[House Report 111-349]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-349

======================================================================



 
           SATELLITE HOME VIEWER REAUTHORIZATION ACT OF 2009

                                _______
                                

December 2, 2009.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Waxman, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2994]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2994) to reauthorize the Satellite Home Viewer 
Extension and Reauthorization Act of 2004, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     8
Background and Need for Legislation..............................     8
Legislative History..............................................    10
Committee Consideration..........................................    11
Committee Votes..................................................    11
Statement of Committee Oversight Findings and Recommendations....    13
New Budget Authority, Entitlement Authority, and Tax Expenditures    13
Statement of General Performance Goals and Objectives............    13
Constitutional Authority Statement...............................    13
Earmarks and Tax and Tariff Benefits.............................    13
Federal Advisory Committee Statement.............................    13
Applicability of Law to Legislative Branch.......................    13
Federal Mandates Statement.......................................    13
Committee Cost Estimate..........................................    14
Congressional Budget Office Cost Estimate........................    14
Section-by-Section Analysis of the Legislation...................    15
Explanation of Amendment.........................................    22
Changes in Existing Law Made by the Bill, as Reported............    23
Minority Views...................................................    42

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Satellite Home Viewer Reauthorization 
Act of 2009''.

SEC. 2. EXTENSION OF AUTHORITY.

  Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) 
is amended--
          (1) in paragraph (2)(C), by striking ``December 31, 2009'' 
        and inserting ``December 31, 2014''; and
          (2) in paragraph (3)(C), by striking ``January 1, 2010'' each 
        place it appears in clauses (ii) and (iii) and inserting 
        ``January 1, 2015''.

SEC. 3. SIGNIFICANTLY VIEWED STATIONS.

  (a) In General.--Paragraphs (1) and (2) of section 340(b) of such Act 
(47 U.S.C. 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 180 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).

SEC. 4. CONFORMING AMENDMENTS.

  (a) Section 338.--Section 338 of the Communications Act of 1934 (47 
U.S.C. 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 of such Act (47 U.S.C. 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 clause 
                        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 Home Viewer Reauthorization 
                        Act of 2009 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.'';
                          (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 
                                inserting ``the Satellite Home Viewer 
                                Reauthorization Act of 2009''; and
                                  (III) by amending clause (ii) to read 
                                as follows:
                          ``(ii) either--
                                  ``(I) 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
                                  ``(II) receives from the satellite 
                                carrier the signal of a network station 
                                affiliated with the same network that 
                                is broadcast by a local station in the 
                                market where the subscriber resides, 
                                but is not the local station's primary 
                                video.'';
                          (v) in subparagraph (D)--
                                  (I) by striking clauses (i), (iii) 
                                through (v), (vii) through (ix), and 
                                (xi);
                                  (II) by redesignating clause (vi) as 
                                clause (i) and transfering such clause 
                                to appear before clause (ii);
                                  (III) by amending such clause (i) (as 
                                so redesignated) to read as follows:
                          ``(i) Signal testing.--A subscriber shall be 
                        eligible to receive a distant signal of a 
                        distant network station affiliated with the 
                        same network under this section if such 
                        subscriber 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) of 
                        title 47, Code of Federal Regulations.'';
                                  (IV) 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 Home 
                                        Viewer Reauthorization Act of 
                                        2009''; and
                                          (dd) by striking ``, whether 
                                        or not such subscriber elects 
                                        to subscribe to local digital 
                                        signals'';
                                  (V) 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
                                  (VI) 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 180 days after the 
                date of the enactment of the Satellite Home Viewer 
                Reauthorization Act of 2009, the Commission shall take 
                all actions necessary to 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 a conventional, 
                stationary, outdoor rooftop receiving antenna, to 
                receive signals in accordance with the signal intensity 
                standard in section 73.622(e)(1) of title 47, Code of 
                Federal Regulations, 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 180 days after the date of 
                enactment of the Satellite Home Viewer Reauthorization 
                Act of 2009.
                  ``(C) Study of types of antennas available to receive 
                digital signals.--
                          ``(i) Study required.--Not later than 1 year 
                        after the date of enactment of the Satellite 
                        Home Viewer Reauthorization Act of 2009, the 
                        Commission shall complete a study regarding 
                        whether, for purposes of identifying if a 
                        household is unserved by an adequate digital 
                        signal under section 119(d)(10) of title 17, 
                        United States Code, the digital signal strength 
                        standard in section 73.622(e)(1) of title 47, 
                        Code of Federal Regulations, or the testing 
                        procedures in section 73.686 of title 47, Code 
                        of Federal Regulations, such statutes or 
                        regulations should be revised to take into 
                        account the types of antennas that are 
                        available to and used by consumers.
                          ``(ii) Study consideration.--In conducting 
                        the study under clause (i), the Commission 
                        shall consider whether to account for the fact 
                        that an antenna can be mounted on a roof or 
                        placed in a home and can be fixed or capable of 
                        rotating.
                          ``(iii) Report.--Not later than 1 year after 
                        the date of enactment of the Satellite Home 
                        Viewer Reauthorization Act of 2009, the 
                        Commission shall submit to the Committee on 
                        Energy and Commerce of the House of 
                        Representatives and the Committee on Commerce, 
                        Science, and Transportation of the Senate a 
                        report containing--
                                  ``(I) the results of the study 
                                conducted under clause (i); and
                                  ``(II) recommendations, if any, 
                                regarding changes to be made to Federal 
                                statutes or regulations.'';
                  (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 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 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) of such Act (47 U.S.C. 340(i)) is 
amended by striking paragraph (4).

SEC. 5. APPLICATION PENDING COMPLETION OF RULEMAKINGS.

  (a) In General.--Between the date of enactment of this Act and the 
adoption of rules by the Federal Communications Commission pursuant to 
the amendments to the Communications Act of 1934 made by sections 3 and 
4 of this Act, 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 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 such Act, the 
Federal Communications Commission shall follow its rules and 
regulations for determining such subscriber's eligibility as in effect 
on the day before the date of enactment of this Act 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 Act:
          (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. 6. PROCESS FOR ISSUING QUALIFIED CARRIER CERTIFICATION.

  Part I of title III of the Communications Act of 1934 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 Home Viewer 
        Reauthorization Act of 2009--
                  ``(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 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 Home Viewer Reauthorization Act of 2009.
          ``(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 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 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 models of 
                        satellite antennas normally used by the 
                        satellite carrier's subscribers and the same 
                        calculation methodology used by the satellite 
                        carrier to determine predicted signal 
                        availability in the top 100 designated market 
                        areas; and
                          ``(ii) a video signal transmitted by 
                        satellite carrier such that, 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 does not circumvent 
                        the intent of this section to provide for non-
                        discriminatory treatment with respect to any 
                        comparable television broadcast station 
                        signal--
                                  ``(I) the satellite carrier treats 
                                all television broadcast station's 
                                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. 7. SAVINGS CLAUSE REGARDING DEFINITIONS.

  Nothing in this Act or the amendments made by this Act shall be 
construed to affect the definitions of ``program related'' and 
``primary video'' in the Communications Act of 1934 or in any 
regulations promulgated pursuant to such Act by the Federal 
Communications Commission.

SEC. 8. SAVINGS CLAUSE REGARDING USE OF NON-COMPULSORY LICENSES; 
                    REPORT.

  (a) In General.--Nothing in this Act, the Communications Act of 1934, 
or regulations promulgated by the Federal Communications Commission 
under this Act or the Communications Act of 1934 shall limit the 
ability of a satellite carrier to retransmit 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) Report.--Not later than 1 year after the date of enactment of 
this Act, the Federal Communications Commission shall submit to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate a 
report containing an analysis of--
          (1) the number of households in a State that receive local 
        broadcast stations from a station of license that is located in 
        a different State;
          (2) the extent to which consumers have access to in-state 
        broadcast programming; 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. 9. NONDISCRIMINATION IN CARRIAGE OF HIGH DEFINITION DIGITAL 
                    SIGNALS OF NONCOMMERCIAL EDUCATIONAL TELEVISION 
                    STATIONS.

  (a) In General.--Section 338(a) of the Communications Act of 1934 (47 
U.S.C. 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.--
                Each eligible satellite carrier providing, under 
                section 122 of title 17, United States Code, any 
                secondary transmissions in high definition to 
                subscribers located within the local market of a 
                television broadcast station of a primary transmission 
                made by that station prior to the date of enactment of 
                this paragraph shall carry the high-definition signals 
                of qualified noncommercial educational television 
                stations 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.
                          ``(ii) By December 31, 2011, in every market 
                        in which such satellite carrier provides such 
                        secondary transmissions in high definition.
                  ``(B) New initiation of service.--Each eligible 
                satellite carrier that initiates the provision, under 
                section 122 of title 17, United States Code, of any 
                secondary transmissions in high definition to 
                subscribers located within the local market of a 
                television broadcast station of a primary transmission 
                made by that station after the date of enactment of 
                this paragraph shall carry the high-definition signals 
                of all qualified noncommercial educational television 
                stations located within that local market.''.
  (b) Definitions.--Section 338(k) of such Act (47 U.S.C. 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 with a   qualified noncommercial 
        educational television station, or its representative, that is 
        in force and effect as of the date of enactment of this 
        paragraph.'';
          (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' has the meaning given such term in section 
        615(l)(1) of this Act.''.

                          Purpose and Summary

    The purpose of H.R. 2994, the ``Satellite Home Viewer 
Reauthorization Act of 2009'' (SHVRA), is to reauthorize and 
amend certain provisions of the Communications Act of 1934 that 
govern satellite retransmission of television broadcast 
signals. The bill amends the Communications Act to account for 
the completion of the digital television transition; 
reauthorizes provisions of the Communications Act set to expire 
at the end of 2009; improves regulatory parity between cable 
and satellite; creates incentives to expand local-into-local 
service to every television market in the United States; and 
directs the Federal Communications Commission (FCC or 
Commission) to study two issues relating to the ability of 
consumers to receive local television signals.

