HomeMy WebLinkAbout1992-09-14 Cable Television Consumer Protection and Competition Act of 1992 Conference ReportF:\SAC\CABLE\S12RPT
102D CONGRESSSREPORT: -
2d Session 1 HOUSE OF REPRESENTATIVES I
CABLE TELEVISION CONSUMER PROTECTION AND
COMPETITION ACT OF 1992
.—O DDm ro az rluyrrm
MR. DINGELL, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To aocompaay S. 12]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the House to the bill (S. 12), to
amend title VI of the Communications Act of 1934 to ensure car-
riage on cable television of local news and other programming and
to restore the right of local regulatory authorities to regulate cable
television rates, and for other purposes, having met, after full and
free conference, have agreed to recommend and do recommend to
their respective Houses as follows:
That the Senate recede from its disagreement to the amendment
of the House to the text of the bill and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the House
amendment, insert the following:
September 1 s,1902 (11:02 a.m.)
A
r:
1 SECTION L SHORT TITLE.
2 This Act may be cited as the "Cable Television
3 Consumer Protection and Competition Act of 1992". .
4 SEC. 2. FINDINGS; POLICY; DE 'DI TIONS.
5 (a) FINDINGS.—The Congress finds and declares the
6 following
7 (1) Pursuant to the Cable Communications Pol-
8 icy Act of 1984, rates for cable television services
9 have been deregulated in approximately 97 percent
10 of all franchises since December 29, 1986. Since
11 rate deregulation, monthly rates for the lowest
12 priced basic cable service have increased by 40 per -
13 cent or more for 28 percent of cable television sub -
14 • scribers. Although the average number of basic
15 channels has increased from about 24 to 30, average
16 monthly rates have increased by 29 percent daring
17 the same period. The average monthly cable rate has
18 increased almost 3 times as much .as the Consumer
19 Price Index since raze deregulation.
20 (2) For a variety of reasons, including local
21 franchising requirements and the extraordinary ex -
22 pease of constructing more than one cable television
23 system to serve a particular geographic area, most
24 cable television subscribers have no opportunity to
25 select between competing cable systems. Without the
26 presence of another multichannel video programming
Supremo 13,1962 (3:11 p.m.)
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1 distutor, a cable system faces no local com-
2 petition.. The result is undue market power for the
3 cable operator as compared to that of consumers
4 and video programmers.
5 (3) There bas been a substantial increase in the
6 penetration of cable television systems over the past
7 decade. Nearly 56,000,000 households, over 60 per -
8 cent of the households with televisions, snbscrlbe to
9 cable television, and this per3entage is almost cer-
10 tain to increase. As a result of this growth, the cable
11 television industry has become a dominant nation -
12 wide video medium.
13 (4) The cable industry has become highly con -
14 centrated. The potential effects of such con -
15 centration are barriers to entry for new program -
16 ms and a reduction in the number of media voices
17 available to consumers.
18 (5) The cable industry has become vertically in -
19 tegrated; cable operators and cable programmers
20 often have common ownership. As a result, cable op -
21 erators have the incentive and ability to favor their
22 affiliated programmera. This could make it more dif-
.
23ficult for noncable-affiliated programmers to secure
24 carriage on cable systems. Vertically integrated pro -
25 gram suppliers also have the incentive and ability to
Sepletriber 13, 1202 (311 p.m.)
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1 favor . their affiliated cable operators 'over
2 nonaffiliated cable operators and programming dis-:
3 trbutors using other technologies.
4 (6) There is a substantial governmental and
5 First Amendment interest in promoting a diversity
6 of views provided through multiple technology media.
7 (7) There is a sabstantial governmental and
8 First Amendment interest in ensuring that cable
9 subscribers have access to local noncommercial edu-
10 rational stations which Congress has authorized, as
11 expressed in section 396(a)(5) of the Commvnica-
12 tions Act of 1934. The distribution of unigae non-
13
on13 commercial, edncational progri rn nil g services ad -
14 vances that interest.
15 (8) The Federal Government has a substantial
16 interest in making all nonduplicative local public tel -
17 evision services available on cable systems because -
18 (A) public television provides educational
19 and informational programming to the Nation's
20 citizens, thereby advancing the Government's
21 compelling interest in educating its citizens;
22 (B) public television is a local community
23. institution, supported through local tax dollars
24 and voluntary citizen contrbutions in excess of
25 $10,800,000,000 since 1972, that provides pub-
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1 lic service programming that is responsive to
2 the needs and interests of the local community;
3 (C) the Federal Government, in recognition
4 of public television's integral role in serving the
5 educational and informational needs of local
6 communities, has invested more than
7 $3,000,000,000 in public broadcasting since
8 1969; and
9 (D) absent carriage requirements there. is
10 a substantial llelihood that citizens, who have
11 supported local public television services, Will be
12 deprived of those services.
13 (9) The Federal Government has a substantial
14 interest in having cable systems carry the signals of
15 local commercial television stations because the car -
16 riage of each signals is necessary to serve the goals
17 contained in section 307(b) of the Communications
18 Act of 1934 of providing a fair, efficient, and equi-
19 table .distribution of broadcast services.
20 (10) A primary objective and benefit of our Na -
21 Lion's system of regulation of television broadcasting
22 is the local origination of programming. There is a
23 substantial governmental interest in ensuring its
24 continuation.
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1 (11) Broadcast television stations continue to
2 be an important source of local news and public af-
3 fairs programming and other local broadcast services
4 critical to an informed electorate.
5 (12) Broadcast television programming is sap -
6 ported by revenues generated from advertising
7 broadcast aver stations. Such programming is other -
8 wise free to those who own television sets and do not
9 require cable transmission to receive broadcast sig -
10 nals. There is a substantial governmental interest in
11 promoting the continued availability of such free tel -
12 evision programming, especially for viewers who are
13 unable to afford other means of receiving program -
14 ming.
15 (13) .As a result of the growth of cable tele -
16 vision, there has been a marked shift in market
17 share from broadcast television to cable television
18 services.
19 (14) Cable television systems and broadcast tel -
20 evision stations increasingly compete for television
21 advertising revenues. As the proportion of house -
22 holds subscrling to cable television increases, pro -
.23 portionately more advertising revenues wall be reallo-
24 cated from broadcast to cable television systems.
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1 (15) A cable television system which carries the
2 signal of a local television broadcaster is assisting
3 the broadcaster to increase its viewership, and there -
4 by attract additional advertising revenues that other -
5 wise might be earned by the cable system operator.
6 As a result, there is an economic incentive for cable
7 systems to terminate the retransmission of the
8 broadcast signal, refuse to carry new signals, or
9 reposition a broadcast signal to a disadvantageous
10 channel position. There is a substantial hielihood
11 that absent the reimposition of such a requirement,
12 additional local broadcast signals will be deleted,
13 repositioned, or not carried.
14 (16) As a result of the economic incentive that
15 cable systems have to delete, reposition, or not carry
16 local broadcast signals, coupled with the absence of
17 a requirement that such systems carry local broad -
18 cast signals, the economic viability of free local
19 broadcast television and its ability to originate qual-
20 ity local programming will be seriously jeopardized.
21 (17) Consumers who subscribe to cable tele -
22 - vision often do so to obtain local broadcast signals
23 ° ° ° which they otherwise would not be able to receive, or
24 to obtain improved signals. Most subscribers to cable
25 television systems do not or cannot maintain anten-
September 13,1!02 (til p.n.)
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1 nas to receive broadcast television services, do not
2. have input selector switches to convert from a cable
3 to antenna reception system, or cannot otherwise re -
4 ceive broadcast television services. The regulatory
5 system created by the Cable Communications Policy
6 Act of 1984 was premised upon the continued east -
7 ence of mandatory carriage obligations for cable sys-
8 terns, ensuring that local stations world be protected
9 from anticompetitive conduct by cable systems.
10 (18) Cable television systems often are the sin -
11 gie most efficient distrbution system for television
12 programming. A Government mandate for a sub -
13 staatial societal investment in alternative dis-
14 tribution systems for cable snbscrbers, such as the
15 "A13" input selector antenna system, is not an en -
16 during or feasible method of distaution and is not
17 in the public interest.
18 (19) At the same time, broadcast programming
19 that is carried remains the most popular program -
20 ming on cable systems, and a substantial portion of
21 the benefits for which consumers pay cable systems
22 is derived from carriage of the signals of network af-
M 23 Oates, independent television stations, and public
24 ' television stations. Also cable programming placed
25 on channels adjacent to popular off -the -air signals
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1 obtains a larger audience than on other channel po-
2 sitions. Cable systems, therefore, obtain great bene -
3 fits from local broadcast signals Which, until now,
4 they have been able to obtain without the consent of
5 the broadcaster or any copyright liability. This has
6 resulted in an effective subsidy of the development
7 of cable systems by local broadcasters. While at one
8 time, when cable systems did not attempt to compete
9 with local broadcasters for programming, audience,
10 and advertising, this subsidy may have been appro-
11 priate, it is so no longer and results in a competitive
12 imbalance between the 2 industries.
13 (20) The Cable Communications Policy Act of
14 1984, in its amendments to the Communications Act
15 of 1934, limited the regulatory authority of franehis-
16 ing authorities over cable operators. Franchising au -
17 thorities are finding it . difficult under the current
18 regulatory scheme to deny renewals to cable systems
19 that are not adequately serving cable subscribers.
20 (21) Cable systems should be encouraged to
21 carry low-power television stations licensed to the
22 - communities served by those systems where the low -
23 power station creates and broadcasts, as a sabstan-
24 tial part of its programming day, local program -
25 ming.
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1 (b) STAzzramyr or PoLicy.—It is the policy of the
2 Congress in this Act to—.
3 (1) promote the availability to the public of a
4 diversity of views and information through cable tel -
5 evision and other video distrilmition media;
6 (2) rely on the marketplace, to the maximum
7 et tent feasille, to achieve that availability;
8 (3) ensure that cable operators continue to ea-
, 9 pand, where economically justified, their capacity
10 and the programs offered over their cable systems;
11 (4) where cable television systems are not sub -
12 ject to effective competition, ensure that consumer
13 interests are protected in receipt of cable service;
14 and
15 (5) ensure that cable television operators do not
16 have undue market power vis-a-vis video program -
17 »- • mers and consumers.
18 (c) DEFnarioNs.—Section 602 of -the Communica-
19 tions Act of 1934 (47 U.S.C. 531) is amended -
20 (1) by redesignating paragraph (16) as para -
21 graph (19);
22 (2) by sting "and" at the end of paragraph
23 (15);
24 (3) by redesignating paragraphs (11) through
25 (15) as paragraphs (13) through. (17), respectively;
September 13.1992 r3:11 p.m.)
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1 (4) by redesignating paragraphs (1) through
2 (10) as paragraphs (2) through- (11); respectively;
3 (5) by inserting before paragraph (2) (as so re -
4 designated) the following new paragraph:
5 "(1) the term `activated rh-"els' means those
6 channels engineered at the headend of a cable sys-
7 tem for the provision of services generally available
8 to residential subscribers of the cable system, re -
9 gardless of whether such services actually are pro -
10 vided, including any channel designated for public,
11 educational, or governmental use;";
12 (6) by inserting after paragraph (11) (as so re -
13 designated) the following new paragraph:
14 "(12) the term `multichannel video program -
15 ming distributor' means a person such as, but not
16 limited to, a cable operator, a multichannel
17 multipoint distribution service, a direct broadcast
18 satellite service, or a television receive -only satellite
19 program distributor, who makes available for pur-
20 ease, by sabscribers or customers, multiple than-
21
han21 eels of video programming"; and
22 (7) by inserting after paragraph (17) (as so re -
23 designated) the following new paragraph:
24 "(18) the term `usable activated channels'
25 means activated channels of a cable system, except
s.yo.l trar 13. 19V2 0311 p2tt.)
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1 those charmers whose ,use for the distribution of
2 broadcast g;g„Alg would conflict with technical and
3 safety regulations as determined by the Commission;
4 and".
5 SEC. 3. REGULATION OF RAT' .
6 (a.) AMENDMENT.—Section 623 of the Communica-
7 tions Act of 1934 (47 U.S.C. 543) is amended to read
8 as follows:
9 -SEC. 62S. REGULATION OF RATES.
10 "(a) COMPETITION CE; LOCAL AND FED -
11 =AL REGULATION. -
12 "(1) IN GENERAL. No Federal agency or State
13 may regulate the rates for the provision of cable
14 service except to the extent provided under this sec -
15 tion and section 612. Any franchising authority may
16 regulate the rates for the provision of cable service,
17 or any other communications service provided over a
18 cable system to cable subscribers, but only to the ex -
19
z19 tent provided under this section. No Federal agency,
20 State, or franchising authority may regulate the
21 rates for cable service of a cable system that is
::: 22 owned or operated by a local government or fran-
23 chising authority within whose jurisdiction that cable
24 system is located and that is the only cable system
25 located within sach jurisdiction.
September 13,11192 (W11 p.m.)
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"(2) PREFERENCE FOR CODprTITION.-If the
Commission finds that a cable system is subject to
effective competition, the rates for the provision of
cable service by such system shall not be subject to
5 regulation by the Commission or by a State or frau
6 &ismg authority under this section. If the Commis -
7 sion finds that a cable system is not subject to effec-
8 tive competition--
9
ompetition9 "(A) the rates for the provision of basic
10 cable service shall be subject to regulation by a
11 franchising authority, or by the Commission if
12 the Commission scercises jurisdiction pursuant
13 to paragraph (6), in accordance with the regu-
14 lotions prescribed by the Commission under
15 subsection (b); and
16 "(B) the rates for cable programming sere
17 ices shall be subject to regulation by the Com -
18 mission under subsection (c).
19 "(3) QUALIFICATION OF FRANCHISING AUTHOR -
20 1TY.-A franchising authority that seeks to exercise
21 the regulatory jurisdiction permitted under para -
22 graph (2)(A) ehan file with the Commission a writ -
23 tea certification that -
24 "(A) the franchising authority will adopt
25 and administer regulations with respect to the
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2
3
13
rates subject to regulation under this section
that are consistent with the regulations pre-
scribed by the Commission under subsection
4 (b);
5 "(B) the franchising authority has the
6 legal authority to adopt, and the personnel to
7 administer, such regulations; and
8 "(C) procedural laws and regulations appli-
9 cable to rate regulation proceedings by such au -
10 thority provide a reasonable opportunity for
11 consideration of the views of interested parties.
12 "(4) APPROVAL BY COMMISSION. -A cer-
13 tification filed by a franchising authority under
14 paragraph (3) shall be effective 30 days after the
15 date on which it is filed unless the Commission
16 finds, after notice to the authority and a reasonable
17 opportunity for the authority to comment, that -
18 "(A) the franchising authority has adopted
19 or is administering regulations with respect to
20 the rates subject to regulation under this sec -
21 tion that are not consistent with the regulations
22 probed by the Commission under subsection
23 (b);
SapreebK 13.199213:11 p.m.)
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1. ` "(B) the franchising authority does not
2 ' have the legal agthority to adopt, or the person -
3 ne1 to administer, such regulations; or
4 "(C) procedural laws and regulations appli-
5 cable to rate regulation proceedings by such au -
6 thority do not provide a reasonable opportunity
7 for consideration of the views of interested par -
8 ties.
9 If the Commission disapproves a franchising
10 authority's certification, the Commission shall notify
11 the frarAinir g authority of any revisions or modi-
12 fications necessary to obtain approvaL
13 "(5) REvocsizoN of JC ISDICTION.—Upon
14 petition by a cable operator or other interested
15 party, the Commission shall review the regulation of
16 cable system rates by a frarinhi ng authority under
17 this subsection. A copy of the petition shall be pro -
18 vided to the franc.hising authority by the person fil-
19 ing the petition. If the Commission finds that the
20 franchising authority has acted inconsistently with
21 the requirements of this subsection, the Commission
22 shall grant appropriate relief. If the Commission,
23 after the franchising authority has had a reasonable
24 opportunity to comment, determines that the State
25 and local laws and regulations are not in conform -
September 13,1392 31 1 pin.)
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1 mace with the regulations prescribed by the Commis -
2 sion under subsection (b), -the "Commission shall re -
3 yoke the jurisdiction of such ' authority.
4 "(6) ACL OF- JURISDICTION BY COMM -
5 sioN.—If the Commission disapproves a►el,LQ;.zg
6 authority's certification under paragraph (4), or re -
7 cokes such authority's jurisdiction under paragraph
8 (5), the Commission shall exercise the franchising
9 authority's regulatory jurisdiction under paragraph
10 (2) (A) until the frnrhiing authority has qualified
11 to exercise that jurisdiction by filing a new cer-
12 &cation that meets the requirements of paragraph
13 (3). Such new certification shall be effective upon
14 approval by the Commission. The Coramission shall
15 act to approve or disapprove any such new cer-
16 tification within 90 days after the date it is filed.
17 "(b) ESTABLISHMENT of BASIC SERVICE TIER RLTE
18 REGULLTIONs —
19 "(1) COMMISSION OBLIGATION TO SUBSCRIB-
20 EBs.—The Co omiss oa shall, by regulation, ensure
21 that the rates for the basic service tier are reason -
22 - able. Such regulations shall be designed to achieve
23 the goal of protecting subscribers of any cable sys-
24 tem that is not subject to effective competition from
25 rates for the basic service tier that exceed the rates
September 13.1002 (311 p.m.)
