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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1680 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1680

To amend the Communications Act of 1934 to increase consumer choice and 
 competition in the online video programming distribution marketplace, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 12, 2013

Mr. Rockefeller introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
To amend the Communications Act of 1934 to increase consumer choice and 
 competition in the online video programming distribution marketplace, 
                        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 ``Consumer Choice in 
Online Video Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; statement of policy.
Sec. 3. Definitions.
                 TITLE I--BILLING FOR INTERNET SERVICE

Sec. 101. Consumer protections.
            TITLE II--ONLINE VIDEO DISTRIBUTION ALTERNATIVES

Sec. 201. Protections for online video distributors.
Sec. 202. Federal Communications Commission report on peering.
    TITLE III--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING 
                              DISTRIBUTORS

Sec. 301. Non-facilities based multichannel video programming 
                            distributors.
                        TITLE IV--MISCELLANEOUS

Sec. 401. Technical and conforming amendments.
Sec. 402. Provisions as complementary.
Sec. 403. Applicability of antitrust laws.
Sec. 404. Severability.

SEC. 2. FINDINGS; STATEMENT OF POLICY.

    (a) Findings.--Congress makes the following findings:
            (1) Online video distribution has the potential to increase 
        consumer choice in video programming, lower prices for video 
        services, bring innovative services to the video distribution 
        marketplace, and disrupt the traditional multichannel video 
        distribution marketplace.
            (2) Evolving consumer demand, improving technology, and 
        increased choice of viewing devices can make online video 
        distributors stronger competitors to multichannel video 
        programming distributors for an increasing number of viewers.
            (3) Unlike traditional multichannel video programming 
        distributors, online video distributors do not own distribution 
        facilities and are dependent upon Internet service providers 
        (many of which are affiliated with multichannel video 
        programming distributors) for the delivery of their content to 
        viewers.
            (4) Internet service providers' management and pricing of 
        broadband services affects online video distributors. Because 
        online video distribution consumes significant amounts of 
        Internet bandwidth, Internet service providers' use of usage-
        based billing practices can negatively impact the competitive 
        position of online video distributors and the appeal of their 
        services to consumers.
            (5) Internet service providers that are affiliated with a 
        multichannel video programming distributor or an online video 
        distributor have an increased incentive to degrade the delivery 
        of, or block entirely, traffic from the websites of other 
        online video distributors, or speed up or favor access to the 
        content and aggregation websites of their affiliates, because 
        online video distributors pose a threat to those affiliates' 
        video programming distribution businesses.
            (6) Similarly, multichannel video programming distributors 
        who are affiliated with Internet service providers, online 
        video distributors who are affiliated with Internet service 
        providers, or video programming vendors with significant market 
        power have the incentive and ability to use their competitive 
        position to engage in unfair methods of competition meant to 
        hinder competition from online video distributors.
            (7) Growth of online video distribution alternatives also 
        will depend, in part, on the distributor's ability to acquire 
        programming from content producers. Without access to content 
        on competitive terms, an online video distributor suffers a 
        distinct competitive harm.
            (8) Some traditional multichannel video programming 
        distributors have admitted to taking steps to limit the ability 
        of online video distributors to access content or otherwise 
        effectively compete in the video distribution marketplace.
            (9) Traditional multichannel video programming distributors 
        and even other online video distributors have the incentive and 
        ability to convince their video programming vendor partners not 
        to sell content to online video distributors or to sell content 
        to them at competitively disadvantageous prices, terms, and 
        conditions. They also have the incentive and ability to 
        retaliate against a video programming vendor that sells content 
        to an online video distributor.
            (10) Traditional multichannel video programming 
        distributors have the incentive and ability to use their 
        relationships with manufacturers of television sets, set-top 
        boxes, and other customer premises equipment to favor their own 
        services over offerings from online video distributors.
            (11) There is a substantial governmental and First 
        Amendment interest in--
                    (A) requiring Internet service providers to provide 
                consumers with accurate information about their 
                Internet service, and to ensure that data usage 
                monitoring systems are accurate, effective, and not 
                used for an anticompetitive purpose;
                    (B) promoting a diversity of views provided through 
                multiple technology media;
                    (C) promoting the development of online video 
                distribution platforms and fair competition amongst all 
                distributors and vendors of video programming;
                    (D) preventing Internet service providers that are 
                affiliated with a multichannel video programming 
                distributor or an online video distributor from 
                discriminating against unaffiliated content and 
                distributors in its exercise of control over consumers' 
                broadband connections;
                    (E) encouraging and protecting consumer choice and 
                innovation in online video distribution, including with 
                respect to distribution of broadcast television 
                content; and
                    (F) providing consumers with the ability to choose 
                to receive local broadcast television content from 
                various markets.
    (b) Statement of Policy.--It is the policy of the Congress that--
            (1) consumers should be fully informed about the terms and 
        conditions related to the purchase of Internet service from an 
        Internet service provider;
            (2) usage-based billing systems used by an Internet service 
        provider should not be used in a way that harms development and 
        use of high-bandwidth consuming Internet applications and 
        services that might compete with that Internet service 
        provider's own services;
            (3) the availability of a diversity of views and 
        information should be promoted to the public through various 
        video programming distribution platforms, including those 
        providing service by utilizing the Internet or other IP-based 
        transmission paths;
            (4) existing multichannel video programming distributors 
        and video programming vendors should not have or exercise undue 
        market power with respect to online video distributors; and
            (5) Internet service providers should not hinder through 
        anticompetitive behavior the ability of online video 
        distributors to provide services to their subscribers.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Broadcast television licensee.--The term ``broadcast 
        television licensee'' means the licensee of a full-power 
        television station or a low-power television station.
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) Internet service provider.--The term ``Internet service 
        provider'' means any provider of Internet service to an end 
        user, regardless of the technology used to provide that 
        service.
            (4) Non-facilities based multichannel video programming 
        distributor.--The term ``non-facilities based multichannel 
        video programming distributor'' means an online video 
        distributor that has made the election permitted under section 
        672.
            (5) Online video distributor.--The term ``online video 
        distributor'' means any entity, including a non-facilities 
        based multichannel video programming distributor, that--
                    (A) has its principal place of business in the 
                United States; and
                    (B) distributes video programming in the United 
                States by means of the Internet or another IP-based 
                transmission path provided by a person other than that 
                entity.
            (6) Television network.--The term ``television network'' 
        means a television network in the United States which offers an 
        interconnected program service on a regular basis for 15 or 
        more hours per week to at least 25 affiliated broadcast 
        stations in 10 or more States.
            (7) Usage-based billing.--
                    (A) In general.--The term ``usage-based billing'' 
                means a system of charging a consumer for Internet 
                service or the use of an IP-based transmission path 
                provided by an Internet service provider or other 
                entity that is based upon the amount of data the 
                consumer uses over a period of time.
                    (B) Inclusions.--The term ``usage-based billing'' 
                includes--
                            (i) imposing a cap on the amount of data 
                        the consumer can use based on the price the 
                        consumer is willing to pay for service;
                            (ii) charging a consumer varying amounts 
                        each billing cycle based on a per-megabyte, 
                        per-gigabyte, or similar rate; and
                            (iii) establishing different tiers of 
                        prices based on the amount of data the consumer 
                        elects to consume in a billing cycle, whether 
                        or not the amount acts as a cap on the 
                        consumer's service.
            (8) Video programming.--The term ``video programming'' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a television broadcast 
        station, whether or not such programming is delivered using a 
        portion of the electromagnetic frequency spectrum.
            (9) Video programming vendor.--The term ``video programming 
        vendor'' means a person engaged in the production, creation, or 
        wholesale distribution of video programming for sale.

