[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3626 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3626

  To supersede the Modification of Final Judgment entered August 24, 
1982, in the antitrust action styled United States v. Western Electric, 
Civil Action No. 82-0192, United States District Court for the District 
 of Columbia; to amend the Communications Act of 1934 to regulate the 
   manufacturing of Bell operating companies, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 22, 1993

Mr. Brooks (for himself and Mr. Dingell) introduced the following bill; 
   which was referred jointly to the Committees on the Judiciary and 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
  To supersede the Modification of Final Judgment entered August 24, 
1982, in the antitrust action styled United States v. Western Electric, 
Civil Action No. 82-0192, United States District Court for the District 
 of Columbia; to amend the Communications Act of 1934 to regulate the 
   manufacturing of Bell operating companies, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLES.

    (a) Title I.--Title I of this Act may be cited as the ``Antitrust 
Reform Act of 1993''.
    (b) Title II.--Title II of this Act may be cited as the 
Communications Reform Act of 1993''.

      TITLE I--SUPERSESSION OF THE MODIFICATION OF FINAL JUDGMENT

SEC. 101. AUTHORIZATION FOR BELL OPERATING COMPANY TO ENTER COMPETITIVE 
              LINES OF BUSINESS.

    (a) Application.--
            (1) In general.--After the applicable date specified in 
        paragraph (2), a Bell operating company may apply 
        simultaneously to the Attorney General and the Federal 
        Communications Commission for authorization, notwithstanding 
        the Modification of Final Judgment--
                    (A) to provide alarm monitoring services, or
                    (B) to provide interexchange telecommunications.
        The application shall describe with particularity the nature 
        and scope of each activity, and of each product market or 
        service market, and each geographic market, for which 
        authorization is sought.
            (2) Applicable dates.--For purposes of paragraph (1), the 
        applicable date after which a Bell operating company may apply 
        for authorization shall be--
                    (A) the date of enactment of this Act, with respect 
                to--
                            (i) engaging in any activity described in 
                        subparagraph (B), (C), or (D), to the extent, 
                        with respect to each market to which the 
                        activity relates, that there exists no actual 
                        or potential competition,
                            (ii) offering of a service described in 
                        subsection (b)(3)(D)(iii),
                            (iii) providing, through transmission 
                        facilities owned by such company, of interstate 
                        interexchange telecommunications that originate 
                        and terminate in exchange areas in which the 
                        Bell operating company, or an affiliate (as of 
                        November 21, 1993) of such company that is a 
                        Bell operating company, provided telephone 
                        exchange service as of November 21, 1993,
                    (B) except to the extent that an earlier date is 
                available under subparagraph (A), the date that occurs 
                18 months after the date of enactment of this Act, with 
                respect to providing interexchange telecommunications 
                through the acquisition and resale of 
                telecommunications services,
                    (C) except to the extent that an earlier date is 
                available under subparagraph (A) or (B), the date that 
                occurs 60 months after the date of enactment of this 
                Act, with respect to providing any interstate 
                telecommunications, and
                    (D) the date that occurs 66 months after the date 
                of enactment of this Act, with respect to providing 
                alarm monitoring services.
            (3) Interagency notification.--Whenever the Attorney 
        General or the Federal Communications Commission receives an 
        application made under paragraph (1), the recipient of the 
        application shall notify the other of such receipt.
            (4) Publication.--Not later than 10 days after receiving an 
        application made under paragraph (1), the Attorney General and 
        the Federal Communications Commission jointly shall publish the 
        application in the Federal Register.
    (b) Separate Determinations by the Attorney General and the Federal 
Communications Commission.--
            (1) Comment period.--Not later than 45 days after the 
        application is published under subsection (a)(4), interested 
        persons may submit comments to the Attorney General, to the 
        Federal Communications Commission, or to both regarding the 
        application. Submitted comments shall be available to the 
        public.
            (2) Interagency consultation.--Before making their 
        respective determinations under paragraph (3), the Attorney 
        General and the Federal Communications Commission shall consult 
        with each other regarding the application involved.
            (3) Determinations.--(A) After the time for comment under 
        paragraph (1) has expired, but not later than 180 days after 
        the application is received under subsection (a)(1), the 
        Attorney General and the Federal Communications Commission each 
        shall issue separately a written determination, on the record 
        after an opportunity for a hearing, with respect to granting 
        the authorization for which the Bell operating company has 
        applied.
            (B) Such determination shall be based on clear and 
        convincing evidence.
            (C) A person who might be injured in its business or 
        property as a result of the approval of the authorization 
        requested shall be permitted to participate as a party in the 
        proceeding on which the determination is based.
            (D)(i) The Attorney General shall approve the granting of 
        the authorization requested in the application only to the 
        extent that the Attorney General finds that there is no 
        substantial possibility that such company or its affiliates 
        could use monopoly power to impede competition in the market 
        such company seeks to enter. The Attorney General shall deny 
        the remainder of the requested authorization.
            (ii) The Federal Communications Commission shall approve 
        the granting of the requested authorization only to the extent 
        that the Commission finds that granting such request is 
        consistent with the public interest, convenience, and 
        necessity. The Commission shall deny the remainder of the 
        requested authorization.
            (iii) Notwithstanding clauses (i) and (ii), within 180 days 
        after the date of enactment of this Act, the Attorney General 
        and the Federal Communications Commission shall jointly 
        prescribe regulations to establish procedures and criteria for 
        the expedited determination and approval of applications for 
        proposed interexchange telecommunications services that are 
        incidental to the provision of another service which the Bell 
        operating company may lawfully provide.
            (E) In making any determination under subparagraph (D)(ii) 
        of the public interest, convenience, and necessity, the 
        Commission shall take into account--
                    (i) the probability that approval of the requested 
                authorization will secure reduced rates for consumers 
                of the services that are the subject of the 
                application, especially residential subscribers,
                    (ii) whether approval of the requested 
                authorization will result in increases in rates for 
                consumers of exchange service,
                    (iii) the extent to which approval of the requested 
                authorization will expedite the delivery of new 
                services and products to consumers,
                    (iv) the extent to which the Commission's 
                regulations will preclude the applicant from engaging 
                in predatory pricing or other coercive economic 
                practices with respect to the services that are the 
                subject of the application,
                    (v) the extent to which approval of the requested 
                authorization would permit collusive acts or practices 
                between or among Bell operating companies that are not 
                affiliates of each other,
                    (vi) whether approval of the requested 
                authorization will result, directly or indirectly, in 
                increasing concentration among providers of the service 
                that is the subject of the application to such an 
                extent that consumers will not be protected from rates 
                that are unjust or unreasonable or that are unjustly or 
                unreasonably discriminatory, and
                    (vii) in the case of an application to provide 
                alarm monitoring services, whether the Commission has 
                the capability to enforce effectively the regulations 
                established pursuant to section 230 of the 
                Communications Act of 1934 as added by this Act.
            (F) A determination that approves the granting of any part 
        of a requested authorization shall describe with particularity 
        the nature and scope of each activity, and of each product 
        market or service market, and each geographic market, to which 
        approval applies.
            (4) Publication.--Not later than 10 days after issuing a 
        determination under paragraph (3), the Attorney General or the 
        Federal Communications Commission, as the case may be, shall 
        publish in the Federal Register a brief description of the 
        determination.
            (5) Finality.--A determination made under paragraph (3) 
        shall be final unless a civil action with respect to such 
        determination is timely commenced under subsection (c)(1).
            (6) Authorization granted.--Subject to paragraph (7), a 
        requested authorization is granted to the extent that--
                    (A)(i) both the Attorney General and the Federal 
                Communications Commission approved under paragraph (3) 
                the granting of the authorization, and
                    (ii) neither of their approvals is vacated or 
                reversed as a result of judicial review authorized by 
                subsection (c), or
                    (B) as a result of such judicial review of either 
                or both determinations, both the Attorney General and 
                the Federal Communications Commission approve the 
                granting of the requested authorization.
    (c) Judicial Review.--
            (1) Civil action.--Not later than 45 days after a 
        determination by the Attorney General or the Federal 
        Communications Commission is published under subsection (b)(4), 
        the Bell operating company that applied to the Attorney General 
        and the Federal Communications Commission under subsection (a), 
        or any person who might be injured in its business or property 
        as a result of the determination regarding such company's 
        engaging in the activity described in such company's 
        application, may commence a civil action against the Attorney 
        General or the Federal Communications Commission, as the case 
        may be, in the United States Court of Appeals for the District 
        of Columbia for review of the determination regarding the 
        application.
            (2) Certification of record.--As part of the answer to the 
        complaint, the Attorney General or the Federal Communications 
        Commission, as the case may be, shall file in such court a 
        certified copy of the record upon which the determination is 
        based.
            (3) Consolidation of actions.--The court shall consolidate 
        for review all civil actions commenced under this subsection 
        with respect to the application.
            (4) Judgment.--(A) The court shall enter a judgment after 
        reviewing the determination in accordance with section 706 of 
        title 5 of the United States Code.
            (B) A judgment--
                    (i) affirming the part of the determination that 
                approves granting all or part of the requested 
                authorization, or
                    (ii) reversing the part of the determination that 
                denies all or part of the requested authorization,
        shall describe with particularity the nature and scope of each 
        activity, and of each product market or service market, and 
        each geographic market, to which the affirmance or reversal 
        applies.