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1 that would be charged for the basic service- tier if
2 such cable system were subject to effective= com-
3 ^ petition;
4 _ "(2) COMMISSION BEGDLLTIONS.=Within 180
5 . days after the date of enactment of the Cable Tele -
6 vision Consumer Protection and Competition Act of
7 1992, the Commission shall prescribe, and periodi-
8 cap thereafter revise, regulations to carry out its
9 obligations under paragraph (1). In prescrlbing such
10 regulations, the Commission -
11 "(A) shall seek to reduce the administra-
12 Live burdens on subscribers, cable operators,
13 franchising authorities, and the Commission;
14 "(B) may adopt formulas or other mecha-
15 nems and procedures in complying with the re -
16 qu cements of subparagraph (A); and
17 "(C) shall take into account the following
18 factors:
19 "(i) the rates for cable systems, if
20 any, that are subject to effective com-
21 petition;
22 "(ii) the direct costs (if any) of ob-
23 - faking, transmitting, and otherwise pro -
24 viding signals carried on the basic service
25 tier, including signals and services carried
September 13. 1902 g 11 p.m.)
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1 on the basic service tier pursuant to para -
2 graph (7)(B), and changes in such costs;
3 "(iii) only such portion of the joint
- -
4 and common costs (if any) of obtaining,
5 transmitting, and otherwise providing such
6 signals as is determined, in accordance
7 with regulations prescribed by the Commis -
8 sion, to be reasonably and properly alloca-
9 ble to the basic service tier, and changes in
10 such costs;
11 "(iv) the revenues (if any) received by
12 a cable operator from advertising from
13 programming that is carried as part of the
14 basic service tier or from other consider -
15 axion obtained in connection with the basic
16 service tier;
17 "(v) the reasonably and properly alio-
,
18 cable portion of any amount assessed as a
19 franchise fee, tax, or charge of any kind
20 imposed by any State or local authority on
21 the transactions between cable operators
22 and cable subscthers or any other fee, tax,
23 or assessment of general applicability im-
24 posed by a governmental entity applied
"•
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against cable operators or cable subsea -ib -
2 ers;
3 "(vi) any amount required, in accord-
,
4 ance with paragraph (4), to satisfy fran-
5 requirements to support public, edn-
6 national, or governmental channels or the
7 use of such channels or any other services
8 required under the franchise; and
9 "(vii) a reasonable profit, as defined
10 by the Commission consistent with the
11 Commission's obligations to sabscralers
12 under paragraph (1).
13 "(3) EQUIPMENT.—The regulations prescribed
14 by the Commission under this subsection shall in -
15 dude standards to establish, on the basis of actual
16 cost, the price or rate for -
17 "(A) installation and lease of the equip -
18 meat used by subscribers to receive the basic
19 service tier, including a converter box and a re -
20 mote control unit and, if requested by the sub -
21 antler, sach addressable converter box or other
22 equipment as is required to access program -
23 ming described in paragraph (8); and
24 "(B) installation and monthly use of con -
25 nections for additional television receivers.
September 12, 111112 (211 p.m.)
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"(4) CosTs of FRANCBISE BEQLnmEENTs.
The regulations prescribed by the Commission under
this subsection shall include standards to identify
4 costs attrlbatable to satisfying fraatchise require -
5 meats to support public, educational, and govern -
6 mental channels or the use of sach channels or any
7 other services required under the franchise.
8 "(5) ImprawzNTATIoN AND ENFORCEMENT .-
9
9 The regulations prescribed by the Commission under
10 this subsection shall include additional standards,
11 guidelines, and procedures concerning the implemen-
12 tation and enforcement of such regulations, which
13 shall include -
14 "(A) procedures by which cable operators
15 may implement and franchising authorities may
16 enforce the regulations prescribed by the Com-
17
om17 mission order this subsection;
18 "(B) procedures for the expeditious resolu-
19 tion of disputes between cable operators and
20 franchising authorities concerning the adminis-
21 tration of such regulations;
22 "(C) standards and procedures to prevent
23 unreasonable charges for changes in the sub -
24 scriber's selection of services or equipment sub -
25 ject to regulation under this section, which
September 13.1992 M11 p.m.)
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1- standards shall require that charges for Chang- ,:
2 ing the service tier selected shall be based . on..�.
3 the cost of such change and shall not mei&
4 nominal amounts when the system's canfigvra-- -. --
5 tion permits changes in service tier selection to
6 be effected solely by coded entry on a computer
7 terminal or by other similarly simple method;
8 and
9 "(D) standards and procedures to assure
10 that sabscrbers receive notice of the availability
11 of the basic service .tier required under this sec -
12 tion.
13 "(6) NOTICE —The procedures prescribed by
14 the Commission pursuant to paragraph (5) (A) shall
15 require a cable operator to provide 30 days' advance
16 notice to a franchising authority of any increase pro -
17 posed in the price to be charged for the basic service
18 tier.
19 "(7) COXPONENTS OF BASIC TIER SUBJECT TO
20 BATE REGDLLTION.-
21 "(A) MmTnerait coNTENTs.—Each cable
22 operator of a cable system shall provide its sub -
23 scribers a separately available basic service tier
24 to which subscription is required for access to
SIpfenbs 13.1M2 (3.-11 p.n.)
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1 any other tier of service. Such basic service tier
201211, at a minimum, consist of the following: ,
. ' r - - -
3 "(i) .All signals carried in fulfillment
4 of the requirements of sections 614 and
5 615.
6 "(ii) Any public, educational, and gov-
7 ernmental access programming required by
8 the franchise of the cable system to be pro -
9 vided to subscribers.
10 "(iii) Any signal of any television
11 broadcast station that is provided by the
12 cable operator to any subscriber, except a
13 signal which is secondarily transmitted by
14 a satellite carrier beyond the local service
15 area of such station.
16 "(B) PERMITTED ADDITIONS TO BASIC
17 =R.—A cable operator may add additiDnal
18 video programming signals or services to the
19 basic service tier. Any such additional signals or
20 services provided on the basic service tier shall
21 be provided to subscribers at rates determined
22• under the regulations prescribed by the Com-
f).1.7TiL.,t5
. .
23 mission under this subsecticm.
24 "(8) BUY -THROUGH OF WEER ITERS PROEM -
25 ITED.-
September 13.1922 (3:11 P.m.)
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1 "(A) PRom ITIoN.—A cable operator may
2 not require the .subscription to any tier other =.
3 thin the basic service tier required by para-
4 graph (7) as a condition of access to video pro-..
5 gramming offered on a per channel or per pro -
6 gram basis. A cable operator may not discrimi-
7 nate between subscribers to the basic service
8 tier and other subscribers with regard to the
9 rates charged for video programming offered on
10 a per channel or per program basis.
11 "(B) ExCEPTION; LLMITLTIoN.—The pro -
12 hibition in subparagraph (A) shall not apply to
13 a cable system that, by reason of the lack of ad -
14 dressable converter boxes or other technological
15 limitations, does not permit the operator to
16 offer programming on a per channel or per pro -
17 gram basis in the same manner required by
18 subparagraph (A). This subparagraph shall not
19 be available to any cable operator after
20 "(i) the technology utilized by the
21 cable system is modified or improved in a
22 way that eliminates such technological lim-
23 itation; or
24 "(ii) 10 years after the date of enact -
25 ment of the Cable Television Consumer
S.prmb.r 130 On e&11 pin.)
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1 Protection and Competition Act of 1992,
2 subject to subparagraph (C).
3 "(C) WAIVER.—If, in any proceeding initi-
4 ated at the request of any cable operator, the
5 Commission determines that compliance with
6 the requirements of subparagraph (A) would re -
7 qaire the cable operator to increase its rates,
8 the Commission may, to the extent consistent
9 with the public interest, grant such cable opera -
10 tor a waiver from such requirements for such
11 specified period as the Commission determines
12 reasonable and appropriate.
13 "(c) REGULLTION OF UNREASONABLE RATES —
14 "(1) CONINCSSION REGULATIONS.—Within 180
15 days after the date of enactment of the Cable Tele -
16 vision Consumer Protection and Competition Act of
17 1992, the Commission shall, by regulation, establish
18 the following:
19 "(A) criteria prescribed in accordance with
20 paragraph (2) for identifying, in individual
21 cases, rates for cable programming services that
22 are unreasonable;
23 "(B) fair and expeditious procedures for
24 the receipt, consideration, and resolution of
25 complaints from any subscriber, franc hi ing au-
Septse b.r 13, 1402 (311 p.m.)
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24
1 thority, or other relevant State or local govern -
2 meat entity alleging that a rate for cable pro -
3 gramming services charged by a cable operator
4 violates the criteria prescribed under sabpara-
5 graph (A), which procedures shall include the
6 minimum showing that shall be required for a
7 complaint to obtain Commission consideration
8 and resolution of whether the rate in question
9 is unreasonable; and
10 "(C) the procedures to be used to reduce
11 rates for cable programming services that are
12 determined by the Commission to be unreason -
13 able and to refund such portion of the rates or
14 charges that were paid by subscribers after the
15 filing of such complaint and that are deter -
16 mined to be unreasonable.
17 "(2) FAC'roBs TO BE CONSIDERED.—In estab-
18 lisping the criteria for deterMining in individual
19 cases whether rates for cable programming services
20 are unreasonable under paragraph (1) (A), the Com -
21 mission shall consider, among other factors -
22 "(A) the rates for similarly situated cable
23 systems offering comparable cable programming
24 services, taking into account similarities in fa -
25 cilities, regulatory and governmental costs, the
&cla ber 13,11Q (311 Psi
F:\SAC\CABLE\S12CNF
25
1 number of subscribers, and other relevant far -
2 tors;
3 "(B) the rates for cable systems, if any,
4 that are subject to effective competition; _
5 "(C) the history of the rates for cable pro -
6 gramming services of the system, including the
7 relationship of sash rates to changes in general
8 consumer prices;
9 "(D) the rates, as a whole, for all the cable
10 programming, cable equipment, and cable sere
11 ices provided by the system, other than pro -
12 miming provided on a per channel or per
13 program basis;
14 "(E) capital and operating costs of the
15 cable system, including the quality and costs of
16 the customer service provided by the cable sys-
17 tem; and
18 v "(F) the revenues (if any) received by a
19 cable operator from advertising from program -
20 ming that is carried as part of . the service for
21 which a rate is being established, and changes
22 in such revenues, or from other consideration
23 obtained in connection with the cable program -
24 -- ming services concerned.
Ssp.enbK 13,1992 (3:11 p.m.)
P:1SAC\CASLE\S72CNF
26
1 "(3) LIMITATION ON COMPLLIl TS CONCERNING
2 =STING RATES.—Except during the 180 -day pe -
3 riod following the effective date of the regulations
4 prescribed by the Commission ander paragraph (1),
5 the procedures established under subparagraph (B)
6 of such paragraph shall be available only with re -
7 spect to complaints filed within a reasonable period
8 of time following a cls in rates that is initiated
9 after that effective date, including a change in rates
10 that results from a change in that system's service
11 tiers.
12 "(d) Tharozatt RdTE STRUCTURE REQUIRED.—A
13 cable operator shall have a rate structure, for the provision
14 of cable service, that is uniform throughout the geographic
15 area in which cable service is provided over its cable sys-
16 tem.
17 "(e) ATION; SERVICES FOR TEE HEARING
18 IaPdtEMn.—Nothing in this title shall be construed as
19 prohibiting any Federal agency, State, or a franc.hising au -
20 thority from-
21
rom21 .. "(1) prohibiting discrimination among subscrib-
22: ers and potential subscribers to cable service, except
23 that no Federal agency, State, or franchising au -
24 thority may prohibit a cable operator from offering
•
F:\SAC\CABLE\S12.CNF
27
1 reasonable discounts to senior . citizens or other eco-
2 nomicaliy disadvantaged group discounts; or
3 "(2) requiring and regulating the installation or
4 rental of equipment which facilitates the reception of
5 cable service by hearing impaired individuals.
6 "(f) NEGATIVE OPTION MIALING PsoEasrrED.—A
7 cable operator shall not charge a subscriber for any service
8 or equipment that the subscriber has not affirmatively re -
9 quested by name. For purposes of this subsection, a sub -
10 scriber's failure to refuse a cable operator's proposal to
11 provide such service or equipment shall not be deemed to
12 be an aframdive request for such service or equipment.
13 "(g) COLT ECrION OF INFORMATION.—The Commis-
sion shall, by regulation, require cable operators to file
15 _ with the Commission or a franchising authority, as appro-
16 priate, within one year after the date of enactment of the
17 Cable Television Consumer Protection and Competition
18 Act of 1992 and annually thereafter, sash financial infor-
19 nation as may be needed for purposes of
administering
20 and enforcing this section.
21 "(h) PREVENTION OF EVASIONS. Within 180 days
22 after the date of enactment of the Cable Television
23 Consumer Protection and Competition Act of 1992, the
24 Commission shall, by regulation, establish standards,
25 guidelines, and procedures to prevent evasions, including
Saptae,bK 13.1992 (3:11 p.m.)
F:\SAC\CABLE\S12.CNF
- 28
1 evasions that result from retiering, of the requirements of
2 this section and shall, thereafter, periodically review and
3 revise such standards, guidelines, and procedures.
4 "(i) SMAIz SYSTEM $IIBDENS. In developing and
5 prescribing regulations pursuant to this section, the Com -
6 mission shall design such regulations to reduce the admin-
7 istrative burdens and cost of compliance for cable systems
8 that have 1,000 or fewer sabscnbers.
9 "(j) RATE REGULATION AGREEMENTS. --During the
10 term of an agreement made before July 1, 1990, by a
11 funcl1iing authority and a cable operator providing for
12 the regulation of basic cable service rates, where there was
13 not effective competition under Commission rules in effect
14 on that date, nothing in this section (or the regulations
15 thereunder) shall abridge the ability of sach franchising
16 authority to regulate rates in accordance with such an
17. agreement.
18 "(k) REPORTS ON AVERAGE PBIcES. The Commis -
19 Sion shall annually publish statistical reports on the aver -
20 age rates for basic cable service and other cable program -
21 ming, and for converter boxes, remote control units, and
22 other equipment, of -
23 "(1) cable systems that the Commission has
24 found are subject to effective competition under sub -
25 section (a)(2), compared with
S.pt.o 13, 1902 (3:11 p.m.)
F:\1AL.\l4A:11. `+\�11.1a1n1'
29
1 "(2) cable systems that the Commission has
2 found are not subject to such effective competition.
3 "(1) DEFINITIONS.—As used in this section -
4 "(1) The : term `effective competition' means
5 that -
6 "(A) fewer than 30 percent of the house -
7 holds. in the franchise area subscribe to the
8 cable service of a cable system;
9 "(B) the franchise area is -
10 "(i) served by at least two unaffiliated
11 multichannel video programming distribu-
12 tors each of which offers comparable video
13 programming to at least 50 percent of the
14 households in the franchise area; and
15 "(ii) the number of households sub -
16 scribing to programming services offered
17 - by multichannel video programming *.r m dis-
18 tributors other than the largest Multi -
19 = channel video programming distributor ea -
20
a20 ceeds 15 percent of the households in the
21 franchise area; or
22 "(C) a multichannel video programming
23 distributor operated by the franchising author -
24 ity for that franchise area offers video program -
September 13, 11092 (:11 pen.)
F:\SAC\CABLE \S]2.CNp
30
1 - . ming to at least 50 percent of the households
2 in that franchise area
3 "(2) The term `cable programming service'
4 means any video programming .provided over a cable
5 system, regardless of service tier, including installa-
6 tion or rental of equipment used for the receipt of
7 such video programming, other than (A) video pro -
8 gramming carried on the basic service tier, and (B)
9 video programming offered on a per channel or per
10 program basis.".
11 (b) Etc, -TIDE DATE.—The amendment made by
12 subsection (a) shall take effect 180 days after the date
13 of enactment of this Act, except that the authority of the
14 Federal Communications Commission to prescribe regala-
15 tions is effective on such date of enactment.
16 SEC. 4. CARRIAGE OF LOCAL COMMERCIAL TELEVISION
17 SIGNALS.
18 Part II of title VI of the Communications Act of 1934
19 is amended by inserting after section 613 (47 U.S.C. 533)
20 the following new section:
21 'SEC.114. CARRIAGE OF LOCAL COMMERCIAL TELEVISION
22 SIGNALS.
23 "(a) CARRIAGE OBLIGATIONS.—Each cable operator
24 shall carry, on the cable system of that operator, the sig-
25
ig25 nils of local commercial television stations and qualified
SupIMv 13.1102 (3:11 p".)
31
1 low power stations as provided by this section. Carriage
2 of additional broadcast television signals on such system
3 shall be at the discretion of sash operator, subject to sec -
4 tion 325(b).
5 "(b) &GXLLS REQUIRED.
—
6 "(1) IN GENEaAL.—(A) A cable operator of a
7 cable system with 12 or fewer tumble activated 6=-
8 nes shall carry the signals of at least three local
9 commercial television stations, except that if such a
10 system has 300 or fewer sabscrilers, it shall not be
11 subject to any requirements under this section so
12 long as such system does not delete from carriage by
13 that system any signal of a broadcast television sta-
14 tion.
15 "(B) A cable operator of a cable system with
16 more than 12 usable activated channels shall carry
17 the signals of local commercial television stations, up
18 to one-third of the aggregate number of usable acti-
19 •vated channels of such system.