                 TITLE I--BILLING FOR INTERNET SERVICE

SEC. 101. CONSUMER PROTECTIONS.

    Title VII of the Communications Act of 1934 (47 U.S.C. 601 et seq.) 
is amended--
            (1) by inserting before section 701 the following:

                    ``PART I--GENERAL PROVISIONS'';

        and
            (2) by adding at the end the following:

                  ``PART II--INTERNET SERVICES BILLING

``SEC. 721. CONSUMER PROTECTIONS.

    ``(a) General Disclosures.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Consumer Choice in Online Video Act, the 
        Commission shall promulgate regulations requiring Internet 
        service providers to disclose certain information that will 
        assist a consumer in making an informed decision about the 
        purchase of Internet service.
            ``(2) Requirements.--The regulations under paragraph (1) 
        shall require, at a minimum, that--
                    ``(A) any advertising related to Internet service 
                include plain language disclosure of any information 
                the Commission considers necessary for a consumer to 
                make an informed decision about the purchase of that 
                Internet service;
                    ``(B) an Internet service provider provide a plain 
                language disclosure to a consumer prior to the purchase 
                of Internet service that includes--
                            ``(i) the length of the contract;
                            ``(ii) the terms of renewal;
                            ``(iii) a projected monthly bill, including 
                        all fees and costs associated with the Internet 
                        service;
                            ``(iv) if the consumer is receiving 
                        promotional pricing for service, a projected 
                        monthly bill for service once that promotional 
                        pricing period has ended;
                            ``(v) the procedures to cancel the Internet 
                        service, including any policies related to 
                        early termination fees;
                            ``(vi) the average actual data transmission 
                        speeds, including both upload and download 
                        speeds;
                            ``(vii) any policies or practices regarding 
                        network management, including limiting service 
                        speeds or prioritizing content; and
                            ``(viii) any other information that the 
                        Commission considers necessary for the consumer 
                        to make an informed decision about the purchase 
                        of the Internet service.
    ``(b) Special Disclosures for Usage-Based Billing.--
            ``(1) In general.--As part of the rulemaking under 
        subsection (a), the Commission shall promulgate regulations to 
        protect consumers in the use of usage-based billing by Internet 
        service providers.
            ``(2) Plain language disclosure of terms and conditions.--
                    ``(A) In general.--The regulations under paragraph 
                (1) shall require an Internet service provider to 
                provide a plain language disclosure of all terms and 
                conditions associated with its use of usage-based 
                billing to a consumer prior to the purchase of Internet 
                service.
                    ``(B) Contents.--The plain language disclosure 
                under this paragraph shall include--
                            ``(i) an explanation of how usage-based 
                        billing will be applied to the consumer;
                            ``(ii) a complete list of the tiers of 
                        service;
                            ``(iii) comparisons of how much data of 
                        varying types, including video programming in 
                        standard and high-definition, the consumer 
                        would be able to consume each month under each 
                        tier;
                            ``(iv) the procedure for providing the 
                        consumer the notifications under paragraph (4);
                            ``(v) an explanation of the consequences, 
                        if any, to a consumer for exceeding the 
                        consumer's data usage amount, including any 
                        fees that may be charged and any options a 
                        consumer may have to avoid those fees;
                            ``(vi) if the Internet service provider 
                        provides a tool for a consumer to monitor the 
                        consumer's data usage, a description of the 
                        tool and how to use it;
                            ``(vii) the appeals procedure under 
                        paragraph (5); and
                            ``(viii) any other information that the 
                        Commission considers necessary to protect 
                        consumers in the use of usage-based billing by 
                        Internet service providers.
            ``(3) Monthly disclosure of data usage.--
                    ``(A) Data usage.--An Internet service provider 
                that uses usage-based billing shall provide a plain 
                language disclosure to a consumer of the consumer's 
                data usage during each billing cycle as part of the 
                consumer's bill.
                    ``(B) Data usage trends.--An Internet service 
                provider that uses usage-based billing shall include in 
                the consumer's bill information documenting the 
                consumer's data usage over the prior 6 monthly bills or 
                over a period beginning on the date that the consumer 
                contracted for the Internet service, whichever is 
                shorter.
            ``(4) Notifications.--
                    ``(A) In general.--An Internet service provider 
                that uses usage-based billing shall provide to a 
                consumer notification of the amount of data the 
                consumer has remaining at the midpoint of a billing 
                cycle, and at any other increments the Commission finds 
                are in the public interest.
                    ``(B) Form.--The Commission may determine the form 
                of the notifications required under this paragraph.
            ``(5) Consumer appeals.--Each Internet service provider 
        that uses usage-based billing shall establish an appeals 
        procedure for a consumer to obtain more detailed information 
        about the consumer's Internet data usage and to challenge the 
        Internet service provider's determination of that consumer's 
        data usage.
    ``(c) Truth-in-Billing for Internet Services.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Consumer Choice in Online Video Act, the 
        Commission shall update its truth-in-billing rules to extend 
        the rules to Internet service providers.
            ``(2) Bundled services.--As part of the rulemaking under 
        paragraph (1), the Commission shall consider whether it is in 
        the public interest to establish truth-in-billing rules for 
        bundled communications service packages.
    ``(d) Exemption.--The Commission may exempt an Internet service 
provider serving 20,000 or fewer subscribers from the requirements of 
this section.
    ``(e) Special Consideration.--The Commission may take into account 
the special considerations in an Internet service provider's delivery 
technology, including wireless, when implementing this section.

``SEC. 722. CERTIFICATION OF DATA USAGE MONITORING SYSTEMS.

    ``(a) Independent Certification Required.--
            ``(1) In general.--An Internet service provider may not use 
        a data usage monitoring system as part of usage-based billing 
        unless the data usage monitoring system is certified under this 
        section.
            ``(2) Development of standards.--The Commission, after 
        consultation with the National Institute of Standards and 
        Technology, shall develop standards to ensure that a data usage 
        monitoring system accurately measures a consumer's usage of 
        data.
            ``(3) Certification process.--The Commission may certify a 
        data usage monitoring system for use in usage-based billing if 
        it determines that the data usage monitoring system accurately 
        measures consumer data usage and is in material compliance with 
        the standards under paragraph (2).
            ``(4) Permissible delegation.--The Commission may designate 
        1 or more impartial third parties to conduct the certification 
        of a data usage monitoring system under this section.
    ``(b) Periodic Review.--The Commission shall determine how to 
ensure that an Internet service provider's data usage monitoring system 
remains in compliance with this section.
    ``(c) Definition of Data Usage Monitoring System.--In this section, 
the term `data usage monitoring system' means a system of monitoring 
and calculating the amount of data a user has consumed--
            ``(1) while accessing the Internet;
            ``(2) while using hardware, software, or applications that 
        consume data transmitted over the Internet; or
            ``(3) while accessing another IP-based transmission path 
        provided by an Internet service provider or another entity.
    ``(d) Penalties.--The Commission is authorized to assess penalties 
against any Internet service provider that fails to comply with this 
section.
    ``(e) Rulemaking.--
            ``(1) In general.--The Commission shall promulgate 
        regulations to implement this section not later than 1 year 
        after the date of enactment of the Consumer Choice in Online 
        Video Act.
            ``(2) Exemption.--The regulations under paragraph (1) may 
        provide an exemption from the regulations for an Internet 
        service provider serving 20,000 or fewer subscribers.
            ``(3) Special considerations.--The Commission may take into 
        account the special considerations in an Internet service 
        provider's delivery technology, including wireless, when 
        implementing this section.''.

