[Senate Report 113-322]
[From the U.S. Government Publishing Office]
113th Congress } SENATE { Report
2d Session } { 113-322
______________________________________________________________________
Calendar No. 569
SATELLITE TELEVISION ACCESS AND VIEWER RIGHTS ACT
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2799
December 12, 2014.--Ordered to be printed
U.S. GOVERNMENT PUBLISHING OFFICE
49-010 PDF WASHINGTON : 2014
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred thirteenth congress
second session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
BARBARA BOXER, California JOHN THUNE, South Dakota
BILL NELSON, Florida ROGER F. WICKER, Mississippi
MARIA CANTWELL, Washington ROY BLUNT, Missouri
MARK PRYOR, Arkansas MARCO RUBIO, Florida
CLAIRE McCASKILL, Missouri KELLY AYOTTE, New Hampshire
AMY KLOBUCHAR, Minnesota DEAN HELLER, Nevada
MARK BEGICH, Alaska DANIEL COATS, Indiana
RICHARD BLUMENTHAL, Connecticut TIM SCOTT, South Carolina
BRIAN SCHATZ, Hawaii TED CRUZ, Texas
ED MARKEY, Massachusetts DEB FISCHER, Nebraska
CORY BOOKER, New Jersey RON JOHNSON, Wisconsin
JOHN WALSH, Montana
Ellen Doneski, Staff Director
John Williams, General Counsel
David Schwietert, Republican Staff Director
Nick Rossi, Republican Deputy Staff Director
Rebecca Seidel, Republican General Counsel
113th Congress Report
SENATE
2d Session 113-322
======================================================================
SATELLITE TELEVISION ACCESS AND VIEWER RIGHTS ACT
_______
December 12, 2014.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 2799]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2799) to extend the authority
of satellite carriers to retransmit certain television
broadcast station signals, and for other purposes, having
considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.
Purpose of the Bill
The purpose of S. 2799, the Satellite Television Access and
Viewer Rights Act (STAVRA), as reported, is to reauthorize
certain provisions of the Communications Act of 1934
(Communications Act) that govern satellite retransmission of
television broadcast signals, which are set to expire at the
end of 2014. STAVRA also amends the Communications Act to make
several changes to existing video policy related to the
television markets served by satellite pay TV companies;
retransmission consent and the related ``good faith'' rules for
retransmission consent negotiations; the integration ban rule
presently applicable to cable set-top boxes; and the
administrative rules for how small cable companies file
petitions to prove effective competition under the
Communications Act.
Background and Needs
Direct broadcast satellite (DBS) service is a nationally
distributed subscription service that delivers video and audio
programming over satellite to a small antenna located at a
subscriber's residence. The Federal Communications Commission
(FCC) first authorized the service in 1988, and DBS service
became commercially available in 1994. Currently, there are two
major DBS providers, DIRECTV and Dish Network.
Over the past 20 years, subscribership to DBS service has
grown substantially, making satellite carriers significant
competitors to cable operators. According to the FCC's 15th
Video Competition Report (issued in July 2013), approximately
101 million households in the United States subscribe to a
multichannel video programming distributor (MVPD), which
includes cable operators, satellite carriers, and telephone
companies offering comparable video programming services. Of
the total number of MVPD subscribers in the United States, 34
million households (or 33.6 percent) are satellite customers.
Again according to the 15th Video Competition Report, DIRECTV
is the largest DBS provider and the second largest MVPD, with
approximately 19.9 million subscribers. Dish Network is the
second largest DBS provider and the third largest MVPD, with
approximately 14.1 million subscribers.
Where satellite carriers offer their subscribers access to
local broadcast television signals, they have been more
successful in competing with terrestrial-based MVPDs. The
licensing and regulatory regime that enables satellite
operators to retransmit broadcast signals to subscribers has
developed through a series of laws, of which the Satellite
Television Extension and Localism Act (STELA), passed by
Congress in 2010, was the latest.
Satellite Home Viewer Act (SHVA)
Starting in the 1960s, the cable industry began to offer
broadcast programming to its customers without paying broadcast
television stations copyright royalties. To address this issue,
Congress passed the Copyright Revision Act of 1976 (Copyright
Act), which made cable provider retransmission of broadcast
signals without a license a copyright violation. It also
established a compulsory copyright license and statutory
royalty regime to facilitate the retransmission of broadcast
programming.
In 1988, Congress passed SHVA, creating a similar
compulsory copyright license in section 119 of the Copyright
Act for satellite carriers. A significant difference was that
the section 119 license allowed satellite carriers to
retransmit broadcast network and superstation (e.g., WGN)
programming only to those households unable to receive viewable
signals using over-the-air antennas (so-called ``unserved
households''). The reason for this limitation was to preserve
``localism'' and to prevent non-local or ``distant'' signals
from taking viewers away from local broadcast television
stations that provide community-focused programming such as
local news and weather. SHVA established a 6-year compulsory
copyright license, under which a satellite carrier may
retransmit distant network signals to unserved households
without obtaining permission directly from the copyright
owners. It also established a government-set copyright royalty
to be paid by such carrier to reimburse the copyright holders.
SHVA also established the ``Grade B contour'' around a
broadcast tower as the determining factor as to whether a
particular household was eligible to receive distant signals
from a satellite operator. The Grade B contour of a station
represented a prediction of the reach and coverage of a
station's analog broadcast signal over average terrain in the
absence of interference from other television stations.
Individuals living inside a Grade B contour were not allowed to
receive distant signals, while those outside the contour were
eligible for those signals.
Following the passage of SHVA, some satellite carriers
began to offer distant signals to served as well as unserved
households. Network broadcasters brought suit against one
satellite carrier, Primetime 24, asserting that it willfully
violated SHVA by providing distant network signals to
households that did not meet the definition of ``unserved.'' In
1998, the court found for the broadcasters and issued a
permanent injunction prohibiting Primetime 24 from using the
section 119 license to offer distant network signals. The
injunction was to take effect in stages the following year and
would have resulted in over 2 million subscribers who were
illegally receiving the signals losing access to distant
network signals. While this service was terminated for some
subscribers, the parties agreed to postpone the termination of
service for the remaining subscribers until the end of 1999.
Satellite Home Viewer Improvement Act (SHVIA)
By the end of 1999, Congress had passed SHVIA. SHVIA
extended the compulsory license regime of SHVA for an
additional five years and grandfathered certain customers who
were illegally receiving distant signals prior to its passage.
SHVIA also established a ``waiver process'' under which
consumers in an unserved market who cannot receive local
broadcast stations over-the-air, despite residing within a
Grade B contour, may seek a waiver to receive distant signals
from their satellite carrier.
A significant change in SHVIA was the creation of a new,
permanent, and free compulsory copyright license in section 122
of the Copyright Act. The section 122 license permits satellite
carriers to retransmit local broadcast signals back into the
same local market from which they originated (known as ``local-
into-local service''). The local market was defined by
reference to the Nielsen Designated Market Area (DMA). This
provision was intended to increase competition between
satellite and cable operators, who previously were the only pay
TV services able to provide consumers with access to their
local broadcast television stations. Congress determined that
over-the-air television would not be adversely impacted by the
new license and that advertising revenue would increase because
more viewers would have access to local stations.
Under section 122 (and related provisions in the
Communications Act), satellite carriers are not required to
provide local-into-local service to subscribers within a DMA.
If an operator decides to provide local programming in a
market, though, it is required to carry all the local broadcast
stations in the market. This so-called ``carry one, carry all''
provision, which is codified in section 338 of the
Communications Act, has an exception for certain duplicative
stations and requires the broadcaster seeking carriage to
provide a good quality signal.
Generally, under section 325 of the Communications Act,
cable and satellite carriers are prohibited (with some
exceptions) from retransmitting the signal of a broadcast
television station without the express authority of that
station. In SHVIA, Congress exempted a satellite carrier from
having to obtain retransmission consent with respect solely to
distant network signals for five years. Satellite carriers,
however, still must comply with other FCC rules and
regulations, including the network non-duplication rule, the
syndicated exclusivity rule, and, to the extent feasible, the
sports blackout rule. Finally, SHVIA instituted the rule that
broadcasters must engage in ``good faith'' negotiations to come
to a retransmission consent agreement (a duty later extended
equally to MVPDs in retransmission consent negotiations).
Satellite Home Viewer Extension and Reauthorization Act (SHVERA)
Five years later, driven by the expiration of the
compulsory copyright licenses in section 119 of the Copyright
Act and the retransmission consent exemption in section 325 of
the Communications Act, Congress passed SHVERA, which was
enacted on December 8, 2004. In addition to extending the
distant signal license and the retransmission consent exemption
for distant signals until December 31, 2009, SHVERA
acknowledged that stations were starting to transition to
digital broadcasting. In particular, Congress directed the FCC
to study and report on a digital signal strength standard as
well as testing procedures for digital over-the-air broadcast
television signals (meant eventually to replace the standards
and procedures for analog over-the-air signals).
SHVERA also established a regime for the delivery of
certain ``significantly viewed'' signals to consumers living in
a DMA adjacent to the DMA from which a signal originated.
``Significantly viewed'' means a TV station has a significant
level of viewers in an area outside of the station's local
market. Being designated as ``significantly viewed'' gives a
station the right to seek carriage by pay TV providers in an
area outside of its home market without violating another
station's market exclusivity rights. The FCC maintains a list
of significantly viewed stations. Stations may be added to or
removed from that list on a community-by-community basis. Under
SHVIA, broadcast signals originating from neighboring DMAs
would not be considered local even if members of a community
could view them over the air. SHVERA created a copyright
license that gives satellite carriers the option to offer
subscribers signals from an adjacent DMA, if they live in a
community that meets the ``significantly viewed'' definition.
SHVERA also granted satellite carriers retransmission rights
for such ``significantly viewed'' signals.
In addition, SHVERA sought to rationalize a patchwork of
local and distant network signal services that grew as
satellite carriers offered local-into-local service in more
markets. It did so by establishing a framework for when
subscribers were eligible to receive distant versus local
signals. For example, in areas where local signals were
offered, certain subscribers who illegally received distant
signals prior to SHVIA had to elect whether to receive local or
distant network signals. They could no longer receive both. In
comparison, with limited exceptions, new customers in markets
where local-into-local service is offered may only receive
local signals. In effect, SHVERA formalized what is commonly
known as the ``if local, no distant'' rule - namely that a DBS
subscriber who has available local-into-local service pursuant
to the Communications and Copyright Acts is not eligible to
receive distant signals.
On June 12, 2009, the nation's full power television
stations ceased analog broadcasts and began broadcasting only
digital signals. This shift necessitated a series of amendments
to the Communications Act to both remove references to analog
broadcast television signals and to ensure that the FCC
adjusted its rules related to the retransmission of digital
broadcast signals in a timely manner. The shift to digital
broadcasting also informed Congress's development of its SHVERA
reauthorization legislation.