20 "(2) SELECTION OF SIGNALS. 'Whenever the
21 number of local commercial television stations ex -
22 „_ ceeds the znasimnm number of signals a cable sys-
23 tem is, required to carry )3.nder paragraph (1), the
24 cable operator shall have discretion in selecting
•
September 13, 1992 (3:11 p.m.)
P:‘..citc‘cABLE\sr.2-cNir
32
1 Which such stations shall be carried on its cable sys--
2 tem, except that--
,
3 "(A) under no circumstances shall a cable
4 operator carry a qualified low power station in
5 lien of a local commercial television station; and
6 "(B) if the cable operator elects to carry
7 an affiliate of a broadcast network (as such
8 term is defined by the Commission by regula-
9 tion), such cable operator shall carry the
10 ate of such broadcast. network whose city of li-
11 cense reference point, as defined in section
12 76.53 of title 47, Code of Federal Regulations
13 (in effect on January 1, 1991), or any sneces-
14 sor regulation thereto, is closest to the principal
15 headend of the cable system.
16 "(3) CONTENT TO BE CAEMED.-(A) A cable
17 operator shall carry in its entirety, on the cable sys-
18 tem of that operator, the primary video, accompany -
19 ing audio, and line 21 closed caption trwrinmission of
20 each of the local commercial television stations car -
21 ried on the cable system and, to the extent tech -
22 thca11y feasible, program -related material carried in
23 the vertical blanking interval or on subcarriers.
24 Retransmission of other material in the vertical
25 blanking internal or other nonprogram-related mate-
Saparrtar 13, 1992 f3:11 p.m.)
F:\SAC\CABLE\S12.CNF
33
1 rial (including teletext and other subscription :and
2 advertiser -supported information services) sh 1l be at
•
3 the discretion of the cable operator.- Where appro-
4 priate and feasible, operators may delete signal en -
5 hancements, such as ghost -canceling, from the
6 broadcast signal and employ such enhancements at
7 the system headend or headends.
8 "(B) The cable operator shall carry the entirety
9 of the program schedule of any television station
10 carried on the cable system unless carriage of spe-
11 cific programming is prohibited, and other program -
12 ming authorized to be substituted, under section
13 76.67 or subpart F of part 76 of title 47, Code of
14 Federal Regulations (as in effect on January 1,
15 1991), or any successor regulations thereto.
16 "(4) SIGNAL QUALITY. -
17 "(A) NONDEGRADATION; TECHNICAL
18 SPE ci 'xcLTIoNs —The signals of local commer-
19 cial television stations that a cable operator car -
20 ries shall be carried without material deg -
21 radation. The Commission shall adopt carriage
22 standards to ensure that, to the extent tech-
23
ech23 nically feasible, the quality of signal processing
24 and carriage provided by a cable system for the
25 carriage of local commercial television stations
S.pbmb.r 13.1992 (3:11 p.m.)
F:\SAC\CABLE\S12.CNF
34
will be no less than that provided by the system
for carriage of any other type of *pal.
"(B) ADiANCED TELEVISION.—At Sach
time as the Commission prescribes modifica-
tions of the standards for television broadcast
6 signals, the Commission shall initiate a proceed-
7
roceed7 ing to establish any mages in the signal car -
8 riage requirements of cable television systems
9 necessary to ensure cable carriage of such
10 broadcast signals of local commercial television
11 stations which have been changed to conform
12 with such modified standards.
13 "(5) Dr LIcAmoN NOT BEQUIBED —Not -
14 withstanding paragraph (1), a cable operator shall
15 not be required to carry the signal of any local com-
16 mercial television station that sabstantially dupli-
17 cates the signal of another local commercial tele -
18 vision station which is carried on its cable system,
19 or to carry the signals of more than one local com-
20 mercial television station affiliated with a particular
21 ` broadcast network (as such term is defined by regu-
lation). If a cable operator elects to carry on its
Cable system a signal which substantially duplicates
24 the signal of another local commercial television sta-
25 tion carried on the cable system, or to carry on its
Sal:A bar 13, 1992 (x11 p.m.)
35
1 system the signals of more than one local commer-
2 cial television station affiliated with a particular -
3, broadcast network, all such signals shall be counted
4 toward the number of signals the operator is re -
5 quired to carry under paragraph (1) .
6 "(6) CHANNEL PoSITIoNMG.—Each signal car -
7 ried in fulfillment of the carriage obligations of a
8 cable operator under this section shall be carried on
9 the cable system channel number on which the local
10 commercial television station is broadcast over the
11 air, or on the channel on which it was carried on
12 July 19, 1985, or on the channel on which it was
13 carried on January 1, 1992, at the election of the
14 station, or on such other channel number as is mu -
15 taally agreed upon by the station and the cable oper-
16 ator. Any dispute regarding the positioning of a local
17 commercial television station shall be resolved by the
18 Commission.
19 "(7) SIGNAL AVAILABILITY.—Signals carried in
20 fulfillment of the requirements of this section shall
21 be provided to every subscriber of a cable system.
22 Such signals shell be viewable via cable on all tele -
23 vision receivers of a subscriber which are connected
24 to a cable system by a cable operator or for which
25 a cable operator provides a connection. If a cable op-
S.obmb.r 13, 1992 M11 p.m.)
F:\SAC\CABLE\S12.CNF
36
1 erator authorizes subscribers to install additional re-
_ •
2 ceiver•connections, but does not provide .the sub-
-
3 Barker with such connections, or with theequipment
4 and materials for such connections, the operator.
5 shall notify such subscribers of all broadcast stations
6 carried on the cable system which cannot be viewed
7 via cable without a converter box and shall offer to
8 sell or lease such a converter box to such subscribers
9 at rates in accordance with section 623(b)(3).
10 "(8) IDENTIFICATION OF SIGNALS CABEZED.—A
11 cable operator shall identify, upon request by any
12 person, the signals carried on its system in falfi11.-
13 ment of the requirements of this section.
14 "(9) NOTIFICATION.—A cable operator chAll
15 provide written notice to a local commercial tele -
16 vision station at least 30 days prior to either delet-
17 ing from carriage or repositioning that station. No
18 deletion or repositioning of a local commercial tele -
19 vision station shall occur during a period in which
20 major television ratings services measure the size of
„, 21 audiences of local television stations. The notifica-
- 22 tion provisions of this paragraph shall not be used
23 to undermine or evade the channel positioning or
24 carriage requirements imposed upon cable operators
25 under this section.
September 13.1992 t3:11 p.m.
F: \SAC\CABLE \S12.CNF
37
1 "(10) COMPENSATION FORCARRIAGE.-A cable
2 operator shall not accept or request monetary pay -
3 : mat or other valuable consideration mexchange ei-
4 ther for carriage of local commercial television sta-
5 tions m fulfillment of the requirements of this sec-
6 tion or for the chawnel positioning rights provided to
7 mach stations under this section, except that-
8
hat8 "(A) any such station may be required to
9 bear the costs associated with delivering a good
10 quality signal or a baseband video signal to the
11 principal headend of the cable system;
12 "(B) a cable operator may accept pay -
13 ments from stations which would be considered
14 distant signals under section 111 of title 17,
15 United States Code, as indemnification for any
16 increased copyright liability resulting from car -
17 : riage of such signal; and
18 "(C) a cable operator- may continue to ac -
19 cept monetary payment or other valuable con -
20 sideration in exchange for carriage or channel
21 positioning of the signal of any local commercial
22 • • television station carried in fulfillment of the re -
23 gnirements of this section, through, but not be -
24 gond, the date of expiration of an agreement
25 thereon between a cable operator and a local
8.poamb.r 13 1992 (1c11 p.m.)
F:\SAC\CABLE\S12.CNF
1�
2 to -Jane 26, 1990.
3
4 TioN.-
38
commercial television station entered into prior
"(c) Low Pow STATION CARRIAGE OBLIGs-
5 "(1) REQ .—If there are ` not suffi-
6 tient signals of fall power local commercial television
7 stations to fill the channels set aside under sab-
8 section (b) •
—
9 "(A) a cable operator of a cable system
10 with a capacity of 35 or fewer usable activated
11 channels shall be required to carry one qualified
12 low power station; and
13 "(B) a cable operator of a cable system
14 with a capacity of more than 35 usable acti-
15 vated channels shall be required to carry two
16 qualified low power stations.
17 "(2) USE OF PQBLIC, EDIICATIONAL, OR GOV
18 ERNmE rrAL cHANNE ,s.—A cable operator required
19 to carry more than one signal of a qualified low
20 power station under this subsection may do so, sub -
21 ject to approval by the franchising authority pursu-
22 ant to section 611, by placing such additional sta-
23 tion on public, educational, or governmental chan-
24 nels not in use for their designated purposes.
25 "(d) B v n s —
s.pbmbsr,3, ism (3„ p.m.)
F: \SAC\CABLE\SI2.CNF
39
1 "(1) COMPLAINTS BY BR,OADC.AST STATIONS.
2 Whenever a local commercial television station be-
lieves that a cable operator has faded to meet its ob-
ligations under this section, such_ station shall notify
5 the operator, in Writing, of the alleged failure and
6 identify its reasons for believing that the cable oper-
7 ator is obligated to carry the signal of such station
8 or has otherwise haled to comply with the channel
9 positioning or repositioning or other requirements of
10 this ,section. The cable operator shall, within 30 days
11 of such written notification, respond in writing to
12 such notification and either commence to carry the
13 signal of such station in accordance with the terms
14 requested or state its reasons for believing that it is
15 not obligated to carry such signal or is in compliance
16 with the channel positioning and repositioning and
17 other requirements of this section. A local commer-
18 cial television station that is denied carriage or
19 channel positioning or repositioning in accordance
20 with this section by a cable operator may obtain re -
21 view of such denial by filing a complaint with the
22 Commission. Such complaint shall allege the manner
23 in which such cable operator has failed to meet its
24 obligations and the basis for such allegations.
September 13, Ipp3 (x11 p.m.)
P:\SAC\CABLE\S12.CNF
1
40
"(2) OPPORTUNITY TO RESPOND.—The Com
mission -shall afford such cable operator an . oppor
:to, present data and arguments to establish._,
4 that there bas been no failure to meet its obligations
5 under this section.
6 "(3) REMEDIAL ACTIONS; DisMLsSAL.—Within
7 120 days after the date a complaint is filed, the
8 Commission shall determine whether the cable oper-
9 ator has met its obligations under this section. If the
10 Commission determines that the cable operator has
11 faded to meet such obligations, the Commission shall
12 order the cable operator to reposition the complain -
13 ing station or, in the case of an obligation to carry
14 a station, to commence carriage of the station and
15 to continue such carriage for at least 12 months. If
16 the Commission determines that the cable operator
17 has fully met the requirements of this section, it
18 shall dismiss the complaint.
19 "(e) INPu'r SELECTOR SWITCS RULES Aso',
20 IBRD.—No cable operator shall be required -
21 "(1) to provide or make affable any input se -
22 lector switch as defined in section 76.5(mm) of title
23 47, Code of Federal Regulations, or any comparable
24 device; or
September 13. 1 1192 (x17 p.m.)
F:\SAC\CABLE\SI2CNF
41
"(2) to provide information to subscribers about
input selector switches or comparable. devices..
"(f) REGULATIONS, BY C04ON_* Within 180,.
4 days after the date of enactment of thus section;; the -Com -
5 mission shall, following a rulemaking proceeding, _ issue
6 regulations implementing the requirements imposed by
7 this section. Such implementing regulations shall include
8 necessary reyisions to update section 76.51 of title 47 of
9 the Code of Federal Regulations.
10 "(g) SALES PRESENTATIONS AND PROGRAld LENGTH
11 Co s —
12 "(1) CARRIAGE PENDING PROCEEDLNG.—Pend-
13 ing the outcome of the proceeding under paragraph
14 (2), nothing in this Act shall require a cable opera -
15 tor to carry on any tier, or prohbit a cable operator
16 from carrying on any tier, the signal of any commer-
17 cial television station or video prong service
:18 that is predominantly utilized for the trarmnizsion of
19. • sales presentations or program length commercials.
20 "(2) PROCEEDING CONCERNING CERTAIN STA-
21
TA21 TioNs.—Within 270 days after the date of enact -
22 . meat of this section, the Commission, not -
23 withstanding prior proceedings to determine whether
24 broadcast television stations that are predominantly
25 utilized for the transmission of sales presentations
S.plemb.r 13,1992 (3:11 p.m.)
!':\SAC\CABLE\S12.CNF
42
1 or program length commercials are serving the' pub-
2 lic interest, convenience, and necessity, th 1l cora-
3 plete a. proceeding in accordance with this paragraph. _. -
4 to determine whether broadcast television stations.:.
5 that are predominantly utilized for the transmission
6 of sales presentations or program length commer-
7 rials are serving the public interest, convenience, and
8 necessity. In conducting such proceeding, the Com -
9 mission shall provide appropriate notice and oppor-
10 trinity for public comment. The Commission shall
11 consider the viewing of such stations, the level of
12 competing demands for the spectrum allocated to
13 such stations, and the role of such stations in pro -
14 viding competition to nonbroadcast services offering
15 similar programming. In the event that the Commis -
16 sion concludes that one or more of such stations are
17 serving the public interest, convenience, and neces-
18 sity, the Commission on shall qualify such stations as
19 local commercial television stations for purposes of
20 subsection (a). In the event that the Commission
21 concludes that one or more of such stations are not
serving the public interest, convenience, and neces-
22
23
sity, the Commission shall allow the licensees of such
24 stations a reasonable period within Which .to provide
25 different programming, and shall not deny such sta-
F:\SAC\CABLE\S12.0NF
43
1 tions a renewal expectancy solely because their pro -
2 gra-aaming consisted predominantly of sales presen-
3 talions or program length: commercials.
4 "(h) DEFINITIONS.-
5
EFINrrIONS-5 "(1) Loc..AL coMMERcuL TELEVISION STA -
6 TION. -
7 "(A) IN GENERAL. For purposes of this
8 section, the term `local commercial television
9 station' means any full power television broad -
10 cast station, other than a qualified non -
11 commercial educational television station within
12 the meaning of section 615(1)(1), licensed and
13 operating on a channel regularly assigned to its
14 community by the Commission that, with re -
15 spect to a particular cable system, is within the
16 same television market as the cable system.
17 "(B) EXCLIISIONS.—The term `local com-
18 mercial television station' shall not include -
19 "(i) low power television stations, tele -
20 vision translator stations, and passive re -
21 peaters which operate pursuant to part 74
22 of title 47, Code of Federal Regulations, or
23 any successor regulations thereto;
24 "(ii) a television broadcast station
25 that would be considered a distant signal
September 13, 1192 (3:11 p.m.)
F:\SAC\CASLE\S12.CNF
44
1 under section 111 of title 17, United _
2 States Code, if such station does not agree
3 to indemnify the cable operator for any in=
4 creased copyright liability resulting from
5 carriage on the cable system; or
6 "(iii) a television broadcast station
7 that does not deliver to the principal
8 headend of a cable system either a signal
9 level of —45dBm for Ute' - signals or
10 —49dBm for VHF signals at the input ter -
11 morals of the signal processing equipment,
12 if such station does not agree to be respon-
13 Bible for the costs of delivering to the cable
14 system a signal of good quality or a
15 baseband video signal.
16 "(C) MART DETZR fl ATIONS.-(i) For
17 purposes of this section, a . broadcasting sta-
18 Lion's market shall be determined. in the man -
19 ner provided in section 73.3555(d)(3)(i) of title
20 47, Code of Federal Regulations, as in effect on
21 May 1, 1991, except that, following a written
22 t regQest, the Commission may, with respect to a
23 particular television broadcast station, include
24 additional communities within its television
25 market or exclude communities from such sta-
S.ple ber 13.1!62 (3:11 p.m.)
F:\SAC\CABLE\S12CNF
45
1 lion's television market to better effectuate the
2 purposes of this section. In considering such re-
3 quests, the Co amission may determine "that..
4 particular communities are part of more than
5 one television market.
6 "(ii) In considering requests filed pursuant
7 to clause (i), the Commission shall afford par -
8 ticular attention to the value of localism by tak-
9 ing into account such factors as -
10 "(I) whether the station, or other sta-
ll tions located in the same area, have been
12 historically carried on the cable system or
13 systems within such community;
14 "(II) whether the television station
15 provides coverage or other local service to
16 such community;
17 "(III) whether any other television
18 station that is eligible to be carried by a
•
19 cable system in such community in fulfill -
20 went of the requirements of this section
21 provides news coverage of issues of concern
22 to such community or provides carriage or
23 coverage of sporting and other events of
24 interest to the community, and
S.pbnd.r 13,1992 (311 p.m.)
F: \SAC \ CABLE \S 12.CNF
1
46
"(IV) evidence of viewing patterns in
cable and noncable households within the
areas served by the cable system or sys-
4tems in such community.
5 "(iii) A cable operator shall not delete
6 from carriage the signal of a commercial tele-
' 7 vision station during the pendency of any pro -
8 ceeding pursuant to this subparagraph.
"(iv) In the rulemaking proceeding re-
quired by subsection (f), the Commission shall
provide for expedited consideration of requests
filed under this subparagraph.
