITLE V--DETERMINATION OF BUDGETARY EFFECTS

Sec. 501. Determination of Budgetary Effects.

                      TITLE I--STATUTORY LICENSES

     SEC. 101. REFERENCE.

       Except as otherwise provided, whenever in this title an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of title 17, United States Code.

     SEC. 102. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 119 is amended by 
     striking ``superstations and network stations for private 
     home viewing'' and inserting ``distant television programming 
     by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 119 and 
     inserting the following:

``119. Limitations on exclusive rights: Secondary transmissions of 
              distant television programming by satellite.''.
       (b) Unserved Household Defined.--
       (1) In general.--Section 119(d)(10) is amended--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) cannot receive, through the use of an antenna, an 
     over-the-air signal containing the primary stream, or, on or 
     after the qualifying date, the multicast stream, originating 
     in that household's local market and affiliated with that 
     network of--
       ``(i) if the signal originates as an analog signal, Grade B 
     intensity as defined by the Federal Communications Commission 
     in section 73.683(a) of title 47, Code of Federal 
     Regulations, as in effect on January 1, 1999; or
       ``(ii) if the signal originates as a digital signal, 
     intensity defined in the values for the digital television 
     noise-limited service contour, as defined in regulations 
     issued by the Federal Communications Commission (section 
     73.622(e) of title 47, Code of Federal Regulations), as such 
     regulations may be amended from time to time;'';
       (B) in subparagraph (B)--
       (i) by striking ``subsection (a)(14)'' and inserting 
     ``subsection (a)(13),''; and
       (ii) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (C) in subparagraph (D), by striking ``(a)(12)'' and 
     inserting ``(a)(11)''.
       (2) Qualifying date defined.--Section 119(d) is amended by 
     adding at the end the following:
       ``(14) Qualifying date.--The term `qualifying date', for 
     purposes of paragraph (10)(A), means--
       ``(A) October 1, 2010, for multicast streams that exist on 
     March 31, 2010; and
       ``(B) January 1, 2011, for all other multicast streams.''.
       (c) Filing Fee.--Section 119(b)(1) is amended--
       (1) in subparagraph (A), by striking ``and'' after the 
     semicolon at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) a filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).''.
       (d) Deposit of Statements and Fees; Verification 
     Procedures.--Section 119(b) is amended--
       (1) by amending the subsection heading to read as follows: 
     ``(b) Deposit of Statements and Fees; Verification 
     Procedures.--'';
       (2) in paragraph (1), by striking subparagraph (B) and 
     inserting the following:
       ``(B) a royalty fee payable to copyright owners pursuant to 
     paragraph (4) for that 6-month period, computed by 
     multiplying the total number of subscribers receiving each 
     secondary transmission of a primary stream or multicast 
     stream of each non-network station or network station during 
     each calendar year month by the appropriate rate in effect 
     under this subsection; and'';
       (3) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to permit 
     interested parties to verify and audit the statements of 
     account and royalty fees submitted by satellite carriers 
     under this subsection.'';
       (5) in paragraph (3), as redesignated, in the first 
     sentence--
       (A) by inserting ``(including the filing fee specified in 
     paragraph (1)(C))'' after ``shall receive all fees''; and
       (B) by striking ``paragraph (4)'' and inserting ``paragraph 
     (5)'';
       (6) in paragraph (4), as redesignated--

[[Page 7645]]

       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (B) by striking ``paragraph (4)'' each place it appears and 
     inserting ``paragraph (5)''; and
       (7) in paragraph (5), as redesignated, by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)''.
       (e) Adjustment of Royalty Fees.--Section 119(c) is amended 
     as follows:
       (1) Paragraph (1) is amended--
       (A) in the heading for such paragraph, by striking 
     ``analog'';
       (B) in subparagraph (A)--
       (i) by striking ``primary analog transmissions'' and 
     inserting ``primary transmissions''; and
       (ii) by striking ``July 1, 2004'' and inserting ``July 1, 
     2009'';
       (C) in subparagraph (B)--
       (i) by striking ``January 2, 2005, the Librarian of 
     Congress'' and inserting ``June 1, 2010, the Copyright 
     Royalty Judges''; and
       (ii) by striking ``primary analog transmission'' and 
     inserting ``primary transmissions'';
       (D) in subparagraph (C), by striking ``Librarian of 
     Congress'' and inserting ``Copyright Royalty Judges'';
       (E) in subparagraph (D)--
       (i) in clause (i)--

       (I) by striking ``(i) Voluntary agreements'' and inserting 
     the following:

       ``(i) Voluntary agreements; filing.--Voluntary 
     agreements''; and

       (II) by striking ``that a parties'' and inserting ``that 
     are parties''; and

       (ii) in clause (ii)--

       (I) by striking ``(ii)(I) Within'' and inserting the 
     following:

       ``(ii) Procedure for adoption of fees.--

       ``(I) Publication of notice.--Within'';
       (II) in subclause (I), by striking ``an arbitration 
     proceeding pursuant to subparagraph (E)'' and inserting ``a 
     proceeding under subparagraph (F)'';
       (III) in subclause (II), by striking ``(II) Upon receiving 
     a request under subclause (I), the Librarian of Congress'' 
     and inserting the following:
       ``(II) Public notice of fees.--Upon receiving a request 
     under subclause (I), the Copyright Royalty Judges''; and
       (IV) in subclause (III)--

       (aa) by striking ``(III) The Librarian'' and inserting the 
     following:

       ``(III) Adoption of fees.--The Copyright Royalty Judges'';

       (bb) by striking ``an arbitration proceeding'' and 
     inserting ``the proceeding under subparagraph (F)''; and
       (cc) by striking ``the arbitration proceeding'' and 
     inserting ``that proceeding'';
       (F) in subparagraph (E)--
       (i) by striking ``Copyright Office'' and inserting 
     ``Copyright Royalty Judges''; and
       (ii) by striking ``May 31, 2010'' and inserting ``December 
     31, 2014''; and
       (G) in subparagraph (F)--
       (i) in the heading, by striking ``compulsory arbitration'' 
     and inserting ``copyright royalty judges proceeding'';
       (ii) in clause (i)--

       (I) in the heading, by striking ``proceedings'' and 
     inserting ``the proceeding'';
       (II) in the matter preceding subclause (I)--

       (aa) by striking ``May 1, 2005, the Librarian of Congress'' 
     and inserting ``September 1, 2010, the Copyright Royalty 
     Judges'';
       (bb) by striking ``arbitration proceedings'' and inserting 
     ``a proceeding'';
       (cc) by striking ``fee to be paid'' and inserting ``fees to 
     be paid'';
       (dd) by striking ``primary analog transmission'' and 
     inserting ``the primary transmissions''; and
       (ee) by striking ``distributors'' and inserting 
     ``distributors--'';

       (III) in subclause (II)--

       (aa) by striking ``Librarian of Congress'' and inserting 
     ``Copyright Royalty Judges''; and
       (bb) by striking ``arbitration''; and

       (IV) by amending the last sentence to read as follows: 
     ``Such proceeding shall be conducted under chapter 8.'';

       (iii) in clause (ii), by amending the matter preceding 
     subclause (I) to read as follows:
       ``(ii) Establishment of royalty fees.--In determining 
     royalty fees under this subparagraph, the Copyright Royalty 
     Judges shall establish fees for the secondary transmissions 
     of the primary transmissions of network stations and non-
     network stations that most clearly represent the fair market 
     value of secondary transmissions, except that the Copyright 
     Royalty Judges shall adjust royalty fees to account for the 
     obligations of the parties under any applicable voluntary 
     agreement filed with the Copyright Royalty Judges in 
     accordance with subparagraph (D). In determining the fair 
     market value, the Judges shall base their decision on 
     economic, competitive, and programming information presented 
     by the parties, including--'';
       (iv) by amending clause (iii) to read as follows:
       ``(iii) Effective date for decision of copyright royalty 
     judges.--The obligation to pay the royalty fees established 
     under a determination that is made by the Copyright Royalty 
     Judges in a proceeding under this paragraph shall be 
     effective as of January 1, 2010.''; and
       (v) in clause (iv)--

       (I) in the heading, by striking ``fee'' and inserting 
     ``fees''; and
       (II) by striking ``fee referred to in (iii)'' and inserting 
     ``fees referred to in clause (iii)''.

       (2) Paragraph (2) is amended to read as follows:
       ``(2) Annual royalty fee adjustment.--Effective January 1 
     of each year, the royalty fee payable under subsection 
     (b)(1)(B) for the secondary transmission of the primary 
     transmissions of network stations and non-network stations 
     shall be adjusted by the Copyright Royalty Judges to reflect 
     any changes occurring in the cost of living as determined by 
     the most recent Consumer Price Index (for all consumers and 
     for all items) published by the Secretary of Labor before 
     December 1 of the preceding year. Notification of the 
     adjusted fees shall be published in the Federal Register at 
     least 25 days before January 1.''.
       (f) Definitions.--
       (1) Subscriber.--Section 119(d)(8) is amended to read as 
     follows:
       ``(8) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (2) Local market.--Section 119(d)(11) is amended to read as 
     follows:
       ``(11) Local market.--The term `local market' has the 
     meaning given such term under section 122(j).''.
       (3) Low power television station.--Section 119(d) is 
     amended by striking paragraph (12) and redesignating 
     paragraphs (13) and (14) as paragraphs (12) and (13), 
     respectively.
       (4) Multicast stream.--Section 119(d), as amended by 
     paragraph (3), is further amended by adding at the end the 
     following new paragraph:
       ``(14) Multicast stream.--The term `multicast stream' means 
     a digital stream containing programming and program-related 
     material affiliated with a television network, other than the 
     primary stream.''.
       (5) Primary stream.--Section 119(d), as amended by 
     paragraph (4), is further amended by adding at the end the 
     following new paragraph:
       ``(15) Primary stream.--The term `primary stream' means--
       ``(A) the single digital stream of programming as to which 
     a television broadcast station has the right to mandatory 
     carriage with a satellite carrier under the rules of the 
     Federal Communications Commission in effect on July 1, 2009; 
     or
       ``(B) if there is no stream described in subparagraph (A), 
     then either--
       ``(i) the single digital stream of programming associated 
     with the network last transmitted by the station as an analog 
     signal; or
       ``(ii) if there is no stream described in clause (i), then 
     the single digital stream of programming affiliated with the 
     network that, as of July 1, 2009, had been offered by the 
     television broadcast station for the longest period of 
     time.''.
       (6) Clerical amendment.--Section 119(d) is amended in 
     paragraphs (1), (2), and (5) by striking ``which'' each place 
     it appears and inserting ``that''.
       (g) Superstation Redesignated as Non-Network Station.--
     Section 119 is amended--
       (1) by striking ``superstation'' each place it appears in a 
     heading and each place it appears in text and inserting 
     ``non-network station''; and
       (2) by striking ``superstations'' each place it appears in 
     a heading and each place it appears in text and inserting 
     ``non-network stations''.
       (h) Removal of Certain Provisions.--
       (1) Removal of provisions.--Section 119(a) is amended--
       (A) in paragraph (2), by striking subparagraph (C) and 
     redesignating subparagraph (D) as subparagraph (C);
       (B) by striking paragraph (3) and redesignating paragraphs 
     (4) through (14) as paragraphs (3) through (13), 
     respectively; and
       (C) by striking paragraph (15) and redesignating paragraph 
     (16) as paragraph (14).
       (2) Conforming amendments.--Section 119 is amended--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``(5), (6), and (8)'' and 
     inserting ``(4), (5), and (7)'';
       (ii) in paragraph (2)--

       (I) in subparagraph (A), by striking ``subparagraphs (B) 
     and (C) of this paragraph and paragraphs (5), (6), (7), and 
     (8)'' and inserting ``subparagraph (B) of this paragraph and 
     paragraphs (4), (5), (6), and (7)'';
       (II) in subparagraph (B)(i), by striking the second 
     sentence; and
       (III) in subparagraph (C) (as redesignated), by striking 
     clauses (i) and (ii) and inserting the following:

       ``(i) Initial lists.--A satellite carrier that makes 
     secondary transmissions of a primary transmission made by a 
     network station pursuant to subparagraph (A) shall, not later 
     than 90 days after commencing such secondary transmissions, 
     submit to the network that owns or is affiliated with the 
     network station a list identifying (by name and address, 
     including street or rural route number, city, State, and 9-
     digit zip code) all subscribers to which the satellite 
     carrier makes secondary transmissions of that primary 
     transmission to subscribers in unserved households.

