S.F. _____ Section 1. NEW SECTION . 553A.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Distributor” means a person who is engaged in the 4 business of making available to subscribers or other customers, 5 for a fee, multiple channels of television programming. 6 “Distributor” includes any buying group of which a distributor 7 is a member, or an agent of a distributor. 8 2. “Price” means the effective net cost to the distributor, 9 calculated on a per subscriber or per customer basis, for 10 permission to transmit the television service in question, 11 taking into account all compensation, agreements not to 12 collect, concessions, or other consideration, whether 13 guaranteed or contingent, directly or indirectly promised to or 14 received by the distributor or any of its affiliates from or 15 on behalf of the programmer and also taking into account all 16 fees and charges imposed upon such distributor or any of its 17 affiliates for such permission. If the distributor and its 18 affiliates pay different fees or charges in different systems 19 or markets for the same television service pursuant to one or 20 more contemporaneous license agreements, then the price shall 21 be the subscriber-weighted average price per subscriber or 22 customer unless use of an average price would be inconsistent 23 with the purposes of this chapter. 24 3. “Programmer” means a person who is engaged in the 25 licensing or sale of television programming to distributors and 26 who owns or operates, or is an affiliate or agent of the owner 27 or operator of, one or more of the following: 28 a. A national broadcast television network. 29 b. Multiple television broadcast stations. 30 c. Two or more nonbroadcast networks, at least one of which 31 was among the fifty highest rated nonbroadcast networks during 32 prime-time hours for any four weeks during the immediately 33 preceding six months. 34 4. “Television service” means programming intended for 35 -1- LSB 6003XC (2) 83 rn/nh 1/ 8

S.F. _____ license for transmission by a distributor, regardless of 1 whether the programming is packaged for viewing on a single 2 television channel as a discrete network, station, or service, 3 or is to be transmitted by the distributor on a pay-per-view, 4 on-demand, or other basis. 5 Sec. 2. NEW SECTION . 553A.2 Prohibited conduct. 6 1. a. A programmer shall not discriminate, either directly 7 or indirectly, in the price it requires to be paid by a 8 distributor for a license or other permission to transmit one 9 or more television services in this state as compared to either 10 of the following: 11 (1) The price paid by any other distributor for a license 12 or other permission to transmit such television service or 13 services in this state. 14 (2) The price paid by any other distributor for a license 15 or other permission to transmit such television service 16 or services in any other state pursuant to any contract or 17 agreement entered into on or after July 1, 2010, or any renewal 18 or extension of any such agreement. 19 b. The prohibition in paragraph “a” shall not prevent the 20 programmer from taking into account differences in transmission 21 technologies and systems or other similar objective differences 22 between distributors when those differences have an actual 23 effect on the programmer’s direct costs in making television 24 services available to a distributor. 25 2. When a programmer, either alone or in combination 26 with one or more of its affiliates, enters into a license, 27 agreement, or arrangement which allows a distributor to 28 transmit two or more television services in this state, the 29 price for each television service must be separately stated 30 in writing. Illegal price discrimination occurs if a price 31 differential not otherwise justifiable under this chapter 32 exists between the price charged to a distributor for any one 33 or any combination of the television services covered by the 34 agreement or arrangement and the price charged to another 35 -2- LSB 6003XC (2) 83 rn/nh 2/ 8

S.F. _____ distributor, as described in subsection 1, paragraph “a” , for 1 such services. 2 3. When a programmer, either alone or in combination 3 with one or more of its affiliates, enters into a license, 4 agreement, or arrangement with a distributor for transmission 5 of one or more television services in this state and 6 contemporaneously enters into a separate transaction or 7 license, agreement, or arrangement which has the effect of 8 reducing the net price paid by the distributor below the level 9 paid by other distributors for permission to transmit the same 10 television services in this state, a prima facie case of price 11 discrimination exists. 12 4. A programmer shall not, either directly or indirectly, 13 through its affiliates or otherwise, give to any distributor 14 that transmits the programmer’s television services in 15 this state, or to any affiliate of any such distributor, an 16 advertising or launch support payment, channel positioning 17 payment or discount, penetration discount or allowance, or 18 similar compensation in exchange for the distributor’s or 19 affiliate’s services, facilities, performance, or achievement 20 relating to the transmission of the programmer’s television 21 services in this state, unless the programmer makes the same 22 type or types of compensation available on equal terms to other 23 distributors who transmit the programmer’s television services 24 in this state. 25 5. A programmer shall not, as a condition to purchasing a 26 license or other permission to transmit one of the programmer’s 27 television services in this state, either directly or 28 indirectly, through unjustifiable price differentials or 29 otherwise, require that a distributor also purchase a license 30 or other permission to transmit one or more additional 31 television services of the programmer or its affiliates, or to 32 dictate the level, package, or tier of distributor services in 33 which any such television service must be included. 34 6. In an action brought for a violation of this section, 35 -3- LSB 6003XC (2) 83 rn/nh 3/ 8

