"(1) EXTENSION OF PROTECTIONS.-Within 45 days after the date of enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall commence a single rulemaking proceeding to establish regulations that

"(A) apply network nonduplication protection (47 C.F.R. 76.92) syndicated exclusivity protection (47 C.F.R. 76.151), and sports blackout protection (47 C.F.R. 76.67) to the retransmission of the signals of nationally distributed superstations by satellite carriers to subscribers; and

“(B) to the extent technically feasible and not economically prohibitive, apply sports blackout protection (47 C.F.R. 76.67) to the retransmission of the signals of network stations by satellite carriers to subscribers.

“(2) DEADLINE FOR ACTION.-The Commission shall complete all actions necessary to prescribe regulations required by this section so that the regulations shall become effective within 1 year after such date of enactment.

"(c) ELIGIBILITY FOR RETRANSMISSION.—

"(1) SIGNAL STANDARD FOR SATELLITE CARRIER PURPOSES. For the purposes of identifying an unserved household under section 119(d)(10) of title 17, United States Code, within 1 year after the date of enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall conclude an inquiry to evaluate all possible standards and factors for determining eligibility for retransmissions of the signals of network stations, and, if appropriate

"(A) recommend modifications to the Grade B intensity standard for analog signals set forth in section 73.683(a) of its regulations (47 C.F.R. 73.683(a)), or recommend alternative standards or factors for purposes of determining such eligibility; and

"(B) make a further recommendation relating to an appropriate standard for digital signals.

"(2) WAIVERS.—A subscriber who is denied the retransmission of a signal of a network station under section 119 of title 17, United States Code, may request a waiver from such denial by submitting a request, through such subscriber's satellite carrier, to the network station asserting that the retransmission is prohibited. The network station shall accept or reject a subscriber's request for a waiver within 30 days after receipt of the request. The subscriber shall be permitted to receive such retransmission under section 119(d)(10)(B) of title 17, United States Code, if such station agrees to the waiver request and files with the satellite carrier a written waiver with respect to that subscriber allowing the subscriber to receive such retransmission. If a television network station fails to accept or reject a subscriber's request for a waiver within the 30day period after receipt of the request, that station shall be deemed to agree to the waiver request and have filed such written waiver.

“(3) ESTABLISHMENT OF IMPROVED PREDICTIVE MODEL REQUIRED.—Within 180 days after the date of enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall take all actions necessary, including any reconsideration, to develop and prescribe by rule a point-to-point predictive model for reliably and presumptively determining the ability of individual locations to receive signals in accordance with the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code. In prescribing such model, the Commission shall rely on the Individual Location Longley-Rice model set forth by the Federal Communications Commission in Docket 98-201 and ensure that such model takes into account terrain, building structures, and other land cover variations. The Commission shall establish procedures for the continued refinement in the application of the model by the use of additional data as it becomes available.

“(4) OBJECTIVE VERIFICATION.

“(A) IN GENERAL.—If a subscriber's request for a waiver under paragraph (2) is rejected and the subscriber submits to the subscriber's satellite carrier a request for a test verifying the subscriber's inability to receive a signal that meets the signal intensity standard in effect under

section 119(d)(10)(A) of title 17, United States Code, the satellite carrier and the network station or stations asserting that the retransmission is prohibited with respect to that subscriber shall select a qualified and independent person to conduct a test in accordance with section 73.686(d) of its regulations (47 C.F.R. 73.686(d)), or any successor regulation. Such test shall be conducted within 30 days after the date the subscriber submits a request for the test. If the written findings and conclusions of a test conducted in accordance with such section (or any successor regulation) demonstrate that the subscriber does not receive a signal that meets or exceeds the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code, the subscriber shall not be denied the retransmission of a signal of a network station under section 119 of title 17, United States Code.

“(B) DESIGNATION OF TESTER AND ALLOCATION OF COSTS.—If the satellite carrier and the network station or stations asserting that the retransmission is prohibited are unable to agree on such a person to conduct the test, the person shall be designated by an independent and neutral entity designated by the Commission by rule. Unless the satellite carrier and the network station or stations otherwise agree, the costs of conducting the test under this paragraph shall be borne by the satellite carrier, if the station's signal meets or exceeds the signal intensity standard in effect under section 119(d)(10)(A) of title 17, United States Code, or by the network station, if its signal fails to meet or exceed such standard.

"(C) AVOIDANCE OF UNDUE BURDEN.- Commission regulations prescribed under this paragraph shall seek to avoid any undue burden on any party.

"(d) DEFINITIONS.-For the purposes of this section:

"(1) LOCAL MARKET.-The term 'local market' has the meaning given that term under section 122(j) of title 17, United States Code.

"(2) NATIONALLY DISTRIBUTED SUPERSTATION.-The term 'nationally distributed superstation' means a television broadcast station, licensed by the Commission, that

"(A) is not owned or operated by or affiliated with a television network that, as of January 1, 1995, offered interconnected program service on a regular basis for 15 or more hours per week to at least 25 affiliated television licensees in 10 or more States;

"(B) on May 1, 1991, was retransmitted by a satellite carrier and was not a network station at that time; and

"(C) was, as of July 1, 1998, retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code.

"(3) NETWORK STATION.-The term 'network station' has the meaning given such term under section 119(d) of title 17, United States Code.

"(4) SATELLITE CARRIER.-The term 'satellite carrier' has the meaning given such term under section 119(d) of title 17, United States Code.

"(5) 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.”.