SEC. 102. AUTHORIZATION AS PREREQUISITE.

    (a) Prerequisite.--Until a Bell operating company is so authorized 
in accordance with section 101, it shall be unlawful for such company, 
directly or through an affiliated enterprise, to engage in an activity 
described in section 101(a)(1).
    (b) Exceptions.--Subsection (a) shall not prohibit a Bell operating 
company from engaging, at any time after the date of enactment of this 
Act--
            (1) in any activity as authorized by an order entered by 
        the United States District Court for the District of Columbia 
        pursuant to section VIII(C) of the Modification of Final 
        Judgment, if--
                    (A) such order was entered on or before the date of 
                the enactment of this Act, or
                    (B) a request for such authorization was pending 
                before such court on the date of the enactment of this 
                Act,
            (2) in providing interexchange telecommunications on an 
        intrastate basis if, after the date of enactment of this Act, 
        such telecommunications have been approved by, or are 
        authorized under the laws of, the State involved, and public 
        notice of the availability of such authority has occurred at 
        least 60 days before the offering of such interexchange 
        telecommunications, or
            (3) in providing interexchange telecommunications through 
        the purchase and resale of telecommunications services obtained 
        from a person who is not an affiliate of such company if--
                    (A) such interexchange telecommunications originate 
                in any State that, after the date of the enactment of 
                this Act, approves or authorizes persons that are not 
                affiliates of such company to provide intraexchange 
                toll telecommunications services in such a manner that 
                customers in such State have the ability to route 
                automatically, without the use of any access code, 
                their intraexchange toll telecommunications to the 
                telecommunications services provider of the customer's 
                designation from among 2 or more telecommunications 
                services providers (including such company), and
                    (B) not less than 45 days before such company so 
                provides such interexchange telecommunications--
                            (i) such company gives public notice of the 
                        availability of such approval or authorization, 
                        and
                            (ii) the Attorney General fails to commence 
                        a civil action to enjoin such company from so 
                        providing such interexchange 
                        telecommunications.

SEC. 103. LIMITATIONS ON MANUFACTURING AND PROVIDING EQUIPMENT.

    (a) Absolute Limitation.--Until the expiration of the 1-year period 
beginning on the date of the enactment of this Act, it shall be 
unlawful for a Bell operating company, directly or through an 
affiliated enterprise, to manufacture or provide telecommunications 
equipment, or to manufacture customer premises equipment.
    (b) Qualified Limitation.--
            (1) Required conditions.--After the expiration of the 1-
        year period beginning on the date of the enactment of this Act, 
        it shall be lawful for a Bell operating company, directly or 
        through an affiliated enterprise, to manufacture or provide 
        telecommunications equipment, or to manufacture customer 
        premises equipment, if--
                    (A) such company submits to the Attorney General 
                the notification described in paragraph (2) and such 
                additional material and information described in such 
                paragraph as the Attorney General may request, and 
                complies with the waiting period specified in paragraph 
                (3), and
                    (B) before the expiration of the waiting period 
                specified in paragraph (3)--
                            (i) the Attorney General fails to commence 
                        a civil action to enjoin such company from 
                        engaging in the activity described in such 
                        notification, or
                            (ii) the Attorney General notifies such 
                        company that for purposes of this subsection 
                        the Attorney General does not intend to 
                        commence such civil action before the 
                        expiration of such waiting period.
            (2) Notification.--The notification required by paragraph 
        (1) shall be in such form and shall contain such documentary 
        material and information relevant to the proposed activity as 
        is necessary and appropriate for the Attorney General to 
        determine whether there is no substantial possibility that such 
        company or its affiliates could use monopoly power to impede 
        competition in the market such company seeks to enter for such 
        activity.
            (3) Waiting period.--The waiting period referred to in 
        paragraph (1) is the 1-year period beginning on the date the 
        notification required by such paragraph is received by the 
        Attorney General.
            (4) Civil action.--Not later than 1 year after receiving a 
        notification required by paragraph (1), the Attorney General 
        may commence a civil action an appropriate district court of 
        the United States to enjoin the Bell operating company from 
        engaging in the activity described in such notification.
    (c) Exception for Previously Authorized Activities.--Subsections 
(a) and (b) shall not prohibit a Bell operating company from engaging, 
at any time after the date of enactment of this Act, in any activity as 
authorized by an order entered by the United States District Court for 
the District of Columbia pursuant to section VIII(C) of the 
Modification of Final Judgment, if--
            (1) such order was entered on or before the date of the 
        enactment of this Act, or
            (2) a request for such authorization was pending before 
        such court on the date of the enactment of this Act.

SEC. 104. ANTICOMPETITIVE TYING ARRANGEMENTS.

    A Bell operating company with monopoly power in any exchange 
service market shall not tie (directly or indirectly) in any relevant 
market the sale of any product or service to the provision of any 
telecommunications service, if the effect of such tying may be to 
substantially lessen competition, or to tend to create monopoly, in any 
line of commerce.

SEC. 105. ENFORCEMENT.

    (a) Equitable Powers of United States Attorneys.--It shall be the 
duty of the several United States attorneys, under the direction of the 
Attorney General, to institute proceedings in equity in their 
respective districts to prevent and restrain violations of this Act.
    (b) Criminal Liability.--Whoever knowingly engages or knowingly 
attempts to engage in an activity that is prohibited by section 102, 
103, or 104 shall be guilty of a felony, and on conviction thereof, 
shall be punished to the same extent as a person is punished upon 
conviction of a violation of section 1 of the Sherman Act (15 U.S.C. 
1).
    (c) Private Right of Action.--Any person who is injured in its 
business or property by reason of a violation of this Act--
            (1) may bring a civil action in any district court of the 
        United States in the district in which the defendant resides or 
        is found or has an agent, without respect to the amount in 
        controversy, and
            (2) shall recover threefold the damages sustained, and the 
        cost of suit (including a reasonable attorney's fee).
The court may award under this section, pursuant to a motion by such 
person promptly made, simple interest on actual damages for the period 
beginning on the date of service of such person's pleading setting 
forth a claim under this Act and ending on the date of judgment, or for 
any shorter period therein, if the court finds that the award of such 
interest for such period is just in the circumstances.
    (d) Private Injunctive Relief.--Any person shall be entitled to sue 
for and have injunctive relief, in any court of the United States 
having jurisdiction over the parties, against threatened loss or damage 
by a violation of this Act, when and under the same conditions and 
principles as injunctive relief is available under section 16 of the 
Clayton Act (15 U.S.C. 26). In any action under this subsection in 
which the plaintiff substantially prevails, the court shall award the 
cost of suit, including a reasonable attorney's fee, to such plaintiff.
    (e) Jurisdiction.--(1) Subject to paragraph (2), the courts of the 
United States shall have exclusive jurisdiction to make determinations 
with respect to a duty, claim, or right arising under this Act, other 
than determinations authorized to be made by the Attorney General and 
the Federal Communications Commission under section 101(b)(3).
    (2) The United States Court of Appeals for the District of Columbia 
shall have exclusive jurisdiction to review determinations made under 
section 101(b)(3).
    (3) No action commenced to assert or enforce a duty, claim, or 
right arising under this Act shall be stayed pending any such 
determination by the Attorney General or the Federal Communications 
Commission.
    (f) Subpoenas.--In an action commenced under this Act, a subpoena 
requiring the attendance of a witness at a hearing or a trial may be 
served at any place within the United States.

SEC. 106. DEFINITIONS.

