[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 652 Engrossed Amendment House (EAH)]
In the House of Representatives, U. S.,
October 12, 1995.
Resolved, That the bill from the Senate (S. 652) entitled ``An Act to
provide for a pro-competitive, de-regulatory national policy framework designed
to accelerate rapidly private sector deployment of advanced telecommunications
and information technologies and services to all Americans by opening all
telecommunications markets to competition, and for other purposes'', do pass
with the following
AMENDMENTS:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Communications Act
of 1995''.
(b) References.--References in this Act to ``the Act'' are
references to the Communications Act of 1934.
(c) Table of Contents.--
Sec. 1. Short title; references; table of contents.
TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS
Sec. 101. Establishment of part II of title II.
``Part II--Development of Competitive Markets
``Sec. 241. Interconnection.
``Sec. 242. Equal access and interconnection to the local loop
for competing providers.
``Sec. 243. Removal of barriers to entry.
``Sec. 244. Statements of terms and conditions for access and
interconnection.
``Sec. 245. Bell operating company entry into interLATA
services.
``Sec. 246. Competitive safeguards.
``Sec. 247. Universal service.
``Sec. 248. Pricing flexibility and abolition of rate-of-return
regulation.
``Sec. 249. Network functionality and accessibility.
``Sec. 250. Market entry barriers.
``Sec. 251. Illegal changes in subscriber carrier selections.
``Sec. 252. Study.''.
Sec. 102. Competition in manufacturing, information services, alarm
services, and pay phone services.
``Part III--Special and Temporary Provisions
``Sec. 271. Manufacturing by Bell operating companies.
``Sec. 272. Electronic publishing by Bell operating companies.
``Sec. 273. Alarm monitoring and telemessaging services by Bell
operating companies.
``Sec. 274. Provision of payphone service.''.
Sec. 103. Forbearance from regulation.
``Sec. 230. Protection for private blocking and screening of
offensive material; FCC regulation of
computer services prohibited.''.
Sec. 104. Online family empowerment.
Sec. 105. Privacy of customer information.
``Sec. 222. Privacy of customer proprietary network
information.''.
Sec. 106. Pole attachments.
Sec. 107. Preemption of franchising authority regulation of
telecommunications services.
Sec. 108. Facilities siting; radio frequency emission standards.
Sec. 109. Mobile service access to long distance carriers.
Sec. 110. Freedom from toll fraud.
Sec. 111. Report on means of restricting access to unwanted material in
interactive telecommunications systems.
Sec. 112. Telecommunications development fund.
``Sec. 10. Telecommunication development fund.''.
Sec. 113. Report on the use of advanced telecommunications services for
medical purposes.
Sec. 114. Telecommuting public information program.
Sec. 115. Authorization of appropriations.
TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS
Sec. 201. Cable service provided by telephone companies.
``Part V--Video Programming Services Provided by Telephone Companies
``Sec. 651. Definitions.
``Sec. 652. Separate video programming affiliate.
``Sec. 653. Establishment of video platform.
``Sec. 654. Authority to prohibit cross-subsidization.
``Sec. 655. Prohibition on buy outs.
``Sec. 656. Applicability of parts I through IV.
``Sec. 657. Rural area exemption.''.
Sec. 202. Competition from cable systems.
Sec. 203. Competitive availability of navigation devices.
``Sec. 713. Competitive availability of navigation devices.''.
Sec. 204. Video programming accessibility.
Sec. 205. Technical amendments.
TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS
Sec. 301. Broadcaster spectrum flexibility.
``Sec. 336. Broadcast spectrum flexibility.''.
Sec. 302. Broadcast ownership.
``Sec. 337. Broadcast ownership.''.
Sec. 303. Foreign investment and ownership.
Sec. 304. Family viewing empowerment.
Sec. 305. Parental choice in television programming.
Sec. 306. Term of licenses.
Sec. 307. Broadcast license renewal procedures.
Sec. 308. Exclusive Federal jurisdiction over direct broadcast
satellite service.
Sec. 309. Automated ship distress and safety systems.
Sec. 310. Restrictions on over-the-air reception devices.
Sec. 311. DBS signal security.
Sec. 312. Delegation of equipment testing and certification to private
laboratories.
TITLE IV--EFFECT ON OTHER LAWS
Sec. 401. Relationship to other laws.
Sec. 402. Preemption of local taxation with respect to DBS services.
Sec. 403. Protection of minors and clarification of current laws
regarding communication of obscene and
indecent materials through the use of
computers.
TITLE V--DEFINITIONS
Sec. 501. Definitions.
TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE
Sec. 601. Complaint procedure.
TITLE I--DEVELOPMENT OF COMPETITIVE TELECOMMUNICATIONS MARKETS
SEC. 101. ESTABLISHMENT OF PART II OF TITLE II.
(a) Amendment.--Title II of the Act is amended by inserting after
section 229 (47 U.S.C. 229) the following new part:
``PART II--DEVELOPMENT OF COMPETITIVE MARKETS
``SEC. 241. INTERCONNECTION.
``The duty of a common carrier under section 201(a) includes the
duty to interconnect with the facilities and equipment of other
providers of telecommunications services and information services.
``SEC. 242. EQUAL ACCESS AND INTERCONNECTION TO THE LOCAL LOOP FOR
COMPETING PROVIDERS.
``(a) Openness and Accessibility Obligations.--The duty under
section 201(a) of a local exchange carrier includes the following
duties:
``(1) Interconnection.--The duty to provide, in accordance
with subsection (b), equal access to and interconnection with
the facilities of the carrier's networks to any other carrier
or person offering (or seeking to offer) telecommunications
services or information services reasonably requesting such
equal access and interconnection, so that such networks are
fully interoperable with such telecommunications services and
information services. For purposes of this paragraph, a request
is not reasonable unless it contains a proposed plan, including
a reasonable schedule, for the implementation of the requested
access or interconnection.