            TITLE II--ONLINE VIDEO DISTRIBUTION ALTERNATIVES

SEC. 201. PROTECTIONS FOR ONLINE VIDEO DISTRIBUTORS.

    Title VI of the Communications Act of 1934 (47 U.S.C. 521 et seq.) 
is amended by adding at the end the following:

                  ``PART VI--ONLINE VIDEO DISTRIBUTORS

``SEC. 661. DEFINITIONS.

    ``In this part:
            ``(1) Affiliated with.--For purposes of sections 663, 664, 
        and 667, the term `affiliated with' means that the Internet 
        service provider, multichannel video programming distributor, 
        online video distributor, or video programming vendor, as 
        appropriate, directly or indirectly, is owned or controlled by, 
        owns or controls, or is under common ownership or control with 
        another Internet service provider, multichannel video 
        programming distributor, online video distributor, or video 
        programming vendor, as appropriate. For purposes of this 
        paragraph, the term `own' means to own an equity interest, or 
        the equivalent thereof, of more than 10 percent.
            ``(2) Video programming.--The term `video programming' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a television broadcast 
        station, whether or not such programming is delivered using a 
        portion of the electromagnetic frequency spectrum.

``SEC. 662. ENHANCEMENT OF CONSUMER CHOICE IN ONLINE VIDEO.

    ``The purposes of this part are--
            ``(1) to promote the public interest, convenience, and 
        necessity by increasing competition, innovation, and diversity 
        in the video programming marketplace;
            ``(2) to enhance consumer access to online video 
        distribution platforms and consumer choice in online video 
        programming; and
            ``(3) to increase the availability of video programming on 
        all platforms, including Internet-based platforms.

``SEC. 663. DEVELOPMENT OF COMPETITION AND DIVERSITY IN ONLINE VIDEO 
              DISTRIBUTION.

    ``(a) Prohibition.--It shall be unlawful for a designated 
distributor to engage in unfair methods of competition or unfair or 
deceptive acts or practices, the purpose or effect of which are to 
hinder significantly or prevent an online video distributor from 
providing video programming to consumers, including over any platform 
or device capable of delivering that online video distributor's content 
to consumers.
    ``(b) Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Consumer Choice in Online Video Act, the 
        Commission shall promulgate regulations to implement this 
        section.
            ``(2) Minimum contents.--At a minimum, the regulations 
        under this section shall--
                    ``(A) specify the conduct that constitutes a prima 
                facie violation of subsection (a); and
                    ``(B) establish effective safeguards to prevent a 
                designated distributor from--
                            ``(i) unduly or improperly influencing the 
                        decision of any other entity to make a 
                        television set or other customer premises 
                        equipment incompatible with the services 
                        provided by any online video distributor;
                            ``(ii) unduly or improperly using its own 
                        customer premises equipment to discriminate 
                        against, or otherwise favor its own services 
                        over, the service provided by any online video 
                        distributor;
                            ``(iii) unduly or improperly influencing 
                        the decision of any other entity to sell, or 
                        the prices, terms, and conditions of the sale 
                        of, video programming to any online video 
                        distributor; and
                            ``(iv) providing an incentive to any entity 
                        in an attempt to deny video programming to an 
                        online video distributor.
    ``(c) Exceptions.--
            ``(1) In general.--Subject to paragraph (2), a designated 
        distributor shall not be prohibited from--
                    ``(A) imposing reasonable requirements for 
                creditworthiness, offering of service, and financial 
                stability and standards regarding character and 
                technical quality;
                    ``(B) establishing different prices, terms, and 
                conditions to take into account economies of scale, 
                cost savings, or other direct and legitimate economic 
                benefits reasonably attributable to the number of 
                subscribers served by the online video distributor; and
                    ``(C) imposing reasonable requirements to ensure 
                the security of the video programming being provided to 
                the online video distributor, including means to 
                authenticate the right of the distributor's subscribers 
                to access the programming.
            ``(2) Limitations.--An exception under paragraph (1)--
                    ``(A) shall be related to the substantial, real, 
                and legitimate business concerns of the designated 
                distributor; and
                    ``(B) may not be used in an anticompetitive manner.
    ``(d) Definition of Designated Distributor.--
            ``(1) In general.--In this section, the term `designated 
        distributor' means--
                    ``(A) a multichannel video programming distributor 
                affiliated with an Internet service provider;
                    ``(B) an online video distributor affiliated with 
                an Internet service provider; or
                    ``(C) a video programming vendor with significant 
                market power.
            ``(2) Significant market power.--The Commission shall 
        establish rules for determining whether a video programming 
        vendor has significant market power under paragraph (1)(C).

``SEC. 664. ACCESS TO VIDEO PROGRAMMING.

