text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Video Competition and Consumer 
  Choice Act of 1998''.
  
  SEC. 2. CABLE PROGRAMMING SERVICES REGULATION.
  
        Section 623(c)(4) of the Communications Act of 1934 (47 U.S.C. 
  543(c)(4)) is amended to read as follows:
              ``(4) Sunset of upper tier rate regulation.--
                      ``(A) Programming choice required.--The authority 
                  to regulate rates under this subsection shall not apply 
                  to cable programming services provided after March 31, 
                  1999, by a cable system unless the franchising 
                  authority for such cable system, after notice and 
                  opportunity for a public hearing at which the operator, 
                  subscribers, and other interested persons may appear 
                  and present evidence, certifies to the Commission that 
                  the cable operator of such system is not providing to 
                  subscribers an acceptable range of programming choices 
                  to the extent technically feasible and economically 
                  reasonable.
                      ``(B) Basis for certification.--Any franchising 
                  authority making such a certification shall include 
                  with the statement the factors upon which the 
                  franchising authority bases its determination. Such 
                  factors may include (but are not limited to) the 
                  factors described in paragraph (2) and any one or more 
                  of the following:
                              ``(i) delivery of the packages is 
                          technically feasible based on the current and 
                          expected capability of the system;
                              ``(ii) delivery of the packages is 
                          economically reasonable based on the technical 
                          requirements for delivery of the packages;
                              ``(iii) delivery of the packages can be 
                          performed without jeopardizing security of 
                          multichannel video programming and other 
                          services offered over the system, or impeding 
                          the legal rights of the system operator to 
                          prevent theft of service;
                              ``(iv) any revenues received by the cable 
                          operator and cable programming providers from 
                          advertising, including the economic effect of 
                          offering additional programming choices on 
                          advertising revenues and subscriber rates;
                              ``(v) the packages permit subscribers to 
                          subscribe to significantly less than the 
                          majority of upper tier programing services 
                          available; and
                              ``(vi) the packages are related to the 
                          program category interests of groups as 
                          demonstrated by polling, surveys, referenda, 
                          statistics, or other comparable means based on 
                          statistics from the franchising area.
                      ``(C) Commission review.--Upon receipt of a request 
                  for review from a cable operator, the Commission may 
                  review any certification submitted under subparagraph 
                  (A) and may rescind such certification if the 
                  Commission determines that the determination of the 
                  franchising authority is arbitrary and capricious.
                      ``(D) Duration.--A certification under subparagraph 
                  (A) is effective for one year, unless earlier withdrawn 
                  by the franchising authority or rescinded by the 
                  Commission.
                      ``(E) No effect on effective competition test.--
                  Notwithstanding any certification under this paragraph, 
                  a cable system that is subject to effective 
                  competition, as determined under subsection (a)(2), 
                  shall not be subject to regulation under this 
                  subsection.''.
  
  SEC. 3. PROGRAM ACCESS.
  