                  Background and Need for Legislation

    Millions of consumers across the United States subscribe to 
direct broadcast satellite (DBS) service. The FCC estimates 
that in 2006 approximately 87% of households in the United 
States that watched television subscribed to a pay-television 
service from a multichannel video programming distributor 
(MVPD). MVPDs include DBS carriers, cable companies, and 
traditional phone companies offering video services. According 
to the FCC, consumers are selecting DBS carriers for pay 
television service at an increasing rate, and as of mid-2006 
(the most recent data available) DBS carriers had garnered 
nearly 30% of the MVPD market.
    On June 12, 2009, the nation's full power television 
stations ceased analog broadcasts and began broadcasting only 
digital signals. This shift necessitates a series of amendments 
to the Communications Act to both remove references to analog 
broadcast television signals and to ensure that the Commission 
adjusts its rules related to the retransmission of digital 
broadcast signals in a timely manner.
    From time to time Congress revisits the rules related to 
the retransmission of television broadcast stations by 
satellite carriers to ensure that consumers continue to benefit 
from these services. Since 1988, most of these changes have 
occurred during reauthorization of the Satellite Home Viewer 
Act.
    The Satellite Home Viewer Act (1988).\1\ In 1988, Congress 
enacted the Satellite Home Viewer Act (SHVA), which enabled 
satellite carriers to use a compulsory copyright license to 
provide some out-of-market, or distant, network programming to 
their subscribers. Specifically, Congress authorized use of the 
compulsory license to provide distant network programming to 
so-called ``unserved'' households, or households that could not 
receive the signal of a station affiliated with a particular 
network over the air. This provision was intended to ensure 
that all households had some ability to receive network 
programming.
---------------------------------------------------------------------------
    \1\P.L. 100-667
---------------------------------------------------------------------------
    SHVA defined a household as ``unserved'' if it could not 
``receive . . . an over-the-air signal of grade B intensity'' 
from the local affiliate of the same network. The accuracy of 
the Grade B standard and the attendant predictive model 
prescribed by the Commission have been the subject of debate as 
local terrain or other conditions may affect a household's 
ability to receive the signal.
    To facilitate the ability of satellite carriers to deliver 
signals to unserved households, SHVA also created provisions 
exempting these carriers from having to negotiate with distant 
broadcast stations to retransmit the signals of out-of-market 
stations to unserved consumers.\2\ The retransmission-consent 
exemption created by SHVA expires every five years and will 
terminate on December 31, 2009, unless it is extended.\3\
---------------------------------------------------------------------------
    \2\See 47 U.S.C. 325(b).
    \3\See 47 U.S.C. 325(b)(2)(C).
---------------------------------------------------------------------------
    The importation of distant signals has, at times, been 
controversial. In 1998, several broadcasters and content owners 
sued EchoStar Communications for copyright infringement.\4\ 
They alleged that the satellite carrier was illegally providing 
distant network programming to numerous households that did not 
meet the statutory definition of ``unserved.'' In 2006, the 
United States Court of Appeals for the Eleventh Circuit 
determined that EchoStar had violated the distant signal 
compulsory copyright license codified in section 119 of title 
17 and issued a nationwide permanent injunction preventing the 
satellite carrier from using the distant signal compulsory 
copyright license to retransmit any out-of-market network 
programming to any of its subscribers.
---------------------------------------------------------------------------
    \4\EchoStar Communications is now a separately traded company. DISH 
Network LLC (DISH) is the successor company and the entity that 
provides satellite television service to consumers.
---------------------------------------------------------------------------
    The Satellite Home Viewer Act (1994).\5\ Congress passed 
another Satellite Home Viewer Act in 1994. The 1994 SHVA 
focused on royalty rates paid for use of the compulsory 
license, extended the license for another five years, and 
modified the signal strength testing procedures used to 
determine whether a consumer is eligible to receive the 
retransmission of a distant network signal.
---------------------------------------------------------------------------
    \5\P.L. 103-369.
---------------------------------------------------------------------------
    The Satellite Home Viewer Improvement Act (1999).\6\ In 
1999, Congress enacted the ``Satellite Home Viewer Improvement 
Act of 1999'' (SHVIA). In SHVIA, Congress expanded on the 
original Satellite Home Viewer Act by amending the 
Communications Act to authorize satellite carriers to also use 
a compulsory copyright license to provide consumers with local 
broadcast signals, often referred to as ``local-into-local'' 
service. In order to deliver a local broadcast signal to a 
household using the compulsory license, however, a satellite 
carrier must carry all of the local broadcast stations in a 
market that requests carriage. This requirement is sometimes 
referred to as the ``carry one, carry all'' rule.\7\
---------------------------------------------------------------------------
    \6\P.L. 106-113.
    \7\See 47 U.S.C. 338.
---------------------------------------------------------------------------
    As of October 2009, DirecTV, the largest DBS carrier, 
provides local service in 150 of the 210 local markets or 
designated market areas (DMAs).\8\ The second largest DBS 
carrier, DISH Network, provides local service in 182 of the 210 
DMAs.\9\
---------------------------------------------------------------------------
    \8\DirecTV to Deliver Local Programming in Bluefield-Beckley, W.VA 
(Sept. 24, 2009) available online at http://investor.directv.com/
releasedetail.cfm?ReleaseID=411500
    \9\Dish Network Adds 2 More HD Markets, Multichannel News (Aug. 19, 
2009).
---------------------------------------------------------------------------
    Congress also inserted new sections 338 and 339 into the 
Communications Act. Section 338 governs satellite 
retransmission of local broadcast signals and section 339 
governs satellite retransmission of distant network signals. 
SHVIA also imposed an obligation on broadcast stations not to 
enter into exclusive contracts for carriage and to negotiate 
retransmission consent agreements with MVPDs in good faith 
until January 1, 2005.
    The Satellite Home Viewer Extension and Reauthorization Act 
(2004).\10\ In 2004, Congress again reauthorized and amended 
SHVA in the Satellite Home Viewer Extension and Reauthorization 
Act of 2004 (SHVERA). SHVERA extended once more the exemption 
in section 325 for satellite carriers from needing to obtain 
retransmission consent to offer distant network signals to 
unserved households. It also renewed for an additional five 
years the prohibition on broadcast stations entering into 
exclusive carriage deals and the requirement that broadcast 
stations bargain in good faith in retransmission consent 
negotiations. SHVERA also made the good faith negotiation 
provision reciprocal, so that it applied to both the MVPD and 
broadcast stations when negotiating retransmission consent 
agreements.
---------------------------------------------------------------------------
    \10\P.L. 108-447, passed as Division J of Title IV of the FY2005 
Consolidated Appropriations Act.
---------------------------------------------------------------------------
    In SHVERA, Congress also created a new section 340 of the 
Communications Act to permit a satellite carrier, such as a 
cable operator, to retransmit a distant network signal to 
counties in a local market where the Commission has deemed that 
signal to be ``significantly viewed.''

                          Legislative History

    The Subcommittee on Communications, Technology, and the 
Internet held an oversight hearing on issues related to the 
reauthorization of provisions of the Communications Act that 
govern the retransmission of television broadcast signals by 
satellite carriers on February 24, 2009. The Subcommittee 
received testimony from the following witnesses: Bob Gabrielli, 
Senior Vice President, Broadcasting Operations and 
Distribution, DIRECTV, Inc.; Charles W. Ergen, Chairman, 
President, and Chief Executive Officer of DISH Network 
Corporation; Martin D. Franks, Executive Vice President, 
Policy, Planning and Government Relations, CBS Corporation; 
Willard Rowland, President and CEO, Colorado Public Television, 
on behalf of the Association of Public Television Stations; K. 
James Yager, CEO, Barrington Broadcasting Group, LLC, on behalf 
of the National Association of Broadcasters; Gigi B. Sohn, 
President and Co-Founder, Public Knowledge, on behalf of Public 
Knowledge, Consumers Union, and Free Press; and W. Kenneth 
Ferree, President, Progress & Freedom Foundation.
    The Subcommittee held a legislative hearing on a discussion 
draft of the Satellite Home Viewer Reauthorization Act of 2009 
(SHVRA) on June 16, 2009. The Subcommittee received testimony 
from the following witnesses: Preston Padden, Executive Vice 
President, Worldwide Government Relations, The Walt Disney 
Company; Mike Mountford, Chief Executive Officer, NPS LLC; Paul 
Karpowicz, President, Meredith Corporation, on behalf of the 
National Association of Broadcasters; Derek Chang, Executive 
Vice President, Content Strategy and Development, DIRECTV, 
Inc.; and R. Stanton Dodge, Executive Vice President, General 
Counsel and Secretary, DISH Network.
    H.R. 2994, a bill to reauthorize the Satellite Home Viewer 
Extension and Reauthorization Act of 2004 (SHVERA), and for 
other purposes, was introduced on June 23, 2009, and was 
referred to the Committee on Energy and Commerce. The bill was 
subsequently referred to the Subcommittee on Communications, 
Technology, and the Internet on June 24, 2009.

                        Committee Consideration

    The Subcommittee on Communications, Technology, and the 
Internet met in open markup session on June 25, 2009, to 
consider H.R. 2994. An amendment in the nature of a substitute, 
offered as a manager's amendment by Subcommittee Chairman 
Boucher, was agreed to by a voice vote. The Subcommittee 
forwarded H.R. 2994, amended, favorably to the full Committee 
by a voice vote.
    The full Committee met in open markup session on October 
15, 2009, to consider H.R. 2994, as forwarded by the 
Subcommittee on Communications, Technology, and the Internet on 
June 25, 2009. An amendment in the nature of a substitute was 
offered by Mr. Boucher and Mr. Stearns. Ms. Eshoo offered an 
amendment to the AINS that was agreed to by a roll call vote of 
31 yeas to 20 nays. Subsequently, the Boucher amendment in the 
nature of a substitute, as amended by the Eshoo amendment, was 
adopted by a voice vote. H.R. 2994 was ordered favorably 
reported, amended, to the House by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Waxman to order H.R. 2994 favorably reported to 
the House, amended, was agreed to by a voice vote. The 
following is a record of the recorded vote on the amendment 
offered by Ms. Eshoo, including the names of those Members 
voting for and against:


     Statement of Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that H.R. 2994 
would result in no new budget authority, entitlement authority, 
or tax expenditures or revenues.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 2994. Article I, section 8, clauses 3 and 18 
of the Constitution of the United States grants the Congress 
the power to enact this law.

                  Earmarks and Tax and Tariff Benefits

    H.R. 2994 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(e), 9(f), or 9(g) of rule XXI.

                  Federal Advisory Committee Statement

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., section 5(b).

