H.R. 4501

Satellite Home Viewer Extension and Reauthorization Act of 2004

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        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4501 Reported in House (RH)]

Union Calendar No. 379
108th CONGRESS
2d Session
H. R. 4501

[Report No. 108-634]

To extend the statutory license for secondary transmissions under
section 119 of title 17, United States Code, and to amend the
Communications Act of 1934 with respect to such transmissions, and for
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 3, 2004

Mr. Upton (for himself, Mr. Markey, Mr. Barton of Texas, and Mr.
Dingell) introduced the following bill; which was referred to the
Committee on Energy and Commerce

July 22, 2004

Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed

_______________________________________________________________________

A BILL

To extend the statutory license for secondary transmissions under
section 119 of title 17, United States Code, and to amend the
Communications Act of 1934 with respect to such transmissions, and for
other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Satellite Home
Viewer Extension and Reauthorization Act of 2004''.
(b) Table of Contents.--

Sec. 1. Short title; table of contents.
TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

Sec. 201. Extension of retransmission consent exemption.
Sec. 202. Cable/satellite comparability.
Sec. 203. Carriage of local stations on a single dish.
Sec. 204. Replacement of distant signals with local signals.
Sec. 205. Additional notices to subscribers, networks, and stations
concerning signal carriage.
Sec. 206. Privacy rights of satellite subscribers.
Sec. 207. Reciprocal bargaining obligations.
Sec. 208. Unserved digital customers.
Sec. 209. Reduction of required tests.
Sec. 210. Carriage of certain additional stations.

TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

SEC. 201. EXTENSION OF RETRANSMISSION CONSENT EXEMPTION.

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

SEC. 202. CABLE/SATELLITE COMPARABILITY.