9
10
11
12
13 - "(2) QIIALg'IED LOW POWER STATION.—The
14 term `qualified low power station' means any tele -
15 vision broadcast station conforming to the rules es -
:...16 tablished for Low Power Television Stations con -
17 . ,, taiaed in part 74 of title 47, Code of Federal Rego -
18 lations, only if -
19 "(A) such station broadcasts for at least
20 the minimum number of hours of operation re-
21quired by the Commission for television broad -
22 cast stations under part 73 of title 47, Code of
23 Federal Regulations;
24 "(B) such station meets all obligations and
25 requirements applicable to television broadcast
1 stations under part 73 of title 47, Code of Fed=
2 eral Regulations, with respect to the broadcast
3 of nonentertainment programming; , program- _
4 ming and rates involving political candidates,
5 election issues, controversial issues of public im-
6 portance, editorials, and personal attacks; pro -
7 gramming for children; and equal employment
8 opportunity,' and the Commission determines
9 that the provision of such programming by such
10 station would address local news and informa-
11 tional needs which are not being adequately
12 served by full power television broadcast sta-
13 tions because of the geographic distance of such
14 fall power stations from the low power station's
15 community of license,;
16 "(C) such station complies with inter -
17 ference regulations consistent with its secondary
18 stains pursuant to part 74 of title 47, Code of
19 Federal Regulations;
20 "(D) such station is located no more than
21 35 miles from the cable system's headend, and
22 delivers to the principal headend of the cable
23 system an over -the -air signal of good quality, as
24 determined by the Commission;
s.pt.i t.r 13, 19V2 (3:11 pm.)
F:\SAC\CABLE\S12.CNF
48
1 "(E) the community of license of such sta-
2 tion and the franchise area of the cable system
3 are both located outside of the largest 160 Met -
4 ropolitan Statistical Areas, ranked by popn-
5 lation, as determined by the Office of Manage-
6 ment and Budget on June 30, 1990, and the
7 population of such community of license on
8 such date did not exceed 35,000; and
9 "(F) there is no fall power television
10 broadcast station licensed to any community
11 within the county or other political subdivision
12 (of a State) served by the cable system.
13 Nothing in this paragraph shall be construed to
14 change the secondary statas of any low power sta-
15 , tion as provided_ in part 74 of title 47, Code of Fed -
16 eral Regulations, as in effect on the date of enact -
17 meat of this section.".
;.v 18 SEC. 5. CARRIAGE OF NONCOMMERCIAL STATIONS.
19 - Part II of title VI of the Communications Act of 1934
20 (47 U.S.C. 531 et seq.) is further amended by inserting
21. after section 614 (as added by section 4 of this Act) the
22 following new section:.
Saplembsr 13.1lf2 ('X71 p.m.)
F: \SAC\CABLE\S12CNF
49
1 "SEC. 61& CABRL4GE OF NONCOMMEB.CIAL EDUC ' TIONAL
2 TELEVISION. :.
3 "(a) CdRBTAciz O%i.IGATIONS.—In addition to the_ >.
4 carriage regairements set forth in section 614, each cable ,r
5 operator of a cable system shall carry the signals of quali-
6 fled noncommercial educational television stations in ac -
7 cordance with the provisions of this section.
8 "(b) REQUIREMENTS To CARRY QIIAT'n STA -
9 norm.-
10
IONS-10 "(1) GENERAL REQUIREMENT TO CARRY EACH
11 QUALIFIED STATION.—Subject to paragraphs (2)
12 and (3) and subsection (e), each cable operator shall
13 carry, on the cable system of that cable operator,
14 any qualified local noncommercial educational tele -
15 vision station requesting carriage.
16 "(2) (A) SYSTEMS wrrs 12 OR kr, wax CHAN-
17 NELS —Notwithstanding paragraph (1), a cable op -
18 erator of a cable system with 12 or fewer usable ac -
19 tivated channels shall be required to carry the signal
20 of one qualified local noncommercial educational tel -
21 evision station; except that a cable operator of such
22 a system shall comply with subsection (c) and may,
23 in its discretion, carry the signals of other qualified
24 noncommercial educational television stations.
25 "(B) In the case of a cable system described in
26 subparagraph (A) which operates beyond the pres-
S.pbnb.r 13. 1“2 (3:11 p.n►.)
\ SAC CABLE \ S12.atar
50
1 ence of any qualified local noncommercial edu-
2 national television station -
3 "(i) the cable operator shall import and
4 carry on that system the signal of one qualified
5 noncommercial educational television station;
6 "(ii) the selection for carriage of such a
7 signal shall be at the election of the cable oper-
8 arkr; and
9 "(iii) in order to satisfy the requirements
10 for carriage specified in this subsection, the
11 cable operator of the system shall not be re -
12 quired to remove any other programming serv-
13 ice actually provided to subscribers on March
14 29, 1990; except that such cable operator shall
15 use the first channel available to satisfy the re -
16 quirements of this subparagraph.
• 17 "(3) SYSTEMS WITH 13 TO 36 CHANNELS.—(A)
18 Subject to subsection (c), a cable operator of a cable
19 system with 13 to 36 usable activated channels -
20 "(i) shall carry the signal of at least one
21 qualified local noncommercial educational tele-
• 22 - 'vision station but shall not be required to carry
23
the signals of more than three such stations,
24 and
51
1 "(ii) may, in its discretion, carry additional
2 such stations.
3 "(B) In the case of a cable system described in
4 this paragraph Which operates beyond the presence
5 of any qualified local noncommercial educational tel -
6 evision station, the cable operator shall import and
7 carry on that system the signal of at least one quail -
8 fied noncommercial educational television station to
9 comply with subparagraph (A) (i) .
10 "(C) The cable operator of a cable system de -
l1 scribed in this paragraph which carries the signal of
12 a qualified local noncommercial educational station
13 affiliated with a State public television network shall
14 not be required to carry the signal of any additional
15 qualified local noncommercial educational television
16 stations affiliated with the same network if the pro -
17 gramming of such additional stations is substantially
18 duplicated by the programming of the qualified local
19 noncommercial educational television station receiv-
20 ing carriage.
21 "(D) A cable operator of a system described in
22 . this paragraph which increases the usable activated
23 channel capacity of the system to more than 36
24 channels on or after Mprch 29, 1990, ���il, in ac -
25 :. cordance with = the other provisions of this section,
Smpdnb.r 13.1992 (311 p.m.)
! :\SAC\CASLE\S1 .CNF
52..
1 car the signal of each qualified local non-
commercial educational television station requesting
carriage, subject to subsection (e):
4 "(c) CONTINUED CARRIAGE. OF EXISTING STA-
5 TioNs.—Notwithstanding any other provision of this sec -
6 tion, all cable operators shall continue to provide carriage
7 to all qualified local noncommercial educational television
8 stations whose signals were carried on thein systems as
9 of March 29, 1990. The requirements of this subsection
10 may be waived with respect to a particular cable operator
11 and a particular such station, upon the written consent
12 of the cable operator and the station.
13 "(d) PLAcEaN'r of ADDITIONAL SIGNALS.—A
14 cable operator required to add the signals of qualified local
15 noncommercial educational television stations to a cable
16 system under this section may do so, subject to approval
17 by the franchising authority pursuant to section 611, by
18 placing such additional stations on public, educational, or
19 governmental clumnPlc not in use for their designated pur-
20 poses.
21 "(e) SYSTEMS WITS Mom MAK 36 —
22 A cable operator of a cable system with a capacity of more
23 than 36 usable activated channels which is required to
24 carry the signals of three qualified local noncommercial
25 educational television stations shall not be required to
Sapbeber 13,1..2 (3:11 p.m.)
53
1 carry the signals of additional such stations the program -
2 ming of which substantially duplicates the programming
3 broadcast by another qualified local noncommercial eau -
4 cational television station requesting carriage. Substantial
5 duplication shall be defined by the Commission in a man -
6 ner that promotes access to distinctive noncommercial
7 educational television services.
8 "(f) Warms of NONDVPLICATION RIGETS.—A
9 qualified local noncommercial educational television sta-
10 tion whose signal is carried by a cable operator shall not.
11 assert any network nonduplication rights it may, have pur-
12 scant to section 76.92 of title 47, Code of Federal Regala-
13 tions, to require the deletion of programs aired on other
14 qualified local noncommercial educational television sta-
15 tions whose signals are carried by that cable operator.
16 "(g) CONDITIONS OF CARRIAGE. -
17 "(1) CONTENT TO BE CARRr .—A cable oper-
18 ator shall retransmit in its entirety the primary
19 video, accompanying audio, and line 21 closed cap -
20 tion travlamission of each qualified local non -
21 commercial educational television station whose sig -
22 nal is carried on the cable system, and, to the extent
23 technically feasible, program -related material carried
'L.
24 in the vertical blanking interval, or on subcarriers,
25 that may be necessary for receipt of programming
September 13. 1102 (x11 p.m.)
F: \SAC\ CAI3LE\S3.2.CNF
54
1 by handicapped persons or for educational or lan-
2 guage purposes. Retransmission of other material in
3 ' - the vertical blanking iaterval o.r �ustbcairiers shall
4 be within the discretion of the cable operator.
5 "(2) BANDWIDTH AND TECHNICAL QUALTIT:-
6 A cable operator shall provide each qualified local
7 noncommercial educational television station whose
8 signal is carried in accordance with this section with
9 bandwidth and technical capacity equivalent to that
10 provided to commercial television broadcast stations
11 carried on the cable system and shall carry the sig -
12 nal of each qualified local noncommercial educational
13 television station without material degradation.
14 "(3) CHANGES IN CARRIAGE.—The signal of a
15 qualified local noncommercial educational television
16 station than not be repositioned by a cable operator
17. mless the cable operator, at least 30 days in ad -
18 vane of such repositioning, has provided written no -
19 lice to the station and all subscribers of the cable
20 system. For purposes of this paragraph, reposition -
21 ing includes (A) assignment of a qualified local non-
commercial educational television station to a cable
23 _ system channel number different from the cable sys-
24 tem channel number to which the station was as -
25 signed as of March 29, 1990, and (B) deletion of the
September 13, I N2 (311 p.m.)
55
1 station from the cable system. The notification pro -
2 visions of this paragraph shall not be used to under -
3 mine or evade the channel positioning or carriage re -
4 gairements imposed upon cable operators under this
5 section.
6 "(4) GOOD QUALIT= SIGNAL LEQtTIRED —Not -
7 withstanding the other provisions of this section, a
8 cable operator shall not be required to carry the sig -
9 nal of any, qualified local noncommercial educational
10 television station which does not deliver to the cable
11 system's principal headend a signal of good quality
12 or a baseband video signal, as may be -defined by the
13 Commission.
14 "(5) CHANNEL FosITIoNZNG.—Each signal car -
15 ried in fulfillment of the carriage obligations of a
16 cable operator under this section shall be carried on
17 the cable system channel number on Which the quail -
18 fied local noncommercial educational television sta-
19 tion is broadcast over the air, or on the channel on
20 which it was carried on duly 19, 1985, at. the elec-
21 tion of the station, or on such other channel number
22 as is mutually agreed upon by the station and the
23 cable operator. Any dispute regarding the position -
24 ing of a qualified local noncommercial educational
S.pwrir 13,1332 (x11 p.m.)
F: \SAC\CABLE \S12CNF
56
television station shall be resolved by the Commis-
sion.
3 : "(h) AVAILABILITY OF SIGNNLs.—Signals. carried. in
4. falfiIlmeat of the carriage obligations of a cable_ operator
5 .under this section shall be available to everysubscssber
6 as part of the cable system's lowest priced service tier that
7 includes the retransmission of local commercial television
8 broadcast signals.
9 "(i) PANT FOR CARRIAGE PRoSIBrrEn —
10 • "(1) IN GENERAL.—A cable operator shall not
11 accept monetary payment or other valuable consider -
12 atzon in exchange for carriage of the signal of any
13 qualified local noncommercial educational television
14 - station carried in fulfillment of the requirements of
15 this section, except that such a station may be re -
16 paired to bear the cost associated with delivering a
17 good quality signal or a baseband video signal to the
18 principal headend of the cable system.
19 "(2) DISTANT SIGNAL EXCEPTION.—Not-
20 withstanding the provisions of this section, a cable
21 operator ahail not be required to add the signal of
22 a qualified local noncommercial educational tele -
23 vision station not already carried under the provision
24 of subsection (c), where such signal would be consid-
25 ered a distant signal for copyright purposes unless
September 13,1152 (r11 p.a.)
P:4SAC\CABLE\SI2CNF
57
1 . such station indemnifies the cable operator for any
2 increased copyright costs resulting from carriage of
3 such signal.
4 "(j) REMEDIES. -
5
E EDIES-5 . "(1) Co 1NT. = Whenever a- qualified local
6 noncommercial educational television station believes
7 . that a cable operator of a cable system has failed to
8 comply with the signal carriage requirements of this
9 section, the station may file a complaint with the
10 Commission. Such complaint shall allege the manner
11 in which such cable operator has faded to comply
12 with such requirements and state the basis for such
13 - . allegations.
14 "(2) OPPORTUNITY TO RESPOND.—The Com -
15 mission shall afford such cable operator an oppor-
16 tuaity to present data, views, and arguments to es -
17 tablish that the cable operator has complied with the
18 signal carriage requirements of this section.
19 "(3) REMEDIAL ACTIONS; DIS}IISS & ..—Within
20 . 120 days after the date a complaint is filed under
21 this subsection, the Commission shall determine
22 whether the cable operator has complied with the re -
23 gairements of this section. If the Commission deter -
24 mines that the cable operator has failed to comply
25 with such requirements, the Commission shall state
Septerrtst 13.1112 (x11 p.m.)
F: \SAC \ CABLE \S12.CNF
58
1 with particularity the basis for such findings* and
2 order the cable operator to take such remedial action
3 , as is necessary to meet such requirements: -If, the,
4 -Ccimmission determines that the cable operatorlas
5 - tally complied with such requirements, the Commis -
6 sion shall dismiss the complaint.
7 "(k) IDEN'ITFICATION OF SIGNALS.—A cable opera -
8 tor shall identify, upon request by any person, those sig -
9 rials carried in fulfillment of the requirements of this sec -
10 on.
11 "(1) DEFInnoNs. For purposes of this section -
12 "(1) QuAlzrzim NONCOMICERCIAL
EDV -
13 =ZONAL TELEVISION stenoN.—The term 'quail -
14 fied noncommercial educational television station'
15 means any television broadcast station which -
16 "(A)(i) under the rules and regulations of
17 the Commission in effect on March 29, 19.90, is
18 licensed by the Commission as a noncommercial
19 educational television broadcast station and
20 which is owned and operated by a public agen-
21 cy, nonprofit foundation, corporation, or asso-
22 elation; and
23 "(ii) has as its licensee an entity which is
24 eligible to receive a community service grant, or
25 any successor grant thereto, from the Cor-
Soipteffiset 13, 1962 (311 pat.)
F: \SAC\CABLE \SI2.CNF
59
poration for Public Broadcasting, or any suc-
cessor organization thereto, on the basis of the
formula set forth in section 396(10(6)(B); or
"(B) is owned and operated by a mnnici-
5 pality and transmits predominantly non-
6 commercial programs for educational purposes.
7 Such term includes (I) the translator of any non -
8 commercial educational television station with five
9 watts or higher power serving the franchise area,
10 (II) a full-service station or translator if each station
11 or translator is licensed to a channel reserved for
12 noncommercial educational use pursuant to section
13 73.606 of title 47, Code of Federal Regulations, or
14 any successor regulations thereto, and (III) such
15 stations and translators operating on channels not
16 so reserved as the Commission determines are quell -
17 fied as noncommercial educational stations.
18 "(2) QII.D LOCAL NONCOMMERCIAL EDU-
19 CLTIoxAL TELEVISION STATION.—The term quali-
20 fied local noncommercial educational television sta-
21 tion' means a qualified noncommercial educational
22 television station -
23 "(A) which is licensed to a principal com-
24 munity whose reference point, as defined in sec
25 tion 76.53 of title 47, Code of Federal Regale-
Sapb rbK 13.1$ 2 (3:11 p.m.)
60
1 tions (as in effect on March 29, 1990), or any
2 successor regulations thereto, is within 50 miles
3 of the principal headend of the cable system; -or,
4 "(B) whose Grade B service contour, as
5 defined in section 73.683(a) of such title (as in
6 effect on March 29, 1990), or any successor
7 regulations thereto, =compasses the principal
8 headend of the cable system.".
9 SEC. 6. ErTBANSPCSSION CONSENT FOB CABLE SYSTEMS.
10 A r.—Section 325 of the CommtmicEv
11 tions Act of 1934 (47 U.S.C. 325) is amended -
12 (1) by reclesignating subsections (b) and (c) as
13 subsections (c) and (d), respectively; and
14 (2) by inserting immediately after subsection
15 (a) the following new subsection:
16 "(b)(1) Following the date that is one year after the
17 date of enactment of the Cable Television Consumer Pro -
18 tection and Competition Act of 1992, no cable system or
19 other multichannel video programming distributor shall
20 retransmit the signal of a broadcasting station, or any
21 part thereof, except -
22 "(A) with the egress authority of the originat-
23 ing station; or
SepteeMaer 13, 1102 (Z11 p.m.)