Satellite Television Extension and Localism Act (STELA)
After a series of short-term extensions to SHVERA, Congress
passed STELA on May 12, 2010. STELA extended both the
compulsory copyright license in section 119 of the Copyright
Act and the expiring elements of section 325 (the exemption
from retransmission consent for distant signals and the good
faith requirement for retransmission consent negotiations) of
the Communications Act until December 31, 2014.
STELA also made various updates to existing law to reflect
the transition of full-power television stations from analog to
digital broadcasts. It directed the FCC to update its testing
models to determine which subscribers are eligible for distant
signals, including giving the FCC the flexibility to alter the
antenna standard used in its testing model (in the past, the
FCC was required to base the model on the presumed use of a 30-
foot outdoor antenna by consumers). It also created new
incentives for satellite TV providers to enhance consumer
access to public television programming. Finally, STELA updated
certain exceptions to the ``if local, no distant'' principle.
STELA also rationalized several other aspects of copyright
law. Specifically, STELA altered the definition of unserved
household to protect multicast channels transmitting network
programming in a local market from duplication by a distant
signal, as well as assisting satellite TV providers to import a
distant signal into ``short markets'' where they are otherwise
providing local-into-local service. Short markets are DMAs that
lack one or more local TV network affiliates. STELA permits a
DBS provider to import a distant signal to fill in for the
missing local affiliate. It also resolved issues surrounding
situations where a signal ``bleeds over'' from an adjacent
market and prevents some consumers from receiving broadcast
signals to which they would otherwise be entitled. Finally,
STELA revised the carriage rules for significantly viewed
signals to enhance access to those signals on satellite pay TV
systems.
Separately, STELA addressed an issue pertaining to the
ability of DISH Network to provide distant network television
signals under the section 119 copyright license. In 2003, DISH
Network was permanently enjoined from utilizing the section 119
license due to failures to comply with the restrictions on
delivery of those signals only to eligible consumers. That
injunction was later upheld on appeal. STELA created a process
through which DISH Network could resume service under the
section 119 license (vitiating the injunction). That process
required DISH Network to deliver local-into-local service in
all 210 DMAs. DISH Network began to offer that service not long
after STELA's passage, and presently is permitted once again to
provide distant signals under the section 119 license.
Finally, STELA included additional provisions designed to
enhance access to local TV programming on satellite systems.
First, STELA instructed the FCC to conduct a study of the
current DMA system, including the extent to which consumers in
each local market have access to in-State broadcast
programming. Second, STELA directed satellite carriers to
submit annual local network channel broadcast reports and study
what incentives would induce satellite carriers to provide
local service to every market in the country. Third, STELA
required the Comptroller General to prepare a report on the
changes to communications laws and regulations that would be
necessary or beneficial to consumers should Congress phase-out
the statutory licensing requirements set forth under sections
111, 119, and 122 of the Copyright Act.
Summary of Provisions
S. 2799, STAVRA, would amend the Communications Act to
extend for five years various provisions set to expire at the
end of 2014. Specifically, retransmission of distant television
broadcast network signals would continue to be exempt from the
retransmission consent process. In addition, STAVRA would renew
the reciprocal obligation for both MVPDs and broadcast
television stations to negotiate retransmission consent in good
faith. Finally, STAVRA would continue to ban broadcast
television stations from granting exclusive retransmission
consent rights to an MVPD.
STAVRA also proposes a number of changes to video policy
under the Communications Act. First, STAVRA would create a
television market modification process for satellite carriers
similar to the one already used for cable operators and
governed by the FCC under section 614(h) of the Communications
Act. Second, it would bar the practice of joint retransmission
consent negotiations by independent broadcast television
stations in the same market, prohibit the use of retransmission
consent agreements to limit the ability of an MVPD to carry
other broadcast television signals they are otherwise
authorized to carry under the Communications Act (such as
importing significantly viewed TV signals, distant signals, or
signals added to a TV market through the market modification
process), and direct the FCC to consider additional changes to
its rules that govern retransmission consent negotiations as
part of a rulemaking to update its totality of the
circumstances test for good faith. Third, STAVRA proposes to
provide additional transparency on how retransmission consent
costs affect cable rates as part of the FCC's yearly cable
rates report. Fourth, STAVRA would sunset the FCC's existing
``integration ban'' related to set-top boxes rented from a
cable operator two years after STAVRA's passage, while
establishing a working group overseen by the FCC to consider
technical standards for a next-generation set-top box security
architecture meant to help foster increased retail set-top box
competition. Fifth, STAVRA would direct the FCC to consider
changes to the administrative rules for the filing of petitions
to prove effective competition by small cable companies, while
preserving the obligation of the cable company to actually
prove that such competition exists. Finally, STAVRA would
require the FCC to produce a report on the current DMA system
and alternatives to such system, including examination of local
programming in States that are served entirely by DMAs which
are not principally located in such State.
Legislative History
In the 113th Congress, the Satellite Television Access and
Viewer Rights Act (S. 2799) was introduced by Senator
Rockefeller on September 11, 2014, and referred to the Senate
Committee on Commerce, Science, and Transportation. The bill is
co-sponsored by Senator Thune. On April 1, 2014, the
Committee's Subcommittee on Communications, Technology, and the
Internet held a hearing on ``Reauthorization of the Satellite
Television Extension and Localism Act.''
On September 17, 2014, the Committee considered the bill,
as amended in the nature of a substitute, in an open Executive
Session. Senator Pryor offered an amendment to require the FCC
to make information about the market modification process
available to consumers on its website. Senator Booker, on
behalf of himself and Senator Fischer, offered an amendment to
require a report by the FCC on designated market areas. Senator
Pryor's and Senator Booker's amendments were adopted, as
modified, by unanimous consent. The Committee, without
objection, ordered that S. 2799, as amended, be reported.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 2799--Satellite Television Access and Viewer Rights Act
Summary: Under current law, satellite carriers pay royalty
fees for the right to transmit certain television signals to
their subscribers without obtaining permission from copyright
holders. S. 2799 would extend provisions of current law that
allow satellite carriers to transmit copyrighted material but
would not extend the license that allows transmission without
specific authorization from the copyright holders. That license
will expire on December 31, 2014. The bill also would direct
the Federal Communications Commission (FCC) to amend certain
regulations affecting television stations and cable and
satellite carriers.
Implementing S. 2799 would have a negligible net effect on
discretionary spending over the 2015-2019 period, CBO
estimates. Enacting S. 2799 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
S. 2799 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. S. 2799
contains private-sector mandates, as defined in UMRA, on
television broadcasters, cable operators, and satellite
carriers. CBO estimates that the aggregate cost of the mandates
in the bill would fall below the annual threshold established
in UMRA for private-sector mandates ($152 million in 2014,
adjusted annually for inflation).
Estimated cost to the Federal Government: Based on
information from the FCC, CBO estimates that implementing S.
2799 would cost about $2 million over the 2015-2019 period for
the required reports and regulatory actions, assuming the
availability of appropriated funds. Further, the FCC is
authorized to collect fees to offset its operating costs each
year; therefore, we estimate that implementing S. 2799 would
have a negligible effect on net discretionary spending each
year.
Pay-As-You-Go considerations: None.
Intergovernmental and private-sector impact: S. 2799
contains no intergovernmental mandates as defined in UMRA and
would not affect the budgets of state, local, or tribal
governments.
S. 2799 contains private-sector mandates, as defined in
UMRA, on television broadcasters, cable operators, and
satellite carriers. It would extend existing mandates and
impose new ones related to the retransmission of broadcast
programs. The cost of complying with those mandates would be
any net income forgone. Based on information from the FCC and
industry sources, CBO estimates that the aggregate cost of the
mandates in the bill would fall below the annual threshold
established in UMRA for private-sector mandates ($152 million
in 2014, adjusted annually for inflation).
The bill would extend for five years three existing
mandates related to the retransmission of broadcast programs.
It would extend the mandate on television broadcasters that
prohibits them from receiving compensation from satellite
carriers for retransmitting distant (non-local) network signals
to subscribers who cannot receive the signals of local network
affiliates. Second, it would extend the mandate on television
broadcasters that prohibits them from entering into certain
exclusive contracts for the rights to carry (retransmit) their
programs. The bill also would extend the mandate on
broadcasters, cable operators, and satellite carriers that
requires them to negotiate retransmission agreements in good
faith. Based on information from industry sources, CBO
estimates that the cost of extending those mandates would be
small.
The bill would impose two additional mandates related to
negotiating agreements for retransmitting broadcast programs.
It would prohibit television broadcasters from engaging in
coordinated or joint negotiations with other television
broadcasters in the same local market for the retransmission of
their broadcast programs. The prohibition would not apply to
broadcast stations in the same market under common control.
Current law prohibits such joint negotiations among the top
four stations in a local market. According to industry sources,
the broader ban in the bill would affect only a small number of
stations, and would be unlikely to have a large cost. The bill
also would prohibit local broadcasters from using
retransmission agreements to limit the ability of cable
operators or satellite carriers to retransmit other broadcast
signals they are authorized to carry. The existing standards
for good faith negotiations tend to discourage such behavior
and industry experts find limited evidence of such practices.
Therefore, CBO estimates that the cost of this mandate would be
small.
Previous CBO estimates: On June 3, 2014, CBO transmitted a
cost estimate for H.R. 4572, the STELA Reauthorization Act of
2014, as ordered reported by the House Committee on Energy and
Commerce on May 9, 2014. H.R. 4572 would extend provisions of
current law that allow satellite carriers to transmit
copyrighted material but would not extend the license that
allows such transmission without permission from the copyright
holders. CBO estimated that implementing H.R. 4572 would cost
about $1 million over the 2015-2019 period, assuming
appropriation of the necessary amounts, for reports and
regulatory actions by the Federal Communications Commission.
On July 17, 2014, CBO transmitted a cost estimate for H.R.
5036, the Satellite Television Access Reauthorization Act of
2014, as ordered reported by the House Committee on the
Judiciary on July 10, 2014. H.R. 5036 would extend the
statutory license that allows transmission of television
signals that are copyrighted without first obtaining permission
from the copyright holder. CBO estimated that implementing H.R.
5036 would have an insignificant effect on the federal budget.
On July 3, 2014, CBO transmitted a cost estimate for S.
2454, the Satellite Television Reauthorization Act of 2014, as
ordered reported by the Senate Committee on the Judiciary on
June 26, 2014. S. 2454 would extend the statutory license that
allows transmission of television signals that are copyrighted
without first obtaining permission from the copyright holder.
CBO estimated that implementing S. 2454 would have an
insignificant effect on the federal budget.
Estimate prepared by: Federal costs: Susan Willie; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Tristan Hanon.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
S. 2799 would reauthorize and amend certain provisions of
the Communications Act that govern satellite retransmission of
television broadcast signals. It also would amend various
existing statutes and rules governing existing video policy.
