Cable Television Consumer Protection and Competition Act of 1992

Summary

Cable Television Consumer Protection and Competition Act of 1992 - Amends the Communications Act of 1934 to prohibit a Federal agency or a State from regulating the rates for the provision of cable service, except as provided under the Act. Authorizes a cable TV franchising authority to regulate such rates, but only as provided under the Act. Specifies that if the Federal Communications Commission (FCC) finds that a cable system is: (1) subject to effective competition, the rates for the provision of cable service by such system shall not be subject to regulation by the FCC or by a State or franchising authority under the Act; and (2) not subject to effective competition, the rates for the provision of basic cable and cable programming services shall be subject to regulation by a franchising authority or the FCC, or solely by the FCC, respectively. Requires a franchising authority that seeks to exercise regulatory jurisdiction to file with the FCC a written certification that: (1) such authority will adopt and administer regulations with respect to the rates subject to regulation that are consistent with FCC-prescribed regulations, and has the legal authority to adopt, and the personnel to administer, such regulations; and (2) procedural laws and regulations applicable to rate regulatory proceedings by such authority provide a reasonable opportunity for consideration of the views of interested parties. Sets forth provisions regarding: (1) FCC approval of such certifications; (2) revocation of jurisdiction of such authority; and (3) the exercise of jurisdiction by the FCC if it disapproves a franchising authority's certification or revokes such authority's jurisdiction. Directs the FCC to establish: (1) formulas to set the maximum price of basic tier service and the price for installation and lease of equipment necessary for subscribers to receive such service, and to identify and allocate costs attributable to satisfying franchise requirements to support public, educational, and governmental channels; (2) additional standards and guidelines to implement regulations prescribed by the FCC; and (3) effective dates for compliance with such formulas, standards, and guidelines. Requires each cable operator to offer its subscribers a separately available basic service tier to which the minimum rates shall apply and to which subscription is required for access to all other tiers of service. Mandates that such basic service tier include: (1) any public, educational, and governmental access programming required by the franchise of the cable system; and (2) any signal of any broadcast station that is provided by the cable operator to any subscriber. Permits a cable operator to add additional video programming signals or services to the basic service tier. Prohibits (with exceptions) a cable operator from: (1) requiring the subscription to any tier other than the basic service tier as a condition of access to cable programming offered on a per channel or per program basis; or (2) discriminating between subscribers to the basic service tier and other subscribers with respect to rates charged for cable service offered on a per channel or per program basis. Requires the FCC to design its regulations to reduce the administrative burdens and cost of compliance for cable systems that have 500 or fewer subscribers. Directs the FCC to establish: (1) criteria for identifying rates for cable programming services that are unreasonable; (2) fair and expeditious procedures for the receipt, consideration, and resolution of complaints alleging that a rate for cable programming services violates the criteria established; and (3) the procedures to be used to reduce rates determined by the FCC to be unreasonable. Outlines factors to be considered in determining the reasonableness of such rates and limits complaints permitted concerning rates existing before the effective date of such regulations. Prohibits discrimination among subscribers or potential subscribers with respect to services offered or the rates charged for such services. Requires the regulation and installation of equipment necessary for the provision of such services to the hearing-impaired. Bars a cable operator from charging a subscriber for any individually-priced channel of video programming or for any pay-per-view video programming that the subscriber has not affirmatively requested. Directs the FCC to: (1) require cable systems to file certain financial information annually with the FCC (and requires a report from the FCC to the Congress); and (2) establish standards, guidelines, and procedures to prevent evasion of rates, services, and other requirements of the Act. Prohibits a franchising authority from granting an exclusive franchise, or unreasonably refusing to award additional franchises because of the previous award of a franchise to another cable operator. Specifies that nothing in the Act shall be construed to: (1) prohibit a local or municipal authority that is, or is affiliated with, a franchising authority from operating as a multichannel video programming distributor (MVPD) in the geographic areas within the jurisdiction of such franchising authority; or (2) require such local or municipal authority to secure a franchise to operate as a MVPD. Prohibits a cable system or other MVPD from retransmitting the signal of a commercial broadcasting station, or any part thereof, without the express authority of the originating station, except as permitted by the Act. Makes such provision inapplicable with respect to: (1) retransmission of the signal of a broadcasting station to a home satellite antenna or by a cable operator or other MVPD of the signal of a superstation if the originating station was a superstation on May 1, 1991, and the cable system or other MVPD does not obtain the signal directly