    For purposes of this Act:
            (1) Affiliate.--The term ``affiliate'' means a person that 
        (directly or indirectly) owns or controls, is owned or 
        controlled by, or is under common ownership or control with, 
        another person. For purposes of this paragraph, to own refers 
        to owning an equity interest (or the equivalent thereof) of 
        more than 50 percent.
            (2) Alarm monitoring services.--The term ``alarm monitoring 
        services'' means services that detect threats to life, safety, 
        or property, by burglary, fire, vandalism, bodily injury, or 
        other emergency, through the use of devices that transmit 
        signals to a central point in a customer's residence, place of 
        business, or other fixed premises which--
                    ``(A) retransmits such signals to a remote 
                monitoring center by means of telephone exchange 
                service facilities, and
                    ``(B) serves to alert persons at the monitoring 
                center of the need to inform police, fire, rescue, or 
                other security or public safety personnel of the threat 
                at such premises.
        Such term does not include medical monitoring devices attached 
        to individuals for the automatic surveillance of ongoing 
        medical conditions.
            (3) Antitrust laws.--The term ``antitrust laws'' has the 
        meaning given it in subsection (a) of the first section of the 
        Clayton Act (15 U.S.C. 12(a)), except that such term includes 
        the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), 
        commonly known as the Robinson Patman Act, and section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45) to the extent that 
        such section 5 applies to monopolies, attempts to monopolize, 
        and unlawful restraints of trade.
            (4) Bell operating company.--The term ``Bell operating 
        company'' means--
                    (A) Bell Telephone Company of Nevada, Illinois Bell 
                Telephone Company, Indiana Bell Telephone Company, 
                Incorporated, Michigan Bell Telephone Company, New 
                England Telephone and Telegraph Company, New Jersey 
                Bell Telephone Company, New York Telephone Company, US 
                West Communications Company, South Central Bell 
                Telephone Company, Southern Bell Telephone and 
                Telegraph Company, Southwestern Bell Telephone Company, 
                The Bell Telephone Company of Pennsylvania, The 
                Chesapeake and Potomac Telephone Company, The 
                Chesapeake and Potomac Telephone Company of Maryland, 
                The Chesapeake and Potomac Telephone Company of 
                Virginia, The Chesapeake and Potomac Telephone Company 
                of West Virginia, The Diamond State Telephone Company, 
                The Ohio Bell Telephone Company, The Pacific Telephone 
                and Telegraph Company, or Wisconsin Telephone Company, 
                or
                    (B) any successor or assign of any such company.
            (5) Customer premises equipment.--The term ``customer 
        premises equipment'' means equipment employed on the premises 
        of a person (other than a person engaged in the business of 
        providing a telecommunications service) to originate, route, or 
        terminate telecommunications, and includes software relating to 
        such equipment.
            (6) Electronic publishing.--The term ``electronic 
        publishing'' means the provision via telecommunications, by a 
        Bell operating company or an affiliate of such company to a 
        person other than an affiliate of such company, of 
        information--
                    (A) which such company or affiliate has, or has 
                caused to be, originated, authored, compiled, 
                collected, or edited, or
                    (B) in which such company or affiliate has a direct 
                or indirect financial or proprietary interest.
            (7) Exchange area.--The term ``exchange area'' means a 
        contiguous geographic area established by a Bell operating 
        company such that no exchange area includes points within more 
        than 1 metropolitan statistical area, consolidated metropolitan 
        statistical area, or State, except as expressly permitted under 
        the Modification of Final Judgment before the date of the 
        enactment of this Act.
            (8) Exchange access.--The term ``exchange access'' means 
        exchange services provided for the purpose of originating or 
        terminating interexchange telecommunications.
            (9) Exchange service.--The term ``exchange service'' means 
        a telecommunications service provided within an exchange area.
            (10) Information.--The term ``information'' means knowledge 
        or intelligence represented by any form of writing, signs, 
        signals, pictures, sounds, or other symbols.
            (11) Interexchange telecommunications.--The term 
        ``interexchange telecommunications'' means telecommunications 
        between a point located in an exchange area and a point located 
        outside such exchange area. Such term does not include alarm 
        monitoring services or electronic publishing.
            (12) Modification of final judgment.--The term 
        ``Modification of Final Judgment'' means the order entered 
        August 24, 1982, in the antitrust action styled United States 
        v. Western Electric, Civil Action No. 82-0192, in the United 
        States District Court for the District of Columbia, and 
        includes any judgment or order with respect to such action 
        entered on or after August 24, 1982.
            (13) Person.--The term ``person'' has the meaning given it 
        in subsection (a) of the first section of the Clayton Act (15 
        U.S.C. 12(a)).
            (14) Telecommunications.--The term ``telecommunications'' 
        means the transmission of information between points by 
        electromagnetic means.
            (15) Telecommunications equipment.--The term 
        ``telecommunications equipment'' means equipment, other than 
        customer premises equipment, used to provide a 
        telecommunications service, and includes software relating to 
        such equipment.
            (16) Telecommunications service.--The term 
        ``telecommunications service'' means the offering for hire of 
        transmission facilities or of telecommunications by means of 
        such facilities. Such term does not include alarm monitoring 
        services or electronic publishing.
            (17) Transmission facilities.--The term ``transmission 
        facilities'' means equipment (including wire, cable, microwave, 
        satellite, and fiber-optics) that transmits information by 
        electromagnetic means or that directly supports such 
        transmission, but does not include customer premises equipment.

SEC. 107. RELATIONSHIP TO OTHER LAWS.

    (a) Modification of Final Judgment.--This Act shall supersede the 
Modification of Final Judgment, except that this Act shall not affect--
            (1) section I of the Modification of Final Judgment, 
        relating to AT&T reorganization,
            (2) section II(A) (including Appendix B) and II(B) of the 
        Modification of Final Judgment, relating to equal access and 
        nondiscrimination,
            (3) section IV(F) and IV(I) of the Modification of Final 
        Judgment, with respect to the requirements included in the 
        definitions of ``exchange access'' and ``information access'',
            (4) section VIII(B) of the Modification of Final Judgment, 
        relating to printed advertising directories,
            (5) section VIII(E) of the Modification of Final Judgment, 
        relating to notice to customers of AT&T,
            (6) section VIII(F) of the Modification of Final Judgment, 
        relating to less than equal exchange access,
            (7) section VIII(G) of the Modification of Final Judgment, 
        relating to transfer of AT&T assets, including all exceptions 
        granted thereunder before the date of the enactment of this 
        Act,
            (8) with respect to the parts of the Modification of Final 
        Judgment described in paragraphs (1) through (7)--
                    (A) section III of the Modification of Final 
                Judgment, relating to applicability,
                    (B) section IV of the Modification of Final 
                Judgment, relating to definitions,
                    (C) section V of the Modification of Final 
                Judgment, relating to compliance,
                    (D) section VI of the Modification of Final 
                Judgment, relating to visitorial provisions,
                    (E) section VII of the Modification of Final 
                Judgment, relating to retention of jurisdiction, and
                    (F) section VIII(I) of the Modification of Final 
                Judgment, relating to the court's sua sponte authority.
    (b) Antitrust Laws.--Nothing in this Act shall be construed to 
modify, impair, or supersede the applicability of any other antitrust 
law.
    (c) Federal, State, and Local Law.--(1) Except as provided in 
paragraph (2), this Act shall not be construed to modify, impair, or 
supersede Federal, State, or local law unless expressly so provided in 
this Act.
    (2) This Act shall supersede State and local law to the extent that 
such law would impair or prevent the operation of this Act.
    (d) Cumulative Penalty.--Any penalty imposed, or relief granted, 
under this Act shall be in addition to, and not in lieu of, any penalty 
or relief authorized by any other law to be imposed with respect to 
conduct described in this Act.

SEC. 108. AMENDMENT TO DEFINITION OF ANTITRUST LAWS APPEARING IN THE 
              CLAYTON ACT.

    Subsection (a) of the first section of the Clayton Act (15 U.S.C. 
12(a)) is amended by inserting ``the Antitrust Reform Act of 1993;'' 
after ``thirteen;''.

 TITLE II--REGULATION OF MANUFACTURING, ALARM SERVICES AND ELECTRONIC 
                 PUBLISHING BY BELL OPERATING COMPANIES

SEC. 201. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end the following new section:

``SEC. 229. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.