``(2) Unbundling of network elements.--The duty to offer
unbundled services, elements, features, functions, and
capabilities whenever technically feasible, at just,
reasonable, and nondiscriminatory prices and in accordance with
subsection (b)(4).
``(3) Resale.--The duty--
(A) to offer services, elements, features,
functions, and capabilities for resale at wholesale
rates, and
(B) not to prohibit, and not to impose unreasonable
or discriminatory conditions or limitations on, the
resale of such services, elements, features, functions,
and capabilities, on a bundled or unbundled basis,
except that a carrier may prohibit a reseller that
obtains at wholesale rates a service, element, feature,
function, or capability that is available at retail
only to a category of subscribers from offering such
service, element, feature, function, or capability to a
different category of subscribers.
For the purposes of this paragraph, wholesale rates shall be
determined on the basis of retail rates for the service,
element, feature, function, or capability provided, excluding
the portion thereof attributable to any marketing, billing,
collection, and other costs that are avoided by the local
exchange carrier.
``(4) Number portability.--The duty to provide, to the
extent technically feasible, number portability in accordance
with requirements prescribed by the Commission.
``(5) Dialing parity.--The duty to provide, in accordance
with subsection (c), dialing parity to competing providers of
telephone exchange service and telephone toll service.
``(6) Access to rights-of-way.--The duty to afford access
to the poles, ducts, conduits, and rights-of-way of such
carrier to competing providers of telecommunications services
in accordance with section 224(d).
``(7) Network functionality and accessibility.--The duty
not to install network features, functions, or capabilities
that do not comply with any standards established pursuant to
section 249.
``(8) Good faith negotiation.--The duty to negotiate in
good faith, under the supervision of State commissions, the
particular terms and conditions of agreements to fulfill the
duties described in paragraphs (1) through (7). The other
carrier or person requesting interconnection shall also be
obligated to negotiate in good faith the particular terms and
conditions of agreements to fulfill the duties described in
paragraphs (1) through (7).
``(b) Interconnection, Compensation, and Equal Access.--
``(1) Interconnection.--A local exchange carrier shall
provide access to and interconnection with the facilities of
the carrier's network at any technically feasible point within
the carrier's network on just and reasonable terms and
conditions, to any other carrier or person offering (or seeking
to offer) telecommunications services or information services
requesting such access.
``(2) Intercarrier compensation between facilities-based
carriers.--
``(A) In general.--For the purposes of paragraph
(1), the terms and conditions for interconnection of
the network facilities of a competing provider of
telephone exchange service shall not be considered to
be just and reasonable unless--
``(i) such terms and conditions provide for
the mutual and reciprocal recovery by each
carrier of costs associated with the
termination on such carrier's network
facilities of calls that originate on the
network facilities of the other carrier;
``(ii) such terms and conditions determine
such costs on the basis of a reasonable
approximation of the additional costs of
terminating such calls; and
``(iii) the recovery of costs permitted by
such terms and conditions are reasonable in
relation to the prices for termination of calls
that would prevail in a competitive market.
``(B) Rules of construction.--This paragraph shall
not be construed--
``(i) to preclude arrangements that afford
such mutual recovery of costs through the
offsetting of reciprocal obligations, including
arrangements that waive mutual recovery (such
as bill-and-keep arrangements); or
``(ii) to authorize the Commission or any
State commission to engage in any rate
regulation proceeding to establish with
particularity the additional costs of
terminating calls, or to require carriers to
maintain records with respect to the additional
costs of terminating calls.
``(3) Equal access.--A local exchange carrier shall afford,
to any other carrier or person offering (or seeking to offer) a
telecommunications service or an information service,
reasonable and nondiscriminatory access on an unbundled basis--
``(A) to databases, signaling systems, billing and
collection services, poles, ducts, conduits, and
rights-of-way owned or controlled by a local exchange
carrier, or other facilities, functions, or information
(including subscriber numbers) integral to the
efficient transmission, routing, or other provision of
telephone exchange services or exchange access;
``(B) that is equal in type and quality to the
access which the carrier affords to itself or to any
other person, and is available at nondiscriminatory
prices; and
``(C) that is sufficient to ensure the full
interoperability of the equipment and facilities of the
carrier and of the person seeking such access.
``(4) Commission action required.--
``(A) In general.--Within 6 months after the date
of enactment of this part, the Commission shall
complete all actions necessary (including any
reconsideration) to establish regulations to implement
the requirements of this section. The Commission shall
establish such regulations after consultation with the
Joint Board established pursuant to section 247.
``(B) Accommodation of state access regulations.--
In prescribing and enforcing regulations to implement
the requirements of this section, the Commission shall
not preclude the enforcement of any regulation, order,
or policy of a State commission that--
``(i) establishes access and
interconnection obligations of local exchange
carriers;
``(ii) is consistent with the requirements
of this section; and
``(iii) does not substantially prevent the
Commission from fulfilling the requirements of
this section and the purposes of this part.
``(C) Collocation.--Such regulations shall provide
for actual collocation of equipment necessary for
interconnection for telecommunications services at the
premises of a local exchange carrier, except that the
regulations shall provide for virtual collocation where
the local exchange carrier demonstrates that actual
collocation is not practical for technical reasons or
because of space limitations.
``(D) User payment of costs.--Such regulations
shall require that the costs that a carrier incurs in
offering access, interconnection, number portability,
or unbundled services, elements, features, functions,
and capabilities shall be borne by the users of such
access, interconnection, number portability, or
services, elements, features, functions, and
capabilities.
``(E) Imputed charges to carrier.--Such regulations
shall require the carrier, to the extent it provides a
telecommunications service or an information service
that requires access or interconnection to its network
facilities, to impute such access and interconnection
charges to itself.
``(c) Number Portability and Dialing Parity.--
``(1) Availability.--A local exchange carrier shall ensure
that--
``(A) number portability shall be available on
request in accordance with subsection (a)(4); and
``(B) dialing parity shall be available upon
request, except that, in the case of a Bell operating
company, such company shall ensure that dialing parity
for intraLATA telephone toll service shall be available
not later than the date such company is authorized to
provide interLATA services.