    ``(a) Prohibitions.--It shall be unlawful for a multichannel video 
programming distributor or an online video distributor--
            ``(1) to include in a contract with any video programming 
        vendor a provision that serves as a substantial disincentive 
        for the video programming vendor to sell its content to an 
        online video distributor;
            ``(2) to use any practice, understanding, arrangement, or 
        other agreement with a video programming vendor that has the 
        effect of causing the video programming vendor to face a 
        substantial disincentive to sell its content to an online video 
        distributor; or
            ``(3) to enter into a contract with a video programming 
        vendor that has the effect of preventing an online video 
        distributor from making the video programming vendor's content 
        available on any platform or device capable of delivering that 
        distributor's content to its subscribers.
    ``(b) Contract Limitations.--A multichannel video programming 
distributor or an online video distributor may not include in any 
contract with a video programming vendor any provision that requires 
the multichannel video programming distributor or online video 
distributor, as applicable, to be treated in material parity with other 
similarly situated multichannel video programming distributors or 
online video distributors with regard to pricing or other terms and 
conditions of carriage of video programming.
    ``(c) Retaliation Prohibited.--A multichannel video programming 
distributor or an online video distributor may not retaliate against--
            ``(1) any video programming vendor for making its video 
        programming available to an online video distributor;
            ``(2) any online video distributor for obtaining video 
        programming from a video programming vendor; or
            ``(3) any entity for exercising a right under this Act.
    ``(d) Exception.--Notwithstanding subsection (a) or any other 
provision of this part, a multichannel video programming distributor or 
an online video distributor may enter into an exclusive contract with a 
video programming vendor for video programming provided by that video 
programming vendor if the contract does not exceed the limits or 
violate the prohibitions under subsection (e).
    ``(e) Public Interest Limitations on Exclusive Contracts.--
            ``(1) In general.--The Commission shall adopt limits on--
                    ``(A) the ability of a multichannel video 
                programming distributor or an online video distributor 
                to enter into any contract for video programming that 
                includes an exclusivity provision that substantially 
                deters the development of an online video distribution 
                alternative; and
                    ``(B) the ability of an online video distributor to 
                enter into any contract for video programming that 
                includes an exclusivity provision that substantially 
                deters the development of an online video distribution 
                alternative.
            ``(2) Prohibited contracts.--The Commission shall 
        prohibit--
                    ``(A) a multichannel video programming distributor 
                from entering into an exclusive contract with a video 
                programming vendor that is affiliated with the 
                multichannel video programming distributor; and
                    ``(B) an online video distributor from entering 
                into an exclusive contract with a video programming 
                vendor that is affiliated with the online video 
                distributor.
            ``(3) Limitations on other exclusive contracts for video 
        programming.--
                    ``(A) In general.--The Commission shall establish 
                criteria for determining whether an exclusive contract 
                for programming substantially deters the development of 
                an online video distribution alternative.
                    ``(B) Considerations.--In establishing the criteria 
                under subparagraph (A), the Commission shall consider 
                the totality of the circumstances surrounding the 
                contract, including--
                            ``(i) the duration of the exclusivity 
                        period;
                            ``(ii) the effect of the exclusive contract 
                        on capital investment in the production and 
                        distribution of video programming;
                            ``(iii) the time period after initial 
                        first-day distribution of video programming to 
                        consumers when the multichannel video 
                        programming distributor or the online video 
                        distributor is granted exclusive access to 
                        distribute the programming; and
                            ``(iv) the likelihood that the exclusive 
                        contract will enhance diversity in programming 
                        on video distribution platforms.
    ``(f) Online Distribution of Content by a Video Programming 
Vendor.--
            ``(1) In general.--A multichannel video programming 
        distributor or an online video distributor may not enter into 
        an agreement that limits or prohibits a video programming 
        vendor from making its video content available to consumers 
        free over the Internet.
            ``(2) Exception.--The prohibition under paragraph (1) shall 
        not apply if the duration of the agreement is 30 days or less.
    ``(g) Prices, Terms, and Conditions for Programming.--A video 
programming vendor may establish different prices, terms, and 
conditions for its video programming if, taking into account economies 
of scale, cost savings, or other direct and legitimate economic 
benefits that are reasonably attributable to the number of subscribers 
served by an online video distributor, the prices, terms, and 
conditions--
            ``(1) are related to substantial, real, and legitimate 
        business concerns of the video programming vendor; and
            ``(2) are not used in an anticompetitive manner.
    ``(h) Regulations.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Consumer Choice in Online Video Act, the 
        Commission shall promulgate regulations to specify particular 
        conduct that is prohibited by this section.
            ``(2) Minimum contents.--The regulations under this section 
        shall establish, at a minimum--
                    ``(A) effective safeguards to prevent any activity 
                prohibited by this section; and
                    ``(B) complaint and contract review procedures to 
                facilitate the Commission's ability to determine if a 
                multichannel video programming distributor, a video 
                programming vendor, or an online video distributor has 
                violated this section.
    ``(i) Existing Contracts.--
            ``(1) In general.--Subject to paragraph (2), nothing in 
        this section shall affect any contract, understanding, or 
        arrangement that was entered into on or before December 1, 
        2013.
            ``(2) Exceptions.--No contract, understanding, or 
        arrangement entered into on or before December 1, 2013, that 
        violates this section shall be enforceable by any person after 
        the date that is 3 years after the date of enactment of the 
        Consumer Choice in Online Video Act.
            ``(3) Limitation on renewals.--A contract, understanding, 
        or arrangement that was entered into on or before December 1, 
        2013, but that is renewed or extended after the date of 
        enactment of the Consumer Choice in Online Video Act shall not 
        be exempt under paragraph (1).

``SEC. 665. FOSTERING ACCESS TO VIDEO PROGRAMMING.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of the Consumer Choice in Online Video Act, the Commission 
shall commence a proceeding to determine the additional steps it should 
take, in the public interest, to foster the ability of online video 
distributors to gain access to video programming, offer innovative 
services, and compete with multichannel video programming distributors.
    ``(b) Limitation.--The Commission shall not compel a video 
programming vendor to sell its video programming to an online video 
distributor as part of any rules adopted under this section.

``SEC. 666. BROADCAST TELEVISION LICENSEES AND TELEVISION NETWORKS.

    ``(a) Duty To Negotiate.--It shall be unlawful for a broadcast 
television licensee or television network--
            ``(1) to refuse to negotiate with an online video 
        distributor for carriage of the broadcast television licensee's 
        or the television network's content, as applicable; or
            ``(2) to place any restriction on an online video 
        distributor's ability to make the broadcast television 
        licensee's or the television network's content, as applicable, 
        available on any platform or device that is capable of 
        delivering the online video distributor's content to its 
        subscribers.
    ``(b) Refusal To Negotiate; Commission Determination.--The 
Commission shall determine what constitutes a refusal to negotiate 
under subsection (a). The Commission may require a broadcast television 
licensee or television network to engage in good faith negotiations 
with an online video distributor. The Commission shall define good 
faith for purposes of this subsection.
    ``(c) Online Retransmission of In-Market Broadcast Signals.--
            ``(1) Signal parity.--
                    ``(A) In general.--It shall be unlawful for a 
                broadcast television licensee to provide an over-the-
                air signal that differs from a retransmission of that 
                signal provided to a multichannel video programming 
                distributor or an online video distributor.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if--
                            ``(i) the variation in the 2 signals 
                        consists of a change to 1 or more commercial 
                        advertisements of not more than 60 seconds in 
                        duration embedded in a broadcast television 
                        licensee's signal; and
                            ``(ii) the broadcast television licensee is 
                        not using the variation under clause (i) to 
                        increase the overall amount of advertising time 
                        in its over-the-air signal.
            ``(2) Antenna rental services.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this Act, except subparagraph (C), an 
                entity may rent to a consumer access to an individual 
                antenna to view over-the-air broadcast television 
                signals transmitted from that antenna--
                            ``(i) directly to the consumer over the 
                        Internet or another IP-based transmission path; 
                        or
                            ``(ii) to an individual data storage 
                        system, including an online remote data storage 
                        system, for recording and then made accessible 
                        to that consumer through the Internet or 
                        another IP-based transmission path.
                    ``(B) Retransmission consent fees.--An antenna 
                rental service described under subparagraph (A) shall 
                be exempt from paying retransmission consent fees under 
                section 325 of this Act to any broadcast television 
                station whose signal is received by the individual 
                antenna and retransmitted to the subscriber.
                    ``(C) Conditions of rental services.--An antenna 
                rental service described under subparagraph (A) shall--
                            ``(i) only provide a subscriber with access 
                        to over-the-air broadcast television signals 
                        received by an individual antenna located in 
                        the same designated market area (as defined in 
                        section 671 of this Act) in which that 
                        subscriber resides; and
                            ``(ii) make available to a subscriber all 
                        over-the-air broadcast signals that are 
                        received by the individual antenna rented by 
                        that subscriber, unless a signal is of such 
                        poor quality that it cannot be transmitted to 
                        the consumer in a reasonably viewable form.
    ``(d) Limits in Existing Programming and Affiliation Contracts.--
            ``(1) In general.--It shall be unlawful for any entity 
        selling or otherwise providing video programming to be 
        transmitted by a broadcast television licensee or television 
        network to include in any contract, agreement, understanding, 
        or arrangement with that licensee or network a limitation on 
        the ability of that licensee or network to comply with the 
        requirements of this section.
            ``(2) Existing contracts.--
                    ``(A) In general.--Subject to subparagraph (B), 
                nothing in this section shall affect any contract, 
                understanding, or arrangement that was entered into on 
                or before December 1, 2013.
                    ``(B) Exceptions.--No contract, understanding, or 
                arrangement entered into on or before December 1, 2013, 
                that violates this section shall be enforceable by any 
                person after the date that is 3 years after the date of 
                enactment of the Consumer Choice in Online Video Act.
                    ``(C) Limitation on renewals.--A contract, 
                understanding, or arrangement that was entered into on 
                or before December 1, 2013, but that is renewed or 
                extended after the date of enactment of the Consumer 
                Choice in Online Video Act shall not be exempt under 
                subparagraph (A).
    ``(e) Regulations.--Not later than 1 year after the date of 
enactment of the Consumer Choice in Online Video Act, the Commission 
shall promulgate regulations to implement this section. The Commission 
shall not compel a broadcast television licensee or television network 
to sell its video programming to an online video distributor as part of 
any rules adopted under this section.