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

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

``(a) Significantly Viewed Stations.--In addition to the broadcast
signals that subscribers may receive under section 338 and 339, a
satellite carrier is also authorized to retransmit to subscribers
located in a community the signal of any station that a cable system in
the same community is authorized to retransmit pursuant to section 111
of title 17, United States Code, if such station is treated as
significantly viewed in the county within which such community is
located in accordance with the rules, regulations, and authorizations
of the Commission.
``(b) Limitations.--
``(1) Analog service limited to subscribers taking local-
into-local service.--With respect to a signal that originates
as an analog signal of a television broadcast station, this
section shall apply only to retransmissions to subscribers who
receive retransmissions from a satellite carrier pursuant to
the statutory license under section 122 of title 17, United
States Code.
``(2) Digital service limitations.--With respect to a
signal that originates as a digital signal of a network
station, this section shall apply only if--
``(A) the subscriber receives from the satellite
carrier pursuant to the statutory license under section
122 of title 17, United States Code, the retransmission
of the digital signal of a network station in the
subscriber's local market that is affiliated with the
same television network; and
``(B) either--
``(i) the retransmission of the local
network station occupies at least the
equivalent bandwidth as the digital signal
retransmitted pursuant to this section; or
``(ii) the retransmission of the local
network station carries the entire bandwidth of
the digital signal broadcast by such local
network station.
``(3) Limitation not applicable where no network
affiliates.--The limitations in paragraphs (1) and (2) shall
not prohibit a retransmission under this section to a
subscriber located in a local market in which there are no
network stations affiliated with the same television network as
the station whose signal is being retransmitted pursuant to
this section.
``(4) Authority to grant station-specific waivers.--
Notwithstanding paragraphs (1) and (2), a satellite carrier may
provide to subscribers the retransmission of a network station
that is determined to be significantly viewed under this
section, if and to the extent that the network station in the
local market in which the subscriber is located, and that is
affiliated with the same television network, has granted a
waiver from the requirements of paragraphs (1) and (2) to such
satellite carrier with respect to such significantly viewed
station.
``(c) Modifications of List.--
``(1) Petitions from satellite carriers.--In addition to
cable operators and television broadcast station licensees, the
Commission shall permit a satellite carrier to petition for
decisions and orders--
``(A) by which stations and communities may be
added to those that are eligible for retransmission
under subsection (a); and
``(B) by which stations and communities may be
determined to be eligible for retransmission under
paragraph (2) of this subsection.
``(2) Application of criteria to communities without cable
service.--In addition to the stations and communities that are
eligible for retransmission under subsection (a), in a community that
is not served by a cable system, a satellite carrier is also authorized
to retransmit to subscribers located in such community the signal of
any station that a cable system in that community would be authorized
to retransmit pursuant to section 111 of title 17, United States Code,
if such signal would be treated as significantly viewed in the county
within which such community is located in accordance with the rules,
regulations, and authorizations of the Commission.
``(d) Effect on Other Obligations and Rights.--
``(1) No effect on carriage obligations.--Carriage of a
signal under this section is not mandatory, and any right of a
station licensee to have the signal of such station carried
under section 338 is not affected by the eligibility of such
station to be carried under this section.
``(2) Retransmission consent rights not affected.--The
eligibility of the signal of a station to be carried under this
section does not affect the right of the licensee of such
station to grant (or withhold) retransmission consent under
section 325(b)(1).
``(e) Network Nonduplication and Syndicated Exclusivity.--
``(1) Not applicable except as provided by commission
regulations.--Signals eligible to be carried under this section
are not subject to the Commission's regulations concerning
network nonduplication or syndicated exclusivity unless,
pursuant to regulations adopted by the Commission, the
Commission determines to permit network nonduplication or
syndicated exclusivity to apply within the appropriate zone of
protection.
``(2) Limitation.--Nothing in this subsection or Commission
regulations shall permit the application of network
nonduplication or syndicated exclusivity regulations to the
retransmission of distant signals of network stations that are
carried by a satellite carrier pursuant to a statutory license
under section 119(a)(2)(A) or (B), with respect to persons who
reside in unserved households, under 119(a)(4)(A), or under
section 119(a)(12).
``(f) Enforcement Proceedings.--
``(1) Notice by television broadcast stations.--If a
television broadcast station believes that a satellite carrier
has retransmitted to any subscriber in the local market of such
station the signal of another television broadcast station
affiliated with the same television network in violation of
this section, the station may provide the satellite carrier
with written notice of such violation. Such notice shall be
provided via overnight delivery, addressed to the chief
executive officer of the satellite carrier at its principal
place of business and marked `URGENT LITIGATION MATTER' on the
outer packaging. Such notification shall set forth--
``(A) the name, address, and call letters of the
station that is claimed to have been unlawfully
retransmitted (for purposes of this subsection, the
`imported station');
``(B) the name and address of the satellite
carrier;
``(C) the dates on which the alleged retransmission
occurred;
``(D) the street address of at least one person to
whom the alleged retransmission was made;
``(E) a statement that the retransmission was not
permitted because--
``(i) the Commission had not determined
that the imported station is significantly
viewed in the relevant community;
``(ii) the subscriber is not eligible for
the retransmission of the signal because of the
limitation in subsection (b) (1) or (2);
``(iii) the satellite carrier had not
provided the notification required by
subsection (h)(3); or
``(iv) two or more of the above; and
``(F) the name and address of counsel for the
station.
``(2) Complaints by television broadcast stations.--If,
within 30 days of providing to the satellite carrier a notice
pursuant to paragraph (1), the satellite carrier has not cured
the alleged retransmission in violation of this section, or if
the satellite carrier cures the alleged violation after notice