``(2) Number administration.--The Commission shall
designate one or more impartial entities to administer
telecommunications numbering and to make such numbers available
on an equitable basis. The Commission shall have exclusive
jurisdiction over those portions of the North American
Numbering Plan that pertain to the United States. Nothing in
this paragraph shall preclude the Commission from delegating to
State commissions or other entities any portion of such
jurisdiction.
``(d) Joint Marketing of Resold Elements.--
``(1) Restriction.--Except as provided in paragraph (2), no
service, element, feature, function, or capability that is made
available for resale in any State by a Bell operating company
may be jointly marketed directly or indirectly with any
interLATA telephone toll service until such Bell operating
company is authorized pursuant to section 245(c) to provide
interLATA services in such State.
``(2) Competing providers.--Paragraph (1) shall not
prohibit joint marketing of services, elements, features,
functions, or capabilities acquired from a Bell operating
company by an unaffiliated provider that, together with its
affiliates, has in the aggregate less than 2 percent of the
access lines installed nationwide.
``(e) Modifications and Waivers.--The Commission may modify or
waive the requirements of this section for any local exchange carrier
(or class or category of such carriers) that has, in the aggregate
nationwide, fewer than 500,000 access lines installed, to the extent
that the Commission determines that compliance with such requirements
(without such modification) would be unduly economically burdensome or
technologically infeasible.
``(f) Exemption for Certain Rural Telephone Companies.--Subsections
(a) through (d) of this section shall not apply to a rural telephone
company, until such company has received a bona fide request for
services, elements, features or capabilities described in subsections
(a) through (d). Following a bona fide request to the carrier and
notice of the request to the State commission, the State commission
shall determine within 120 days whether the request would be unduly
economically burdensome, be technologically infeasible, and be
consistent with subsections (b)(1) through (b)(5), (c)(1), and (c)(3)
of section 247. The exemption provided by this subsection shall not
apply if such carrier provides video programming services over its
telephone exchange facilities in its telephone service area.
``(g) Time and Manner of Compliance.--The State shall establish,
after determining pursuant to subsection (f) that a bona fide request
is not economically burdensome, is technologically feasible, and is
consistent with subsections (b)(1) through (b)(5), (c)(1), and (c)(3)
of section 247, an implementation schedule for compliance with such
approved bona fide request that is consistent in time and manner with
Commission rules.
``(h) Avoidance of Redundant Regulations.--
``(1) Commission regulations.--Nothing in this section
shall be construed to prohibit the Commission from enforcing
regulations prescribed prior to the date of enactment of this
part in fulfilling the requirements of this section, to the
extent that such regulations are consistent with the provisions
of this section.
``(2) State regulations.--Nothing in this section shall be
construed to prohibit any State commission from enforcing
regulations prescribed prior to the date of enactment of this
part, or from prescribing regulations after such date of
enactment, in fulfilling the requirements of this section, if
(A) such regulations are consistent with the provisions of this
section, and (B) the enforcement of such regulations has not
been precluded under subsection (b)(4)(B).
``SEC. 243. REMOVAL OF BARRIERS TO ENTRY.
(a) In General.--No State or local statute or regulation, or other
State or local legal requirement, may prohibit or have the effect of
prohibiting the ability of any entity to provide interstate or
intrastate telecommunications services.
(b) State and Local Authority.--Nothing in this section shall
affect the ability of a State or local government to impose, on a
competitively neutral basis and consistent with section 247 (relating
to universal service), requirements necessary to preserve and advance
universal service, protect the public safety and welfare, ensure the
continued quality of telecommunications services, and safeguard the
rights of consumers.
(c) Local Government Authority.--Nothing in this Act affects the
authority of a local government to manage the public rights-of-way or
to require fair and reasonable compensation from telecommunications
providers, on a competitively neutral and nondiscriminatory basis, for
use of the rights-of-way on a nondiscriminatory basis, if the
compensation required is publicly disclosed by such government.
(d) Exception.--In the case of commercial mobile services, the
provisions of section 332(c)(3) shall apply in lieu of the provisions
of this section.
``SEC. 244. STATEMENTS OF TERMS AND CONDITIONS FOR ACCESS AND
INTERCONNECTION.
``(a) In General.--Within 18 months after the date of enactment of
this part, and from time to time thereafter, a local exchange carrier
shall prepare and file with a State commission statements of the terms
and conditions that such carrier generally offers within that State
with respect to the services, elements, features, functions, or
capabilities provided to comply with the requirements of section 242
and the regulations thereunder. Any such statement pertaining to the
charges for interstate services, elements, features, functions, or
capabilities shall be filed with the Commission.
``(b) Review.--
``(1) State commission review.--A State commission to which
a statement is submitted under subsection (a) shall review such
statement in accordance with State law. A State commission may
not approve such statement unless such statement complies with
section 242 and the regulations thereunder. Except as provided
in section 243, nothing in this section shall prohibit a State
commission from establishing or enforcing other requirements of
State law in its review of such statement, including requiring
compliance with intrastate telecommunications service quality
standards or requirements.
``(2) FCC review.--The Commission shall review such
statements to ensure that--
``(A) the charges for interstate services,
elements, features, functions, or capabilities are
just, reasonable, and nondiscriminatory; and
``(B) the terms and conditions for such interstate
services or elements unbundle any separable services,
elements, features, functions, or capabilities in
accordance with section 242(a)(2) and any regulations
thereunder.
``(c) Time for Review.--
``(1) Schedule for review.--The Commission and the State
commission to which a statement is submitted shall, not later
than 60 days after the date of such submission--
``(A) complete the review of such statement under
subsection (b) (including any reconsideration thereof),
unless the submitting carrier agrees to an extension of
the period for such review; or
``(B) permit such statement to take effect.