F:1SAC\CABLE \S12.CNF
61
1 "(B) pursuant to section 614, in the case �of a
• 2 station electing, in accordance with this subsection,
to assert the right to -carriage under:. such .section., -
"(2) The provisions of this subsection shall not apply
S to -
6 "(A) retransmission of the signal of a non-
7
commercial broadcasting station;
8 "(B) retrpn-gmicion directly to a home satellite
9 antenna of the signal of a broadcasting station that
10 is not owned or operated by, or affiliated with, a
11 broadcasting network, if such signal was
12 retransmitted by a satellite carrier on May 1, 1991;
13 "(C) retransmission of the signal of a broad -
14 casting station that is owned or operated by, or af-
15 filiated with, a broadcasting network directly to a
16 home satellite antenna, if the household receiving
17 the signal is an unserved household; or
18 "(D) r retreinamiggion by a cable operator or
19 other multichannel video programming distributor of
20 the signal of a superstation if such signal- was ob-
21 tained from a satellite carrier and the originating
22 station was a saperstation on May 1, 1991.
23 For purposes of this paragraph, the. terms `satellite car -
24 -rier', `superstation', and `unserved household' have the
25 meanings given those terms, respectively, in section 119(d)
Saptsrtber 13.1 962 (til p.m.)
IP: \SAC\CABLE \S12CNF
62
1 of title 17, United States Code, as in effect on the date
2 of enactment of the Cable Television Consumer Protection
.
3 and Competition pct of 1992.
4 "(3) (A) Within 45 days after the date of enactment
5 of the Cable Television Consumer Protection and Com -
6 petition Act of 1992, the Commission shall commence a
7 rulemaking proceeding to establish regulations to govern
8 the exercise by television broadcast stations of the right
9 to grant retransmiasion consent under this subsection and
10 of the right to signal carriage under section 614, and such
11 other regulations as are necessary to adminicr the lim-
12 itations contained in paragraph (2). The Commission shall
13 consider in such proceeding the impact that the grant of
14 retransmission consent by television stations may have on
15 the rates for the basic service tier and shall ensure that
16 the regulations prescribed under this subsection do not
17 conflict with the Commission's obligation ander section
18 623(b)(1) to ensure that the rates for the basic service
19 tier are reasonable. Such rulemaking proceeding shall be
20 completed within 180 days after the date of enactment of
21 the Cable Television Consamer Protection and Com -
22 petition Act of 1992.
23 "(B) The regulations required by subparagraph (A)
24 shall require that television stations, within one year after
25 the date of enactment of the Cable Television Consumer
S.pwrib.r 13 1 ('&11 p.m.)
F:\SAC\CABLE\S12CNF
63
1 Protection and Competition Act of 1992 and every :three
2 years thereafter, make an election between the right to
3 grant retransmission consent under this sabsection -and
4 the, right_ to signal carriage under section 614. If _° there > .
5 is more than one cable system Which services the same
6 geographic area, a station's election shall apply to all such
7 cable systems.
8 "(4) If an originating television station elects under
9 paragraph (3)(B) to -exercise its right to grant
10 retransmission consent under this subsection with respect
11 to a cable system, the provisions of section 614 shall not
12 apply to the carriage of the signal of such station by such
13 cable system.
14 "(5) The exercise by a television broadcast station of
15 the right to grant retransmission consent under this sub -
16 section shall not interfere with or supersede the rights
17 ander section 614 or 615 of any station electing to assert
18 the right to signal carriage under that section.
19 "(6) Nothing in this section than be construed as
20 modifying the compulsory copyright license established in
21 section 111 of title 17, United States Code, or as affecting
22 existing or future video programming licensing agreements
23 between broadcasting stations and video programmers.".
September 13.1002 (x11 pJn.)
F:\SAC\CABLE\S1.2.CNF
64
1 SEC. 7. AWARD OF FRANCHISES; PROMOTION OF 'COM.
2 PETITION.
3 (a) .ADDITIONAL COldPitrilvX FRANCEISES.-
4 (1) AlsCiND24ENT.--Section 621(a)(1) of the
5 CommnnicatiOns 'Act of 1934 (47 U.S.C. 541(a)(1))
6 is amended by inserting before the period at the end
7 the following: "; cmept that a franchising authority
8 may not grant an exclusive franchise and may not
9 unreasonably refuse to award an additional competi-
10 live franchise. Any applicant whose application for a
11 second franollice has been denied by a final decision
12 of the frrtneihiging authority may appeal such fmal
13 decision pursuant to the provisions of section 635
14 for lure to comply with this sabsection".
15 (2) CONFORMING AMENDMENT.—Section
16 635(a) of the Communications Act of 1934 (47
17 U.S.C. 555(a)) is amended by inserting "621(a)(1),"
18 after "section".
19 (b) FB.Arrairrsz REcomancurra.—Section 621(a) of
20 the Comm.miications Act of 1934 (47 U.S.C. 541(a)) is
21 amended by adding at the end the following new para -
22 graph:
23 "(4) In awarding a franchise, the franchising
24 authority -
25 "(A) shall allow the applicant's cable system a
26 reasonable period of time to become capable of pro -
September 13, 1102 (311 p.m.)
7: \SAC \CABLE \S12.-Cla
65
1 viding cable service to all households in the franchise
2 area;
3 "(B) may require adequate assurance that the
4 cable_ operator will provide adequate public, eau, ,.
5 cational, and governmental access channel capacity,
6 facilities, or financial support; and
7 "(C) may require adequate assurance that the
8 cable operator has the finimoial, technical, or legal
9 qualifications to provide cable service.".
10 (c) MuNiciPAL AtrraoRrrres PERMITTED To OPER-
11 Azz SYSTEILS.—Section 621 of the Communications Act
12 of 1934 (47 U.S.C. 541) is amended—
(1) by inserting "and subsection (f)" before the
14 comma in subsection (b)(1); and
15 (2) by adding at the end the following new sub -
16 section:
17 "(f) No provision of this .Act shall be construed to -
18 "(1) prohibit a local or municipal authority that
19 is also, or is affiliated with, a franchising authority
20 from operating as a multichannel video program -
21 ming distributor in the franchise area, not -
22 withstanding the granting of one or more franchises
23 , by suc.h franchising authority; or
SapParresar 13, 1 ON (311 p.m.)
P: \SAC\ C.ABLE\.S12.CNF
66
1 "(2) require sash local or municipal authority
2 to secure a franchise to operate as a multichannel
3 video programming distributor.".
4tiza d CONSUMER. PROTECTION AND CUSTOMER SERVICE.
5 Section 632 of the Communications Act of 1934 (47
6 U.S.C. 552) is amended to read as follows:
7 'SEC. CM CONSUMER PROMOTION AND CUSTOMER SERV-
8
ERV
8 ICE,
9 "(a) FB.NCE SING AITTHOBITY ENFORCEMENT. A
10 franfthitizing authority may establish and enforce -
11 "(1) customer service requirements of the cable
12 operator, and
13 "(2) construction schedules and other construe -
14 tion -related requirements, including construction -re -
15 ]ated performance requirements, of the cable opera -
16 tor.
17 "(b) COMMISSION STANDARDS.—The Commission
18 shall, within 180 days of enactment of the Cable Tele -
19 vision Consumer Protection and Competition Act of 1992,
20 establish stlinaaris by which cable operators may fulfill
21 their customer service requirements. Bach standards shall
22 include, at a minimum, requirements governing -
23 "(1) cable system office hours and telephone
24 availability;
So/Amber IS. 1102 WS„ p.m.)
67
1 "(2) installations, outages, and service calls;
2 and
3 "(3) communications between the cable o
Pte'=
4 for and the subscriber (including standards govern
-
5 ing bills and refunds).
6 "(c) Cow. P&oTEcrioN Laws AND CUSTOMER
7 SCE AGREEMENTS. -
8
a rrrs-8 "(1) CoNstm zB PROTECTION rows—Nothing
9 in this title shall be construed to prohibit any State
10 or any franchising authority from enacting or en -
11 forcing any consumer protection law, to the extent
12 not specifacally preempted by this title.
13 "(2) CvsTos SERVICE REQUIREMENT
14 xTS.—Nothing in this section shall be con -
15 straed to preclude a franchising authority and a
16 cable operator from agreeing to customer service re -
17 gairements that exceed the standards established by
18 the Commission under subsection (b). Nothing in
19 this title sha11 be construed to prevent the establish -
20 went or enforcement of any municipal law or regula-
21 tion, or any State law, concerning customer service
22 that imposes customer service requirements that ex -
23
x23 . ceed the standards set by the Commission under this
24 section, or that addresses matters not addressed by
September 13. 11102 (W11 p.m.)
7:\.SAC\CABLE‘SI2CNF
68
1 the standards set by the Commission under this sec -
2 tion.".
3 BEC. 9. LEASED COMMERCIAL.AccEss,
4 (a) PIIBpoSE.—Section 612(a) of the Communica-
5 tions .Act of 1934 (47 U.S.C. 532(a)) is amendedby in -
6 sertiag "to promote competition in the delivery of diverse
7 sources of video programming and" after "purpose of this
8 section is".
9 (b) COMMISSION RULES ON MantruM REASONABLE
10 RsTEs AND OMER TSB AND CONDmONS.—Section
11 612(e) of such Act (47 U.S.C. 532(c)) is amended-
12
mended12 (1) in paragraph (1) by inserting "and with
13 rales prescribed by the Commission under paragraph
14 (4)" after "purpose of this section"; and
15 (2) by adding at the end the following new
16 paragraph:
17 "(4) (A) The Commission shall have the authority
18 to -
19 "(i) determine the maximum reasonable rates
20 that a cable operator may establish pursuant to
21 paragraph (1) for commercial use of designated
22 channel capacity, including the rate charged for the
23 big of rates to subscrlbers and for the collection
24 of revenue from subscribers by the cable operator for
25 such use;
Seetiffbar 15.1112 f111 p.m.1
• F:\SAC\CABLE\S12.CNF
69
1 "(ii) establish reasonable terms and conditions
2 for such .use, including those for billing and collee-
3 tion; and, -
4 "(iii) establish -procedures for the expedited res.. -
5 olution of disputes concerning rates or carriage -
6 under this section.
7 "(B) Within 180 days alter the date of enactment
8 of this paragraph, the Commission sion shall establish rales for
9 determining maximum reasonable rates ander snbpara-
10 graph (A) (i), for establishing terms and conditions under
11 subparagraph (A) (ii), and for providing procedures under
12 subparagraph (A) (iii).".
13 (c) ACCESS FOR QUaLrIT Mi oBn'Y PROGRAMMING
14 SovRCEs AND Q1:14D EDUCLTION.L PROGRAMMING
15 SoDBCEs.—Section 612 of such Act (47 U.S.C. 532) is
16 amended by adding at the end thereof the following new
17. subsection:
18. ' "(i)(1) Notwithstanding the provisions of subsections
19 (b) and (c), a cable operator required by this section to
20 date channel capacity for commercial use may use
21 any such channel capacity for the provision of program -
22 ming from a qualified minority programming source or
23 from any qualified educational programming source,
24 whether or not such source is affiliated with the cable op -
25 erator. The channel capacity used to provide programming
Sepeafftrar 13,1992 (3:11 p.n.)
F:‘SAC\C.ASLE\SI2.CNF _;.
70
1 from a qualified minority programing source or -from any
2 qualified educational programming source pursuant to this
;3 subsection may not exceed 33 :percent of =the channel ca -
4 pacify designated pursuant to this section. No program-_
5 ming provided over a cable system on July 1, 1990, may
6 qualify as minority programming or ethcational program -
7 ming on that cable system ander this subsection.
8 "(2) For purposes of this subsection, the term 'quail -
.
9 fied minority programming source' means a programming
10 source which devotes substantially all of its programming
11 to coverage of minority viewpoints, or to programming di -
12 rested at members of minority groups, and which is over
13 50 percent minority-owned, as the term `minority' is de -
14 fined in section 309(i)(3)(C)(ii).
15 "(3) For purposes of this subsection, the term 'pall -
16 fied educational programming source' means a program -
17 ming source which devotes substantially all of its program -
18 ming to educational or instructional programming that
19 promotes public understanding of • mathematics, the
20 sciences, the humanities, and the arts and has a docu-
21 mented annual e=penditvre on progrPnrning exceeding
22 $15,000,000. The annual expenditure on programming
23 means all annual costs incurred by the programming
24 source to produce or acquire programs which are sched-
25 uled to be televised, and specifically excludes marketing,
s.pt.e,b.r ia. 1992 Mil p.m.)
F: \SAC\CASLE\S12CNF
71
1 promotion, satellite transmission and operational costs,
2 and general administrative costs.
3 "(4) Nothing:, in this -subsection shall substitute for
4 the requirements to carry qualified noncommercial edu-
5 cational television stations as specified under section
6 615.".
7 • (d) CONFORMING AMENDMENT.—Paragraph (5) of
8 section 612(b) of the Communications Act of 1934 (47
9 U.S.C. 532(b)) is amended to read as follows:'
10 "(5) For the purposes of this section, the term 'corn -
11 mercial use' means the provision of video programming,
12 whether or not for profit.".
13 SEC. 10. CHILDREN'S PROTECTION FROM INDECENT PRO -
14 GRAMMD G ON LEASED ACCESS CHANNELS.
15 (a) Au 2 .ORITY TO ENPOR'CE.-Section 612(h) of the
16 Communications Act of 1934 (47 U.S.C. 532(h)) is
17 amended -
18 (1) by inserting "or the cable operator" after
19 "franchising authority"; and
20 (2) by adding at the end thereof the following:
21 - "This subsection shall permit a cable operator to en -
22
n22 force prospectively a written and published policy of
23 prohibiting programming that the cable operator
24 reasonably believes describes or depicts sexual or ex -
25 cretory activities or organs in a patently offensive
Srptaefbar 13,1 f!2 M11 p.m.)
F: \.SAC\ CABLE \S 12. CNF
72
1 manner as measured by contemporary con xnunity
2 standards.".
,...:3 (b) Colrssox REGv>LTIoxs.-Section 612 of the
4 Communications Act of 1934 (47 U.S.C. 532) is amended
5 by inserting after subsection (i) (as added by section 9(c)
6 of this Act) the following new subsection:
7 "(j)(1) Within 120 days following the date of the en -
8 actment of this subsection, the Commission shall promul-
9 gate regulations designed to limit the access of children
10 to indecent programming, as defined by Commission regu-
11 lations, and which cable operators have not voluntarily
12 prohibited under subsection (h) by—
r 13 "(A) requiring cable operators to place on a
14 single channel all indecent programs, as identified by
15 program providers, intended for carriage on channels
16 designated for commercial use under this section;
17 "(B) requiring cable operators to block such
18 single channel unless the subscriber requests access
19 to such channel in writing; and
20 "(C) requiring programmers to inform cable op -
21 . erators if the program would be indecent as defined
22 ... by Commission regulations.
23 . : "(2) Cable operators shall comply *with- the regale -
24 tions promulgated pursuant to paragraph (1).".
sepwnb..13.1162 (Y11 p.m.)
73
1 (c) PRoEmBrrs SYSTEM UsE—Within 180 days fol -
2 lowing the date of the enactment of this Act, the Federal _
3 Communications Commission shall promulgate such regu-
4 lations as may be necessary to enable a cable operator of
5 a cable system to prohibit the use, on such system, _ of any
6 channel capacity of any public, educational, or govern-
7
overn7 mental access facility for any programming which contains
8 obscene material, semally explicit conduct, or material so -
9 licking or promoting unlawful conduct.
10 (d) CONFOR'cENa AmminsENT.---Section 638 of the
11 Communications Acct of 1934 (47 U.S.C. 558) is amended
12 by straing the period at the end and inserting the fol -
13 lowing: "unless the program involves obscene material.".
14 SEC. 1L LIMITATIONS TTATIONS ONO , CONTROL, AND VTI'
15 LIZATION.
16 (a) Coss- .--Secstion 613(a) of the Com -
17 munications Act of 1934 (47 U.S.C. 533(a)) is amended-
18
mended18 (1) by inserting "(1)" immediately after "(a)";
19 and
20 (2) by adding at the end the following new
21 paragraph:
22 "(2) It shall be unlawful for a cable operator to hold
23 a license for multichannel multipoint distribution service,
24 or to offer satellite master antenna television service sepa-
25 rate and apart from any franchised cable service, in any
September 13,1!02 (&11 p.m.)
7: \.SAC\CABLE \S12.CNF
74
1 portion of the franchise area served by that cable opera -
2._ tor's cable system. The Commission-
3
ommission3 "(A) shall waive the requirements of this para -
4 graph for all existing multichannel multipoint dis-
5 tribution services and satellite master antenna tele -
6 vision services which are owed by a cable operator
7 on the date of enactment of this paragraph; and
8 "(B) may Waive the requirements of this para -
9 graph to the extent the Commission determines is
10 necessary to ensure that all significant portions of a
11 franchise area are able to obtain video program -
12 ming.".
13 (b) CLauricATIoN of Loc&L Arnaosrrr To REGU-
14 LLTE .—Section 613(d) of the Communica-
15 tions Act of 1934 (47 U.S.C. 533(d)) is amended -
16 (1) by striking "any media" and inserting "any
17 other media"; and
18 (2) by adding at the end thereof the following:
19 "Nothing in this section shall be construed to pre -
20 vent any State or frnehi_cing authority from pro -
21 habiting the ownership or control of a cable system
22 in a jurisdiction by any person (1) because of such
23 person's ownership or control of any other cable sys-
24 tem in such jurisdiction; or (2) in circumstances in
25 which the State or franchising authority determines
Soplsmbw 13, 11192 (3:11 p.m.)
F: \SAC\ CABLE\S12.CNIP
75
1 that the acquisition of such a cable system may
2 eliminate or reduce competition in the delivery of _
3 cable service in such jurisdiction.".