and then renews such violation within the next two years, the
station may file a complaint with the Commission. Such
complaint shall set forth the information provided in a notice
under paragraph (1).
``(3) Service of complaints on satellite carriers.--For
purposes of any proceeding under this subsection, any satellite
carrier that retransmits the signal of any broadcast station
shall be deemed to designate the Secretary of the Commission as
its agent for service of process. A television broadcast
station may serve a satellite carrier with a complaint
concerning an alleged violation of this section through
retransmission of a station within the local market of such
station by filing the original and two copies of the complaint
with the Secretary of the Commission and serving a copy of the
complaint on the satellite carrier by means of two commonly
used overnight delivery services, each addressed to the chief
executive officer of the satellite carrier at its principal
place of business, and each marked `URGENT LITIGATION MATTER'
on the outer packaging. Service shall be deemed complete one
business day after a copy of the complaint is provided to the
delivery services for overnight delivery. On receipt of a
complaint filed by a television broadcast station under this
subsection, the Secretary of the Commission shall send the
original complaint by United States mail, postage prepaid,
receipt requested, addressed to the chief executive officer of
the satellite carrier at its principal place of business.
``(4) Answers by satellite carriers.--Within 20 business
days after the date of service, the satellite carrier shall
file an answer with the Commission and shall serve the answer by a
commonly used overnight delivery service and by United States mail, on
the counsel designated in the complaint at the address listed for such
counsel in the complaint. The answer shall include, as a schedule, a
complete and accurate list of all subscribers to which the satellite
carrier retransmitted the imported station into the community in
question pursuant to this section for each month during the relevant
time period. Such subscriber information submitted by a satellite
carrier may be used only for purposes of determining compliance by the
satellite carrier with this section.
``(5) Defenses.--
``(A) Exclusive defenses.--The defenses under this
paragraph are the exclusive defenses available to a
satellite carrier against which a complaint under this
subsection is filed.
``(B) Defenses.--The defenses referred to under
subparagraph (A) are the defenses--
``(i) that the satellite carrier did not
retransmit the imported station to any person
in the complaining station's local market
pursuant to this section during the time period
specified in the complaint;
``(ii) if the complaining station has
alleged that the retransmission was unlawful
because the Commission had not determined that
the station is significantly viewed in the
relevant community, that the Commission had in
fact made that determination;
``(iii) with respect to particular
subscribers referenced in the complaint, that
those subscribers reside in communities in
which the Commission has determined the station
to be significantly viewed;
``(iv) if the complaining station has
alleged that the retransmission is unlawful
because the subscriber is ineligible for the
retransmission because of the limitation in
subsection (b) (1) or (2), that such limitation
is inapplicable; and
``(v) if the complaining station has
alleged that the retransmission was unlawful
because the satellite carrier had not provided
the notification required by subsection (h)(3),
that the satellite carrier had in fact provided
that notification.
``(6) Counting of violations.--The unlawful retransmission
of a particular television broadcast station on a particular
day subsequent to the notice and opportunity to cure described
in paragraphs (1) and (2) of this subsection to a single
subscriber pursuant to this section shall be considered a
separate violation of this section.
``(7) Procedures.--
``(A) Regulations.--Within 60 days after the date
of enactment, the Commission shall issue procedural
regulations implementing this subsection which shall
supersede procedures under section 312.
``(B) Determinations.--
``(i) In general.--Within 45 days after the
filing of a complaint, the Commission shall
issue a final determination in any proceeding
brought under this subsection, unless the
Commission issues an interim determination in
writing that there has been a genuine,
reasonable, good faith dispute about the
applicability of one of the defenses set forth
in paragraph (5), in which case the Commission
shall have 135 additional days to issue a final
determination. The Commission shall hear
witnesses only if it clearly appears, based on
written filings by the parties, that there is a
genuine dispute about material facts. Except as
provided in the preceding sentence, the
Commission may issue a final ruling based on
written filings by the parties.
``(ii) Discovery.--The Commission may
direct the parties to exchange pertinent
documents, and if necessary to take prehearing
depositions, on such schedule as the Commission
may approve, but only if the Commission first
determines that such discovery is necessary to
resolve a genuine dispute about material facts,
consistent with the obligation to make a final
determination within 45 days (or 180 days, as
appropriate).
``(8) Relief.--If the Commission determines that a
satellite carrier has retransmitted the imported stations to at
least one person in the complaining station's local market
based on this section and has failed to meet its burden of
proving one of the defenses under paragraph (5) with respect to
such retransmission, the Commission shall be required to--
``(A) make a finding that the satellite carrier
violated this section with respect to that station; and
``(B) issue an order containing--
``(i) a cease-and-desist order directing
the satellite carrier immediately to stop
making any further retransmissions in violation
of this section;
``(ii) a monetary penalty of $50 per
violation, which may be waived by the
Commission only if the Commission determines
that there was a genuine, reasonable, good
faith dispute about the applicability of one of
the defenses set forth in paragraph (5); and
``(C) an award to the complainant of the
complainant's costs and reasonable attorney's fees.
``(9) Court proceedings on enforcement of commission
order.--
``(A) In general.--On entry by the Commission of a
final order granting relief under this subsection--
``(i) a television broadcast station may
apply within 30 days after such entry to the
United States District Court for the District
of Columbia for a final judgment enforcing all
relief granted by the Commission; and
``(ii) the satellite carrier may apply
within 30 days after such entry to the United
States District Court for the District of
Columbia for a judgment reversing the
Commission's order.
``(B) Appeal.--
``(i) For cases in which the Commission has
not determined that there has been a genuine,
reasonable, good faith dispute about the
applicability of one of the defenses set forth
in paragraph (5), the procedure for an appeal
under this subparagraph by the satellite