[[Page 7646]]

       ``(ii) Monthly lists.--After the submission of the initial 
     lists under clause (i), the satellite carrier shall, not 
     later than the 15th of each month, submit to the network a 
     list, aggregated by designated market area, identifying (by 
     name and address, including street or rural route number, 
     city, State, and 9-digit zip code) any persons who have been 
     added or dropped as subscribers under clause (i) since the 
     last submission under this subparagraph.''; and
       (iii) in subparagraph (E) of paragraph (3) (as 
     redesignated)--

       (I) by striking ``under paragraph (3) or''; and
       (II) by striking ``paragraph (12)'' and inserting 
     ``paragraph (11)''; and

       (B) in subsection (b)(1), by striking the final sentence.
       (i) Modifications to Provisions for Secondary Transmissions 
     by Satellite Carriers.--
       (1) Predictive model.--Section 119(a)(2)(B)(ii) is amended 
     by adding at the end the following:

       ``(III) Accurate predictive model with respect to digital 
     signals.--Notwithstanding subclause (I), in determining 
     presumptively whether a person resides in an unserved 
     household under subsection (d)(10)(A) with respect to digital 
     signals, a court shall rely on a predictive model set forth 
     by the Federal Communications Commission pursuant to a 
     rulemaking as provided in section 339(c)(3) of the 
     Communications Act of 1934 (47 U.S.C. 339(c)(3)), as that 
     model may be amended by the Commission over time under such 
     section to increase the accuracy of that model. Until such 
     time as the Commission sets forth such model, a court shall 
     rely on the predictive model as recommended by the Commission 
     with respect to digital signals in its Report to Congress in 
     ET Docket No. 05-182, FCC 05-199 (released December 9, 
     2005).''.

       (2) Modifications to statutory license where 
     retransmissions into local market available.--Section 
     119(a)(3) (as redesignated) is amended--
       (A) by striking ``analog'' each place it appears in a 
     heading and text;
       (B) by striking subparagraphs (B), (C), and (D), and 
     inserting the following:
       ``(B) Rules for lawful subscribers as of date of enactment 
     of 2010 act.--In the case of a subscriber of a satellite 
     carrier who, on the day before the date of the enactment of 
     the Satellite Television Extension and Localism Act of 2010, 
     was lawfully receiving the secondary transmission of the 
     primary transmission of a network station under the statutory 
     license under paragraph (2) (in this subparagraph referred to 
     as the `distant signal'), other than subscribers to whom 
     subparagraph (A) applies, the statutory license under 
     paragraph (2) shall apply to secondary transmissions by that 
     satellite carrier to that subscriber of the distant signal of 
     a station affiliated with the same television network, and 
     the subscriber's household shall continue to be considered to 
     be an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, whether or not the subscriber elects 
     to subscribe to receive the secondary transmission of the 
     primary transmission of a local network station affiliated 
     with the same network pursuant to the statutory license under 
     section 122.
       ``(C) Future applicability.--
       ``(i) When local signal available at time of 
     subscription.--The statutory license under paragraph (2) 
     shall not apply to the secondary transmission by a satellite 
     carrier of the primary transmission of a network station to a 
     person who is not a subscriber lawfully receiving such 
     secondary transmission as of the date of the enactment of the 
     Satellite Television Extension and Localism Act of 2010 and, 
     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 network pursuant to 
     the statutory license under section 122.
       ``(ii) When local signal available after subscription.--In 
     the case of a subscriber who lawfully subscribes to and 
     receives the secondary transmission by a satellite carrier of 
     the primary transmission of a network station under the 
     statutory license under paragraph (2) (in this clause 
     referred to as the `distant signal') on or after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the statutory license under paragraph 
     (2) shall apply to secondary transmissions by that satellite 
     carrier to that subscriber of the distant signal of a station 
     affiliated with the same television network, and the 
     subscriber's household shall continue to be considered to be 
     an unserved household with respect to such network, until 
     such time as the subscriber elects to terminate such 
     secondary transmissions, but only if such subscriber 
     subscribes to the secondary transmission of the primary 
     transmission of a local network station affiliated with the 
     same network within 60 days after the satellite carrier makes 
     available to the subscriber such secondary transmission of 
     the primary transmission of such local network station.'';
       (C) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (D), (E), and (F), respectively;
       (D) in subparagraph (E) (as redesignated), by striking 
     ``(C) or (D)'' and inserting ``(B) or (C)''; and
       (E) in subparagraph (F) (as redesignated), by inserting 
     ``9-digit'' before ``zip code''.
       (3) Statutory damages for territorial restrictions.--
     Section 119(a)(6) (as redesignated) is amended--
       (A) in subparagraph (A)(ii), by striking ``$5'' and 
     inserting ``$250'';
       (B) in subparagraph (B)--
       (i) in clause (i), by striking ``$250,000 for each 6-month 
     period'' and inserting ``$2,500,000 for each 3-month 
     period''; and
       (ii) in clause (ii), by striking ``$250,000'' and inserting 
     ``$2,500,000''; and
       (C) by adding at the end the following flush sentences:

     ``The court shall direct one half of any statutory damages 
     ordered under clause (i) to be deposited with the Register of 
     Copyrights for distribution to copyright owners pursuant to 
     subsection (b). The Copyright Royalty Judges shall issue 
     regulations establishing procedures for distributing such 
     funds, on a proportional basis, to copyright owners whose 
     works were included in the secondary transmissions that were 
     the subject of the statutory damages.''.
       (4) Technical amendment.--Section 119(a)(4) (as 
     redesignated) is amended by striking ``and 509''.
       (5) Clerical amendment.--Section 119(a)(2)(B)(iii)(II) is 
     amended by striking ``In this clause'' and inserting ``In 
     this clause,''.
       (j) Moratorium Extension.--Section 119(e) is amended by 
     striking ``May 31, 2010'' and inserting ``December 31, 
     2014''.
       (k) Clerical Amendments.--Section 119 is amended--
       (1) by striking ``of the Code of Federal Regulations'' each 
     place it appears and inserting ``, Code of Federal 
     Regulations''; and
       (2) in subsection (d)(6), by striking ``or the Direct'' and 
     inserting ``, or the Direct''.

     SEC. 103. MODIFICATIONS TO STATUTORY LICENSE FOR SATELLITE 
                   CARRIERS IN LOCAL MARKETS.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 122 is amended by 
     striking ``by satellite carriers within local markets'' and 
     inserting ``of local television programming by satellite''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 122 and 
     inserting the following:

``122. Limitations on exclusive rights: Secondary transmissions of 
              local television programming by satellite.''.
       (b) Statutory License.--Section 122(a) is amended to read 
     as follows:
       ``(a) Secondary Transmissions Into Local Markets.--
       ``(1) Secondary transmissions of television broadcast 
     stations within a local market.--A secondary transmission of 
     a performance or display of a work embodied in a primary 
     transmission of a television broadcast station into the 
     station's local market shall be subject to statutory 
     licensing under this section if--
       ``(A) the secondary transmission is made by a satellite 
     carrier to the public;
       ``(B) with regard to secondary transmissions, the satellite 
     carrier is in compliance with the rules, regulations, or 
     authorizations of the Federal Communications Commission 
     governing the carriage of television broadcast station 
     signals; and
       ``(C) the satellite carrier makes a direct or indirect 
     charge for the secondary transmission to--
       ``(i) each subscriber receiving the secondary transmission; 
     or
       ``(ii) a distributor that has contracted with the satellite 
     carrier for direct or indirect delivery of the secondary 
     transmission to the public.
       ``(2) Significantly viewed stations.--
       ``(A) In general.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall be subject to statutory licensing 
     under this paragraph if the secondary transmission is of the 
     primary transmission of a network station or a non-network 
     station to a subscriber who resides outside the station's 
     local market 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) Waiver.--A subscriber who is denied the secondary 
     transmission of the primary transmission of a network station 
     or a non-network station under subparagraph (A) may request a 
     waiver from such denial by submitting a request, through the 
     subscriber's satellite carrier, to the network station or 
     non-network station in the local market affiliated with the 
     same network or non-network where the subscriber is located. 
     The network station or non-network station shall accept or 
     reject the subscriber's request for a waiver within 30 days 
     after receipt of the request.

[[Page 7647]]

     If the network station or non-network station fails to accept 
     or reject the subscriber's request for a waiver within that 
     30-day period, that network station or non-network station 
     shall be deemed to agree to the waiver request.
       ``(3) Secondary transmission of low power programming.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), a 
     secondary transmission of a performance or display of a work 
     embodied in a primary transmission of a television broadcast 
     station to subscribers who receive secondary transmissions of 
     primary transmissions under paragraph (1) shall be subject to 
     statutory licensing under this paragraph if the secondary 
     transmission is of the primary transmission of a television 
     broadcast station that is licensed as a low power television 
     station, to a subscriber who resides within the same 
     designated market area as the station that originates the 
     transmission.
       ``(B) 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.
       ``(C) No impact on other secondary transmissions 
     obligations.--A satellite carrier that makes secondary 
     transmissions of a primary transmission of a low power 
     television station under a statutory license provided under 
     this section is not required, by reason of such secondary 
     transmissions, to make any other secondary transmissions.
       ``(4) Special exceptions.--A secondary transmission of a 
     performance or display of a work embodied in a primary 
     transmission of a television broadcast station to subscribers 
     who receive secondary transmissions of primary transmissions 
     under paragraph (1) shall, if the secondary transmission is 
     made by a satellite carrier that complies with the 
     requirements of paragraph (1), be subject to statutory 
     licensing under this paragraph as follows:
       ``(A) 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 this paragraph 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 C.F.R. 76.51).
       ``(B) States with all network stations and non-network 
     stations in same local market.--In a State in which all 
     network stations and non-network stations 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 this paragraph 
     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 title 47, Code of Federal Regulations).
       ``(C) Additional stations.--In the case of that State in 
     which are located 4 counties that--
       ``(i) on January 1, 2004, were in local markets principally 
     comprised of counties in another State, and
       ``(ii) had a combined total of 41,340 television 
     households, according to the U.S. Television Household 
     Estimates by Nielsen Media Research for 2004,

