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S 12 Passes Senate <br />on a 73-18 Vote <br />CONTINUED <br />Not unexpectedly, an ebullient <br />Eddie Fritts, president of the Na­ <br />tional Association of Broadcasters, <br />issued a statement saying, ‘The <br />Senate has taken a giant leap to ­ <br />ward ensuring the long-term viabil­ <br />ity of universal free, over-thc-air <br />television. This is a great victory <br />for broadcasters and consumers." <br />Fritts’ remarks echoed com ­ <br />ments made earlier last week by <br />some Senate proponents of S 12 <br />during the debate. They called the <br />alternative package an attempt to <br />gut their bill. The alternative, they <br />said, would do nothing for con ­ <br />sumers or for checking the cable <br />industry's market power. <br />Sen. Howard Metzenbaum (D- <br />Ohio) said the alternative should be <br />called "the Cable Television <br />Monopoly Maintenance Act" <br />Community Antenna Television <br />Association president Steve Effros <br />countered that S 12 is the "Broad­ <br />casting Bailout Bill of 1992." <br />With Senate action completed, the spot ­ <br />light now turns to the House, which has two <br />major cable le-regulation bills pending con­ <br />sideration by the telecommunications sub­ <br />committee. <br />One of the bills, otfered by subcommittee <br />chairman Edward Markey (D-Mass.), is less <br />harsh than S 12. while another, offered by <br />Reps. Dennis Eckart (D-Ohio) and Jim <br />Cooper (D-Tenn.), is more in line witli S 12. <br />Late la.st Friday afternoon. Markey said he <br />intends to schedule a markup of cable leg­ <br />islation within four to six weeks. <br />Some sources believe the cable industry <br />will try to strike a compromise in the Hou.se. <br />where the re-rcguladon issue has gained less <br />momentum and has failed to pick up <br />widespread support among key Republicans <br />who oversee cormnumcaiions policy. <br />Unless the House were to pass a bill iden­ <br />tical to the Senate’s (which congressional <br />sources doubt at this point), chances arc that <br />any package passed by the House, whether <br />it was a cable-designed and administration- <br />backed compromise or not. would head into <br />a conference conunittee. <br />The conference committee would work to <br />resolve differences in the two bills, a process, <br />sources say. in which anything c.«r. hapjvn. <br />Each chamber then votes on the cm r-.iiicc’s <br />product <br />AMENDMENTS TO S 12 <br />Interestingly, two of the amendments <br />adopted to S 12 came from the alternative <br />measure. Sen. Slade Gorton ’.s (R-Wash.) <br />amendmenLs would expand the Cable Act's <br />rural exemption waiver so that telephone <br />companies could automatically build cable <br />systems in areas of 10,000 people and pro ­ <br />hibit cities from granting exclusive cable <br />franchises. <br />Other important amendments adopted <br />were ones from Sen. Trent Lott (R-Miss.) <br />that would allow cable operators to itemize <br />franchise fees and other regulatory <br />costs; Patrick Leahy (D-Vt.) that <br />would require cable convertor boxes <br />to be mote user-friendly; and Gorton. <br />One Gorton amendment would pro ­ <br />hibit cable operators and programmers <br />from using negative-opdon markedng <br />and another would require operators to <br />assign customers personal identifica- <br />don numbers to access their accounts <br />and safeguard their privacy. <br />Sen. Daniel Inouye (D-Hawaii) suc­ <br />cessfully offered amendments that: <br />would give the FCC the authority to <br />make sure that retransmission consent <br />does not lead to “unreasonable" rate <br />increases; and encourage the carriage <br />of minority programming on cable <br />systems. <br />Sen. Jesse Helms (R-N.C.) got <br />through an amendment that would al­ <br />low cable operators to reject the car­ <br />riage of sexually explicit programming <br />on Icased-access channels, require op ­ <br />erators to place such programming on <br />a single channel and to block the channel un­ <br />less a subscriber requests otherwise. <br />Another successful Helms amendment <br />would require cable operators to nodfy sub- <br />scriben when unsolicited X-rated, R-rated <br />and NC-17-raicd movies arc being provided <br />to them free of charge as part of a promodon. <br />Subscribers would be given the right to re­ <br />quest that the charuiel be blocked. <br />The Senate also adopted an amendment <br />from Sen. John Breaux (D-La.) that doesn ’t <br />force cable operators to carry home shopping <br />stations as part of their must-carry obliga­ <br />tions under the bill. <br />Sen. Bob Graham (D-Ra.), whose state js <br />the headquarters of Home Shopping Net­ <br />work, objected to Breaux's amendment. Gra- <br />h.-vn managed to get a provision tacked onto <br />the Breaux amendment to have the FCC de- <br />Icnnine whether home shopping stations arc <br />eligible for must-c.in> sl.iuis ■