      (a) Amendments To Extend and Revise Program Access Requirements.--
  Section 628 of the Communications Act of 1934 (47 U.S.C. 548) is 
  amended--
              (1) in subsection (a), by striking ``satellite cable 
          programming and satellite broadcast programming'' and inserting 
          ``multichannel video programming'';
              (2) in subsection (b)--
                      (A) by striking ``cable operator, a satellite cable 
                  programming vendor in which a cable operator has an 
                  attributable interest, or a satellite broadcast 
                  programming vendor'' and inserting ``multichannel video 
                  programming distributor''; and
                      (B) by striking ``satellite cable programming or 
                  satellite broadcast programming'' and inserting 
                  multichannel video programming'';
              (3) in subsection (c)--
                      (A) by striking ``Within 180 days after the date of 
                  enactment of this section, the Commission'' in 
                  paragraph (1) and inserting ``The Commission'';
                      (B) by striking paragraph (2) and inserting the 
                  following:
              ``(2) Minimum contents of regulations.--The regulations to 
          be promulgated under this section shall--
                      ``(A) establish effective safeguards to prevent any 
                  multichannel video programming distributor from unduly 
                  or improperly influencing the decision of any 
                  multichannel video programming vendor to sell, or the 
                  prices, terms, and conditions of sale of, multichannel 
                  video programming to any other multichannel video 
                  programming distributor;
                      ``(B) prohibit discrimination by a multichannel 
                  video programming vendor in the prices, terms, and 
                  conditions of sale or delivery of such programming 
                  among or between cable systems, cable operators, or 
                  other multichannel video programming distributors, or 
                  their agents or buying groups; except that a 
                  multichannel video programming vendor shall not be 
                  prohibited from--
                              ``(i) imposing reasonable requirements for 
                          creditworthiness, offering of service, and 
                          financial stability and standards regarding 
                          character and technical quality;
                              ``(ii) establishing different prices, 
                          terms, and conditions to take into account 
                          actual and reasonable differences in the cost 
                          of creation, sale, delivery, or transmission of 
                          multichannel video programming;
                              ``(iii) establishing different prices, 
                          terms, and conditions which 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 distributor; or
                              ``(iv) entering into an exclusive contract 
                          that is permitted under subparagraph (D);
                      ``(C) prohibit practices, understandings, 
                  arrangements, and activities, including exclusive 
                  contracts for multichannel video programming between a 
                  multichannel video programming distributor and a 
                  multichannel video programming vendor, that prevent any 
                  multichannel video programming distributor from 
                  obtaining such programming for distribution to persons 
                  in areas not served by a cable operator;
                      ``(D) with respect to distribution to persons in 
                  areas served by a cable operator--
                              ``(i) prohibit exclusive contracts for 
                          multichannel video programming between a cable 
                          operator and a multichannel video programming 
                          vendor in which a cable operator has an 
                          attributable interest, unless the Commission 
                          determines (in accordance with paragraph (4)) 
                          that such contract is in the public interest;
                              ``(ii) not prohibit exclusive contracts for 
                          multichannel video programming between a 
                          multichannel video programming distributor, 
                          other than a cable operator, and a multichannel 
                          video programming vendor, other than a 
                          multichannel video programming vendor in which 
                          a cable operator has an attributable interest, 
                          unless the Commission determines (in accordance 
                          with paragraph (4)) that such contract is 
                          contrary to the public interest.''; and
                      (C) in paragraph (5), by striking ``enactment of 
                  this section'' and inserting ``enactment of the Video 
                  Competition and Consumer Choice Act of 1998'';
              (4) in subsection (h), by adding at the end the following 
          new paragraph:
              ``(3) Other contracts.--No contract to grant exclusive 
          distribution rights to any person with respect to multichannel 
          video programming may be entered into on or after the date of 
          enactment of the Video Competition and Consumer Choice Act of 
          1998, except as permitted under subsection (c)(2)(D). No 
          contract entered into after June 1, 1990, and before such date 
          of enactment that grants such rights may continue in effect 
          after 120 days after the date of enactment of the Video 
          Competition and Consumer Choice Act of 1998.'';
              (5) in subsection (i), by adding at the end the following 
          new paragraphs:
              ``(5) The term `multichannel video programming' means video 
          programming which is transmitted by any means and which is 
          primarily intended for the direct receipt by multichannel video 
          programming distributors for retransmission to their 
          subscribers.
              ``(6) The term `multichannel video programming vendor' 
          means a person engaged in the production, creation, or 
          wholesale distribution for sale of multichannel video 
          programming.''.
              (6) by striking subsection (j) and inserting the following:
      ``(j) Common Carriers.--Any provision that applies to a 
  multichannel video programming distributor or multichannel video 
  programming vendor under this section shall apply to a common carrier 
  or its affiliate that provides multichannel video programming.''.
      (b) Deadlines for Revised Regulations.--The Federal Communications 
  Commission shall prescribe such revisions to its regulations as may be 
  necessary to implement the amendments made by subsection (a) within 120 
  days after the date of enactment of this Act.
  