``(2) Authority to continue review.--Paragraph (1) shall
not preclude the Commission or a State commission from
continuing to review a statement that has been permitted to
take effect under subparagraph (B) of such paragraph.
``(d) Effect of Agreements.--Nothing in this section shall prohibit
a carrier from filing an agreement to provide services, elements,
features, functions, or capabilities affording access and
interconnection as a statement of terms and conditions that the carrier
generally offers for purposes of this section. An agreement affording
access and interconnection shall not be approved under this section
unless the agreement contains a plan, including a reasonable schedule,
for the implementation of the requested access or interconnection. The
approval of a statement under this section shall not operate to
prohibit a carrier from entering into subsequent agreements that
contain terms and conditions that differ from those contained in a
statement that has been reviewed and approved under this section, but--
``(1) each such subsequent agreement shall be filed under
this section; and
``(2) such carrier shall be obligated to offer access to
such services, elements, features, functions, or capabilities
to other carriers and persons (including carriers and persons
covered by previously approved statements) requesting such
access on terms and conditions that, in relation to the terms
and conditions in such subsequent agreements, are not
discriminatory.
``(e) Sunset.--The provisions of this section shall cease to apply
in any local exchange market, defined by geographic area and class or
category of service, that the Commission and the State determines has
become subject to full and open competition.
``SEC. 245. BELL OPERATING COMPANY ENTRY INTO INTERLATA SERVICES.
``(a) Verification of Access and Interconnection Compliance.--At
any time after 6 months after the date of enactment of this part, a
Bell operating company may provide to the Commission verification by
such company with respect to one or more States that such company is in
compliance with the requirements of this part. Such verification shall
contain the following:
``(1) Certification.--A certification by each State
commission of such State or States that such carrier has fully
implemented the conditions described in subsection (b), except
as provided in subsection (c)(2).
``(2) Agreement or statement.--For each such State, either
of the following:
``(A) Presence of a facilities-based competitor.--
An agreement that has been approved under section 244
specifying the terms and conditions under which the
Bell operating company is providing access and
interconnection to its network facilities in accordance
with section 242 for the network facilities of an
unaffiliated competing provider of telephone exchange
service (as defined in section 3(44)(A), but excluding
exchange access service) to residential and business
subscribers. For the purpose of this subparagraph, such
telephone exchange service may be offered by such
competing provider either exclusively over its own
telephone exchange service facilities or predominantly
over its own telephone exchange service facilities in
combination with the resale of the services of another
carrier. For the purpose of this subparagraph, services
provided pursuant to subpart K of part 22 of the
Commission's regulations (47 C.F.R. 22.901 et seq.)
shall not be considered to be telephone exchange
services.
``(B) Failure to request access.--If no such
provider has requested such access and interconnection
before the date which is 3 months before the date the
company makes its submission under this subsection, a
statement of the terms and conditions that the carrier
generally offers to provide such access and
interconnection that has been approved or permitted to
take effect by the State commission under section 244.
For purposes of subparagraph (B), a Bell operating company
shall be considered not to have received any request for access
or interconnection if the State commission of such State or
States certifies that the only provider or providers making
such request have (i) failed to bargain in good faith under the
supervision of such State commission pursuant to section
242(a)(8), or (ii) have violated the terms of their agreement
by failure to comply, within a reasonable period of time, with
the implementation schedule contained in such agreement.
``(b) Certification of Compliance With Part II.--For the purposes
of subsection (a)(1), a Bell operating company shall submit to the
Commission a certification by a State commission of compliance with
each of the following conditions in any area where such company
provides local exchange service or exchange access in such State:
``(1) Interconnection.--The Bell operating company provides
access and interconnection in accordance with subsections
(a)(1) and (b) of section 242 to any other carrier or person
offering telecommunications services requesting such access and
interconnection, and complies with the Commission regulations
pursuant to such section concerning such access and interconnection.
``(2) Unbundling of network elements.--The Bell operating
company provides unbundled services, elements, features,
functions, and capabilities in accordance with subsection
(a)(2) of section 242 and the regulations prescribed by the
Commission pursuant to such section.
``(3) Resale.--The Bell operating company offers services,
elements, features, functions, and capabilities for resale in
accordance with section 242(a)(3), and neither the Bell
operating company, nor any unit of State or local government
within the State, imposes any restrictions on resale or sharing
of telephone exchange service (or unbundled services, elements,
features, or functions of telephone exchange service) in
violation of section 242(a)(3).
``(4) Number portability.--The Bell operating company
provides number portability in compliance with the Commission's
regulations pursuant to subsections (a)(4) and (c) of section
242.
``(5) Dialing parity.--The Bell operating company provides
dialing parity in accordance with subsections (a)(5) and (c) of
section 242, and will, not later than the effective date of its
authority to commence providing interLATA services, take such
actions as are necessary to provide dialing parity for
intraLATA telephone toll service in accordance with such
subsections.
``(6) Access to conduits and rights of way.--The poles,
ducts, conduits, and rights of way of such Bell operating
company are available to competing providers of
telecommunications services in accordance with the requirements
of sections 242(a)(6) and 224(d).
``(7) Elimination of franchise limitations.--No unit of the
State or local government in such State or States enforces any
prohibition or limitation in violation of section 243.
``(8) Network functionality and accessibility.--The Bell
operating company will not install network features, functions,
or capabilities that do not comply with the standards
established pursuant to section 249.
``(9) Negotiation of terms and conditions.--The Bell
operating company has negotiated in good faith, under the
supervision of the State commission, in accordance with the
requirements of section 242(a)(8) with any other carrier or
person requesting access or interconnection.
``(c) Commission Review.--
``(1) Review of state decisions and certifications.--The
Commission shall review any verification submitted by a Bell
operating company pursuant to subsection (a). The Commission
may require such company to submit such additional information
as is necessary to validate any of the items of such
verification.