from the originating station; and (2) any cable system that has 500 or fewer subscribers. Directs the FCC to commence a rulemaking proceeding to establish regulations governing the exercise by TV stations of the rights to grant retransmission authority and the right to signal carriage under the Act. Sets forth further requirements regarding such regulations, prohibited acts by commercial broadcasting stations (limitations on exclusive carriage agreements and unreasonable discrimination or refusals to deal), and complaint procedures. Requires cable operators that provide basic tier service to carry the signals of all local commercial TV stations (LCTS) in accordance with the following provisions: (1) cable operators with 12 or fewer usable activated channels must carry a minimum of three LCTS, while those with more than 12 must carry the signals of LCTS up to one-third of the aggregate number of usable activated channels of the cable system; (2) whenever the number of LCTS exceeds the maximum number of signals a cable system is required to carry, such operator shall have discretion in selecting which such signals shall be carried on its system, with exceptions; (3) cable operators must carry in its entirety the primary video and audio transmission and line 21 closed-caption transmission of the LCTS carried; (4) signals of an LCTS must be carried by the cable operator without material degradation; (5) duplicate LCTS need not be carried by a participating cable operator; (6) each signal carried in fulfillment of the carriage obligations of a cable operator shall be carried on the cable system channel number on which the LCTS is broadcast over the air, or on the channel on which it was carried on July 19, 1985, at the election of the station, or on such other channel number as is mutually agreed upon by the station and the cable operator (with disputes regarding LCTS positioning resolved by the FCC); (7) signals carried in fulfillment of the cable operator's requirements shall be provided to every subscriber of a cable system; (8) a participating cable operator shall identify upon request those signals carried in fulfillment of its requirements; and (9) a cable operator shall provide written notice to an LCTS that such channel is being repositioned or deleted. Prohibits a cable operator from accepting or requesting monetary payment or other valuable consideration in exchange for carriage of LCTS under these provisions, except for certain administrative costs. Outlines remedies and procedures available to an LCTS when it believes that a cable system has failed to meet such requirements, requiring the cable operator to be notified of the allegation, to respond to such allegation, review by the FCC of such complaint, and remedial actions to be taken by the cable operator upon a finding of noncompliance with such requirements. Abolishes rules requiring cable operators to provide, or provide information to subscribers on, input selector switches or comparable devices. Directs the FCC to issue regulations regarding the carriage of local commercial TV signals. Specifies that nothing in the Act shall require a cable operator to carry on any tier, or prohibit a cable operator from carrying on any tier, the signal of any commercial TV station or video programming service that is predominantly utilized for the transmission of sales presentations or program length commercials. Directs each cable operator to carry the signals of a specified number of qualified noncommercial educational TV stations (QNETS), such number increasing with the number of usable activated channels offered by the cable system (ranging from one for a system with 12 or fewer activated channels to three for a system with more than 36 usable activated channels). Requires a cable system with 13 to 36 activated channels to carry at least one QNETS. Provides that duplication of affiliates of State public TV networks is not required of a cable operator. Requires each cable operator to carry in its entirety the primary video and audio and line 21 closed-caption transmission of each QNETS carried on its system, as well as material necessary for the receipt of such programming by handicapped persons or for educational or language purposes. Outlines other signal carriage requirements required of a cable operator with regard to QNETS, including: (1) signal integrity; (2) channel assignments (requiring notice if a QNETS is repositioned by a cable operator); and (3) signal quality responsibilities of the QNETS. Prohibits a cable operator from accepting monetary payments or other valuable consideration (except for signal quality costs) in exchange for the carriage of a QNETS. Exempts a cable operator from being required to carry a QNETS without reimbursement where the payment of copyright charges as a distant signal would be required of such cable operator. Outlines remedies available to a qualified local noncommercial educational TV station when it believes that a cable operator has failed to meet carriage requirements, requiring the cable operator to be notified of the allegation, a response from the cable operator, and review of such complaint by the FCC. Requires a cable operator to identify upon request those signals carried in fulfillment of its requirements. Authorizes a franchising authority to enforce (currently, to require as part of a franchise, or for franchise renewal, enforcement of): (1) customer service requirements of the cable operator; and (2) construction schedules and other construction-related requirements. Directs the FCC to: (1) establish standards by which cable operators may fulfill their customer service requirements, which shall govern cable system office hours and telephone availability; installations, outages, and service calls; and communications between the cable operator and the subscriber (including bills and refunds); (2) develop