              Application of Law to the Legislative Branch

    The Committee finds that H.R. 2994 does not relate to the 
terms and conditions of employment or access to public services 
or accommodations within the meaning of section 102(b)(3) of 
Public Law 104-1.

                       Federal Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) requires a statement whether 
the provisions of the reported bill includes unfunded mandates. 
In compliance with this requirement the Committee adopts as its 
own the estimates of federal mandates prepared by the Director 
of the Congressional Budget Office.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
cost estimate of H.R. 2994 prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act.

               Congressional Budget Office Cost Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives and section 402 of the Congressional 
Budget Office Act of 1974, the Committee has received the 
following cost estimate for H.R. 2994 from the Director of the 
Congressional Budget Office:

                                                  November 5, 2009.
Hon. Henry A. Waxman,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2994, the 
Satellite Home Viewer Reauthorization Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 2994--Satellite Home Viewer Reauthorization Act of 2009

    Under current law, satellite carriers pay royalty fees for 
the right to transmit certain television signals to their 
subscribers without obtaining specific permission from 
copyright holders. H.R. 2994 would extend provisions of current 
law that allow satellite carriers to transmit copyrighted 
material without specific permission but would not extend the 
requirement to pay royalties on those copyrighted 
transmissions. The requirement to pay royalties will expire on 
December 31, 2009. The bill also would require the Federal 
Communications Commission (FCC) to conduct several studies 
related to the transmission of satellite broadcasts.
    CBO estimates that implementing H.R. 2994 would not 
significantly affect spending subject to appropriation; 
enacting the bill would not affect direct spending or revenues.
    H.R. 2994 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would not affect 
the budgets of state, local, or tribal governments.
    H.R. 2994 would impose private-sector mandates, as defined 
in UMRA, on satellite carriers and television broadcasters. 
Based on information from industry sources, CBO estimates that 
the aggregate cost of complying with all of the mandates in the 
bill would fall below the annual threshold for private-sector 
mandates ($139 million in 2009, adjusted annually for 
inflation).
    The bill would require that, in each market for which a 
satellite carrier chooses to provide local channels in high 
definition, the carrier must also provide high definition 
signals of any local noncommercial, educational stations by 
December 31, 2011. Assuming agreements with such stations could 
be reached, CBO estimates that the cost for satellite carriers 
to comply with this mandate would probably be small relative to 
the annual threshold.
    The bill also would extend an existing mandate on 
broadcasters that prohibits them from entering certain 
exclusive contracts for the rights to broadcast their programs 
and requires them to negotiate in good faith. The cost of the 
mandate to broadcasters would be the net income forgone as a 
result of the requirement to negotiate contracts with multiple 
carriers. Based on information from industry sources, CBO 
expects that few exclusive contracts would be reached. 
Therefore, CBO estimates that the cost of the mandate would be 
small. Additionally, the bill would impose a mandate on network 
broadcasters by extending a provision that allows satellite 
carriers to retransmit distant network signals to unserved 
households without obtaining consent or providing compensation 
to broadcasters. The cost of the mandate would be the forgone 
net income broadcasters could obtain by charging satellite 
carriers for such transmissions. Based upon information from 
industry sources, CBO estimates the cost would be minimal.
    The CBO staff contacts for this estimate are Susan Willie 
(for federal costs) and Sam Wice (for the private-sector 
impact). The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 of the bill establishes the short title as the 
``Satellite Home Viewer Reauthorization Act of 2009'' (SHVRA).

Section 2. Extension of authority

    Section 2 of the bill amends section 325(b) of the 
Communications Act of 1934 to extend for five years the 
statutory provision that permits a satellite carrier to 
retransmit, without first having to obtain a broadcaster's 
consent, the signal of a distant network station to certain 
unserved households. Section 2 also extends for five years the 
provision in the same section that requires television 
broadcast stations and MVPDs to negotiate retransmission 
consent agreements in good faith and prohibits exclusive 
carriage deals.

Section 3. Significantly viewed stations

    Section 3(a) of the bill amends section 340 of the 
Communications Act regarding the carriage by a satellite 
carrier of ``significantly viewed'' signals. Congress first 
created section 340 in SHVERA. Section 340 allows a satellite 
carrier to offer a subscriber the signal from a station in a 
nearby market if the signal is viewed over the air by a 
``significant'' number of consumers within the subscriber's 
market. This ``significantly viewed'' provision was adopted in 
SHVERA to create parity with cable operators, who already had 
such authority. Because some stations were only just beginning 
their transition to digital, and because in-market stations not 
yet broadcasting in high-definition format were concerned about 
competition with out of market stations that were broadcasting 
in high definition format, section 340 required satellite 
carriers to dedicate ``equivalent bandwidth'' to local signals 
and significantly viewed signals.
    The Commission's implementation of section 340, including 
its interpretation of the ``equivalent bandwidth'' requirement, 
has generally served to discourage satellite carriers from 
using section 340 to provide significantly viewed signals to 
qualified households.
    Under the Commission's interpretation of this section, a 
satellite carrier must reduce a significantly viewed signal in 
high-definition format to standard-definition format any time 
the local signal was not broadcast in high-definition format. 
The Commission required this even if the satellite carriers 
were providing the local signal in high definition format 
whenever it was broadcast in such format. Because it is 
impractical for satellite carriers to match the format of the 
local and significantly viewed signals moment-by-moment, 
satellite carriers rarely provide the significantly viewed 
signals.
    To address this, section 3(a) of the bill amends section 
340(b) to clarify that a satellite carrier may provide a 
significantly viewed signal in high-definition format even when 
the local signal affiliated with the same network is not 
broadcast in high-definition format as long as it provides the 
local signal affiliated with the same network in high-
definition format when it is available in that format.
    Section 3(b) of the bill requires the Commission to take 
all actions necessary to promulgate a rule to implement the 
amendments made by section 3(a) within 180 days of the date of 
enactment of the bill.

Section 4. Conforming amendments

    Section 4 of the bill makes a series of amendments to 
sections 338 and 339 of the Communications Act to account for 
the transition from analog to digital-only television 
broadcasts, including addressing the predictive model the 
Commission will use to determine whether a satellite carrier 
may retransmit distant digital network signals to certain 
households and carrying forward the grandfathering of the 
eligibility of certain satellite subscribers to receive distant 
network signals.
    Section 4 of the bill, among other things, adds to section 
339 of the Communications Act provisions regarding when a 
satellite carrier may retransmit distant network signals to 
households that can receive network programming over-the-air 
because a local station is providing that network programming 
on a multicast stream. Digital broadcast technology allows 
broadcasters to use their 6 MHz channel to transmit more than 
one programming stream, a practice known as multicasting. In 
some markets that lack a full complement of local network 
affiliates (sometimes referred to as ``short markets''), the 
network that is not present in the market may contract with the 
local affiliate of another network to multicast the missing 
network's programming. Section 4 inserts new language to ensure 
that households to which a satellite carrier is lawfully 
retransmitting distant network programming do not lose access 
to that programming when a satellite carrier begins 
retransmitting the signal of a multicast station affiliated 
with the same network in a local market.
    Section 4(a) of the bill adapts for the digital television 
transition the requirement from SHVERA that a satellite carrier 
offering local-into-local service in a market provide to a 
subscriber any analog signals of the local broadcasters in that 
market on a single reception antenna device, or dish, as well 
as provide any digital signals of the local broadcasters on a 
single dish. This requirement meant that households in some 
markets that wanted to receive local programming might be 
required to obtain two dishes in order to receive a full 
complement of local stations. In practice, consumers were less 
likely to view some local stations because they might not want 
to go through the process of obtaining and installing a second 
dish or might have concerns about how a second dish might look 
on or near their home.
    Section 4(a)(2) of the bill amends section 338(g) of the 
Communications Act to clarify that after the digital television 
transition, a satellite carrier must retransmit local broadcast 
signals in such a manner that a subscriber may receive all 
local signals using one reception antenna.
    Section 4(a)(2) of the bill also provides that a satellite 
carrier offering local broadcast signals in high definition 
format must retransmit those signals in such a manner that a 
subscriber may receive all of them using a single reception 
antenna; however, the reception antenna used to receive the 
local signals in high-definition format may be different from 
the reception antenna used to receive the signals in non-high 
definition, or standard definition, format, provided that all 
local stations carried pursuant to section 338 are available on 
one reception antenna; either the one used to receive signals 
in standard definition format or the one used to receive 
signals in high definition format.
    Section 4(b) of the bill updates section 339 of the 
Communications Act to reflect the end of the transition of 
full-power television broadcast stations to digital 
broadcasting. Section 4(b) also updates so-called 
``grandfathering'' provisions that ensure that certain 
consumers that are lawfully receiving distant signals do not 
automatically lose access to those signals because of a change 
in law or a change in broadcast signal availability. The 
Committee has routinely established such provisions in the past 
to prevent unnecessary disruptions to consumers.
    Section 4(b)(1)(A) of the bill updates the requirement that 
a satellite carrier may retransmit no more than two distant 
signals affiliated with the same television network to a 
household that is unserved with respect to that television 
network.
    In SHVIA, Congress allowed some subscribers who were 
receiving a distant signal of a network affiliate to continue 
to do so even though the subscribers were deemed as a matter of 
law to be ``served'' over the air from an affiliate of the same 
network. Some of these subscribers--those residing in the so-
called ``Grade B doughnut''\11\--could continue to receive that 
distant signal until they chose to receive a local signal 
affiliated with the same network from the satellite carrier. 
The grandfathered status of these subscribers is set to expire 
on December 31, 2009, and section 4(b)(1)(B) of the bill allows 
them to continue to receive a distant signal until they elect 
to receive the corresponding local signal.
---------------------------------------------------------------------------
    \11\Satellite carriers were retransmitting distant network signals 
to households in the Grade B doughnut even though they were predicted 
to receive an analog signal of Grade B intensity over the air.
---------------------------------------------------------------------------
    Other subscribers (non-Grade B doughnut subscribers) 
already lawfully receiving a distant network signal from a 
satellite carrier at the time SHVRA is enacted may continue to 
receive that signal whether or not they subsequently decide 
also to receive from the satellite carrier a signal of that 
network from the local affiliate.
    Section 4(b)(1)(B)(iv) of the bill provides that a 
satellite carrier may not provide a distant signal to a 
household after the satellite carrier has begun to offer the 
corresponding local signal of a television network in a local 
market, including where the station affiliated with that 
network is provided as a multicast stream.
    Section 4(b)(1)(B)(v) of the bill makes a series of changes 
to account for the conclusion of the transition of full-power 
television broadcast stations to digital. Amended section 
339(a)(2)(D)(i) provides that a subscriber is eligible to 
receive the distant signal of a television network if the 
subscriber is determined, based on a test conducted in 
accordance with the Commission's regulations, not to be able to 
receive over the air a signal of the same network exceeding the 
signal intensity standard in the Commission's rules.
    To account for the digital transition, amended section 
339(a)(2)(D)(iii) updates the requirement that a satellite 
carrier may not use distant signals to ``time-shift'' 
programming. A satellite carrier may only retransmit the 
distant signal of a television network to a subscriber in a 
local market if the prime time network programming associated 
with that distant signal is generally broadcast simultaneously 
with, or later than, the prime time network programming of the 
affiliate of the same network in the local market.
    Section 4(b)(2) of the bill directs the Commission to 
complete all actions necessary to prescribe by rule a point-to-
point predictive model to determine presumptively whether a 
household is eligible to receive a distant network signal, 
within 180 days of the date of enactment of SHVRA. The new 
digital predictive model will replace the current predictive 
model used by the Commission, which is based on a household's 
ability to receive an analog over-the-air signal of Grade B 
intensity. The Commission is directed to rely on the existing 
Individual Location Longley-Rice model as previously revised 
with respect to analog signals and as recommended to Congress 
in a December 2005 report required by SHVERA and to refine the 
predictive model in the future as additional data becomes 
available.
    Until the Commission implements the digital predictive 
model, it is the Committee's expectation and understanding that 
satellite carriers have agreed not to qualify households as 
unserved by reference to an analog Grade B television signal, 
but instead to qualify households as unserved by reference to 
procedures that reflect the ability of households to receive 
digital over-the-air signals. The Committee expects and has 
been assured repeatedly that satellite carriers will stand by 
this commitment.
    Section 4(b)(2) of the bill also requires the Commission to 
complete a pending rulemaking concerning on-location testing of 
a household's ability to receive an over-the-air digital 
signal, within 180 days of the date of enactment of SHVRA. 
Section 4(b)(2) of the bill also requires the Commission to 
conduct a study and issue a report to Congress within one year 
of the date of enactment to determine whether, for purposes of 
identifying if a household is unserved by an adequate digital 
signal, the Commission should revise the digital signal 
strength standard or the testing procedures in its rules to 
take into account the types of antennas available to and used 
by consumers.
    The Committee expects the Commission to consider the types 
of antennae that are readily available for purchase by 
consumers to receive the signals of local digital television 
broadcast stations over the air. Just as there are some 
households that, prior to the digital television transition, 
could not receive analog signals over the air, so there are, 
after the digital television transition, some households that 
cannot receive digital signals over the air. The purpose of the 
study and subsequent report to Congress is to provide Congress 
with the information it may need to determine whether there is 
a need to revise the existing standard for measuring a 
household's ability to receive a distant network signal.