S.F. _____ the programmer shall bear the burden of proving any of the 1 following, as applicable: 2 a. That the programmer experiences actual differences, as 3 described in subsection 1, paragraph “b” , in its direct costs in 4 making television services available to distributors. 5 b. That the contemporaneous transaction or agreement 6 otherwise prohibited under subsection 3 was the result of bona 7 fide, independent negotiation and was not for the purpose of 8 reducing the net price to be paid by the distributor. 9 c. That the programmer makes the types of compensation 10 described in subsection 4 available on equal terms to all 11 distributors who transmit its television services in this 12 state. 13 Sec. 3. NEW SECTION . 553A.3 Disclosure of information. 14 1. Beginning July 1, 2010, a programmer shall not enforce 15 against a distributor any duty of confidentiality regarding 16 the terms and conditions under which the distributor transmits 17 the programmer’s television services in this state, regardless 18 of whether the duty of confidentiality is express or implied, 19 oral or written, or absolute or conditional and, if the duty 20 is written, regardless of whether the duty appears in the same 21 writing that grants the license or permission for transmission 22 or instead appears in an unrelated writing. A contract 23 provision is void if it imposes a duty of confidentiality that 24 cannot be enforced under this subsection. 25 2. When a distributor seeks a license or other permission to 26 transmit television service within this state, the programmer 27 at the request of the distributor shall promptly disclose 28 to the distributor such information, including information 29 relating to or in the possession of the programmer’s 30 affiliates, as is necessary for the distributor to determine 31 whether the terms and conditions being offered by the 32 programmer to the distributor comply with this chapter. 33 Sec. 4. NEW SECTION . 553A.4 Withholding of programming —— 34 prohibition. 35 -4- LSB 6003XC (2) 83 rn/nh 4/ 8

S.F. _____ A person who licenses or otherwise makes available to 1 a television station with a transmitter in this state for 2 broadcast to viewers within this state the satellite or 3 terrestrial feed of a live sporting event or a program that 4 is part of the prime-time programming of a national broadcast 5 network and that is not produced and owned by such station 6 shall not refuse to make such feed available, to the maximum 7 extent permitted by applicable federal law, on reasonable terms 8 to any distributor in this state who does not carry the signal 9 of such television station or does not have a license or other 10 right to provide such telecast to its subscribers or other 11 customers. Any contractual or other prohibition or restriction 12 inconsistent with this section is void. 13 Sec. 5. NEW SECTION . 553A.5 Civil remedies. 14 1. The state or a person who is injured or threatened with 15 injury by conduct prohibited by this chapter may bring suit to 16 prevent or enjoin the prohibited conduct. 17 2. A person who is injured by conduct prohibited by this 18 chapter may recover actual damages resulting from the conduct, 19 and upon a finding that the conduct was willful or flagrant, 20 may recover punitive damages up to three times the amount of 21 actual damages. 22 3. A person other than the state who obtains a remedy 23 under this section may recover its costs of bringing suit and 24 reasonable attorney fees. 25 EXPLANATION 26 This bill prohibits price discrimination in the provision 27 of television services. 28 The bill provides that a programmer shall not discriminate, 29 either directly or indirectly, in the price it requires 30 a distributor to pay for a license or other permission to 31 transmit one or more television services in Iowa, when that 32 price is compared to prices applicable to other distributors. 33 The bill provides, however, that the price established by a 34 programmer can take into account differences in transmission 35 -5- LSB 6003XC (2) 83 rn/nh 5/ 8