(b) NETWORK STATION DEFINITION.-Section 119(d)(2) of title 17, United States Code, is amended

(1) in subparagraph (B) by striking the period and inserting a semicolon; and

(2) by adding after subparagraph (B) the following:

"except that the term does not include the signal of the Alaska Rural Communications Service, or any successor entity to that service.". SEC. 1009. RETRANSMISSION CONSENT.

(a) IN GENERAL.-Section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)) is amended—

(1) by amending paragraphs (1) and (2) to read as follows:

"(b)(1) No cable system or other multichannel video programming distributor shall retransmit the signal of a broadcasting station, or any part thereof, except

"(A) with the express authority of the originating station;

"(B) under section 614, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section;

or

"(C) under section 338, in the case of a station electing, in accordance with this subsection, to assert the right to carriage under such section. "(2) This subsection shall not apply— "(A) to retransmission of the signal of a noncommercial television broadcast station;

"(B) to retransmission of the signal of a television broadcast station outside the station's local market by a satellite carrier directly to its subscribers, if

"(i) such station was a superstation on May 1, 1991;

"(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; and

"(iii) the satellite carrier complies with any network nonduplication, syndicated exclusivity, and sports blackout rules adopted by the Commission under section 339(b) of this Act;

"(C) until December 31, 2004, to retransmission of the signals of network stations directly to a home satellite antenna, if the subscriber receiving the signal—

"(i) is located in an area outside the local market of such stations; and

"(ii) resides in an unserved household;

"(D) to retransmission by a cable operator or other multichannel video provider, other than a satellite carrier, of the signal of a television broadcast station outside the station's local market if such signal was obtained from a satellite carrier and—

"(i) the originating station was a superstation on May 1, 1991; and

"(ii) as of July 1, 1998, such station was retransmitted by a satellite carrier under the statutory license of section 119 of title 17, United States Code; or

"(E) during the 6-month period beginning on the date of enactment of the Satellite Home Viewer Improvement Act of 1999, to the retransmission of the signal of a television broadcast station within the station's local market by a satellite carrier directly to its subscribers under the statutory license of section 122 of title 17, United States Code.

For purposes of this paragraph, the terms 'satellite carrier' and 'superstation' have the meanings given those terms, respectively, in section 119(d) of title 17, United States Code, as in effect on the date of enactment of the Cable Television Consumer Protection and Competition Act of 1992, the term 'unserved household' has the meaning given that term under section 119(d) of such title, and the term 'local market' has the meaning given that term in section 122(j) of such title.":

(2) by adding at the end of paragraph (3) the following new subparagraph:

"(C) Within 45 days after the date of enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall commence a rulemaking proceeding to revise the regulations governing the exercise by television broadcast stations of the right to grant retransmission consent under this subsection, and such other regulations as are necessary to administer the limitations contained in paragraph (2). The Commission shall complete all actions necessary to prescribe such regulations within 1 year after such date of enactment. Such regulations shall

"(i) establish election time periods that correspond with those regulations adopted under subparagraph (B) of this paragraph; and

"(ii) until January 1, 2006, prohibit a television broadcast station that provides retransmission consent from engaging in exclusive con

tracts for carriage or failing to negotiate in good faith, and it shall not be a failure to negotiate in good faith if the television broadcast station enters into retransmission consent agreements containing different terms and conditions, including price terms, with different multichannel video programming distributors if such different terms and conditions are based on competitive marketplace considerations.";

(3) in paragraph (4), by adding at the end the following new sentence: "If an originating television station elects under paragraph (3)(C) to exercise its right to grant retransmission consent under this subsection with respect to a satellite carrier, section 338 shall not apply to the carriage of the signal of such station by such satellite carrier.";

(4) in paragraph (5), by striking "614 or 615" and inserting "338, 614, or 615"; and

(5) by adding at the end the following new paragraph:

"(7) For purposes of this subsection, the term

"(A) 'network station' has the meaning given such term under section 119(d) of title 17, United States Code; and

"(B) 'television broadcast station' means an over-the-air commercial or noncommercial television broadcast station licensed by the Commission under subpart E of part 73 of title 47, Code of Federal Regulations, except that such term does not include a low-power or translator television station.".

(b) ENFORCEMENT PROVISIONS FOR CONSENT FOR RETRANSMISSIONS.-Section 325 of the Communications Act of 1934 (47 U.S.C. 325) is amended by adding at the end the following new subsection: AGAINST

PROCEEDINGS

"(e) ENFORCEMENT SATELLITE CARRIERS CONCERNING RETRANSMISSIONS OF TELEVISION BROADCAST STATIONS IN THE RESPECTIVE LOCAL MARKETS OF SUCH CARRIERS.

"(1) COMPLAINTS BY TELEVISION BROADCAST STATIONS.—If after the expiration of the 6month period described under subsection (b)(2)(E) a television broadcast station believes that a satellite carrier has retransmitted its signal to any person in the local market of such station in violation of subsection (b)(1), the station may file with the Commission a complaint providing

"(A) the name, address, and call letters of the station;

"(B) the name and address of the satellite carrier;

"(C) the dates on which the alleged retransmission occurred;

"(D) the street address of at least 1 person in the local market of the station to whom the alleged retransmission was made;

"(E) a statement that the retransmission was not expressly authorized by the television broadcast station; and

"(F) the name and address of counsel for the station.