    ``(a) General Authority.--Subject to the requirements of this 
section and the regulations prescribed thereunder, but notwithstanding 
any restriction or obligation imposed before the date of enactment of 
this section pursuant to the Modification of Final Judgment on the 
lines of business in which a Bell operating company may engage, a Bell 
operating company, through an affiliate of that company, may 
manufacture and provide telecommunications equipment and manufacture 
customer premises equipment.
    ``(b) Separate Manufacturing Affiliate.--Any manufacturing or 
provision authorized under subsection (a) shall be conducted only 
through an affiliate that is separate from any Bell operating company.
    ``(c) Commission Regulation of Manufacturing Affiliate.--
            ``(1) Regulations required.--The Commission shall prescribe 
        regulations to ensure that Bell operating companies and their 
        affiliates comply with the requirements of this section.
            ``(2) Books, records, accounts.--A manufacturing affiliate 
        required by subsection (b) shall maintain books, records, and 
        accounts separate from its affiliated Bell operating company 
        which identify all financial transactions between the 
        manufacturing affiliate and its affiliated Bell operating 
        company and, even if such manufacturing affiliate is not a 
        publicly held corporation, prepare financial statements which 
        are in compliance with financial reporting requirements under 
        the Federal securities laws for publicly held corporations, 
        file such statements with the Commission, and make such 
        statements available for public inspection.
            ``(3) In-kind benefits to affiliate.--Consistent with the 
        provisions of this section, neither a Bell operating company 
        nor any of its nonmanufacturing affiliates shall perform sales, 
        advertising, installation, production, or maintenance 
        operations for a manufacturing affiliate, except that--
                    ``(A) a Bell operating company and its 
                nonmanufacturing affiliates may sell, advertise, 
                install, and maintain telecommunications equipment and 
                customer premises equipment after acquiring such 
                equipment from their manufacturing affiliate; and
                    ``(B) institutional advertising, of a type not 
                related to specific telecommunications equipment, 
                carried out by the Bell operating company or its 
                affiliates, shall be permitted.
            ``(4) Domestic manufacturing required.--
                    ``(A) General rule.--A manufacturing affiliate 
                required by subsection (b) shall conduct all of its 
                manufacturing within the United States and, except as 
                otherwise provided in this paragraph, all component 
                parts of customer premises equipment manufactured by 
                such affiliate, and all component parts of 
                telecommunications equipment manufactured by such 
                affiliate, shall have been manufactured within the 
                United States.
                    ``(B) Exception.--Such affiliate may use component 
                parts manufactured outside the United States if--
                            ``(i) such affiliate first makes a good 
                        faith effort to obtain equivalent component 
                        parts manufactured within the United States at 
                        reasonable prices, terms, and conditions; and
                            ``(ii) for the aggregate of 
                        telecommunications equipment and customer 
                        premises equipment manufactured and sold in the 
                        United States by such affiliate, the cost of 
                        the components manufactured outside the United 
                        States contained in all such equipment does not 
                        exceed 40 percent of the sales revenue derived 
                        in any calendar year from such equipment.
                    ``(C) Certification required.--Any such affiliate 
                that uses component parts manufactured outside the 
                United States in the manufacture of telecommunications 
                equipment and customer premises equipment within the 
                United States shall--
                            ``(i) certify to the Commission that a good 
                        faith effort was made to obtain equivalent 
                        parts manufactured within the United States at 
                        reasonable prices, terms, and conditions, which 
                        certification shall be filed on a quarterly 
                        basis with the Commission and list component 
                        parts, by type, manufactured outside the United 
                        States; and
                            ``(ii) certify to the Commission on an 
                        annual basis that such affiliate complied with 
                        the requirements of subparagraph (B)(ii), as 
                        adjusted in accordance with subparagraph (G).
                    ``(D) Remedies for failures.--(i) If the Commission 
                determines, after reviewing the certification required 
                in subparagraph (C)(i), that such affiliate failed to 
                make the good faith effort required in subparagraph 
                (B)(i) or, after reviewing the certification required 
                in subparagraph (C)(ii), that such affiliate has 
                exceeded the percentage specified in subparagraph 
                (B)(ii), the Commission may impose penalties or 
                forfeitures as provided for in title V of this Act.
                    ``(ii) Any supplier claiming to be damaged because 
                a manufacturing affiliate failed to make the good faith 
                effort required in subparagraph (B)(i) may make 
                complaint to the Commission as provided for in section 
                208 of this Act, or may bring suit for the recovery of 
                actual damages for which such supplier claims such 
                affiliate may be liable under the provisions of this 
                Act in any district court of the United States of 
                competent jurisdiction.
                    ``(E) Annual report.--The Commission, in 
                consultation with the Secretary of Commerce, shall, on 
                an annual basis, determine the cost of component parts 
                manufactured outside the United States contained in all 
                telecommunications equipment and customer premises 
                equipment sold in the United States as a percentage of 
                the revenues from sales of such equipment in the 
                previous calendar year.
                    ``(F) Use of intellectual property in 
                manufacture.--Notwithstanding subparagraph (A), a 
                manufacturing affiliate may use intellectual property 
                created outside the United States in the manufacture of 
                telecommunications equipment and customer premises 
                equipment in the United States. A component 
                manufactured using such intellectual property shall not 
                be treated for purposes of subparagraph (B)(ii) as a 
                component manufactured outside the United States solely 
                on the basis of the use of such intellectual property.
                    ``(G) Restrictions on commission authority.--The 
                Commission may not waive or alter the requirements of 
                this paragraph, except that the Commission, on an 
                annual basis, shall adjust the percentage specified in 
                subparagraph (B)(ii) to the percentage determined by 
                the Commission, in consultation with the Secretary of 
                Commerce, pursuant to subparagraph (E).
            ``(5) Insulation of rate payers from manufacturing 
        affiliate debt.--Any debt incurred by any such manufacturing 
        affiliate may not be issued by its affiliated Bell operating 
        company and such manufacturing affiliate shall be prohibited 
        from incurring debt in a manner that would permit a creditor, 
        on default, to have recourse to the assets of its affiliated 
        Bell operating company.
            ``(6) Relation to other affiliates.--A manufacturing 
        affiliate required by subsection (b) shall not be required to 
        operate separately from the other affiliates of its affiliated 
        Bell operating company, but if an affiliate of a Bell operating 
        company becomes affiliated with a manufacturing entity, such 
        affiliate shall be treated as a manufacturing affiliate of that 
        Bell operating company and shall comply with the requirements 
        of this section.
            ``(7) Availability of equipment to other carriers.--A 
        manufacturing affiliate required by subsection (b) shall make 
        available, without discrimination or self-preference as to 
        price, delivery, terms, or conditions, to any common carrier 
        any telecommunications equipment that is used in the provision 
        of telephone exchange service and that is manufactured by such 
        affiliate so long as each such purchasing carrier--
                    ``(A) does not either manufacture 
                telecommunications equipment, or have an affiliated 
                telecommunications equipment manufacturing entity; or
                    ``(B) agrees to make available, to the Bell 
                operating company affiliated with such manufacturing 
                affiliate or any common carrier affiliate of such Bell 
                operating company, any telecommunications equipment 
                that is used in the provision of telephone exchange 
                service and that is manufactured by such purchasing 
                carrier or by any entity or organization with which 
                such purchasing carrier is affiliated.
            ``(8) Sales practices of manufacturing affiliates.--
                    ``(A) Prohibition of discontinuation of equipment 
                for which there is reasonable demand.--A manufacturing 
                affiliate required by subsection (b) shall not 
                discontinue or restrict sales to a common carrier of 
                any telecommunications equipment that is used in the 
                provision of telephone exchange service and that such 
                affiliate manufactures for sale as long as there is 
                reasonable demand for the equipment by such carriers; 
                except that such sales may be discontinued or 
                restricted if such manufacturing affiliate demonstrates 
                to the Commission that it is not making a profit, under 
                a marginal cost standard implemented by the Commission 
                by regulation, on the sale of such equipment.
                    ``(B) Determinations of reasonable demand.--Within 
                60 days after receipt of an application under 
                subparagraph (A), the Commission shall reach a 
                determination as to the existence of reasonable demand 
                for purposes of such subparagraph. In making such 
                determination the Commission shall consider--
                            ``(i) whether the continued manufacture of 
                        the equipment will be profitable;
                            ``(ii) whether the equipment is 
                        functionally or technologically obsolete;
                            ``(iii) whether the components necessary to 
                        manufacture the equipment continue to be 
                        available;
                            ``(iv) whether alternatives to the 
                        equipment are available in the market; and
                            ``(v) such other factors as the Commission 
                        deems necessary and proper.
            ``(9) Joint planning obligations.--Each Bell operating 
        company shall, consistent with the antitrust laws, engage in 
        joint network planning and design with other contiguous common 
        carriers providing telephone exchange service, but agreement 
        with such other carriers shall not be required as a 
        prerequisite for such introduction or deployment.
    ``(d) Information Requirements.--
            ``(1) Filing of information on protocols and technical 
        requirements.--Each Bell operating company shall, in accordance 
        with regulations prescribed by the Commission, maintain and 
        file with the Commission full and complete information with 
        respect to the protocols and technical requirements for 
        connection with and use of its telephone exchange service 
        facilities. Each such company shall report promptly to the 
        Commission any material changes or planned changes to such 
        protocols and requirements, and the schedule for implementation 
        of such changes or planned changes.
            ``(2) Filing as prerequisite to disclosure to affiliate.--A 
        Bell operating company shall not disclose to any of its 
        affiliates any information required to be filed under paragraph 
        (1) unless that information is filed promptly, as required by 
        regulation by the Commission.
            ``(3) Access by competitors to information.--The Commission 
        may prescribe such additional regulations under this subsection 
        as may be necessary to ensure that manufacturers in competition 
        with a Bell operating company's manufacturing affiliate have 
        access to the information with respect to the protocols and 