S.F. _____ technologies and systems or other similar objective differences 1 between distributors when those differences have an actual 2 effect on the programmer’s direct costs in making television 3 services available. 4 The bill provides that when a programmer enters into a 5 license, agreement, or arrangement which allows a distributor 6 to transmit two or more television services in Iowa, the 7 price for each television service must be separately stated 8 in writing, and that illegal price discrimination will be 9 considered to have occurred if a price differential not 10 otherwise justifiable pursuant to the bill’s provisions exists 11 between the price charged for any one or any combination 12 of the television services and the price charged to other 13 distributors. The bill further provides that when a programmer 14 enters into a license, agreement, or arrangement with a 15 distributor for transmission of one or more television 16 services in Iowa and contemporaneously enters into a separate 17 transaction or license, agreement, or arrangement which has the 18 effect of reducing the net price paid by the distributor below 19 the level paid by other distributors for permission to transmit 20 the same television services in Iowa, a prima facie case of 21 price discrimination will be considered to exist. 22 The bill prohibits a programmer to give to any distributor 23 that transmits the programmer’s television services in Iowa, or 24 to any affiliate, specified payments, discounts, allowances, or 25 compensation in exchange for the distributor’s or affiliate’s 26 services, facilities, performance, or achievement relating to 27 the transmission of the programmer’s television services in 28 Iowa, unless the programmer makes the same type or types of 29 compensation available on equal terms to other distributors. 30 The bill also prohibits a programmer, as a condition to 31 purchasing a license or other permission to transmit one of 32 the programmer’s television services in Iowa from requiring 33 that a distributor also purchase a license or other permission 34 to transmit one or more additional television services of the 35 -6- LSB 6003XC (2) 83 rn/nh 6/ 8

S.F. _____ programmer or its affiliates, or to dictate the level, package, 1 or tier of distributor services in which any television service 2 must be included. 3 The bill states that in an action brought for a violation 4 of the bill’s provisions, the programmer shall bear the burden 5 of proving that the programmer experiences actual differences 6 in its direct costs in making television services available to 7 distributors; that a contemporaneous transaction or agreement 8 otherwise prohibited was the result of bona fide, independent 9 negotiation and was not for the purpose of reducing the net 10 price to be paid by the distributor; and that the programmer 11 makes the types of compensation received available on equal 12 terms to all distributors who transmit its television services 13 in Iowa. 14 Relating to the disclosure of information, the bill states 15 that beginning July 1, 2010, a programmer shall not enforce 16 against a distributor any duty of confidentiality regarding the 17 terms and conditions under which the distributor transmits the 18 programmer’s television services in Iowa, and that a contract 19 provision is void if it imposes a duty of confidentiality 20 that cannot be enforced. Additionally, the bill states that 21 when a distributor seeks a license or other permission to 22 transmit television programming in Iowa, the programmer at 23 the request of the distributor shall promptly disclose to 24 the distributor information as necessary for the distributor 25 to determine whether the terms and conditions being offered 26 by the programmer to the distributor comply with the bill’s 27 provisions. 28 The bill provides that a person who licenses or otherwise 29 makes available to a television station with a transmitter in 30 Iowa for broadcast to Iowa viewers the satellite or terrestrial 31 feed of a live sporting event or a program that is part of the 32 prime-time programming of a national broadcast network and that 33 is not produced and owned by the station shall not refuse to 34 make the feed available, to the maximum extent permitted by 35 -7- LSB 6003XC (2) 83 rn/nh 7/ 8

S.F. _____ applicable federal law, on reasonable terms to any distributor 1 in Iowa who does not carry the signal of the television station 2 or does not have a license or other right to provide the 3 telecast to its subscribers or other customers. The bill 4 adds that any contractual or other prohibition or restriction 5 inconsistent with this prohibition shall be considered void. 6 Regarding penalties, the bill states that the state of Iowa 7 or a person who is injured or threatened with injury by conduct 8 prohibited under the bill may bring suit to prevent or enjoin 9 the prohibited conduct, and that a person who is injured by 10 prohibited conduct may recover actual damages resulting from 11 the conduct, and upon a finding that the conduct was willful 12 or flagrant, punitive damages up to three times the amount of 13 actual damages. Provision is also made for recovery of court 14 costs and attorney fees by a person bringing suit other than 15 the state. 16 -8- LSB 6003XC (2) 83 rn/nh 8/ 8