"(2) SERVICE OF COMPLAINTS ON SATELLITE CARRIERS. For purposes of any proceeding under this subsection, any satellite carrier that retransmits the signal of any broadcast station shall be deemed to designate the Secretary of the Commission as its agent for service of process. A television broadcast station may serve a satellite carrier with a complaint concerning an alleged violation of subsection (b)(1) through retransmission of a station within the local market of such station by filing the original and 2 copies of the complaint with the Secretary of the Commission and serving a copy of the complaint on the satellite carrier by means of 2 commonly used overnight delivery services, each addressed to the chief executive officer of the satellite carrier at its principal place of business, and each marked 'URGENT LITIGATION MATTER' on the outer packaging. Service shall be deemed complete 1 business day after a copy of the complaint is provided to the delivery services for overnight delivery. On receipt of a complaint filed by a television broadcast station under this

subsection, the Secretary of the Commission shall send the original complaint by United States mail, postage prepaid, receipt requested, addressed to the chief executive officer of the satellite carrier at its principal place of busi

ness.

"(3) ANSWERS BY SATELLITE CARRIERS.-Within 5 business days after the date of service, the satellite carrier shall file an answer with the Commission and shall serve the answer by a commonly used overnight delivery service and by United States mail, on the counsel designated in the complaint at the address listed for such counsel in the complaint.

"(4) DEFENSES.—

"(A) EXCLUSIVE DEFENSES.-The defenses under this paragraph are the exclusive defenses available to a satellite carrier against which a complaint under this subsection is filed.

"(B) DEFENSES.-The defenses referred to under subparagraph (A) are the defenses that

"(i) the satellite carrier did not retransmit the television broadcast station to any person in the local market of the station during the time period specified in the complaint;

"(ii) the television broadcast station had, in a writing signed by an officer of the television broadcast station, expressly authorized the retransmission of the station by the satellite carrier to each person in the local market of the television broadcast station to which the satellite carrier made such retransmissions for the entire time period during which it is alleged that a violation of subsection (b)(1) has occurred;

"(iii) the retransmission was made after January 1, 2002, and the television broadcast station had elected to assert the right to carriage under section 338 as against the satellite carrier for the relevant period; or

"(iv) the station being retransmitted is a noncommercial television broadcast station.

"(5) COUNTING OF VIOLATIONS.-The retransmission without consent of a particular television broadcast station on a particular day to 1 or more persons in the local market of the station shall be considered a separate violation of subsection (b)(1).

"(6) BURDEN OF PROOF.-With respect to each alleged violation, the burden of proof shall be on a television broadcast station to establish that the satellite carrier retransmitted the station to at least 1 person in the local market of the station on the day in question. The burden of proof shall be on the satellite carrier with respect to all defenses other than the defense under paragraph (4)(B)(i).

“(7) PROCEDURES.—

"(A) REGULATIONS.-Within 60 days after the date of enactment of the Satellite Home Viewer Improvement Act of 1999, the Commission shall issue procedural regulations implementing this subsection which shall supersede procedures under section 312.

"(B) DETERMINATIONS.

“(i) IN GENERAL.-Within 45 days after the filing of a complaint, the Commission shall issue a final determination in any proceeding brought under this subsection. The Commission's final determination shall specify the number of violations committed by the satellite carrier. The Commission shall hear witnesses only if it clearly appears, based on written filings by the parties, that there is a genuine dispute about material facts. Except as provided in the preceding sentence, the Commission may issue a final ruling based on written filings by the parties.

"(ii) DISCOVERY.-The Commission may direct the parties to exchange pertinent documents, and if necessary to take prehearing depositions, on such schedule as the Commission may approve, but only if the Commission first determines that such discovery is necessary to resolve a genuine dispute about material facts, consistent with the obligation to make a final determination within 45 days.

"(8) RELIEF.-If the Commission determines that a satellite carrier has retransmitted the television broadcast station to at least 1 person in the local market of such station and has failed

to meet its burden of proving 1 of the defenses under paragraph (4) with respect to such retransmission, the Commission shall be required

to

"(A) make a finding that the satellite carrier violated subsection (b)(1) with respect to that station; and

"(B) issue an order, within 45 days after the filing of the complaint, containing

"(i) a cease-and-desist order directing the satellite carrier immediately to stop making any further retransmissions of the television broadcast station to any person within the local market of such station until such time as the Commission determines that the satellite carrier is in compliance with subsection (b)(1) with respect to such station;

"(ii) if the satellite carrier is found to have violated subsection (b)(1) with respect to more than 2 television broadcast stations, a ceaseand-desist order directing the satellite carrier to stop making any further retransmission of any television broadcast station to any person within the local market of such station, until such time as the Commission, after giving notice to the station, that the satellite carrier is in compliance with subsection (b)(1) with respect to such stations; and

"(iii) an award to the complainant of that complainant's costs and reasonable attorney's

fees.

“(9) COURT PROCEEDINGS ON ENFORCEMENT OF COMMISSION ORDER.

“(A) IN GENERAL.-On entry by the Commission of a final order granting relief under this subsection

"(i) a television broadcast station may apply within 30 days after such entry to the United States District Court for the Eastern District of Virginia for a final judgment enforcing all relief granted by the Commission; and

"(ii) the satellite carrier may apply within 30 days after such entry to the United States District Court for the Eastern District of Virginia for a judgment reversing the Commission's order.

"(B) APPEAL.-The procedure for an appeal under this paragraph by the satellite carrier shall supersede any other appeal rights under Federal or State law. A United States district court shall be deemed to have personal jurisdiction over the satellite carrier if the carrier, or a company under common control with the satellite carrier, has delivered television programming by satellite to more than 30 customers in that district during the preceding 4-year period. If the United States District Court for the Eastern District of Virginia does not have personal jurisdiction over the satellite carrier, an enforcement action or appeal shall be brought in the United States District Court for the District of Columbia, which may find personal jurisdiction based on the satellite carrier's ownership of licenses issued by the Commission. An application by a television broadcast station for an order enforcing any cease-and-desist relief granted by the Commission shall be resolved on a highly expedited schedule. No discovery may be conducted by the parties in any such proceeding. The district court shall enforce the Commission order unless the Commission record reflects manifest error and an abuse of discretion by the Commission.