carrier shall supersede any other appeal rights
under Federal or State law. The United States
District Court for the District of Columbia may
find personal jurisdiction based on the
satellite carrier's ownership of licenses
issued by the Commission. An application by a
television broadcast station for an order
enforcing any cease-and-desist relief granted
by the Commission shall be resolved on a highly
expedited schedule. No discovery may be
conducted by the parties in any such
proceeding. The district court shall enforce
the Commission order unless the Commission
record reflects manifest error and an abuse of
discretion by the Commission.
``(ii) For cases in which the Commission
has determined that there has been genuine,
reasonable, good faith dispute about the
applicability of one of the defenses set forth
in paragraph (5), the appeals process set forth
in section 402 shall apply, with the following
caveats:
``(I) If the Commission has found
the retransmissions in question to be
in violation of this section, the
satellite carrier must cease such
retransmissions during the pendency of
any appeal. Any such retransmissions
after the date of the Commission's
order but prior to any order
overturning the Commission on appeal
shall be considered violations under
paragraph (6).
``(II) If the Commission has found
the retransmissions in question to be
not in violation of this section, the
satellite carrier may continue such
retransmissions during the pendency of
the appeal. Any such retransmissions
after the date of the Commission's
order but prior to any order
overturning the Commission on appeal
shall not be considered violations
under paragraph (6).
``(g) Rulemaking.--
``(1) Requirements.--The Commission shall--
``(A) commence a rulemaking proceeding to implement
this section by publication of a notice of proposed
rulemaking within 180 days after the date of enactment
of the Satellite Home Viewer Extension and
Reauthorization Act of 2004;
``(B) include in such notice a list of the stations
or communities eligible for carriage under subsection
(a); and
``(C) adopt rules pursuant to such rulemaking
within one year after such date of enactment.
``(2) Interim eligibility.--Stations and communities listed
as eligible for carriage in the notice of proposed rulemaking
issued by the Commission under paragraph (1) may be treated as
eligible for carriage under this section on an interim basis
pending adoption of such rules and publication of the list of
eligible stations and communities under such rules.
``(h) Additional Corresponding Changes in Regulations.--
``(1) Community-by-community elections.--The Commission
shall, no later than April 30, 2005, revise section 76.66 of
its regulations (47 C.F.R. 76.66), concerning satellite
broadcast signal carriage, to permit (at the next cycle of
elections under section 325) a television broadcast station
that is located in a local market into which a satellite
carrier retransmits a television broadcast station on the basis
of a statutory license under section 122 of title 17, United
States Code, to elect, with respect to such satellite carrier,
between retransmission consent pursuant to such section 325 and
mandatory carriage pursuant to section 338 separately for each
county within such station's local market, if--
``(A) the satellite carrier has notified the
station, pursuant to paragraph (3), that it intends to
carry another affiliate of the same network pursuant to
this section during the relevant election period in the
station's local market; or
``(B) on the date notification under paragraph (3)
was due, the satellite carrier was retransmitting into
the station's local market pursuant to this section an
affiliate of the same television network.
``(2) Single negotiations.--In revising its regulations as
required by paragraph (1), the Commission shall provide that
any such station shall conduct a single negotiation for the
entire portion of its local market for which retransmission
consent is elected.
``(3) Additional provisions.--The Commission shall, no
later than April 30, 2005, revise its regulations to provide
the following:
``(A) Notifications by satellite carrier.--A
satellite carrier's retransmission of television
broadcast stations pursuant to this section shall be
subject to the following limitations:
``(i) In any local market in which the
satellite carrier provides service on the basis
of a statutory license under section 122 of
title 17, United States Code, on the date of
enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004, the
carrier may notify a television broadcast
station in that market, at least 60 days prior
to any date on which the station must
thereafter make an election under section 76.66
of the Commission's regulations (47 C.F.R.
76.66), of--
``(I) each affiliate of the same
television network that the carrier
reserves the right to retransmit into
that station's local market pursuant to
this section during the next election
cycle under such section of such
regulations; and
``(II) for each such affiliate, the
communities into which the satellite
carrier reserves the right to make such
retransmissions.
``(ii) In any local market in which the
satellite carrier commences service on the
basis of a statutory license under section 122
of title 17, United States Code, after the date
of enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004, the
carrier may notify a station in that market, at
least 60 days prior to the introduction of such
service in that market, and thereafter at least
60 days prior to any date on which the station
must thereafter make an election under section
76.66 of the Commission's regulations (47
C.F.R. 76.66), of each affiliate of the same
television network that the carrier reserves
the right to retransmit into that station's
local market during the next election cycle
under such section of such regulations.
``(iii) Beginning with the 2005 election
cycle, a satellite carrier may only retransmit
pursuant to this section during the pertinent
election period a signal--
``(I) as to which it has provided
the notifications set forth in clauses
(i) and (ii); or
``(II) that it was retransmitting
into the local market under this
section as of the date such
notifications were due.
``(B) Harmonization of elections and retransmission
consent agreements.--If a satellite carrier notifies a
television broadcast station that it reserves the right
to retransmit an affiliate of the same television
network during the next election cycle pursuant to this
section, the station may choose between retransmission
consent and mandatory carriage for any portion of the
3-year election cycle that is not covered by an
existing retransmission consent agreement.
``(i) Definitions.--As used in this section:
``(1) Local market; satellite carrier; subscriber;
television broadcast station.--The terms `local market',
`satellite carrier', `subscriber', and `television broadcast
station' have the meanings given such terms in section 338(k).
``(2) Network station; television network.--The terms
`network station' and `television network' have the meanings
given such terms in section 339(d).
``(3) Bandwidth.--The terms `equivalent bandwidth' and
`entire bandwidth' shall be defined by the Commission by
regulation.''.