     the statutory license provided under this paragraph shall 
     apply to secondary transmissions by a satellite carrier to 
     subscribers in any such county of the primary transmissions 
     of any network station located in that State, if the 
     satellite carrier was making such secondary transmissions to 
     any subscribers in that county on January 1, 2004.
       ``(D) 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 this paragraph 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.
       ``(E) Networks of noncommercial educational broadcast 
     stations.--In the case of a system of three or more 
     noncommercial educational broadcast stations licensed to a 
     single State, public agency, or political, educational, or 
     special purpose subdivision of a State, the statutory license 
     provided for in this paragraph shall apply to the secondary 
     transmission of the primary transmission of such system to 
     any subscriber in any county or county equivalent within such 
     State, if such subscriber is located in a designated market 
     area that is not otherwise eligible to receive the secondary 
     transmission of the primary transmission of a noncommercial 
     educational broadcast station located within the State 
     pursuant to paragraph (1).
       ``(5) Applicability of royalty rates and procedures.--The 
     royalty rates and procedures under section 119(b) shall apply 
     to the secondary transmissions to which the statutory license 
     under paragraph (4) applies.''.
       (c) Reporting Requirements.--Section 122(b) is amended--
       (1) in paragraph (1), by striking ``station a list'' and 
     all that follows through the end and inserting the following: 
     ``station--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) all 
     subscribers to which the satellite carrier makes secondary 
     transmissions of that primary transmission under subsection 
     (a); and
       ``(B) a separate list, aggregated by designated market area 
     (by name and address, including street or rural route number, 
     city, State, and 9-digit zip code), which shall indicate 
     those subscribers being served pursuant to paragraph (2) of 
     subsection (a).''; and
       (2) in paragraph (2), by striking ``network a list'' and 
     all that follows through the end and inserting the following: 
     ``network--
       ``(A) a list identifying (by name in alphabetical order and 
     street address, including county and 9-digit zip code) any 
     subscribers who have been added or dropped as subscribers 
     since the last submission under this subsection; and
       ``(B) a separate list, aggregated by designated market area 
     (by name and street address, including street or rural route 
     number, city, State, and 9-digit zip code), identifying those 
     subscribers whose service pursuant to paragraph (2) of 
     subsection (a) has been added or dropped since the last 
     submission under this subsection.''.
       (d) No Royalty Fee for Certain Secondary Transmissions.--
     Section 122(c) is amended--
       (1) in the heading, by inserting ``for Certain Secondary 
     Transmissions'' after ``Required''; and
       (2) by striking ``subsection (a)'' and inserting 
     ``paragraphs (1), (2), and (3) of subsection (a)''.
       (e)  Violations for Territorial Restrictions.--
       (1) Modification to statutory damages.--Section 122(f) is 
     amended--
       (A) in paragraph (1)(B), by striking ``$5'' and inserting 
     ``$250''; and
       (B) in paragraph (2), by striking ``$250,000'' each place 
     it appears and inserting ``$2,500,000''.
       (2) Conforming amendments for additional stations.--Section 
     122 is amended--
       (A) in subsection (f), by striking ``section 119 or'' each 
     place it appears and inserting the following: ``section 119, 
     subject to statutory licensing by reason of paragraph (2)(A), 
     (3), or (4) of subsection (a), or subject to''; and
       (B) in subsection (g), by striking ``section 119 or'' and 
     inserting the following: ``section 119, paragraph (2)(A), 
     (3), or (4) of subsection (a), or''.
       (f) Definitions.--Section 122(j) is amended--
       (1) in paragraph (1), by striking ``which contracts'' and 
     inserting ``that contracts'';
       (2) by redesignating paragraphs (4) and (5) as paragraphs 
     (6) and (7), respectively;
       (3) in paragraph (3)--
       (A) by redesignating such paragraph as paragraph (4);
       (B) in the heading of such paragraph, by inserting ``non-
     network station;'' after ``Network station;''; and
       (C) by inserting ```non-network station','' after 
     ```network station','';
       (4) by inserting after paragraph (2) the following:
       ``(3) Low power television station.--The term `low power 
     television station' means a low power TV station as defined 
     in 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.'';
       (5) by inserting after paragraph (4) (as redesignated) the 
     following:
       ``(5) Noncommercial educational broadcast station.--The 
     term `noncommercial educational broadcast station' means a 
     television broadcast station that is a noncommercial 
     educational broadcast station as defined in section 397 of 
     the Communications Act of 1934, as in effect on the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010.''; and
       (6) by amending paragraph (6) (as redesignated) to read as 
     follows:
       ``(6) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     satellite carrier and pays a fee for the service, directly or 
     indirectly, to the satellite carrier or to a distributor.''.

[[Page 7648]]



     SEC. 104. MODIFICATIONS TO CABLE SYSTEM SECONDARY 
                   TRANSMISSION RIGHTS UNDER SECTION 111.

       (a) Heading Renamed.--
       (1) In general.--The heading of section 111 is amended by 
     inserting at the end the following: ``of broadcast 
     programming by cable''.
       (2) Table of contents.--The table of contents for chapter 1 
     is amended by striking the item relating to section 111 and 
     inserting the following:

``111. Limitations on exclusive rights: Secondary transmissions of 
              broadcast programming by cable.''.
       (b) Technical Amendment.--Section 111(a)(4) is amended by 
     striking ``; or'' and inserting ``or section 122;''.
       (c) Statutory License for Secondary Transmissions by Cable 
     Systems.--Section 111(d) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``A cable system whose secondary'' and 
     inserting the following: ``Statement of account and royalty 
     fees.--Subject to paragraph (5), a cable system whose 
     secondary''; and
       (ii) by striking ``by regulation--'' and inserting ``by 
     regulation the following:'';
       (B) in subparagraph (A)--
       (i) by striking ``a statement of account'' and inserting 
     ``A statement of account''; and
       (ii) by striking ``; and'' and inserting a period; and
       (C) by striking subparagraphs (B), (C), and (D) and 
     inserting the following:
       ``(B) Except in the case of a cable system whose royalty 
     fee is specified in subparagraph (E) or (F), a total royalty 
     fee payable to copyright owners pursuant to paragraph (3) for 
     the period covered by the statement, computed on the basis of 
     specified percentages of the gross receipts from subscribers 
     to the cable service during such period for the basic service 
     of providing secondary transmissions of primary broadcast 
     transmitters, as follows:
       ``(i) 1.064 percent of such gross receipts for the 
     privilege of further transmitting, beyond the local service 
     area of such primary transmitter, any non-network programming 
     of a primary transmitter in whole or in part, such amount to 
     be applied against the fee, if any, payable pursuant to 
     clauses (ii) through (iv);
       ``(ii) 1.064 percent of such gross receipts for the first 
     distant signal equivalent;
       ``(iii) 0.701 percent of such gross receipts for each of 
     the second, third, and fourth distant signal equivalents; and
       ``(iv) 0.330 percent of such gross receipts for the fifth 
     distant signal equivalent and each distant signal equivalent 
     thereafter.
       ``(C) In computing amounts under clauses (ii) through (iv) 
     of subparagraph (B)--
       ``(i) any fraction of a distant signal equivalent shall be 
     computed at its fractional value;
       ``(ii) in the case of any cable system located partly 
     within and partly outside of the local service area of a 
     primary transmitter, gross receipts shall be limited to those 
     gross receipts derived from subscribers located outside of 
     the local service area of such primary transmitter; and
       ``(iii) if a cable system provides a secondary transmission 
     of a primary transmitter to some but not all communities 
     served by that cable system--

       ``(I) the gross receipts and the distant signal equivalent 
     values for such secondary transmission shall be derived 
     solely on the basis of the subscribers in those communities 
     where the cable system provides such secondary transmission; 
     and
       ``(II) the total royalty fee for the period paid by such 
     system shall not be less than the royalty fee calculated 
     under subparagraph (B)(i) multiplied by the gross receipts 
     from all subscribers to the system.

       ``(D) A cable system that, on a statement submitted before 
     the date of the enactment of the Satellite Television 
     Extension and Localism Act of 2010, computed its royalty fee 
     consistent with the methodology under subparagraph (C)(iii), 
     or that amends a statement filed before such date of 
     enactment to compute the royalty fee due using such 
     methodology, shall not be subject to an action for 
     infringement, or eligible for any royalty refund or offset, 
     arising out of its use of such methodology on such statement.
       ``(E) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are $263,800 or less--
       ``(i) gross receipts of the cable system for the purpose of 
     this paragraph shall be computed by subtracting from such 
     actual gross receipts the amount by which $263,800 exceeds 
     such actual gross receipts, except that in no case shall a 
     cable system's gross receipts be reduced to less than 
     $10,400; and
       ``(ii) the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be 0.5 
     percent, regardless of the number of distant signal 
     equivalents, if any.
       ``(F) If the actual gross receipts paid by subscribers to a 
     cable system for the period covered by the statement for the 
     basic service of providing secondary transmissions of primary 
     broadcast transmitters are more than $263,800 but less than 
     $527,600, the royalty fee payable under this paragraph to 
     copyright owners pursuant to paragraph (3) shall be--
       ``(i) 0.5 percent of any gross receipts up to $263,800, 
     regardless of the number of distant signal equivalents, if 
     any; and
       ``(ii) 1 percent of any gross receipts in excess of 
     $263,800, but less than $527,600, regardless of the number of 
     distant signal equivalents, if any.
       ``(G) A filing fee, as determined by the Register of 
     Copyrights pursuant to section 708(a).'';
       (2) in paragraph (2), in the first sentence--
       (A) by striking ``The Register of Copyrights'' and 
     inserting the following ``Handling of fees.--The Register of 
     Copyrights''; and
       (B) by inserting ``(including the filing fee specified in 
     paragraph (1)(G))'' after ``shall receive all fees'';
       (3) in paragraph (3)--
       (A) by striking ``The royalty fees'' and inserting the 
     following: ``Distribution of royalty fees to copyright 
     owners.--The royalty fees'';
       (B) in subparagraph (A)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking ``; and'' and inserting a period;
       (C) in subparagraph (B)--
       (i) by striking ``any such'' and inserting ``Any such''; 
     and
       (ii) by striking the semicolon and inserting a period; and
       (D) in subparagraph (C), by striking ``any such'' and 
     inserting ``Any such'';
       (4) in paragraph (4), by striking ``The royalty fees'' and 
     inserting the following: ``Procedures for royalty fee 
     distribution.--The royalty fees''; and
       (5) by adding at the end the following new paragraphs:
       ``(5) 3.75 percent rate and syndicated exclusivity 
     surcharge not applicable to multicast streams.--The royalty 
     rates specified in sections 256.2(c) and 256.2(d) of title 
     37, Code of Federal Regulations (commonly referred to as the 
     `3.75 percent rate' and the `syndicated exclusivity 
     surcharge', respectively), as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010, as such rates may be adjusted, or such sections 
     redesignated, thereafter by the Copyright Royalty Judges, 
     shall not apply to the secondary transmission of a multicast 
     stream.
       ``(6) Verification of accounts and fee payments.--The 
     Register of Copyrights shall issue regulations to provide for 
     the confidential verification by copyright owners whose works 
     were embodied in the secondary transmissions of primary 
     transmissions pursuant to this section of the information 
     reported on the semiannual statements of account filed under 
     this subsection for accounting periods beginning on or after 
     January 1, 2010, in order that the auditor designated under 
     subparagraph (A) is able to confirm the correctness of the 
     calculations and royalty payments reported therein. The 
     regulations shall--
       ``(A) establish procedures for the designation of a 
     qualified independent auditor--
       ``(i) with exclusive authority to request verification of 
     such a statement of account on behalf of all copyright owners 
     whose works were the subject of secondary transmissions of 
     primary transmissions by the cable system (that deposited the 
     statement) during the accounting period covered by the 
     statement; and
       ``(ii) who is not an officer, employee, or agent of any 
     such copyright owner for any purpose other than such audit;
       ``(B) establish procedures for safeguarding all non-public 
     financial and business information provided under this 
     paragraph;
       ``(C)(i) require a consultation period for the independent 
     auditor to review its conclusions with a designee of the 
     cable system;
       ``(ii) establish a mechanism for the cable system to remedy 
     any errors identified in the auditor's report and to cure any 
     underpayment identified; and
       ``(iii) provide an opportunity to remedy any disputed facts 
     or conclusions;
       ``(D) limit the frequency of requests for verification for 
     a particular cable system and the number of audits that a 
     multiple system operator can be required to undergo in a 
     single year; and
       ``(E) permit requests for verification of a statement of 
     account to be made only within 3 years after the last day of 
     the year in which the statement of account is filed.
       ``(7) Acceptance of additional deposits.--Any royalty fee 
     payments received by the Copyright Office from cable systems 
     for the secondary transmission of primary transmissions that 
     are in addition to the payments calculated and deposited in 
     accordance with this subsection shall be deemed to have been 
     deposited for the particular accounting period for which they 
     are received and shall be distributed as specified under this 
     subsection.''.
       (d) Effective Date of New Royalty Fee Rates.--The royalty 
     fee rates established in section 111(d)(1)(B) of title 17, 
     United States Code, as amended by subsection (c)(1)(C) of 
     this section, shall take effect commencing with the first 
     accounting period occurring in 2010.