The bill would affect broadcasters and multichannel video
programming distributors (e.g. cable and satellite operators)
already subject to these obligations under the Communication
Act, and, therefore, the number of persons covered should be
consistent with the current levels of individuals impacted
under the provisions that are addressed in the bill.
economic impact
S. 2799 would not have an adverse impact on the Nation's
economy.
privacy
The reported bill would have no impact on the personal
privacy of U.S. citizens.
paperwork
The reported bill would not significantly increase
paperwork requirements for individuals and businesses.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title.
Section 1 would provide that the legislation may be cited
as the ``Satellite Television Access and Viewer Rights Act.''
Section 2. References to Communications Act of 1934.
Section 2 would provide that wherever in STAVRA an
amendment or repeal is expressed as an amendment to, or repeal
of, a section, that reference shall be considered to be made to
a section or other provision of the Communications Act.
Title I. Satellite television.
Section 101. Extension of authority.
Section 101 of the bill would amend section 325(b) of the
Communications Act to extend for five years the statutory
provision that permits a satellite carrier to retransmit,
without first having to obtain consent, the signal of a distant
network station to certain unserved households. The section
also would extend the provisions in the Communications Act
requiring that retransmission consent negotiations be in good
faith and prohibiting exclusive carriage deals by local
broadcast television stations.
Section 102. Modification of television markets to further consumer
access to relevant television programming.
Section 102(a) of the bill would amend section 338 of the
Communications Act to create a television market modification
process for satellite carriers. It would add to section 338 a
definition of designated market area (defined as the DMAs
determined by Nielsen Media Research) and local market (which
is a television broadcast station's DMA and includes any
modifications made to a commercial television broadcast
station's market under the market modification process).
Section 102(a) of the bill would then add a new subsection
(l) to section 338 of the Communications Act. This new
subsection would create a written petition process whereby the
FCC could modify the local market of a commercial television
broadcast station for purposes of carriage by a satellite
carrier. Such petitions could be used to add or subtract
communities from the local market of a commercial television
broadcast station. As part of the review of a market
modification request, the FCC may determine that a community is
part of more than one local market. The FCC must grant or deny
a modification request within 120 days of its filing.
The Committee intends that the process established by the
FCC under the authority granted by section 102(a) of the bill
should be modeled upon the television market modification
process established by the FCC under section 614(h). In judging
the merits of a petition filed under new section 338(l), the
FCC must afford particular attention to the value of localism.
In so doing, it must consider the following factors: (1)
whether the television station, or others in the same area,
have historically been carried on the cable or satellite pay TV
providers serving such community; (2) whether the television
station provides coverage or other local service to such
community; (3) whether modifying the local market of the
television station would promote consumers' access to
television broadcast station signals that originate in their
State of residence; (4) whether any other television station
eligible to be carried by a satellite carrier in such community
provides news coverage of issues of concern to that community
or provides coverage of sports or other events of interest to
the community; and (5) evidence of viewing patterns in
households that do and do not subscribe to MVPD services in
that community.
The Committee is aware that many consumers, particularly
those who reside in DMAs that cross State lines or cover vast
geographic distances, have expressed concerns that they lack
access to local television programming that is relevant to
their everyday lives. The Committee intends that the FCC should
consider the plight of these consumers when judging the merits
of a petition filed under the process created by this
subsection (as well as a petition filed using the process
already in place for cable operators under section 614(h)) of
the Communications Act, even if granting such modification
would pose an economic challenge to various local television
broadcast stations.
The Committee also is aware that local television market
determinations in Alaska, particularly with respect to the
white spaces in that State presently unassigned to a specific
DMA, pose their own unique challenges. The Committee does not
intend for this subsection to displace the present system for
assigning such areas in Alaska to DMAs pursuant to section 119
of title 17, United States Code.
A market determination under section 102(a) of the bill
shall not create additional carriage obligations for a
satellite carrier if it is not technically and economically
feasible for such carrier to accomplish that carriage by means
of its satellites in operation at the time the petition was
filed. Additionally, a satellite carrier may not delete from
carriage the signal of a commercial television broadcast
station during the pendency of a proceeding under subsection
338(l). The Committee recognizes that there are technical and
operational differences that may make a particular television
market modification difficult for a satellite carrier to
effectuate; the Committee believes, though, that claims of the
existence of such difficulties should be well substantiated and
carefully examined by the FCC as part of the petition
consideration process. The Committee also intends that a
petitioner may refile its petition if at a later time a
satellite carrier has deployed new satellites that could change
this feasibility determination.
Finally, a market modification under new section 338(l) of
the Communications Act shall not have any effect on the
eligibility of households in the community affected by such
modification to receive distant signals pursuant to section 339
of the Communications Act.
Section 102(b) of the bill would make several conforming
amendments to section 614(h) of the Communications Act, which
governs television market modifications for cable operators.
Section 102(c) of the bill would direct the FCC, as part of
its rulemaking to implement section 102, to make sure that the
procedures for the filing and consideration of a written market
modification request fully effectuate the purposes of the
amendments made by section 102. Additionally, as part of that
rulemaking, the FCC shall update what it considers to be a
community for purposes of the filing of a television market
modification petition. The Committee intends for the FCC, when
examining what it considers to be a community, to consider
alternative definitions for community that could make the
market modification process more effective and useful.
Section 102(d) of the bill would require the FCC to make
information available to consumers on its website regarding the
television market modification processes under sections 338 and
614(h) of the Communications Act. The information posted on the
FCC's website must include details on who may petition for a
television market modification and the factors that the FCC
considers when reviewing such petition.
Title II. Video policy reforms.
Section 201. Consumer protections in retransmission consent.
Section 201(a) of the bill would amend section 325(b) of
the Communications Act to bar television broadcast stations in
the same local market from coordinating negotiations for
retransmission consent, or negotiating retransmission consent
on a joint basis, unless such stations are directly or
indirectly under common de jure control permitted under the
FCC's regulations. The Committee intends that stations who are
considered under ``de facto'' control of another station owner
under the FCC's regulations, such as those situations where
ownership of a station is attributed to another due to the use
of joint sales agreements, local marketing agreements, or other
sharing agreements, do not fall within the scope of the
exception set forth in section 201(a) and section 201(b) for
stations under ``common de jure control.''
In addition, the Committee intends that the exception for
stations under ``common de jure control'' when ``permitted
under the regulations of the FCC,'' should ensure that only
those stations in compliance with the Commission's ownership
rules may negotiate jointly for retransmission consent. For
example, if two or more stations are considered commonly owned
under the attribution rules but such common ownership violates
the FCC's ownership rules such that the arrangement must be
ended unless the FCC grants a waiver of its rules, it is the
intent of the Committee that neither of those stations should
be permitted by section 201(a) to negotiate jointly for
retransmission consent, or utilize the exception set forth in
section 201(b), even if the FCC has granted a temporary
transition period for such combinations to come into compliance
with its rules.
Section 201(b) of the bill would further amend section
325(b) of the Communications Act to prohibit a television
broadcast station, in its local market, from limiting the
ability of an MVPD to carry a television signal that has been
deemed significantly viewed under the FCC's rules, or any other
television broadcast signal that such MVPD is authorized to
carry under sections 338, 339, 340, and 614 of the
Communications Act. This prohibition does not apply to stations
that are directly or indirectly under common de jure control
permitted under the FCC's regulations. The Committee intends
this provision to be interpreted broadly by the FCC to ensure
that a television broadcast station is not able to limit MVPD
carriage of signals that it is permitted to carry pursuant to
the Communications Act. The Committee does not intend, though,
for this provision to alter, expand, or otherwise change what
broadcast television station signals a satellite carrier or
cable operator is permitted to carry under the Communications
Act.
Section 201(c) of the bill would direct the FCC to conduct
a rulemaking to review and update its totality of the
circumstances test for good faith negotiations under section
325(b) of the Communications Act. Specifically, the FCC shall
make sure that its test encourages both parties to a
retransmission consent negotiation to present bona fide
proposals on the material terms of a retransmission consent
agreement during negotiations and engage in timely negotiations
to reach an agreement.
The Committee intends that the rulemaking directed by
section 201(c) of the bill should be used to update the FCC's
totality of the circumstances test so that the test will take a
broad look at all facets of how both television broadcast
station owners and MVPDs approach retransmission consent
negotiations to make sure that the tactics engaged in by both
parties meet the good faith standard set forth in the
Communications Act. Evidence collected by the Committee
suggests that the negotiations surrounding retransmission
consent have become significantly more complex in recent years,
and that in some cases one or both parties to a negotiation may
be engaging in tactics that push those negotiations toward a
breakdown and result in consumer harm from programming
blackouts. The Committee expects the FCC's totality of the
circumstances test to include a robust examination of
negotiating practices, including whether certain substantive
terms offered by a party may increase the likelihood of the
negotiations breaking down. The Committee also expects that the
test should examine the practices engaged in by both parties if
negotiations have broken down and a retransmission consent
agreement has expired.
The Committee believes that it may be appropriate for the
FCC to provide additional specific guidance as to actions that,
taken as a whole, evidence bad faith based on the totality of
the circumstances. Such guidance would help provide more
certainty to the parties to a negotiation and ultimately give
consumers greater faith in the retransmission consent process.
The Committee also expects as part of this rulemaking that
the FCC would examine the role digital rights and online video
programming have begun to play in retransmission consent
negotiations. The Committee is concerned by reports that
parties in retransmission consent negotiations have begun to
block access to online programming during those negotiations or
after a retransmission consent agreement has expired and a
blackout has occurred, including for consumers of a MVPD who
subscribe only to the broadband service offered by such MVPD.
Finally, the Committee intends, as part of this rulemaking, for
the FCC to examine whether its current process for filing bad
faith allegations based on the totality of the circumstances
test is effective and actually helps to promote bona fide
negotiations and protect consumers.
Section 202. Update to cable rates report.
Section 202 of the bill would amend section 623(k) of the
Communications Act to include in the FCC's yearly cable rates
report specific information about the aggregate average total
amount paid by cable systems in compensation to television
broadcast stations under section 325 of the Communications Act.
This information shall be published in a manner substantially
similar to the way other information, such as monthly prices
for basic cable service and other cable programming, is
published in the FCC's annual report.
All signals carried under section 325 are required by law
to be included on a cable system's basic service tier. Further,
all cable subscribers are required by law to purchase the basic
service tier. For these reasons, the Committee finds that
including information regarding compensation under section 325
in the FCC's annual cable rates report is important for
consumers, policymakers, and industry participants.
The Committee intends that information included under
section 202 show how compensation under section 325 has changed
or may change over time. In implementing section 202 and
thereafter, the Committee therefore intends that the FCC
include compensation under section 325 for as many prior
periods as it determines such information is attainable without
unnecessary burden.
Section 203. Competitive device availability.