'4 (c) COMMISSION REGULLTIONS.---Section 613 of the
5 Communications Act of 1934 (47 U.S.C. 533) is
6 amended -
7 (1) by redesignating subsections (f) and (g) as
8 subsections (g) and (h), respectively; and
9 (2) by inserting after subsection (e) the fol -
10 lowing new subsection:
11 "(p(1) In order to enhance effective competition, the
12 Commission shall, within one year after the date of enact -
13 ment of the Cable Television Consumer Protection and
14 Competition Act of 1992, conduct a proceeding -
15 "(A) to prescribe rules and regulations estab-
16 fishing reasonable limits on the number of cable sub -
17 ambers a person is authorized to reach through
• 18 cable systems owned by such person, or in which
19 such person has an attributable interest;
20 "(B) to prescribe rules and regulations estab-
21 fishing reasonable limits on the number of channels
22 on a cable system that can be occupied by a video
23 ` programmer in which a cable operator has an attrib-
• '- 24 utable interest; and
Simptimimpr 13.1902 (3:11 p.m.)
IP: \SAC\ CABLE \S12.CNF
76
"(C) to consider the necessity and appropriate-
ness of imposing limitations on the degree to which
multichannel video programming distizbutois may
engage in the creation or production of video pro-
s
6 "(2) In prescribing rules and regulations under para -
7 graph (1), the Commission shall, among other public inter -
8 est objectives -
9 "(A) ensure that no cable operator or group of
10 cable operators can unfairly impede, either because
11 of the size of any individual operator or because of
12 joint actions by a group of operators of sufficient
13 size, the flow of video programming from the video
14 programmer to the consumer,
15 "(B) ensure that cable operators affiliated with
16 video programmers do not favor such programmers
17 in determining carriage on their cable systems or do
18 not unreasonably restrict the flow of the video pro -
19 gramming of such programmers to other video dis-
20 tributory;
21 "(C) take particular account of the market
22 :. structure, ownership patterns, and other relation -
23 ships of the cable television 'industry, including the
24 nature and market power of the local franchise, the
25 joint ownership of cable systems and video program-
S.pw„b.r 13, 1 on (x11 p.m.)
77.
1 mers, and the various types of non -equity controlling
2 interests;
"(D) account for any efficiencies and other ben-
efits that might be gained + through -increased owner -
5 ship or control;
6 "(E) make each rales and regulations reflect
7 the dynamic nature of the communications market -
8 place;
9 "(F) not impose limitations which would bar
10 cable operators from serving previously unserved
11 rural areas; and
12 "(G) not impose limitations which would impair
13 the development of diverse and high quality video
14 programming.".
15 SEC. 12. REGULATION OF CARRIAGE AGREEMENTS.
16 Part II of title VI of the Communications Act of 1934
17 is amended by inserting after section 615 (as added by
18 section 5 of this Act) the following new section:
i ^ 19 'BEC. 116. REGULATION OF CARRIAGE
20 "(a) REGULATIONS. Within one year after the date
21 of enactment of this section, the Commission shall estab-
22 lish regulations governing program carriage agreements
23 and related practices between cable operators or other
24 multichannel video programming distributors and video
25 programming vendors. Such regulations s1 Jl—
SSp1+bR 13,1102 (T11 p.m.)
F:\SAC\CABLE\s12.CIgP
78
"(1) include provisions designed to prevent a
cable operator or other multichannel video program-
ming distributor from requiring a financial .interest
in a program service as a condition for carriage on
one or more of such operator's systems;
6 "(2) include provisions designed to prohibit a
7 cable operator or other multichannel video program -
8 ming distributor from coercing a video programming
9 vendor to provide, and from retaliating against such
10 a vendor for failing to provide, exclusive rights
11 against other multichannel video programming dis-
12 tr�butors as a condition of carriage on a system;
13 "(3) contain provisions designed to prevent a
14 multichannel video programming distributor from
15 engaging in conduct the effect of which is to unrea-
16 sonably restrain the ability of an unaffiliated video
17 programming vendor to compete fairly by discrimi-
18 nesting in video programming distribution on the
19 basis of affiliation or nonaffiliation of vendors in the
20 selection, terms, or conditions for carriage of video
21 programming provided by such vendors;
22 "(4) provide for expedited review of any com-
23 . plaints made by a video programming vendor pursn-
24 ant to this section;
a.pt.nt.►13.1 162 (111 p.m.)
79
1 "(5) provide for appropriate penalties and rem -
2 edies for violations of this subsection, including car-
riage; and
4 "(6) provide penalties to be ,assessed against
5 any person filing a frivolous complaint pursuant to
6 this section.
7 "(b) DEF' rnox.—As used is this section, the term
8 'video progromnthtg vendor' means a person engaged in
9 the production, creation, or wholesale distribution of video
10 programming for sale.".
11 SEC. 13. SALES OF CABLE SYSTEMS.
12 Part II of title VI of the Communications Act of 1934
13 is further amended by adding at the end thereof the fol -
14 lowing new section:
15 'SEC. M. SALIM OF CABLE SYSTEMS.
16 "(a) 3 -YEAR HoLDD G PERIOD BEQt ED.—Except
17 as provided in this section, no cable operator may sell or
-18 otherwise transfer ownership in a cable -system within a
19 36 -month period following either the acquisition or initial
20 construction of such system by such operator.
21 ".(b) nuramarr of MULTIPLE .—In
22 the case of a sale of multiple systems, if the terms of the
23 sale require the buyer to subsequently transfer ownership
24 of one or more such systems to one or more third parties,
S.p4.fr .r 13.1152 pc11 p.m.)
ij'
!':\SAC\CABLE \S12.0 NF
80
1 such ._transfers shall be considered a part of the initial
2 transaction.
3 "(c) EONS.-Subsection (a) shall not;: apply
4 to -
5 "(1) any transfer of ownership interest in any
6 cable system which is not subject to Federal income
7 tax liability
8 "(2) any sale required by operation of any law
or any act of any Federal agency, any State or polit-
ical subdivision thereof, or any franchising authority;
9
10
11 or
12 "(3) any sale, assignment, or transfer, to one or
13 more purchasers, assignees, or transferees controlled
14 by, controlling, or under common control with, the
15 seller, assignor, or transferor.
16 "(d) Warms AuraoRrrY.—The Commission may,
17 consistent with the public interest, waive the requirement
18 . of subsection (a), except that, if the franchise requires
19 franchise authority approval of a transfer, the Commission
20 shall not waive such requirements unless the franchise au -
21 thority has approved the transfer. The C mmisxion shall
22 use its authority under this subsection to permit appro-
23 priate transfers in the cases of default, foreclosure, or
24 other financial distress.
Sepimber 13,1 p2 (:r11 pJn.)
':\SAC\CABLE \S12.CNF
81
1 "(e) IDTaTION ON DURATION OF FRANCHISING
2 ArnaoRITY PowER To DISAPPROVE TRANSFERS.— In
3 ,the case of any sale or transfer of ownership of any cable
4 -system after the 36 -month period following acquisition of
5 such system, a franchising authority shall, if the. franchise
6 requires franchising authority approval of a sale or trans -
7 fer, have 120 days to act upon any request for approval
8 of such sale or transfer that contains or is accompanied
9 by such information as is required in accordance with
10 Commission regulations and by the franchising authority.
11 If the franelliwing authority fails to render a final decision
12 on the request within 120 days, such request shall be
13 deemed granted unless the regaesting party and the fisn-
14 chising authority agree to an extension of time.".
15 SEC. 14. SLTESCRIBER BILL ITEMIZATION.
16 Section 622(c) of the Communications Act of 1934
17 (47 U.S.C. 542(c)) is amended to read as follows:
18 "(c) Each cable operator may identify, consistent
19 with the regulations prescribed by the Commission pursu-
20 ant to section 623, as a separate line item on each regular
21 bill of each subscriber, each of the following:
22 "(1) The amount of the total bid assessed as a
23 franchise fee and the identity of the franchising au -
24 thority to which the fee is paid.
SOIMOMber13.1002 n'11 D.Rf 1
P: \SAC \CABLE \S12.CNIP
1
82
"(2) The amount of the total bill assessed to,
2 satisfy any requirements imposed on the cable.cpera-__
3 tor by .the franchise agreement to support ritiblic,
4 educational, or governmental channels or the use of
5 such channels.
6 "(3) The amount of any other fee, tax, assess -
7 ment, or charge of any kind imposed by any govern -
8 mental authority on the transaction between the op -
9 erator and the sabscrilper.".
10 SEC. 15. NOTICE TO CABLE SUBSCRIBERS ON UNSOLICITED
11 SEEUALLY ECPLICIT PROGRAMS.
12 Section 624(d) of the Communications Act of 1934
13 (47 U.S.C. 544(d)) is amended by adding at the end the
14 following new paragraph:
15 "(3)(A) If a cable operator provides a premium clan -
16 nel without charge to cable subscribers who do not gab -
17 sale to such premium channel, the cable operator shall,
18 not later than 30 days before such premium channel is
19 provided without charge -
20 "(i) notify all cable subscribers that the cable
21 operator plans to provide a premium channel with -
22 - out charge;
23 "(ii) notify all cable subscribers when the cable
24 operator plans to offer a premium channel without
25 charge;
83
1 "(iii) notify all cable subscribers that they have
2 a right to request that the channel caring the pre -
3 mium channel be blocked; and
4 "(iv) block the channel carrying the premiura
5 channel upon the request of a subscriber.
6 "(B) For the purpose of this section, the term `pre -
7 mium channel' shallmean any pay service offered on a
8 per channel or per program basis, which offers movies
9 rated by the Motion Picture Association of America as X,
10 NC -17, or R.".
11 SEC. 16. TECHNICAL STANDARDS; EMERGENCY ANNOUNCE -
12 /MINTS; PROGRAMBEING CHANGES; HOME
13 WIRING.
14 (a) TECHNICAL STANDARDS.—Section 624(e) of the
15 Communications Act of 1934 (47 U.S.C. 544(e)) is
16 amended to read as follows:
17 "(e) Within one year after the date of enactment of
18 the Cable Television Consumer Protection and Com -
19 petition Act of 1992, the Commission shall prescribe rega-
20 lations which establish minimum technical standards relat-
21 ing to cable systems' technical operation and signal qual-
22 ity. The Commission shall update such standards periodi-
cally to reflect improvements in technology. A franchising
24 authority may require as part of a franchise (including
25 a modification, renewal, or transfer thereof) provisions for
SeetornberIS.11Q2 f?11
P:\SAC\CABLE\S72.CNF
84
1 the enforcement of the standards prescribed under this
2 subsection. A franelliting authority may apply to the Com=
3 mission for a .Waiver to impose standards that are morel
4 _fit than the standards prescribed by the Commis
5 sion tinder this subsection,".
6 (b) EMERGENCY ANNOUNCEONTS.-...&C on 624 of
7 such Act (47 U.S.C. 544) is amended by adding at the
8 end the following new subsection:
9 "(g) Notwithstanding any such role, regulation, or
10 order, each cable operator shall comply with such stand -
11 ands as the Commission shall prescribe to ensure that
12 viewers of video programming on cable systems are af-
13 forded the same emergency information as is afforded by
14 the emergency broadcasting system pursuant to Commis -
15 sion regulations in subpart G of part 73, title 47, Code
16 of Federal Regulations.".
17 (c) PROGRAMXING CEL NGES.—Section 624 of such
18 Act (47 U.S.C. 544) is further amended—
19 (1) in subsection (b)(1), by inserting ", except
20 as provided in subsection (h)," after "but may not";
21 and
22 (2) by adding at the end the following new sub -
23 section:
24 "(h) A franchising authority may require a cable op -
25 erator to do any one or more of the following:
\ SA.C% CAI3LE \ S12. CNT
85
1 "(1) Provide 30 days' advance written notice of
2 any change in channel assignment or in the video
3 programming service provided over any such chan-
4 nel.
5 "(2) Inform sabscnbers, via written notice, that
6 comments on programming and channel position
7 changes are being recorded by a designated office of
8 the franchising authority.".
9 (d) Ho rcE Wrankro.—Section 624 of such Act (47
10 U.S.C. 544) is farther amended by adding at the end the
11 following new sabsection:
12 "(i) Within 120 days after the date of enactment of
13 this subsection, the Commission shall prescribe rules con -
14 cerning the disposition, after a subscriber to a cable sys-
15 tem terminates service, of any cable installed by the cable
16 operator within the premises of such subscriber.".
17 SEC. 17. CONSUMER ELECTRONICS EQUIPMENT C OMPAT-
18 arum
19 The Communications Act of 1934 is amended by add -
20 ing after section 624 (47 U.S.C. 544) the following new
21 section:
22 "SEC. SU& CONSUMER Er.scisoracs zQuipmENT COM -
23 PATIBILITT.
24 "(a) FINDINGS.—The Congress finds that--
Saelernber 13.111112 r311 osi.1
F: \SAC\CABLE‘S12-CNIP
86
1 "(1) new and recent models of television receiv-
2 ers and video cassette recorders often contain pre-
.
3 mium features and functions that are disabled or in -
4 lulaited because of cable scrambling, encoding, - or
5 encryption technologies and devices, including con -
6 verter boxes and remote control devices required by
7 cable operators to receive programming;
8 "(2) if these problems are allowed to persist,
9 consumers will be less likely to purcha.se, and elec-
10 tronics equipment manufacturers will be less likely.
11 to develop, manufacture, or offer for sale, television
12 receivers and video cassette recorders with new and
13 innovative features and functions; and
14 "(3) cable operators should use technologies
15 that will prevent signal thefts while permitting con -
16 gainers to benefit from such features and functions
17 in such receivers and recorders.
18 "(b) COMPATIBLE INTERFA.CES.-
19 "(1) REPORT; REGULLTIONEL—Within 1 year
20 after the date of enactment of this section, the Com -
21 mission, in consultation with representatives of the
22 cable industry and the consumer electronics indus-
23 tzy, shall report to Congress on means of assuring
24 compatibility between televisions and video cassette
25 recorders and cable systems, consistent with the
Septarrepar 13,1102 (311 p.m.)
r: ‘,5AC \ CABLE \S12.C:NF
87
1 need to prevent theft of cable service, so that. cable
2 subscribers will be able to enjoy the full benefit of
3 both theprogramm.ing available on cable systems
4 and the functions available on their televisions and
5 video cassette recorders.. Within 180 days after the
6 date of submission of the report required by this
7 subsection, the Commission shall issue such regala-
8 tions as are necessary to assure such compatibility.
9 "(2) G AND ENCRYPTION.—In issu-
10 ing the regulations referred to in paragraph (1), the
11 Cora.mission shall determine whether and, if so,
12 •ander what circumstances to permit cable systems to
13 scramble or encrypt signals or to restrict cable sys-
14 terns in the manner in which they encrypt or scram -
15 ble sigma's, except that the Commission shall not
16 limit the use of scrambling or encryption technology
17 where the use of such technology does not interfere
18 with the functions of subscribers' television receivers
19 . or video cassette recorders.
20 "(c) RuLEmacrNG REQUIREMENTS.
21 "(1) FAcroBs TO BE cox®EKED.—In pre -
22 - scribing the regulations required by this section, the
23 Commission shall consider -
24 "(A) the costs and benefits to consumers
25 of imposing compatibility requirements on cable
S.pPo b.r 12.1 N2 (3:11 p.m.)
F: \SAM CABLE \S12 -CNF
88
1 operators and television manufacturers in a
2 manner that, whale providing effective protec-
,
3 tion against theft or unauthorized reception of
4 cable service, will minimize interference with or
5 nullification of the special functions of subscrib-
6 ers' television receivers or video cassette record -
7 ers, including functions that permit the
8 subscriler-
9 "(i) to watch a program on one chan-
10 net while simultaneously using a video cas-
11 Bette recorder to tape a program on an -
12 other channel;
13 "(ii) to use a video cassette recorder
14 to tape two consecutive programs that ap-
15 pear on different channels; and
16 "(iii) to use advanced television pie-
._
17 tare generation and display features; and
18 "(B) the need for cable operators to pro -
19 tect the integrity of the signals transmitted by
20 the cable operator against theft or to protect
21 - such signals against unauthorized reception.
22 "(2) REM:RATIONS =Qui:RED.—The regola-
._
•
23 talons prescribed by the Commission under this sec -
Lk: 24 tion shall include such regulations as are
25 necessary—
Soc4striber 15. len C311e.rn.1
89
1 "(A) to specify the technical requirements
2 with which a television .receiver or video cassette
3 recorder mast comply in order to be sold as
4 `cable compatible' or `cable ready';
5 "(B) to require cable operators offering
6 channels whose reception requires a converter
7 box -
8 "(i) to notify subscribers that they
9 may be unable to benefit from the special
10 functions of their television receivers and
11 video cassette recorders, including func-
12 tions that permit subscribers --
13 "(I) to watch a program on one
14 channel while simultaneously using a
15 video cassette recorder to tape a pro -
16 gram on another channel;
17 "(II) to use a video cassette re -
18 corder to tape two consecutive pro -
19 grams that appear on different chan-
20 nets; and
21 "(III) to use advanced television
22 picture generation and display fea-
23 tures; and
24 "(ii) to the extent technically and eco -
25 nomically feasible, to offer subscribers the
S.oemb.r 13.1992 fx„ C.m.1
F: \SAC\CABLE \S12.CNF
90
1 option of having all other channels deliv-
2 ered directly to : the subscribers' television
3 receivers or video cassette recorders with -
4 out passing through the converter box;
5 "(C to promote the commercial availabi-
6 ity, from cable operators and retail vendors that
7 are not affiliated with cable systems, of con -
8 verter boxes and of remote control devices com-
9 patible with converter boxes;
10 "(D) to require a cable operator who offers
11 snbscrilers the option of renting a remote con -
12 trol unit
13 "(i) to notify subsc:nbers that they
14 may purchase a commercially available re -
15 mote control device from any source that
16 sells such devices rather than renting it
17 from the cable operator, and
18 "(ii) to specify the types of remote
19 control units that are compatible with the
20 converter box supplied by the cable opera -
21 tor, and
22 "(E) to prohbit a cable operator from tak-
23 ing any action that prevents or in any way dis-
24 ables the converter box supplied by the cable
FASAC CNF
91
1 operator from operating compatibly with com-
2 mercially ,available remote control units.
