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

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

                          [Report No. 108-634]

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 2004

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

                             July 22, 2004

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

_______________________________________________________________________

                                 A BILL

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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

         TITLE II--FEDERAL COMMUNICATIONS COMMISSION OPERATIONS

SEC. 201. EXTENSION OF RETRANSMISSION CONSENT EXEMPTION.

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

SEC. 202. CABLE/SATELLITE COMPARABILITY.

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

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

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

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

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

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

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

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

    Section 338 of the Communications Act of 1934 (47 U.S.C. 338) is 
further amended by inserting after subsection (g) (as added by section 
203) the following new subsection:
    ``(h) Additional Notices to Subscribers, Networks, and Stations 
Concerning Signal Carriage.--
            ``(1) Notices to and elections by subscribers concerning 
        grandfathered signals.--Any carrier that provides a distant 
        signal of a network station to a subscriber pursuant to a 
        statutory license under section 119(a)(4)(A) of title 17, 
        United States Code, shall--
                    ``(A) within 60 days after the local signal of a 
                network station of the same television network is 
                available pursuant to a statutory license under section 
                122, or within 60 days after the date of enactment of 
                the Satellite Home Viewer Extension and Reauthorization 
                Act of 2004, whichever is later, send a notice to the 
                subscriber--
                            ``(i) offering to substitute the local 
                        network signal for the duplicating distant 
                        network signal; and
                            ``(ii) informing the subscriber that, if 
                        the subscriber fails to respond in 60 days, the 
                        subscriber will lose the distant network signal 
                        but will be permitted to subscribe to the local 
                        network signal; and
                    ``(B) if the subscriber--
                            ``(i) elects to substitute such local 
                        network signal within such 60 days, switch such 
                        subscriber to such local network signal within 
                        10 days after the end of such 60-day period; or
                            ``(ii) fails to respond within such 60 
                        days, terminate the distant network signal 
                        within 10 days after the end of such 60-day 
                        period.
            ``(2) Notices to networks of distant signal subscribers.--
        Within 60 days after the date of enactment of the Satellite 
        Home Viewer Extension and Reauthorization Act of 2004, each 
        satellite carrier that provides a distant signal of a network 
        station to a subscriber pursuant to a statutory license under 
        section 119(a)(4)(A) or 119(a)(4)(B)(i) of title 17, United 
        States Code, shall submit to each network--
                    ``(A) a list, aggregated by designated market area, 
                identifying each subscriber provided such a signal by--
                            ``(i) name;
                            ``(ii) address (street or RFD number, city, 
                        state, and zip code); and
                            ``(iii) the distant network signal or 
                        signals received; and
                    ``(B) a statement that, to the best of the 
                carrier's knowledge and belief after having made 
                diligent and good faith inquiries, the subscriber is 
                qualified under the existing law to receive the distant 
                network signal or signals pursuant to a statutory 
                license under section 119(a)(4)(A) or 119(a)(4)(B)(i) 
                of title 17, United States Code.
            ``(3) Notice to station licensees of commencement of local-
        into-local service.--
                    ``(A) Notice required.--Within 180 days after the 
                date of enactment of the Satellite Home Viewer 
                Extension and Reauthorization Act of 2004, the 
                Commission shall revise the regulations under this 
                section relating to notice to broadcast station 
                licensees to comply with the requirements of this 
                paragraph.
                    ``(B) Contents of commencement notice.--The notice 
                required by such regulations shall inform each 
                television broadcast station licensee within any local 
                market in which a satellite carrier proposes to 
                commence carriage of signals of stations from that 
                market, not later than 60 days prior to the 
                commencement of such carriage--
                            ``(i) of the carrier's intention to launch 
                        local-into-local service under this section in 
                        a local market, the identity of that local 
                        market, and the location of the carrier's 
                        proposed local receive facility for that local 
                        market;
                            ``(ii) of the right of such licensee to 
                        elect carriage under this section or grant 
                        retransmission consent under section 325(b);
                            ``(iii) that such licensee has 30 days from 
                        the date of the receipt of such notice to make 
                        such election; and
                            ``(iv) that failure to make such election 
                        will result in the loss of the right to demand 
                        carriage under this section for the remainder 
                        of the 3-year cycle of carriage under section 
                        325.
                    ``(C) Transmission of notices.--Such regulations 
                shall require that each satellite carrier shall 
                transmit the notices required by such regulation via 
                certified mail to the address for such television 
                station licensee listed in the consolidated database 
                system maintained by the Commission.
            ``(4) Notices concerning significantly viewed stations.--
        Each satellite carrier that proposes to commence the 
        retransmission of a station pursuant to section 340 in any 
        local market shall--
                    ``(A) not less than 60 days before commencing such 
                retransmission, provide a written notice to any 
                television broadcast station in such local market of a 
                such proposal; and
                    ``(B) designate on such carrier's website all 
                significantly viewed signals carried pursuant to 
                section 340 and the communities in which the signals 
                are carried.''.

SEC. 206. PRIVACY RIGHTS OF SATELLITE SUBSCRIBERS.

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

SEC. 207. RECIPROCAL BARGAINING OBLIGATIONS.

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

SEC. 208. UNSERVED DIGITAL CUSTOMERS.

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

SEC. 209. REDUCTION OF REQUIRED TESTS.

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

SEC. 210. CARRIAGE OF CERTAIN ADDITIONAL STATIONS.

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

                                                 Union Calendar No. 379

108th CONGRESS

  2d Session

                               H. R. 4501

                          [Report No. 108-634]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             July 22, 2004

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