Section 203(a) of the bill would provide that the second
sentence of section 76.1204(a)(1) of title 47 of the Code of
Federal Regulations (commonly referred to as the cable set-top
box integration ban) would terminate effective two years from
the date of STAVRA's enactment. Not later than 180 days after
that date, the FCC must revise its regulations to strike that
sentence from its rules and make any necessary conforming
amendments to its rules. The Committee intends that nothing in
section 203(a) shall affect in any way the underlying authority
held by the FCC under section 629 of the Communications Act to
take steps to promote a competitive retail set-top box
marketplace.
Section 203(b) of the bill would direct the FCC to convene
a working group of technical experts from a variety of
stakeholders to identify, report, and recommend performance and
technical standards for a software-based downloadable security
system in order to promote the competitive availability of set-
top boxes, including boxes from third parties available at
retail. Such system must be not unduly burdensome, uniform, and
technology- and platform-neutral. The working group must hold
its initial meeting within 180 days of STAVRA's enactment, and
file a report on its work with the FCC within 540 days of
STAVRA's enactment. The Chairman of the FCC may appoint a FCC
staff member to moderate and direct the work of the working
group and provide technical assistance to the working group's
members.
Section 204. Administrative reforms to effective competition petitions.
Section 204 of the bill would amend section 623 of the
Communications Act to direct the FCC to complete a rulemaking
within 180 days of the enactment of STAVRA to establish a
streamlined process for small cable operators, particularly
those who serve primarily rural areas, to file petitions for
effective competition under that section. Nothing in section
204, however, shall be construed to have any effect on the
obligation of small cable operators filing petitions to prove
the existence of effective competition pursuant to section 623
of the Communications Act.
Section 205. Report on designated market areas.
Section 205 of the bill would direct the FCC, within 18
months of the enactment of STAVRA, to submit a report to
various named congressional committees on DMAs. That report
must include an analysis of (1) the extent to which consumers
have access to programming from television broadcast stations
located outside their local television market; (2) whether
there are alternatives to the DMA system that would provide
consumers with more local programming options; and (3) the
impact such alternatives to the DMA system could have on
localism, as well as broadcast television locally, regionally,
and nationally.
The report also must contain recommendations on how to
foster increased localism in counties served by out-of-State
DMAs. In making these recommendations, the FCC must consider
(1) the impact DMAs that cross State lines have on access to
local programming; (2) the impact DMAs have on local
programming in rural areas; and (3) the state of local
programming in States served exclusively by out-of-State DMAs.
The Committee intends that the FCC's report will interpret
local programming to include not only television programming
(in particular news, sports, weather, and other programming
containing content relevant to a consumer's daily life)
originating from and about the DMA in which a consumer resides,
but also television programming originating from and about the
State in which a consumer resides. The Committee also intends
that the analysis concerning alternatives to the DMA system
should explore in detail the merits and advantages to those
alternatives to consumers, and not just the impact those
alternatives may have on broadcast television.
Title III. Miscellaneous.
Section 301. Implementation.
Section 301 of the bill would direct the FCC to prescribe
regulations to implement the requirements of this Act, or any
amendments made by this Act, within 270 days of its enactment,
except as otherwise expressly provided in this Act.
Section 302. Severability.
Section 302 of the bill would provide that if any provision
or application of a provision is held unconstitutional, the
remainder of this Act, the amendments made by the Act, and the
application of such provisions shall not be affected thereby.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, 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
material is printed in italic, existing law in which no change
is proposed is shown in roman):
COMMUNICATIONS ACT OF 1934
[47 U.S.C. 151 et seq.]
SEC. 325. FALSE, FRAUDULENT, OR UNAUTHORIZED TRANSMISSIONS.
[47 U.S.C. 325]
(a) False Distress Signals; Rebroadcasting Programs.--No
person within the jurisdiction of the United States shall
knowingly utter or transmit, or cause to be uttered or
transmitted, any false or fraudulent signal of distress, or
communication relating thereto, nor shall any broadcasting
station rebroadcast the program or any part thereof of another
broadcasting station without the express authority of the
originating station.
(b) Consent to Retransmission of Broadcasting Station
Signals.--
(1) No cable system or other multichannel video
programming distributor shall retransmit the signal of
a broadcasting station, or any part thereof, except--
(A) with the express authority of the
originating station;
(B) under section 614, in the case of a
station electing, in accordance with this
subsection, to assert the right to carriage
under such section; or
(C) under section 338, in the case of a
station electing, in accordance with this
subsection, to assert the right to carriage
under such section.
(2) This subsection shall not apply--
(A) to retransmission of the signal of a
noncommercial television broadcast station;
(B) to retransmission of the signal of a
television broadcast station outside the
station's local market by a satellite carrier
directly to its subscribers, if--
(i) such station was a superstation
on May 1, 1991;
(ii) as of July 1, 1998, such station
was retransmitted by a satellite
carrier under the statutory license of
section 119 of title 17, United States
Code; and
(iii) the satellite carrier complies
with any network nonduplication,
syndicated exclusivity, and sports
blackout rules adopted by the
Commission under section 339(b) of this
Act;
(C) until [December 31, 2014] December 31,
2019, to retransmission of the signals of
network stations directly to a home satellite
antenna, if the subscriber receiving the
signal--
(i) is located in an area outside the
local market of such stations; and
(ii) resides in an unserved
household;
(D) to retransmission by a cable operator or
other multichannel video provider, other than a
satellite carrier, of the signal of a
television broadcast station outside the
station's local market if such signal was
obtained from a satellite carrier and--
(i) the originating station was a
superstation on May 1, 1991; and
(ii) as of July 1, 1998, such station
was retransmitted by a satellite
carrier under the statutory license of
section 119 of title 17, United States
Code; or
(E) during the 6-month period beginning on
the date of the enactment of the Satellite Home
Viewer Improvement Act of 1999, to the
retransmission of the signal of a television
broadcast station within the station's local
market by a satellite carrier directly to its
subscribers under the statutory license of
section 122 of title 17, United States Code.
For purposes of this paragraph, the terms ``satellite carrier''
and ``superstation'' have the meanings given those terms,
respectively, in section 119(d) of title 17, United States
Code, as in effect on the date of the enactment of the Cable
Television Consumer Protection and Competition Act of 1992, the
term ``unserved household'' has the meaning given that term
under section 119(d) of such title, and the term ``local
market'' has the meaning given that term in section 122(j) of
such title.
(3)
(A) Within 45 days after the date of
enactment of the Cable Television Consumer
Protection and Competition Act of 1992, the
Commission shall commence a rulemaking
proceeding to establish regulations to govern
the exercise by television broadcast stations
of the right to grant retransmission consent
under this subsection and of the right to
signal carriage under section 614, and such
other regulations as are necessary to
administer the limitations contained in
paragraph (2). The Commission shall consider in
such proceeding the impact that the grant of
retransmission consent by television stations
may have on the rates for the basic service
tier and shall ensure that the regulations
prescribed under this subsection do not
conflict with the Commission's obligation under
section 623(b)(1) to ensure that the rates for
the basic service tier are reasonable. Such
rulemaking proceeding shall be completed within
180 days after the date of enactment of the
Cable Television Consumer Protection and
Competition Act of 1992.
(B) The regulations required by subparagraph
(A) shall require that television stations,
within one year after the date of enactment of
the Cable Television Consumer Protection and
Competition Act of 1992 and every three years
thereafter, make an election between the right
to grant retransmission consent under this
subsection and the right to signal carriage
under section 614. If there is more than one
cable system which services the same geographic
area, a station's election shall apply to all
such cable systems.
(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) establish election time periods
that correspond with those regulations
adopted under subparagraph (B) of this
paragraph;
(ii) until [January 1, 2015] January
1, 2020, 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, 2015] January
1, 2020, 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[.];
(iv) prohibit a television broadcast
station from coordinating negotiations
or negotiating on a joint basis with
another television broadcast station in
the same local market (as defined in
section 338 of this Act) to grant
retransmission consent under this
section to a multichannel video
programming distributor, unless such
stations are directly or indirectly
under common de jure control permitted
under the regulations of the Federal
Communications Commission; and
(v) prohibit a television broadcast
station from limiting the ability of a
multichannel video programming
distributor to carry a television
signal that has been deemed
significantly viewed, within the
meaning of section 76.54 of title 47,
Code of Federal Regulations, or any
successor regulation, or any other
television broadcast signal such
distributor is authorized to carry
under section 338, 339, 340, or 614 of
this Act, into the local market of such
station, unless such stations are
directly or indirectly under common de
jure control permitted by the
Commission.
(D) Update to good faith rules.--The
Commission shall commence a rulemaking to
review and update its totality of the
circumstances test for good faith negotiations.
As part of that rulemaking, the Commission
shall ensure that such test encourages parties
to a retransmission consent negotiation to
present bona fide proposals on the material
terms of a retransmission consent agreement
during negotiations and engage in timely
negotiations to reach an agreement.
(4) If an originating television station elects under
paragraph (3)(B) to exercise its right to grant
retransmission consent under this subsection with
respect to a cable system, the provisions of section
614 shall not apply to the carriage of the signal of
such station by such cable system. If an originating
television station elects under paragraph (3)(C) to
exercise its right to grant retransmission consent
under this subsection with respect to a satellite
carrier, section 338 shall not apply to the carriage of
the signal of such station by such satellite carrier.
(5) The exercise by a television broadcast station of
the right to grant retransmission consent under this
subsection shall not interfere with or supersede the
rights under section 338, 614, or 615 of any station
electing to assert the right to signal carriage under
that section.
(6) Nothing in this section shall be construed as
modifying the compulsory copyright license established
in section 111 of title 17, United States Code, or as
affecting existing or future video programming
licensing agreements between broadcasting stations and
video programmers.
(7) For purposes of this subsection, the term--
(A) ``network station'' has the meaning given
such term under section 119(d) of title 17,
United States Code; and
(B) ``television broadcast station'' means an
over-the-air commercial or noncommercial
television broadcast station licensed by the
Commission under subpart E of part 73 of title
47, Code of Federal Regulations, except that
such term does not include a low-power or
translator television station.
(c) Broadcast to Foreign Countries for Rebroadcast to United
States; Permit.--No person shall be permitted to locate, use,
or maintain a radio broadcast studio or other place or
apparatus from which or whereby sound waves are converted into
electrical energy, or mechanical or physical reproduction of
sound waves produced, and cause to be transmitted or delivered
to a radio station in a foreign country for the purpose of
being broadcast from any radio station there having a power
output of sufficient intensity and/or being so located
geographically that its emissions may be received consistently
in the United States, without first obtaining a permit from the
Commission upon proper application therefor.
(d) Application for Permit.--Such application shall contain
such information as the Commission may by regulation prescribe,
and the granting or refusal thereof shall be subject to the
requirements of section 309 hereof with respect to applications
for station licenses or renewal or modification thereof, and
the license or permission so granted shall be revocable for
false statements in the application so required or when the
Commission, after hearings, shall find its continuation no
longer in the public interest.