Section 5. Application pending completion of rulemaking

    Section 5(a) of the bill states that between the date of 
enactment of SHVRA and the adoption of rules by the Commission 
pursuant to SHVRA, the Commission shall follow its rules and 
regulations as in effect on the day before the date of 
enactment of SHVRA. The Committee intends that, until the 
Commission completes the rulemaking proceedings required by 
SHVRA, the Commission's current rules shall continue to remain 
in effect.
    Section 5(b) of the bill states that 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 Act, the Commission 
shall follow its rules and regulations for determining such 
subscriber's eligibility as in effect on the day before the 
date of enactment of this Act until the date on which the 
translator station or low power television station is licensed 
to broadcast a digital signal.
    Section 5(c) of the bill contains definitions.

Section 6. Process for issuing qualified carrier certification

    Section 6 of the bill creates a new section 342 of the 
Communications Act. The Committee on the Judiciary's companion 
legislation to SHVRA establishes a process by which a federal 
court will lift an injunction that prevents a satellite carrier 
from using the distant signal compulsory copyright license once 
the Commission determines that the satellite carrier provides 
local-into-local service in all 210 DMAs in the United States. 
Section 6 of the bill sets forth the requirements such a 
satellite carrier must meet to obtain a certification of 
compliance from the FCC. The satellite carrier may then present 
the certificate to the court, which will lift the injunction.
    In SHVIA, Congress, recognizing the capacity constraints 
faced by satellite carriers, adopted a requirement that 
satellite carriers provide the signal of all local broadcast 
stations requesting carriage in a market when they provide at 
least one such signal pursuant to the local-into-local 
compulsory copyright license. In this way, satellite carriers 
could decide in which DMAs they wanted to roll out local-into-
local service, and when.\12\
---------------------------------------------------------------------------
    \12\As of November 2009, DirecTV provides local service in 152 
markets, and DISH Network provided local service in 182 markets. This 
means that roughly 30 DMAs have no local-into-local service. See 
footnotes 8 and 9, supra.
---------------------------------------------------------------------------
    The majority of DMAs that lack local service from a 
satellite carrier are in rural areas, and many of these markets 
do not have a full complement of local network affiliates.\13\
---------------------------------------------------------------------------
    \13\As noted above, such markets are often referred to as ``short 
markets.''
---------------------------------------------------------------------------
    According to the satellite carriers, because these 
communities are often sparsely populated and often lack a full 
complement of local network affiliates, these areas are less 
economic for satellite carriers to serve. Simply put, the cost 
of providing local service in these areas cannot be supported 
through the addition of new subscribers. Absent a financial or 
regulatory incentive or a government mandate to extend local 
service to these remote areas, many of these markets may never 
receive local television service delivered by satellite.
    DISH is currently the only satellite carrier barred from 
using the distant signal compulsory copyright license to 
retransmit any out-of-market network programming to any of its 
subscribers. This is the result of a nationwide permanent 
injunction issued by the United States Court of Appeals for the 
Eleventh Circuit. The inability to offer distant network 
programming makes it difficult for DISH to commence local-into-
local service in short markets because it cannot use the 
distant signal license to offer out-of-market programming to 
provide a missing local network affiliate. DISH has informed 
the Committee that it would commit to offer local-into-local 
service in all 210 DMAs if it were provided a mechanism by 
which the company could seek to have the permanent injunction 
lifted.
    The Judiciary Committee's companion legislation establishes 
a method by which DISH can seek a waiver of the permanent 
injunction, subject to certain conditions and FCC 
certification.
    New section 342(a) of the bill directs the FCC to issue a 
certification in compliance with 17 U.S.C. 119(g)(3)(A)(iii) if 
the Commission determines: (1) that the requesting satellite 
carrier is offering local-into-local service in all 210 DMAs in 
the United States; (2) that the requesting satellite carrier's 
satellite beams are designed to provide a good quality signal 
to 90% of the households in each DMA in which the satellite 
carrier is not offering local-into-local service as of the date 
of enactment of SHVRA; and (3) that 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 meet the requirement to provide a 
good quality signal to 90% of the households in each DMA in 
which the satellite carrier is not offering local-into-local 
service as of the date of enactment of SHVRA.
    New section 342(b) of the bill sets forth the minimum 
information that a requesting satellite carrier must provide to 
the Commission when requesting a certification.
    New section 342(c) of the bill sets forth the timeframe for 
the Commission to seek comment on a request for certification 
and to grant or deny the request.
    New section 342(d) of the bill requires a satellite carrier 
that receives a certification from the Commission to file an 
affidavit 30 months after the certification is granted stating 
that the satellite carrier is still in compliance with the 
requirements for a qualified carrier.
    New section 342(e) of the bill defines the terms used in 
this section.

Section 7. Savings clause regarding definitions

    Section 7 of the bill states that nothing in SHVRA shall be 
construed to affect the definitions of ``program related'' and 
``primary video'' in the Communications Act or any regulations 
promulgated pursuant to that Act by the Commission. The purpose 
of this language is to ensure that the treatment of multicast 
signals in SHVRA and in the Judiciary Committee's companion 
legislation have no effect, one way or the other, on ongoing 
consideration by the Commission of policy issues relating to 
multicast signals.

Section 8. Savings clause regarding use of non-compulsory licenses; 
        report

    Section 8(a) of the bill states that nothing in SHVRA, the 
Communications Act, or any Commission regulation shall limit 
the ability of a satellite carrier and a copyright owner to 
make contractual arrangements to retransmit programming 
pursuant to an authorization granted by the copyright owner 
outside of the purview of the distant or local signal 
compulsory licenses. It is the Committee's understanding and 
intent that section 8(a) is simply a restatement and 
clarification of existing communications law, which does not 
preclude parties with the requisite rights from entering into 
agreements to retransmit programming outside of the compulsory 
copyright license regime.
    Section 8(b) directs the Commission to submit within one 
year to the House Committee on Energy and Commerce and the 
Senate Committee on Commerce, Science, and Transportation a 
report on: (1) the number of households in a state that receive 
local broadcast signals from stations with a community of 
license located in a different state; (2) the extent to which 
consumers have access to in-state broadcast programming; and 
(3) whether alternatives exist to the use of DMAs for defining 
local markets that would provide more consumers with in-state 
broadcast programming.
    The Committee notes that the problem of so-called 
``orphan'' counties is one that receives significant 
congressional attention during each Satellite Home Viewer Act 
reauthorization cycle and is of concern to consumers located in 
such counties. Orphan counties are counties assigned by The 
Nielsen Company to a local market in which most of the other 
counties in that DMA are located in a different state. 
Households in these orphan counties may not be receiving 
signals from in-state broadcast stations and therefore might 
not be receiving news, sports, and public affairs programming 
relevant to their state, though in some cases they are 
receiving such programming. The Committee also notes that the 
existing DMA system is critically interwoven with the 
predominant broadcasting business model. As such, proposed 
changes to that system deserve full exploration and careful 
consideration.
    In addition to quantifying the number of households in any 
given state that receive local broadcast signals from a 
different state, the Committee intends for the Commission to 
consider alternatives that might provide such households with 
more non-duplicating, ``in-state'' programming, such as in-
state news, public affairs, election coverage, weather, and 
public service programming that is not available from in-market 
stations. The study is not intended to facilitate carriage by 
MVPDs of duplicating network and syndicated programming from 
out-of-market stations that is already available to these 
viewers through local stations. Rather, the focus of the FCC 
study should be on options to provide these households with 
non-duplicating programming that the consumer may consider more 
relevant and ``local'' than the programming the DMA system 
might otherwise assign to them.
    The Committee is aware that cable systems in some areas 
currently import non-duplicating, in-state news, weather, and 
other local programming from out-of-market, in-state stations. 
It appears, however, that satellite carriers typically do not. 
The Commission should examine this issue.