equipment standards necessary to permit the commercial availability of remote control units compatible with cable systems; and (3) determine the feasibility of including converter and addressability technology for cable systems and other multichannel video systems in TV receivers shipped in interstate commerce or imported from any foreign country for sale or resale to the public. Specifies that nothing in the Act shall be construed to: (1) prohibit any State or franchising authority from enacting or enforcing any consumer protection law, to the extent not specifically preempted by the Act; (2) preclude a franchising authority and a cable operator from agreeing to customer service requirements that exceed FCC standards; or (3) prevent the enforcement of any municipal law or regulation, or any State law, concerning customer service that imposes customer service requirements that exceed FCC standards, or that addresses matters not addressed by FCC standards. Directs the FCC to prescribe regulations to: (1) ensure that signals a cable system transmits to subscribers are compatible with all operational functions of cable-ready TV receivers and video cassette recorders (VCRs); (2) prohibit cable operators from scrambling or otherwise encrypting video programming in any manner that interferes with or nullifies the special functions of subscribers' TVs or VCRs, except where necessary to protect against the theft of cable service, subject to specified requirements; (3) promote the commercial availability, from cable operators and retail vendors not affiliated with cable systems, of converters and remote control devices compatible with converters; (4) require a cable operator who offers subscribers the option of renting a remote control unit to notify subscribers that they may purchase a commercially available remote control device from any source that sells such devices rather than renting it from the cable operator and to specify the types of remote control units that are compatible with the converter box supplied by the cable operator; and (5) prohibit a cable operator from taking any action that prevents or in any way disables the converter box supplied by such operator from operating compatibly with commercially available remote control units. Requires the FCC to: (1) periodically review and, if necessary, modify such regulations; (2) report to the Congress on means of assuring compatibility between TVs and VCRs and cable systems, consistent with the need to prevent theft of cable service, and issue regulations as necessary to require the use of interfaces that assure such compatibility; and (3) adopt standards that are technologically and economically feasible, taking into account the cost and benefit to cable subscribers of such standards. Directs the FCC to establish minimum technical standards relating to the cable systems' technical operation and signal quality, and to periodically update such standards to reflect improvements in technology. Permits a franchising authority to require as part of a franchise provisions for the enforcement of such standards and to apply to the FCC for a waiver to impose standards that are more stringent than the FCC standards. (Current law permits the FCC to establish technical standards relating to the facilities and equipment of cable systems which a franchising authority may require in the franchise.) Requires each cable operator to comply with such standards as the FCC shall prescribe to ensure that viewers of video programming on cable systems are afforded the same emergency information as is afforded by the emergency broadcasting system. Prohibits a video programming vendor in which a cable operator has an attributable interest and that engages in the national or regional distribution of satellite cable programming from: (1) unreasonably refusing to deal with any MVPD for such programming; or (2) discriminating in the price, terms, and conditions in the sale or delivery of such programming among or between cable systems, cable operators, or their agents or buying groups, or other MVPDs, with exceptions. Specifies that nothing in such provision shall: (1) require any person who is engaged in the national or regional distribution of video programming to make such programming available in any geographic area beyond which such programming has been authorized or licensed for distribution; and (2) apply to the signal of any affiliate of a national TV network or other TV broadcast signal that is retransmitted by satellite, nor to any internal satellite communication of any broadcast or cable network. Provides that an exclusive contract for satellite cable programming shall be considered to be an unreasonable refusal to deal if the effect of such contract is to deny access to such programming to distributors seeking to provide such programming to persons in rural areas not served by a cable operator. Prohibits a fixed service satellite carrier that provides or has provided service from: (1) unreasonably refusing to deal with any distributor of video programming in the provision of such service to home satellite earth stations qualified to receive such service; or (2) discriminating in the price, terms, and conditions of the sale of such service among distributors to home satellite earth stations qualified to receive such signals, or between such distributors and other MVPDs, with exceptions. Authorizes any MVPD aggrieved by such conduct to commence an adjudicatory proceeding at the FCC. Grants the FCC, upon the completion of such proceeding, the power to order appropriate remedies. Directs the FCC to: (1) prescribe regulations to implement such provisions; and (2) annually report to the Congress on the status of competition in the market for the delivery of video programming. Leaves unaffected by such provisions any contract that grants exclusive distribution rights to any person with respect