  SEC. 4. LIFELINE CABLE SERVICE TIER.
  
      Section 623(b) of the Communications Act of 1934 (47 U.S.C. 543(b)) 
  is amended--
              (1) in the subsection heading by inserting ``and Lifeline'' 
          after ``Basic''; and
              (2) by adding at the end the following new paragraph:
              ``(9) Lifeline service tier.--
                      ``(A) Contents.--Each cable operator of a cable 
                  system shall make available for sale to its subscribers 
                  a separately packaged lifeline service tier. Such 
                  lifeline service tier shall consist exclusively of the 
                  following:
                              ``(i) All signals carried in fulfillment of 
                          the requirements of sections 614 and 615.
                              ``(ii) Any public, educational, and 
                          governmental access programming required by the 
                          franchise of the cable system to be provided to 
                          subscribers.
                              ``(iii) Any signal of a local television 
                          broadcast station that is provided by the cable 
                          operator to any subscriber, except that a 
                          digital television service signal shall not be 
                          required to be carried as part of the lifeline 
                          service tier pursuant to this clause (iii) 
                          unless such carriage is required by regulations 
                          prescribed by the Commission.
                      ``(B) Prohibition on additions.--A cable operator 
                  may not add additional video programming signals or 
                  services to the lifeline service tier.
                      ``(C) Rate regulation.--The Commission shall 
                  prescribe regulations concerning the rates for the 
                  lifeline service tier. Such regulations shall be 
                  designed to achieve the goals of--
                              ``(i) ensuring that rates for the lifeline 
                          service tier are reasonable; and
                              ``(ii) promoting multichannel video 
                          programming distribution competition.''.
target: Video Competition and Consumer Choice Act of 1998 - Amends the Communications Act of 1934 to make the authority of the Federal Communications Commission (FCC) to regulate cable television service rates inapplicable to services provided after March 31, 1999, by a cable system unless the franchising authority for such system, after notice and opportunity for a public hearing, certifies to the FCC that the cable operator of such system is not providing subscribers an acceptable range of programming choices to the extent technically feasible and economically reasonable.  Outlines factors to be considered for such certification.  Authorizes FCC review of such certifications.  Makes such certifications effective for one year, unless earlier withdrawn or rescinded. 
  Replaces references to "satellite cable programming" and "satellite broadcast programming" with "multichannel video programming (MVP)."  Repeals a deadline for FCC regulations concerning the development of competition and diversity in MVP distribution. Outlines minimum requirements for such regulations, including prohibited actions by an MVP vendor with respect to the sale or delivery of such programming among cable systems, cable operators, and other MVP distributors. 
  Prohibits entering into contracts to grant exclusive distribution rights to any person with respect to MVP after the date of enactment of this Act, except for certain exclusivity contracts granted by the FCC in the public interest.  Prohibits any such contract (other than the public interest contract) already entered into before such date of enactment to continue after 120 days after such date. 
  Defines MVP as video programming which is transmitted by any means and which is primarily intended for the direct receipt by MVP distributors for retransmission to their subscribers. 
  Requires the revision of MVP regulations as necessitated by this Act within 120 days after enactment. 
  Requires each cable operator of a cable system to make available for sale to its subscribers a separately packaged lifeline service tier consisting exclusively of:  (1) FCC-required local commercial television and noncommercial educational television programming; (2) any public, educational, and governmental access programming required by the cable system franchise; and (3) any signal of a local television broadcast station provided by the cable operator to any subscriber (with an exception).  Prohibits a cable operator from adding additional video programming signals or services to the lifeline tier. Directs the FCC to prescribe regulations for lifeline tier rates.
feat_title: Video Competition and Consumer Choice Act of 1998