Section 9. Nondiscrimination in carriage of high definition digital 
        signals of noncommercial educational television stations

    Section 9(a) of the bill amends section 338(a) of the 
Communications Act by adding a new section 338(a)(5). This new 
section requires each satellite carrier that is not as of the 
date of enactment of SHVRA party to a carriage contract with a 
qualified noncommercial educational television station, or its 
representative, and is retransmitting local signals in high 
definition format in any local market before the date of 
enactment of SHVRA, to provide the high definition signal of 
qualified noncommercial educational television stations in each 
such local market by December 31, 2011. New section 
338(a)(5)(B) requires each satellite carrier not a party to 
such a contract that launches high definition service in any 
local market after the date of enactment of SHVRA to provide 
immediately the high definition signals of all qualified 
noncommercial educational television stations in that local 
market. At the time SHVRA was passed by the Committee, DirecTV 
was a party to such a carriage contract, but DISH was not.
    Section 9(b) of the bill amends section 338(k) of the Act 
to add definitions of ``eligible satellite carrier'' and 
``qualified noncommercial educational television station''.

                        Explanation of Amendment

    During full Committee markup on October 15, 2009, the 
Committee adopted an amendment by Ms. Eshoo that addresses the 
carriage of local public television broadcast signals in high 
definition format by satellite carriers.
    At the time SHVRA was passed by the Committee, satellite 
carriage of local public television station signals in high 
definition format was available on most, but not all MVPDs. For 
example, the second largest DBS provider carries the signal of 
local public television stations in high definition format in 
only two markets, Alaska and Hawaii. Notably, in both states 
such carriage is mandated by law.
    Public television representatives have reached high 
definition format carriage agreements with the cable industry, 
Verizon and the largest DBS operator, DirecTV. Despite ongoing 
efforts to reach agreement with all DBS operators, these 
efforts have been unsuccessful. As a result, millions of 
consumers do not have access to public broadcasting in high 
definition format. The Committee believes this constitutes 
discriminatory treatment of locally-owned and controlled 
stations that serve their communities with high-quality, local, 
educational, and cultural content. Absent a private agreement, 
the Committee believes it is in the public interest for 
Congress to require the carriage of local public television 
programming in high definition format.
    The amendment adopted by the Committee requires a satellite 
carrier that is not a party to a carriage contract with a 
qualified noncommercial educational station, or its 
representative, to begin carrying the high definition format 
signals of qualified noncommercial educational television 
stations in at least 50% of the markets where it offers local 
high definition format service by December 31, 2010, and in 
100% of markets where it offers local high definition format 
service by December 31, 2011. It further requires such a 
satellite provider to carry the high definition format signal 
of the qualified noncommercial educational television station 
when it begins offering high definition format service in a 
market on a prospective basis.
    Given the Committee's strong preference for privately 
negotiated carriage agreements, the amendment contains a 
provision that nullifies the carriage requirement if there is a 
contract between a qualified noncommercial educational 
television station, or its representative, and an eligible 
satellite carrier prior to final passage of the bill.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

COMMUNICATIONS ACT OF 1934

           *       *       *       *       *       *       *



            TITLE III--SPECIAL PROVISIONS RELATING TO RADIO

PART I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 325. FALSE DISTRESS SIGNALS; REBROADCASTING; STUDIOS OF FOREIGN 
                    STATIONS.

  (a) * * *
  (b)(1) * * *
  (2) This subsection shall not apply--
          (A) * * *

           *       *       *       *       *       *       *

          (C) until [December 31, 2009] December 31, 2014, to 
        retransmission of the signals of network stations 
        directly to a home satellite antenna, if the subscriber 
        receiving the signal--
                  (i) * * *

           *       *       *       *       *       *       *

  (3)(A) * * *

           *       *       *       *       *       *       *

  (C) The Commission shall commence a rulemaking proceeding to 
revise the regulations governing the exercise by television 
broadcast stations of the right to grant retransmission consent 
under this subsection, and such other regulations as are 
necessary to administer the limitations contained in paragraph 
(2). Such regulations shall--
          (i) * * *
          (ii) until [January 1, 2010] January 1, 2015, 
        prohibit a television broadcast station that provides 
        retransmission consent from engaging in exclusive 
        contracts for carriage or failing to negotiate in good 
        faith, and it shall not be a failure to negotiate in 
        good faith if the television broadcast station enters 
        into retransmission consent agreements containing 
        different terms and conditions, including price terms, 
        with different multichannel video programming 
        distributors if such different terms and conditions are 
        based on competitive marketplace considerations; and
          (iii) until [January 1, 2010] January 1, 2015, 
        prohibit a multichannel video programming distributor 
        from failing to negotiate in good faith for 
        retransmission consent under this section, and it shall 
        not be a failure to negotiate in good faith if the 
        distributor enters into retransmission consent 
        agreements containing different terms and conditions, 
        including price terms, with different broadcast 
        stations if such different terms and conditions are 
        based on competitive marketplace considerations.

           *       *       *       *       *       *       *


SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.

  (a) Carriage Obligations.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Effective date.--No satellite carrier shall be 
        required to carry local television broadcast stations 
        under paragraph (1) until January 1, 2002.]

           *       *       *       *       *       *       *

          (5) Nondiscrimination in carriage of high definition 
        signals of noncommercial educational television 
        stations.--
                  (A) Existing carriage of high definition 
                signals.--Each eligible satellite carrier 
                providing, under section 122 of title 17, 
                United States Code, any secondary transmissions 
                in high definition to subscribers located 
                within the local market of a television 
                broadcast station of a primary transmission 
                made by that station prior to the date of 
                enactment of this paragraph shall carry the 
                high-definition signals of qualified 
                noncommercial educational television stations 
                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.
                          (ii) By December 31, 2011, in every 
                        market in which such satellite carrier 
                        provides such secondary transmissions 
                        in high definition.
                  (B) New initiation of service.--Each eligible 
                satellite carrier that initiates the provision, 
                under section 122 of title 17, United States 
                Code, of any secondary transmissions in high 
                definition to subscribers located within the 
                local market of a television broadcast station 
                of a primary transmission made by that station 
                after the date of enactment of this paragraph 
                shall carry the high-definition signals of all 
                qualified noncommercial educational television 
                stations located within that local market.

           *       *       *       *       *       *       *

  [(g) Carriage of Local Stations on a Single Dish.--
          [(1) Single dish.--Each satellite carrier that 
        retransmits the analog signals of local television 
        broadcast stations in a local market shall retransmit 
        such analog signals in such market by means of a single 
        reception antenna and associated equipment.
          [(2) Exception.--If the carrier retransmits signals 
        in the digital television service, the carrier shall 
        retransmit such digital signals in such market by means 
        of a single reception antenna and associated equipment, 
        but such antenna and associated equipment may be 
        separate from the single reception antenna and 
        associated equipment used for analog television service 
        signals.
          [(3) Effective date.--The requirements of paragraphs 
        (1) and (2) of this subsection shall apply on and after 
        18 months after the date of enactment of the Satellite 
        Home Viewer Extension and Reauthorization Act of 2004.
          [(4) Notice of disruptions.--A carrier that is 
        providing signals of a local television broadcast 
        station in a local market under this section on the 
        date of enactment of the Satellite Home Viewer 
        Extension and Reauthorization Act of 2004 shall, not 
        later than 15 months after such date of enactment, 
        provide to the licensees for such stations and the 
        carrier's subscribers in such local market a notice 
        that displays prominently and conspicuously a clear 
        statement of--
                  [(A) any reallocation of signals between 
                different reception antennas and associated 
                equipment that the carrier intends to make in 
                order to comply with the requirements of this 
                subsection;
                  [(B) the need, if any, for subscribers to 
                obtain an additional reception antenna and 
                associated equipment to receive such signals; 
                and
                  [(C) any cessation of carriage or other 
                material change in the carriage of signals as a 
                consequence of the requirements of this 
                paragraph.]
  (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).

           *       *       *       *       *       *       *

  (k) Definitions.--As used in this section:
          (1) * * *
          (2) Eligible satellite carrier.--The term ``eligible 
        satellite carrier'' means any satellite carrier that is 
        not a party to a carriage contract with a qualified 
        noncommercial educational television station, or its 
        representative, that is in force and effect as of the 
        date of enactment of this paragraph.
          [(2)] (3) Local receive facility.--The term ``local 
        receive facility'' means the reception point in each 
        local market which a satellite carrier designates for 
        delivery of the signal of the station for purposes of 
        retransmission.
          [(3)] (4) Local market.--The term ``local market'' 
        has the meaning given that term under section 122( j) 
        of title 17, United States Code.
          [(4)] (5) Low power television station.--The term 
        ``low power television station'' means a low power 
        television station as defined under section 74.701(f) 
        of title 47, Code of Federal Regulations, as in effect 
        on June 1, 2004. For purposes of this paragraph, the 
        term ``low power television station'' includes a low 
        power television station that has been accorded primary 
        status as a Class A television licensee under section 
        73.6001(a) of title 47, Code of Federal Regulations.
          (6) Qualified noncommercial educational television 
        station.--The term ``qualified noncommercial 
        educational television station'' has the meaning given 
        such term in section 615(l)(1) of this Act.
          [(5)] (7) Satellite carrier.--The term ``satellite 
        carrier'' has the meaning given such term under section 
        119(d) of title 17, United States Code.
          [(6)] (8) Secondary transmission.--The term 
        ``secondary transmission'' has the meaning given such 
        term in section 119(d) of title 17, United States Code.
          [(7)] (9) Subscriber.--The term ``subscriber'' has 
        the meaning given that term under section 122(j) of 
        title 17, United States Code.
          [(8)] (10) Television broadcast station.--The term 
        ``television broadcast station'' has the meaning given 
        such term in section 325(b)(7).

SEC. 339. CARRIAGE OF DISTANT TELEVISION STATIONS BY SATELLITE 
                    CARRIERS.