``(2) De novo review.--If--
``(A) a State commission does not have the
jurisdiction or authority to make the certification
required by subsection (b);
``(B) the State commission has failed to act within
90 days after the date a request for such certification
is filed with such State commission; or
``(C) the State commission has sought to impose a
term or condition in violation of section 243;
the local exchange carrier may request the Commission to
certify the carrier's compliance with the conditions specified
in subsection (b).
``(3) Consultation with the attorney general.--The
Commission shall notify the Attorney General promptly of any
verification submitted for approval under this subsection, and
shall identify any verification that, if approved, would
relieve the Bell operating company and its affiliates of the
prohibition concerning manufacturing contained in section
271(a). Before making any determination under this subsection,
the Commission shall consult with the Attorney General, and if
the Attorney General submits any comments in writing, such
comments shall be included in the record of the Commission's
decision. In consulting with and submitting comments to the
Commission under this paragraph, the Attorney General shall
provide to the Commission an evaluation of whether there is a
dangerous probability that the Bell operating company or its
affiliates would successfully use market power to substantially
impede competition in the market such company seeks to enter.
In consulting with and submitting comments to the Commission
under this paragraph with respect to a verification that, if
approved, would relieve the Bell operating company and its
affiliates of the prohibition concerning manufacturing
contained in section 271(a), the Attorney General shall also
provide to the Commission an evaluation of whether there is a
dangerous probability that the Bell operating company or its
affiliates would successfully use market power to substantially
impede competition in manufacturing.
``(4) Time for decision; public comment.--Unless such Bell
operating company consents to a longer period of time, the
Commission shall approve, disapprove, or approve with
conditions such verification within 90 days after the date of
its submission. During such 90 days, the Commission shall
afford interested persons an opportunity to present information
and evidence concerning such verification.
``(5) Standard for decision.--The Commission shall not
approve such verification unless the Commission determines
that--
``(A) the Bell operating company meets each of the
conditions required to be certified under subsection
(b); and
``(B) the agreement or statement submitted under
subsection (a)(2) complies with the requirements of
section 242 and the regulations thereunder.
``(d) Enforcement of Conditions.--
``(1) Commission authority.--If at any time after the
approval of a verification under subsection (c), the Commission
determines that a Bell operating company has ceased to meet any
of the conditions required to be certified under subsection
(b), the Commission may, after notice and opportunity for a
hearing--
``(A) issue an order to such company to correct the
deficiency;
``(B) impose a penalty on such company pursuant to
title V; or
``(C) suspend or revoke such approval.
``(2) Receipt and review of complaints.--The Commission
shall establish procedures for the review of complaints
concerning failures by Bell operating companies to meet
conditions required to be certified under subsection (b).
Unless the parties otherwise agree, the Commission shall act on
such complaint within 90 days.
``(3) State authority.--The authority of the Commission
under this subsection shall not be construed to preempt any
State commission from taking actions to enforce the conditions
required to be certified under subsection (b).
``(e) Authority To Provide InterLATA Services.--
``(1) Prohibition.--Except as provided in paragraph (2) and
subsections (f), (g), and (h), a Bell operating company or
affiliate thereof may not provide interLATA services.
``(2) Authority subject to certification.--A Bell operating
company or affiliate thereof may, in any States to which its
verification under subsection (a) applies, provide interLATA
services--
``(A) during any period after the effective date of
the Commission's approval of such verification pursuant
to subsection (c), and
``(B) until the approval of such verification is
suspended or revoked by the Commission pursuant to
subsection (c).
``(f) Exception for Previously Authorized Activities.--Subsection
(e) shall not prohibit a Bell operating company or affiliate from
engaging, at any time after the date of the enactment of this part, in
any activity as authorized by an order entered by the United States
District Court for the District of Columbia pursuant to section VII or
VIII(C) of the Modification of Final Judgment, if--
``(1) such order was entered on or before the date of the
enactment of this part, or
``(2) a request for such authorization was pending before
such court on the date of the enactment of this part.
``(g) Exceptions for Incidental Services.--Subsection (e) shall not
prohibit a Bell operating company or affiliate thereof, at any time
after the date of the enactment of this part, from providing interLATA
services for the purpose of--
``(1)(A) providing audio programming, video programming, or
other programming services to subscribers to such services of
such company;
``(B) providing the capability for interaction by such
subscribers to select or respond to such audio programming,
video programming, or other programming services; or
``(C) providing to distributors audio programming or video
programming that such company owns or controls, or is licensed
by the copyright owner of such programming (or by an assignee
of such owner) to distribute;
``(2) providing a telecommunications service, using the
transmission facilities of a cable system that is an affiliate
of such company, and that is located within a State in which
such company is not, on the date of the enactment of this part,
a provider of wireline telephone exchange service;
``(3) providing commercial mobile services in accordance
with section 332(c) of this Act and with the regulations
prescribed by the Commission pursuant to paragraph (8) of such
section;
``(4) providing a service that permits a customer that is
located in one local access and transport area to retrieve
stored information from, or file information for storage in,
information storage facilities of such company that are located
in another local access and transport area;
``(5) providing signaling information used in connection
with the provision of telephone exchange services to a local
exchange carrier that, together with any affiliated local
exchange carriers, has aggregate annual revenues of less than
$100,000,000; or
``(6) providing network control signaling information to,
and receiving such signaling information from, common carriers
offering interLATA services at any location within the area in
which such Bell operating company provides telephone exchange
services or exchange access.
``(h) Out-of-Region Services.--When a Bell operating company and
its affiliates have obtained Commission approval under subsection (c)
for each State in which such Bell operating company and its affiliates
provide telephone exchange service on the date of enactment of this
part, such Bell operating company and any affiliate thereof may,
notwithstanding subsection (e), provide interLATA services--
``(1) for calls originating in, and billed to a customer
in, a State in which neither such company nor any affiliate
provided telephone exchange service on such date of enactment;
or
``(2) for calls originating outside the United States.