        technical requirements for connection with and use of its 
        telephone exchange service facilities required for such 
        competition that such company makes available to its 
        manufacturing affiliate.
            ``(4) Planning information.--Each Bell operating company 
        shall provide, to contiguous common carriers providing 
        telephone exchange service, timely information on the planned 
        deployment of telecommunications equipment.
    ``(e) Additional Competition Requirements.--The Commission shall 
prescribe regulations requiring that any Bell operating company which 
has an affiliate that engages in any manufacturing authorized by 
subsection (a) shall--
            ``(1) provide, to other manufacturers of telecommunications 
        equipment and customer premises equipment that is functionally 
        equivalent to equipment manufactured by the Bell operating 
        company manufacturing affiliate, opportunities to sell such 
        equipment to such Bell operating company which are comparable 
        to the opportunities which such Company provides to its 
        affiliates; and
            ``(2) not subsidize its manufacturing affiliate with 
        revenues from telephone exchange service or telephone toll 
        service.
    ``(f) Collaboration Permitted.--Nothing in this section (other than 
subsection (m)) shall be construed to limit or restrict the ability of 
a Bell operating company and its affiliates to engage in close 
collaboration with any manufacturer of customer premises equipment or 
telecommunications equipment during the design and development of 
hardware, software, or combinations thereof related to such equipment.
    ``(g) Accessibility Requirements.--
            ``(1) Manufacturing.--The Commission shall, within 1 year 
        after the date of enactment of this section, prescribe such 
        regulations as are necessary to ensure that telecommunications 
        equipment and customer premises equipment designed, developed, 
        and fabricated pursuant to the authority granted in this 
        section shall be accessible and usable by individuals with 
        disabilities, including individuals with functional limitations 
        of hearing, vision, movement, manipulation, speech, and 
        interpretation of information, unless the costs of making the 
        equipment accessible and usable would result in an undue burden 
        or an adverse competitive impact.
            ``(2) Network services.--The Commission shall, within 1 
        year after the date of enactment of this section, prescribe 
        such regulations as are necessary to ensure that advances in 
        network services deployed by a Bell operating company shall be 
        accessible and usable by individuals whose access might 
        otherwise be impeded by a disability or functional limitation, 
        unless the costs of making the services accessible and usable 
        would result in an undue burden or adverse competitive impact. 
        Such regulations shall seek to permit the use of both standard 
        and special equipment and seek to minimize the need of 
        individuals to acquire additional devices beyond those used by 
        the general public to obtain such access.
            ``(3) Compatibility.--The regulations prescribed under 
        paragraphs (1) and (2) shall require that whenever an undue 
        burden or adverse competitive impact would result from the 
        manufacturing or network services requirements in such 
        paragraphs, the manufacturing affiliate that designs, develops, 
        or fabricates the equipment or the Bell operating company that 
        deploys the network service shall ensure that the equipment or 
        network service in question is compatible with existing 
        peripheral devices or specialized customer premises equipment 
        commonly used by persons with disabilities to achieve access, 
        unless doing so would result in an undue burden or adverse 
        competitive impact.
            ``(4) Definitions.--As used in this subsection:
                    ``(A) Undue burden.--The term `undue burden' means 
                significant difficulty or expense. In determining 
                whether an activity would result in an undue burden, 
                factors to be considered include--
                            ``(i) the nature and cost of the activity;
                            ``(ii) the impact on the operation of the 
                        facility involved in the manufacturing of the 
                        equipment or deployment of the network service;
                            ``(iii) the financial resources of the 
                        manufacturing affiliate in the case of 
                        manufacturing of equipment, for as long as 
                        applicable regulatory rules prohibit cross-
                        subsidization of equipment manufacturing with 
                        revenues from regulated telecommunications 
                        service or when the manufacturing activities 
                        are conducted in a separate subsidiary;
                            ``(iv) the financial resources of the Bell 
                        operating company in the case of network 
                        services, or in the case of manufacturing of 
                        equipment if applicable regulatory rules permit 
                        cross-subsidization of equipment manufacturing 
                        with revenues from regulated telecommunications 
                        services and the manufacturing activities are 
                        not conducted in a separate subsidiary; and
                            ``(v) the type of operation or operations 
                        of the manufacturing affiliate or Bell 
                        operating company as applicable.
                    ``(B) Adverse competitive impact.--In determining 
                whether the activity would result in an adverse 
                competitive impact, the following factors will be 
                considered:
                            (i) whether such activity would raise the 
                        cost of the equipment or network service in 
                        question beyond the level at which there would 
                        be sufficient consumer demand by the general 
                        population to make the equipment or network 
                        service profitable; and
                            (ii) whether such activity would, with 
                        respect to the equipment or network service in 
                        question, put the manufacturing affiliate or 
                        Bell operating company, as applicable, at a 
                        competitive disadvantage in comparison with one 
                        or more providers of one or more competing 
                        products and services. This factor may only be 
                        considered so long as competing manufacturers 
                        and network service providers are not held to 
                        the same obligation with respect to access by 
                        persons with disabilities.
                    ``(C) Activity.--For the purposes of this 
                paragraph, the term `activity' includes--
                            (i) the research, design, development, 
                        deployment, and fabrication activities 
                        necessary to comply with the requirements of 
                        this section; and
                            (ii) the acquisition of the related 
                        materials and equipment components.
            ``(5) Effective date.--The regulations required by this 
        subsection shall become effective 18 months after the date of 
        enactment of this section.
            ``(6) Impact of ada.--Nothing in this section shall be 
        interpreted to limit or otherwise affect the application of the 
        Americans with Disabilities Act or its implementing 
        regulations.
    ``(h) Public Network Enhancement.--A Bell operating company 
manufacturing affiliate shall, as a part of its overall research and 
development effort, establish a permanent program for the manufacturing 
research and development of products and applications for the 
enhancement of the public switched telephone network and to promote 
public access to advanced telecommunications services. Such program 
shall focus its work substantially on developing technological 
advancements in public telephone network applications, 
telecommunication equipment and products, and access solutions to new 
services and technology, including access by (1) public institutions, 
including educational and health care institutions; and (2) people with 
disabilities and functional limitations. Notwithstanding the 
limitations in subsection (a), a Bell operating company and its 
affiliates may engage in such a program in conjunction with a Bell 
operating company not so affiliated or any of its affiliates. The 
existence or establishment of such a program that is jointly provided 
by manufacturing affiliates of Bell operating companies shall satisfy 
the requirements of this section as it pertains to all such affiliates 
of a Bell operating company.
    ``(i) Additional Rules Authorized.--The Commission may prescribe 
such additional rules and regulations as the Commission determines 
necessary to carry out the provisions of this section.
    ``(j) Administration and Enforcement Authority.--
            ``(1) Commission regulatory authority.--For the purposes of 
        administering and enforcing the provisions of this section and 
        the regulations prescribed thereunder, the Commission shall 
        have the same authority, power, and functions with respect to 
        any Bell operating company as the Commission has in 
        administering and enforcing the provisions of this title with 
        respect to any common carrier subject to this Act.
            ``(2) Private actions.--Any common carrier that provides 
        telephone exchange service and that is injured by an act or 
        omission of a Bell operating company or its manufacturing 
        affiliate which violates the requirements of paragraph (7) or 
        (8) of subsection (c), or the Commission's regulations 
        implementing such paragraphs, may initiate an action in a 
        district court of the United States to recover the full amount 
        of damages sustained in consequence of any such violation and 
        obtain such orders from the court as are necessary to terminate 
        existing violations and to prevent future violations; or such 
        regulated local telephone exchange carrier may seek relief from 
        the Commission pursuant to sections 206 through 209.
    ``(k) Rulemaking Required.--The Commission shall prescribe 
regulations to implement this section within 180 days after the date of 
enactment of this section.
    ``(l) Existing Manufacturing Authority.--Nothing in this section 
shall prohibit any Bell operating company from engaging, directly or 
through any affiliate, in any manufacturing activity in which any Bell 
operating company or affiliate was authorized to engage on the date of 
enactment of this section.
    ``(m) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    ``(n) Definitions.--As used in this section:
            ``(1) The term `affiliate' means any organization or entity 
        that, directly or indirectly, owns or controls, is owned or 
        controlled by, or is under common ownership with a Bell 
        operating company. The terms `owns', `owned', and `ownership' 
        mean an equity interest of more than 10 percent.
            ``(2) The term `Bell operating company' means those 
        companies listed in appendix A of the Modification of Final 
        Judgment, and includes any successor or assign of any such 
        company, but does not include any affiliate of any such 
        company.
            ``(3) The term `customer premises equipment' means 
        equipment employed on the premises of a person (other than a 
        carrier) to originate, route, or terminate telecommunications.
            ``(4) The term `manufacturing' has the same meaning as such 
        term has in the Modification of Final Judgment, and includes 
        research, design, development, and fabrication.
            ``(5) The term `manufacturing affiliate' means an affiliate 
        of a Bell operating company established in accordance with 
        subsection (b) of this section.
            ``(6) The term `Modification of Final Judgment' means the 
        decree entered August 24, 1982, in United States v. Western 
        Electric Civil Action No. 82-0192 (United States District 
        Court, District of Columbia), and includes any judgment or 
        order with respect to such action entered on or after August 
        24, 1982, and before the date of enactment of this section.
            ``(7) The term `telecommunications' means the transmission, 
        between or among points specified by the user, of information 
        of the user's choosing, without change in the form or content 
        of the information as sent and received, by means of an 
        electromagnetic transmission medium, including all 
        instrumentalities, facilities, apparatus, and services 
        (including the collection, storage, forwarding, switching, and 
        delivery of such information) essential to such transmission.
            ``(8) The term `telecommunications equipment' means 
        equipment, other than customer premises equipment, used by a 
        carrier to provide telecommunications services, and includes 
        software integral to such equipment (including upgrades).
            ``(9) The term `telecommunications service' means the 
        offering for hire of telecommunications facilities, or of 
        telecommunications by means of such facilities.''.