``SEC. 667. CONSUMER ACCESS TO CONTENT.

    ``(a) In General.--It shall be unlawful for a designated Internet 
service provider to engage in unfair methods of competition or unfair 
or deceptive acts or practices, the purpose or effect of which are to 
hinder significantly or to prevent an online video distributor from 
providing video programming to a consumer.
    ``(b) Regulations.--Not later than 1 year after the date of 
enactment of the Consumer Choice in Online Video Act, the Commission 
shall promulgate regulations to specify particular conduct that is 
prohibited by subsection (a). The Commission's regulations under this 
section shall ensure, at a minimum, that a designated Internet service 
provider does not--
            ``(1) block, degrade, or otherwise impair any content 
        provided by an online video distributor;
            ``(2) unreasonably discriminate in transmitting the content 
        of an unaffiliated online video distributor over the designated 
        Internet service provider's network;
            ``(3) provide benefits in the transmission of the video 
        content of any company affiliated with the Internet service 
        provider through specialized services or other means, or 
        otherwise leverage its ownership of the physical delivery 
        architecture to benefit that affiliated company in a way that 
        has the effect of harming competition from an unaffiliated 
        online video distributor; or
            ``(4) use billing systems, such as usage-based billing, in 
        a way that deters competition from unaffiliated online video 
        distributors that may be in competition with the Internet 
        service provider's or its affiliate's services.
    ``(c) Definition of Designated Internet Service Provider.--In this 
section, the term `designated Internet service provider' means an 
Internet service provider that is affiliated with a multichannel video 
programming distributor, an online video distributor, or a video 
programming vendor.

``SEC. 668. BLOCKING CONSUMER ACCESS TO ONLINE VIDEO PROGRAMMING.

    ``(a) In General.--No video programming vendor that has made 
available its video programming to consumers online may restrict access 
to that online video programming for a subscriber of a multichannel 
video programming distributor or its affiliate, or an online video 
distributor or its affiliate, during the time that vendor is involved 
in a dispute with such distributor.
    ``(b) Exception.--
            ``(1) In general.--If a video programming vendor requires a 
        consumer to purchase access to its online video programming 
        through a contract with a multichannel video programming 
        distributor or an online video distributor then that vendor may 
        restrict access to that online video programming during the 
        time that the vendor is involved in a dispute with that 
        distributor.
            ``(2) Limitation.--The exception under this subsection 
        shall apply only to a subscriber to video services provided by 
        a multichannel video programming distributor or an online video 
        distributor involved in the dispute and not to a subscriber to 
        any other service provided by that distributor or its 
        affiliate.
    ``(c) Remedies.--
            ``(1) In general.--Any entity that is aggrieved by a 
        violation of this section may bring a civil action in a United 
        States district court or in any other court of competent 
        jurisdiction.
            ``(2) Authority.--The court may--
                    ``(A) grant a temporary or final injunction on such 
                terms as it may deem reasonable to prevent or restrain 
                violations of this section;
                    ``(B) award any damages it deems appropriate; and
                    ``(C) direct the recovery of full costs, including 
                awarding reasonable attorneys' fees to an aggrieved 
                party who prevails.
    ``(d) Definitions.--In this section:
            ``(1) Available online.--The term `available online' means 
        both available over the Internet and through applications, 
        software, or other similar services on a mobile device.
            ``(2) Dispute.--The term `dispute' includes--
                    ``(A) a dispute over carriage of the programming 
                provided by a video programming vendor to a 
                multichannel video programming distributor or online 
                video distributor; and
                    ``(B) a dispute over carriage of the programming 
                provided by a television licensee or television network 
                under section 325(b) of this Act.
            ``(3) Entity that is aggrieved.--The term `entity that is 
        aggrieved' includes--
                    ``(A) a consumer whose access to online video 
                programming has been restricted in violation of this 
                section; and
                    ``(B) a multichannel video programming distributor 
                or its affiliate, or an online video distributor or its 
                affiliate, that has had a subscriber's access to online 
                video programming restricted in violation of this 
                section.

``SEC. 669. REMEDIES AND ADJUDICATIONS.

    ``(a) Adjudicatory Proceedings.--Any online video distributor 
aggrieved by conduct that it alleges constitutes a violation of this 
part, or the regulations of the Commission under this part, may 
commence an adjudicatory proceeding at the Commission.
    ``(b) Remedies.--
            ``(1) Remedies authorized.--
                    ``(A) Interim remedies.--The Commission may 
                authorize interim remedies during the pendency of a 
                complaint.
                    ``(B) Appropriate remedies.--Upon completion of an 
                adjudicatory proceeding under this section, the 
                Commission shall have the power to order appropriate 
                remedies, including, if necessary, the power to 
                establish prices, terms, and conditions of sale of 
                programming to the aggrieved online video distributor.
            ``(2) Additional remedies.--The remedies provided in 
        paragraph (1) are in addition to and not in lieu of the 
        remedies available under title V or any other provision of this 
        Act.
    ``(c) Procedures.--In promulgating regulations to implement this 
part, the Commission shall--
            ``(1) provide for an expedited review of any complaint made 
        under this part, including a procedural timeline to conclude 
        the review of each complaint not later than 180 days after the 
        date the complaint is filed;
            ``(2) establish procedures for the Commission to collect 
        any data, including the right to obtain copies of all contracts 
        and documents reflecting any practice, understanding, 
        arrangement, or agreement alleged to violate this part, as the 
        Commission requires to carry out this part; and
            ``(3) provide for penalties to be assessed against any 
        person filing a frivolous complaint under this part.''.

SEC. 202. FEDERAL COMMUNICATIONS COMMISSION REPORT ON PEERING.