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

Section 338 of the Communications Act of 1934 (47 U.S.C. 338(d)) is
amended--
(1) by redesignating subsections (g) and (h) as subsections
(j) and (k), respectively;
(2) by inserting after subsection (f) the following new
subsection:
``(g) Carriage of Local Stations on a Single Dish.--
``(1) Single dish.--Each satellite carrier that retransmits
the signals of local television broadcast stations in a local
market shall retransmit the signals of all local television
broadcast stations retransmitted by that carrier to subscribers
in such market by means of a single reception antenna and
associated equipment.
``(2) Exception.--Notwithstanding paragraph (1), if the
carrier retransmits signals in the digital television service,
the carrier shall retransmit the digital television service
signals of all the local television broadcast stations
retransmitted by that carrier to subscribers in such market by
means of a single reception antenna and associated equipment,
but such antenna and associated equipment may be separate from
the single reception antenna and associated equipment used for
signals that are not in the digital television service.
``(3) Effective date.--The requirements of paragraphs (1)
and (2) of this subsection shall apply on and after one year
after the date of enactment of the Satellite Home Viewer
Extension and Reauthorization Act of 2004.
``(4) Notice of disruptions.--A carrier that is providing
signals of a local television broadcast station in a local
market under this section on the date of enactment of the
Satellite Home Viewer Extension and Reauthorization Act of 2004
shall, not later than 270 days after such date of enactment,
provide to the licensees for such stations and the carrier's
subscribers in such local market a notice that displays prominently and
conspicuously a clear statement of--
``(A) any reallocation of signals between different
reception antennas and associated equipment that the
carrier intends to make in order to comply with the
requirements of this subsection;
``(B) the need, if any, for subscribers to obtain
an additional reception antenna and associated
equipment to receive such signals; and
``(C) any cessation of carriage or other material
change in the carriage of signals as a consequence of
the requirements of this paragraph.
``(5) Enforcement.--Notwithstanding any other provision of
this section, the Commission may enforce this section and any
regulation thereunder in accordance with titles IV and V of
this Act.''.