* * * * * * *
SEC. 338. CARRIAGE OF LOCAL TELEVISION SIGNALS BY SATELLITE CARRIERS.
[47 U.S.C. 338]
(a) Carriage obligations.
(1) In general.--Each satellite carrier providing,
under section 122 of title 17, United States Code,
secondary transmissions to subscribers located within
the local market of a television broadcast station of a
primary transmission made by that station shall carry
upon request the signals of all television broadcast
stations located within that local market, subject to
section 325(b).
(2) Remedies for failure to carry.--In addition to
the remedies available to television broadcast stations
under section 501(f) of title 17, United States Code,
the Commission may use the Commission's authority under
this Act to assure compliance with the obligations of
this subsection, but in no instance shall a Commission
enforcement proceeding be required as a predicate to
the pursuit of a remedy available under such section
501(f).
(3) Low power station carriage optional.--No low
power television station whose signals are provided
under section 119(a)(14) of title 17, United States
Code, shall be entitled to insist on carriage under
this section, regardless of whether the satellite
carrier provides secondary transmissions of the primary
transmissions of other stations in the same local
market pursuant to section 122 of such title, nor shall
any such carriage be considered in connection with the
requirements of subsection (c) of this section.
(4) Carriage of signals of local stations in certain
markets.--A satellite carrier that offers multichannel
video programming distribution service in the United
States to more than 5,000,000 subscribers shall (A)
within 1 year after the date of the enactment of the
Satellite Home Viewer Extension and Reauthorization Act
of 2004, retransmit the signals originating as analog
signals of each television broadcast station located in
any local market within a State that is not part of the
contiguous United States, and (B) within 30 months
after such date of enactment retransmit the signals
originating as digital signals of each such station.
The retransmissions of such stations shall be made
available to substantially all of the satellite
carrier's subscribers in each station's local market,
and the retransmissions of the stations in at least one
market in the State shall be made available to
substantially all of the satellite carrier's
subscribers in areas of the State that are not within a
designated market area. The cost to subscribers of such
retransmissions shall not exceed the cost of
retransmissions of local television stations in other
States. Within 1 year after the date of enactment of
that Act, the Commission shall promulgate regulations
concerning elections by television stations in such
State between mandatory carriage pursuant to this
section and retransmission consent pursuant to section
325(b), which shall take into account the schedule on
which local television stations are made available to
viewers in such State.
(5) Nondiscrimination in carriage of high definition
signals of noncommercial educational television
stations.--
(A) Existing carriage of high definition
signals.--If, before the date of enactment of
the Satellite Television Extension and Localism
Act of 2010, an eligible satellite carrier is
providing, under section 122 of title 17,
United States Code, any secondary transmissions
in high definition format to subscribers
located within the local market of a television
broadcast station of a primary transmission
made by that station, then such satellite
carrier shall carry the signals in high-
definition format of qualified noncommercial
educational television stations located within
that local market in accordance with the
following schedule:
(i) By December 31, 2010, in at least
50 percent of the markets in which such
satellite carrier provides such
secondary transmissions in high
definition format.
(ii) By December 31, 2011, in every
market in which such satellite carrier
provides such secondary transmissions
in high definition format.
(B) New initiation of service.--If, on or
after the date of enactment of the Satellite
Television Extension and Localism Act of 2010,
an eligible satellite carrier initiates the
provision, under section 122 of title 17,
United States Code, of any secondary
transmissions in high definition format to
subscribers located within the local market of
a television broadcast station of a primary
transmission made by that station, then such
satellite carrier shall carry the signals in
high-definition format of all qualified
noncommercial educational television stations
located within that local market.
(b) Good Signal Required.--
(1) Costs.--A television broadcast station asserting
its right to carriage under subsection (a) shall be
required to bear the costs associated with delivering a
good quality signal to the designated local receive
facility of the satellite carrier or to another
facility that is acceptable to at least one-half the
stations asserting the right to carriage in the local
market.
(2) Regulations.--The regulations issued under
subsection (g) shall set forth the obligations
necessary to carry out this subsection.
(c) Duplication Not Required.--
(1) Commercial stations.--Notwithstanding subsection
(a)(1), a satellite carrier shall not be required to
carry upon request the signal of any local commercial
television broadcast station that substantially
duplicates the signal of another local commercial
television broadcast station which is secondarily
transmitted by the satellite carrier within the same
local market, or to carry upon request the signals of
more than one local commercial television broadcast
station in a single local market that is affiliated
with a particular television network unless such
stations are licensed to communities in different
States.
(2) Noncommercial stations.--The Commission shall
prescribe regulations limiting the carriage
requirements under subsection (a) of satellite carriers
with respect to the carriage of multiple local
noncommercial television broadcast stations. To the
extent possible, such regulations shall provide the
same degree of carriage by satellite carriers of such
multiple stations as is provided by cable systems under
section 615.
(d) Channel Positioning.--No satellite carrier shall be
required to provide the signal of a local television broadcast
station to subscribers in that station's local market on any
particular channel number or to provide the signals in any
particular order, except that the satellite carrier shall
retransmit the signal of the local television broadcast
stations to subscribers in the stations' local market on
contiguous channels and provide access to such station's
signals at a nondiscriminatory price and in a nondiscriminatory
manner on any navigational device, on-screen program guide, or
menu.
(e) Compensation for Carriage.--A satellite carrier shall not
accept or request monetary payment or other valuable
consideration in exchange either for carriage of local
television broadcast stations in fulfillment of the
requirements of this section or for channel positioning rights
provided to such stations under this section, except that any
such station may be required to bear the costs associated with
delivering a good quality signal to the local receive facility
of the satellite carrier.
(f) Remedies.--
(1) Complaints by broadcast stations.--Whenever a
local television broadcast station believes that a
satellite carrier has failed to meet its obligations
under subsections (b) through (e) of this section, such
station shall notify the carrier, in writing, of the
alleged failure and identify its reasons for believing
that the satellite carrier failed to comply with such
obligations. The satellite carrier shall, within 30
days after such written notification, respond in
writing to such notification and comply with such
obligations or state its reasons for believing that it
is in compliance with such obligations. A local
television broadcast station that disputes a response
by a satellite carrier that it is in compliance with
such obligations may obtain review of such denial or
response by filing a complaint with the Commission.
Such complaint shall allege the manner in which such
satellite carrier has failed to meet its obligations
and the basis for such allegations.
(2) Opportunity to respond.--The Commission shall
afford the satellite carrier against which a complaint
is filed under paragraph (1) an opportunity to present
data and arguments to establish that there has been no
failure to meet its obligations under this section.
(3) Remedial actions; dismissal.--Within 120 days
after the date a complaint is filed under paragraph
(1), the Commission shall determine whether the
satellite carrier has met its obligations under
subsections (b) through (e). If the Commission
determines that the satellite carrier has failed to
meet such obligations, the Commission shall order the
satellite carrier to take appropriate remedial action.
If the Commission determines that the satellite carrier
has fully met the requirements of such subsections, the
Commission shall dismiss the complaint.
(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).
(h) Additional Notices to Subscribers, Networks, and Stations
Concerning Signal Carriage.--
(1) Notices to and elections by subscribers
concerning grandfathered signals.--Any carrier that
provides a distant signal of a network station to a
subscriber pursuant [to] section 339(a)(2)(A) shall--
(A) within 60 days after the local signal of
a network station of the same television
network is available pursuant to section 338,
or within 60 days after the date of enactment
of the Satellite Home Viewer Extension and
Reauthorization Act of 2004, whichever is
later, send a notice to the subscriber--
(i) offering to substitute the local
network signal for the duplicating
distant network signal; and
(ii) informing the subscriber that,
if the subscriber fails to respond in
60 days, the subscriber will lose the
distant network signal but will be
permitted to subscribe to the local
network signal; and
(B) if the subscriber--
(i) elects to substitute such local
network signal within such 60 days,
switch such subscriber to such local
network signal within 10 days after the
end of such 60-day period; or
(ii) fails to respond within such 60
days, terminate the distant network
signal within 10 days after the end of
such 60-day period.
(2) Notice to station licensees of commencement of
local-into-local service.--
(A) Notice required.--Within 180 days after
the date of enactment of the Satellite Home
Viewer Extension and Reauthorization Act of
2004, the Commission shall revise the
regulations under this section relating to
notice to broadcast station licensees to comply
with the requirements of this paragraph.
(B) Contents of commencement notice.--The
notice required by such regulations shall
inform each television broadcast station
licensee within any local market in which a
satellite carrier proposes to commence carriage
of signals of stations from that market, not
later than 60 days prior to the commencement of
such carriage--
(i) of the carrier's intention to
launch local-into-local service under
this section in a local market, the
identity of that local market, and the
location of the carrier's proposed
local receive facility for that local
market;
(ii) of the right of such licensee to
elect carriage under this section or
grant retransmission consent under
section 325(b);
(iii) that such licensee has 30 days
from the date of the receipt of such
notice to make such election; and
(iv) that failure to make such
election will result in the loss of the
right to demand carriage under this
section for the remainder of the 3-year
cycle of carriage under section 325.
(C) Transmission of notices.--Such
regulations shall require that each satellite
carrier shall transmit the notices required by
such regulation via certified mail to the
address for such television station licensee
listed in the consolidated database system
maintained by the Commission.
(i) Privacy Rights of Satellite Subscribers.--
(1) Notice.--At the time of entering into an
agreement to provide any satellite service or other
service to a subscriber and at least once a year
thereafter, a satellite carrier shall provide notice in
the form of a separate, written statement to such
subscriber which clearly and conspicuously informs the
subscriber of--
(A) the nature of personally identifiable
information collected or to be collected with
respect to the subscriber and the nature of the
use of such information;
(B) the nature, frequency, and purpose of any
disclosure which may be made of such
information, including an identification of the
types of persons to whom the disclosure may be
made;
(C) the period during which such information
will be maintained by the satellite carrier;
(D) the times and place at which the
subscriber may have access to such information
in accordance with paragraph (5); and
(E) the limitations provided by this section
with respect to the collection and disclosure
of information by a satellite carrier and the
right of the subscriber under paragraphs (7)
and (9) to enforce such limitations.
In the case of subscribers who have entered into such
an agreement before the effective date of this
subsection, such notice shall be provided within 180
days of such date and at least once a year thereafter.
(2) Definitions.--For purposes of this subsection,
other than paragraph (9)--
(A) the term ``personally identifiable
information'' does not include any record of
aggregate data which does not identify
particular persons;
(B) the term ``other service'' includes any
wire or radio communications service provided
using any of the facilities of a satellite
carrier that are used in the provision of
satellite service; and
(C) the term ``satellite carrier'' includes,
in addition to persons within the definition of
satellite carrier, any person who--
(i) is owned or controlled by, or
under common ownership or control with,
a satellite carrier; and
(ii) provides any wire or radio
communications service.
