House Energy & Commerce leadership Tuesday (Nov. 18) will introduce a bipartisan compromise version of the STELA Reauthorization (STELAR) Act that it says reflects bipartisan input from the Senate Commerce Committee, say sources familiar with the bill and a copy obtained by Multichannel News (http://energycommerce.house.gov/sites/republicans.energycommerce.house.g...). It includes some retrans-related provisions that likely won't sit well with broadcasters.

It combines elements of a House-passed bill and the STAVRA version that passed out of the Senate Commerce Committee (http://www.multichannel.com/news/policy/stavra-bill-passes-senate-commer...) in September, including retaining the elimination of the set-top integration ban--after one year--and giving broadcasters an extra six months to unwind joint sales agreements per an FCC decision earlier this year as well as preventing coordinated retrans among noncommonly owned same-market TV stations.

According to a committee source speaking on background, House E&C Chairman Fred Upton (R-Mich.), ranking member Henry Waxman (D-Calif.), Communications subcommittee Chairman Greg Walden (R-Ore.) and ranking member Anna Eshoo (D-Calif.) together will introduce the new version of the bill that reauthorizes the compulsory satellite license to that 1.5 million people can continue to receive distant network TV station signals.

If some version the satellite reauthorization bill does not pass by the end of the year, that license expires, as does the FCC's ability to enforce good faith negotiations in retransmission consent negotiations.

The bill includes the following retrans reforms: Prohibits joint retransmission consent negotiations between noncommonly owned stations in a market;

requires the commission to review the definition of good faith negotiations; prohibits broadcasters from blocking the importation of significantly viewed signals their markets; eliminates the prohibition on MVPD's removing station signals during sweeps “sweeps”; and requires cable operators to report retrans payments in cable rates reports.

It also streamlines the process of regulatory relief for smaller cable operators, allows market modification to better reflect communities broadcasters and satellite operators serve.

A committee source said the idea is for the bill to go directly to the House floor for a vote, after which the Senate would have to vote on it.

As expected, Senate Judiciary Committee leadership Tuesday released a two-page version of the Satellite Television Extension & Localism Act (STELA) that would extend the law for five more years, make some technical changes--adding a "the" here, substituting a "paragraph" for a "clause" there--and nothing else.

The bill is a bipartisan offering from Judiciary Committee chairman Patrick Leahy and ranking member Charles Grassley (R-Iowa). Leahy signaled he would bring the bill up in committee later this month. The committee held a hearing on STELA in March.

STELA renews the compulsory license that allows satellite operators to deliver distant network TV station signals to viewers who can't get local versions over the air and renews the FCC's authority to enforce good faith retransmission consent negotiations.

Cable ops want Congress to address retrans reforms in STELA, and were successful in getting some of what they wanted in a House version that passed the Energy & Commerce Committee. Broadcasters would like to see that version stripped down to match the Senate bill.

Some version of STELA has to pass by the end of this year or the license sunsets. The last time the license was reauthorized--in 2009--Congress actually missed the deadline, had to make the license retroactive, and reached out to content owners essentially asking them to treat the license as though it had been renewed while Congress worked on getting it done--which it finally did in spring 2010.

National Association of Broadcasters President Gordon Smith was not pleased with the House E&C version, which would prevent coordinated retransmission consent negotiations, but was happy with the "clean" bill from Leahy and Grassley.

"NAB applauds the narrow STELA reauthorization bill introduced today by Chairman Leahy and Ranking Member Grassley," he said in a statement. "This legislation ensures that communities across America will continue to benefit from local broadcast television's indispensable news, entertainment and lifeline programming. Further, this bill enables the satellite industry to serve rural America without undermining consumers' uniquely free over-the-air access to broadcast programming, particularly those viewers who are traditionally underserved by other mediums. NAB thanks Sens. Leahy and Grassley for their serious approach to this reauthorization and producing a bill that can garner the support of all stakeholders. We encourage its swift passage."

The American Television Alliance, representing cable and satellite operators, has been pushing hard for retrans reforms on STELA. “In the past 20 years, there has never been a ‘clean’ version of STELA because our video laws cannot keep up with changing technology,” ATVA said. The retransmission consent system is now more broken than ever and STELA is the best opportunity to help provide consumers with relief from skyrocketing retrans fees and blackouts. We look forward to working with all four House and Senate committees of jurisdiction for meaningful retransmission consent reform.”