In the House of Representatives, U. S.,

August 16, 1994.

Resolved, That the bill from the Senate (S. 1485) entitled ‘‘An Act to extend certain satellite carrier compulsory licenses, and for other purposes’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Satellite Home Viewer

3 Act of 1994’’.

4 SEC. 2. STATUTORY LICENSE FOR SATELLITE CARRIERS.

5 Section 119 of title 17, United States Code, is amended

6 as follows:

7 (1) Subsection (a)(2)(C) is amended—

8 (A) by striking ‘‘90 days after the effective

9 date of the Satellite Home Viewer Act of 1988,

10 or’’;

11 (B) by striking ‘‘whichever is later,’’;

12 (C) by inserting ‘‘name and’’ after ‘‘identi13 fying (by’’ each place it appears; and

14 (D) by striking ‘‘, on or after the effective

15 date of the Satellite Home Viewer Act of 1988,’’.
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1 (2) Subsection (a)(5) is amended by adding at

2 the end the following:

3 ‘‘(D) BURDEN OF PROOF.—In any action

4 brought under this paragraph, the satellite car5 rier shall have the burden of proving that its sec6 ondary transmission of a primary transmission

7 by a network station is for private home viewing

8 to an unserved household.’’.

9 (3) Subsection (b)(1)(B) is amended—

10 (A) in clause (i) by striking ‘‘12 cents’’ and

11 inserting ‘‘17.5 cents per subscriber in the case

12 of superstations not subject to syndicated exclu13 sivity under the regulations of the Federal Com14 munications Commission, and 14 cents per sub15 scriber in the case of superstations subject to

16 such syndicated exclusivity’’; and

17 (B) in clause (ii) by striking ‘‘3’’ and in18 serting ‘‘6’’.

19 (4) Subsection (c) is amended—

20 (A) in paragraph (1) by striking ‘‘December

21 31, 1992,’’;

22 (B) in paragraph (2)—

23 (i) in subparagraph (A) by striking

24 ‘‘July 1, 1991’’ and inserting ‘‘January 1,

25 1996’’; and
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1 (ii) in subparagraph (D) by striking

2 ‘‘December 31, 1994’’ and inserting ‘‘De3 cember 31, 1999, or in accordance with the

4 terms of the agreement, whichever is later’’;

5 and

6 (C) in paragraph (3)—

7 (i) in subparagraph (A) by striking

8 ‘‘December 31, 1991’’ and inserting ‘‘July

9 1, 1996’’;

10 (ii) by amending subparagraph (D) to

11 read as follows:

12 ‘‘(D) ESTABLISHMENT OF FAIR MARKET

13 RATES.—In determining royalty fees under this

14 paragraph, the Arbitration Panel shall establish

15 a rate, for the secondary transmission of network

16 stations and superstations, that reflects the fair

17 market value of such secondary transmissions.

18 The Arbitration Panel shall base its decision

19 upon economic, competitive, and programming

20 information presented by the parties, and shall

21 take into account the competitive environment in

22 which such programming is distributed.’’;

23 (iii) in subparagraph (E) by striking

24 ‘‘60’’ and inserting ‘‘180’’; and
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1 (iv) in subparagraph (G) by striking

2 ‘‘, or until December 31, 1994’’.

3 (5) Subsection (a) is amended—

4 (A) in paragraph (5)(C) by striking ‘‘the

5 Satellite Home Viewer Act of 1988’’ and insert6 ing ‘‘this section’’; and

7 (B) by adding at the end the following:

8 ‘‘(8) TRANSITIONAL SIGNAL INTENSITY MEAS9 UREMENT PROCEDURES.—

10 ‘‘(A) IN GENERAL.—Subject to subpara11 graph (C), upon a challenge by a network station

12 regarding whether a subscriber is an unserved

13 household within the predicted Grade B Contour

14 of the station, the satellite carrier shall, within

15 60 days after the receipt of the challenge—

16 ‘‘(i) terminate service to that household

17 of the signal that is the subject of the chal18 lenge, and within 30 days thereafter notify