(3) Prohibitions.--
(A) Consent to collection.--Except as
provided in subparagraph (B), a satellite
carrier shall not use any facilities used by
the satellite carrier to collect personally
identifiable information concerning any
subscriber without the prior written or
electronic consent of the subscriber concerned.
(B) Exceptions.--A satellite carrier may use
such facilities to collect such information in
order to--
(i) obtain information necessary to
render a satellite service or other
service provided by the satellite
carrier to the subscriber; or
(ii) detect unauthorized reception of
satellite communications.
(4) Disclosure.--
(A) Consent to disclosure.--Except as
provided in subparagraph (B), a satellite
carrier shall not disclose personally
identifiable information concerning any
subscriber without the prior written or
electronic consent of the subscriber concerned
and shall take such actions as are necessary to
prevent unauthorized access to such information
by a person other than the subscriber or
satellite carrier.
(B) Exceptions.--A satellite carrier may
disclose such information if the disclosure
is--
(i) necessary to render, or conduct a
legitimate business activity related
to, a satellite service or other
service provided by the satellite
carrier to the subscriber;
(ii) subject to paragraph (9), made
pursuant to a court order authorizing
such disclosure, if the subscriber is
notified of such order by the person to
whom the order is directed;
(iii) a disclosure of the names and
addresses of subscribers to any
satellite service or other service,
if--
(I) the satellite carrier has
provided the subscriber the
opportunity to prohibit or
limit such disclosure; and
(II) the disclosure does not
reveal, directly or indirectly,
the--
(aa) extent of any
viewing or other use by
the subscriber of a
satellite service or
other service provided
by the satellite
carrier; or
(bb) the nature of
any transaction made by
the subscriber over any
facilities used by the
satellite carrier; or
(iv) to a government entity as
authorized under chapter 119, 121, or
206 of title 18, United States Code,
except that such disclosure shall not
include records revealing satellite
subscriber selection of video
programming from a satellite carrier.
(5) Access by subscriber.--A satellite subscriber
shall be provided access to all personally identifiable
information regarding that subscriber which is
collected and maintained by a satellite carrier. Such
information shall be made available to the subscriber
at reasonable times and at a convenient place
designated by such satellite carrier. A satellite
subscriber shall be provided reasonable opportunity to
correct any error in such information.
(6) Destruction of information.--A satellite carrier
shall destroy personally identifiable information if
the information is no longer necessary for the purpose
for which it was collected and there are no pending
requests or orders for access to such information under
paragraph (5) or pursuant to a court order.
(7) Penalties.--Any person aggrieved by any act of a
satellite carrier in violation of this section may
bring a civil action in a United States district court.
The court may award--
(A) actual damages but not less than
liquidated damages computed at the rate of $100
a day for each day of violation or $1,000,
whichever is higher;
(B) punitive damages; and
(C) reasonable attorneys' fees and other
litigation costs reasonably incurred.
The remedy provided by this subsection shall be in
addition to any other lawful remedy available to a
satellite subscriber.
(8) Rule of construction.--Nothing in this title
shall be construed to prohibit any State from enacting
or enforcing laws consistent with this section for the
protection of subscriber privacy.
(9) Court orders.--Except as provided in paragraph
(4)(B)(iv), a governmental entity may obtain personally
identifiable information concerning a satellite
subscriber pursuant to a court order only if, in the
court proceeding relevant to such court order--
(A) such entity offers clear and convincing
evidence that the subject of the information is
reasonably suspected of engaging in criminal
activity and that the information sought would
be material evidence in the case; and
(B) the subject of the information is
afforded the opportunity to appear and contest
such entity's claim.
(j) Regulations by Commission.--Within 1 year after the date
of the enactment of this section, the Commission shall issue
regulations implementing this section following a rulemaking
proceeding. The regulations prescribed under this section shall
include requirements on satellite carriers that are comparable
to the requirements on cable operators under sections 614(b)(3)
and (4) and 615(g)(1) and (2).
(k) Definitions.--As used in this section:
(1) Designated market area.--The term ``designated
market area'' means a designated market area as
determined by Nielsen Media Research.
[(1)](2) Distributor.--The term ``distributor'' means
an entity which contracts to distribute secondary
transmissions from a satellite carrier and, either as a
single channel or in a package with other programming,
provides the secondary transmission either directly to
individual subscribers or indirectly through other
program distribution entities.
[(2)](3) Eligible satellite carrier.--The term
``eligible satellite carrier'' means any satellite
carrier that is not a party to a carriage contract
that--
(A) governs carriage of at least 30 qualified
noncommercial educational television stations;
and
(B) is in force and effect within 150 days
after the date of enactment of the Satellite
Television Extension and Localism Act of 2010.
[(3)](4) 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.
[(4)](5) [Local market.--The term ``local market''
has the meaning given that term under section 122(j) of
title 17, United States Code.]Local market.--The term
``local market'', in the case of both commercial and
noncommercial television broadcast stations, means the
designated market area in which a television broadcast
station is located, including with respect to a
commercial television broadcast station any
modifications to such market pursuant to subsection
(l).
[(5)](6) 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)](7) Qualified noncommercial educational
television station.--The term ``qualified noncommercial
educational television station'' means any full-power
television broadcast station that--
(A) under the rules and regulations of the
Commission in effect on March 29, 1990, is
licensed by the Commission as a noncommercial
educational broadcast station and is owned and
operated by a public agency, nonprofit
foundation, nonprofit corporation, or nonprofit
association; and
(B) has as its licensee an entity that is
eligible to receive a community service grant,
or any successor grant thereto, from the
Corporation for Public Broadcasting, or any
successor organization thereto, on the basis of
the formula set forth in section 396(k)(6)(B)
of this title.
[(7)](8) Satellite carrier.--The term ``satellite
carrier'' has the meaning given such term under section
119(d) of title 17, United States Code.
[(8)](9) Secondary transmission.--The term
``secondary transmission'' has the meaning given such
term in section 119(d) of title 17, United States Code.
[(9)](10) Subscriber.--The term ``subscriber'' has
the meaning given that term under section 122(j) of
title 17, United States Code.
[(10)](11) Television broadcast station.--The term
``television broadcast station'' has the meaning given
such term in section 325(b)(7).
(l) Market Determinations.--
(1) In general.--Following a written request, the
Commission may, with respect to a particular commercial
television broadcast station, include additional
communities within its local market or exclude
communities from such station's local market to better
effectuate the purposes of this section.
(2) Considerations.--In considering requests filed
under paragraph (1), the Commission--
(A) may determine that particular communities
are part of more than one local market;
(B) shall afford particular attention to the
value of localism by taking into account such
factors as--
(i) whether the station, or other
stations located in the same area--
(I) have been historically
carried on the cable system or
systems within such community;
or
(II) have been historically
carried on the satellite
carrier or carriers serving
such community;
(ii) whether the television station
provides coverage or other local
service to such community;
(iii) whether modifying the local
market of the television station would
promote consumers' access to television
broadcast station signals that
originate in their State of residence;
(iv) whether any other television
station that is eligible to be carried
by a satellite carrier in such
community in fulfillment of the
requirements of this section provides
news coverage of issues of concern to
such community or provides carriage or
coverage of sporting and other events
of interest to the community; and
(v) evidence of viewing patterns in
households that subscribe and do not
subscribe to the services offered by
multichannel video programming
distributors within the areas served by
such multichannel video programming
distributors in such community.
(3) Carriage of signals.--
(A) Carriage obligation.--A market
determination under this subsection shall not
create additional carriage obligations for a
satellite carrier if it is not technically and
economically feasible for such carrier to
accomplish such carriage by means of its
satellites in operation at the time of the
determination.
(B) Deletion of signals.--A satellite carrier
shall not delete from carriage the signal of a
commercial television broadcast station during
the pendency of any proceeding under this
subsection.
(4) Determinations.--Not later than 120 days after
the date that a written request is filed under
paragraph (1), the Commission shall grant or deny the
request.
(5) No effect on eligibility to receive distant
signals.--No modification of a commercial broadcast
television station's local market pursuant to this
subsection shall have any effect on the eligibility of
households in the community affected by such
modification to receive distant signals pursuant to
section 339 of this Act.
SEC. 614. CARRIAGE OF LOCAL COMMERCIAL TELEVISION SIGNALS.
[47 U.S.C. 534]
* * * * * * *
(h) Definitions.--
(1) Local commercial television station.--
(A) In general.--For purposes of this
section, the term ``local commercial television
station'' means any full power television
broadcast station, other than a qualified
noncommercial educational television station
within the meaning of section 615(l)(1),
licensed and operating on a channel regularly
assigned to its community by the Commission
that, with respect to a particular cable
system, is within the same television market as
the cable system.
(B) Exclusions.--The term ``local commercial
television station'' shall not include--
(i) low power television stations,
television translator stations, and
passive repeaters which operate
pursuant to part 74 of title 47, Code
of Federal Regulations, or any
successor regulations thereto;
(ii) a television broadcast station
that would be considered a distant
signal under section 111 of title 17,
United States Code, if such station
does not agree to indemnify the cable
operator for any increased copyright
liability resulting from carriage on
the cable system; or
(iii) a television broadcast station
that does not deliver to the principal
headend of a cable system either a
signal level of -45dBm for UHF signals
or -49dBm for VHF signals at the input
terminals of the signal processing
equipment, if such station does not
agree to be responsible for the costs
of delivering to the cable system a
signal of good quality or a baseband
video signal.
(C) Market determinations.--
(i) For purposes of this section, a
broadcasting station's market shall be
determined by the Commission by
regulation or order using, where
available, commercial publications
which delineate television markets
based on viewing patterns, except that,
following a written request, the
Commission may, with respect to a
particular television broadcast
station, include additional communities
within its television market or exclude
communities from such station's
television market to better effectuate
the purposes of this section. In
considering such requests, the
Commission may determine that
particular communities are part of more
than one television market.
(ii) In considering requests filed
pursuant to clause (i), the Commission
shall afford particular attention to
the value of localism by taking into
account such factors as--
(I) whether the station, or
other stations located in the
same area, have been
historically carried on the
cable system or systems within
such community;
(II) whether the television
station provides coverage or
other local service to such
[community] community or on the
satellite carrier or carriers
serving such community;\1\
---------------------------------------------------------------------------
\1\This amendment appears to be in error. An amendment to subclause
(I) would be consistent with the other amendments under the bill.
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(III) whether modifying the
local market of the television
station would promote
consumers' access to television
broadcast station signals that
originate in their State of
residence;
[(III)](IV) whether any other
television station that is
eligible to be carried by a
cable system in such community
in fulfillment of the
requirements of this section
provides news coverage of
issues of concern to such
community or provides carriage
or coverage of sporting and
other events of interest to the
community; and
[(IV)](V) [evidence of
viewing patterns in cable and
noncable households within the
areas served by the cable
system or systems in such
community.] evidence of
viewing patterns in cable and
noncable households within the
areas served by the cable
system or systems in such
community.