  (a) Provisions Relating to Carriage of Distant Signals.--
          (1) Carriage permitted.--
                  (A) * * *
                  (B) Additional service.--In addition to 
                signals provided under subparagraph (A), any 
                satellite carrier may also provide service 
                under the statutory license of section 122 of 
                title 17, United States Code, to the local 
                market within which such household is located. 
                The service provided under section 122 of such 
                title may be in addition to the two signals 
                provided under section 119 of such title. [Such 
                two network stations may be comprised of both 
                the analog signal and digital signal of not 
                more than two network stations.]
          (2) Replacement of distant signals with local 
        signals.--Notwithstanding any other provision of 
        paragraph (1), the following rules shall apply after 
        the date of enactment of the Satellite Home Viewer 
        Extension and Reauthorization Act of 2004:
                  (A) Rules for grandfathered subscribers [to 
                analog signals].--
                          (i) For those receiving distant 
                        [analog] signals.--In the case of a 
                        subscriber of a satellite carrier who 
                        is eligible to receive the [analog] 
                        signal of a network station solely by 
                        reason of section 119(e) of title 17, 
                        United States Code (in this 
                        subparagraph referred to as a ``distant 
                        [analog] signal''), and who, as of 
                        [October 1, 2004] October 1, 2009, is 
                        receiving the distant [analog] signal 
                        of that network station, the following 
                        shall apply:
                                  (I) In a case in which the 
                                satellite carrier makes 
                                available to the subscriber the 
                                [analog] 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 [analog] signal of a 
                                station affiliated with the 
                                same network to that 
                                subscriber--
                                          (aa) if, within 60 
                                        days after receiving 
                                        the notice of the 
                                        satellite carrier under 
                                        section 338(h)(1) of 
                                        this Act, the 
                                        subscriber elects to 
                                        retain the distant 
                                        [analog] signal; but
                                          (bb) only until such 
                                        time as the subscriber 
                                        elects to receive such 
                                        local [analog] signal.
                                  (II) Notwithstanding 
                                subclause (I), the carrier may 
                                not retransmit the distant 
                                [analog] signal to any 
                                subscriber who is eligible to 
                                receive the [analog] signal of 
                                a network station solely by 
                                reason of section 119(e) of 
                                title 17, United States Code, 
                                unless such carrier, within 60 
                                days after the date of the 
                                enactment of the Satellite Home 
                                Viewer Extension and 
                                Reauthorization Act of 2004, 
                                submits to that television 
                                network the list and statement 
                                required by subparagraph 
                                (F)(i).
                          (ii) For those not receiving distant 
                        [analog] signals.--In the case of any 
                        subscriber of a satellite carrier who 
                        is eligible to receive the distant 
                        [analog] signal of a network station 
                        solely by reason of section 119(e) of 
                        title 17, United States Code, and who 
                        did not receive a distant [analog] 
                        signal of a station affiliated with the 
                        same network on October 1, [2004] 2009, 
                        the carrier may not provide the 
                        secondary transmissions of the distant 
                        [analog] signal of a station affiliated 
                        with the same network to that 
                        subscriber.
                  [(B) Rules for other subscribers to analog 
                signals.--In the case of a subscriber of a 
                satellite carrier who is eligible to receive 
                the analog signal of a network station under 
                this section (in this subparagraph referred to 
                as a ``distant analog 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 
                        analog 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 
                        analog signal of a station affiliate 
                        with the same network to that 
                        subscriber if the subscriber's 
                        satellite carrier, not later than March 
                        1, 2005, submits to that television 
                        network the list and statement required 
                        by subparagraph (F)(i).
                          [(ii) In a case in which the 
                        satellite carrier does not make 
                        available to that subscriber, on 
                        January 1, 2005, the analog signal of a 
                        local network station pursuant to 
                        section 338, the carrier may only 
                        provide the secondary transmissions of 
                        the distant analog signal of a station 
                        affiliated with the same network to 
                        that subscriber if--
                                  [(I) that subscriber seeks to 
                                subscribe to such distant 
                                analog signal before the date 
                                on which such carrier commences 
                                to carry pursuant to section 
                                338 the analog signals of 
                                stations from the local market 
                                of such local network station; 
                                and
                                  [(II) the satellite carrier, 
                                within 60 days after such date, 
                                submits to each television 
                                network the list and statement 
                                required by subparagraph 
                                (F)(ii).]
                  (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 clause 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 Home Viewer Reauthorization 
                        Act of 2009 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.
                  (C) Future applicability.--A satellite 
                carrier may not provide a distant [analog] 
                signal (within the meaning of subparagraph (A) 
                or (B)) to a person who--
                          (i) is not a subscriber lawfully 
                        receiving such secondary transmission 
                        as of the date of the enactment of [the 
                        Satellite Home Viewer Extension and 
                        Reauthorization Act of 2004] the 
                        Satellite Home Viewer Reauthorization 
                        Act of 2009; and
                          [(ii) at the time such person seeks 
                        to subscribe to receive such secondary 
                        transmission, resides in a local market 
                        where the satellite carrier makes 
                        available to that person the signal of 
                        a local network station affiliated with 
                        the same television network pursuant to 
                        section 338, and the retransmission of 
                        such signal by such carrier can reach 
                        such subscriber.]
                          (ii) either--
                                  (I) 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
                                  (II) receives from the 
                                satellite carrier the signal of 
                                a network station affiliated 
                                with the same network that is 
                                broadcast by a local station in 
                                the market where the subscriber 
                                resides, but is not the local 
                                station's primary video.
                  (D) Special rules for distant digital 
                signals.--
                          [(i) Eligibility.--In the case of a 
                        subscriber of a satellite carrier who, 
                        with respect to a local network 
                        station--
                                  [(I) is a subscriber whose 
                                household is located outside 
                                the coverage area of the analog 
                                signal of such station as 
                                predicted by the model 
                                specified in subsection (c)(3) 
                                of this section for the signal 
                                intensity required under 
                                section 73.683(a) of title 47 
                                of the Code of Federal 
                                Regulations, or a successor 
                                regulation;
                                  [(II) is in an unserved 
                                household as determined under 
                                section 119(d)(1)(A) of title 
                                17, United States Code; or
                                  [(III) is, after the date on 
                                which the conditions required 
                                by clause (vii) are met with 
                                respect to such station, 
                                determined under clause (vi) of 
                                this subparagraph to be unable 
                                to receive a digital signal of 
                                such local network station that 
                                exceeds the signal intensity 
                                standard specified in such 
                                clause;
                        such subscriber is eligible to receive 
                        the digital signal of a distant network 
                        station affiliated with the same 
                        network under this section (in this 
                        subparagraph referred to as a ``distant 
                        digital signal'') subject to the 
                        provisions of this subparagraph.
                          [(vi) Signal testing for digital 
                        signals.--
                                  [(I) A subscriber shall be 
                                eligible for a distant digital 
                                signal under clause (i)(III) if 
                                such subscriber 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) of title 47, Code 
                                of Federal Regulations, as in 
                                effect on the date of enactment 
                                of the Satellite Home Viewer 
                                Extension and Reauthorization 
                                Act of 2004.
                                  [(II) Such test shall be 
                                conducted, upon written request 
                                for a digital signal strength 
                                test by the subscriber to the 
                                satellite carrier, within 30 
                                days after the date the 
                                subscriber submits such request 
                                for the test. Such test shall 
                                be conducted by a qualified and 
                                independent person selected by 
                                the satellite carrier and the 
                                network station or stations, or 
                                who has been previously 
                                approved by the satellite 
                                carrier and by each affected 
                                network station but not 
                                previously disapproved. A 
                                tester may not be so 
                                disapproved for a test after 
                                the tester has commenced such 
                                test.
                                  [(III) Unless the satellite 
                                carrier and the network station 
                                or stations otherwise agree, 
                                the costs of conducting the 
                                test shall be borne as follows:
                                          [(aa) If the 
                                        subscriber is not 
                                        eligible for a distant 
                                        digital signal under 
                                        clause (i)(I) of this 
                                        subparagraph (by reason 
                                        of being outside of the 
                                        coverage area of the 
                                        analog signal), the 
                                        satellite carrier may 
                                        request the station 
                                        licensee for a waiver.
                                          [(bb) If the licensee 
                                        agrees to a waiver, or 
                                        fails to respond to a 
                                        waiver request within 
                                        30 days, the subscriber 
                                        may receive such 
                                        distant digital signal.
                                          [(cc) If the licensee 
                                        refuses to grant a 
                                        waiver, the subscriber 
                                        may request the 
                                        satellite carrier to 
                                        conduct the test.
                                          [(dd) If the 
                                        satellite carrier 
                                        requests the test and--
                                                  [(AA) the 
                                                station's 
                                                signal is 
                                                determined to 
                                                exceed such 
                                                signal 
                                                intensity 
                                                standard, the 
                                                costs of the 
                                                test shall be 
                                                borne by the 
                                                satellite 
                                                carrier; and
                                                  [(BB) the 
                                                station's 
                                                signal is 
                                                determined to 
                                                not exceed such 
                                                signal 
                                                intensity 
                                                standard, the 
                                                costs of the 
                                                test shall be 
                                                borne by the 
                                                licensee.
                                          [(ee) If the 
                                        satellite carrier does 
                                        not request the test, 
                                        or fails to respond 
                                        within 30 days, the 
                                        subscriber may request 
                                        the test be conducted 
                                        under the supervision 
                                        of the carrier, and the 
                                        costs of the test shall 
                                        be borne by the 
                                        subscriber in 
                                        accordance with 
                                        regulations prescribed 
                                        by the Commission. Such 
                                        regulations shall also 
                                        require the carrier to 
                                        notify the subscriber 
                                        of the typical costs of 
                                        such test.]
                          (i) Signal testing.--A subscriber 
                        shall be eligible to receive a distant 
                        signal of a distant network station 
                        affiliated with the same network under 
                        this section if such subscriber 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) of title 47, Code 
                        of Federal Regulations.
                          (ii) Pre-enactment distant [digital] 
                        signal subscribers.--Any eligible 
                        subscriber under this subparagraph who 
                        is a lawful subscriber to such a 
                        distant [digital] signal as of the date 
                        of enactment of the [Satellite Home 
                        Viewer Extension and Reauthorization 
                        Act of 2004] Satellite Home Viewer 
                        Reauthorization Act of 2009 may 
                        continue to receive such distant 
                        [digital] signal[, whether or not such 
                        subscriber elects to subscribe to local 
                        digital signals].
                          (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.
                          [(iii) Local-to-local analog 
                        markets.--In a case in which the 
                        satellite carrier makes available to an 
                        eligible subscriber under this 
                        subparagraph the analog signal of a 
                        local network station pursuant to 
                        section 338, the carrier may only 
                        provide the distant digital signal of a 
                        station affiliated with the same 
                        network to that subscriber if--
                                  [(I) in the case of any local 
                                market in the 48 contiguous 
                                States of the United States, 
                                the distant digital 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;
                                  [(II) in any local market, 
                                the retransmission of the 
                                distant digital signal of the 
                                distant station occupies at 
                                least the equivalent bandwidth 
                                (as such term is defined by the 
                                Commission under section 
                                340(h)(4)) as the digital 
                                signal broadcast by such 
                                station; and
                                  [(III) the subscriber 
                                subscribes to the analog signal 
                                of such local network station 
                                within 60 days after such 
                                signal is made available by the 
                                satellite carrier, and adds to 
                                or replaces such analog signal 
                                with the digital signal from 
                                such local network station 
                                within 60 days after such 
                                signal is made available by the 
                                satellite carrier, except that 
                                such distant digital signal may 
                                continue to be provided to a 
                                subscriber who cannot be 
                                reached by the satellite 
                                transmission of the local 
                                digital signal.
                          [(iv) Local-to-local digital 
                        markets.--After the date on which a 
                        satellite carrier makes available the 
                        digital signal of a local network 
                        station, the carrier may not offer the 
                        distant digital signal of a network 
                        station affiliated with the same 
                        television network to any new 
                        subscriber to such distant digital 
                        signal after such date, except that 
                        such distant digital signal may be 
                        provided to a new subscriber who cannot 
                        be reached by the satellite 
                        transmission of the local digital 
                        signal.
                          [(v) Non-local-to-local markets.--
                        After the date of enactment of the 
                        Satellite Home Viewer Extension and 
                        Reauthorization Act of 2004, if the 
                        satellite carrier does not make 
                        available the digital signal of a local 
                        network station in a local market, the 
                        satellite carrier may offer a new 
                        subscriber after such date who is 
                        eligible under this subparagraph a 
                        distant digital signal from a station 
                        affiliated with the same network and, 
                        in the case of any local market in the 
                        48 contiguous States of the United 
                        States, 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, except that--
                                  [(I) such carrier may 
                                continue to provide such 
                                distant digital signal to such 
                                a subscriber after the date on 
                                which the carrier makes 
                                available the digital signal of 
                                a local network station 
                                affiliated with such network 
                                only if such subscriber 
                                subscribes to the digital 
                                signal from such local network 
                                station; and
                                  [(II) the limitation 
                                contained in subclause (I) of 
                                this clause shall not apply to 
                                a subscriber that cannot be 
                                reached by the satellite 
                                transmission of the local 
                                digital signal.
                          [(vii) Trigger events for use of 
                        testing.--A subscriber shall not be 
                        eligible for a distant digital signal 
                        under clause (i)(III) pursuant to a 
                        test conducted under clause (vii) 
                        until--
                                  [(I) in the case of a 
                                subscriber whose household is 
                                located within the area 
                                predicted to be served (by the 
                                predictive model for analog 
                                signals under subsection (b)(3) 
                                of this section) by the signal 
                                of a local network station and 
                                who is seeking a distant 
                                digital signal of a station 
                                affiliated with the same 
                                network as that local network 
                                station--
                                          [(aa) April 30, 2006, 
                                        if such local network 
                                        station is within the 
                                        top 100 television 
                                        markets and--
                                                  [(AA) has 
                                                received a 
                                                tentative 
                                                digital 
                                                television 
                                                service channel 
                                                designation 
                                                that is the 
                                                same as such 
                                                station's 
                                                current digital 
                                                television 
                                                service 
                                                channel; or
                                                  [(BB) has 
                                                been found by 
                                                the Commission 
                                                to have lost 
                                                interference 
                                                protection; or
                                          [(bb) July 15, 2007, 
                                        for any other local 
                                        network stations, other 
                                        than translator 
                                        stations licensed to 
                                        broadcast on the date 
                                        of enactment of the 
                                        Satellite Home Viewer 
                                        Extension and 
                                        Reauthorization Act of 
                                        2004; or
                                  [(II) in the case of a 
                                translator station, 1 year 
                                after the date on which the 
                                Commission completes all 
                                actions necessary for the 
                                allocation and assignment of 
                                digital television licenses to 
                                television translator stations.
                          [(viii) Testing waivers.--Upon 
                        request by a local network station, the 
                        Commission may grant a waiver with 
                        respect to such station to the 
                        beginning of testing under clause 
                        (vii), and prohibit subscribers from 
                        receiving digital signal strength 
                        testing with respect to such station. 
                        Such a request shall be filed not less 
                        than 5 months prior to the 
                        implementation deadline specified in 
                        such clause, and the Commission shall 
                        act on such request by such 
                        implementation deadline. Such a waiver 
                        shall expire at the end of not more 
                        than 6 months, except that a waiver may 
                        be renewed upon a proper showing. The 
                        Commission may only grant such a 
                        request upon submission of clear and 
                        convincing evidence that the station's 
                        digital signal coverage is limited due 
                        to the unremediable presence of one or 
                        more of the following:
                                  [(I) the need for 
                                international coordination or 
                                approvals;
                                  [(II) clear zoning or 
                                environmental legal 
                                impediments;
                                  [(III) force majeure;
                                  [(IV) the station experiences 
                                a substantial decrease in its 
                                digital signal coverage area 
                                due to necessity of using side-
                                mounted antenna;
                                  [(V) substantial technical 
                                problems that result in a 
                                station experiencing a 
                                substantial decrease in its 
                                coverage area solely due to 
                                actions to avoid interference 
                                with emergency response 
                                providers; or
                                  [(VI) no satellite carrier is 
                                providing the retransmission of 
                                the analog signals of local 
                                network stations under section 
                                338 in the local market.
                        Under no circumstances may such a 
                        waiver be based upon financial 
                        exigency.
                          [(ix) Special waiver provision for 
                        translators.--Upon request by a 
                        television translator station, the 
                        Commission may grant, for not more than 
                        3 years, a waiver with respect to such 
                        station to the beginning of testing 
                        under clause (vii), and prohibit 
                        subscribers from receiving digital 
                        signal strength testing with respect to 
                        such station, if the Commission 
                        determines that the translator station 
                        is not broadcasting a digital signal 
                        due to one or more of the following:
                                  [(I) frequent occurrence of 
                                inclement weather; or
                                  [(II) mountainous terrain at 
                                the transmitter tower 
                                location.]
                          [(x)] (iv) Savings provision.--
                        Nothing in this subparagraph shall be 
                        construed to affect a satellite 
                        carrier's obligations under section 
                        338.
                          [(xi) Definition.--For purposes of 
                        clause (viii), the term ``emergency 
                        response providers'' means Federal, 
                        State, or local governmental and 
                        nongovernmental emergency public 
                        safety, law enforcement, fire, 
                        emergency response, emergency medical 
                        (including hospital emergency 
                        facilities), and related personnel, 
                        organizations, agencies, or 
                        authorities.]
                  (E) Authority to grant station-specific 
                waivers.--This paragraph shall not prohibit a 
                retransmission of a [distant analog signal or 
                distant digital signal (within the meaning of 
                subparagraph (A), (B), or (D))] distant signal 
                of any distant network station to any 
                subscriber to whom the signal of a local 
                network station affiliated with the same 
                network is available, if and to the extent that 
                such local network station has affirmatively 
                granted a waiver from the requirements of this 
                paragraph to such satellite carrier with 
                respect to retransmission of such distant 
                network station to such subscriber.

