Sec. 2. Agreements for carriage of broadcast programming
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Section 325 of the Communications Act of 1934 ( 47 U.S.C. 325 ) is amended— in subsection (b)(3)(C)— by striking clauses (ii), (iii), and (iv); and by redesignating clauses
(v)and
(vi)as clauses
(ii)and (iii), respectively; and by adding at the end the following: Not later than 90 days after the date of the enactment of the Modern Television Act of 2021, the Commission shall, by regulation— require a television broadcast station and multichannel video programming distributor (and any large station group or qualified MVPD buying group negotiating for a marketplace agreement on behalf of a television broadcast station or multichannel video programming distributor, respectively) to negotiate in good faith in any effort to reach a marketplace agreement; and prohibit a television broadcast station from coordinating negotiations or negotiating on a joint basis with another television broadcast station in the same local market in an effort to reach a marketplace agreement with a multichannel video programming distributor, unless such stations are directly or indirectly under common de jure control permitted under the regulations of the Commission. The regulations promulgated under paragraph (1)(A) shall provide— that it is a violation of the requirement under paragraph (1)(A)(i)— for a multichannel video programming distributor, a qualified MVPD buying group, a television broadcast station, or a large station group to refuse to declare an impasse for the sole purpose of avoiding binding arbitration under subsection (g), as added by the Modern Television Act of 2021; or for a large station group to prohibit a qualified MVPD buying group from permitting a multichannel video programming distributor with which the large station group has an existing marketplace agreement to join a new marketplace agreement negotiated by the large station group and the qualified MVPD buying group upon the expiration of the existing marketplace agreement, if the multichannel video programming distributor was unable to join the new marketplace agreement at the time of the execution of the agreement because of the existing marketplace agreement; that is not a violation of the requirement under paragraph (1)(A)(i)— for a television broadcast station or large station group to enter into marketplace agreements containing different terms and conditions, including price terms and royalty fees, with different multichannel video programming distributors or with different qualified MVPD buying groups if such different terms and conditions are based on competitive marketplace considerations; or for a multichannel video programming distributor or a qualified MVPD buying group to enter into marketplace agreements containing different terms and conditions, including price terms and royalty fees, with different television broadcast stations or with different large station groups if such different terms and conditions are based on competitive marketplace considerations; that a multichannel video programming distributor may satisfy its obligations under paragraph (1)(A)(i) by designating a qualified MVPD buying group to negotiate on its behalf, so long as the qualified MVPD buying group itself negotiates in good faith; and that a qualified MVPD buying group may satisfy any obligations under paragraph (1)(A)(i) to designate a representative with authority to make binding representations by designating such a representative that can make binding representations on the qualified MVPD buying group’s behalf. Not later than 90 days after the date of the enactment of the Modern Television Act of 2021, the Commission shall, by regulation, require a multichannel video programming distributor to retransmit a signal of a television broadcast station and the television broadcast station to permit the retransmission of that signal— for a period not longer than 60 days beginning on the date on which a marketplace agreement entered into by the television broadcast station and the multichannel video programming distributor (or by any large station group or qualified MVPD buying group negotiating for a marketplace agreement on behalf of a television broadcast station or multichannel video programming distributor, respectively) expires; and under the terms and conditions of such expired agreement. Not later than 90 days after the date of the enactment of the Modern Television Act of 2021, the Commission shall require, by regulation, each marketplace agreement entered into on or after such date of enactment by a television broadcast station and a multichannel video programming distributor (or by any large station group or qualified MVPD buying group negotiating for a marketplace agreement on behalf of a television broadcast station or multichannel video programming distributor, respectively) to include a clause making the terms of the agreement retroactive to the expiration date of the most recent marketplace agreement entered into by or on behalf of the station and the distributor if the station and the distributor— had previously entered into a marketplace agreement; and are required to retransmit a signal or permit the retransmission of a signal, as the case may be, under paragraph
(2)or subsection (g), as added by the Modern Television Act of 2021. Not later than 90 days after the date of the enactment of the Modern Television Act of 2021, the Commission shall, by regulation, prohibit a television broadcast station from requiring payment, either directly or indirectly, from a multichannel video programming distributor for customers of the multichannel video programming distributor who do not receive the signals of the television broadcast station from that distributor. The requirements under this subsection do not apply with respect to mandatory carriage of the signal of a television broadcast station that elects mandatory carriage under section 338, 614, or 615. In this subsection: The term large station group means a group of television broadcast stations that— are directly or indirectly under common de jure control permitted by the regulations of the Commission; generally negotiate agreements for retransmission consent under this section as a single entity; and include only television broadcast stations that collectively have a national audience reach of more than 20 percent. The term local market has the meaning given such term in section 122(j) of title 17, United States Code. The term marketplace agreement means an agreement, or agreements, for— the exclusive right under section 106 of title 17, United States Code, to transmit a performance or display of a work embodied in primary transmission (as defined in section 111(f) of such title) of a television broadcast station and the royalty fee payable; or retransmission consent under subsection (b), as in effect before the repeal made by the Modern Television Act of 2021. The term multichannel video programming distributor has the meaning given such term in section 602. The term qualified MVPD buying group means an entity that, with respect to a negotiation with a large station group for retransmission consent under this section— negotiates on behalf of two or more multichannel video programming distributors— none of which is a multichannel video programming distributor that serves more than 500,000 subscribers nationally; and that do not collectively serve more than 25 percent of all households served by multichannel video programming distributors in any single local market in which the applicable large station group operates; and negotiates agreements for such retransmission consent— that contain standardized contract provisions, including billing structures and technical quality standards, for each multichannel video programming distributor on behalf of which the entity negotiates; and under which the entity assumes liability to remit to the applicable large station group all fees received from the multichannel video programming distributors on behalf of which the entity negotiates. The term 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. . This section, and the amendments made by this section, shall take effect on the date that is 90 days after the date of the enactment of this Act.
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Sec. 2
Agreements for carriage of broadcast programming
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