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

Section 339(a) of the Communications Act of 1934 (47 U.S.C. 339(a))
is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Replacement of distant signals with local signals.--
Notwithstanding any other provision of paragraph (1), the
following rules shall apply after the date of enactment of the
Satellite Home Viewer Extension and Reauthorization Act of
2004:
``(A) Rules for grandfathered subscribers.--In the
case of a subscriber of a satellite carrier who is
eligible to receive the signal of a network station
solely by reason of section 119(e) of title 17, United
States Code (in this subparagraph referred to as a
`distant signal'), the following shall apply:
``(i) In a case in which the signal of a
local network station affiliated with the same
television network is made available pursuant
to the statutory license under section 122 by
that satellite carrier to the subscriber, the
carrier may only provide the secondary
transmissions of the distant signal of such
network station to that subscriber--
``(I) if, within 60 days after
receiving the notice of the satellite
carrier under section 338(h)(1) of the
Communications Act of 1934, the
subscriber elects to retain the distant
signal; but
``(II) only until such time as the
subscriber elects to receive such local
signal.
``(ii) Notwithstanding clause (i), the
carrier may not retransmit the distant signal
to any subscriber who is eligible to receive
the signal of a network station solely by
reason of section 119(e) of title 17, United
States Code, unless such carrier, within 60
days after the date of the enactment of the
Satellite Home Viewer Extension and
Reauthorization Act of 2004, submits to that
television network the list and statement
required by section 338(h)(2).
``(B) Rules for other subscribers.--In the case of
a subscriber of a satellite carrier who is eligible to
receive the signal of a network station under the
statutory license under section 119(a)(2) of title 17,
United States Code (in this subparagraph referred to as
a `distant signal'), other than subscribers to whom
subparagraph (A) applies, the following shall apply:
``(i) In a case in which the signal of a
local network station affiliated with the same
television network is made available pursuant
to the statutory license under section 122 by
that satellite carrier to the subscriber on the
date of the enactment of the Satellite Home
Viewer Extension and Reauthorization Act of
2004, the carrier may only provide the
secondary transmissions of the distant signal
of such network station to that subscriber--
``(I)(aa) if, on such date of
enactment, the subscriber is receiving
such distant signal and is also
receiving such local signal, and
``(bb) the subscriber's satellite
carrier, within 60 days after the date
of the enactment of the Satellite Home
Viewer Extension and Reauthorization
Act of 2004, submits to that television
network the list and statement required
by section 338(h)(2); or
``(II)(aa) if, on such date of
enactment, the subscriber is receiving
such distant signal and is not
receiving such local signal; but
``(bb) only until such time as the
subscriber elects to receive such local
signal.
``(ii) In a case in which the signal of a
local network station affiliated with the same
television network is not made available
pursuant to the statutory license under section
122 by that satellite carrier to a subscriber
on the date of the enactment of the Satellite
Home Viewer Extension and Reauthorization Act
of 2004, the carrier may only provide the
secondary transmissions of the distant signal
of such network station to that subscriber--
``(I) who is a subscriber of that
satellite carrier on such date of
enactment, or
``(II) who becomes a subscriber of
that satellite carrier after such date
but before the local signal is made
available by the carrier, but only
until such time as the subscriber elects to receive the local signal
from that satellite carrier.
``(C) Future applicability.--A satellite carrier
may not provide a distant signal (within the meaning of
subparagraph (A) or (B)) to any person in a location to
which the signal of a local network station affiliated
with the same television network was made available by
that carrier pursuant to the statutory license under
section 122 of title 17, United States Code, before the
person becomes a subscriber to that carrier.
``(D) Authority to grant station-specific
waivers.--Notwithstanding the provisions of this
paragraph, a satellite carrier may provide the distant
signal (within the meaning of subparagraph (A) or (B))
of any distant network station to any person to whom
the signal of a local network station is available
pursuant to the statutory license under section 122 of
title 17, United States Code, if and to the extent that
such local network station has granted a waiver from
the requirements of this paragraph to such satellite
carrier with respect to such distant network station.
``(E) Other provisions not affected.--This
paragraph shall not affect the eligibility of a
subscriber to receive secondary transmissions under
section 119(a)(3) of title 17, United States Code, or
as an unserved household included under section
119(a)(12) of such title.''.