[[Page 7649]]

       (e) Definitions.--Section 111(f) is amended--
       (1) by striking the first undesignated paragraph and 
     inserting the following:
       ``(1) Primary transmission.--A `primary transmission' is a 
     transmission made to the public by a transmitting facility 
     whose signals are being received and further transmitted by a 
     secondary transmission service, regardless of where or when 
     the performance or display was first transmitted. In the case 
     of a television broadcast station, the primary stream and any 
     multicast streams transmitted by the station constitute 
     primary transmissions.'';
       (2) in the second undesignated paragraph--
       (A) by striking ``A `secondary transmission''' and 
     inserting the following:
       ``(2) Secondary transmission.--A `secondary 
     transmission'''; and
       (B) by striking ```cable system''' and inserting ``cable 
     system'';
       (3) in the third undesignated paragraph--
       (A) by striking ``A `cable system''' and inserting the 
     following:
       ``(3) Cable system.--A `cable system'''; and
       (B) by striking ``Territory, Trust Territory, or 
     Possession'' and inserting ``territory, trust territory, or 
     possession of the United States'';
       (4) in the fourth undesignated paragraph, in the first 
     sentence--
       (A) by striking ``The `local service area of a primary 
     transmitter', in the case of a television broadcast station, 
     comprises the area in which such station is entitled to 
     insist'' and inserting the following:
       ``(4) Local service area of a primary transmitter.--The 
     `local service area of a primary transmitter', in the case of 
     both the primary stream and any multicast streams transmitted 
     by a primary transmitter that is a television broadcast 
     station, comprises the area where such primary transmitter 
     could have insisted'';
       (B) by striking ``76.59 of title 47 of the Code of Federal 
     Regulations'' and inserting the following: ``76.59 of title 
     47, Code of Federal Regulations, or within the noise-limited 
     contour as defined in 73.622(e)(1) of title 47, Code of 
     Federal Regulations''; and
       (C) by striking ``as defined by the rules and regulations 
     of the Federal Communications Commission,'';
       (5) by amending the fifth undesignated paragraph to read as 
     follows:
       ``(5) Distant signal equivalent.--
       ``(A) In general.--Except as provided under subparagraph 
     (B), a `distant signal equivalent'--
       ``(i) is the value assigned to the secondary transmission 
     of any non-network television programming carried by a cable 
     system in whole or in part beyond the local service area of 
     the primary transmitter of such programming; and
       ``(ii) is computed by assigning a value of one to each 
     primary stream and to each multicast stream (other than a 
     simulcast) that is an independent station, and by assigning a 
     value of one-quarter to each primary stream and to each 
     multicast stream (other than a simulcast) that is a network 
     station or a noncommercial educational station.
       ``(B) Exceptions.--The values for independent, network, and 
     noncommercial educational stations specified in subparagraph 
     (A) are subject to the following:
       ``(i) Where the rules and regulations of the Federal 
     Communications Commission require a cable system to omit the 
     further transmission of a particular program and such rules 
     and regulations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, or where such rules and 
     regulations in effect on the date of the enactment of the 
     Copyright Act of 1976 permit a cable system, at its election, 
     to effect such omission and substitution of a nonlive program 
     or to carry additional programs not transmitted by primary 
     transmitters within whose local service area the cable system 
     is located, no value shall be assigned for the substituted or 
     additional program.
       ``(ii) Where the rules, regulations, or authorizations of 
     the Federal Communications Commission in effect on the date 
     of the enactment of the Copyright Act of 1976 permit a cable 
     system, at its election, to omit the further transmission of 
     a particular program and such rules, regulations, or 
     authorizations also permit the substitution of another 
     program embodying a performance or display of a work in place 
     of the omitted transmission, the value assigned for the 
     substituted or additional program shall be, in the case of a 
     live program, the value of one full distant signal equivalent 
     multiplied by a fraction that has as its numerator the number 
     of days in the year in which such substitution occurs and as 
     its denominator the number of days in the year.
       ``(iii) In the case of the secondary transmission of a 
     primary transmitter that is a television broadcast station 
     pursuant to the late-night or specialty programming rules of 
     the Federal Communications Commission, or the secondary 
     transmission of a primary transmitter that is a television 
     broadcast station on a part-time basis where full-time 
     carriage is not possible because the cable system lacks the 
     activated channel capacity to retransmit on a full-time basis 
     all signals that it is authorized to carry, the values for 
     independent, network, and noncommercial educational stations 
     set forth in subparagraph (A), as the case may be, shall be 
     multiplied by a fraction that is equal to the ratio of the 
     broadcast hours of such primary transmitter retransmitted by 
     the cable system to the total broadcast hours of the primary 
     transmitter.
       ``(iv) No value shall be assigned for the secondary 
     transmission of the primary stream or any multicast streams 
     of a primary transmitter that is a television broadcast 
     station in any community that is within the local service 
     area of the primary transmitter.'';
       (6) by striking the sixth undesignated paragraph and 
     inserting the following:
       ``(6) Network station.--
       ``(A) Treatment of primary stream.--The term `network 
     station' shall be applied to a primary stream of a television 
     broadcast station that is owned or operated by, or affiliated 
     with, one or more of the television networks in the United 
     States providing nationwide transmissions, and that transmits 
     a substantial part of the programming supplied by such 
     networks for a substantial part of the primary stream's 
     typical broadcast day.
       ``(B) Treatment of multicast streams.--The term `network 
     station' shall be applied to a multicast stream on which a 
     television broadcast station transmits all or substantially 
     all of the programming of an interconnected program service 
     that--
       ``(i) is owned or operated by, or affiliated with, one or 
     more of the television networks described in subparagraph 
     (A); and
       ``(ii) offers programming on a regular basis for 15 or more 
     hours per week to at least 25 of the affiliated television 
     licensees of the interconnected program service in 10 or more 
     States.'';
       (7) by striking the seventh undesignated paragraph and 
     inserting the following:
       ``(7) Independent station.--The term `independent station' 
     shall be applied to the primary stream or a multicast stream 
     of a television broadcast station that is not a network 
     station or a noncommercial educational station.'';
       (8) by striking the eighth undesignated paragraph and 
     inserting the following:
       ``(8) Noncommercial educational station.--The term 
     `noncommercial educational station' shall be applied to the 
     primary stream or a multicast stream of a television 
     broadcast station that is a noncommercial educational 
     broadcast station as defined in section 397 of the 
     Communications Act of 1934, as in effect on the date of the 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.''; and
       (9) by adding at the end the following:
       ``(9) Primary stream.--A `primary stream' is--
       ``(A) the single digital stream of programming that, before 
     June 12, 2009, was substantially duplicating the programming 
     transmitted by the television broadcast station as an analog 
     signal; or
       ``(B) if there is no stream described in subparagraph (A), 
     then the single digital stream of programming transmitted by 
     the television broadcast station for the longest period of 
     time.
       ``(10) Primary transmitter.--A `primary transmitter' is a 
     television or radio broadcast station licensed by the Federal 
     Communications Commission, or by an appropriate governmental 
     authority of Canada or Mexico, that makes primary 
     transmissions to the public.
       ``(11) Multicast stream.--A `multicast stream' is a digital 
     stream of programming that is transmitted by a television 
     broadcast station and is not the station's primary stream.
       ``(12) Simulcast.--A `simulcast' is a multicast stream of a 
     television broadcast station that duplicates the programming 
     transmitted by the primary stream or another multicast stream 
     of such station.
       ``(13) Subscriber; subscribe.--
       ``(A) Subscriber.--The term `subscriber' means a person or 
     entity that receives a secondary transmission service from a 
     cable system and pays a fee for the service, directly or 
     indirectly, to the cable system.
       ``(B) Subscribe.--The term `subscribe' means to elect to 
     become a subscriber.''.
       (f) Timing of Section 111 Proceedings.--Section 804(b)(1) 
     is amended by striking ``2005'' each place it appears and 
     inserting ``2015''.
       (g) Technical and Conforming Amendments.--
       (1) Corrections to fix level designations.--Section 111 is 
     amended--
       (A) in subsections (a), (c), and (e), by striking 
     ``clause'' each place it appears and inserting ``paragraph'';
       (B) in subsection (c)(1), by striking ``clauses'' and 
     inserting ``paragraphs''; and
       (C) in subsection (e)(1)(F), by striking ``subclause'' and 
     inserting ``subparagraph''.
       (2) Conforming amendment to hyphenate nonnetwork.--Section 
     111 is amended by striking ``nonnetwork'' each place it 
     appears and inserting ``non-network''.
       (3) Previously undesignated paragraph.--Section 111(e)(1) 
     is amended by striking ``second paragraph of subsection (f)'' 
     and inserting ``subsection (f)(2)''.
       (4) Removal of superfluous ands.--Section 111(e) is 
     amended--

[[Page 7650]]