SEC. 202. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    (a) Amendment.--Title II of the Communications Act is amended by 
adding at the end the following new section:

``SEC. 230. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    ``(a) Regulations Required.--Not later than 6 years after the date 
of enactment of this section, the Commission shall prescribe 
regulations--
            ``(1) to establish such requirements, limitations, or 
        conditions as are (A) necessary and appropriate in the public 
        interest with respect to the provision of alarm monitoring 
        services by Bell operating companies and their affiliates, and 
        (B) effective at such time as a Bell operating company or any 
        of its affiliates is authorized to provide alarm monitoring 
        services;
            ``(2) to prohibit Bell operating companies and their 
        affiliates, at that or any earlier time after the date of 
        enactment of this section, from recording in any fashion the 
        occurrence or the contents of calls received by providers of 
        alarm monitoring services for the purposes of marketing such 
        services on behalf of the Bell operating company, any of its 
        affiliates, or any other entity; and
            ``(3) to establish procedures for the receipt and review of 
        complaints concerning violations by such companies of such 
        regulations, or of any other provision of this Act or the 
        regulations thereunder, that result in material financial harm 
        to a provider of alarm monitoring services.
    ``(b) Expedited Consideration of Complaints.--The procedures 
established under subsection (a)(3) shall ensure that the Commission 
will make a final determination with respect to any complaint described 
in such subsection within 120 days after receipt of the complaint. If 
the complaint contains an appropriate showing that the alleged 
violation occurred, as determined by the Commission in accordance with 
such regulations, the Commission shall, within 60 days after receipt of 
the complaint, issue a cease and desist order to prevent the Bell 
operating company and its affiliates from continuing to engage in such 
violation pending such final determination.
    ``(c) Remedies.--The Commission may use any remedy available under 
title V of this Act to terminate and punish violations described in 
subsection (a)(2). Such remedies may include, if the Commission 
determines that such violation was willful or repeated, ordering the 
Bell operating company to cease offering alarm monitoring services.
    ``(d) Definitions.--As used in this section, the terms `Bell 
operating company', `affiliate', and `alarm monitoring services' have 
the meanings provided in section 106 of the Antitrust Reform Act of 
1993.''.

SEC. 203. REGULATION OF ELECTRONIC PUBLISHING.

    Title II of the Communications Act of 1934 (47 U.S.C. 201 et seq.) 
is amended by adding at the end thereof the following new section:

``SEC. 231. REGULATION OF ELECTRONIC PUBLISHING.

