REGULATION OF COMMUNITY ANTENNA TELEVISION TUESDAY, MARCH 22, 1966 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C. The committee met at 10 a.m., pursuant to call, in room 2123, Rayburn House Office Building, Hon. Harley O. Stagger (chairman) presiding. The CHAIRMAN. The committee will come to order. This morning the Committee on Interstate and Foreign Commerce is commencing hearings on two bills dealing with the authority of the Federal Communications Commission to regulate the operation of CATV systems. One bill, H.R. 13286, which I introduced at the request of the Federal Communications Commission, would give broad authority to the Commission to undertake such regulation. The other bill, introduced by our colleague, Representative Walter Rogers of Texas, H.R. 12914, would deny such authority to the Commission, at least with regard to those systems which do not use microwave links. During the 1st session of the 89th Congress, the Subcommittee on Communications and Power held extensive hearings on a bill, H.R. 7715, introduced by the former chairman of this committee, Representative Oren Harris. This bill would have established a national television policy and provided a method by which rules of the Federal Communications Commission with regard to CATV systems may be reviewed by the Congress before they become effective. There can be no doubt that the subject with which the committee will be dealing in these hearings is highly complex as well as highly controversial. It is important, therefore, that the hearing record will provide, insofar as possible, clear answers to vital questions with which the committee will be confronted later in executive session: 1. If either of these bills is enacted, what additional regulatory authority would the Congress grant to the FCC, or in what respect would the regulatory authority now claimed by the FCC be limited? 2. Do the CATV rules promulgated by the Commission in its second report constitute a reasonable and proper exercise of the Commission's regulatory authority? 3. How far should the Congress go in laying down specific guidelines for the Commission with regard to the exercise of the Commission's authority to regulate CATV systems? At this point in the record, there will be inserted copies of the two bills, H.R. 13286 and H.R. 12194. (The bills referred to follow:) [H.R. 12914, 89th Cong., 2d sess.] A BILL To amend the Communications Act of 1934 to prohibit the Federal Communications Commission from exercising jurisdiction over the reception of radio signals, communications, and transmissions Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That se tion 326 of the Communications Act of 1934 (47 U.S.C. 326) is amended by adding a new paragraph to read as follows: "Nothing in this Act shall be understood or construed to give the Commission the power to control or regulate the reception of radio communications or signals transmitted by any radio station." [H.R. 13286, 89th Cong., 2d sess.] A BILL To amend the Communications Act of 1934 to authorize the Federal Communications Commission to issue rules and regulations with respect to community antenna systems, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 3 of the Communications Act of 1934 (47 U.S.C. 153) is amended by adding at the end thereof the following new sub section: "(gg) 'Community antenna system' means any facility which, in whole or in part, receives directly or indirectly over the air and amplifies or otherwise modifies the signals transmitting programs broadcast by one or more broadcast stations and distributes such signals by wire or cable to subscribing members of the public who pay for such service." SEC. 2. Part I of title III of the Communications Act of 1934 is amended by adding at the end thereof the following new section: "COMMUNITY ANTENNA SYSTEMS "SEC. 331. (a) The Commission shall, as the public interest, convenience or necessity requires, have authority "(1) to issue orders, make rules and regulations, and prescribe such conditions or restrictions with respect to the construction, technical characteristics, and operation of community antenna systems, to the extent necessary to carry out the purposes of this Act, with due regard to both the establishment and maintenance of broadcast services and the provision of multiple reception services; and "(2) to make general rules exempting from regulation, in whole or in part, community antenna systems where it is determined that such regulation is unnecessary because of the size or nature of the systems so exempted. "(b) No community antenna system shall transmit over its system any program or other material other than that which it has received directly or indirectly over the air from a broadcast station, except that the Commission may, upon an express finding that it would serve the public interest, authorize by general rule limited exceptions to permit such transmissions without any additional charge to subscribers. "(c) Nothing in this Act or any regulation promulgated hereunder shall preclude or supersede legislation relating to, or regulation of, community antenna systems by or under the authority of any State or territory, the District of Columbia, the Commonwealth of Puerto Rico or any possession of the United States except to the extent of direct conflict with the provisions of this Act or regulations promulgated hereunder.” (The following bill, H.R. 14201, was introduced by Mr. Mackay March 31, 1966, subsequent to the opening date of these hearings.) [H.R. 14201, 89th Cong., 2d sess.] A BILL To amend section 3 of the Communications Act of 1934 (47 U.S.C. 153) Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 3 of the Communications Act of 1934 (47 U.S.C. 153) is amended by amending subsections (h) and (o) thereof and by adding a new subsection (gg) as follows: "DEFINITIONS "SEC. 3. For the purpose of this Act, unless the context otherwise requires"(h) 'Common carrier' or 'carrier' means any person engaged as a common carrier for hire, in interstate or foreign communications by wire or radio, or in interstate or foreign transmission of energy, except where reference is made to common carriers not subject to this Act; but a person engaged in radio broadcasting or in operating a community antenna television system shall not, insofar as the person is so engaged, be deemed a common carrier. "(0) Broadcasting' means the dissemination of radio communications intended to be received by the public, directly or by the intermediary of relay stations; but a person engaged in operating a community antenna television system shall not, insofar as the person is so engaged, be deemed to be engaged in broadcasting. "(gg) 'Community antenna television system' means a facility utilizing a receiving antenna or antennas, connecting wire, cable, or relay facilities