           *       *       *       *       *       *       *

  (c) Eligibility for Retransmission.--
          (1) * * *

           *       *       *       *       *       *       *

          [(3) Establishment of improved predictive model 
        required.--Within 180 days after the date of the 
        enactment of the Satellite Home Viewer Improvement Act 
        of 1999, the Commission shall take all actions 
        necessary, including any reconsideration, to develop 
        and prescribe by rule a point-to-point predictive model 
        for reliably and presumptively determining the ability 
        of individual locations to receive signals in 
        accordance with the signal intensity standard in effect 
        under section 119(d)(10)(A) of title 17, United States 
        Code. In prescribing such model, the Commission shall 
        rely on the Individual Location Longley-Rice model set 
        forth by the Federal Communications Commission in 
        Docket No. 98-201 and ensure that such model takes into 
        account terrain, building structures, and other land 
        cover variations. 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.]
          (3) Establishment of improved predictive model and 
        on-location testing required.--
                  (A) Predictive model.--Within 180 days after 
                the date of the enactment of the Satellite Home 
                Viewer Reauthorization Act of 2009, the 
                Commission shall take all actions necessary to 
                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 a conventional, 
                stationary, outdoor rooftop receiving antenna, 
                to receive signals in accordance with the 
                signal intensity standard in section 
                73.622(e)(1) of title 47, Code of Federal 
                Regulations, 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 180 
                days after the date of enactment of the 
                Satellite Home Viewer Reauthorization Act of 
                2009.
                  (C) Study of types of antennas available to 
                receive digital signals.--
                          (i) Study required.--Not later than 1 
                        year after the date of enactment of the 
                        Satellite Home Viewer Reauthorization 
                        Act of 2009, the Commission shall 
                        complete a study regarding whether, for 
                        purposes of identifying if a household 
                        is unserved by an adequate digital 
                        signal under section 119(d)(10) of 
                        title 17, United States Code, the 
                        digital signal strength standard in 
                        section 73.622(e)(1) of title 47, Code 
                        of Federal Regulations, or the testing 
                        procedures in section 73.686 of title 
                        47, Code of Federal Regulations, such 
                        statutes or regulations should be 
                        revised to take into account the types 
                        of antennas that are available to and 
                        used by consumers.
                          (ii) Study consideration.--In 
                        conducting the study under clause (i), 
                        the Commission shall consider whether 
                        to account for the fact that an antenna 
                        can be mounted on a roof or placed in a 
                        home and can be fixed or capable of 
                        rotating.
                          (iii) Report.--Not later than 1 year 
                        after the date of enactment of the 
                        Satellite Home Viewer Reauthorization 
                        Act of 2009, the Commission shall 
                        submit to the Committee on Energy and 
                        Commerce of the House of 
                        Representatives and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate a report containing--
                                  (I) the results of the study 
                                conducted under clause (i); and
                                  (II) recommendations, if any, 
                                regarding changes to be made to 
                                Federal statutes or 
                                regulations.
          (4) Objective verification.--
                  [(A) In general.--If a subscriber's request 
                for a waiver under paragraph (2) is rejected 
                and the subscriber submits to the subscriber's 
                satellite carrier a request for a test 
                verifying the subscriber's inability to receive 
                a signal that meets the signal intensity 
                standard in effect under section 119(d)(10)(A) 
                of title 17, United States Code, 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 a 
                test in accordance with section 73.686(d) of 
                its regulations (47 CFR 73.686(d)), or any 
                successor regulation. 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 section (or 
                any successor regulation) demonstrate that the 
                subscriber does not receive a signal that meets 
                or exceeds the signal intensity standard in 
                effect under section 119(d)(10)(A) of title 17, 
                United States Code, the subscriber shall not be 
                denied the retransmission of a signal of a 
                network station under section 119 of title 17, 
                United States Code.]
                  (A) In general.--If a subscriber's request 
                for a waiver under paragraph (2) is rejected 
                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 of title 
                17, United States Code.
                  (B) Designation of tester and allocation of 
                costs.--If the satellite carrier and the 
                network station or stations asserting that the 
                retransmission is prohibited are unable to 
                agree on such a person to conduct the test, the 
                person shall be designated by an independent 
                and neutral entity designated by the Commission 
                by rule. Unless the satellite carrier and the 
                network station or stations otherwise agree, 
                the costs of conducting the test under this 
                paragraph shall be borne by the satellite 
                carrier, if the station's signal meets or 
                exceeds [the signal intensity standard in 
                effect under section 119(d)(10)(A) of title 17, 
                United States Code] such requisite signal 
                intensity standard, or by the network station, 
                if its signal fails to meet or exceed such 
                standard.