19 the network station that made the challenge

20 that service to that household has been ter21 minated; or

22 ‘‘(ii) conduct a measurement of the sig23 nal intensity of the subscriber’s household to

24 determine whether the household is an

25 unserved household.
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1 ‘‘(B) EFFECT OF MEASUREMENT.—If the

2 satellite carrier conducts a signal intensity

3 measurement under subparagraph (A) and the

4 measurement indicates that—

5 ‘‘(i) the household is not an unserved

6 household, the satellite carrier shall, within

7 60 days after the measurement is conducted,

8 terminate the service to that household of

9 the signal that is the subject of the chal10 lenge, and within 30 days thereafter notify

11 the network station that made the challenge

12 that service to that household has been ter13 minated; or

14 ‘‘(ii) the household is an unserved

15 household, the station challenging the service

16 shall reimburse the satellite carrier for the

17 costs of the signal measurement within 60

18 days after receipt of the measurement re19 sults and a statement of the costs of the

20 measurement.

21 ‘‘(C) LIMITATION ON MEASUREMENTS.—(i)

22 Notwithstanding subparagraph (A), a satellite

23 carrier may not be required to conduct signal in24 tensity measurements during any calendar year

25 in excess of 5 percent of the number of subscrib-
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1 ers within the network station’s local market

2 that have subscribed to the service as of the effec3 tive date of the Satellite Home Viewer Act of

4 1994.

5 ‘‘(ii) If a network station challenges whether

6 a subscriber is an unserved household in excess

7 of 5 percent of the subscribers within the net8 work’s station local market within a calendar

9 year, subparagraph (A) shall not apply to chal10 lenges in excess of such 5 percent, but the station

11 may conduct its own signal intensity measure12 ment of the subscriber’s household. If such meas13 urement indicates that the household is not an

14 unserved household, the carrier shall, within 60

15 days after receipt of the measurement, terminate

16 service to the household of the signal that is the

17 subject of the challenge and within 30 days there18 after notify the network station that made the

19 challenge that service has been terminated. The

20 carrier shall also, within 60 days after receipt of

21 the measurement and a statement of the costs of

22 the measurement, reimburse the network station

23 for the cost it incurred in conducting the meas24 urement.
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1 ‘‘(D) OUTSIDE THE PREDICTED GRADE B

2 CONTOUR.—(i) If a network station challenges

3 whether a subscriber is an unserved household

4 outside the predicted Grade B Contour of the sta5 tion, the station may conduct a measurement of

6 the signal intensity of the subscriber’s household

7 to determine whether the household is an

8 unserved household.

9 ‘‘(ii) If the network station conducts a sig10 nal intensity measurement under clause (i) and

11 the measurement indicates that—

12 ‘‘(I) the household is not an unserved

13 household, the station shall forward the re14 sults to the satellite carrier who shall, with15 in 60 days after receipt of the measurement,

16 terminate the service to the household of the

17 signal that is the subject of the challenge,

18 and shall reimburse the station for the costs

19 of the measurement within 60 days after re20 ceipt of the measurement results and a

21 statement of such costs; or

22 ‘‘(II) the household is an unserved

23 household, the station shall pay the costs of

24 the measurement.
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1 ‘‘(9) LOSER PAYS FOR SIGNAL INTENSITY MEAS2 UREMENT; RECOVERY OF MEASUREMENT COSTS IN A

3 CIVIL ACTION.—In any civil action filed relating to

4 the eligibility of subscribing households as unserved

5 households—

6 ‘‘(A) a network station challenging such eli7 gibility shall reimburse the satellite carrier for

8 any signal intensity measurement that is con9 ducted by that carrier in response to a challenge

10 by the network station and that establishes the

11 household is an unserved household; and

12 ‘‘(B) a satellite carrier shall reimburse the

13 network station challenging such eligibility for

14 any signal intensity measurement that is con15 ducted by that station and that establishes the

16 household is not an unserved household.

17 ‘‘(10) INABILITY TO CONDUCT MEASUREMENT.—

18 If a network station makes a reasonable attempt to

19 conduct a site measurement of its signal at a sub20 scriber’s household and is denied access for the pur21 pose of conducting the measurement, the satellite car22 rier shall within 60 days notice thereof, terminate

23 service of the station’s network to that household.’’.