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

Section 338 of the Communications Act of 1934 (47 U.S.C. 338) is
further amended by inserting after subsection (g) (as added by section
203) the following new subsection:
``(h) Additional Notices to Subscribers, Networks, and Stations
Concerning Signal Carriage.--
``(1) Notices to and elections by subscribers concerning
grandfathered signals.--Any carrier that provides a distant
signal of a network station to a subscriber pursuant to a
statutory license under section 119(a)(4)(A) of title 17,
United States Code, shall--
``(A) within 60 days after the local signal of a
network station of the same television network is
available pursuant to a statutory license under section
122, 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) Notices to networks of distant signal subscribers.--
Within 60 days after the date of enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004, each
satellite carrier that provides a distant signal of a network
station to a subscriber pursuant to a statutory license under
section 119(a)(4)(A) or 119(a)(4)(B)(i) of title 17, United
States Code, shall submit to each network--
``(A) a list, aggregated by designated market area,
identifying each subscriber provided such a signal by--
``(i) name;
``(ii) address (street or RFD number, city,
state, and zip code); and
``(iii) the distant network signal or
signals received; and
``(B) a statement that, to the best of the
carrier's knowledge and belief after having made
diligent and good faith inquiries, the subscriber is
qualified under the existing law to receive the distant
network signal or signals pursuant to a statutory
license under section 119(a)(4)(A) or 119(a)(4)(B)(i)
of title 17, United States Code.
``(3) 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.
``(4) Notices concerning significantly viewed stations.--
Each satellite carrier that proposes to commence the
retransmission of a station pursuant to section 340 in any
local market shall--
``(A) not less than 60 days before commencing such
retransmission, provide a written notice to any
television broadcast station in such local market of a
such proposal; and
``(B) designate on such carrier's website all
significantly viewed signals carried pursuant to
section 340 and the communities in which the signals
are carried.''.

SEC. 206. PRIVACY RIGHTS OF SATELLITE SUBSCRIBERS.

(a) Amendment.--Section 338 of the Communications Act of 1934 (47
U.S.C. 338) is further amended by inserting after subsection (h) (as
added by section 205) the following new subsection:
``(i) Privacy Rights of Satellite Subscribers.--
``(1) Notice.--At the time of entering into an agreement to
provide any satellite service or other service to a subscriber
and at least once a year thereafter, a satellite carrier shall
provide notice in the form of a separate, written statement to
such subscriber which clearly and conspicuously informs the
subscriber of--
``(A) the nature of personally identifiable
information collected or to be collected with respect
to the subscriber and the nature of the use of such
information;
``(B) the nature, frequency, and purpose of any
disclosure which may be made of such information,
including an identification of the types of persons to
whom the disclosure may be made;
``(C) the period during which such information will
be maintained by the satellite carrier;
``(D) the times and place at which the subscriber
may have access to such information in accordance with
paragraph (5); and
``(E) the limitations provided by this section with
respect to the collection and disclosure of information
by a satellite carrier and the right of the subscriber
under paragraphs (7) and (9) to enforce such
limitations.
In the case of subscribers who have entered into such an
agreement before the effective date of this subsection, such
notice shall be provided within 180 days of such date and at
least once a year thereafter.
``(2) Definitions.--For purposes of this subsection, other
than paragraph (9)--
``(A) the term `personally identifiable
information' does not include any record of aggregate
data which does not identify particular persons;
``(B) the term `other service' includes any wire or
radio communications service provided using any of the
facilities of a satellite carrier that are used in the
provision of satellite service; and
``(C) the term `satellite carrier' includes, in
addition to persons within the definition of satellite
carrier, any person who--
``(i) is owned or controlled by, or under
common ownership or control with, a satellite
carrier; and
``(ii) provides any wire or radio
communications service.
``(3) Prohibitions.--
``(A) Consent to collection.--Except as provided in
subparagraph (B), a satellite carrier shall not use any
facilities used by the satellite carrier to collect
programming selection or subscription information from
such a subscriber 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
to collect programming
selection or subscription
information from such a
subscriber; or
``(iv) to a government entity as authorized
under chapters 119, 121, or 206 of title 18,
United States Code, except that such disclosure
shall not include records revealing satellite
subscriber selection of video programming from
a satellite carrier.
``(5) Access by subscriber.--A satellite subscriber shall
be provided access to all personally identifiable information
regarding that subscriber which is collected and maintained by
a satellite carrier. Such information shall be made available
to the subscriber at reasonable times and at a convenient place
designated by such satellite carrier. A satellite subscriber
shall be provided reasonable opportunity to correct any error
in such information.
``(6) Destruction of information.--A satellite carrier
shall destroy personally identifiable information if the
information is no longer necessary for the purpose for which it
was collected and there are no pending requests or orders for
access to such information under paragraph (5) or pursuant to a
court order.
``(7) Penalties.--Any person aggrieved by any act of a
satellite carrier in violation of this section may bring a
civil action in a United States district court. The court may
award--
``(A) actual damages but not less than liquidated
damages computed at the rate of $100 a day for each day
of violation or $1,000, whichever is higher;
``(B) punitive damages; and
``(C) reasonable attorneys' fees and other
litigation costs reasonably incurred.
The remedy provided by this subsection shall be in addition to
any other lawful remedy available to a satellite subscriber.
``(8) Rule of construction.--Nothing in this title shall be
construed to prohibit any State from enacting or enforcing laws
consistent with this section for the protection of subscriber
privacy.
``(9) Court orders.--Except as provided in paragraph
(4)(B)(iv), a governmental entity may obtain personally
identifiable information concerning a satellite subscriber
pursuant to a court order only if, in the court proceeding
relevant to such court order--
``(A) such entity offers clear and convincing
evidence that the subject of the information is
reasonably suspected of engaging in criminal activity
and that the information sought would be material
evidence in the case; and
``(B) the subject of the information is afforded
the opportunity to appear and contest such entity's
claim.''.
(b) Effective Date.--Section 338(i) of the Communications Act of
1934 (47 U.S.C. 338(i)) as amended by subsection (a) of this section
shall be effective 60 days after the date of enactment of this Act.