       (A) in paragraph (1)(A), by striking ``and'' at the end;
       (B) in paragraph (1)(B), by striking ``and'' at the end;
       (C) in paragraph (1)(C), by striking ``and'' at the end;
       (D) in paragraph (1)(D), by striking ``and'' at the end; 
     and
       (E) in paragraph (2)(A), by striking ``and'' at the end.
       (5) Removal of variant forms references.--Section 111 is 
     amended--
       (A) in subsection (e)(4), by striking ``, and each of its 
     variant forms,''; and
       (B) in subsection (f), by striking ``and their variant 
     forms''.
       (6) Correction to territory reference.--Section 111(e)(2) 
     is amended in the matter preceding subparagraph (A) by 
     striking ``three territories'' and inserting ``five 
     entities''.
       (h) Effective Date With Respect to Multicast Streams.--
       (1) In general.--Subject to paragraphs (2) and (3), the 
     amendments made by this section, to the extent such 
     amendments assign a distant signal equivalent value to the 
     secondary transmission of the multicast stream of a primary 
     transmitter, shall take effect on the date of the enactment 
     of this Act.
       (2) Delayed applicability.--
       (A) Secondary transmissions of a multicast stream beyond 
     the local service area of its primary transmitter before 2010 
     act.--In any case in which a cable system was making 
     secondary transmissions of a multicast stream beyond the 
     local service area of its primary transmitter before the date 
     of the enactment of this Act, a distant signal equivalent 
     value (referred to in paragraph (1)) shall not be assigned to 
     secondary transmissions of such multicast stream that are 
     made on or before June 30, 2010.
       (B) Multicast streams subject to preexisting written 
     agreements for the secondary transmission of such streams.--
     In any case in which the secondary transmission of a 
     multicast stream of a primary transmitter is the subject of a 
     written agreement entered into on or before June 30, 2009, 
     between a cable system or an association representing the 
     cable system and a primary transmitter or an association 
     representing the primary transmitter, a distant signal 
     equivalent value (referred to in paragraph (1)) shall not be 
     assigned to secondary transmissions of such multicast stream 
     beyond the local service area of its primary transmitter that 
     are made on or before the date on which such written 
     agreement expires.
       (C) No refunds or offsets for prior statements of 
     account.--A cable system that has reported secondary 
     transmissions of a multicast stream beyond the local service 
     area of its primary transmitter on a statement of account 
     deposited under section 111 of title 17, United States Code, 
     before the date of the enactment of this Act shall not be 
     entitled to any refund, or offset, of royalty fees paid on 
     account of such secondary transmissions of such multicast 
     stream.
       (3) Definitions.--In this subsection, the terms ``cable 
     system'', ``secondary transmission'', ``multicast stream'', 
     and ``local service area of a primary transmitter'' have the 
     meanings given those terms in section 111(f) of title 17, 
     United States Code, as amended by this section.

     SEC. 105. CERTAIN WAIVERS GRANTED TO PROVIDERS OF LOCAL-INTO-
                   LOCAL SERVICE FOR ALL DMAS.

       Section 119 is amended by adding at the end the following 
     new subsection:
       ``(g) Certain Waivers Granted to Providers of Local-Into-
     Local Service to All DMAs.--
       ``(1) Injunction waiver.--A court that issued an injunction 
     pursuant to subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction if 
     the court recognizes the entity against which the injunction 
     was issued as a qualified carrier.
       ``(2) Limited temporary waiver.--
       ``(A) In general.--Upon a request made by a satellite 
     carrier, a court that issued an injunction against such 
     carrier under subsection (a)(7)(B) before the date of the 
     enactment of this subsection shall waive such injunction with 
     respect to the statutory license provided under subsection 
     (a)(2) to the extent necessary to allow such carrier to make 
     secondary transmissions of primary transmissions made by a 
     network station to unserved households located in short 
     markets in which such carrier was not providing local service 
     pursuant to the license under section 122 as of December 31, 
     2009.
       ``(B) Expiration of temporary waiver.--A temporary waiver 
     of an injunction under subparagraph (A) shall expire after 
     the end of the 120-day period beginning on the date such 
     temporary waiver is issued unless extended for good cause by 
     the court making the temporary waiver.
       ``(C) Failure to provide local-into-local service to all 
     dmas.--
       ``(i) Failure to act reasonably and in good faith.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to act reasonably or has failed to 
     make a good faith effort to provide local-into-local service 
     to all DMAs, such failure--

       ``(I) is actionable as an act of infringement under section 
     501 and the court may in its discretion impose the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(II) shall result in the termination of the waiver issued 
     under subparagraph (A).

       ``(ii) Failure to provide local-into-local service.--If the 
     court issuing a temporary waiver under subparagraph (A) 
     determines that the satellite carrier that made the request 
     for such waiver has failed to provide local-into-local 
     service to all DMAs, but determines that the carrier acted 
     reasonably and in good faith, the court may in its discretion 
     impose financial penalties that reflect--

       ``(I) the degree of control the carrier had over the 
     circumstances that resulted in the failure;
       ``(II) the quality of the carrier's efforts to remedy the 
     failure; and
       ``(III) the severity and duration of any service 
     interruption.

       ``(D) Single temporary waiver available.--An entity may 
     only receive one temporary waiver under this paragraph.
       ``(E) Short market defined.--For purposes of this 
     paragraph, the term `short market' means a local market in 
     which programming of one or more of the four most widely 
     viewed television networks nationwide as measured on the date 
     of the enactment of this subsection is not offered on the 
     primary stream transmitted by any local television broadcast 
     station.
       ``(3) Establishment of qualified carrier recognition.--
       ``(A) Statement of eligibility.--An entity seeking to be 
     recognized as a qualified carrier under this subsection shall 
     file a statement of eligibility with the court that imposed 
     the injunction. A statement of eligibility must include--
       ``(i) an affidavit that the entity is providing local-into-
     local service to all DMAs;
       ``(ii) a motion for a waiver of the injunction;
       ``(iii) a motion that the court appoint a special master 
     under Rule 53 of the Federal Rules of Civil Procedure;
       ``(iv) an agreement by the carrier to pay all expenses 
     incurred by the special master under paragraph (4)(B)(ii); 
     and
       ``(v) a certification issued pursuant to section 342(a) of 
     Communications Act of 1934.
       ``(B) Grant of recognition as a qualified carrier.--Upon 
     receipt of a statement of eligibility, the court shall 
     recognize the entity as a qualified carrier and issue the 
     waiver under paragraph (1). Upon motion pursuant to 
     subparagraph (A)(iii), the court shall appoint a special 
     master to conduct the examination and provide a report to the 
     court as provided in paragraph (4)(B).
       ``(C) Voluntary termination.--At any time, an entity 
     recognized as a qualified carrier may file a statement of 
     voluntary termination with the court certifying that it no 
     longer wishes to be recognized as a qualified carrier. Upon 
     receipt of such statement, the court shall reinstate the 
     injunction waived under paragraph (1).
       ``(D) Loss of recognition prevents future recognition.--No 
     entity may be recognized as a qualified carrier if such 
     entity had previously been recognized as a qualified carrier 
     and subsequently lost such recognition or voluntarily 
     terminated such recognition under subparagraph (C).
       ``(4) Qualified carrier obligations and compliance.--
       ``(A) Continuing obligations.--
       ``(i) In general.--An entity recognized as a qualified 
     carrier shall continue to provide local-into-local service to 
     all DMAs.
       ``(ii) Cooperation with compliance examination.--An entity 
     recognized as a qualified carrier shall fully cooperate with 
     the special master appointed by the court under paragraph 
     (3)(B) in an examination set forth in subparagraph (B).
       ``(B) Qualified carrier compliance examination.--
       ``(i) Examination and report.--A special master appointed 
     by the court under paragraph (3)(B) shall conduct an 
     examination of, and file a report on, the qualified carrier's 
     compliance with the royalty payment and household eligibility 
     requirements of the license under this section. The report 
     shall address the qualified carrier's conduct during the 
     period beginning on the date on which the qualified carrier 
     is recognized as such under paragraph (3)(B) and ending on 
     April 30, 2012.
       ``(ii) Records of qualified carrier.--Beginning on the date 
     that is one year after the date on which the qualified 
     carrier is recognized as such under paragraph (3)(B), but not 
     later than December 1, 2011, the qualified carrier shall 
     provide the special master with all records that the special 
     master considers to be directly pertinent to the following 
     requirements under this section:

       ``(I) Proper calculation and payment of royalties under the 
     statutory license under this section.
       ``(II) Provision of service under this license to eligible 
     subscribers only.

       ``(iii) Submission of report.--The special master shall 
     file the report required by clause (i) not later than July 
     24, 2012, with the court referred to in paragraph (1) that 
     issued the injunction, and the court shall transmit a copy of 
     the report to the Register

[[Page 7651]]

     of Copyrights, the Committees on the Judiciary and on Energy 
     and Commerce of the House of Representatives, and the 
     Committees on the Judiciary and on Commerce, Science, and 
     Transportation of the Senate.
       ``(iv) Evidence of infringement.--The special master shall 
     include in the report a statement of whether the examination 
     by the special master indicated that there is substantial 
     evidence that a copyright holder could bring a successful 
     action under this section against the qualified carrier for 
     infringement.
       ``(v) Subsequent examination.--If the special master's 
     report includes a statement that its examination indicated 
     the existence of substantial evidence that a copyright holder 
     could bring a successful action under this section against 
     the qualified carrier for infringement, the special master 
     shall, not later than 6 months after the report under clause 
     (i) is filed, initiate another examination of the qualified 
     carrier's compliance with the royalty payment and household 
     eligibility requirements of the license under this section 
     since the last report was filed under clause (iii). The 
     special master shall file a report on the results of the 
     examination conducted under this clause with the court 
     referred to in paragraph (1) that issued the injunction, and 
     the court shall transmit a copy to the Register of 
     Copyrights, the Committees on the Judiciary and on Energy and 
     Commerce of the House of Representatives, and the Committees 
     on the Judiciary and on Commerce, Science, and Transportation 
     of the Senate. The report shall include a statement described 
     in clause (iv).
       ``(vi) Compliance.--Upon motion filed by an aggrieved 
     copyright owner, the court recognizing an entity as a 
     qualified carrier shall terminate such designation upon 
     finding that the entity has failed to cooperate with the 
     examinations required by this subparagraph.
       ``(vii) Oversight.--During the period of time that the 
     special master is conducting an examination under this 
     subparagraph, the Comptroller General shall monitor the 
     degree to which the entity seeking to be recognized or 
     recognized as a qualified carrier under paragraph (3) is 
     complying with the special master's examination. The 
     qualified carrier shall make available to the Comptroller 
     General all records and individuals that the Comptroller 
     General considers necessary to meet the Comptroller General's 
     obligations under this clause. The Comptroller General shall 
     report the results of the monitoring required by this clause 
     to the Committees on the Judiciary and on Energy and Commerce 
     of the House of Representatives and the Committees on the 
     Judiciary and on Commerce, Science, and Transportation of the 
     Senate at intervals of not less than six months during such 
     period.
       ``(C) Affirmation.--A qualified carrier shall file an 
     affidavit with the district court and the Register of 
     Copyrights 30 months after such status was granted stating 
     that, to the best of the affiant's knowledge, it is in 
     compliance with the requirements for a qualified carrier. The 
     qualified carrier shall attach to its affidavit copies of all 
     reports or orders issued by the court, the special master, 
     and the Comptroller General.
       ``(D) Compliance determination.--Upon the motion of an 
     aggrieved television broadcast station, the court recognizing 
     an entity as a qualified carrier may make a determination of 
     whether the entity is providing local-into-local service to 
     all DMAs.
       ``(E) Pleading requirement.--In any motion brought under 
     subparagraph (D), the party making such motion shall specify 
     one or more designated market areas (as such term is defined 
     in section 122(j)(2)(C)) for which the failure to provide 
     service is being alleged, and, for each such designated 
     market area, shall plead with particularity the circumstances 
     of the alleged failure.
       ``(F) Burden of proof.--In any proceeding to make a 
     determination under subparagraph (D), and with respect to a 
     designated market area for which failure to provide service 
     is alleged, the entity recognized as a qualified carrier 
     shall have the burden of proving that the entity provided 
     local-into-local service with a good quality satellite signal 
     to at least 90 percent of the households in such designated 
     market area (based on the most recent census data released by 
     the United States Census Bureau) at the time and place 
     alleged.
       ``(5) Failure to provide service.--
       ``(A) Penalties.--If the court recognizing an entity as a 
     qualified carrier finds that such entity has willfully failed 
     to provide local-into-local service to all DMAs, such finding 
     shall result in the loss of recognition of the entity as a 
     qualified carrier and the termination of the waiver provided 
     under paragraph (1), and the court may, in its discretion--
       ``(i) treat such failure as an act of infringement under 
     section 501, and subject such infringement to the remedies 
     provided for in sections 502 through 506 and subsection 
     (a)(6)(B) of this section; and
       ``(ii) impose a fine of not less than $250,000 and not more 
     than $5,000,000.
       ``(B) Exception for nonwillful violation.--If the court 
     determines that the failure to provide local-into-local 
     service to all DMAs is nonwillful, the court may in its 
     discretion impose financial penalties for noncompliance that 
     reflect--
       ``(i) the degree of control the entity had over the 
     circumstances that resulted in the failure;
       ``(ii) the quality of the entity's efforts to remedy the 
     failure and restore service; and
       ``(iii) the severity and duration of any service 
     interruption.
       ``(6) Penalties for violations of license.--A court that 
     finds, under subsection (a)(6)(A), that an entity recognized 
     as a qualified carrier has willfully made a secondary 
     transmission of a primary transmission made by a network 
     station and embodying a performance or display of a work to a 
     subscriber who is not eligible to receive the transmission 
     under this section shall reinstate the injunction waived 
     under paragraph (1), and the court may order statutory 
     damages of not more than $2,500,000.
       ``(7) Local-into-local service to all dmas defined.--For 
     purposes of this subsection:
       ``(A) In general.--An entity provides `local-into-local 
     service to all DMAs' if the entity provides local service in 
     all designated market areas (as such term is defined in 
     section 122(j)(2)(C)) pursuant to the license under section 
     122.
       ``(B) Household coverage.--For purposes of subparagraph 
     (A), an entity that makes available local-into-local service 
     with a good quality satellite signal to at least 90 percent 
     of the households in a designated market area based on the 
     most recent census data released by the United States Census 
     Bureau shall be considered to be providing local service to 
     such designated market area.
       ``(C) Good quality satellite signal defined.--The term 
     `good quality satellite signal' has the meaning given such 
     term under section 342(e)(2) of Communications Act of 
     1934.''.