(iii) A cable operator shall not
delete from carriage the signal of a
commercial television station during
the pendency of any proceeding pursuant
to this subparagraph.
(iv) Within 120 days after the date
on which a request is filed under this
subparagraph (or 120 days after the
date of enactment of the
Telecommunications Act of 1996, if
later), the Commission shall grant or
deny the request.
(2) Qualified low power station.--The term
``qualified low power station'' means any television
broadcast station conforming to the rules established
for Low Power Television Stations contained in part 74
of title 47, Code of Federal Regulations, only if--
(A) such station broadcasts for at least the
minimum number of hours of operation required
by the Commission for television broadcast
stations under part 73 of title 47, Code of
Federal Regulations;
(B) such station meets all obligations and
requirements applicable to television broadcast
stations under part 73 of title 47, Code of
Federal Regulations, with respect to the
broadcast of nonentertainment programming;
programming and rates involving political
candidates, election issues, controversial
issues of public importance, editorials, and
personal attacks; programming for children; and
equal employment opportunity; and the
Commission determines that the provision of
such programming by such station would address
local news and informational needs which are
not being adequately served by full power
television broadcast stations because of the
geographic distance of such full power stations
from the low power station's community of
license;
(C) such station complies with interference
regulations consistent with its secondary
status pursuant to part 74 of title 47, Code of
Federal Regulations;
(D) such station is located no more than 35
miles from the cable system's headend, and
delivers to the principal headend of the cable
system an over-the-air signal of good quality,
as determined by the Commission;
(E) the community of license of such station
and the franchise area of the cable system are
both located outside of the largest 160
Metropolitan Statistical Areas, ranked by
population, as determined by the Office of
Management and Budget on June 30, 1990, and the
population of such community of license on such
date did not exceed 35,000; and
(F) there is no full power television
broadcast station licensed to any community
within the county or other political
subdivision (of a State) served by the cable
system.
Nothing in this paragraph shall be construed to change
the secondary status of any low power station as
provided in part 74 of title 47, Code of Federal
Regulations, as in effect on the date of enactment of
this section.
SEC. 623. REGULATION OF RATES.
[47 U.S.C. 543]
(a) Competition Preference; Local and Federal Regulation.--
(1) In general.--No Federal agency or State may
regulate the rates for the provision of cable service
except to the extent provided under this section and
section 612. Any franchising authority may regulate the
rates for the provision of cable service, or any other
communications service provided over a cable system to
cable subscribers, but only to the extent provided
under this section. No Federal agency, State, or
franchising authority may regulate the rates for cable
service of a cable system that is owned or operated by
a local government or franchising authority within
whose jurisdiction that cable system is located and
that is the only cable system located within such
jurisdiction.
(2) Preference for competition.--If the Commission
finds that a cable system is subject to effective
competition, the rates for the provision of cable
service by such system shall not be subject to
regulation by the Commission or by a State or
franchising authority under this section. If the
Commission finds that a cable system is not subject to
effective competition--
(A) the rates for the provision of basic
cable service shall be subject to regulation by
a franchising authority, or by the Commission
if the Commission exercises jurisdiction
pursuant to paragraph (6), in accordance with
the regulations prescribed by the Commission
under subsection (b); and
(B) the rates for cable programming services
shall be subject to regulation by the
Commission under subsection (c).
(3) Qualification of franchising authority.--A
franchising authority that seeks to exercise the
regulatory jurisdiction permitted under paragraph
(2)(A) shall file with the Commission a written
certification that--
(A) the franchising authority will adopt and
administer regulations with respect to the
rates subject to regulation under this section
that are consistent with the regulations
prescribed by the Commission under subsection
(b);
(B) the franchising authority has the legal
authority to adopt, and the personnel to
administer, such regulations; and
(C) procedural laws and regulations
applicable to rate regulation proceedings by
such authority provide a reasonable opportunity
for consideration of the views of interested
parties.
(4) Approval by commission.--A certification filed by
a franchising authority under paragraph (3) shall be
effective 30 days after the date on which it is filed
unless the Commission finds, after notice to the
authority and a reasonable opportunity for the
authority to comment, that--
(A) the franchising authority has adopted or
is administering regulations with respect to
the rates subject to regulation under this
section that are not consistent with the
regulations prescribed by the Commission under
subsection (b);
(B) the franchising authority does not have
the legal authority to adopt, or the personnel
to administer, such regulations; or
(C) procedural laws and regulations
applicable to rate regulation proceedings by
such authority do not provide a reasonable
opportunity for consideration of the views of
interested parties.
If the Commission disapproves a franchising authority's
certification, the Commission shall notify the
franchising authority of any revisions or modifications
necessary to obtain approval.
(5) Revocation of jurisdiction.--Upon petition by a
cable operator or other interested party, the
Commission shall review the regulation of cable system
rates by a franchising authority under this subsection.
A copy of the petition shall be provided to the
franchising authority by the person filing the
petition. If the Commission finds that the franchising
authority has acted inconsistently with the
requirements of this subsection, the Commission shall
grant appropriate relief. If the Commission, after the
franchising authority has had a reasonable opportunity
to comment, determines that the State and local laws
and regulations are not in conformance with the
regulations prescribed by the Commission under
subsection (b), the Commission shall revoke the
jurisdiction of such authority.
(6) Exercise of jurisdiction by commission.--If the
Commission disapproves a franchising authority's
certification under paragraph (4), or revokes such
authority's jurisdiction under paragraph (5), the
Commission shall exercise the franchising authority's
regulatory jurisdiction under paragraph (2)(A) until
the franchising authority has qualified to exercise
that jurisdiction by filing a new certification that
meets the requirements of paragraph (3). Such new
certification shall be effective upon approval by the
Commission. The Commission shall act to approve or
disapprove any such new certification within 90 days
after the date it is filed.
(7) Aggregation of equipment costs.--
(A) In general.--The Commission shall allow
cable operators, pursuant to any rules
promulgated under subsection (b)(3), to
aggregate, on a franchise, system, regional, or
company level, their equipment costs into broad
categories, such as converter boxes, regardless
of the varying levels of functionality of the
equipment within each such broad category. Such
aggregation shall not be permitted with respect
to equipment used by subscribers who receive
only a rate regulated basic service tier.
(B) Revision to commission rules; forms.--
Within 120 days of the date of enactment of the
Telecommunications Act of 1996, the Commission
shall issue revisions to the appropriate rules
and forms necessary to implement subparagraph
(A).
(b) Establishment of Basic Service Tier Rate Regulations.--
(1) Commission obligation to subscribers.--The
Commission shall, by regulation, ensure that the rates
for the basic service tier are reasonable. Such
regulations shall be designed to achieve the goal of
protecting subscribers of any cable system that is not
subject to effective competition from rates for the
basic service tier that exceed the rates that would be
charged for the basic service tier if such cable system
were subject to effective competition.
(2) Commission regulations.--Within 180 days after
the date of enactment of the Cable Television Consumer
Protection and Competition Act of 1992, the Commission
shall prescribe, and periodically thereafter revise,
regulations to carry out its obligations under
paragraph (1). In prescribing such regulations, the
Commission--
(A) shall seek to reduce the administrative
burdens on subscribers, cable operators,
franchising authorities, and the Commission;
(B) may adopt formulas or other mechanisms
and procedures in complying with the
requirements of subparagraph (A); and
(C) shall take into account the following
factors:
(i) the rates for cable systems, if
any, that are subject to effective
competition;
(ii) the direct costs (if any) of
obtaining, transmitting, and otherwise
providing signals carried on the basic
service tier, including signals and
services carried on the basic service
tier pursuant to paragraph (7)(B), and
changes in such costs;
(iii) only such portion of the joint
and common costs (if any) of obtaining,
transmitting, and otherwise providing
such signals as is determined, in
accordance with regulations prescribed
by the Commission, to be reasonably and
properly allocable to the basic service
tier, and changes in such costs;
(iv) the revenues (if any) received
by a cable operator from advertising
from programming that is carried as
part of the basic service tier or from
other consideration obtained in
connection with the basic service tier;
(v) the reasonably and properly
allocable portion of any amount
assessed as a franchise fee, tax, or
charge of any kind imposed by any State
or local authority on the transactions
between cable operators and cable
subscribers or any other fee, tax, or
assessment of general applicability
imposed by a governmental entity
applied against cable operators or
cable subscribers;
(vi) any amount required, in
accordance with paragraph (4), to
satisfy franchise requirements to
support public, educational, or
governmental channels or the use of
such channels or any other services
required under the franchise; and
(vii) a reasonable profit, as defined
by the Commission consistent with the
Commission's obligations to subscribers
under paragraph (1).
(3) Equipment.--The regulations prescribed by the
Commission under this subsection shall include
standards to establish, on the basis of actual cost,
the price or rate for--
(A) installation and lease of the equipment
used by subscribers to receive the basic
service tier, including a converter box and a
remote control unit and, if requested by the
subscriber, such addressable converter box or
other equipment as is required to access
programming described in paragraph (8); and
(B) installation and monthly use of
connections for additional television
receivers.
(4) Costs of franchise requirements.--The regulations
prescribed by the Commission under this subsection
shall include standards to identify costs attributable
to satisfying franchise requirements to support public,
educational, and governmental channels or the use of
such channels or any other services required under the
franchise.
(5) Implementation and enforcement.--The regulations
prescribed by the Commission under this subsection
shall include additional standards, guidelines, and
procedures concerning the implementation and
enforcement of such regulations, which shall include--
(A) procedures by which cable operators may
implement and franchising authorities may
enforce the regulations prescribed by the
Commission under this subsection;
(B) procedures for the expeditious resolution
of disputes between cable operators and
franchising authorities concerning the
administration of such regulations;
(C) standards and procedures to prevent
unreasonable charges for changes in the
subscriber's selection of services or equipment
subject to regulation under this section, which
standards shall require that charges for
changing the service tier selected shall be
based on the cost of such change and shall not
exceed nominal amounts when the system's
configuration permits changes in service tier
selection to be effected solely by coded entry
on a computer terminal or by other similarly
simple method; and
(D) standards and procedures to assure that
subscribers receive notice of the availability
of the basic service tier required under this
section.
(6) Notice.--The procedures prescribed by the
Commission pursuant to paragraph (5)(A) shall require a
cable operator to provide 30 days' advance notice to a
franchising authority of any increase proposed in the
price to be charged for the basic service tier.
(7) Components of basic tier subject to rate
regulation.--
(A) Minimum contents.--Each cable operator of
a cable system shall provide its subscribers a
separately available basic service tier to
which subscription is required for access to
any other tier of service. Such basic service
tier shall, at a minimum, consist of the
following:
(i) All signals carried in
fulfillment of the requirements of
sections 614 and 615.
(ii) Any public, educational, and
governmental access programming
required by the franchise of the cable
system to be provided to subscribers.