and associated equipment to which members of the public may obtain an attachment or connection of their television receivers to facilitate or make possible reception by such members of the public of the signals of one or more television broadcast stations, but such term shall not include for the purposes of this Act any such facility which (i) only receives television signals from transmitters located no more than thirty miles from the main post office of the community in which such community antenna television system is located; or (ii) only originates its own television programs; or (iii) only carry audio programs; or (iv) a combination of (i), (ii), and (iii) or of any of them." SEC. 2. Part I of title III of the Communications Act of 1934 is amended by adding at the end thereof the following new section: "COMMUNITY ANTENNA TELEVISION SYSTEMS "SEC. 331. The Commission shall, as the public interest, convenience or necessity requires, have authority "(a) to issue orders, make rules and regulations, and prescribe such conditions or restrictions with respect to the technical characteristics and operation of community antenna television systems to the extent necessary to carry out the purposes of this Act with due regard to both the establishment and maintenance of broadcast services and the provision of multiple reception services: Provided, however, That the Commission shall have no authority: "(1) to require a community antenna television system to receive on its system the signals of a television broadcast station whose transmitter is located more than thirty miles from the main post office of the community in which the community antenna television system is located; or "(2) to require a community antenna television system to receive on its system the signals of a television broadcast station which originates fewer than ten hours per week of its own programs; or "(3) to require a community antenna television system to receive on its system the signals of a television broadcast station which duplicates in whole or in substantial part (that is, more than 75 per centum) the programs of another television broadcasting station received by such community antenna system; or "(4) to require a community antenna television system to delete or refrain from receiving signals carry ing any program of any television broadcast station unless (i) such program is broadcast by a television broadcast station whose transmitter is located more than thirty miles from the main post office of the community in which the community antenna television system is located, and (ii) in addition duplicates simultaneously a program broadcast by a television broadcast station whose transmitter is located within thirty miles of the main post office of the community in which the community antenna, television system is located, and (iii) whose signal the CATV is required to receive. (b) to make general rules exempting from regulation, in whole or in part, community antenna television systems where it is determined that such regulation is unnecessary because of the size or nature of the systems so exempted." The CHAIRMAN. There will also be inserted an explanation submitted by the FCC of H.R. 13286, and a letter from Chairman Henry, addressed to me, requesting introduction of this legislation. In addition, I think it will be appropriate to insert at this point a glossary of terms and some other background material relating to community antenna television systems which has been prepared at my request jointly by representatives of the Federal Communications Commission, the National Association of Broadcasters, and the National Community Television Association. (The documents referred to follow:) Hon. HARLEY O. STAGGERS, FEDERAL COMMUNICATIONS COMMISSION, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: In accordance with your request that the Commission furnish your committee as soon as possible with our suggestions for legislation on CATV, I am enclosing proposed legislation which the Commission at its meeting yesterday agreed to recommend. The dissenting statement of Commissioner Bartley and the separate statement of Commissioner Loevinger are also attached. Because of this urgent request, and the fact that the bill has just been drafted, it has not been presented to the Bureau of the Budget for advice as to its relationship to the program of the President. However, a copy is being sent to that Bureau forthwith. Please call on me if I can be of any further assistance in this matter. Yours sincerely, E. WILLIAM HENRY, Chairman. EXPLANATION OF PROPOSED AMENDMENTS TO THE COMMUNICATIONS ACT OF 1934, AS AMENDED, CONCERNING REGULATION OF COMMUNITY ANTENNA SYSTEMS These proposals for amendments to the Communications Act are submitted pursuant to the Commission's determination, announced in its Public Notice of February 15, 1966, that it would make the following recommendations for legislation to the Congress: "(a) Clarification and confirmation of FCC jurisdiction over CATV systems generally, along with such specific provisions as are deemed appropriate. "(b) Prohibition of the origination of program or other material by a CATV system with such limitations or exceptions, if any, as are deemed appropriate. "(c) Consideration of whether, to what extent, and under what circumstances CATV systems should be required to obtain the consent of the originating broadcast station for the retransmission of the signal by the CATV system. "(d) Consideration of whether CATV systems should or should not be deemed public utilities. In this connection, Congress will be asked to consider the appropriate relationship of Federal to State-local jurisdiction in the CATV field, with particular reference to initial franchising, rate regulation, and extension of service." The Commission has determined that it has jurisdiction over all CATV systems, and it has asserted that jurisdiction to the extent necessary to carry out the announced regulatory program. However, given the importance of ČATV, we believe it highly desirable that Congress amend the Communications Act to confirm that jurisdiction and to establish such basic national policy as it deems appropriate. The proposed new subsection 3 (h) of the Communications Act broadly defines a "community antenna system" to include any facility which receives broadcast signals over the air 2 and distributes them by means of wire or cable to subscribing 1 1 Both radio and television signals are included. While we are aware of no community antenna system which now distributes only radio signals, some systems do distribute signals from both radio and television broadcast stations. 2 This would include signals received directly off the air from a broadcast station, as well as those broadcast and then relayed by means of a microwave relay system. |