``(i) IntraLATA Toll Dialing Parity.--Neither the Commission nor
any State may order any Bell operating company to provide dialing
parity for intraLATA telephone toll service in any State before the
date such company is authorized to provide interLATA services in such
State pursuant to this section.
``(j) Forbearance.--The Commission may not, pursuant to section
230, forbear from applying any provision of this section or any
regulation thereunder until at least 5 years after the date of
enactment of this part.
``(k) Sunset.--The provisions of this section shall cease to apply
in any local exchange market, defined by geographic area and class or
category of service, that the Commission and the State determines has
become subject to full and open competition.
``(l) Definitions.--As used in this section--
``(1) Audio programming.--The term `audio programming'
means programming provided by, or generally considered
comparable to programming provided by, a radio broadcast
station.
``(2) Video programming.--The term `video programming' has
the meaning provided in section 602.
``(3) Other programming services.--The term `other
programming services' means information (other than audio
programming or video programming) that the person who offers a
video programming service makes available to all subscribers
generally. For purposes of the preceding sentence, the terms
`information' and `makes available to all subscribers
generally' have the same meaning such terms have under section
602(13) of this Act.
``SEC. 246. COMPETITIVE SAFEGUARDS.
``(a) In General.--In accordance with the requirements of this
section and the regulations adopted thereunder, a Bell operating
company or any affiliate thereof providing any interLATA
telecommunications or interLATA information service, shall do so
through a subsidiary that is separate from the Bell operating company
or any affiliate thereof that provides telephone exchange service. The
requirements of this section shall not apply with respect to (1)
activities in which a Bell operating company or affiliate may engage
pursuant to section 245(f), or (2) incidental services in which a Bell
operating company or affiliate may engage pursuant to section 245(g),
other than services described in paragraph (4) of such section.
``(b) Transaction Requirements.--Any transaction between such a
subsidiary and a Bell operating company and any other affiliate of such
company shall be conducted on an arm's-length basis, in the same manner
as the Bell operating company conducts business with unaffiliated
persons, and shall not be based upon any preference or discrimination
in favor of the subsidiary arising out of the subsidiary's affiliation
with such company.
``(c) Separate Operation and Property.--A subsidiary required by
this section shall--
``(1) operate independently from the Bell operating company
or any affiliate thereof,
``(2) have separate officers, directors, and employees who
may not also serve as officers, directors, or employees of the
Bell operating company or any affiliate thereof,
``(3) not enter into any joint venture activities or
partnership with a Bell operating company or any affiliate
thereof,
``(4) not own any telecommunications transmission or
switching facilities in common with the Bell operating company
or any affiliate thereof, and
``(5) not jointly own or share the use of any other
property with the Bell operating company or any affiliate
thereof.
``(d) Books, Records, and Accounts.--Any subsidiary required by
this section shall maintain books, records, and accounts in a manner
prescribed by the Commission which shall be separate from the books,
records, and accounts maintained by a Bell operating company or any
affiliate thereof.
``(e) Provision of Services and Information.--A Bell operating
company or any affiliate thereof may not discriminate between a
subsidiary required by this section and any other person in the
provision or procurement of goods, services, facilities, or
information, or in the establishment of standards, and shall not
provide any goods, services, facilities or information to a subsidiary
required by this section unless such goods, services, facilities or
information are made available to others on reasonable,
nondiscriminatory terms and conditions.
``(f) Prevention of Cross-Subsidies.--A Bell operating company or
any affiliate thereof required to maintain a subsidiary under this
section shall establish and administer, in accordance with the
requirements of this section and the regulations prescribed thereunder,
a cost allocation system that prohibits any cost of providing interLATA
telecommunications or interLATA information services from being
subsidized by revenue from telephone exchange services and telephone
exchange access services. The cost allocation system shall employ a
formula that ensures that--
``(1) the rates for telephone exchange services and
exchange access are no greater than they would have been in the
absence of such investment in interLATA telecommunications or
interLATA information services (taking into account any decline
in the real costs of providing such telephone exchange services
and exchange access); and
``(2) such interLATA telecommunications or interLATA
information services bear a reasonable share of the joint and
common costs of facilities used to provide telephone exchange,
exchange access, and competitive services.
``(g) Assets.--The Commission shall, by regulation, ensure that the
economic risks associated with the provision of interLATA
telecommunications or interLATA information services by a Bell
operating company or any affiliate thereof (including any increases in
such company's cost of capital that occur as a result of the provision
of such services) are not borne by customers of telephone exchange
services and exchange access in the event of a business loss or
failure. Investments or other expenditures assigned to interLATA
telecommunications or interLATA information services shall not be
reassigned to telephone exchange service or exchange access.
``(h) Debt.--A subsidiary required by this section shall not obtain
credit under any arrangement that would--
``(1) permit a creditor, upon default, to have resource to
the assets of a Bell operating company; or
``(2) induce a creditor to rely on the tangible or
intangible assets of a Bell operating company in extending
credit.
``(i) Fulfillment of Certain Requests.--A Bell operating company or
an affiliate thereof shall--
``(1) fulfill any requests from an unaffiliated entity for
telephone exchange service and exchange access within a period
no longer than the period in which it provides such telephone
exchange service and exchange access to itself or to its
affiliates;
``(2) fulfill any such requests with telephone exchange
service and exchange access of a quality that meets or exceeds
the quality of telephone exchange services and exchange access
provided by the Bell operating company or its affiliates to
itself or its affiliates; and
``(3) provide telephone exchange service and exchange
access to all providers of intraLATA or interLATA telephone
toll services and interLATA information services at cost-based
rates that are not unreasonably discriminatory.
``(j) Charges for Access Services.--A Bell operating company or an
affiliate thereof shall charge the subsidiary required by this section
an amount for telephone exchange services, exchange access, and other
necessary associated inputs no less than the rate charged to any
unaffiliated entity for such access and inputs.
``(k) Sunset.--The provisions of this section shall cease to apply
to any Bell operating company in any State 18 months after the date
such Bell operating company is authorized pursuant to section 245(c) to
provide interLATA telecommunications services in such State.