SEC. 207. RECIPROCAL BARGAINING OBLIGATIONS.

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

SEC. 208. UNSERVED DIGITAL CUSTOMERS.

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

SEC. 209. REDUCTION OF REQUIRED TESTS.

Section 339(c)(4) of the Communications Act of 1934 (47 U.S.C.
339(c)(4)) is amended by inserting after subparagraph (C) the following
new subparagraphs:
``(D) Reduction of verification burdens.--Within
one year after the date of enactment of the Satellite
Home Viewer Extension and Reauthorization Act of 2004,
the Commission shall by rule exempt from the
verification requirements of subparagraph (A) any
request for a test made by a subscriber to a satellite
carrier--
``(i) to whom the retransmission of the
signals of local broadcast stations is
available under section 122 of title 17, United
States Code, from such carrier; or
``(ii) for whom the predictive model
required by paragraph (3) predicts a signal
intensity that exceeds the signal intensity
standard in effect under section 119(d)(11)(A)
of such title by such number of decibels as the
Commission specifies in such rule.
``(E) Exception.--Notwithstanding any provision of
this Act, this section does not prohibit a subscriber
who is predicted to receive a signal that meets or
exceeds such signal intensity standard from conducting
a signal strength test at the subscriber's own expense
for the purpose of determining their eligibility for
distant signals under this section.''.

SEC. 210. CARRIAGE OF CERTAIN ADDITIONAL STATIONS.

Section 340 of the Communications Act of 1934, as added by section
202(a) of this Act, is amended by inserting at the end of subsection
(c) the following new paragraph:
``(3) Carriage of certain additional stations.--
``(A) Additional stations authorized.--In addition
to the signals that are eligible to be carried under
subsection (a) and paragraph (2) of this subsection, a
satellite carrier is also authorized to retransmit to
subscribers in no more than two counties in a State
that are in a local market principally comprised of
counties in another State, the signals of any
television station located in the capital city of the
State in which such counties are located, if the total
number of television households in the two counties
combined did not exceed 10,000 for the year 2003
according to Nielson Media Research.
``(B) Treatment as significantly viewed;
limitations.--Such signals shall be deemed, solely for
purposes of this section, to be significantly viewed in
such two counties. In total, a satellite carrier that
carries one or more additional signals under this
paragraph may retransmit no more than four television
broadcast stations in such counties pursuant to this
paragraph. All rules applicable to carriage of stations
pursuant to subsection (a) or paragraph (2) of this
subsection shall apply to carriage of stations pursuant
to this paragraph.''.

Union Calendar No. 379

108th CONGRESS

2d Session

H. R. 4501

[Report No. 108-634]

_______________________________________________________________________

A BILL

To extend the statutory license for secondary transmissions under
section 119 of title 17, United States Code, and to amend the
Communications Act of 1934 with respect to such transmissions, and for
other purposes.

_______________________________________________________________________

July 22, 2004

Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed