Consumer Choice in Online Video Act - Amends the Communications Act of 1934 to direct the Federal Communications Commission (FCC) to promulgate regulations requiring Internet service providers (ISPs) to provide plain language disclosures to assist consumers in making informed decisions about the purchase of Internet service, including: (1) network management practices that limit service speeds or prioritize content, (2) usage-based billing terms, and (3) information regarding different tiers of service.
Directs ISPs offering usage-based billing to establish an appeals process for consumers to challenge an ISP's determination of a consumer's data usage.
Requires the FCC to extend its truth-in-billing rules to ISPs.
Prohibits ISPs, multichannel video programming distributors (MVPDs), online video distributors (OVDs), and video programming vendors (VPVs), in various circumstances and in their relationships with one another, from engaging in unfair methods of competition, or unfair or deceptive acts or practices, that hinder significantly or prevent an OVD from providing video programming to consumers.
Prohibits MVPDs or OVDs from entering agreements (for periods longer than 30 days) that limit or prohibit a VPV from making its video content available to consumers for free over the Internet.
Permits VPVs to establish different prices, terms, and conditions that: (1) relate to substantial, real, and legitimate business concerns; and (2) are not used in an anticompetitive manner.
Prohibits broadcast television licensees or television networks from: (1) refusing to negotiate with OVDs for the carriage of television content, or (2) restricting an OVD's ability to make such content available to subscribers on any platform or device.
Prohibits broadcast television licensees from providing an over-the-air signal that differs from a retransmission of that signal provided to a MVPD or an OVD, subject to exceptions for certain commercial advertisements embedded in such signal when the variation is not used to increase overall advertising time.
Permits antenna rental services to rent to a consumer access to an individual antenna to view over-the-air broadcast television signals transmitted directly to: (1) the consumer over the Internet or another IP-based transmission path; or (2) an individual data storage system, including an online remote system, for recording and then made accessible to that consumer through an IP-based path. Exempts such antenna rental services from certain retransmission consent fees.
Prohibits a VPV that has made its video programming available to consumers online from restricting access for a subscriber of an MVPD or its affiliate, or an OVD or its affiliate, during the time when such vendor is involved in a dispute with such distributor. Provides exceptions from such prohibition when a vendor requires a consumer to purchase access through a contract with a distributor.
Authorizes an aggrieved consumer, distributor, or affiliate to bring a civil action for an injunction to prevent or restrain such restricted access.
Permits OVDs that provide programming in a manner reasonably equivalent to MVPDs (based on subscriber experience, not underlying technology, and which may include services that record programming to watch at another time) to elect to be treated as non-facilities based MVPDs (NFB-MVPDs) in order to operate under a special category of modified communications laws and FCC regulations.
Directs the FCC to prohibit practices and arrangements, including exclusive video programming contracts, that prevent an NFB-MVPD from obtaining programming from any VPV.
Requires local commercial television broadcast stations, at the request of an NFB-MVPD serving a designated market area, to negotiate for carriage of their content over that distributor's system. Allows NFB-MVPDs to also deliver a non-local (out-of-market) commercial broadcast television station.
Deems a signal of such a non-local commercial broadcast television station delivered by an NFB-MVPD to be significantly viewed under FCC regulations, thereby enabling NFP-MVPDs to carry such non-local stations without incurring distant signal copyright fees. Exempts such signals from specified non-duplication, program exclusivity, and sports blackout rules.
Provides for an NFB-MVPD subscriber to: (1) receive programming from up to two commercial television stations that are affiliates of the same television network, provided that not more than one of the affiliates is located in a designated market area where the subscriber does not reside; and (2) view any subscribed commercial television station signals at any time and on any device, including a mobile device, that an NFB-MVPD has made capable of delivering the distributor's service.
Prohibits NFB-MVPDs from being required to carry the signal of a local commercial television station as a condition for carrying and delivering a non-local commercial broadcast television signal.
Requires NFB-MVPDs to reserve a portion of their channel capacity exclusively for educational or informational programming.
Provides for an NFB-MVPD carrying a broadcast television station signal to be considered a cable system under copyright laws addressing secondary transmissions, thereby authorizing such NFB-MVPDs to retransmit copyrighted works subject to compulsory licensing requirements and the payment of royalty fees.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1680 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1680
To amend the Communications Act of 1934 to increase consumer choice and
competition in the online video programming distribution marketplace,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 12, 2013
Mr. Rockefeller introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To amend the Communications Act of 1934 to increase consumer choice and
competition in the online video programming distribution marketplace,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Consumer Choice in
Online Video Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; statement of policy.
Sec. 3. Definitions.
TITLE I--BILLING FOR INTERNET SERVICE
Sec. 101. Consumer protections.
TITLE II--ONLINE VIDEO DISTRIBUTION ALTERNATIVES
Sec. 201. Protections for online video distributors.
Sec. 202. Federal Communications Commission report on peering.
TITLE III--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS
Sec. 301. Non-facilities based multichannel video programming
distributors.
TITLE IV--MISCELLANEOUS
Sec. 401. Technical and conforming amendments.
Sec. 402. Provisions as complementary.
Sec. 403. Applicability of antitrust laws.
Sec. 404. Severability.
SEC. 2. FINDINGS; STATEMENT OF POLICY.
(a) Findings.--Congress makes the following findings:
(1) Online video distribution has the potential to increase
consumer choice in video programming, lower prices for video
services, bring innovative services to the video distribution
marketplace, and disrupt the traditional multichannel video
distribution marketplace.
(2) Evolving consumer demand, improving technology, and
increased choice of viewing devices can make online video
distributors stronger competitors to multichannel video
programming distributors for an increasing number of viewers.
(3) Unlike traditional multichannel video programming
distributors, online video distributors do not own distribution
facilities and are dependent upon Internet service providers
(many of which are affiliated with multichannel video
programming distributors) for the delivery of their content to
viewers.
(4) Internet service providers' management and pricing of
broadband services affects online video distributors. Because
online video distribution consumes significant amounts of
Internet bandwidth, Internet service providers' use of usage-
based billing practices can negatively impact the competitive
position of online video distributors and the appeal of their
services to consumers.
(5) Internet service providers that are affiliated with a
multichannel video programming distributor or an online video
distributor have an increased incentive to degrade the delivery
of, or block entirely, traffic from the websites of other
online video distributors, or speed up or favor access to the
content and aggregation websites of their affiliates, because
online video distributors pose a threat to those affiliates'
video programming distribution businesses.
(6) Similarly, multichannel video programming distributors
who are affiliated with Internet service providers, online
video distributors who are affiliated with Internet service
providers, or video programming vendors with significant market
power have the incentive and ability to use their competitive
position to engage in unfair methods of competition meant to
hinder competition from online video distributors.
(7) Growth of online video distribution alternatives also
will depend, in part, on the distributor's ability to acquire
programming from content producers. Without access to content
on competitive terms, an online video distributor suffers a
distinct competitive harm.
(8) Some traditional multichannel video programming
distributors have admitted to taking steps to limit the ability
of online video distributors to access content or otherwise
effectively compete in the video distribution marketplace.
(9) Traditional multichannel video programming distributors
and even other online video distributors have the incentive and
ability to convince their video programming vendor partners not
to sell content to online video distributors or to sell content
to them at competitively disadvantageous prices, terms, and
conditions. They also have the incentive and ability to
retaliate against a video programming vendor that sells content
to an online video distributor.
(10) Traditional multichannel video programming
distributors have the incentive and ability to use their
relationships with manufacturers of television sets, set-top
boxes, and other customer premises equipment to favor their own
services over offerings from online video distributors.
(11) There is a substantial governmental and First
Amendment interest in--
(A) requiring Internet service providers to provide
consumers with accurate information about their
Internet service, and to ensure that data usage
monitoring systems are accurate, effective, and not
used for an anticompetitive purpose;
(B) promoting a diversity of views provided through
multiple technology media;
(C) promoting the development of online video
distribution platforms and fair competition amongst all
distributors and vendors of video programming;
(D) preventing Internet service providers that are
affiliated with a multichannel video programming
distributor or an online video distributor from
discriminating against unaffiliated content and
distributors in its exercise of control over consumers'
broadband connections;
(E) encouraging and protecting consumer choice and
innovation in online video distribution, including with
respect to distribution of broadcast television
content; and
(F) providing consumers with the ability to choose
to receive local broadcast television content from
various markets.
(b) Statement of Policy.--It is the policy of the Congress that--
(1) consumers should be fully informed about the terms and
conditions related to the purchase of Internet service from an
Internet service provider;
(2) usage-based billing systems used by an Internet service
provider should not be used in a way that harms development and
use of high-bandwidth consuming Internet applications and
services that might compete with that Internet service
provider's own services;
(3) the availability of a diversity of views and
information should be promoted to the public through various
video programming distribution platforms, including those
providing service by utilizing the Internet or other IP-based
transmission paths;
(4) existing multichannel video programming distributors
and video programming vendors should not have or exercise undue
market power with respect to online video distributors; and
(5) Internet service providers should not hinder through
anticompetitive behavior the ability of online video
distributors to provide services to their subscribers.
SEC. 3. DEFINITIONS.
In this Act:
(1) Broadcast television licensee.--The term ``broadcast
television licensee'' means the licensee of a full-power
television station or a low-power television station.
(2) Commission.--The term ``Commission'' means the Federal
Communications Commission.
(3) Internet service provider.--The term ``Internet service
provider'' means any provider of Internet service to an end
user, regardless of the technology used to provide that
service.
(4) Non-facilities based multichannel video programming
distributor.--The term ``non-facilities based multichannel
video programming distributor'' means an online video
distributor that has made the election permitted under section
672.
(5) Online video distributor.--The term ``online video
distributor'' means any entity, including a non-facilities
based multichannel video programming distributor, that--
(A) has its principal place of business in the
United States; and
(B) distributes video programming in the United
States by means of the Internet or another IP-based
transmission path provided by a person other than that
entity.
(6) Television network.--The term ``television network''
means a television network in the United States which offers an
interconnected program service on a regular basis for 15 or
more hours per week to at least 25 affiliated broadcast
stations in 10 or more States.
(7) Usage-based billing.--
(A) In general.--The term ``usage-based billing''
means a system of charging a consumer for Internet
service or the use of an IP-based transmission path
provided by an Internet service provider or other
entity that is based upon the amount of data the
consumer uses over a period of time.
(B) Inclusions.--The term ``usage-based billing''
includes--
(i) imposing a cap on the amount of data
the consumer can use based on the price the
consumer is willing to pay for service;
(ii) charging a consumer varying amounts
each billing cycle based on a per-megabyte,
per-gigabyte, or similar rate; and
(iii) establishing different tiers of
prices based on the amount of data the consumer
elects to consume in a billing cycle, whether
or not the amount acts as a cap on the
consumer's service.
(8) Video programming.--The term ``video programming''
means programming provided by, or generally considered
comparable to programming provided by, a television broadcast
station, whether or not such programming is delivered using a
portion of the electromagnetic frequency spectrum.
(9) Video programming vendor.--The term ``video programming
vendor'' means a person engaged in the production, creation, or
wholesale distribution of video programming for sale.
TITLE I--BILLING FOR INTERNET SERVICE
SEC. 101. CONSUMER PROTECTIONS.
Title VII of the Communications Act of 1934 (47 U.S.C. 601 et seq.)
is amended--
(1) by inserting before section 701 the following:
``PART I--GENERAL PROVISIONS'';
and
(2) by adding at the end the following:
``PART II--INTERNET SERVICES BILLING
``SEC. 721. CONSUMER PROTECTIONS.
``(a) General Disclosures.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations requiring Internet
service providers to disclose certain information that will
assist a consumer in making an informed decision about the
purchase of Internet service.
``(2) Requirements.--The regulations under paragraph (1)
shall require, at a minimum, that--
``(A) any advertising related to Internet service
include plain language disclosure of any information
the Commission considers necessary for a consumer to
make an informed decision about the purchase of that
Internet service;
``(B) an Internet service provider provide a plain
language disclosure to a consumer prior to the purchase
of Internet service that includes--
``(i) the length of the contract;
``(ii) the terms of renewal;
``(iii) a projected monthly bill, including
all fees and costs associated with the Internet
service;
``(iv) if the consumer is receiving
promotional pricing for service, a projected
monthly bill for service once that promotional
pricing period has ended;
``(v) the procedures to cancel the Internet
service, including any policies related to
early termination fees;
``(vi) the average actual data transmission
speeds, including both upload and download
speeds;
``(vii) any policies or practices regarding
network management, including limiting service
speeds or prioritizing content; and
``(viii) any other information that the
Commission considers necessary for the consumer
to make an informed decision about the purchase
of the Internet service.
``(b) Special Disclosures for Usage-Based Billing.--
``(1) In general.--As part of the rulemaking under
subsection (a), the Commission shall promulgate regulations to
protect consumers in the use of usage-based billing by Internet
service providers.
``(2) Plain language disclosure of terms and conditions.--
``(A) In general.--The regulations under paragraph
(1) shall require an Internet service provider to
provide a plain language disclosure of all terms and
conditions associated with its use of usage-based
billing to a consumer prior to the purchase of Internet
service.
``(B) Contents.--The plain language disclosure
under this paragraph shall include--
``(i) an explanation of how usage-based
billing will be applied to the consumer;
``(ii) a complete list of the tiers of
service;
``(iii) comparisons of how much data of
varying types, including video programming in
standard and high-definition, the consumer
would be able to consume each month under each
tier;
``(iv) the procedure for providing the
consumer the notifications under paragraph (4);
``(v) an explanation of the consequences,
if any, to a consumer for exceeding the
consumer's data usage amount, including any
fees that may be charged and any options a
consumer may have to avoid those fees;
``(vi) if the Internet service provider
provides a tool for a consumer to monitor the
consumer's data usage, a description of the
tool and how to use it;
``(vii) the appeals procedure under
paragraph (5); and
``(viii) any other information that the
Commission considers necessary to protect
consumers in the use of usage-based billing by
Internet service providers.
``(3) Monthly disclosure of data usage.--
``(A) Data usage.--An Internet service provider
that uses usage-based billing shall provide a plain
language disclosure to a consumer of the consumer's
data usage during each billing cycle as part of the
consumer's bill.
``(B) Data usage trends.--An Internet service
provider that uses usage-based billing shall include in
the consumer's bill information documenting the
consumer's data usage over the prior 6 monthly bills or
over a period beginning on the date that the consumer
contracted for the Internet service, whichever is
shorter.
``(4) Notifications.--
``(A) In general.--An Internet service provider
that uses usage-based billing shall provide to a
consumer notification of the amount of data the
consumer has remaining at the midpoint of a billing
cycle, and at any other increments the Commission finds
are in the public interest.
``(B) Form.--The Commission may determine the form
of the notifications required under this paragraph.
``(5) Consumer appeals.--Each Internet service provider
that uses usage-based billing shall establish an appeals
procedure for a consumer to obtain more detailed information
about the consumer's Internet data usage and to challenge the
Internet service provider's determination of that consumer's
data usage.
``(c) Truth-in-Billing for Internet Services.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall update its truth-in-billing rules to extend
the rules to Internet service providers.
``(2) Bundled services.--As part of the rulemaking under
paragraph (1), the Commission shall consider whether it is in
the public interest to establish truth-in-billing rules for
bundled communications service packages.
``(d) Exemption.--The Commission may exempt an Internet service
provider serving 20,000 or fewer subscribers from the requirements of
this section.
``(e) Special Consideration.--The Commission may take into account
the special considerations in an Internet service provider's delivery
technology, including wireless, when implementing this section.
``SEC. 722. CERTIFICATION OF DATA USAGE MONITORING SYSTEMS.
``(a) Independent Certification Required.--
``(1) In general.--An Internet service provider may not use
a data usage monitoring system as part of usage-based billing
unless the data usage monitoring system is certified under this
section.
``(2) Development of standards.--The Commission, after
consultation with the National Institute of Standards and
Technology, shall develop standards to ensure that a data usage
monitoring system accurately measures a consumer's usage of
data.
``(3) Certification process.--The Commission may certify a
data usage monitoring system for use in usage-based billing if
it determines that the data usage monitoring system accurately
measures consumer data usage and is in material compliance with
the standards under paragraph (2).
``(4) Permissible delegation.--The Commission may designate
1 or more impartial third parties to conduct the certification
of a data usage monitoring system under this section.
``(b) Periodic Review.--The Commission shall determine how to
ensure that an Internet service provider's data usage monitoring system
remains in compliance with this section.
``(c) Definition of Data Usage Monitoring System.--In this section,
the term `data usage monitoring system' means a system of monitoring
and calculating the amount of data a user has consumed--
``(1) while accessing the Internet;
``(2) while using hardware, software, or applications that
consume data transmitted over the Internet; or
``(3) while accessing another IP-based transmission path
provided by an Internet service provider or another entity.
``(d) Penalties.--The Commission is authorized to assess penalties
against any Internet service provider that fails to comply with this
section.
``(e) Rulemaking.--
``(1) In general.--The Commission shall promulgate
regulations to implement this section not later than 1 year
after the date of enactment of the Consumer Choice in Online
Video Act.
``(2) Exemption.--The regulations under paragraph (1) may
provide an exemption from the regulations for an Internet
service provider serving 20,000 or fewer subscribers.
``(3) Special considerations.--The Commission may take into
account the special considerations in an Internet service
provider's delivery technology, including wireless, when
implementing this section.''.
TITLE II--ONLINE VIDEO DISTRIBUTION ALTERNATIVES
SEC. 201. PROTECTIONS FOR ONLINE VIDEO DISTRIBUTORS.
Title VI of the Communications Act of 1934 (47 U.S.C. 521 et seq.)
is amended by adding at the end the following:
``PART VI--ONLINE VIDEO DISTRIBUTORS
``SEC. 661. DEFINITIONS.
``In this part:
``(1) Affiliated with.--For purposes of sections 663, 664,
and 667, the term `affiliated with' means that the Internet
service provider, multichannel video programming distributor,
online video distributor, or video programming vendor, as
appropriate, directly or indirectly, is owned or controlled by,
owns or controls, or is under common ownership or control with
another Internet service provider, multichannel video
programming distributor, online video distributor, or video
programming vendor, as appropriate. For purposes of this
paragraph, the term `own' means to own an equity interest, or
the equivalent thereof, of more than 10 percent.
``(2) Video programming.--The term `video programming'
means programming provided by, or generally considered
comparable to programming provided by, a television broadcast
station, whether or not such programming is delivered using a
portion of the electromagnetic frequency spectrum.
``SEC. 662. ENHANCEMENT OF CONSUMER CHOICE IN ONLINE VIDEO.
``The purposes of this part are--
``(1) to promote the public interest, convenience, and
necessity by increasing competition, innovation, and diversity
in the video programming marketplace;
``(2) to enhance consumer access to online video
distribution platforms and consumer choice in online video
programming; and
``(3) to increase the availability of video programming on
all platforms, including Internet-based platforms.
``SEC. 663. DEVELOPMENT OF COMPETITION AND DIVERSITY IN ONLINE VIDEO
DISTRIBUTION.
``(a) Prohibition.--It shall be unlawful for a designated
distributor to engage in unfair methods of competition or unfair or
deceptive acts or practices, the purpose or effect of which are to
hinder significantly or prevent an online video distributor from
providing video programming to consumers, including over any platform
or device capable of delivering that online video distributor's content
to consumers.
``(b) Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations to implement this
section.
``(2) Minimum contents.--At a minimum, the regulations
under this section shall--
``(A) specify the conduct that constitutes a prima
facie violation of subsection (a); and
``(B) establish effective safeguards to prevent a
designated distributor from--
``(i) unduly or improperly influencing the
decision of any other entity to make a
television set or other customer premises
equipment incompatible with the services
provided by any online video distributor;
``(ii) unduly or improperly using its own
customer premises equipment to discriminate
against, or otherwise favor its own services
over, the service provided by any online video
distributor;
``(iii) unduly or improperly influencing
the decision of any other entity to sell, or
the prices, terms, and conditions of the sale
of, video programming to any online video
distributor; and
``(iv) providing an incentive to any entity
in an attempt to deny video programming to an
online video distributor.
``(c) Exceptions.--
``(1) In general.--Subject to paragraph (2), a designated
distributor shall not be prohibited from--
``(A) imposing reasonable requirements for
creditworthiness, offering of service, and financial
stability and standards regarding character and
technical quality;
``(B) establishing different prices, terms, and
conditions to take into account economies of scale,
cost savings, or other direct and legitimate economic
benefits reasonably attributable to the number of
subscribers served by the online video distributor; and
``(C) imposing reasonable requirements to ensure
the security of the video programming being provided to
the online video distributor, including means to
authenticate the right of the distributor's subscribers
to access the programming.
``(2) Limitations.--An exception under paragraph (1)--
``(A) shall be related to the substantial, real,
and legitimate business concerns of the designated
distributor; and
``(B) may not be used in an anticompetitive manner.
``(d) Definition of Designated Distributor.--
``(1) In general.--In this section, the term `designated
distributor' means--
``(A) a multichannel video programming distributor
affiliated with an Internet service provider;
``(B) an online video distributor affiliated with
an Internet service provider; or
``(C) a video programming vendor with significant
market power.
``(2) Significant market power.--The Commission shall
establish rules for determining whether a video programming
vendor has significant market power under paragraph (1)(C).
``SEC. 664. ACCESS TO VIDEO PROGRAMMING.
``(a) Prohibitions.--It shall be unlawful for a multichannel video
programming distributor or an online video distributor--
``(1) to include in a contract with any video programming
vendor a provision that serves as a substantial disincentive
for the video programming vendor to sell its content to an
online video distributor;
``(2) to use any practice, understanding, arrangement, or
other agreement with a video programming vendor that has the
effect of causing the video programming vendor to face a
substantial disincentive to sell its content to an online video
distributor; or
``(3) to enter into a contract with a video programming
vendor that has the effect of preventing an online video
distributor from making the video programming vendor's content
available on any platform or device capable of delivering that
distributor's content to its subscribers.
``(b) Contract Limitations.--A multichannel video programming
distributor or an online video distributor may not include in any
contract with a video programming vendor any provision that requires
the multichannel video programming distributor or online video
distributor, as applicable, to be treated in material parity with other
similarly situated multichannel video programming distributors or
online video distributors with regard to pricing or other terms and
conditions of carriage of video programming.
``(c) Retaliation Prohibited.--A multichannel video programming
distributor or an online video distributor may not retaliate against--
``(1) any video programming vendor for making its video
programming available to an online video distributor;
``(2) any online video distributor for obtaining video
programming from a video programming vendor; or
``(3) any entity for exercising a right under this Act.
``(d) Exception.--Notwithstanding subsection (a) or any other
provision of this part, a multichannel video programming distributor or
an online video distributor may enter into an exclusive contract with a
video programming vendor for video programming provided by that video
programming vendor if the contract does not exceed the limits or
violate the prohibitions under subsection (e).
``(e) Public Interest Limitations on Exclusive Contracts.--
``(1) In general.--The Commission shall adopt limits on--
``(A) the ability of a multichannel video
programming distributor or an online video distributor
to enter into any contract for video programming that
includes an exclusivity provision that substantially
deters the development of an online video distribution
alternative; and
``(B) the ability of an online video distributor to
enter into any contract for video programming that
includes an exclusivity provision that substantially
deters the development of an online video distribution
alternative.
``(2) Prohibited contracts.--The Commission shall
prohibit--
``(A) a multichannel video programming distributor
from entering into an exclusive contract with a video
programming vendor that is affiliated with the
multichannel video programming distributor; and
``(B) an online video distributor from entering
into an exclusive contract with a video programming
vendor that is affiliated with the online video
distributor.
``(3) Limitations on other exclusive contracts for video
programming.--
``(A) In general.--The Commission shall establish
criteria for determining whether an exclusive contract
for programming substantially deters the development of
an online video distribution alternative.
``(B) Considerations.--In establishing the criteria
under subparagraph (A), the Commission shall consider
the totality of the circumstances surrounding the
contract, including--
``(i) the duration of the exclusivity
period;
``(ii) the effect of the exclusive contract
on capital investment in the production and
distribution of video programming;
``(iii) the time period after initial
first-day distribution of video programming to
consumers when the multichannel video
programming distributor or the online video
distributor is granted exclusive access to
distribute the programming; and
``(iv) the likelihood that the exclusive
contract will enhance diversity in programming
on video distribution platforms.
``(f) Online Distribution of Content by a Video Programming
Vendor.--
``(1) In general.--A multichannel video programming
distributor or an online video distributor may not enter into
an agreement that limits or prohibits a video programming
vendor from making its video content available to consumers
free over the Internet.
``(2) Exception.--The prohibition under paragraph (1) shall
not apply if the duration of the agreement is 30 days or less.
``(g) Prices, Terms, and Conditions for Programming.--A video
programming vendor may establish different prices, terms, and
conditions for its video programming if, taking into account economies
of scale, cost savings, or other direct and legitimate economic
benefits that are reasonably attributable to the number of subscribers
served by an online video distributor, the prices, terms, and
conditions--
``(1) are related to substantial, real, and legitimate
business concerns of the video programming vendor; and
``(2) are not used in an anticompetitive manner.
``(h) Regulations.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the
Commission shall promulgate regulations to specify particular
conduct that is prohibited by this section.
``(2) Minimum contents.--The regulations under this section
shall establish, at a minimum--
``(A) effective safeguards to prevent any activity
prohibited by this section; and
``(B) complaint and contract review procedures to
facilitate the Commission's ability to determine if a
multichannel video programming distributor, a video
programming vendor, or an online video distributor has
violated this section.
``(i) Existing Contracts.--
``(1) In general.--Subject to paragraph (2), nothing in
this section shall affect any contract, understanding, or
arrangement that was entered into on or before December 1,
2013.
``(2) Exceptions.--No contract, understanding, or
arrangement entered into on or before December 1, 2013, that
violates this section shall be enforceable by any person after
the date that is 3 years after the date of enactment of the
Consumer Choice in Online Video Act.
``(3) Limitation on renewals.--A contract, understanding,
or arrangement that was entered into on or before December 1,
2013, but that is renewed or extended after the date of
enactment of the Consumer Choice in Online Video Act shall not
be exempt under paragraph (1).
``SEC. 665. FOSTERING ACCESS TO VIDEO PROGRAMMING.
``(a) In General.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the Commission
shall commence a proceeding to determine the additional steps it should
take, in the public interest, to foster the ability of online video
distributors to gain access to video programming, offer innovative
services, and compete with multichannel video programming distributors.
``(b) Limitation.--The Commission shall not compel a video
programming vendor to sell its video programming to an online video
distributor as part of any rules adopted under this section.
``SEC. 666. BROADCAST TELEVISION LICENSEES AND TELEVISION NETWORKS.
``(a) Duty To Negotiate.--It shall be unlawful for a broadcast
television licensee or television network--
``(1) to refuse to negotiate with an online video
distributor for carriage of the broadcast television licensee's
or the television network's content, as applicable; or
``(2) to place any restriction on an online video
distributor's ability to make the broadcast television
licensee's or the television network's content, as applicable,
available on any platform or device that is capable of
delivering the online video distributor's content to its
subscribers.
``(b) Refusal To Negotiate; Commission Determination.--The
Commission shall determine what constitutes a refusal to negotiate
under subsection (a). The Commission may require a broadcast television
licensee or television network to engage in good faith negotiations
with an online video distributor. The Commission shall define good
faith for purposes of this subsection.
``(c) Online Retransmission of In-Market Broadcast Signals.--
``(1) Signal parity.--
``(A) In general.--It shall be unlawful for a
broadcast television licensee to provide an over-the-
air signal that differs from a retransmission of that
signal provided to a multichannel video programming
distributor or an online video distributor.
``(B) Exception.--Subparagraph (A) shall not apply
if--
``(i) the variation in the 2 signals
consists of a change to 1 or more commercial
advertisements of not more than 60 seconds in
duration embedded in a broadcast television
licensee's signal; and
``(ii) the broadcast television licensee is
not using the variation under clause (i) to
increase the overall amount of advertising time
in its over-the-air signal.
``(2) Antenna rental services.--
``(A) In general.--Notwithstanding any other
provision of this Act, except subparagraph (C), an
entity may rent to a consumer access to an individual
antenna to view over-the-air broadcast television
signals transmitted from that antenna--
``(i) directly to the consumer over the
Internet or another IP-based transmission path;
or
``(ii) to an individual data storage
system, including an online remote data storage
system, for recording and then made accessible
to that consumer through the Internet or
another IP-based transmission path.
``(B) Retransmission consent fees.--An antenna
rental service described under subparagraph (A) shall
be exempt from paying retransmission consent fees under
section 325 of this Act to any broadcast television
station whose signal is received by the individual
antenna and retransmitted to the subscriber.
``(C) Conditions of rental services.--An antenna
rental service described under subparagraph (A) shall--
``(i) only provide a subscriber with access
to over-the-air broadcast television signals
received by an individual antenna located in
the same designated market area (as defined in
section 671 of this Act) in which that
subscriber resides; and
``(ii) make available to a subscriber all
over-the-air broadcast signals that are
received by the individual antenna rented by
that subscriber, unless a signal is of such
poor quality that it cannot be transmitted to
the consumer in a reasonably viewable form.
``(d) Limits in Existing Programming and Affiliation Contracts.--
``(1) In general.--It shall be unlawful for any entity
selling or otherwise providing video programming to be
transmitted by a broadcast television licensee or television
network to include in any contract, agreement, understanding,
or arrangement with that licensee or network a limitation on
the ability of that licensee or network to comply with the
requirements of this section.
``(2) Existing contracts.--
``(A) In general.--Subject to subparagraph (B),
nothing in this section shall affect any contract,
understanding, or arrangement that was entered into on
or before December 1, 2013.
``(B) Exceptions.--No contract, understanding, or
arrangement entered into on or before December 1, 2013,
that violates this section shall be enforceable by any
person after the date that is 3 years after the date of
enactment of the Consumer Choice in Online Video Act.
``(C) Limitation on renewals.--A contract,
understanding, or arrangement that was entered into on
or before December 1, 2013, but that is renewed or
extended after the date of enactment of the Consumer
Choice in Online Video Act shall not be exempt under
subparagraph (A).
``(e) Regulations.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the Commission
shall promulgate regulations to implement this section. The Commission
shall not compel a broadcast television licensee or television network
to sell its video programming to an online video distributor as part of
any rules adopted under this section.
``SEC. 667. CONSUMER ACCESS TO CONTENT.
``(a) In General.--It shall be unlawful for a designated Internet
service provider to engage in unfair methods of competition or unfair
or deceptive acts or practices, the purpose or effect of which are to
hinder significantly or to prevent an online video distributor from
providing video programming to a consumer.
``(b) Regulations.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the Commission
shall promulgate regulations to specify particular conduct that is
prohibited by subsection (a). The Commission's regulations under this
section shall ensure, at a minimum, that a designated Internet service
provider does not--
``(1) block, degrade, or otherwise impair any content
provided by an online video distributor;
``(2) unreasonably discriminate in transmitting the content
of an unaffiliated online video distributor over the designated
Internet service provider's network;
``(3) provide benefits in the transmission of the video
content of any company affiliated with the Internet service
provider through specialized services or other means, or
otherwise leverage its ownership of the physical delivery
architecture to benefit that affiliated company in a way that
has the effect of harming competition from an unaffiliated
online video distributor; or
``(4) use billing systems, such as usage-based billing, in
a way that deters competition from unaffiliated online video
distributors that may be in competition with the Internet
service provider's or its affiliate's services.
``(c) Definition of Designated Internet Service Provider.--In this
section, the term `designated Internet service provider' means an
Internet service provider that is affiliated with a multichannel video
programming distributor, an online video distributor, or a video
programming vendor.
``SEC. 668. BLOCKING CONSUMER ACCESS TO ONLINE VIDEO PROGRAMMING.
``(a) In General.--No video programming vendor that has made
available its video programming to consumers online may restrict access
to that online video programming for a subscriber of a multichannel
video programming distributor or its affiliate, or an online video
distributor or its affiliate, during the time that vendor is involved
in a dispute with such distributor.
``(b) Exception.--
``(1) In general.--If a video programming vendor requires a
consumer to purchase access to its online video programming
through a contract with a multichannel video programming
distributor or an online video distributor then that vendor may
restrict access to that online video programming during the
time that the vendor is involved in a dispute with that
distributor.
``(2) Limitation.--The exception under this subsection
shall apply only to a subscriber to video services provided by
a multichannel video programming distributor or an online video
distributor involved in the dispute and not to a subscriber to
any other service provided by that distributor or its
affiliate.
``(c) Remedies.--
``(1) In general.--Any entity that is aggrieved by a
violation of this section may bring a civil action in a United
States district court or in any other court of competent
jurisdiction.
``(2) Authority.--The court may--
``(A) grant a temporary or final injunction on such
terms as it may deem reasonable to prevent or restrain
violations of this section;
``(B) award any damages it deems appropriate; and
``(C) direct the recovery of full costs, including
awarding reasonable attorneys' fees to an aggrieved
party who prevails.
``(d) Definitions.--In this section:
``(1) Available online.--The term `available online' means
both available over the Internet and through applications,
software, or other similar services on a mobile device.
``(2) Dispute.--The term `dispute' includes--
``(A) a dispute over carriage of the programming
provided by a video programming vendor to a
multichannel video programming distributor or online
video distributor; and
``(B) a dispute over carriage of the programming
provided by a television licensee or television network
under section 325(b) of this Act.
``(3) Entity that is aggrieved.--The term `entity that is
aggrieved' includes--
``(A) a consumer whose access to online video
programming has been restricted in violation of this
section; and
``(B) a multichannel video programming distributor
or its affiliate, or an online video distributor or its
affiliate, that has had a subscriber's access to online
video programming restricted in violation of this
section.
``SEC. 669. REMEDIES AND ADJUDICATIONS.
``(a) Adjudicatory Proceedings.--Any online video distributor
aggrieved by conduct that it alleges constitutes a violation of this
part, or the regulations of the Commission under this part, may
commence an adjudicatory proceeding at the Commission.
``(b) Remedies.--
``(1) Remedies authorized.--
``(A) Interim remedies.--The Commission may
authorize interim remedies during the pendency of a
complaint.
``(B) Appropriate remedies.--Upon completion of an
adjudicatory proceeding under this section, the
Commission shall have the power to order appropriate
remedies, including, if necessary, the power to
establish prices, terms, and conditions of sale of
programming to the aggrieved online video distributor.
``(2) Additional remedies.--The remedies provided in
paragraph (1) are in addition to and not in lieu of the
remedies available under title V or any other provision of this
Act.
``(c) Procedures.--In promulgating regulations to implement this
part, the Commission shall--
``(1) provide for an expedited review of any complaint made
under this part, including a procedural timeline to conclude
the review of each complaint not later than 180 days after the
date the complaint is filed;
``(2) establish procedures for the Commission to collect
any data, including the right to obtain copies of all contracts
and documents reflecting any practice, understanding,
arrangement, or agreement alleged to violate this part, as the
Commission requires to carry out this part; and
``(3) provide for penalties to be assessed against any
person filing a frivolous complaint under this part.''.
SEC. 202. FEDERAL COMMUNICATIONS COMMISSION REPORT ON PEERING.
(a) In General.--The Commission shall study--
(1) the status of peering, transit, and interconnection
agreements related to the transport and delivery of content
over the Internet and other IP-based transmission paths; and
(2) what impact the agreements under paragraph (1) or
disputes about the agreements under paragraph (1) have on
consumers and competition with respect to online video.
(b) Report.--Not later than 3 years after the date of enactment of
this Act, the Commission shall report the findings of the study under
subsection (a) to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and Commerce
of the House of Representatives.
TITLE III--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS
SEC. 301. NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS.
Title VI of the Communications Act of 1934 (47 U.S.C. 521 et seq.),
as amended by title II of this Act, is further amended by adding at the
end the following:
``PART VII--NON-FACILITIES BASED MULTICHANNEL VIDEO PROGRAMMING
DISTRIBUTORS
``SEC. 671. DEFINITIONS.
``In this part:
``(1) Designated market area.--The term `designated market
area' means a designated market area as determined by Nielsen
Media Research or by any successor system of dividing broadcast
television licensees into local markets that the Commission
determines is equivalent to the designated market area system
created by Nielsen Media Research.
``(2) Local commercial television station.--The term `local
commercial television station' means, with respect to a
subscriber to a non-facilities based multichannel video
programming distributor, any full power commercial television
station licensed and operating on a channel regularly assigned
to a community in the same designated market area as the
subscriber.
``(3) Local noncommercial educational television station.--
The term `local noncommercial educational television station'
means, with respect to a subscriber to a non-facilities based
multichannel video programming distributor, a television
broadcast station that is a noncommercial educational broadcast
station (as defined in section 397 of this Act), licensed and
operating on a channel regularly assigned to a community in the
same designated market area as the subscriber.
``(4) Non-local commercial television station.--The term
`non-local commercial television station' means, with respect
to a subscriber to a non-facilities based multichannel video
programming distributor, any full power commercial television
station licensed and operating on a channel regularly assigned
to a community not located in the same designated market area
as the subscriber.
``(5) Video programming.--The term `video programming'
means programming provided by, or generally considered
comparable to programming provided by, a television broadcast
station, whether or not such programming is delivered using a
portion of the electromagnetic frequency spectrum.
``SEC. 672. RIGHT TO ELECT STATUS.
``(a) In General.--Any online video distributor that provides
programming in a manner reasonably equivalent to a multichannel video
programming distributor may elect to be treated as a non-facilities
based multichannel video programming distributor under this part.
``(b) Procedure for Election.--Not later than 1 year after the date
of enactment of the Consumer Choice in Online Video Act, the Commission
shall establish the form and procedures for an online video distributor
to make the election permitted under subsection (a).
``(c) Definition of Reasonably Equivalent.--For purposes of this
section, the term `reasonably equivalent'--
``(1) means providing multiple channels of video
programming that allow a subscriber to watch that programming
in a fashion comparable to the services provided by
multichannel video programming distributors, regardless of the
means used to transmit the multiple channels of video
programming;
``(2) shall be based upon the subscriber experience in
using the service provided by the online video distributor, and
not the underlying technology used by the online video
distributor; and
``(3) may include services that include the ability for a
subscriber to record video programming and watch recorded
programming at another time if the underlying video programming
service being recorded conforms to this subsection.
``SEC. 673. EFFECT OF ELECTION.
``Any online video distributor that elects to be treated as a non-
facilities based multichannel video programming distributor under
section 672 shall have all of the rights and responsibilities under
this part.
``SEC. 674. FEDERAL COMMUNICATIONS COMMISSION PROCEEDING.
``(a) In General.--Not later than 1 year after the date of
enactment of the Consumer Choice in Online Video Act, the Commission
shall--
``(1) determine whether any of its rules and regulations
applicable to a multichannel video programming distributor
shall also be applied, in the public interest, to a non-
facilities based multichannel video programming distributor;
``(2) require a non-facilities based multichannel video
programming distributor to comply with the access to broadcast
time requirement under section 312(a)(7) of this Act and the
use of facilities requirements under section 315 of this Act;
``(3) consider whether it is in the public interest for the
Commission to adopt minimum technical quality standards for a
non-facilities based multichannel video programming
distributor; and
``(4) adopt any other rules the Commission considers
necessary to implement this part.
``(b) Limitation.--The Commission shall not require, as part of its
rulemaking under subsection (a), a non-facilities based multichannel
video programming distributor to comply with the basic tier and tier
buy-through requirement under section 623(b)(7).
``SEC. 675. PROGRAM ACCESS FOR NON-FACILITIES BASED MULTICHANNEL VIDEO
PROGRAMMING DISTRIBUTORS.
``(a) In General.--The Commission shall prohibit practices,
understandings, arrangements, and activities, including any exclusive
contract for video programming between a multichannel video programming
distributor and a video programming vendor or an online video
distributor and a video programming vendor that prevents a non-
facilities based multichannel video programming distributor from
obtaining programming from any video programming vendor.
``(b) Specific Actions Prohibited.--
``(1) Material parity restrictions.--A multichannel video
programming distributor or an online video distributor may not
include in any contract with a video programming vendor any
provision that requires the multichannel video programming
distributor or online video distributor, as applicable, to be
treated in material parity with other similarly situated
multichannel video programming distributors or online video
distributors with regard to pricing or other terms and
conditions of carriage of video programming.
``(2) Retaliation prohibited.--A multichannel video
programming distributor or an online video distributor may not
retaliate against--
``(A) any video programming vendor for making its
video programming available to a non-facilities based
multichannel video programming distributor;
``(B) any non-facilities based multichannel video
programming distributor for obtaining video programming
from a video programming vendor; or
``(C) any entity for exercising a right under this
Act.
``SEC. 676. CONSUMER CHOICE IN VIDEO PROGRAMMING.
``(a) In General.--As part of the rulemaking required by section
674, the Commission shall determine what, if any, additional steps it
should take, in the public interest, to allow a non-facilities based
multichannel video programming vendor to offer a subscriber greater
choice over the video programming that is part of the subscriber's
service.
``(b) Considerations.--As part of the proceeding under subsection
(a), the Commission shall consider whether to limit a video programming
vendor's use of certain contractual terms and conditions that
disincentivize or impede the ability of a subscriber to have greater
choice over the video programming packages or options the subscriber
can purchase from a non-facilities based multichannel video programming
vendor.
``(c) Limitation.--The Commission shall not compel a video
programming vendor to sell its video programming to a non-facilities
based multichannel video programming vendor as part of any rules
adopted under this section.
``SEC. 677. CARRIAGE OF COMMERCIAL BROADCAST TELEVISION SIGNALS.
``(a) In-Market Broadcast Television Signals.--
``(1) In general.--At the request of a non-facilities based
multichannel video programming distributor serving a designated
market area, a local commercial television broadcast station
located in that designated market area shall enter into
negotiations for carriage of its content over that
distributor's system.
``(2) Good faith requirements.--A local commercial
television station subject to the duty to negotiate under
paragraph (1) shall engage in good faith negotiations for
carriage of its signal in the designated marketed area where
the station is located. The Commission shall define good faith
for purposes of this paragraph.
``(3) Good signal requirements.--A local commercial
television broadcast station being carried by a non-facilities
based multichannel video programming distributor under this
subsection shall be responsible for delivering a good quality
signal suitable for distribution by that distributor.
``(b) Out-of-Market Broadcast Television Signals.--
``(1) In general.--In addition to any signal carried under
subsection (a), a non-facilities based multichannel video
programming distributor also may deliver to a subscriber the
signal of a non-local commercial broadcast television station
under this subsection and subsection (c).
``(2) Deemed significantly viewed.--
``(A) In general.--A signal of a non-local
commercial broadcast television station delivered by a
non-facilities based multichannel video programming
distributor under this section shall be deemed to be
significantly viewed within the meaning of section
76.54 of title 47, Code of Federal Regulations.
``(B) Exemptions.--The following regulations shall
not apply to a signal that is eligible to be carried
under this subsection:
``(i) Section 76.92 of title 47, Code of
Federal Regulations (relating to cable network
non-duplication).
``(ii) Section 76.122 of title 47, Code of
Federal Regulations (relating to satellite
network non-duplication).
``(iii) Section 76.101 of title 47, Code of
Federal Regulations (relating to cable
syndicated program exclusivity).
``(iv) Section 76.123 of title 47, Code of
Federal Regulations (relating to satellite
syndicated program exclusivity).
``(v) Section 76.111 of title 47, Code of
Federal Regulations (relating to cable sports
blackout).
``(vi) Section 76.127 of title 47, Code of
Federal Regulations (relating to satellite
sports blackout).
``(3) Subscriber preference.--In delivering a non-local
commercial broadcast television station signal to a subscriber
under this subsection, and consistent with subsection (c)--
``(A) the non-facilities based multichannel video
programming distributor shall provide the subscriber
with information regarding all signals that the
distributor is capable of making available to the
subscriber under this subsection;
``(B) the non-facilities based multichannel video
programming distributor shall offer a subscriber the
option to choose each non-local commercial television
station signal the subscriber wants to receive as part
of the subscriber's service; and
``(C) if a subscriber does not make a choice under
subparagraph (B), the non-facilities based multichannel
video programming distributor shall take reasonable
steps to deliver to the subscriber the signal of each
non-local commercial television station that is closest
in proximity.
``(4) Definition of closest in proximity.--
``(A) In general.--For purposes of paragraph (3),
the term `closest in proximity' means the non-local
commercial television station whose community of
license is the closest in distance to the subscriber's
place of residence.
``(B) Inclusions.--For purposes of paragraph (3),
the term `closest in proximity' includes a non-local
commercial television station located in a State other
than the State of the subscriber's place of residence.
``(c) Subscriber Rights.--
``(1) In general.--Notwithstanding any other provision of
law, a subscriber to a non-facilities based multichannel video
programming distributor shall be entitled to receive
programming from not more than 2 commercial television stations
that are affiliates of the same television network and not more
than 1 of the affiliates may be located in a designated market
area where the subscriber does not reside.
``(2) Local signal not required.--A non-facilities based
multichannel video programming distributor shall not be
required to carry the signal of a local commercial television
station under subsection (a) as a condition to carrying and
delivering to a consumer a non-local commercial broadcast
television signal under subsection (b).
``(3) Mobile platforms.--A subscriber shall have the right
to view any commercial television station signal provided to
that subscriber under this section at any time and on any
device, including a mobile device and any other device not
permanently located in the subscriber's place of residence,
that a non-facilities based multichannel video programming
distributor has made capable of delivering the distributor's
service to that subscriber.
``(d) Limits in Existing Programming and Affiliation Contracts.--
``(1) In general.--It shall be unlawful for any entity
selling or otherwise providing video programming to be
transmitted by a local or non-local commercial television
station to include in any contract, agreement, understanding,
or arrangement with that station a limitation on the ability of
the station to comply with the requirements of this section.
``(2) Existing contracts.--
``(A) In general.--Subject to subparagraph (B),
nothing in this section shall affect any contract,
understanding, or arrangement that was entered into on
or before December 1, 2013.
``(B) Exceptions.--No contract, understanding, or
arrangement entered into on or before December 1, 2013,
that violates this section shall be enforceable by any
person after the date that is 3 years after the date of
enactment of the Consumer Choice in Online Video Act.
``(C) Limitation on renewals.--A contract,
understanding, or arrangement that was entered into on
or before December 1, 2013, but that is renewed or
extended after the date of enactment of the Consumer
Choice in Online Video Act shall not be exempt under
subparagraph (A).
``SEC. 678. CARRIAGE OF NONCOMMERCIAL, EDUCATIONAL, AND INFORMATIONAL
PROGRAMMING.
``(a) Local Noncommercial Educational Television Stations.--
``(1) In general.--If a non-facilities based multichannel
video programming distributor elects to carry a local
commercial broadcast television signal under section 677(a),
that non-facilities based multichannel video programming
distributor shall carry, upon request, the signal of a local
noncommercial educational television station located in the
same designated market area of the local commercial television
broadcast station being carried under that section.
``(2) Carriage only in local market.--
``(A) In general.--A local noncommercial
educational television station shall be entitled to
carriage only in the designated market area to which
that station is assigned.
``(B) Systems of noncommercial educational
broadcast stations.--In the case of a system of 3 or
more noncommercial educational broadcast stations
licensed to a single State, public agency, or
political, educational, or special purpose subdivision
of a State, the carriage right under this subsection
shall apply to any designated market area in the State
where that system is located.
``(3) Good signal requirements.--A local noncommercial
educational television station that requests to be carried by a
non-facilities based multichannel video programming distributor
under paragraph (1) shall be responsible for delivering a good
quality signal suitable for distribution by that distributor.
``(b) Channel Reservation Requirements.--
``(1) In general.--The Commission shall require a non-
facilities based multichannel video programming distributor to
reserve a portion of its channel capacity, equal to not less
than 3.5 percent or not more than 7 percent, exclusively for
noncommercial programming of an educational or informational
nature.
``(2) Use of unused channel capacity.--A non-facilities
based multichannel video programming distributor may use for
any purpose any unused channel capacity required to be reserved
under this subsection pending the actual use of that channel
capacity for noncommercial programming of an educational or
informational nature.
``(3) Prices, terms, and conditions.--A non-facilities
based multichannel video programming distributor shall meet the
requirements of this subsection by making channel capacity
available to each national educational programming supplier,
upon reasonable prices, terms, and conditions, as determined by
the Commission under paragraph (5).
``(4) Editorial control.--A non-facilities based
multichannel video programming distributor may not exercise any
editorial control over any video programming provided under
this subsection.
``(5) Limitations.--In determining reasonable prices under
paragraph (3)--
``(A) the Commission, among other considerations,
shall consider the nonprofit character of the
programming provider and any Federal funds used to
support that programming;
``(B) the Commission shall not permit the prices to
exceed, for any channel capacity made available under
this subsection, 50 percent of the total direct costs
of making the channel capacity available; and
``(C) in the calculation of total direct costs, the
Commission shall exclude--
``(i) the marketing costs, general
administrative costs, and similar overhead
costs of the non-facilities based multichannel
video programming distributor; and
``(ii) the revenue that the non-facilities
based multichannel video programming
distributor might have obtained by making that
channel capacity available to a video
programming vendor.
``(6) Definition of channel capacity.--In this section, the
term `channel capacity' means the total number of channels of
video programming provided to a subscriber by the non-
facilities based multichannel video programming distributor,
without regard to whether that non-facilities based
multichannel video programming distributor uses a portion of
the electromagnetic frequency spectrum to deliver that channel
of video programming.
``SEC. 679. LICENSING.
``(a) In General.--A non-facilities based multichannel video
programming distributor that is carrying any broadcast television
station signal under section 677 or section 678 shall--
``(1) be considered to be a cable system under section 111
of title 17, United States Code; and
``(2) be subject to--
``(A) the statutory licensing requirements set
forth in sections 111(c) and 111(e) of that title;
``(B) payment of the fees required by section
111(d) of that title; and
``(C) the penalties under section 111 of that title
for failure to pay the fees required by that section.
``(b) Local Service Area of a Primary Transmitter.--For purposes of
the application of section 111 of title 17, United States Code, to a
non-facilities based multichannel video programming distributor under
this section--
``(1) a local commercial television station's local service
area of a primary transmitter shall consist of the entirety of
that station's designated market area; and
``(2) a local noncommercial educational television
station's local service area of a primary transmitter shall
consist of the entirety of that station's designated market
area.
``SEC. 680. EXCLUSION FROM FRANCHISE REQUIREMENTS.
``A non-facilities based multichannel video programming distributor
shall not be subject to local franchising requirements under section
621 of this Act or otherwise be regulated by any franchising authority.
``SEC. 681. PRIVACY PROTECTIONS.
``(a) In General.--A non-facilities based multichannel video
programming distributor shall comply with the privacy protections
applicable to satellite services as set forth in section 338(i) of this
Act and the Commission's regulations under that section.
``(b) Penalties.--Any non-facilities based multichannel video
programming distributor that fails to comply with the provisions under
section 338(i) of this Act, and the Commission's regulations under that
section, shall be subject to the penalties set forth in section
338(i)(7) of this Act.
``SEC. 682. CONSUMER EQUIPMENT.
``Not later than 1 year after the date of enactment of the Consumer
Choice in Online Video Act, the Commission shall commence a proceeding
to consider whether to adopt rules--
``(1) to establish standards to ensure that services and
platforms provided by a non-facilities based multichannel video
programming distributor can interconnect and interface with--
``(A) any Internet-capable television and
television receiver; and
``(B) any other Internet-capable consumer
electronics equipment that facilitates the viewing of
video programming on a television receiver; and
``(2) to promote the commercial availability of other
devices that will permit a consumer to access non-facilities
based multichannel video programming distribution services and
platforms over equipment of the consumer's choice.
``SEC. 683. EFFECTIVE COMPETITION STANDARD.
``The number of households subscribing to a non-facilities based
multichannel video programming distributor in a franchise area under
this part shall not be considered for purposes of a determination by
the Commission of whether a cable system is subject to effective
competition in that franchise area under section 623 of this Act.
``SEC. 684. REMEDIES AND ADJUDICATIONS.
``(a) Adjudicatory Proceedings.--Any entity aggrieved by conduct
that it alleges constitutes a violation of this part, or the
regulations of the Commission under this part, may commence an
adjudicatory proceeding at the Commission.
``(b) Remedies.--
``(1) Remedies authorized.--
``(A) Interim remedies.--The Commission may
authorize interim remedies during the pendency of a
complaint.
``(B) Appropriate remedies.--Upon completion of an
adjudicatory proceeding under this section, the
Commission shall have the power to order appropriate
remedies, including, if necessary, the power to
establish prices, terms, and conditions of sale of
programming to, or prices, terms, and conditions of the
transport of the content of, the aggrieved entity.
``(2) Additional remedies.--The remedies provided in
paragraph (1) are in addition to and not in lieu of the
remedies available under title V or any other provision of this
Act.
``(c) Procedures.--In promulgating regulations to implement this
part, the Commission shall--
``(1) provide for an expedited review of any complaint made
under this part, including a procedural timeline to conclude
the review of each complaint not later than 180 days after the
date the complaint is filed;
``(2) establish procedures for the Commission to collect
any data, including the right to obtain copies of all contracts
and documents reflecting any practice, understanding,
arrangement, or agreement alleged to violate this part, as the
Commission requires to carry out this part; and
``(3) provide for penalties to be assessed against any
person filing a frivolous complaint under this part.''.
TITLE IV--MISCELLANEOUS
SEC. 401. TECHNICAL AND CONFORMING AMENDMENTS.
Section 602(20) of title VI of the Communications Act of 1934 (47
U.S.C. 522(20)) is amended by inserting ``unless expressly provided
otherwise,'' before ``the term `video programming' means''.
SEC. 402. PROVISIONS AS COMPLEMENTARY.
The provisions of this Act are in addition to, and shall not affect
the operation of, other Federal, State, or local laws or regulations
regulating billing for Internet service, online video distribution, or
non-facilities based multichannel video programming distributors,
except if the provisions of any other law are inconsistent with the
provisions of this Act, the provisions of this Act shall be
controlling.
SEC. 403. APPLICABILITY OF ANTITRUST LAWS.
Nothing in this Act or the amendments made by this Act shall be
construed to alter or restrict in any manner the applicability of any
Federal or State antitrust law.
SEC. 404. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any person or
circumstance is held invalid, the remainder of this Act, the amendments
made by this Act, and the application of such provision or amendment to
any person or circumstance shall not be affected thereby.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S7953-7954)
Read twice and referred to the Committee on Commerce, Science, and Transportation. (text of measure as introduced: CR S7954-7961)
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