``SEC. 247. UNIVERSAL SERVICE.
``(a) Joint Board To Preserve Universal Service.--Within 30 days
after the date of enactment of this part, the Commission shall convene
a Federal-State Joint Board under section 410(c) for the purpose of
recommending actions to the Commission and State commissions for the
preservation of universal service in furtherance of the purposes set
forth in section 1 of this Act. In addition to the members required
under section 410(c), one member of the Joint Board shall be a State-
appointed utility consumer advocate nominated by a national
organization of State utility consumer advocates.
``(b) Principles.--The Joint Board shall base policies for the
preservation of universal service on the following principles:
``(1) Just and reasonable rates.--A plan adopted by the
Commission and the States should ensure the continued viability
of universal service by maintaining quality services at just
and reasonable rates.
``(2) Definitions of included services; comparability in
urban and rural areas.--Such plan should recommend a definition
of the nature and extent of the services encompassed within
carriers' universal service obligations. Such plan should seek
to promote access to advanced telecommunications services and
capabilities, and to promote reasonably comparable services for
the general public in urban and rural areas, while maintaining
just and reasonable rates.
``(3) Adequate and sustainable support mechanisms.--Such
plan should recommend specific and predictable mechanisms to
provide adequate and sustainable support for universal service.
``(4) Equitable and nondiscriminatory contributions.--All
providers of telecommunications services should make an
equitable and nondiscriminatory contribution to the
preservation of universal service.
``(5) Educational access to advanced telecommunications
services.--To the extent that a common carrier establishes
advanced telecommunications services, such plan should include
recommendations to ensure access to advanced telecommunications
services for students in elementary and secondary schools.
``(6) Additional principles.--Such other principles as the
Board determines are necessary and appropriate for the
protection of the public interest, convenience, and necessity
and consistent with the purposes of this Act.
``(c) Definition of Universal Service.--In recommending a
definition of the nature and extent of the services encompassed within
carriers' universal service obligations under subsection (b)(2), the
Joint Board shall consider the extent to which--
``(1) a telecommunications service has, through the
operation of market choices by customers, been subscribed to by
a substantial majority of residential customers;
``(2) such service or capability is essential to public
health, public safety, or the public interest;
``(3) such service has been deployed in the public switched
telecommunications network; and
``(4) inclusion of such service within carriers' universal
service obligations is otherwise consistent with the public
interest, convenience, and necessity.
The Joint Board may, from time to time, recommend to the Commission
modifications in the definition proposed under subsection (b).
``(d) Report; Commission Response.--The Joint Board convened
pursuant to subsection (a) shall report its recommendations within 6
months after the date of enactment of this part. The Commission shall
complete any proceeding to act upon such recommendations and to comply
with the principles set forth in subsection (b) within one year after
such date of enactment.
``(e) State Authority.--Nothing in this section shall be construed
to restrict the authority of any State to adopt regulations imposing
universal service obligations on the provision of intrastate
telecommunications services.
``(f) Sunset.--The Joint Board established by this section shall
cease to exist 5 years after the date of enactment of this part.
``SEC. 248. PRICING FLEXIBILITY AND ABOLITION OF RATE-OF-RETURN
REGULATION.
``(a) Pricing Flexibility.--
``(1) Commission criteria.--Within 270 days after the date
of enactment of this part, the Commission shall complete all
actions necessary (including any reconsideration) to
establish--
``(A) criteria for determining whether a
telecommunications service or provider of such service
has become, or is substantially certain to become,
subject to competition, either within a geographic area
or within a class or category of service; and
``(B) appropriate flexible pricing procedures that
afford a regulated provider of a service described in
subparagraph (A) the opportunity to respond fairly to
such competition and that are consistent with the
protection of subscribers and the public interest,
convenience, and necessity.
In establishing criteria and procedures pursuant to this
paragraph, the Commission shall take into account and
accommodate, to the extent reasonable and consistent with the
purposes of this section, the criteria and procedures
established for such purposes by State commissions prior to the
effective date of the Commission's criteria and procedures
under this section.
``(2) State selection.--A State commission may utilize the
flexible pricing procedures or procedures (established under
paragraph (1)(B)) that are appropriate in light of the criteria
established under paragraph (1)(A).
``(3) Determinations.--The Commission, with respect to
rates for interstate or foreign communications, and State
commissions, with respect to rates for intrastate
communications, shall, upon application--
``(A) render determinations in accordance with the
criteria established under paragraph (1)(A) concerning
the services or providers that are the subject of such
application; and
``(B) upon a proper showing, implement appropriate
flexible pricing procedures consistent with paragraphs
(1)(B) and (2) with respect to such services or
providers.
The Commission and such State commission shall approve or
reject any such application within 180 days after the date of
its submission.
``(4) Response to competition.--Pricing flexibility
implemented pursuant to this subsection shall permit regulated
telecommunications providers to respond fairly to competition
by repricing services subject to competition, but shall not
have the effect of changing prices for noncompetitive services
or using noncompetitive services to subsidize competitive
services.
``(b) Abolition of Rate-of-Return Regulation.--Notwithstanding any
other provision of law, to the extent
that a carrier has complied with sections 242 and 244 of this part, the
Commission, with respect to rates for interstate or foreign
communications, and State commissions, with respect to rates for
intrastate communications, shall not require rate-of-return regulation.
``(c) Termination of Price and Other Regulation.--Notwithstanding
any other provision of law, to the extent that a carrier has complied
with sections 242 and 244 of this part, the Commission, with respect to
interstate or foreign communications, and State commissions, with
respect to intrastate communications, shall not, for any service that
is determined, in accordance with the criteria established under
subsection (a)(1)(A), to be subject to competition that effectively
prevents prices for such service that are unjust or unreasonable or
unjustly or unreasonably discriminatory--
``(1) regulate the prices for such service;
``(2) require the filing of a schedule of charges for such
service;
``(3) require the filing of any cost or revenue projections
for such service;
``(4) regulate the depreciation charges for facilities used
to provide such service; or
``(5) require prior approval for the construction or
extension of lines or other equipment for the provision of such
service.