    (a) In General.--The Commission shall study--
            (1) the status of peering, transit, and interconnection 
        agreements related to the transport and delivery of content 
        over the Internet and other IP-based transmission paths; and
            (2) what impact the agreements under paragraph (1) or 
        disputes about the agreements under paragraph (1) have on 
        consumers and competition with respect to online video.
    (b) Report.--Not later than 3 years after the date of enactment of 
this Act, the Commission shall report the findings of the study under 
subsection (a) to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Energy and Commerce 
of the House of Representatives.

    TITLE III--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING 
                              DISTRIBUTORS

SEC. 301. NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING 
              DISTRIBUTORS.

    Title VI of the Communications Act of 1934 (47 U.S.C. 521 et seq.), 
as amended by title II of this Act, is further amended by adding at the 
end the following:

    ``PART VII--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING 
                              DISTRIBUTORS

``SEC. 671. DEFINITIONS.

    ``In this part:
            ``(1) Designated market area.--The term `designated market 
        area' means a designated market area as determined by Nielsen 
        Media Research or by any successor system of dividing broadcast 
        television licensees into local markets that the Commission 
        determines is equivalent to the designated market area system 
        created by Nielsen Media Research.
            ``(2) Local commercial television station.--The term `local 
        commercial television station' means, with respect to a 
        subscriber to a non-facilities based multichannel video 
        programming distributor, any full power commercial television 
        station licensed and operating on a channel regularly assigned 
        to a community in the same designated market area as the 
        subscriber.
            ``(3) Local noncommercial educational television station.--
        The term `local noncommercial educational television station' 
        means, with respect to a subscriber to a non-facilities based 
        multichannel video programming distributor, a television 
        broadcast station that is a noncommercial educational broadcast 
        station (as defined in section 397 of this Act), licensed and 
        operating on a channel regularly assigned to a community in the 
        same designated market area as the subscriber.
            ``(4) Non-local commercial television station.--The term 
        `non-local commercial television station' means, with respect 
        to a subscriber to a non-facilities based multichannel video 
        programming distributor, any full power commercial television 
        station licensed and operating on a channel regularly assigned 
        to a community not located in the same designated market area 
        as the subscriber.
            ``(5) Video programming.--The term `video programming' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a television broadcast 
        station, whether or not such programming is delivered using a 
        portion of the electromagnetic frequency spectrum.

``SEC. 672. RIGHT TO ELECT STATUS.

    ``(a) In General.--Any online video distributor that provides 
programming in a manner reasonably equivalent to a multichannel video 
programming distributor may elect to be treated as a non-facilities 
based multichannel video programming distributor under this part.
    ``(b) Procedure for Election.--Not later than 1 year after the date 
of enactment of the Consumer Choice in Online Video Act, the Commission 
shall establish the form and procedures for an online video distributor 
to make the election permitted under subsection (a).
    ``(c) Definition of Reasonably Equivalent.--For purposes of this 
section, the term `reasonably equivalent'--
            ``(1) means providing multiple channels of video 
        programming that allow a subscriber to watch that programming 
        in a fashion comparable to the services provided by 
        multichannel video programming distributors, regardless of the 
        means used to transmit the multiple channels of video 
        programming;
            ``(2) shall be based upon the subscriber experience in 
        using the service provided by the online video distributor, and 
        not the underlying technology used by the online video 
        distributor; and
            ``(3) may include services that include the ability for a 
        subscriber to record video programming and watch recorded 
        programming at another time if the underlying video programming 
        service being recorded conforms to this subsection.

``SEC. 673. EFFECT OF ELECTION.

    ``Any online video distributor that elects to be treated as a non-
facilities based multichannel video programming distributor under 
section 672 shall have all of the rights and responsibilities under 
this part.

``SEC. 674. FEDERAL COMMUNICATIONS COMMISSION PROCEEDING.

    ``(a) In General.--Not later than 1 year after the date of 
enactment of the Consumer Choice in Online Video Act, the Commission 
shall--
            ``(1) determine whether any of its rules and regulations 
        applicable to a multichannel video programming distributor 
        shall also be applied, in the public interest, to a non-
        facilities based multichannel video programming distributor;
            ``(2) require a non-facilities based multichannel video 
        programming distributor to comply with the access to broadcast 
        time requirement under section 312(a)(7) of this Act and the 
        use of facilities requirements under section 315 of this Act;
            ``(3) consider whether it is in the public interest for the 
        Commission to adopt minimum technical quality standards for a 
        non-facilities based multichannel video programming 
        distributor; and
            ``(4) adopt any other rules the Commission considers 
        necessary to implement this part.
    ``(b) Limitation.--The Commission shall not require, as part of its 
rulemaking under subsection (a), a non-facilities based multichannel 
video programming distributor to comply with the basic tier and tier 
buy-through requirement under section 623(b)(7).

``SEC. 675. PROGRAM ACCESS FOR NON-FACILITIES BASED MULTICHANNEL VIDEO 
              PROGRAMMING DISTRIBUTORS.

    ``(a) In General.--The Commission shall prohibit practices, 
understandings, arrangements, and activities, including any exclusive 
contract for video programming between a multichannel video programming 
distributor and a video programming vendor or an online video 
distributor and a video programming vendor that prevents a non-
facilities based multichannel video programming distributor from 
obtaining programming from any video programming vendor.
    ``(b) Specific Actions Prohibited.--
            ``(1) Material parity restrictions.--A multichannel video 
        programming distributor or an online video distributor may not 
        include in any contract with a video programming vendor any 
        provision that requires the multichannel video programming 
        distributor or online video distributor, as applicable, to be 
        treated in material parity with other similarly situated 
        multichannel video programming distributors or online video 
        distributors with regard to pricing or other terms and 
        conditions of carriage of video programming.
            ``(2) Retaliation prohibited.--A multichannel video 
        programming distributor or an online video distributor may not 
        retaliate against--
                    ``(A) any video programming vendor for making its 
                video programming available to a non-facilities based 
                multichannel video programming distributor;
                    ``(B) any non-facilities based multichannel video 
                programming distributor for obtaining video programming 
                from a video programming vendor; or
                    ``(C) any entity for exercising a right under this 
                Act.

``SEC. 676. CONSUMER CHOICE IN VIDEO PROGRAMMING.

    ``(a) In General.--As part of the rulemaking required by section 
674, the Commission shall determine what, if any, additional steps it 
should take, in the public interest, to allow a non-facilities based 
multichannel video programming vendor to offer a subscriber greater 
choice over the video programming that is part of the subscriber's 
service.
    ``(b) Considerations.--As part of the proceeding under subsection 
(a), the Commission shall consider whether to limit a video programming 
vendor's use of certain contractual terms and conditions that 
disincentivize or impede the ability of a subscriber to have greater 
choice over the video programming packages or options the subscriber 
can purchase from a non-facilities based multichannel video programming 
vendor.
    ``(c) Limitation.--The Commission shall not compel a video 
programming vendor to sell its video programming to a non-facilities 
based multichannel video programming vendor as part of any rules 
adopted under this section.

``SEC. 677. CARRIAGE OF COMMERCIAL BROADCAST TELEVISION SIGNALS.