     SEC. 106. COPYRIGHT OFFICE FEES.

       Section 708(a) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon;
       (3) by inserting after paragraph (9) the following:
       ``(10) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     119 or 122; and
       ``(11) on filing a statement of account based on secondary 
     transmissions of primary transmissions pursuant to section 
     111.''; and
       (4) by adding at the end the following new sentence: ``Fees 
     established under paragraphs (10) and (11) shall be 
     reasonable and may not exceed one-half of the cost necessary 
     to cover reasonable expenses incurred by the Copyright Office 
     for the collection and administration of the statements of 
     account and any royalty fees deposited with such 
     statements.''.

     SEC. 107. TERMINATION OF LICENSE.

       (a) Termination.--Section 119 of title 17, United States 
     Code, as amended by this Act, shall cease to be effective on 
     December 31, 2014.
       (b) Conforming Amendment.--Section 1003(a)(2)(A) of Public 
     Law 111-118 (17 U.S.C. 119 note) is repealed.

     SEC. 108. CONSTRUCTION.

       Nothing in section 111, 119, or 122 of title 17, United 
     States Code, including the amendments made to such sections 
     by this title, shall be construed to affect the meaning of 
     any terms under the Communications Act of 1934, except to the 
     extent that such sections are specifically cross-referenced 
     in such Act or the regulations issued thereunder.

                  TITLE II--COMMUNICATIONS PROVISIONS

     SEC. 201. REFERENCE.

       Except as otherwise provided, whenever in this title an 
     amendment is made to a section or other provision, the 
     reference shall be considered to be made to such section or 
     provision of the Communications Act of 1934 (47 U.S.C. 151 et 
     seq.).

     SEC. 202. EXTENSION OF AUTHORITY.

       Section 325(b) is amended--
       (1) in paragraph (2)(C), by striking ``May 31, 2010'' and 
     inserting ``December 31, 2014''; and
       (2) in paragraph (3)(C), by striking ``June 1, 2010'' each 
     place it appears in clauses (ii) and (iii) and inserting 
     ``January 1, 2015''.

     SEC. 203. SIGNIFICANTLY VIEWED STATIONS.

       (a) In General.--Paragraphs (1) and (2) of section 340(b) 
     are amended to read as follows:
       ``(1) Service limited to subscribers taking local-into-
     local service.--This section shall apply only to 
     retransmissions to subscribers of a satellite carrier who 
     receive retransmissions of a signal from that satellite 
     carrier pursuant to section 338.
       ``(2) Service limitations.--A satellite carrier may 
     retransmit to a subscriber in high definition format the 
     signal of a station determined by the Commission to be 
     significantly viewed under subsection (a) only if such 
     carrier also retransmits in high definition format the signal 
     of a station located in the local market of such subscriber 
     and affiliated with the same network whenever such format is 
     available from such station.''.
       (b) Rulemaking Required.--Within 270 days after the date of 
     the enactment of this Act, the Federal Communications 
     Commission shall take all actions necessary to promulgate a 
     rule to implement the amendments made by subsection (a).

[[Page 7652]]



     SEC. 204. DIGITAL TELEVISION TRANSITION CONFORMING 
                   AMENDMENTS.

       (a) Section 338.--Section 338 is amended--
       (1) in subsection (a), by striking ``(3)  effective date.--
     No satellite'' and all that follows through ``until January 
     1, 2002.''; and
       (2) by amending subsection (g) to read as follows:
       ``(g) Carriage of Local Stations on a Single Reception 
     Antenna.--
       ``(1) Single reception antenna.--Each satellite carrier 
     that retransmits the signals of local television broadcast 
     stations in a local market shall retransmit such stations in 
     such market so that a subscriber may receive such stations by 
     means of a single reception antenna and associated equipment.
       ``(2) Additional reception antenna.--If the carrier 
     retransmits the signals of local television broadcast 
     stations in a local market in high definition format, the 
     carrier shall retransmit such signals in such market so that 
     a subscriber may receive such signals 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 to comply 
     with paragraph (1).''.
       (b) Section 339.--Section 339 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(B), by striking ``Such two network 
     stations'' and all that follows through ``more than two 
     network stations.''; and
       (B) in paragraph (2)--
       (i) in the heading for subparagraph (A), by striking ``to 
     analog signals'';
       (ii) in subparagraph (A)--

       (I) in the heading for clause (i), by striking ``analog'';
       (II) in clause (i)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``October 1, 2004'' and inserting 
     ``October 1, 2009'';

       (III) in the heading for clause (ii), by striking 
     ``analog''; and
       (IV) in clause (ii)--

       (aa) by striking ``analog'' each place it appears; and
       (bb) by striking ``2004'' and inserting ``2009'';
       (iii) by amending subparagraph (B) to read as follows:
       ``(B) Rules for other subscribers.--
       ``(i) In general.--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 affiliated 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 (F)(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--

       ``(aa) 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
       ``(bb) the satellite carrier, within 60 days after such 
     date, submits to each television network the list and 
     statement required by subparagraph (F)(ii).
       ``(ii) Special circumstances.--A subscriber of a satellite 
     carrier who was lawfully receiving the distant signal of a 
     network station on the day before the date of enactment of 
     the Satellite Television Extension and Localism Act of 2010 
     may receive both such distant signal and the local signal of 
     a network station affiliated with the same network until such 
     subscriber chooses to no longer receive such distant signal 
     from such carrier, whether or not such subscriber elects to 
     subscribe to such local signal.'';
       (iv) in subparagraph (C)--

       (I) by striking ``analog'';
       (II) in clause (i), by striking ``the Satellite Home Viewer 
     Extension and Reauthorization Act of 2004; and'' and 
     inserting the following:

     ``the Satellite Television Extension and Localism Act of 2010 
     and, 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 (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber); or''; and

       (III) by amending clause (ii) to read as follows:

       ``(ii) lawfully subscribes to and receives a distant signal 
     on or after the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, and, subsequent to such 
     subscription, the satellite carrier makes available to that 
     subscriber the signal of a local network station affiliated 
     with the same network as the distant signal (and the 
     retransmission of such signal by such carrier can reach such 
     subscriber), unless such person subscribes to the signal of 
     the local network station within 60 days after such signal is 
     made available.'';
       (v) in subparagraph (D)--

       (I) in the heading, by striking ``digital'';
       (II) by striking clauses (i), (iii) through (v), (vii) 
     through (ix), and (xi);
       (III) by redesignating clause (vi) as clause (i) and 
     transferring such clause to appear before clause (ii);
       (IV) by amending such clause (i) (as so redesignated) to 
     read as follows:

       ``(i) Eligibility and signal testing.--A subscriber of a 
     satellite carrier shall be eligible to receive a distant 
     signal of a network station affiliated with the same network 
     under this section if, with respect to a local network 
     station, such subscriber--

       ``(I) is a subscriber whose household is not predicted by 
     the model specified in subsection (c)(3) to receive the 
     signal intensity required under section 73.622(e)(1) or, in 
     the case of a low-power station or translator station 
     transmitting an analog signal, section 73.683(a) of title 47, 
     Code of Federal Regulations, or a successor regulation;
       ``(II) is determined, based on a test conducted in 
     accordance with section 73.686(d) of title 47, Code of 
     Federal Regulations, or any successor regulation, not to be 
     able to receive a signal that exceeds the signal intensity 
     standard in section 73.622(e)(1) or, in the case of a low-
     power station or translator station transmitting an analog 
     signal, section 73.683(a) of such title, or a successor 
     regulation; or
       ``(III) is in an unserved household, as determined under 
     section 119(d)(10)(A) of title 17, United States Code.'';
       (V) in clause (ii)--

       (aa) by striking ``digital'' in the heading;
       (bb) by striking ``digital'' the first two places such term 
     appears;
       (cc) by striking ``Satellite Home Viewer Extension and 
     Reauthorization Act of 2004'' and inserting ``Satellite 
     Television Extension and Localism Act of 2010''; and
       (dd) by striking ``, whether or not such subscriber elects 
     to subscribe to local digital signals'';

       (VI) by inserting after clause (ii) the following new 
     clause:

       ``(iii) Time-shifting prohibited.--In a case in which the 
     satellite carrier makes available to an eligible subscriber 
     under this subparagraph the signal of a local network station 
     pursuant to section 338, the carrier may only provide the 
     distant signal of a station affiliated with the same network 
     to that subscriber if, in the case of any local market in the 
     48 contiguous States of the United States, the distant signal 
     is the secondary transmission of a station whose prime time 
     network programming is generally broadcast simultaneously 
     with, or later than, the prime time network programming of 
     the affiliate of the same network in the local market.''; and