"(10) CIVIL ACTION FOR STATUTORY DAMAGES.-Within 6 months after issuance of an order by the Commission under this subsection, a television broadcast station may file a civil action in any United States district court that has personal jurisdiction over the satellite carrier for an award of statutory damages for any violation that the Commission has determined to have been committed by a satellite carrier under this subsection. Such action shall not be subject to transfer under section 1404(a) of title 28, United States Code. On finding that the satellite carrier has committed 1 or more violations of subsection (b), the District Court shall be required to award the television broadcast station statutory damages of $25,000 per violation, in

accordance with paragraph (5), and the costs and attorney's fees incurred by the station. Such statutory damages shall be awarded only if the television broadcast station has filed a binding stipulation with the court that such station will donate the full amount in excess of $1,000 of any statutory damage award to the United States Treasury for public purposes. Notwithstanding any other provision of law, a station shall incur no tax liability of any kind with respect to any amounts so donated. Discovery may be conducted by the parties in any proceeding under this paragraph only if and to the extent necessary to resolve a genuinely disputed issue of fact concerning 1 of the defenses under paragraph (4). In any such action, the defenses under paragraph (4) shall be exclusive, and the burden of proof shall be on the satellite carrier with respect to all defenses other than the defense under paragraph (4)(B)(i). A judgment under this paragraph may be enforced in any manner permissible under Federal or State law. “(11) APPEALS.

"(A) IN GENERAL.-The nonprevailing party before a United States district court may appeal a decision under this subsection to the United States Court of Appeals with jurisdiction over that district court. The Court of Appeals shall not issue any stay of the effectiveness of any decision granting relief against a satellite carrier unless the carrier presents clear and convincing evidence that it is highly likely to prevail on appeal and only after posting a bond for the full amount of any monetary award assessed against it and for such further amount as the Court of Appeals may believe appropriate.

"(B) APPEAL.-If the Commission denies relief in response to a complaint filed by a television broadcast station under this subsection, the television broadcast station filing the complaint may file an appeal with the United States Court of Appeals for the District of Columbia Circuit. "(12) SUNSET.-No complaint or civil action may be filed under this subsection after December 31, 2001. This subsection shall continue to apply to any complaint or civil action filed on or before such date.”.

SEC. 1010. SEVERABILITY.

If any provision of section 325(b) of the Communications Act of 1934 (47 U.S.C. 325(b)), or the application of that provision to any person or circumstance, is held by a court of competent jurisdiction to violate any provision of the Constitution of the United States, then the other provisions of that section, and the application of that provision to other persons and circumstances, shall not be affected.

SEC. 1011. TECHNICAL AMENDMENTS.

(a) TECHNICAL AMENDMENTS RELATING TO CABLE SYSTEMS.-Title 17, United States Code is amended as follows:

(1) Such title is amended

(A) by striking "cable system" and "cable systems" each place it appears (other than chapter 12) and inserting "terrestrial system" and "terrestrial systems", respectively;

(B) by striking "cable service" each place it appears and inserting "terrestrial service"; and (C) by striking "programing' each place it appears and inserting "programming”.

(2) Section 111(d)(1)(C) is amended by striking "cable system's" and inserting "terrestrial system's".

(3) Section 111 is amended in the subsection headings for subsections (c), (d), and (e), by striking "CABLE” and inserting "TERRESTRIAL”. (4) Chapter 5 is amended

(A) in the table of contents by amending the item relating to section 510 to read as follows: "Sec. 510. Remedies for alteration of programming by terrestrial systems.";

and

(B) by amending the section heading for section 510 to read as follows:

"S510. Remedies for alteration of programming by terrestrial systems".

(5) Section 801(b)(2)(A) is amended

(A) by striking "cable subscribers" and inserting "terrestrial service subscribers"; and (B) by striking "cable industry” and inserting "terrestrial service industry".

(6) Section 111 is amended by striking "compulsory" each place it appears and inserting "statutory".

(7) Section 510(b) is amended by striking "compulsory" and inserting "statutory". (b) TECHNICAL AMENDMENTS RELATING TO PERFORMANCE OR DISPLAYS OF WORKS.— (1) Section 111 of title 17, United States Code, is amended

(A) in subsection (a), in the matter preceding paragraph (1), by striking "primary transmission embodying a performance or display of a work" and inserting "performance or display of a work embodied in a primary transmission"; (B) in subsection (b), in the matter preceding paragraph (1), by striking "primary transmission embodying a performance or display of a work" and inserting "performance or display of a work embodied in a primary transmission"; and

(C) in subsection (c)— (i) in paragraph (1)—

(I) by inserting "a performance or display of a work embodied in" after "by a terrestrial system of"; and

(II) by striking "and embodying a performance or display of a work"; and

(ii) in paragraphs (3) and (4)—

(I) by striking "a primary transmission" and inserting "a performance or display of a work embodied in a primary transmission”; and

(II) by striking "and embodying a performance or display of a work".

(2) Section 119(a) of title 17, United States Code, is amended

(A) in paragraph (1), by striking "primary transmission made by a superstation and embodying a performance or display of a work" and inserting "performance or display of a work embodied in a primary transmission made by a superstation";

(B) in paragraph (2)(A), by striking "programming" and all that follows through "a work" and inserting "a performance or display of a work embodied in a primary transmission made by a network station";

(C) in paragraph (4)—

(i) by inserting "a performance or display of a work embodied in" after "by a satellite carrier of"; and

(ii) by striking "and embodying a performance or display of a work"; and

(D) in paragraph (6)—

(i) by inserting "performance or display of a work embodied in" after "by a satellite carrier of"; and

(ii) by striking "and embodying a performance or display of a work".