    ``(a) In-Market Broadcast Television Signals.--
            ``(1) In general.--At the request of a non-facilities based 
        multichannel video programming distributor serving a designated 
        market area, a local commercial television broadcast station 
        located in that designated market area shall enter into 
        negotiations for carriage of its content over that 
        distributor's system.
            ``(2) Good faith requirements.--A local commercial 
        television station subject to the duty to negotiate under 
        paragraph (1) shall engage in good faith negotiations for 
        carriage of its signal in the designated marketed area where 
        the station is located. The Commission shall define good faith 
        for purposes of this paragraph.
            ``(3) Good signal requirements.--A local commercial 
        television broadcast station being carried by a non-facilities 
        based multichannel video programming distributor under this 
        subsection shall be responsible for delivering a good quality 
        signal suitable for distribution by that distributor.
    ``(b) Out-of-Market Broadcast Television Signals.--
            ``(1) In general.--In addition to any signal carried under 
        subsection (a), a non-facilities based multichannel video 
        programming distributor also may deliver to a subscriber the 
        signal of a non-local commercial broadcast television station 
        under this subsection and subsection (c).
            ``(2) Deemed significantly viewed.--
                    ``(A) In general.--A signal of a non-local 
                commercial broadcast television station delivered by a 
                non-facilities based multichannel video programming 
                distributor under this section shall be deemed to be 
                significantly viewed within the meaning of section 
                76.54 of title 47, Code of Federal Regulations.
                    ``(B) Exemptions.--The following regulations shall 
                not apply to a signal that is eligible to be carried 
                under this subsection:
                            ``(i) Section 76.92 of title 47, Code of 
                        Federal Regulations (relating to cable network 
                        non-duplication).
                            ``(ii) Section 76.122 of title 47, Code of 
                        Federal Regulations (relating to satellite 
                        network non-duplication).
                            ``(iii) Section 76.101 of title 47, Code of 
                        Federal Regulations (relating to cable 
                        syndicated program exclusivity).
                            ``(iv) Section 76.123 of title 47, Code of 
                        Federal Regulations (relating to satellite 
                        syndicated program exclusivity).
                            ``(v) Section 76.111 of title 47, Code of 
                        Federal Regulations (relating to cable sports 
                        blackout).
                            ``(vi) Section 76.127 of title 47, Code of 
                        Federal Regulations (relating to satellite 
                        sports blackout).
            ``(3) Subscriber preference.--In delivering a non-local 
        commercial broadcast television station signal to a subscriber 
        under this subsection, and consistent with subsection (c)--
                    ``(A) the non-facilities based multichannel video 
                programming distributor shall provide the subscriber 
                with information regarding all signals that the 
                distributor is capable of making available to the 
                subscriber under this subsection;
                    ``(B) the non-facilities based multichannel video 
                programming distributor shall offer a subscriber the 
                option to choose each non-local commercial television 
                station signal the subscriber wants to receive as part 
                of the subscriber's service; and
                    ``(C) if a subscriber does not make a choice under 
                subparagraph (B), the non-facilities based multichannel 
                video programming distributor shall take reasonable 
                steps to deliver to the subscriber the signal of each 
                non-local commercial television station that is closest 
                in proximity.
            ``(4) Definition of closest in proximity.--
                    ``(A) In general.--For purposes of paragraph (3), 
                the term `closest in proximity' means the non-local 
                commercial television station whose community of 
                license is the closest in distance to the subscriber's 
                place of residence.
                    ``(B) Inclusions.--For purposes of paragraph (3), 
                the term `closest in proximity' includes a non-local 
                commercial television station located in a State other 
                than the State of the subscriber's place of residence.
    ``(c) Subscriber Rights.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a subscriber to a non-facilities based multichannel video 
        programming distributor shall be entitled to receive 
        programming from not more than 2 commercial television stations 
        that are affiliates of the same television network and not more 
        than 1 of the affiliates may be located in a designated market 
        area where the subscriber does not reside.
            ``(2) Local signal not required.--A non-facilities based 
        multichannel video programming distributor shall not be 
        required to carry the signal of a local commercial television 
        station under subsection (a) as a condition to carrying and 
        delivering to a consumer a non-local commercial broadcast 
        television signal under subsection (b).
            ``(3) Mobile platforms.--A subscriber shall have the right 
        to view any commercial television station signal provided to 
        that subscriber under this section at any time and on any 
        device, including a mobile device and any other device not 
        permanently located in the subscriber's place of residence, 
        that a non-facilities based multichannel video programming 
        distributor has made capable of delivering the distributor's 
        service to that subscriber.
    ``(d) Limits in Existing Programming and Affiliation Contracts.--
            ``(1) In general.--It shall be unlawful for any entity 
        selling or otherwise providing video programming to be 
        transmitted by a local or non-local commercial television 
        station to include in any contract, agreement, understanding, 
        or arrangement with that station a limitation on the ability of 
        the station to comply with the requirements of this section.
            ``(2) Existing contracts.--
                    ``(A) In general.--Subject to subparagraph (B), 
                nothing in this section shall affect any contract, 
                understanding, or arrangement that was entered into on 
                or before December 1, 2013.
                    ``(B) Exceptions.--No contract, understanding, or 
                arrangement entered into on or before December 1, 2013, 
                that violates this section shall be enforceable by any 
                person after the date that is 3 years after the date of 
                enactment of the Consumer Choice in Online Video Act.
                    ``(C) Limitation on renewals.--A contract, 
                understanding, or arrangement that was entered into on 
                or before December 1, 2013, but that is renewed or 
                extended after the date of enactment of the Consumer 
                Choice in Online Video Act shall not be exempt under 
                subparagraph (A).

``SEC. 678. CARRIAGE OF NONCOMMERCIAL, EDUCATIONAL, AND INFORMATIONAL 
              PROGRAMMING.