           *       *       *       *       *       *       *

                  (E) Exception.--A satellite carrier may 
                refuse to engage in the testing process. If the 
                carrier does so refuse, a subscriber in a local 
                market in which the satellite carrier does not 
                offer the signals of local broadcast stations 
                under section 338 may, at his or her own 
                expense, authorize a signal intensity test to 
                be performed pursuant to the procedures 
                specified by the Commission in section 
                73.686(d) of title 47, Code of Federal 
                Regulations, by a tester who is approved by the 
                satellite carrier and by each affected network 
                station, or who has been previously approved by 
                the satellite carrier and by each affected 
                network station but not previously disapproved. 
                A tester may not be so disapproved for a test 
                after the tester has commenced such test. The 
                tester shall give 5 business days advance 
                written notice to the satellite carrier and to 
                the affected network station or stations. A 
                signal intensity test conducted in accordance 
                with this subparagraph shall be determinative 
                of the signal strength received at that 
                household for purposes of determining whether 
                the household is capable of receiving a [Grade 
                B intensity] signal.

           *       *       *       *       *       *       *


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

  (a) * * *
  (b) Limitations.--
          [(1) Analog service limited to subscribers taking 
        local-into-local service.--With respect to a signal 
        that originates as an analog signal of a network 
        station, this section shall apply only to 
        retransmissions to subscribers of a satellite carrier 
        who receive retransmissions of a signal that originates 
        as an analog signal of a local network station from 
        that satellite carrier pursuant to section 338.
          [(2) Digital service limitations.--With respect to a 
        signal that originates as a digital signal of a network 
        station, this section shall apply only if--
                  [(A) the subscriber receives from the 
                satellite carrier pursuant to section 338 the 
                retransmission of the digital signal of a 
                network station in the subscriber's local 
                market that is affiliated with the same 
                television network; and
                  [(B) either--
                          [(i) the retransmission of the local 
                        network station occupies at least the 
                        equivalent bandwidth as the digital 
                        signal retransmitted pursuant to this 
                        section; or
                          [(ii) the retransmission of the local 
                        network station is comprised of the 
                        entire bandwidth of the digital signal 
                        broadcast by such local network 
                        station.]
          (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.

           *       *       *       *       *       *       *

  (i) Definitions.--As used in this section:
          (1) * * *

           *       *       *       *       *       *       *

          [(4) Bandwidth.--The terms ``equivalent bandwidth'' 
        and ``entire bandwidth'' shall be defined by the 
        Commission by regulation, except that this paragraph 
        shall not be construed--
                  [(A) to prevent a satellite operator from 
                using compression technology;
                  [(B) to require a satellite operator to use 
                the identical bandwidth or bit rate as the 
                local or distant broadcaster whose signal it is 
                retransmitting;
                  [(C) to require a satellite operator to use 
                the identical bandwidth or bit rate for a local 
                network station as it does for a distant 
                network station;
                  [(D) to affect a satellite operator's 
                obligations under subsection (a)(1); or
                  [(E) to affect the definitions of ``program 
                related'' and ``primary video''.]

           *       *       *       *       *       *       *


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 Home Viewer Reauthorization Act of 2009--
                  (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 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 
        Home Viewer Reauthorization Act of 2009.
          (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 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 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 models of 
                        satellite antennas normally used by the 
                        satellite carrier's subscribers and the 
                        same calculation methodology used by 
                        the satellite carrier to determine 
                        predicted signal availability in the 
                        top 100 designated market areas; and
                          (ii) a video signal transmitted by 
                        satellite carrier such that, 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 does not circumvent the intent of 
                        this section to provide for non-
                        discriminatory treatment with respect 
                        to any comparable television broadcast 
                        station signal--
                                  (I) the satellite carrier 
                                treats all television broadcast 
                                station's 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.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    We, the undersigned Members of the Committee on Energy and 
Commerce, submit the following comments on H.R. 2994 to express 
our concerns with the amending language that mandates high-
definition carriage of public broadcasting stations.
    Section 9 of the bill is designed to cajole the DISH 
Network into carrying public broadcast stations in high-
definition format. Such congressional intervention is neither 
necessary nor appropriate, as there is no market failure. We 
note that the issue here is not DISH subscribers' access to 
public broadcasting, as DISH carries public broadcasters in 
standard definition. Moreover, most consumers can get public 
television in high-definition format over-the-air, from a cable 
operator, from a phone company, or from DirecTV.
    DISH has chosen not to provide the public broadcast 
programming in high definition. The company knows its needs and 
business model better than the government. Carrying programming 
in high definition as opposed to standard definition uses 
additional capacity and has costs--costs that could be borne by 
the consumer. For example, to carry public broadcasters in high 
definition as well as in standard definition, DISH may need to 
drop other programming that it believes its subscribers 
prefer--such as sports programming, movies, or foreign language 
programming. It may need to delay rollout of local-into-local 
service in additional markets. By pushing DISH to carry public 
broadcasting in high-definition format, the government is 
making business decisions for DISH that may or may not be 
sound.
    Supporters of the bill argue that the provision does not 
compel carriage, but rather allows DISH discretion. They 
downplay, however, the level of compulsion. Section 9(a) adds 
new Section 338(a)(5) to the Communications Act. New Section 
338(a)(5) requires a satellite carrier--that (1) has not 
entered into a carriage contract with a qualified, 
noncommercial, educational television station by the date of 
enactment and (2) that is providing other broadcast stations' 
signals in high-definition format in a market under the local 
compulsory copyright license as of the date of enactment--to 
provide non-commercial stations' signals in high-definition 
format in that market by December 31, 2011. New Section 
338(a)(5)(B) requires a satellite carrier that has not entered 
into such a carriage contract by the date of enactment and that 
launches local high-definition service in any market after the 
date of enactment must provide the high-definition signals of 
all qualified, noncommercial, educational television stations 
in that local market. At the time SHVRA was passed by the 
Committee, DirecTV was a party to such a carriage contract, but 
DISH was not. Section 9 was added by an amendment offered by 
Ms. Eshoo and narrowly adopted by the Committee.
    The provision allows DISH to escape the compelled carriage 
by entering into a separate carriage agreement with public 
broadcasters, but that is not the same thing as providing DISH 
with discretion. Indeed, it appears the very aim of this 
provision is to present certain disadvantageous consequences to 
DISH in order to encourage it to enter into agreements it might 
not otherwise accept. Such influence is all the more 
unwarranted when one considers that DISH will be required to 
carry public broadcasters in high definition in stages by 2013 
anyway, in light of the digital carriage order the Federal 
Communication Commission (FCC) issued in March 2008. (See In re 
Carriage of Digital Television Broadcast Signals: Amendment to 
Part 76 of the Commission's Rules, Second Report and Order, 23 
FCC Rcd 5351 (2008).) The FCC established the schedule, taking 
into account satellite carriers' capacity and technological 
constraints, and DISH as well as DirecTV have been designing 
their business and satellite launch plans around that 
timetable. Advocates of this provision may argue that the FCC's 
timetable has had the negative effect of discouraging DISH from 
entering into a negotiated carriage deal with public 
broadcasters any earlier than 2013. But that is more an 
indictment of government intervention in video carriage 
arrangements in the first place than justification for this 
provision.
    DISH should be given the flexibility to determine how best 
to allocate its resources to serve its subscribers' needs. 
Providers distinguish themselves in various ways with different 
packages of content, and should be left to decide what segment 
of the market to go after and how. If DISH makes a poor 
business decision, consumers have many other options. We 
therefore believe there is no reason for congressional 
intervention, and oppose inclusion of Section 9.
                                   Joe Barton.
                                   Clifford Stearns.
                                   Roy Blunt.
                                   Lee Terry.
                                   Steve Buyer.
                                   Ralph M. Hall.
                                   Ed Whitfield.
                                   George Radanovich.
                                   John Shimkus.
                                   Nathan Deal.
                                   Fred Upton.
                                   Joseph R. Pitts.
                                   John Sullivan.
                                   John Shadegg.
                                   Tim Murphy.
                                   Marsha Blackburn.
                                   Sue Myrick.
                                   Michael Burgess.
                                   Mary Bono Mack.
                                   Phil Gingrey.

                                  
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