to video programming that was entered into on or before June 1, 1990. Requires the FCC to establish regulations governing program carriage agreements and related practices between cable operators or other MVPDs and video programming vendors. Specifies prohibitions to be included in such regulations relating to discrimination, conflicting financial interests, exclusivity, cost recovery, expedited review, and appropriate penalties. Directs the FCC, after notice and opportunity for hearing, to prescribe revisions to standards and rules concerning equal employment opportunity. Requires such revisions to be designed to promote equality of employment opportunities for females and minorities within any corporation, partnership, joint-stock company, or trust engaged primarily in the management or operation of any cable system. Lists specified positions to which such equal opportunity requirements shall apply, ranging from corporate officers to unskilled laborers and service workers. Requires work groups within such cable entities with more than five full-time employees to file with the FCC an annual statistical report identifying by race, sex, and job title the number of employees in each category covered under the equal opportunity requirements. Outlines other report requirements and increases the fines for failure to use best efforts in meeting such equal opportunity requirements. Directs the FCC to: (1) report to the Congress on the effect and operation of procedures, regulations, policies, standards, and guidelines concerning equal employment opportunity in the broadcasting industry; and (2) prescribe rules and regulations concerning the disposition of cable installed by the cable operator within the premises of a subscriber after the subscriber terminates cable service. Prohibits a cable operator from selling a cable system for three years after its acquisition. Provides for the treatment of multiple transfers of systems. Provides exceptions to such regulation and allows the FCC to waive such requirement in the public interest. Limits to 120 days a franchising authority's power to disapprove the sale of a cable system by an operator who has held such system for three years. Directs the FCC to establish: (1) a formula for determining the maximum rates which a cable operator may establish for commercial use of its cable channels; (2) standards concerning the terms and conditions which may be established, and concerning methods for collection and billing for commercial use of channel capacity made available for such purpose; and (3) procedures for the expedited resolution of disputes concerning rates or carriage under the Act. Allows a cable operator required to designate channel capacity for commercial use to use any such channel capacity for the provision of programming from a qualified minority programming source, whether or not such source is affiliated with the cable operator. Limits to 33 percent of overall channel capacity the capacity permitted to be used by such source. Defines a qualified minority programming source as a source that devotes significantly all of its programming to coverage of minority viewpoints or to programming directed at members of minority groups and that is over 50 percent minority-owned. Prohibits any cable system in the United States from being owned or otherwise controlled by any alien, foreign representative, or foreign corporation or interest. Makes exceptions for current foreign or alien ownership and in certain cases where such a corporation already owns two or more systems and seeks to add another. Increases the civil and criminal penalties for the unauthorized reception of cable TV service. Directs the FCC to: (1) conduct a rulemaking proceeding to review and report on whether it is necessary or appropriate in the public interest to prohibit or constrain acts and practices that may unreasonably restrict diversity and competition in the market for video programming; (2) initiate such a proceeding to impose public interest or other requirements on direct satellite systems providing video programming that are not regulated as a common carrier; and (3) require, as a condition of initial authorization or renewal for a direct broadcast satellite service providing video programming, that the provider of such service reserve not less than four or more than seven percent of the channel capacity of such service exclusively for noncommercial public service uses. Establishes a study panel to report to the Congress recommendations on: (1) methods and strategies for promoting the development of programming for transmission over the public use channels; (2) methods and criteria for selecting programming for such channels that avoids conflicts of interest and the exercise of editorial control by the direct broadcast satellite service provider; and (3) existing and potential sources of funding for administrative and production costs for such public use programming. Requires the FCC to initiate an inquiry and rulemaking to examine the feasibility of providing access to network and independent broadcasting station signals to persons who subscribe to direct broadcast satellite service and are unable to receive such signals over the air from a local licensee or from a cable system.

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5 official files

• Reported in House (text)

  Reported in House · EN

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• Introduced in House (text)

  Introduced in House · EN

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• Passed House amended

  summary · EN · 23 July 1992

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• Reported to House with amendment(s)

  summary · EN · 29 June 1992

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• Introduced in House

  summary · EN · 9 April 1992

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