    ``(a) Local Noncommercial Educational Television Stations.--
            ``(1) In general.--If a non-facilities based multichannel 
        video programming distributor elects to carry a local 
        commercial broadcast television signal under section 677(a), 
        that non-facilities based multichannel video programming 
        distributor shall carry, upon request, the signal of a local 
        noncommercial educational television station located in the 
        same designated market area of the local commercial television 
        broadcast station being carried under that section.
            ``(2) Carriage only in local market.--
                    ``(A) In general.--A local noncommercial 
                educational television station shall be entitled to 
                carriage only in the designated market area to which 
                that station is assigned.
                    ``(B) Systems of noncommercial educational 
                broadcast stations.--In the case of a system of 3 or 
                more noncommercial educational broadcast stations 
                licensed to a single State, public agency, or 
                political, educational, or special purpose subdivision 
                of a State, the carriage right under this subsection 
                shall apply to any designated market area in the State 
                where that system is located.
            ``(3) Good signal requirements.--A local noncommercial 
        educational television station that requests to be carried by a 
        non-facilities based multichannel video programming distributor 
        under paragraph (1) shall be responsible for delivering a good 
        quality signal suitable for distribution by that distributor.
    ``(b) Channel Reservation Requirements.--
            ``(1) In general.--The Commission shall require a non-
        facilities based multichannel video programming distributor to 
        reserve a portion of its channel capacity, equal to not less 
        than 3.5 percent or not more than 7 percent, exclusively for 
        noncommercial programming of an educational or informational 
        nature.
            ``(2) Use of unused channel capacity.--A non-facilities 
        based multichannel video programming distributor may use for 
        any purpose any unused channel capacity required to be reserved 
        under this subsection pending the actual use of that channel 
        capacity for noncommercial programming of an educational or 
        informational nature.
            ``(3) Prices, terms, and conditions.--A non-facilities 
        based multichannel video programming distributor shall meet the 
        requirements of this subsection by making channel capacity 
        available to each national educational programming supplier, 
        upon reasonable prices, terms, and conditions, as determined by 
        the Commission under paragraph (5).
            ``(4) Editorial control.--A non-facilities based 
        multichannel video programming distributor may not exercise any 
        editorial control over any video programming provided under 
        this subsection.
            ``(5) Limitations.--In determining reasonable prices under 
        paragraph (3)--
                    ``(A) the Commission, among other considerations, 
                shall consider the nonprofit character of the 
                programming provider and any Federal funds used to 
                support that programming;
                    ``(B) the Commission shall not permit the prices to 
                exceed, for any channel capacity made available under 
                this subsection, 50 percent of the total direct costs 
                of making the channel capacity available; and
                    ``(C) in the calculation of total direct costs, the 
                Commission shall exclude--
                            ``(i) the marketing costs, general 
                        administrative costs, and similar overhead 
                        costs of the non-facilities based multichannel 
                        video programming distributor; and
                            ``(ii) the revenue that the non-facilities 
                        based multichannel video programming 
                        distributor might have obtained by making that 
                        channel capacity available to a video 
                        programming vendor.
            ``(6) Definition of channel capacity.--In this section, the 
        term `channel capacity' means the total number of channels of 
        video programming provided to a subscriber by the non-
        facilities based multichannel video programming distributor, 
        without regard to whether that non-facilities based 
        multichannel video programming distributor uses a portion of 
        the electromagnetic frequency spectrum to deliver that channel 
        of video programming.

``SEC. 679. LICENSING.

    ``(a) In General.--A non-facilities based multichannel video 
programming distributor that is carrying any broadcast television 
station signal under section 677 or section 678 shall--
            ``(1) be considered to be a cable system under section 111 
        of title 17, United States Code; and
            ``(2) be subject to--
                    ``(A) the statutory licensing requirements set 
                forth in sections 111(c) and 111(e) of that title;
                    ``(B) payment of the fees required by section 
                111(d) of that title; and
                    ``(C) the penalties under section 111 of that title 
                for failure to pay the fees required by that section.
    ``(b) Local Service Area of a Primary Transmitter.--For purposes of 
the application of section 111 of title 17, United States Code, to a 
non-facilities based multichannel video programming distributor under 
this section--
            ``(1) a local commercial television station's local service 
        area of a primary transmitter shall consist of the entirety of 
        that station's designated market area; and
            ``(2) a local noncommercial educational television 
        station's local service area of a primary transmitter shall 
        consist of the entirety of that station's designated market 
        area.

``SEC. 680. EXCLUSION FROM FRANCHISE REQUIREMENTS.

    ``A non-facilities based multichannel video programming distributor 
shall not be subject to local franchising requirements under section 
621 of this Act or otherwise be regulated by any franchising authority.

``SEC. 681. PRIVACY PROTECTIONS.

    ``(a) In General.--A non-facilities based multichannel video 
programming distributor shall comply with the privacy protections 
applicable to satellite services as set forth in section 338(i) of this 
Act and the Commission's regulations under that section.
    ``(b) Penalties.--Any non-facilities based multichannel video 
programming distributor that fails to comply with the provisions under 
section 338(i) of this Act, and the Commission's regulations under that 
section, shall be subject to the penalties set forth in section 
338(i)(7) of this Act.

``SEC. 682. CONSUMER EQUIPMENT.

    ``Not later than 1 year after the date of enactment of the Consumer 
Choice in Online Video Act, the Commission shall commence a proceeding 
to consider whether to adopt rules--
            ``(1) to establish standards to ensure that services and 
        platforms provided by a non-facilities based multichannel video 
        programming distributor can interconnect and interface with--
                    ``(A) any Internet-capable television and 
                television receiver; and
                    ``(B) any other Internet-capable consumer 
                electronics equipment that facilitates the viewing of 
                video programming on a television receiver; and
            ``(2) to promote the commercial availability of other 
        devices that will permit a consumer to access non-facilities 
        based multichannel video programming distribution services and 
        platforms over equipment of the consumer's choice.

``SEC. 683. EFFECTIVE COMPETITION STANDARD.

    ``The number of households subscribing to a non-facilities based 
multichannel video programming distributor in a franchise area under 
this part shall not be considered for purposes of a determination by 
the Commission of whether a cable system is subject to effective 
competition in that franchise area under section 623 of this Act.

``SEC. 684. REMEDIES AND ADJUDICATIONS.

    ``(a) Adjudicatory Proceedings.--Any entity aggrieved by conduct 
that it alleges constitutes a violation of this part, or the 
regulations of the Commission under this part, may commence an 
adjudicatory proceeding at the Commission.
    ``(b) Remedies.--
            ``(1) Remedies authorized.--
                    ``(A) Interim remedies.--The Commission may 
                authorize interim remedies during the pendency of a 
                complaint.
                    ``(B) Appropriate remedies.--Upon completion of an 
                adjudicatory proceeding under this section, the 
                Commission shall have the power to order appropriate 
                remedies, including, if necessary, the power to 
                establish prices, terms, and conditions of sale of 
                programming to, or prices, terms, and conditions of the 
                transport of the content of, the aggrieved entity.
            ``(2) Additional remedies.--The remedies provided in 
        paragraph (1) are in addition to and not in lieu of the 
        remedies available under title V or any other provision of this 
        Act.
    ``(c) Procedures.--In promulgating regulations to implement this 
part, the Commission shall--
            ``(1) provide for an expedited review of any complaint made 
        under this part, including a procedural timeline to conclude 
        the review of each complaint not later than 180 days after the 
        date the complaint is filed;
            ``(2) establish procedures for the Commission to collect 
        any data, including the right to obtain copies of all contracts 
        and documents reflecting any practice, understanding, 
        arrangement, or agreement alleged to violate this part, as the 
        Commission requires to carry out this part; and
            ``(3) provide for penalties to be assessed against any 
        person filing a frivolous complaint under this part.''.

                        TITLE IV--MISCELLANEOUS

SEC. 401. TECHNICAL AND CONFORMING AMENDMENTS.

    Section 602(20) of title VI of the Communications Act of 1934 (47 
U.S.C. 522(20)) is amended by inserting ``unless expressly provided 
otherwise,'' before ``the term `video programming' means''.

SEC. 402. PROVISIONS AS COMPLEMENTARY.

    The provisions of this Act are in addition to, and shall not affect 
the operation of, other Federal, State, or local laws or regulations 
regulating billing for Internet service, online video distribution, or 
non-facilities based multichannel video programming distributors, 
except if the provisions of any other law are inconsistent with the 
provisions of this Act, the provisions of this Act shall be 
controlling.

SEC. 403. APPLICABILITY OF ANTITRUST LAWS.

    Nothing in this Act or the amendments made by this Act shall be 
construed to alter or restrict in any manner the applicability of any 
Federal or State antitrust law.

SEC. 404. SEVERABILITY.

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