(3) Section 501(e) of title 17, United States Code, is amended by striking "primary transmission embodying the performance or display of a work" and inserting "performance or display of a work embodied in a primary transmission".

(c) TECHNICAL AMENDMENT RELATING TO TERRESTRIAL SYSTEMS.-Section 111(f) of title 17, United States Code, is amended in the first sentence of the definition of 'terrestrial system', by inserting ", other than a digital online communication service," after "other communications channels".

(d) CONFORMING AMENDMENT.-Section 119(a)(2)(C) of title 17, United States Code, is amended in the first sentence by striking “currently".

(e) WORK MADE FOR HIRE.-Section 101 of title 17, United States Code, is amended in the definition relating to work for hire in paragraph (2) by inserting "as a sound recording," after "audiovisual work".

SEC. 1012. EFFECTIVE DATES.

Sections 1001, 1003, 1005, 1007, 1008, 1009, 1010, and 1011 (and the amendments made by such sections) shall take effect on the date of enact

ment of this Act. The amendments made by sections 1002, 1004, and 1006 shall be effective as of July 1, 1999.

TITLE II-RURAL LOCAL TELEVISION
SIGNALS

SEC. 2001. SHORT TITLE.

This title may be cited as the "Rural Local Broadcast Signal Act".

SEC. 2002. LOAN GUARANTEES.

(a) PURPOSE.-The purpose of this title is to ensure improved access to the signals of local television stations by multichannel video providers to all households which desire such service in unserved and underserved rural areas by December 31, 2006.

(b) ASSISTANCE TO BORROWERS.-Subject to the appropriations limitation under subsection (c)(2), the Secretary, after consultation with the Secretary of the Treasury and the Federal Communications Commission, may provide loan guarantees to borrowers to finance projects to provide local television broadcast signals by providers of multichannel video services including direct broadcast satellite licensees and licensees of multichannel multipoint distribution systems, to areas that do not receive local television broadcast signals over commercial for-profit direct-to-home satellite distribution systems. A borrower that receives a loan guarantee under this title may not transfer any part of the proceeds of the monies from the loans guaranteed under this program to an affiliate of the borPRE

rower.

UNDERWRITING

(c) REQUISITES.

CRITERIA;

(1) IN GENERAL.-The Secretary shall administer the underwriting criteria developed under subsection (f)(1) to determine which loans are eligible for a guarantee under this title.

(2) AUTHORITY TO MAKE LOAN GUARANTEES.— The Secretary shall be authorized to guarantee loans under this title only to the extent provided for in advance by appropriations Acts.

(3) PREREQUISITES.—In addition to meeting the underwriting criteria under paragraph (1), a loan is not eligible for a loan guarantee under this title unless

(A) the loan is made to finance the acquisition, improvement, enhancement, construction, deployment, launch, or rehabilitation of the means by which local television broadcast signals will be delivered to an area not receiving such signals over commercial for-profit direct-tohome satellite distribution systems;

(B) the proceeds of the loan will not be used for operating expenses;

(C) the total amount of all such loans may not exceed in the aggregate $1,250,000,000;

(D) the loan does not exceed $100,000,000, except that 1 loan under this title may exceed $100,000,000, but shall not exceed $625,000,000;

(E) the loan bears interest and penalties which, in the Secretary's judgment, are not unreasonable, taking into consideration the prevailing interest rates and customary fees incurred under similar obligations in the private capital market; and

(F) the Secretary determines that taking into account the practices of the private capital markets with respect to the financing of similar projects, the security of the loan is adequate.

(4) ADDITIONAL CRITERIA.-In addition to the requirements of paragraphs (1), (2), and (3), a loan for which a guarantee sought under this title shall meet any additional criteria promulgated under subsection (f)(1).

(d) ADDITIONAL REQUIREMENTS.-The Secretary may not make a loan guarantee under this title unless

(1) repayment of the obligation is required to be made within a term of the lesser of—

(A) 25 years from the date of its execution; or (B) the useful life of the primary assets used in the delivery of relevant signals;

(2) the Secretary has been given the assurances and documentation necessary to review and approve the guaranteed loans;

(3) the Secretary makes a determination in writing that—

(A) the applicant has given reasonable assurances that the assets, facilities, or equipment will be utilized economically and efficiently;

(B) necessary and sufficient regulatory approvals, spectrum rights, and delivery permissions have been received by project participants to assure the project's ability to repay obligations under this title; and

(C) repayment of the obligation can reasonably be expected, including the use of an appropriate combination of credit risk premiums and collateral offered by the applicant to protect the Federal Government.

(e) APPROVAL OF NTIA REQUIRED.

(1) IN GENERAL.-The Secretary may not issue a loan guarantee under this title unless the National Telecommunications and Information Administration consults with the Secretary and certifies that

(A) the issuance of the loan guarantee is consistent with subsection (a) of this section; and

(B) consistent with subsection (b) of this section, the project to be financed by a loan guaranteed under this section is not likely to have a substantial adverse impact on competition between multichannel video programming distributors that outweighs the benefits of improving access to the signals of a local television station by a multichannel video provider.