(iii) Any signal of any television
broadcast station that is provided by
the cable operator to any subscriber,
except a signal which is secondarily
transmitted by a satellite carrier
beyond the local service area of such
station.
(B) Permitted additions to basic tier.--A
cable operator may add additional video
programming signals or services to the basic
service tier. Any such additional signals or
services provided on the basic service tier
shall be provided to subscribers at rates
determined under the regulations prescribed by
the Commission under this subsection.
(8) Buy-through of other tiers prohibited.--
(A) Prohibition.--A cable operator may not
require the subscription to any tier other than
the basic service tier required by paragraph
(7) as a condition of access to video
programming offered on a per channel or per
program basis. A cable operator may not
discriminate between subscribers to the basic
service tier and other subscribers with regard
to the rates charged for video programming
offered on a per channel or per program basis.
(B) Exception; limitation.--The prohibition
in subparagraph (A) shall not apply to a cable
system that, by reason of the lack of
addressable converter boxes or other
technological limitations, does not permit the
operator to offer programming on a per channel
or per program basis in the same manner
required by subparagraph (A). This subparagraph
shall not be available to any cable operator
after--
(i) the technology utilized by the
cable system is modified or improved in
a way that eliminates such
technological limitation; or
(ii) 10 years after the date of
enactment of the Cable Television
Consumer Protection and Competition Act
of 1992, subject to subparagraph (C).
(C) Waiver.--If, in any proceeding initiated
at the request of any cable operator, the
Commission determines that compliance with the
requirements of subparagraph (A) would require
the cable operator to increase its rates, the
Commission may, to the extent consistent with
the public interest, grant such cable operator
a waiver from such requirements for such
specified period as the Commission determines
reasonable and appropriate.
(c) Regulation of Unreasonable Rates.--
(1) Commission regulations.--Within 180 days after
the date of enactment of the Cable Television Consumer
Protection and Competition Act of 1992, the Commission
shall, by regulation, establish the following:
(A) criteria prescribed in accordance with
paragraph (2) for identifying, in individual
cases, rates for cable programming services
that are unreasonable;
(B) fair and expeditious procedures for the
receipt, consideration, and resolution of
complaints from any franchising authority (in
accordance with paragraph (3)) alleging that a
rate for cable programming services charged by
a cable operator violates the criteria
prescribed under subparagraph (A), which
procedures shall include the minimum showing
that shall be required for a complaint to
obtain Commission consideration and resolution
of whether the rate in question is
unreasonable; and
(C) the procedures to be used to reduce rates
for cable programming services that are
determined by the Commission to be unreasonable
and to refund such portion of the rates or
charges that were paid by subscribers after the
filing of the first complaint filed with the
franchising authority under paragraph (3) and
that are determined to be unreasonable.
(2) Factors to be considered.--In establishing the
criteria for determining in individual cases whether
rates for cable programming services are unreasonable
under paragraph (1)(A), the Commission shall consider,
among other factors--
(A) the rates for similarly situated cable
systems offering comparable cable programming
services, taking into account similarities in
facilities, regulatory and governmental costs,
the number of subscribers, and other relevant
factors;
(B) the rates for cable systems, if any, that
are subject to effective competition;
(C) the history of the rates for cable
programming services of the system, including
the relationship of such rates to changes in
general consumer prices;
(D) the rates, as a whole, for all the cable
programming, cable equipment, and cable
services provided by the system, other than
programming provided on a per channel or per
program basis;
(E) capital and operating costs of the cable
system, including the quality and costs of the
customer service provided by the cable system;
and
(F) the revenues (if any) received by a cable
operator from advertising from programming that
is carried as part of the service for which a
rate is being established, and changes in such
revenues, or from other consideration obtained
in connection with the cable programming
services concerned.
(3) Review of rate changes.--The Commission shall
review any complaint submitted by a franchising
authority after the date of enactment of the
Telecommunications Act of 1996 concerning an increase
in rates for cable programming services and issue a
final order within 90 days after it receives such a
complaint, unless the parties agree to extend the
period for such review. A franchising authority may not
file a complaint under this paragraph unless, within 90
days after such increase becomes effective it receives
subscriber complaints.
(4) Sunset of upper tier rate regulation.--This
subsection shall not apply to cable programming
services provided after March 31, 1999.
(d) Uniform Rate Structure Required.--A cable operator shall
have a rate structure, for the provision of cable service, that
is uniform throughout the geographic area in which cable
service is provided over its cable system. This subsection does
not apply to (1) a cable operator with respect to the provision
of cable service over its cable system in any geographic area
in which the video programming services offered by the operator
in that area are subject to effective competition, or (2) any
video programming offered on a per channel or per program
basis. Bulk discounts to multiple dwelling units shall not be
subject to this subsection, except that a cable operator of a
cable system that is not subject to effective competition may
not charge predatory prices to a multiple dwelling unit. Upon a
prima facie showing by a complainant that there are reasonable
grounds to believe that the discounted price is predatory, the
cable system shall have the burden of showing that its
discounted price is not predatory.
(e) Discrimination; Services for the Hearing Impaired.--
Nothing in this title shall be construed as prohibiting any
Federal agency, State, or a franchising authority from--
(1) prohibiting discrimination among subscribers and
potential subscribers to cable service, except that no
Federal agency, State, or franchising authority may
prohibit a cable operator from offering reasonable
discounts to senior citizens or other economically
disadvantaged group discounts; or
(2) requiring and regulating the installation or
rental of equipment which facilitates the reception of
cable service by hearing impaired individuals.
(f) Negative Option Billing Prohibited.--A cable operator
shall not charge a subscriber for any service or equipment that
the subscriber has not affirmatively requested by name. For
purposes of this subsection, a subscriber's failure to refuse a
cable operator's proposal to provide such service or equipment
shall not be deemed to be an affirmative request for such
service or equipment.
(g) Collection of Information.--The Commission shall, by
regulation, require cable operators to file with the Commission
or a franchising authority, as appropriate, within one year
after the date of enactment of the Cable Television Consumer
Protection and Competition Act of 1992 and annually thereafter,
such financial information as may be needed for purposes of
administering and enforcing this section.
(h) Prevention of Evasions.--Within 180 days after the date
of enactment of the Cable Television Consumer Protection and
Competition Act of 1992, the Commission shall, by regulation,
establish standards, guidelines, and procedures to prevent
evasions, including evasions that result from retiering, of the
requirements of this section and shall, thereafter,
periodically review and revise such standards, guidelines, and
procedures.
(i) Small System Burdens.--In developing and prescribing
regulations pursuant to this section, the Commission shall
design such regulations to reduce the administrative burdens
and cost of compliance for cable systems that have 1,000 or
fewer subscribers.
(j) Rate Regulation Agreements.--During the term of an
agreement made before July 1, 1990, by a franchising authority
and a cable operator providing for the regulation of basic
cable service rates, where there was not effective competition
under Commission rules in effect on that date, nothing in this
section (or the regulations thereunder) shall abridge the
ability of such franchising authority to regulate rates in
accordance with such an agreement.
[(k) Reports on Average Prices.--The Commission shall
annually publish statistical reports on the average rates for
basic cable service and other cable programming, and for
converter boxes, remote control units, and other equipment,
of--
[(1) cable systems that the Commission has found are
subject to effective competition under subsection
(a)(2), compared with
[(2) cable systems that the Commission has found are
not subject to such effective competition.]
(k) Reports on Average Prices.--
(1) In general.--The Commission shall annually
publish statistical reports on the average rates for
basic cable service and other cable programming, and
for converter boxes, remote control units, and other
equipment of cable systems that the Commission has
found are subject to effective competition under
subsection (a)(2) compared with cable systems that the
Commission has found are not subject to such effective
competition.
(2) Inclusion in annual report.--
(A) In general.--The Commission shall include
in its report under paragraph (1), the
aggregate average total amount paid by cable
systems in compensation under section 325.
(B) Form.--The Commission shall publish
information under this paragraph in a manner
substantially similar to the way other
comparable information is published in such
report.
(l) Definitions.--As used in this section--
(1) The term ``effective competition'' means that--
(A) fewer than 30 percent of the households
in the franchise area subscribe to the cable
service of a cable system;
(B) the franchise area is--
(i) served by at least two
unaffiliated multichannel video
programming distributors each of which
offers comparable video programming to
at least 50 percent of the households
in the franchise area; and
(ii) the number of households
subscribing to programming services
offered by multichannel video
programming distributors other than the
largest multichannel video programming
distributor exceeds 15 percent of the
households in the franchise area;
(C) a multichannel video programming
distributor operated by the franchising
authority for that franchise area offers video
programming to at least 50 percent of the
households in that franchise area; or
(D) a local exchange carrier or its affiliate
(or any multichannel video programming
distributor using the facilities of such
carrier or its affiliate) offers video
programming services directly to subscribers by
any means (other than direct-to-home satellite
services) in the franchise area of an
unaffiliated cable operator which is providing
cable service in that franchise area, but only
if the video programming services so offered in
that area are comparable to the video
programming services provided by the
unaffiliated cable operator in that area.
(2) The term ``cable programming service'' means any
video programming provided over a cable system,
regardless of service tier, including installation or
rental of equipment used for the receipt of such video
programming, other than (A) video programming carried
on the basic service tier, and (B) video programming
offered on a per channel or per program basis.
(m) Special Rules for Small Companies.--
(1) In general.--Subsections (a), (b), and (c) do not
apply to a small cable operator with respect to--
(A) cable programming services, or
(B) a basic service tier that was the only
service tier subject to regulation as of
December 31, 1994,
in any franchise area in which that operator services
50,000 or fewer subscribers.
(2) Definition of small cable operator.--For purposes
of this subsection, the term ``small cable operator''
means a cable operator that, directly or through an
affiliate, serves in the aggregate fewer than 1 percent
of all subscribers in the United States and is not
affiliated with any entity or entities whose gross
annual revenues in the aggregate exceed $250,000,000.
(n) Treatment of Prior Year Losses.--Notwithstanding any
other provision of this section or of section 612, losses
associated with a cable system (including losses associated
with the grant or award of a franchise) that were incurred
prior to September 4, 1992, with respect to a cable system that
is owned and operated by the original franchisee of such system
shall not be disallowed, in whole or in part, in the
determination of whether the rates for any tier of service or
any type of equipment that is subject to regulation under this
section are lawful.
(o) Streamlined Petition Process for Small Cable Operators.--
(1) In general.--Not later than 180 days after the
date of enactment of the Satellite Television Access
and Viewer Rights Act, the Commission shall complete a
rulemaking to establish a streamlined process for
filing of an effective competition petition pursuant to
this section for small cable operators, particularly
those who serve primarily rural areas.
(2) Construction.--Nothing in this subsection shall
be construed to have any effect on the duty of a small
cable operator to prove the existence of effective
competition under this section.
(3) Definition of small cable operator.--In this
subsection, the term ``small cable operator'' has the
meaning given the term in subsection (m)(2).