24 (6) Subsection (d) is amended—
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1 (A) by amending paragraph (2) to read as

2 follows:

3 ‘‘(2) NETWORK STATION.—The term ‘network

4 station’ means—

5 ‘‘(A) a television broadcast station, includ6 ing any translator station or terrestrial satellite

7 station that rebroadcasts all or substantially all

8 of the programming broadcast by a network sta9 tion, that is owned or operated by, or affiliated

10 with, one or more of the television networks in

11 the United States which offer an interconnected

12 program service on a regular basis for 15 or

13 more hours per week to at least 25 of its affili14 ated television licensees in 10 or more States; or

15 ‘‘(B) a noncommercial educational broad16 cast station (as defined in section 397 of the

17 Communications Act of 1934).’’;

18 (B) in paragraph (6) by inserting ‘‘and op19 erates in the Fixed-Satellite Service under part

20 25 of title 47 of the Code of Federal Regulations

21 or the Direct Broadcast Satellite Service under

22 part 100 of title 47 of the Code of Federal Regu23 lations’’ after ‘‘Commission’’; and

24 (C) by adding at the end the following:
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1 ‘‘(11) LOCAL MARKET.—The term ‘local market’

2 means the area encompassed within a network sta3 tion’s predicted Grade B contour as that contour is

4 defined by the Federal Communications Commis5 sion.’’.

6 SEC. 3. DEFINITIONS.

7 (a) CABLE SYSTEM.—Section 111(f) of title 17, United

8 States Code, is amended in the paragraph relating to the

9 definition of ‘‘cable system’’ by inserting ‘‘microwave,’’ after

10 ‘‘wires, cables,’’.

11 (b) LOCAL SERVICE AREA.—Section 111(f) of title 17,

12 United States Code, is amended in the paragraph relating

13 to the definition of ‘‘local service area of a primary trans14 mitter’’ by inserting after ‘‘April 15, 1976,’’ the following:

15 ‘‘or such station’s television market as defined in section

16 76.55(e) of title 47, Code of Federal Regulations (as in effect

17 on September 18, 1993), or any modifications to such tele18 vision market made, on or after September 18, 1993, pursu19 ant to section 76.55(e) or 76.59 of title 47 of the Code of

20 Federal Regulations,’’.

21 SEC. 4. TERMINATION.

22 (a) EXPIRATION OF AMENDMENTS.—Section 119 of

23 title 17, United States Code, as amended by section 2 of

24 this Act, ceases to be effective on December 31, 1999.
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1 (b) CONFORMING AMENDMENT.—Section 207 of the

2 Satellite Home Viewer Act of 1988 (17 U.S.C. 119 note)

3 is repealed.

4 SEC. 5. EFFECTIVE DATE.

5 (a) IN GENERAL.—Except as provided in subsections

6 (b) and (d), this Act and the amendments made by this

7 Act take effect on the date of the enactment of this Act.

8 (b) BURDEN OF PROOF PROVISIONS.—The provisions

9 of section 119(a)(5)(D) of title 17, United States Code (as

10 added by section 2(2) of this Act) relating to the burden

11 of proof of satellite carriers, shall take effect on January

12 1, 1997, with respect to civil actions relating to the eligi13 bility of subscribers who subscribed to service as an

14 unserved household before the date of the enactment of this

15 Act.

16 (c) TRANSITIONAL SIGNAL INTENSITY MEASUREMENT

17 PROCEDURES.—The provisions of section 119(a)(8) of title

18 17, United States Code (as added by section 2(5) of this

19 Act), relating to transitional signal intensity measure20 ments, shall cease to be effective on December 31, 1996.

21 (d) LOCAL SERVICE AREA OF A PRIMARY TRANSMIT22 TER.—The amendment made by section 3(b), relating to the
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1 definition of the local service area of a primary transmitter,

2 shall take effect on July 1, 1994.

Attest:

Clerk.

103D CONGRESS

2D SESSION S. 1485

AMENDMENT