3 "(d) REVIEW of REGiULLTIONs.—The Commission
4 shall periodically review and, if necessary, modify the reg-..
5 mations issued pursuant to this section in light of any ac -
6 tions taken in response to such regulation and to reflect
7 improvements and changes in cable systems, television re -
8 ceivers, video cassette recorders, and similar technology.".
9 sEc.18. FBANCECESi RENEWAL.
10 (a) COMICENCEMEliT OF PROCEEDINGS.—Section
11 626(a) of the Communications Act of 1934 (47 U.S.C.
12 546(a)) is amended to read as follows:
13 "SEC. 626. (a)(1) A franchising authority may, on
14 its own initiative during the 6 -month period which begins
15 with the 36th month before the franchise expiration, corn -
16 mence a proceeding which affords the public in the fran-
17 chise area appropriate notice and participation for the
18 purpose of (A) identifying the fntare cable -related commn-
19 pity needs and interests, and (B) reviewing the perform -
20 ance of the cable operator under the franchise during the
21 then current franchise term. If the cable operator submits,
22 during such 6 -month period, a written renewal notice re -
23 questing the commencement of such a proceeding, the
24 franchising authority shall commence such a proceeding
7:\SAC\CABLE\S12.CNIP
92
1 not later than 6 months after the date such notice is sub -
2 mittel.
3 "(2) The cable operator may not invoke the renewal
4 procedures set forth in subsections (b) tbroug?a (g)
5 unless -
6 "(A) such a proceeding is requested by the
7 cable operator by timely submission of such notice;
8 or
9 "(B) such a proceeding is commenced by the
10 franchising authority on its own initiative.".
11 (b) PROCEEDING ON RENEWAL PROPORAL.—SeCtion
12 626(c)(1) of the Communications Act of 1934 (47 U.S.C.
13 546(e)(1)) is amended -
14 (1) by inserting "pursuant to subsection (b)"
15 after "renewal of a franchise"; and
16 (2) by strilting "completion of any proceedings
17 under subsection (a)" and inserting the following:
18 "date of the submission of the cable operator's pro -
19 posal pursuant to subsection (b)".
20 • (c) REVIEW CRITERIA.--SeCtion 626(c)(1)(B) of the
21. Communications Act of 1934 (47 U.S.C. 546(c)(1)(B)) is
22 amended by string "mix, quality, or level" and inserting
23 "mix or quality".
!': \SAC\CABLE \S 12. CNF
93
1 (d) Coacox OF Fezv&ms.—Section 626(d) of
2 the Communications Act of 1934 (47 U.S.C. 546(d)) is,
3 amended--
4
mended4 (1) by inserting "that has been submitted in
5 compliance with subsection (b)" after: 'Any denial of:
6 a proposal for renewal"; and
7 (2) by sing "or has effectively acquiesced"
8 and inserting "or the cable operator gives written
9 notice of a failure or inability to care and the fran-
10 chising authority fails to object within a reasonable
11 time after receipt of such notice".
12 (e) HABILLEss ERROR.— Section 626(e)(2)(A) of the
13 Communications Act of 1934 (47 U.S.C. 546(e)(2)(A)) is
14 amended by inserting after "franchising authority' • the
15 following: ", other than harmless error,".
16 (f) CoNFicr BETWEEN REvoc.TIoN AND RE -
17 NEWAL PROCEEDINGS.—Section 626 of the Communica-
18 tions Act of 1934 (47 U.S.C. 546) is amended by adding
19 at the end the following new subsection:
20 "(i) Notwithstanding the provisions of subsections (a)
21 through (h), any lawful action to revoke a cable operator's
22 franchise for cause shall not be negated by the subsequent
23 initiation of renewal proceedings by the cable operator
24 under this section.".
F: \SAC\CABLE \S12.CNF
94
1 SEC. 19. DEVELOPMENT OF COMPE'ITITON AND DIVERSITY
2 • IN VIDEO PROGRAMMING DISTRIBUTION.
3 - Part m of title VI of the Cottannications.. Act of
4 1934 is amended by inserting after °section '627 (47 U.S.C.
5 - 547) the following new section:
6 SEC. Gs& DEVELOPMENT OF COIIIBEITITON AND DIVER.
7 SIT!' Di VIDEO PROGRAMEING DIS -
8 TRIBUTION.
9 "(a) PURPOSE.—The purpose of this *section is to
10 promote the public interest, convenience, and necessity by
11 increasing competition and diversity in the multichannel
12 video programming market, to increase the availability of
13 satellite cable programming and satellite broadcast pro -
14 gramming to persons in rural and other areas not cur -
15 rattly able to receive such programming, and to spur the
16 development of communications technologies.
17 "(b) PRoEIBrTION.—It shall be unlawful for a cable
18 operator, a satellite cable programming vendor in which
19 a cable operator has an attributable interest, or a satellite
20 broadcast programming vendor to engage in unfair meth -
21 ods of competition or unfair or deceptive acts or practices,
22 the purpose or effect of which is to binder significantly'
e _
23 or to prevent any multichannel video programming dis-
24 trbutor from providing satellite cable programming or
25 satellite broadcast programming to subscribers or consum-
26 ers.
S.oe.mbor 13. 1902 (3:11 o.m.1
F: \SAC \ CABLE \S 12. CNF
95
1 "(c) REGULATIONS REQUIRED.-
2
EQUIRED-2 " (1) PROCEEDING B QUItID .—Within 180
3 , days after the date of enactment of this section, the
4 Commission shall, in order to promote the public in -
5 terest, convenience, and necessity by increasing-com-..
6 petition and diversity in the multichannel video pro -
7 gramming market and the continuing development
8 of communications technologies, prescribe regnla-
9 tions to specify particular conduct that is prohibited
10 by subsection (b).
11 "(2) MINIMUM CONTENTS OF BEGUL&TIONS —
12 The regulations to be promulgated under this sec -
13 tion sbsdl —
14 "(A) establish effective safeguards to pre -
15 vent a cable operator Which has an attributable
16 interest in a satellite cable programming vendor
17 or a satellite broadcast programming vendor
18 from unduly or improperly influencing the deci-
19 sion of such vendor to sell, or the prices, ,terms,
20 and conditions of sale of, satellite cable pro -
21 gramming or satellite broadcast programming
22 to any unaffiliated multichannel video program -
23 ming distributor,
24 "(B) prohibit discrimination by a satellite
25 cable programming vendor in which a cable op-
F:\SAC\CABLE\S12.CNF
96
erator has an attributable interest or by a sat- -
ellite broadcar. programming vendor in - the
prices, terms, and conditions cksale or delivery
of satellite cable programming or satellite
5 broadcast programming among or between
6 cable systems, cable operators, or other multi -
7 channel video programming distributors, or
8 their agents or buying groups; except that such
.9 a satellite cable programming vendor in which
10 a cable operator has an attributable interest or
11 . such a satellite broadcast prong vendor
12 shall not be prohibited from—
13 "(i) imposing reasonable requirements
14 for creditworthiness, offering of service,
15 and financial stability and standards re -
16 garding character and technical quality;
17 .. "(ii) establishing different prices,
18 terms, and conditions to take into account
19 actual and reasonable differences in the
20 cost of creation, sale, delivery, or trans -
21 : mission , of satellite cable programming or
22 satellite broadcast progrn-frehrg;
23 "(iii) establichii g different prices,
24 terms, and conditions which take into ac -
25 count economies of scale, cost savings, or
P:\SAC\CABLE\S12CNF
97
1 other direct and legitimate economic bene-
fits reasonably attributable to the number
3 of subscribers :served by .the., distributor, or
4 "(iv) entering into an =elusive con-
tract that is permitted under subparagraph
6 (D);
7 "(C) prohibit practices, understandings,
8 arrangements, and activities, including exclusive
9 contracts for satellite cable programming or
10 satellite broadcast programming between a
11 cable operator and a satellite cable program -
12 ming vendor or sateiite broadcast programming
13 vendor, that prevent a multichannel video pro -
14 • gramming distributor from obtaining such pro -
15 gramming from any satellite cable programming
16 vendor in which a cable operator has an attriib-
17 utable interest or any satellite broadcast pro -
18 gramming vendor in which a cable operator has
19 • an attributable interest for distribution to per -
20 sons in areas not served by a cable operator as
21 ;. of the date of enactment of this section; and
?2 . "(D) with respect to distribution to per -
23 sons in areas .served by a cable operator, pro -
?4 hibit exclusive contracts for satellite cable pro -
25 gramming or satellite broadcast programmyig
F:\SAC\CABLE\S12.CNF
98
1 between a cable operator and a satellite cable
2 programming vendor in which a cable operator
3has an attributable interest or a satellite' broad -
4 cast programming vendor in which a- cable oper-
5 ator has an attrl'bntable interest, unless the
6 Commission determines (in accordance with
7 paragraph (4)) that such contract is in the pub -
8 lic interest.
9 "(3) LDreTtoxs.-
10 "(A) GEOGRAPHIC LznTTATIoxs —Nothing
11 in this section shall require any person who is
12 engaged in the national or regional distribution
13 of video programming to make such program -
14 ming available in any geographic area beyond
15 which such progiaing has been authorized
16 or licensed for distribution.
17 "(B) APPLICABILITY To SATELLITE
18 BE oxs.—Nothing in this section
19 ahan apply (1) to the signal of any broadcast af-
20 fiiiate of a national television network or other
21 television signal that is retransmitted by sat -
22 ellite but that .is not satellite broadcast pro -
23 gramming, or (ii) to any internal satellite com-
24 munication of any broadcast network or cable
99
1 network that is not satellite broadcast program -
2 ming.
3 "(4) PUBLIC INTEREST DET B ..TIONS ON
:4 ESCLIISTPE CONTRACTS. -iii `determining whether
5 an exclusive contract is is the public interest for
6 purposes of paragraph (2)(D), the Commission shall
7 consider each of the following factors with respect to
8 the effect of such contract on the distribution of
9 -video programming in areas that are served by a
10 cable operator.
11 "(A) the effect of such exclusive contract
12 on the development of competition in local and
13 national multichannel video programming dis-
14 tn'bution markets;
15 "(B) the effect of such exclusive contract
16 on competition from multichannel video pro -
17 gramming distribution technologies other than
18 cable;
19 "(C) the effect of such exclusive contract
20 on the attraction of capital investment in the
21 production and distribution of new satellite
22 cable programming;
23 "(D) the effect of such exclusive contract
24 on. diversity of programming in the multi-
F:\SAC\CABLE\S32.CNP
100
1 channel video proDgrarrning distribution market;
2 and
3 : "(E) the duration of the exclusive- contract.
. 4 - "(5) SUNSET PROOIs oN —The: prohibition re -
5d by paragraph (2) (D) shall cease to be effec-
6 live 10 years after the date of enactment of this sec -
7 tion, unless the Commission finds, in a proceeding
8 conducted during the last year of such 10 -year pe -
9 riod, that such prohibition continues to be necessary
10 to preserve and protect competition and diversity in
11 the distribution of video programming.
12 "(d) ADJUDICLTORY PROCEEDING.—Any multi -
13 channel video progrxTuring distributor aggrieved by con -
14 duct that it alleges constitutes a violation of subsection
15 (b), or the regulations of the Commission under subsection
16 (c), may commence an adjudicatory proceeding at the
17 Commission_
18 _ "(e) REMEDIES FOR VIOL&TIONS —
19 "(1) REMEDIES AUTHORIZED.—Upon comple-
20 tion of such adjudicatory proceeding, the Commis -
21 sion shall have the power to order appropriate rem -
22 . --�. edies, including, if necessary, the power to establish
23 prices, terms, and conditions of sale of programming
24 to the aggrieved multichannel video programming
25 distributor.
F: \SAC \ CABLE \S 12. CNF
101
1 "(2) ADDITIONAL REMEDIES.—The remedies
2 provided in paragraph (1) are in addition to and not
3 m lieu of the remedies available under title V or any
4 other provision of this Act.
5 "(f) PROCEDVREs.—The Commission shall prescribe
6 regulations to implement this section. The Commission's
7 regulations shall -
8 "(1) provide for an expedited review of any
9 complaints made pursuant to this section;
10 "(2) establish procedures for the Commission to
11 collect such data, including the right to obtain copies
12 of all contracts and documents reflecting arrange -
13 ments and understandings alleged to violate this sec -
14 tion, as the Commission requires to carry out this
15 section; and
16 "(3) provide for penalties to be assessed against
17 any person filing a frivolous complaint pursuant to
18 this section.
19 "(g) REPOETs.—The Commission shall, beginning
20 . not later than 18 months after promulgation of the regula-
21 tions required by subsection (c), annually report to Con-
22 gress on the status of competition in the market for the
23 deliver* of video programming.
24 "(h) E IoNs FOR PRIOR CONTRACTS.—
F: \SAC\CABLE\S 32.CNF
102
1 ."(1) IN GENERAL.—Nothing in this section
2 shall- affect any contract that grants exclusive dis-
3 ` tnbtitionr rights to any person with respectto-sat= n ::
4 eUite =cable programming and that was entered - -into-
5 on or before June 1, 1990, except that the provi•
-
6 sions of subsection (c) (2) (C) shall apply for dis-
7 traction to persons in areas not served by a cable
8 operator.
9 "(2) L rrr'rION ON RENEWALS. —A contract
10 that was entered into on or before June 1, 1990, but
11 that is renewed or extended after the date of enact -
12 ment of this section shall not be exempt under para -
13 graph (1).
14 "(i) DEFINITIONS.—As used in this section:
15 "(1) The term `satellite cable programry+g' has
16 the meaning provided under section 705 of this Act,
17 except that such term does not include satellite
18 broadcast programming.
19 "(2) The term `satellite cable programming ven-
20 dor' means a person engaged in the production, cre-
21 ation, or wholesale distrlution for sale of satellite
22 cable programming, but does not include a satellite
23 broadcast programming vendor.
24 "(3) The term `satellite broadcast program -
25 ming' means broadcast video programming when
7: \SAC\ CABLE \S32.CNF
103
1 such programming is retransmitted by satellite and
the entity remitting such programming is not
the broadcaster or an entity performing such
retransmission on behalf of and with the specific
5 consent of the broadcaster.
6 "(4) The term `satellite broadcast programming
7 vendor' means a fixed service satellite' carrier that
8 provides service pursuant to section 119 of title 17,
9 United State Code, with respect to satellite broad -
10 cast programming.".
11 SEC. 20. CUSTOMER PRIVACY EIGHTS.
12 (a) D TloNs.—Section 631(a)(2) of the Commu-
13 nications Act of 1934 (47 U.S.C. 551(a)(2)) is amended
14 to read as follows:
15 "(2) For purposes of this section, other than sub -
16 section (h)-
17 "(A) the term `personally identifiable informs -
18 tion' does not include any record of aggregate data
19 which does not identify particular persons;
20 "(B) the term `other service' includes any wire
21 or radio communications service provided using any
22 of the facilities of a cable operator that are used in
23 the provision of cable service; and
24 "(C) the term `cable operator' includes, in addi-
25 tion to persons within the definition of cable opera-
F:\SAC\CABLE\S12.CNF
104
1 tor in section 602, any person who (i) is ownedor
2 controlled by, or under common ownership or -control
3 - with; a cable operator, and (ii) provides any wire
4 radio communications service.".
5 (b) ADDITIONAL ACTIONS REQUIRED.—Section
6 631(c)(1) of the Communications Act of 1934 (47 U.S.C.
7 551(c)(1)) is amended by inserting immediately before the
8 period at the end the following: "and shall take such ac -
9 tions as are necessary to prevent unauthorized access to
10 such information by a person other than the subscriber
11 or cable operator".
12 SEC. 21. THEFT OF ABLE SERVICE.
13 Section 633(b) of the Communications Act of 1934
14 (47 U.S.C. 533(b)) is amended -
15 (1) in paragraph (2)-
16 (A) by straing "$25,000" and inserting
17 "$50,000";
18 (B) by string "1 year" and inserting "2
19 years";
20 (C) by striking "$50,000" and inserting
21 "$100,000"; and
22 (D) by strig "2 years" and inserting "5
23 years"; and
24 (2) by adding at the end thereof the following
25 new paragraph:
S ote n6.r 13 100, 13-11 rt w,
F:\SAC\CABLE\S12.CNF
105
1 "(3) For purposes of all penalties and remedies estab-
2 lished for violations of subsection (a)(1), the prohibited ac -
::.3 tivity established herein as it applies to each such device
.4 shall be deemed a separate violation,".