(2) CERTIFICATION.-The Secretary shall provide the appropriate information on each loan guarantee application recommended by the Secretary to the National Telecommunications and Information Administration for certification. The National Telecommunications and Information Administration shall make the determination required under this subsection within 90 days, without regard to the provision of chapter 5 of title 5, United States Code, and sections 10 and 11 of the Federal Advisory Committee Act (5 U.S.C. App.).

(f) REQUIREMENTS.—

(1) IN GENERAL.-Within 180 days after the date of enactment of this Act, the Secretary shall consult with the Office of Management and Budget and an independent public accounting firm to develop underwriting criteria relating to the issuance of loan guarantees, appropriate collateral and cash flow levels for the types of loan guarantees that might be issued under this title, and such other matters as the Secretary determines appropriate.

(2) AUTHORITY OF SECRETARY.-In lieu of or in combination with appropriations of budget authority to cover the costs of loan guarantees as required under section 504(b)(1) of the Federal Credit Reform Act of 1990, the Secretary may accept on behalf of an applicant for assistance under this title a commitment from a non-Federal source to fund in whole or in part the credit risk premiums with respect to the applicant's loan. The aggregate of appropriations of budget authority and credit risk premiums described in this paragraph with respect to a loan guarantee may not be less than the cost of that loan guarantee.

(3) CREDIT RISK PREMIUM AMOUNT.-The Secretary shall determine the amount required for credit risk premiums under this subsection on the basis of

(A) the circumstances of the applicant, including the amount of collateral offered;

(B) the proposed schedule of loan disbursements;

(C) the borrower's business plans for providing service;

(D) financial commitment from the broadcast signal provider;

(E) approval of the Office of Management and Budget; and

(F) any other factors the Secretary considers relevant.

(4) PAYMENT OF PREMIUMS.-Credit risk premiums under this subsection shall be paid to an account established in the Treasury which shall accrue interest and such interest shall be retained by the account, subject to paragraph (5). (5) COHORTS OF LOANS.-In order to maintain sufficient balances of credit risk premiums to

adequately protect the Federal Government from risk of default, while minimizing the length of time the Government retains possession of those balances, the Secretary in consultation with the Office of Management and Budget shall establish cohorts of loans. When all obligations attached to a cohort of loans have been satisfied, credit risk premiums paid for the cohort, and interest accrued thereon, which were not used to mitigate losses shall be returned to the original source on a pro rata basis.

(g) CONDITIONS OF ASSISTANCE.-A borrower shall agree to such terms and conditions as are sufficient, in the judgment of the Secretary to ensure that, as long as any principal or interest is due and payable on such obligation, the borrower

(1) will maintain assets, equipment, facilities, and operations on a continuing basis;

(2) will not make any discretionary dividend payments that reduce the ability to repay obligations incurred under this section; and

(3) will remain sufficiently capitalized. (h) LIEN ON INTERESTS IN ASSETS.-Upon providing a loan guarantee to a borrower under this title, the Secretary shall have liens which shall be superior to all other liens on assets of the borrower equal to the unpaid balance of the loan subject to such guarantee.

(i) PERFECTED INTEREST.-The Secretary and the lender shall have a perfected security interest in those assets of the borrower fully sufficient to protect the Secretary and the lender.

(j) INSURANCE POLICIES.-In accordance with practices of private lenders, as determined by the Secretary, the borrower shall obtain, at its expense, insurance sufficient to protect the interests of the Federal Government, as determined by the Secretary.

(k) SPECIAL PROVISION FOR SATELLITE CARRIERS. No satellite carrier that provided television broadcast signals to subscribers on October 1, 1999, and no company that is an affiliate of any such carrier, shall be eligible for a loan guarantee under this section if either the carrier or its affiliate holds a license for unused spectrum that would be suitable for delivering local television signals into unserved and underserved markets.

(1) AUTHORIZATION OF APPROPRIATIONS.-For the additional costs of the loans guaranteed under this title, including the cost of modifying the loans as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661(a)), there are authorized to be appropriated for fiscal years 2000 through 2006, such amounts as may be necessary. In addition there are authorized to be appropriated such sums as may be necessary to administer this title. Any amounts appropriated under this subsection shall remain available until expended.

SEC. 2003. ADMINISTRATION OF LOAN GUARAN

TEES.

(a) APPLICATIONS.-The Secretary shall prescribe the form and contents for an application for a loan guarantee under section 2002.

(b) ASSIGNMENT OF LOAN GUARANTEES.—The holder of a loan guaranteed under this title may assign the loan guarantee in whole or in part, subject to such requirements as the Secretary may prescribe.

(c) MODIFICATIONS.-The Secretary may approve the modification of any term or condition of a loan guarantee including the rate of interest, time of payment of interest or principal, or security requirements, if the Secretary finds in writing that—

(1) the modification is equitable and is in the overall best interests of the United States; (2) consent has been obtained from the borrower and the lender;

(3) the modification is consistent with the objective underwriting criteria developed in consultation with the Office of Management and Budget and an independent public accounting firm under section 2002(f);

(4) the modification does not adversely affect the Federal Government's interest in the entity's assets or loan collateral;

(5) the modification does not adversely affect the entity's ability to repay the loan; and

(6) the National Telecommunications and Information Administration does not object to the modification on the ground that it is inconsistent with the certification under section 2002(e).

(d) PRIORITY MARKETS.—

(1) IN GENERAL.-To the maximum extent practicable, the Secretary shall give priority to projects which serve the most underserved rural markets, as determined by the Secretary. In making prioritization determinations, the Secretary shall consider prevailing market conditions, feasibility of providing service, population, terrain, and other factors the Secretary determines appropriate.