    ``(a) In General.--(1) A Bell operating company and any affiliate 
shall not engage in the provision of electronic publishing that is 
disseminated by means of such Bell operating company's or any of its 
affiliates' basic telephone service.
    ``(2) Nothing in this section shall prohibit a separated affiliate 
or electronic publishing joint venture from engaging in the provision 
of electronic publishing or any other lawful service in any area.
    ``(3) Nothing in this section shall prohibit a Bell operating 
company or affiliate from engaging in the provision of any lawful 
service other than electronic publishing in any area or from engaging 
in the provision of electronic publishing that is not disseminated by 
means of such Bell operating company's or any of its affiliates' basic 
telephone service.
    ``(b) Separated Affiliate or Electronic Publishing Joint Venture 
Requirements.--A separated affiliate or electronic publishing joint 
venture shall--
            ``(1) maintain books, records, and accounts that are 
        separate from those of the Bell operating company and from any 
        affiliate and which record in accordance with generally 
        accepted accounting principles all transactions, whether direct 
        or indirect, with the Bell operating company;
            ``(2) not incur debt in a manner that would permit a 
        creditor upon default to have recourse to the assets of the 
        Bell operating company;
            ``(3) prepare financial statements that are not 
        consolidated with those of the Bell operating company or an 
        affiliate, provided that consolidated statements may also be 
        prepared;
            ``(4) file with the Commission annual reports in a form 
        substantially equivalent to the Form 10-K referenced at 17 
        C.F.R. 249.310 as that section and form are in effect on the 
        date of enactment;
            ``(5) after 1 year from the effective date of this section, 
        not hire as corporate officers sales and marketing management 
        personnel whose responsibilities at the separated affiliate or 
        electronic publishing joint venture will include the geographic 
        area where the Bell operating company provides basic telephone 
        service, or network operations personnel whose responsibilities 
        at the separated affiliate or electronic publishing joint 
        venture would require dealing directly with the Bell operating 
        company, any person who was employed by the Bell operating 
        company during the year preceding their date of hire, provided 
        that this requirement shall not apply to persons subject to a 
        collective bargaining agreement that gives such persons rights 
        to be employed by a separated affiliate or electronic 
        publishing joint venture of the Bell operating company;
            ``(6) not provide any wireline telephone exchange service 
        in any telephone exchange area where a Bell operating company 
        with which it is under common ownership or control provides 
        basic telephone exchange service except on a resale basis;
            ``(7) not use the name, trademarks, or service marks of an 
        existing Bell operating company except for names or service 
        marks that are or were used in common with the entity that owns 
        or controls the Bell operating company;
            ``(8) have performed annually by March 31, or any other 
        date prescribed by the Commission, a compliance review which--
                    ``(A) must be conducted by an independent entity 
                which is subject to professional, legal, and ethical 
                obligations for the purpose of determining compliance 
                during the preceding calendar year with any provision 
                of this section that imposes a requirement on such 
                separated affiliate or electronic publishing joint 
                venture; and
                    ``(B) must be maintained by the separated affiliate 
                for a period of 5 years subject to review by any lawful 
                authority;
            ``(9) within 90 days of receiving a review described in 
        paragraph (8), file a report of such exceptions and any 
        corrective action with the Commission and allow any person to 
        inspect and copy such report subject to reasonable safeguards 
        to protect any proprietary information contained in such report 
        from being used for purposes other than to enforce or pursue 
        remedies under this section.
    ``(c) Bell Operating Company Requirements.--A Bell operating 
company under common ownership or control with a separated affiliate or 
electronic publishing joint venture shall--
            ``(1) not provide a separated affiliate any facilities, 
        services, or basic telephone service information unless it 
        makes such facilities, services, or information available to 
        unaffiliated entities upon request and on the same terms and 
        conditions;
            ``(2) carry out transactions with a separated affiliate in 
        a manner equivalent to the manner that unrelated parties would 
        carry out independent transactions and not based upon the 
        affiliation;
            ``(3) carry out transactions with a separated affiliate, 
        which involve the transfer of personnel, assets, or anything of 
        value, pursuant to written contracts or tariffs that are filed 
        with the Commission and made publicly available;
            ``(4) carry out transactions with a separated affiliate in 
        a manner that is auditable in accordance with generally 
        accepted accounting principles;
            ``(5) value any assets that are transferred to a separated 
        affiliate at the greater of net book cost or fair market value;
            ``(6) value any assets that are transferred to it by its 
        separated affiliate at the lesser of net book cost or fair 
        market value;
            ``(7) except for--
                    ``(A) instances where Commission or State 
                regulations permit in-arrears payment for tariffed 
                telecommunications services; or
                    ``(B) the investment by an affiliate of dividends 
                or profits derived from a Bell operating company,
        not provide debt or equity financing directly or indirectly to 
        a separated affiliate;
            ``(8) comply fully with all applicable Commission and State 
        cost allocation and other accounting rules;
            ``(9) have performed annually by March 31, or any other 
        date prescribed by the Commission, a compliance review which--
                    ``(A) must be conducted by an independent entity 
                which is subject to professional, legal, and ethical 
                obligations for the purpose of determining compliance 
                during the preceding calendar year with any provision 
                of this section that imposes a requirement on such Bell 
                operating company; and
                    ``(B) must be maintained by the Bell operating 
                company for a period of 5 years subject to review by 
                any lawful authority;
            ``(10) within 90 days of receiving a review described in 
        paragraph (9), file a report of such exceptions and any 
        corrective action with the Commission and allow any person to 
        inspect and copy such report subject to reasonable safeguards 
        to protect any proprietary information contained in such report 
        from being used for purposes other than to enforce or pursue 
        remedies under this section;
            ``(11) if it provides facilities or services for 
        telecommunication, transmission, billing and collection, or 
        physical collocation to any electronic publisher, including a 
        separated affiliate, for use with or in connection with the 
        provision of electronic publishing that is disseminated by 
        means of such Bell operating company's or any of its 
        affiliates' basic telephone service, provide to all other 
        electronic publishers the same type of facilities and services 
        on request, on the same terms and conditions or as required by 
        the Commission or a State, and unbundled and individually 
        tariffed to the same extent as provided to such publisher;
            ``(12) provide network access and interconnections for 
        basic telephone service to electronic publishers at prices that 
        are regulated so long as the prices for these services are 
        subject to regulation;
            ``(13) if prices for network access and interconnection for 
        basic telephone service are no longer subject to regulation, 
        provide electronic publishers such services on the same terms 
        and conditions as a separated affiliate receives such services;
            ``(14) if any basic telephone service used by electronic 
        publishers ceases to require a tariff, provide electronic 
        publishers with such service on the same terms and conditions 
        as a separated affiliate receives such service;
            ``(15) provide reasonable advance notification at the same 
        time and on the same terms to all affected electronic 
        publishers of information relating to changes in basic 
        telephone service network design and technical standards which 
        would affect the provision of electronic publishing;
            ``(16) not directly or indirectly provide anything of 
        monetary value to a separated affiliate unless in exchange for 
        consideration at least equal to the greater of its net book 
        cost or fair market value, except the investment by an 
        affiliate of dividends or profits derived from a Bell operating 
        company;
            ``(17) not discriminate in the presentation or provision of 
        any gateway for electronic publishing services or any 
        electronic directory of information services, which is provided 
        over such Bell operating company's basic telephone service;
            ``(18) have no directors, officers or employees in common 
        with a separated affiliate;
            ``(19) not own any property in common with a separated 
        affiliate;
            ``(20) not perform hiring or training of personnel 
        performed on behalf of a separated affiliate;
            ``(21) not perform the purchasing, installation or 
        maintenance of equipment on its behalf of a separated 
        affiliate, except for telephone service that it provides under 
        tariff or contract subject to the provisions of this section; 
        and
            ``(22) not perform research and development on behalf of a 
        separated affiliate.
    ``(d) Customer Proprietary Network Information.--A Bell operating 
company or any affiliate shall not provide to any electronic publisher, 
including a separated affiliate or electronic publishing joint venture, 
customer proprietary network information for use with or in connection 
with the provision of electronic publishing that is disseminated by 
means of such Bell operating company's or any of its affiliates' basic 
telephone service that is not made available by the Bell operating 
company or affiliate to all electronic publishers on the same terms and 
conditions.
    ``(e) Compliance With Safeguards.--A Bell operating company, 
affiliate or its separated affiliate is prohibited from acting in 
concert with another Bell operating company or any entity in order to 
knowingly and willfully violate or evade the requirements of this 
section.
    ``(f) Telephone Operating Company Dividends.--Nothing in this 
section shall prohibit an affiliate from investing dividends derived 
from a Bell operating company in its separated affiliate and 
subsections (i) and (j) of this section shall not apply to any such 
investment.
    ``(g) Joint Marketing, Etc.--Except as provided in subsection (h)--
            ``(1) a Bell operating company shall not carry out any 
        promotion, marketing, sales, or advertising for or in 
        conjunction with a separated affiliate.
            ``(2) A Bell operating company shall not carry out any 
        promotion, marketing, sales, or advertising for or in 
        conjunction with an affiliate that is related to the provision 
        of electronic publishing.
    ``(h) Permissible Joint Activities.--
            ``(1) Joint telemarketing.--A Bell operating company may 
        provide inbound telemarketing or referral services related to 
        the provision of electronic publishing for a separated 
        affiliate, electronic publishing joint venture, affiliate, or 
        unaffiliated electronic publisher, provided that if such 
        services are provided to a separated affiliate, electronic 
        publishing joint venture, or affiliate, such services shall be 
        made available to all electronic publishers on request, on 
        nondiscriminatory terms, at compensatory prices, and subject to 
        regulations of the Commission to ensure that the Bell operating 
        company's method of providing telemarketing or referral and its 
        price structure do not competitively disadvantage any 
        electronic publishers regardless of size, including those which 
        do not use the Bell operating company's telemarketing services.
            ``(2) Teaming arrangements.--A Bell operating company may 
        engage in nondiscriminatory teaming or business arrangements to 
        engage in electronic publishing with any separated affiliate or 
        with any other electronic publisher provided that the Bell 
        operating company only provides facilities, services, and basic 
        telephone service information as authorized by this section and 
        provided that the Bell operating company does not own such 
        teaming or business arrangement.
            ``(3) Electronic publishing joint ventures.--A Bell 
        operating company or affiliate may participate on a 
        nonexclusive basis in electronic publishing joint ventures with 
        entities that are not any Bell operating company, affiliate, or 
        separated affiliate to provide electronic publishing services, 
        provided that the Bell operating company or affiliate has not 
        more than a 50 percent direct or indirect equity interest (or 
        the equivalent thereof) or the right to more than 50 percent of 
        the gross revenues under a revenue sharing or royalty agreement 
        in any electronic publishing joint venture. Officers and 
        employees of a Bell operating company or affiliate 
        participating in an electronic publishing joint venture may not 
        have more than 50 percent of the voting control over the 
        electronic publishing joint venture. In the case of joint 
        ventures with small, local electronic publishers, the 
        Commission for good cause shown may authorize the Bell 
        operating company or affiliate to have a larger equity 
        interest, revenue share, or voting control but not to exceed 80 
        percent. A Bell operating company participating in an 
        electronic publishing joint venture may provide promotion, 
        marketing, sales, or advertising personnel and services to such 
        joint venture.
    ``(i) Transactions Related to the Provision of Electronic 
Publishing Between a Telephone Operating Company and any Affiliate.--
            ``(1) Any provision of facilities, services or basic 
        telephone service information or any transfer of assets, 