5 SBC. ss. EQUAL EmPLOTMENT OPPORTUNITY.
6 (a) Frs Gs —The Congress fads and declares
7 that -
8 (1) despite the existence of regulations govern -
9 ing equal employment opportunity, females and mi -
10 norities are not employed in significant numbers in
11 positions of management authority in the cable and
12 broadcast television industries;
13 (2) increased numbers of females and minorities
14 in positions of management authority in the cable
15 and broadcast television industries advances the Na -
16 tion's policy favoring diversity in the expression of
17 views in the electronic media.; and
18 (3) rigorous enforcement of equal employment
19 opportunity rules and regulations is required in
20 order to effectively deter racial and gender discrimi-
21 nation.
22 (b) STANDARDS.—Section 634(d)(1) of the Commu-
23 nication Act of 1934 (47 II.S.C. 554(d)(1)) is amended
24 to read as follows:
F: \SAC \ CABLE \S 12. CNF
106
1 "(d)(1) Not later than 270 days after the date of en -
2 actment of the Cable Television Consumer Protection and: -
3 Competition Act of 1992, and after notice and opportunity:
4 for hearing, the Commission shall prescribe revisions . in
5 the rales under this section in order to implement the
6 amendments made to this section by such Act. Such revi-
7 sions shall be designed to promote equality of employment
8 opportunities for females and minorities in each of the job
9 categories itemized in paragraph (3).".
10 (C) CONTENTS OF ANNUAL STATISTICAL RE -
11 P0ETS.-Section 634(d)(3) of the Communications Act of
12 1934 (47 U.S.C. 554(d)(3)) is amended to read as follows:
13 "(3) (A) Such rules also shall require an entity speci-
14 fied in subsection (a) with more than 5 full-time employees
15 to file With the Commission an annual statistical report
16 identifying by race, sex, and job title the number of em -
17 ployees in each of the following full-time and part-time job
18 categories:
19 "(i) Corporate officers.
20 "(ii) General Manager.
21 "(iii) Chief Technician.
22 "(iv) Comptroller.
23 "(v) General Sales Manager.
24 "(vi) Production Manager.
25 "(vii) Managers.
F:\SAC\CABLE\SI2CNF
107
1 "(ti -iii) Professionals.
2 "(ix) Technicians.
3 - "(_) Sales Personnel -
4 "(xi) Office and Clerical Personnel
5 "(rii) Skilled Craftsperson.
6 "( ) Smiled Operatives.
7 "(xiv) Unskilled Laborers.
8 "(xv) Service Workers.
9 "(B) The report required by subparagraph (A) shall
10 be made on separate forms, provided by the Commission.,
11 for fall -time and part-time employees. The Commission's
12 roles shall sufficiently defne the job categories listed in
13 clauses (i) through (vi) of such subparagraph so as to en -
14 sure that only employees who are principal decisionmakers
15 and who have supervisory authority are reported for such
16 categories. The Commission shall adopt roles that define
17 the job categories listed in clauses (vii) through (xv) in
18 a manner that is consistent with the Commission policies
19 in effect on June 1, 1990. The Commission shall prescribe
20 the method by which entities shall be required to compute
21 and report the number of minorities and women in the
22 job categories listed in clauses (i) through (_) and the
23 number of minorities and women in the job categories list -
24 ed in clauses (i) through (xv) in proportion to the total
25 number of qualified minorities and women in the relevant
F:\SAC\CABLE\S12. CNF
108
1 labor market. The report chP11 include information on hir- _
2 ing, promotion, _ and recruitment practices necessary for=
3 the Commission to evaluate the efforts of entities to com-:
4 ply with the provisions of paragraph (2) of this subsection_=
5 The report shall be available for public inspection at the
6 entity's central location and at every location where 5 or
7 more full-time employees are regularly assigned to work
8 Nothing in this subsection shall be construed as prohibit -
9 ing the Commission from collecting or continuing to collect
10 statistical or other employment information in a manner
11 that it deems appropriate to carry out this section.".
12 (d) Pix Lr s.–Section 634(f)(2) of such Act (47
13 U.S.C. 554(f)(2)) is amended by strilang "$200" and in -
14 serting "$500".
15 (e) APPLICATION OF REQt EMENTS.—Section
16 634(h)(1) of such Act (47 U.S.C. 554(h)(1)) is amended
17 by inserting before the period the following: "and any mul-
18 tichannel video programming distributor".
19 (f) BROADCLSTsrra EQUAL EMPLOYMENT OPPoR-
20 TOxiTY.—Part I of title DI of the Communications Act
- 21 of 1934 is amended by inserting after section 333 (47
22 U.S.C. 333) the following new section:
F:\SAC\CABLE\S12.CNF
109
1 "SEC. 334. LIMITATION ON REVISION OF EQUAL EMPLOY -
2
ANT OPPORTUNITY REGULATIONS.
3 "(a) LEMITATION.—kept as specifically provided in
-
4 this section, the Commission shall not revise -
5 "(1) the regulations concerning equal ;employ -
6 meat opportmity as in effect on September 1, 1992
7 (47 C.F.R. 73.2080) as such regulations apply to
8 television broadcast station licensees and permittees;
9 or.
10 "(2) the forms used by such licensees and per -
11 mittees to report pertinent employment data to the
12 Commission.
13 "(b) MIDTERM .—The Commission shall re -
14 vise the regulations described in subsection (a) to require
15 a midterm review of television broadcast station licensees'
16 employment practices and to require the Commission to
17 inform such licensees of necessary improvements in re -
18 cruitment practices identified as a consequenceof such re -
19 view.
20 "(c) AUTHORITY TO MAHE TECHNICAL REVI-
21 =No.—The Commission may revise the regulations de -
22 scribed in subsection (a) to make nonsubstantive technical
23 . or clerical- revisions in such regulations as necessary to re -
24 fleet changes in technology, terminology, or Commission
25 organization.".
e .• ....... ..... -_.
F:\.SAC\CASLL\S12.CNF
110
1 (g) STUDY AND REPORT REQUIEM D. Not later than_
2 2 years after the date of enactment of this Act, the Com -
3 mission shall submit to the Congress a report pursuant
4 to a proceeding.. to: review and obtain public comment on
5 the effect and operation of the amendments made by this
6 section. In conducting such review, the Commission shall
7 consider the effectiveness of its procedures, regulations,
8 policies, standards, and guidelines in promoting equality
9 of employment opportunity and promotion opportunity,
10 and particularly the effectiveness of its procedures, regnla-
11 tions, policies, standards, and guidelines in promoting the
12 congressional policy favoring increased employment oppor-
13 tanity for women and minorities in positions of manage -
14 ment authority. The Commission shall forward to the Con -
15 gress such legislative recommendations to improve equal
16 employment opportunity in the broadcasting and cable in -
17 dnstries as it deems necessary.
18 sac. 2s. JUDICIAL REVIEW.
19 Section 635 of the Communications Act of 1934 (47
20 U.S.C. 555) is amended by adding at the end the following
21 new subsection:
22 "(c)(1) Notwithstanding any other provision of law,
23 any civil action challenging the constitutionality of section
24 614 or 615 of this Act or any provision thereof shall be
25 heard by a district court of three judges convened pursu-
F: \SAC\CABLE \S12.0 ,7
111
1 ant to .the provisions of section 2284 of title 28, United
2 States Code.
3 "(2) Notwithstanding any other provision of law, an,
4 interlocutory or final judgment, decree, or order .of,°.the
5 court of three judges in an action ander paragraph (1)
6 holding section 614 or 615 of this Act or any provision
7 thereof unconstitutional shall be reviewable as a matter
8 of right by direct appeal to the Supreme Court. Any such
9 appeal shall be filed not more than 20 days after entry
10 of such judgment, decree, or order.".
11 Inc. K LIMITATION ON FBANCHLSING AUTHORITY LIABIL-
12 ITY.
13 (a) AMENDMENT.—Part IV of title VI of the Commu-
14 nications Act of 1934 is amended by inserting after sec -
15 tion 635 (47 U.S.C. 555) the following new section:
16 'SPEC. 6S6A. LIMITATION OF FRANCHISING AUTHORITY II -
17 ABILITY.
18 "(a) SUITS FOB DAMAGES PB.OMBrrED.—In any
19 court proceeding pending on or initiated after the date of
20 enactment of this section involving any claim against a
21 franchising authority or other governmental entity, or any
22 official, member, employee, or agent of such authority or
.23 entity, arising from the regulation of cable service or from
24 a decision of approval or disapproval with respect to a
25 grant, renewal, transfer, or amendment of a franchise, any
September 13,1182 (sit p.m.)
F:\SAC\CABLE\S12.0 F
112
1 relief, to the extent such relief is required by any other
2 provision of Federal, State, or local law, shall be limited
3 to injunctive relief and declaratory relief.
4 , "(b) EXCEPTION FOR COMPLETED Gins. The lim-
5 itation contained in subsection (a) shall not apply to ac -
6 tions that, prior to such violation, have been determined
7 by a final order of a court of binding jurisdiction, no
8 longer subject to appeal, to be in violation of a cable opera -
9 tor's rights.
10 "(c) DISCRIMINATION CLAMS PERMITTED. Noth-
11 ing in this section shall be construed as limiting the relief
12 authorized with respect to any claim against a franehiging
13 authority or other governmental entity, or any official,
14 member, employee, or agent of such authority or entity,
15 to the extent such claim involves discrimination on the
16 basis of race, color, sex, age, religion, national origin, or
17 handicap.
18 "(d) RULE of CoNSTSIIcrrION.—Nothing in this sec -
19 tion shall be construed as creating or authorizing liability
20. of any ]find, under any law, for any action or failure to
,.:
21 act relating to cable service or the granting of a franchise
22 by any franchising authority or other governmental entity,
23 or any official, member, employee, or agent of such an -
24. thority or entity.".
113
1 (b) CONFORM:LNG AMENnKEN'r.—Section 635(b) of
2 the Communications Act of 1934 (47 U.S.C. 555(b)) is
3 amended by inserting "and with the provisions of sub- -
4 section (a)" after "subsection (a)".
5 SEC. 25. DIRECT BROADCAST SATELZZTE SERVICE OBLIGA
6 TIONS.
7 (a) ANnszxT.—Part I of title III of the Commu-
8 nications Act of 1934 is further amended by inserting
9 after section 334 (as added by section 22(f) of this Act)
.10 the following new section:
11 -SEC. 335 DIRECT BROADCAST SATELLITE SERVICE OBLI-
12 GATIONS.
13 "(a) PROCEEDING REQUIRED TO REvIEw DBS RE -
14 spoNsmIIzTzes.—The Commission shall, within 180 days
15 after the date of enactment of this section, initiate a rule -
16 making proceeding to impose, on providers of direct broad -
17 cast satellite service, public interest or other requirements
18 for providing video programming. Any regulations pre-
_. 19 scribed pursuant to such rulemaking shall, at a minimum,
20. apply the access to broadcast time requirement of section
21 312(a)(7) and the use of facilities requirements of section
22 315 to providers of direct broadcast satellite service pro -
23 viding video programming. Such proceeding also shall 0E-
24 mine the opportunities that the establishment of direct
25 broadcast satellite service provides for the principle of lo-
S.pt.e,b.r 13. 1892 (311 p.m.)
F:\SAC\CABLE\S12.CNF
114
1 talism under this Act, and the methods by which such
2 principle may be served through technological and other
3 developments in, or regulatioh of, such service.
4 "(b) CARRIAGE OBLIGATIONS FOR NolicomitERciAL,_
5 EDUCATIONAL, AND INFORMATIONAL PROGRA2D NG —
6 "(1) CHANNEL CAPACITY REQUIRED.—The
7 Commission shall require, as a condition of any pro -
8 vision, initial authorization, or authorization renewal
9 for a provider of direct broadcast satellite service
10 providing video programming, that the provider of
11 such service reserve a portion of its channel capac-
12 ity, equal to not less than 4 percent nor more than
13 7 percent, exclusively for noncommercial program -
14 ming of an educational or informational nature.
15 "(2) USE OF UNUSED CHANNEL CAPACITY.—A
16 provider of such service may utilize for any purpose
17 any unused channel capacity required to be reserved
18 under this subsection pending the actual use of such
19 channel capacity for noncommercial programming of
20 an educational or informational nature.
21 "(3) PRICES, TERMS, AND CONDITIONS; EDI -
22_ a TORS CONTROL.—A provider of direct broadcast
23 satellite service shall meet the requirements of this
24 subsection by malting channel capacity available to
25 national educational programming suppliers, upon
7:\SAC\CABLE \S12.CNF
115
1 reasonable prices, terms, and conditions, as deter -
2 mined by the Commission under paragraph (4). The
3 provider of direct broadcast satellite service shall not
4 exercise any editorial control over any video pro -
5 gramming provided pursuant to this subsection.
6 "(4) Lm r lois.—In determining reasonable
7 prices ander paragraph (3)-
8 "(A) the Commission shall take into ac -
9 count the nonprofit character of the program -
10 ming provider and any Federal funds used to
11 support such programming;
12 "(B) the Commission shall not permit such
13 prices to exceed, for any channel made available
14 under this subsection, 50 percent of the total
15 direct costs of making such channel available;
16 and
17 "(C) in the calculation of total direct costs,
18 the. Commission shall exclude—.-
19
xclude-19 "(i) marketing costs, general adminis-
20 trative costs, and similar overhead costs of
21 the provider of direct ,broadcast satellite
22 service; and
23 "(ii) the revenue that such provider
24 } . • might have obtained by making such chan-
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1 net available to a commercial provider of
2 video programming.
3 "(5) DEF LNITION6.—For purposes of this
4 subsection-
5 "(A) The term `provider of direct broad -
6 cast satellite service' means -
7 "(i) a licensee for a En -band satellite
8 system under part 100 of title 47 of the
9 Code of Federal Regulations; or
10 "(ii) any distributor who controls a
11 minimum number of channels (as specified
12 by Commission regulation) using a En -
13 band iced service satellite system for the
14 provision of video programming directly to
15 the home and licensed under part 25 of
16 title 47 of the Code of Federal Regula -
17 tions.
18 "(B) The term `national educational pro -
19 gramming supplier' includes any qualified non -
20 commercial educational television station, other
21 `public telecommunications entities, and public
22 or private educational institutions.".
23 (b) TzagrucAL Alcurramm.—Section 331 of such
24 Act as added by Public Law 97-259 (47 U.S.C. 332) is
25 redesignated as section 332.
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117
1 SEC. 26. SPORTS PROGRAMMING MIGRATION STUDY AND
2 REPORT.
3 (a) STUDY REQUIRED.—The Federal Communica-
4 tions Commission shall conduct an ongoing study on the,.:.
5 carriage of local, regional, and national sports program-.
6 ming by broadcast stations, cable programming networks,
7 and pay-per-view services. The study shall investigate and
8 analyze, on a sport -by -sport basis, trends in the migration
9 of such programming from carriage by broadcast stations
10 to carriage over cable programming networks and pay -per -
11 view systems, including the economic causes and the eco -
12 nomic and social consequences of such trends.
13 (b) REPORT ON STUDY.—The Federal Commtmica-
14 tions Commission Shall, on or before July 1, 1993, and
15 July 1, 1994, submit an interim and a final report, respec-
16 Lively, on the results of the study required by subsection
17 (a) to the Committee on Energy and Commerce of the
18 House of Representatives and the Committee on Com -
19 merce, Science, and Transportation of the Senate. Such
20 reports shall include a statement of the results, on a sport -
21 by -sport basis, of the analysis of the trends required by
22 subsection (a) and such legislative or regulatory rec-
23 ommendations as the Commission considers appropriate.
24 (c) ANALYSIS OF PREG7,IISIVE CONTRACTS RE -
25 WIRED.
September 13,1192 (r11 p.m.)
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1 (1) ANALYSIS REQUIRED —In conducting the
2 study required by subsection (a), the Commission
3 shall analyze the extent to which preclusive contracts
4 between college athletic conferences and video pro -
5 gra mining vendors have artificially and unfairly re -
6 stricted the supply of the sporting events of local
7 colleges for broadcast on local television stations. In
8 conducting such analysis, the Commission shall con -
9 suit with the Attorney General to determine whether
10. and to what extent such preclusive contracts are
11 prohibited by existing statutes. The reports required
12 by subsection (b) shall include separate statements
13 of the results of the analysis required by this sub -
14 section, together with such recommendations for leg -
15 islation as the Commission considers necessary and
16 appropriate.
17 (2) DErnirrioN.—For purposes of the sub -
18 section, the term "preclusive contract" includes any
19 contract that probbits-
20 (A) the live broadcast by a local television
21 station of a sporting event of a local college
22 team that is not carried, on a live basis, by any
23 cable system Within the local community served
24 by such local television station.; or
Septarerber 13.19 92 (211 p.m.)
119
1 (B) the delayed broadcast by a local tele -
2 vision station of a sporting event of a local col -
3 lege team that is not carried, on a live or de -
4 layed basis, by any cable system within the local
5 community served by such local television sta-
6 tion.
7 SEC. 27. APPLICABILITY OF ANTITRUST LAWS.
8 Nothing in this Act or the amendments made by this
9 Act shall be construed to alter or restrict in any manner
10 the applicability of any Federal or State antitrust law.
11 SEC. 28. EFFECTIVE DATE.
12 Except where otherwise expressly provided, the provi-
13 sions of this Act and the amendments made thereby shall
14 take effect 60 days after the date of enactment of this
15 Act.
And the Boum agree to the same.
That. the Senate recede from its disagreement to the amendment
of the Rouse to the title of the bill and agree to the same.
September 14. 1992 (11 01 a.m.)