(2) PRIORITY RELATING TO CONSUMER COSTS AND SEPARATE TIER OF SIGNALS.-The Secretary shall give priority to projects that

(A) offer a separate tier of local broadcast signals; and

(B) provide lower projected costs to consumers of such separate tier.

(3) PERFORMANCE SCHEDULES.-Applicants for priority projects under this section shall enter into stipulated performance schedules with the Secretary.

(4) PENALTY.-The Secretary may assess a borrower a penalty not to exceed 3 times the interest due on the guaranteed loan, if the borrower fails to meet its stipulated performance schedule. The penalty shall be paid to the account established by the Treasury under section 2002.

(5) LIMITATION ON CONSIDERATION OF MOST POPULATED AREAS.-The Secretary shall not provide a loan guarantee for a project that is primarily designed to serve the 40 most populated designated market areas and shall take into consideration the importance of serving rural markets that are not likely to be otherwise offered service under section 122 of title 17, United States Code, except through the loan guarantee program under this title.

(e) COMPLIANCE.-The Secretary shall enforce compliance by an applicant and any other party to the loan guarantee for whose benefit assistance is intended, with the provisions of this title, regulations issued hereunder, and the terms and conditions of the loan guarantee, including through regular periodic inspections and audits.

(f) COMMERCIAL VALIDITY.-For purposes of claims by any party other than the Secretary, a loan guarantee or loan guarantee commitment shall be conclusive evidence that the underlying obligation is in compliance with the provisions of the title, and that such obligation has been approved and is legal as to principal, interest, and other terms. Such a guarantee or commitment shall be valid and incontestable in the hands of a holder thereof, including the original lender or any other holder, as of the date when the Secretary granted the application therefor, except as to fraud or material misrepresentation by such holder.

(g) DEFAULTS.-The Secretary shall prescribe regulations governing a default on a loan guaranteed under this title.

(h) RIGHTS OF THE SECRETARY.—

(1) SUBROGATION.-If the Secretary authorizes payment to a holder, or a holder's agent, under subsection (g) in connection with a loan guarantee made under section 2002, the Secretary shall be subrogated to all of the rights of the holder with respect to the obligor under the loan.

(2) DISPOSITION OF PROPERTY.-The Secretary may complete, recondition, reconstruct, renovate, repair, maintain, operate, rent, sell, or otherwise dispose of any property or other interests obtained under this section in a manner that maximizes taxpayer return and is consistent with the public convenience and necessity.

(3) WARRANTS.-To ensure that the United States Government is compensated for the risk in making guarantees under this title, the Sec

retary shall enter into contracts under which the Government, contingent on the financial success of the borrower, would participate in a percentage of the gains of any for profit borrower or its security holders in connection with the project funded by loans so guaranteed.

(i) ACTION AGAINST OBLIGOR.-The Secretary may bring a civil action in an appropriate district court of the United States in the name of the United States or of the holder of the obligation in the event of a default on a loan guaranteed under this title. The holder of a guarantee shall make available to the Secretary all records and evidence necessary to prosecute the civil action. The Secretary may accept property in full or partial satisfaction of any sums owed as a result of default. If the Secretary receives, through the sale or other disposition of such property, an amount greater than the aggregate of—

(1) the amount paid to the holder of a guarantee under subsection (g) of this section; and

(2) any other cost to the United States of remedying the default, the Secretary shall pay such excess to the obligor.

(j) BREACH OF CONDITIONS.-The Attorney General shall commence a civil action in a court of appropriate jurisdiction to enjoin any activity which the Secretary finds is in violation of this title, regulations issued hereunder, or any conditions which were duly agreed to, and to secure any other appropriate relief, including relief against any affiliate of the borrower.

(k) ATTACHMENT.-No attachment or execution may be issued against the Secretary or any property in the control of the Secretary prior to the entry of final judgment to such effect in any State, Federal, or other court.

(1) INVESTIGATION CHARGE AND FEES.

(1) APPRAISAL FEE.-The Secretary may charge and collect from an applicant a reasonable fee for appraisal for the value of the equipment or facilities for which the loan guarantee is sought, and for making necessary determinations and findings. The fee may not, in the aggregate, be more than one-half of one percent of the principal amount of the obligation. The fee imposed under this paragraph shall be used to offset the administrative costs of the program.

(2) LOAN ORIGINATION FEE.-The Secretary may charge a loan origination fee.

(m) ANNUAL AUDIT.-The General Accounting Office shall annually audit the administration of this title and report the results to the Agriculture, Appropriations, and Judiciary Committees of the Senate and the House of Representatives, the House of Representatives Committee on Commerce, the Senate Committee on Commerce, Science, and Transportation, the Senate Committee on Banking, Housing, and Urban Affairs, and the House of Representatives Committee on Banking and Financial Services.

(n) INDEMNIFICATION.-An affiliate of the borrower shall indemnify the Government for any losses it incurs as a result of—

(1) a judgment against the borrower; (2) any breach by the borrower of its obligations under the loan guarantee agreement;

(3) any violation of the provisions of this title by the borrower;

(4) any penalties incurred by the borrower for any reason, including the violation of the stipulated performance; and

(5) any other circumstances that the Secretary determines to be appropriate.

(0) SUNSET.-The Secretary may not approve a loan guarantee under this title after December 31, 2006.

SEC. 2004. RETRANSMISSION OF LOCAL TELEVISION BROADCAST STATIONS.