       (VII) by redesignating clause (x) as clause (iv); and

       (vi) in subparagraph (E), by striking ``distant analog 
     signal or'' and all that follows through ``(B), or (D))'' and 
     inserting ``distant signal'';
       (2) in subsection (c)--
       (A) by amending paragraph (3) to read as follows:
       ``(3) Establishment of improved predictive model and on-
     location testing required.--
       ``(A) Predictive model.--Within 270 days after the date of 
     the enactment of the Satellite Television Extension and 
     Localism Act of 2010, the Commission shall develop and 
     prescribe by rule a point-to-point predictive model for 
     reliably and presumptively determining the ability of 
     individual locations, through the use of an antenna, to 
     receive signals in accordance with the signal intensity 
     standard in section 73.622(e)(1) of title 47, Code of Federal 
     Regulations, or a successor regulation, including to account 
     for the continuing operation of translator stations and low 
     power television stations. In prescribing such model, the 
     Commission shall rely on the Individual Location Longley-Rice 
     model set forth by the Commission in CS Docket No. 98-201, as 
     previously revised with respect to analog signals, and as 
     recommended by the Commission with respect to digital signals 
     in its Report to Congress in ET Docket No. 05-182, FCC 05-199 
     (released December 9, 2005). The Commission shall establish 
     procedures for the continued refinement in the application of 
     the model by the use of additional data as it becomes 
     available.
       ``(B) On-location testing.--The Commission shall issue an 
     order completing its rulemaking proceeding in ET Docket No. 
     06-94 within 270 days after the date of enactment of the 
     Satellite Television Extension and Localism Act of 2010. In 
     conducting such rulemaking, the Commission shall seek ways to 
     minimize consumer burdens associated with on-location 
     testing.'';
       (B) by amending paragraph (4)(A) to read as follows:
       ``(A) In general.--If a subscriber's request for a waiver 
     under paragraph (2) is rejected

[[Page 7653]]

     and the subscriber submits to the subscriber's satellite 
     carrier a request for a test verifying the subscriber's 
     inability to receive a signal of the signal intensity 
     referenced in clause (i) of subsection (a)(2)(D), the 
     satellite carrier and the network station or stations 
     asserting that the retransmission is prohibited with respect 
     to that subscriber shall select a qualified and independent 
     person to conduct the test referenced in such clause. Such 
     test shall be conducted within 30 days after the date the 
     subscriber submits a request for the test. If the written 
     findings and conclusions of a test conducted in accordance 
     with such clause demonstrate that the subscriber does not 
     receive a signal that meets or exceeds the requisite signal 
     intensity standard in such clause, the subscriber shall not 
     be denied the retransmission of a signal of a network station 
     under section 119(d)(10)(A) of title 17, United States 
     Code.'';
       (C) in paragraph (4)(B), by striking ``the signal 
     intensity'' and all that follows through ``United States 
     Code'' and inserting ``such requisite signal intensity 
     standard''; and
       (D) in paragraph (4)(E), by striking ``Grade B intensity''.
       (c) Section 340.--Section 340(i) is amended by striking 
     paragraph (4).

     SEC. 205. APPLICATION PENDING COMPLETION OF RULEMAKINGS.

       (a) In General.--During the period beginning on the date of 
     the enactment of this Act and ending on the date on which the 
     Federal Communications Commission adopts rules pursuant to 
     the amendments to the Communications Act of 1934 made by 
     section 203 and section 204 of this title, the Federal 
     Communications Commission shall follow its rules and 
     regulations promulgated pursuant to sections 338, 339, and 
     340 of the Communications Act of 1934 as in effect on the day 
     before the date of the enactment of this Act.
       (b) Translator Stations and Low Power Television 
     Stations.--Notwithstanding subsection (a), for purposes of 
     determining whether a subscriber within the local market 
     served by a translator station or a low power television 
     station affiliated with a television network is eligible to 
     receive distant signals under section 339 of the 
     Communications Act of 1934, the rules and regulations of the 
     Federal Communications Commission for determining such 
     subscriber's eligibility as in effect on the day before the 
     date of the enactment of this Act shall apply until the date 
     on which the translator station or low power television 
     station is licensed to broadcast a digital signal.
       (c) Definitions.--As used in this subtitle:
       (1) Local market; low power television station; satellite 
     carrier; subscriber; television broadcast station.--The terms 
     ``local market'', ``low power television station'', 
     ``satellite carrier'', ``subscriber'', and ``television 
     broadcast station'' have the meanings given such terms in 
     section 338(k) of the Communications Act of 1934.
       (2) Network station; television network.--The terms 
     ``network station'' and ``television network'' have the 
     meanings given such terms in section 339(d) of such Act.

     SEC. 206. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       Part I of title III is amended by adding at the end the 
     following new section:

     ``SEC. 342. PROCESS FOR ISSUING QUALIFIED CARRIER 
                   CERTIFICATION.

       ``(a) Certification.--The Commission shall issue a 
     certification for the purposes of section 119(g)(3)(A)(iii) 
     of title 17, United States Code, if the Commission determines 
     that--
       ``(1) a satellite carrier is providing local service 
     pursuant to the statutory license under section 122 of such 
     title in each designated market area; and
       ``(2) with respect to each designated market area in which 
     such satellite carrier was not providing such local service 
     as of the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010--
       ``(A) the satellite carrier's satellite beams are designed, 
     and predicted by the satellite manufacturer's pre-launch test 
     data, to provide a good quality satellite signal to at least 
     90 percent of the households in each such designated market 
     area based on the most recent census data released by the 
     United States Census Bureau; and
       ``(B) there is no material evidence that there has been a 
     satellite or sub-system failure subsequent to the satellite's 
     launch that precludes the ability of the satellite carrier to 
     satisfy the requirements of subparagraph (A).
       ``(b) Information Required.--Any entity seeking the 
     certification provided for in subsection (a) shall submit to 
     the Commission the following information:
       ``(1) An affidavit stating that, to the best of the 
     affiant's knowledge, the satellite carrier provides local 
     service in all designated market areas pursuant to the 
     statutory license provided for in section 122 of title 17, 
     United States Code, and listing those designated market areas 
     in which local service was provided as of the date of 
     enactment of the Satellite Television Extension and Localism 
     Act of 2010.
       ``(2) For each designated market area not listed in 
     paragraph (1):
       ``(A) Identification of each such designated market area 
     and the location of its local receive facility.
       ``(B) Data showing the number of households, and maps 
     showing the geographic distribution thereof, in each such 
     designated market area based on the most recent census data 
     released by the United States Census Bureau.
       ``(C) Maps, with superimposed effective isotropically 
     radiated power predictions obtained in the satellite 
     manufacturer's pre-launch tests, showing that the contours of 
     the carrier's satellite beams as designed and the geographic 
     area that the carrier's satellite beams are designed to cover 
     are predicted to provide a good quality satellite signal to 
     at least 90 percent of the households in such designated 
     market area based on the most recent census data released by 
     the United States Census Bureau.
       ``(D) For any satellite relied upon for certification under 
     this section, an affidavit stating that, to the best of the 
     affiant's knowledge, there have been no satellite or sub-
     system failures subsequent to the satellite's launch that 
     would degrade the design performance to such a degree that a 
     satellite transponder used to provide local service to any 
     such designated market area is precluded from delivering a 
     good quality satellite signal to at least 90 percent of the 
     households in such designated market area based on the most 
     recent census data released by the United States Census 
     Bureau.
       ``(E) Any additional engineering, designated market area, 
     or other information the Commission considers necessary to 
     determine whether the Commission shall grant a certification 
     under this section.
       ``(c) Certification Issuance.--
       ``(1) Public comment.--The Commission shall provide 30 days 
     for public comment on a request for certification under this 
     section.
       ``(2) Deadline for decision.--The Commission shall grant or 
     deny a request for certification within 90 days after the 
     date on which such request is filed.
       ``(d) Subsequent Affirmation.--An entity granted qualified 
     carrier status pursuant to section 119(g) of title 17, United 
     States Code, shall file an affidavit with the Commission 30 
     months after such status was granted stating that, to the 
     best of the affiant's knowledge, it is in compliance with the 
     requirements for a qualified carrier.
       ``(e) Definitions.--For the purposes of this section:
       ``(1) Designated market area.--The term `designated market 
     area' has the meaning given such term in section 122(j)(2)(C) 
     of title 17, United States Code.
       ``(2) Good quality satellite signal.--
       ``(A) In general.--The term ``good quality satellite 
     signal'' means--
       ``(i) a satellite signal whose power level as designed 
     shall achieve reception and demodulation of the signal at an 
     availability level of at least 99.7 percent using--

       ``(I) models of satellite antennas normally used by the 
     satellite carrier's subscribers; and
       ``(II) the same calculation methodology used by the 
     satellite carrier to determine predicted signal availability 
     in the top 100 designated market areas; and

       ``(ii) taking into account whether a signal is in standard 
     definition format or high definition format, compression 
     methodology, modulation, error correction, power level, and 
     utilization of advances in technology that do not circumvent 
     the intent of this section to provide for non-discriminatory 
     treatment with respect to any comparable television broadcast 
     station signal, a video signal transmitted by a satellite 
     carrier such that--

       ``(I) the satellite carrier treats all television broadcast 
     stations' signals the same with respect to statistical 
     multiplexer prioritization; and
       ``(II) the number of video signals in the relevant 
     satellite transponder is not more than the then current 
     greatest number of video signals carried on any equivalent 
     transponder serving the top 100 designated market areas.

       ``(B) Determination.--For the purposes of subparagraph (A), 
     the top 100 designated market areas shall be as determined by 
     Nielsen Media Research and published in the Nielsen Station 
     Index Directory and Nielsen Station Index United States 
     Television Household Estimates or any successor publication 
     as of the date of a satellite carrier's application for 
     certification under this section.''.

     SEC. 207. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION 
                   DIGITAL SIGNALS OF NONCOMMERCIAL EDUCATIONAL 
                   TELEVISION STATIONS.