        personnel, or anything of commercial or competitive value from 
        a Bell operating company to any affiliate related to the 
        provision of electronic publishing shall be--
                    ``(A) recorded in the books and records of each 
                entity;
                    ``(B) auditable in accordance with generally 
                accepted accounting principles; and
                    ``(C) pursuant to written contracts or tariffs 
                filed with the Commission or a State and made publicly 
                available.
            ``(2) Any transfer of assets directly related to the 
        provision of electronic publishing from a Bell operating 
        company to an affiliate shall be valued at the greater of net 
        book cost or fair market value. Any transfer of assets related 
        to the provision of electronic publishing from an affiliate to 
        the Bell operating company shall be valued at the lesser of net 
        book cost or fair market value.
            ``(3) A Bell operating company shall not provide an 
        affiliate any facilities, services, or basic telephone service 
        information related to the provision of electronic publishing, 
        which such affiliate then directly or indirectly provides to a 
        separated affiliate, and which is not made available to 
        unaffiliated companies on the same terms and conditions.
    ``(j) Transactions Related to the Provision of Electronic 
Publishing Between an Affiliate and a Separated Affiliate.--
            ``(1) Any facilities, services, or basic telephone service 
        information provided or any assets, personnel, or anything of 
        commercial or competitive value transferred, from a Bell 
        operating company to any affiliate as described in subsection 
        (i) and then provided or transferred to a separated affiliate 
        shall be--
                    ``(A) recorded in the books and records of each 
                entity;
                    ``(B) auditable in accordance with generally 
                accepted accounting principles; and
                    ``(C) pursuant to written contracts or tariffs 
                filed with the Commission or a State and made publicly 
                available.
            ``(2) Any transfer of assets directly related to the 
        provision of electronic publishing from a Bell operating 
        company to any affiliate as described in subsection (i) and 
        then transferred to a separated affiliate shall be valued at 
        the greater of net book cost or fair market value. Any transfer 
        of assets related to the provision of electronic publishing 
        from a separated affiliate to any affiliate and then 
        transferred to the Bell operating company as described in 
        subsection (i) shall be valued at the lesser of net book cost 
        or fair market value.
            ``(3) An affiliate shall not provide a separated affiliate 
        any facilities, services, or basic telephone service 
        information related to the provision of electronic publishing, 
        which were provided to such affiliate directly or indirectly by 
        a Bell operating company, and which is not made available to 
        unaffiliated companies on the same terms and conditions.
    ``(k) Other Electronic Publishers.--Except as provided in 
subsection (h)(3)--
            ``(1) A Bell operating company shall not have any officers, 
        employees, property, or facilities in common with any entity 
        whose principal business is publishing of which a part is 
        electronic publishing.
            ``(2) No officer or employee of a Bell operating company 
        shall serve as a director of any entity whose principal 
        business is publishing of which a part is electronic 
        publishing.
            ``(3) For the purposes of paragraphs (1) and (2), a Bell 
        operating company or an affiliate that owns an electronic 
        publishing joint venture shall not be deemed to be engaged in 
        the electronic publishing business solely because of such 
        ownership.
            ``(4) A Bell operating company shall not carry out--
                    ``(A) any marketing or sales for any entity that 
                engages in electronic publishing; or
                    ``(B) any hiring of personnel, purchasing, or 
                production,
        for any entity that engages in electronic publishing.
            ``(5) The Bell operating company shall not provide any 
        facilities, services, or basic telephone service information to 
        any entity that engages in electronic publishing, for use with 
        or in connection with the provision of electronic publishing 
        that is disseminated by means of such Bell operating company's 
        or any of its affiliates' basic telephone service, unless 
        equivalent facilities, services, or information are made 
        available on equivalent terms and conditions to all.
    ``(l) Transition.--Any electronic publishing service being offered 
to the public by a Bell operating company or affiliate on the date of 
enactment of this section shall have one year from such date of 
enactment to comply with the requirements of this section.
    ``(m) Sunset.--The provisions of this section shall cease to apply 
to a Bell operating company or its affiliate or separated affiliate in 
any telephone exchange area on June 30, 2000.
    ``(n) Private Right of Action.--
            ``(1) Any person claiming that any act or practice of any 
        Bell operating company, affiliate, or separated affiliate 
        constitutes a violation of this section may file a complaint 
        with the Commission or bring suit as provided in section 207 of 
        the Communications Act of 1934 (47 U.S.C. 207), and such Bell 
        operating company, affiliate, or separated affiliate shall be 
        liable as provided in section 206 of the Communications Act of 
        1934, (47 U.S.C. 207): Provided, however, That damages may not 
        be awarded for a violation that is discovered by a compliance 
        review as required by subsection (b)(8) or (c)(9) of this 
        section and corrected within 90 days.
            ``(2) In addition to the provisions of paragraph (1), any 
        person claiming that any act or practice of any Bell operating 
        company, affiliate, or separated affiliate constitutes a 
        violation of this section may make application to the 
        Commission for an order to cease and desist such violation or 
        may make application in any district court of the United States 
        of competent jurisdiction for an order enjoining such acts or 
        practices or for an order compelling compliance with such 
        requirement.
    ``(o) Antitrust Laws.--Nothing in this section shall be construed 
to modify, impair, or supersede the applicability of any of the 
antitrust laws.
    ``(p) Definitions.--As used in this section--
            ``(1) The term `affiliate' means any entity that, directly 
        or indirectly, owns or controls, is owned or controlled by, or 
        is under common ownership or control with, a Bell operating 
        company. Such term shall not include a separated affiliate.
            ``(2) The term `basic telephone service' means wireline 
        telephone exchange service provided by a Bell operating company 
        in a telephone exchange area, except
                    ``(A) a competitive wireline telephone exchange 
                service provided in a telephone exchange area where 
                another entity provides a wireline telephone exchange 
                service that was provided on January 1, 1984, and
                    ``(B) wireless telephone exchange service provided 
                by an affiliate that is required by the Commission to 
                be a corporate entity separate from the Bell operating 
                company.
            ``(3) The term `basic telephone service information' means 
        network and customer information of a Bell operating company 
        and other information acquired by a Bell operating company as a 
        result of its engaging in the provision of basic telephone 
        service.
            ``(4) The term `control' has the meaning that it has in 17 
        C.F.R. 240.12b-2, the regulations promulgated by the Securities 
        and Exchange Commission pursuant to the Securities Exchange Act 
        of 1934 (15 U.S.C. 78a et seq.) or any successor provision to 
        such section.
            ``(5) The term `customer proprietary network information' 
        means--
                    ``(A) information which--
                            ``(i) relates to the quantity, technical 
                        configuration, type, destination, and amount of 
                        use of telephone exchange service or 
                        interexchange telephone service subscribed to 
                        by any customer of a Bell operating company, 
                        and
                            ``(ii) is available to the Bell operating 
                        company by virtue of the telephone company-
                        customer relationship; and
                    ``(B) information contained in the bills for 
                telephone exchange service or interexchange telephone 
                service received by a customer of a Bell operating 
                company.
            ``(6)(A) The term `electronic publishing' means the 
        dissemination, provision, publication, or sale to an 
        unaffiliated entity or person, using a Bell operating company's 
        basic telephone service, of--
                    ``(i) news;
                    ``(ii) business and financial reports;
                    ``(iii) editorials;
                    ``(iv) columns;
                    ``(v) sports reporting;
                    ``(vi) features;
                    ``(vii) advertising;
                    ``(viii) photos and images used in publishing;
                    ``(ix) archival material used in publishing;
                    ``(x) legal notices; or
                    ``(xi) other like or similar information.
            ``(B) The term `electronic publishing' shall not include 
        the following network services:
                    ``(i) Information access as that term is defined by 
                the Modification of Final Judgment.
                    ``(ii) The transmission of information as a common 
                carrier.
                    ``(iii) The transmission of information as part of 
                a gateway to an information service that does not 
                involve the generation or alteration of the content of 
                information, including data transmission, address 
                translation, protocol conversion, billing management, 
                introductory information content, and navigational 
                systems that enable users to access electronic 
                publishing services, which do not affect the 
                presentation of such electronic publishing services to 
                users.
                    ``(iv) Voice storage and retrieval services, 
                including voice messaging and electronic mail services.
                    ``(v) Level 2 gateway services as those services 
                are defined by the Commission's Second Report and 
                Order, Recommendation to Congress and Second Further 
                Notice of Proposed Rulemaking in CC Docket No. 87-266 
                dated August 14, 1992.
                    ``(vi) Data processing services that do not involve 
                the generation or alteration of the content of 
                information.
                    ``(vii) Transaction processing systems that do not 
                involve the generation or alteration of the content of 
                information.
                    ``(viii) Electronic billing or advertising of a 
                Bell operating company's regulated telecommunications 
                services.
                    ``(ix) Language translation.
                    ``(x) Conversion of data from one format to 
                another.
                    ``(xi) The provision of information necessary for 
                the management, control, or operation of a telephone 
                company telecommunications system.
                    ``(xii) The provision of directory assistance that 
                provides names, addresses, and telephone numbers and 
                does not include advertising.
                    ``(xiii) Caller identification services.
                    ``(xiv) Repair and provisioning databases for 
                telephone company operations.
                    ``(xv) Credit card and billing validation for 
                telephone company operations.
                    ``(xvi) 911-E and other emergency assistance 
                databases.
                    ``(xvii) Any other network service of a type that 
                is like or similar to these network services and that 
                does not involve the generation or alteration of the 
                content of information.
                    ``(xviii) Any upgrades to these network services 
                that do not involve the generation or alteration of the 
                content of information.
            ``(C) The term `electronic publishing' also shall not 
        include--
                    ``(i) full motion video entertainment on demand; 
                and
                    ``(ii) video programming as defined in section 602 
                of the Communications Act of 1934.
            ``(7) The term `electronic publishing joint venture' means 
        a joint venture owned by a Bell operating company or affiliate 
        that engages in the provision of electronic publishing which is 
        disseminated by means of such Bell operating company's or any 
        of its affiliates' basic telephone service.
            ``(8) The term `entity' means any organization, and 
        includes corporations, partnerships, sole proprietorships, 
        associations, and joint ventures.
            ``(9) The term `inbound telemarketing' means the marketing 
        of property, goods, or services by telephone to a customer or 
        potential customer who initiated the call.
            ``(10) The term `own' with respect to an entity means to 
        have a direct or indirect equity interest (or the equivalent 
        thereof) of more than 10 percent of an entity, or the right to 
        more than 10 percent of the gross revenues of an entity under a 
        revenue sharing or royalty agreement.
            ``(11) The term `separated affiliate' means a corporation 
        under common ownership or control with a Bell operating company 
        that does not own or control a Bell operating company and is 
        not owned or controlled by a Bell operating company and that 
        engages in the provision of electronic publishing which is 
        disseminated by means of such Bell operating company's or any 
        of its affiliates' basic telephone service.
            ``(12) The term `Bell operating company' means the 
        corporations subject to the Modification of Final Judgment and 
        listed in Appendix A thereof, or any entity owned or controlled 
        by such corporation, or any successor or assign of such 
        corporation, but does not include an electronic publishing 
        joint venture owned by such corporation or entity.''.

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