A borrower shall be subject to applicable rights, obligations, and limitations of title 17, United States Code. If a local broadcast station requests carriage of its signal and is located in a market not served by a satellite carrier providing service under a statutory license under section 122 of title 17, United States Code, the borrower shall carry the signal of that station

(1) FORM OF BUSINESS.-To the extent not inconsistent with the Communications Act of 1934 and the Commission's rules, the Commission shall permit applicants under subsection (a) to engage in partnerships, joint ventures, and similar operating arrangements for the purpose of carrying out subsection (a).

(2) HARMFUL INTERFERENCE.-The Commission shall ensure that no facility licensed or authorized under subsection (a) causes harmful interference to the primary users of that spectrum or to public safety spectrum use.

(3) LIMITATION ON COMMISSION.-Except as provided in paragraphs (1) and (2), the Commission may not restrict any entity granted a license or other authorization under subsection (a) from using any reasonable compression, reformatting, or other technology.

(c) REPORT.-Not later than January 1, 2001, the Commission shall report to the Agriculture, Appropriations, and Judiciary Committees of the Senate and the House of Representatives, the Senate Committee on Commerce, Science, and Transportation, and the House of Representatives Committee on Commerce, on the extent to which licenses and other authorizations under subsection (a) have facilitated the delivery of local signals to satellite television subscribers in unserved and underserved local television markets. The report shall include—

(1) an analysis of the extent to which local signals are being provided by direct-to-home satellite television providers and by other multichannel video program distributors;

(2) an enumeration of the technical, economic, and other impediments each type of multichannel video programming distributor has encountered; and

(3) recommendations for specific measures to facilitate the provision of local signals to subscribers in unserved and underserved markets by direct-to-home satellite television providers and by other distributors of multichannel video programming service.

SEC. 2006. DEFINITIONS. In this title:

(1) AFFILIATE.-The term "affiliate" means any person or entity that controls, or is controlled by, or is under common control with, another person or entity.

(2) BORROWER.-The term "borrower" means any person or entity receiving a loan guarantee under this program.

(3) COMMISSION.-The term "Commission" means the Federal Communications Commission. (4) COST.

(A) IN GENERAL.-The term "cost" means the estimated long-term cost to the Government of a loan guarantee or modification thereof, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays.

(B) LOAN GUARANTEES.-For purposes of this paragraph the cost of a loan guarantee

(i) shall be the net present value, at the time when the guaranteed loan is disbursed, of the estimated cash flows of—

(I) payments by the Government to cover defaults and delinquencies, interest subsidies, or other payments;

(II) payments to the Government, including origination and other fees, penalties, and recoveries; and

(ii) shall include the effects of changes in loan terms resulting from the exercise by the guaranteed lender of an option included in the loan guarantee contract, or by the borrower of an option included in the guaranteed loan contract. (C) COST OF MODIFICATION.-The cost of the modification shall be the difference between the current estimate of the net present value of the remaining cash flows under the terms of a loan guarantee contract, and the current estimate of the net present value of the remaining cash flows under the terms of the contract, as modified. (D) DISCOUNT RATE.-In estimating net present value, the discount rate shall be the average interest rate on marketable Treasury securities of similar maturity to the cash flows of the guarantee for which the estimate is being made.

(E) FISCAL YEAR ASSUMPTIONS.-When funds of a loan guarantee under this title are obligated, the estimated cost shall be based on the current assumptions, adjusted to incorporate the terms of the loan contract, for the fiscal year in which the funds are obligated.

(5) CURRENT.-The term "current" has the same meaning as in section 250(c)(9) of the Balanced Budget and Emergency Deficit Control Act of 1985.

(6) DESIGNATED MARKET AREA. The term "designated market area" has the meaning given that term under section 122(j) of title 17, United States Code.

(7) LOAN GUARANTEE.-The term "loan guarantee" means any guarantee, insurance, or other pledge with respect to the payment of all or part of the principal or interest on any debt obligation of a non-Federal borrower to the Federal Financing Bank or a non-Federal lender, but does not include the insurance of deposits, shares, or other withdrawable accounts in financial institutions.

(8) MODIFICATION.-The term "modification" means any Government action that alters the estimated cost of an outstanding loan guarantee (or loan guarantee commitment) from the current estimate of cash flows, including the sale of loan assets, with or without recourse, and the purchase of guaranteed loans.

(9) SECRETARY.-The term "Secretary" means the Secretary of Agriculture.

(10) COMMON TERMS.-Except as provided in paragraphs (1) through (9), any term used in this title that is defined in the Communications Act of 1934 (47 U.S.C. 151 et seq.) has the meaning given it in that Act.

TITLE III-TRADEMARK CYBERPIRACY

PREVENTION

SEC. 3001. SHORT TITLE; REFERENCES. (a) SHORT TITLE.—This title may be cited as the "Anticybersquatting Consumer Protection Act".

(b) REFERENCES TO THE TRADEMARK ACT OF 1946.—Any reference in this title to the Trademark Act of 1946 shall be a reference to the Act entitled "An Act to provide for the registration and protection of trademarks used in commerce, to carry out the provisions of certain international conventions, and for other purposes", approved July 5, 1946 (15 U.S.C. 1051 et seq.). SEC. 3002. CYBERPIRACY PREVENTION.

(a) IN GENERAL.-Section 43 of the Trademark Act of 1946 (15 U.S.C. 1125) is amended by inserting at the end the following:

“(d)(1)(A) A person shall be liable in a civil action by the owner of a mark, including a personal name which is protected as a mark under this section, if, without regard to the goods or services of the parties, that person—

"(i) has a bad faith intent to profit from that mark, including a personal name which is protected as a mark under this section; and

"(ii) registers, traffics in, or uses a domain name that—

"(I) in the case of a mark that is distinctive at the time of registration of the domain name, is identical or confusingly similar to that mark;