       (a) In General.--Section 338(a) is amended by adding at the 
     end the following new paragraph:
       ``(5) Nondiscrimination in carriage of high definition 
     signals of noncommercial educational television stations.--
       ``(A) Existing carriage of high definition signals.--If, 
     before the date of enactment of the Satellite Television 
     Extension and Localism Act of 2010, an eligible satellite 
     carrier is providing, under section 122 of title 17, United 
     States Code, any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of qualified noncommercial 
     educational television stations

[[Page 7654]]

     located within that local market in accordance with the 
     following schedule:
       ``(i) By December 31, 2010, in at least 50 percent of the 
     markets in which such satellite carrier provides such 
     secondary transmissions in high definition format.
       ``(ii) By December 31, 2011, in every market in which such 
     satellite carrier provides such secondary transmissions in 
     high definition format.
       ``(B) New initiation of service.--If, on or after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010, an eligible satellite carrier initiates 
     the provision, under section 122 of title 17, United States 
     Code, of any secondary transmissions in high definition 
     format to subscribers located within the local market of a 
     television broadcast station of a primary transmission made 
     by that station, then such satellite carrier shall carry the 
     signals in high-definition format of all qualified 
     noncommercial educational television stations located within 
     that local market.''.
       (b) Definitions.--Section 338(k) is amended--
       (1) by redesignating paragraphs (2) through (8) as 
     paragraphs (3) through (9), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Eligible satellite carrier.--The term `eligible 
     satellite carrier' means any satellite carrier that is not a 
     party to a carriage contract that--
       ``(A) governs carriage of at least 30 qualified 
     noncommercial educational television stations; and
       ``(B) is in force and effect within 150 days after the date 
     of enactment of the Satellite Television Extension and 
     Localism Act of 2010.'';
       (3) by redesignating paragraphs (6) through (9) (as 
     previously redesignated) as paragraphs (7) through (10), 
     respectively; and
       (4) by inserting after paragraph (5) (as so redesignated) 
     the following new paragraph:
       ``(6) Qualified noncommercial educational television 
     station.--The term `qualified noncommercial educational 
     television station' means any full-power television broadcast 
     station that--
       ``(A) under the rules and regulations of the Commission in 
     effect on March 29, 1990, is licensed by the Commission as a 
     noncommercial educational broadcast station and is owned and 
     operated by a public agency, nonprofit foundation, nonprofit 
     corporation, or nonprofit association; and
       ``(B) has as its licensee an entity that is eligible to 
     receive a community service grant, or any successor grant 
     thereto, from the Corporation for Public Broadcasting, or any 
     successor organization thereto, on the basis of the formula 
     set forth in section 396(k)(6)(B) of this title.''.

     SEC. 208. SAVINGS CLAUSE REGARDING DEFINITIONS.

       Nothing in this title or the amendments made by this title 
     shall be construed to affect--
       (1) the meaning of the terms ``program related'' and 
     ``primary video'' under the Communications Act of 1934; or
       (2) the meaning of the term ``multicast'' in any 
     regulations issued by the Federal Communications Commission.

     SEC. 209. STATE PUBLIC AFFAIRS BROADCASTS.

       Section 335(b) is amended--
       (1) by inserting ``STATE PUBLIC AFFAIRS,'' after 
     ``EDUCATIONAL,'' in the heading;
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Channel capacity required.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Commission shall require, as a condition of any 
     provision, initial authorization, or authorization renewal 
     for a provider of direct broadcast satellite service 
     providing video programming, that the provider of such 
     service reserve a portion of its channel capacity, equal to 
     not less than 4 percent nor more than 7 percent, exclusively 
     for noncommercial programming of an educational or 
     informational nature.
       ``(B) Requirement for qualified satellite provider.--The 
     Commission shall require, as a condition of any provision, 
     initial authorization, or authorization renewal for a 
     qualified satellite provider of direct broadcast satellite 
     service providing video programming, that such provider 
     reserve a portion of its channel capacity, equal to not less 
     than 3.5 percent nor more than 7 percent, exclusively for 
     noncommercial programming of an educational or informational 
     nature.'';
       (3) in paragraph (5), by striking ``For purposes of the 
     subsection--'' and inserting ``For purposes of this 
     subsection:''; and
       (4) by adding at the end of paragraph (5) the following:
       ``(C) The term `qualified satellite provider' means any 
     provider of direct broadcast satellite service that--
       ``(i) provides the retransmission of the State public 
     affairs networks of at least 15 different States;
       ``(ii) offers the programming of State public affairs 
     networks upon reasonable prices, terms, and conditions as 
     determined by the Commission under paragraph (4); and
       ``(iii) does not delete any noncommercial programming of an 
     educational or informational nature in connection with the 
     carriage of a State public affairs network.
       ``(D) The term `State public affairs network' means a non-
     commercial non-broadcast network or a noncommercial 
     educational television station--
       ``(i) whose programming consists of information about State 
     government deliberations and public policy events; and
       ``(ii) that is operated by--

       ``(I) a State government or subdivision thereof;
       ``(II) an organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986 that is exempt from 
     taxation under section 501(a) of such Code and that is 
     governed by an independent board of directors; or
       ``(III) a cable system.''.

                TITLE III--REPORTS AND SAVINGS PROVISION

     SEC. 301. DEFINITION.

       In this title, the term ``appropriate Congressional 
     committees'' means the Committees on the Judiciary and on 
     Commerce, Science, and Transportation of the Senate and the 
     Committees on the Judiciary and on Energy and Commerce of the 
     House of Representatives.

     SEC. 302. REPORT ON MARKET BASED ALTERNATIVES TO STATUTORY 
                   LICENSING.

       Not later than 18 months after the date of the enactment of 
     this Act, and after consultation with the Federal 
     Communications Commission, the Register of Copyrights shall 
     submit to the appropriate Congressional committees a report 
     containing--
       (1) proposed mechanisms, methods, and recommendations on 
     how to implement a phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code, by making such sections inapplicable 
     to the secondary transmission of a performance or display of 
     a work embodied in a primary transmission of a broadcast 
     station that is authorized to license the same secondary 
     transmission directly with respect to all of the performances 
     and displays embodied in such primary transmission;
       (2) any recommendations for alternative means to implement 
     a timely and effective phase-out of the statutory licensing 
     requirements set forth in sections 111, 119, and 122 of title 
     17, United States Code; and
       (3) any recommendations for legislative or administrative 
     actions as may be appropriate to achieve such a phase-out.

     SEC. 303. REPORT ON COMMUNICATIONS IMPLICATIONS OF STATUTORY 
                   LICENSING MODIFICATIONS.

       (a) Study.--The Comptroller General shall conduct a study 
     that analyzes and evaluates the changes to the carriage 
     requirements currently imposed on multichannel video 
     programming distributors under the Communications Act of 1934 
     (47 U.S.C. 151 et seq.) and the regulations promulgated by 
     the Federal Communications Commission that would be required 
     or beneficial to consumers, and such other matters as the 
     Comptroller General deems appropriate, if Congress 
     implemented a phase-out of the current statutory licensing 
     requirements set forth under sections 111, 119, and 122 of 
     title 17, United States Code. Among other things, the study 
     shall consider the impact such a phase-out and related 
     changes to carriage requirements would have on consumer 
     prices and access to programming.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Comptroller General shall report 
     to the appropriate Congressional committees the results of 
     the study, including any recommendations for legislative or 
     administrative actions.

     SEC. 304. REPORT ON IN-STATE BROADCAST PROGRAMMING.

       Not later than 18 months after the date of the enactment of 
     this Act, the Federal Communications Commission shall submit 
     to the appropriate Congressional committees a report 
     containing an analysis of--
       (1) the number of households in a State that receive the 
     signals of local broadcast stations assigned to a community 
     of license that is located in a different State;
       (2) the extent to which consumers in each local market have 
     access to in-state broadcast programming over the air or from 
     a multichannel video programming distributor; and
       (3) whether there are alternatives to the use of designated 
     market areas, as defined in section 122 of title 17, United 
     States Code, to define local markets that would provide more 
     consumers with in-state broadcast programming.

     SEC. 305. LOCAL NETWORK CHANNEL BROADCAST REPORTS.

       (a) Requirement.--
       (1) In general.--On the 270th day after the date of the 
     enactment of this Act, and on each succeeding anniversary of 
     such 270th day, each satellite carrier shall submit an annual 
     report to the Federal Communications Commission setting 
     forth--
       (A) each local market in which it--
       (i) retransmits signals of 1 or more television broadcast 
     stations with a community of license in that market;
       (ii) has commenced providing such signals in the preceding 
     1-year period; and
       (iii) has ceased to provide such signals in the preceding 
     1-year period; and
       (B) detailed information regarding the use and potential 
     use of satellite capacity for the retransmission of local 
     signals in each local market.

[[Page 7655]]

       (2) Termination.--The requirement under paragraph (1) shall 
     cease after each satellite carrier has submitted 5 reports 
     under such paragraph.
       (b) FCC Study; Report.--
       (1) Study.--If no satellite carrier files a request for a 
     certification under section 342 of the Communications Act of 
     1934 (as added by section 206 of this title) within 270 days 
     after the date of the enactment of this Act, the Federal 
     Communications Commission shall initiate a study of--
       (A) incentives that would induce a satellite carrier to 
     provide the signals of 1 or more television broadcast 
     stations licensed to provide signals in local markets in 
     which the satellite carrier does not provide such signals; 
     and
       (B) the economic and satellite capacity conditions 
     affecting delivery of local signals by satellite carriers to 
     these markets.
       (2) Report.--Within 1 year after the date of the initiation 
     of the study under paragraph (1), the Federal Communications 
     Commission shall submit a report to the appropriate 
     Congressional committees containing its findings, 
     conclusions, and recommendations.
       (c) Definitions.--In this section--
       (1) the terms ``local market'' and ``satellite carrier'' 
     have the meaning given such terms in section 339(d) of the 
     Communications Act of 1934 (47 U.S.C. 339(d)); and
       (2) the term ``television broadcast station'' has the 
     meaning given such term in section 325(b)(7) of such Act (47 
     U.S.C. 325(b)(7)).

     SEC. 306. SAVINGS PROVISION REGARDING USE OF NEGOTIATED 
                   LICENSES.

       (a) In General.--Nothing in this Act, title 17, United 
     States Code, the Communications Act of 1934, regulations 
     promulgated by the Register of Copyrights under this title or 
     title 17, United States Code, or regulations promulgated by 
     the Federal Communications Commission under this Act or the 
     Communications Act of 1934 shall be construed to prevent a 
     multichannel video programming distributor from 
     retransmitting a performance or display of a work pursuant to 
     an authorization granted by the copyright owner or, if within 
     the scope of its authorization, its licensee.
       (b) Limitation.--Nothing in subsection (a) shall be 
     construed to affect any obligation of a multichannel video 
     programming distributor under section 325(b) of the 
     Communications Act of 1934 to obtain the authority of a 
     television broadcast station before retransmitting that 
     station's signal.

     SEC. 307. EFFECTIVE DATE; NONINFRINGEMENT OF COPYRIGHT.

       (a) Effective Date.--Unless specifically provided 
     otherwise, this Act, and the amendments made by this Act, 
     shall take effect on February 27, 2010, and with the 
     exception of the reference in subsection (b), all references 
     to the date of enactment of this Act shall be deemed to refer 
     to February 27, 2010, unless otherwise specified.
       (b) Noninfringement of Copyright.--The secondary 
     transmission of a performance or display of a work embodied 
     in a primary transmission is not an infringement of copyright 
     if it was made by a satellite carrier on or after February 
     27, 2010, and prior to enactment of this Act, and was in 
     compliance with the law as in existence on February 27, 2010.

                         TITLE IV--SEVERABILITY

     SEC. 401. SEVERABILITY.

       If any provision of this Act, an amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this Act, the amendments made by this Act, and 
     the application of such provision or amendment to any person 
     or circumstance shall not be affected thereby.

              TITLE V--DETERMINATION OF BUDGETARY EFFECTS

     SEC. 501. DETERMINATION OF BUDGETARY EFFECTS.

       (a) In General.--The budgetary effects of this Act, for the 
     purpose of complying with the Statutory Pay-As-You-Go-Act of 
     2010, shall be determined by reference to the latest 
     statement titled ``Budgetary Effects of PAYGO Legislation'' 
     for this Act, submitted for printing in the Congressional 
     Record by the Chairman of the Senate Budget Committee, 
     provided that such statement has been submitted prior to the 
     vote on passage.

                          ____________________