``(d) Ability To Continue Affordable Voice-Grade Service.--
Notwithstanding subsections (a), (b), and (c), each State commission
shall, for a period of not more than 3 years, permit residential
subscribers to continue to receive only basic voice-grade local
telephone service equivalent to the service generally available to
residential subscribers on the date of enactment of this part, at just,
reasonable, and affordable rates. Determinations concerning the
affordability of rates for such services shall take into account the
rates generally available to residential subscribers on such date of
enactment and the pricing rules established by the States. Any
increases in the rates for such services for residential subscribers
that are not attributable to changes in consumer prices generally shall
be permitted in any proceeding commenced after the date of enactment of
this section upon a showing that such increase is necessary to ensure
the continued availability of universal service, prevent economic
disadvantages for one or more service providers, and is in the public
interest. Such increase in rates shall be minimized to the greatest
extent practical and shall be implemented over a time period of not
more than 3 years after the the date of enactment of this section. The
requirements of this subsection shall not apply to any rural telephone
company if the rates for basic voice-grade local telephone service of
that company are not subject to regulation by a State commission on the
date of enactment of this part.
``(e) Interexchange Service.--The rates charged by providers of
interexchange telecommunications service to customers in rural and high
cost areas shall be maintained at levels no higher than those charged
by each such provider to its customers in urban areas.
``(f) Exception.--In the case of commercial mobile services, the
provisions of section 332(c)(1) shall apply in lieu of the provisions
of this section.
``(g) Avoidance of Redundant Regulations.--
``(1) Commission regulations.--Nothing in this section
shall be construed to prohibit the Commission from enforcing
regulations prescribed prior to the date of enactment of this
part in fulfilling the requirements of this section, to the
extent that such regulations are consistent with the provisions
of this section.
``(2) State regulations.--Nothing in this section shall be
construed to prohibit any State commission from enforcing
regulations prescribed prior to the effective date of the
Commission's criteria and procedures under this section in
fulfilling the requirements of this section, or from
prescribing regulations after such date, to the extent such
regulations are consistent--
``(A) with the provisions of this section; and
``(B) after such effective date, with such criteria
and procedures.
``SEC. 249. NETWORK FUNCTIONALITY AND ACCESSIBILITY.
``(a) Functionality and Accessibility.--The duty of a common
carrier under section 201(a) to furnish communications service includes
the duty to furnish that service in accordance with any standards
established pursuant to this section.
``(b) Coordination for Interconnectivity.--The Commission--
``(1) shall establish procedures for Commission oversight
of coordinated network planning by common carriers and other
providers of telecommunications services for the effective and
efficient interconnection of public switched networks; and
``(2) may participate, in a manner consistent with its
authority and practice prior to the date of enactment of this
section, in the development by appropriate industry standards-
setting organizations of interconnection standards that promote
access to--
``(A) network capabilities and services by
individuals with disabilities; and
``(B) information services by subscribers to
telephone exchange service furnished by a rural
telephone company.
``(c) Accessibility for Individuals With Disabilities.--
``(1) Accessibility.--Within 1 year after the date of
enactment of this section, the Commission shall prescribe such
regulations as are necessary to ensure that, if readily
achievable, advances in network services deployed by common
carriers, and telecommunications equipment and customer
premises equipment manufactured for use in conjunction with
network services, shall be accessible and usable by individuals
with disabilities, including individuals with functional
limitations of hearing, vision, movement, manipulation, speech,
and interpretation of information. Such regulations shall
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. Throughout the process of developing such regulations,
the Commission shall coordinate and consult with
representatives of individuals with disabilities and interested
equipment and service providers to ensure their concerns and
interests are given full consideration in such process.
``(2) Compatibility.--Such regulations shall require that
whenever the requirements of paragraph (1) are not readily
achievable, the local exchange carrier that deploys the network
service shall ensure that the 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 is not readily
achievable.
``(3) Readily Achieveable.--The term `readily achievable'
has the meaning given it by section 301(g) of the Americans
with Disabilities Act 1990 (42 U.S.C. 12102(g)).
``(4) Effective date.--The regulations required by this
subsection shall become effective 18 months after the date of
enactment of this part.
``(d) Private Rights of Actions Prohibited.--Nothing in this
section shall be construed to authorize any private right of action to
enforce any requirement of this section or any regulation thereunder.
The Commission shall have exclusive jurisdiction with respect to any
complaint under this section.
``SEC. 250. MARKET ENTRY BARRIERS.
``(a) Elimination of Barriers.--Within 15 months after the date of
enactment of this part, the Commission shall complete a proceeding for
the purpose of identifying and eliminating, by regulations pursuant to
its authority under this Act (other than this section), market entry
barriers for entrepreneurs and other small businesses in the provision
and ownership of telecommunications services and information services,
or in the provision of parts or services to providers of
telecommunications services and information services.
``(b) National Policy.--In carrying out subsection (a), the
Commission shall seek to promote the policies and purposes of this Act
favoring diversity of media voices, vigorous economic competition,
technological advancement, and promotion of the public interest,
convenience, and necessity.
``(c) Periodic Review.--Every 3 years following the completion of
the proceeding required by subsection (a), the Commission shall review
and report to Congress on--
``(1) any regulations prescribed to eliminate barriers
within its jurisdiction that are identified under subsection
(a) and that can be prescribed consistent with the public
interest, convenience, and necessity; and
``(2) the statutory barriers identified under subsection
(a) that the Commission recommends be eliminated, consistent
with the public interest, convenience, and necessity.
``SEC. 251. ILLEGAL CHANGES IN SUBSCRIBER CARRIER SELECTIONS.
``(a) Prohibition .--No common carrier shall submit or execute a
change in a subscriber's selection of a provider of telephone exchange
service or telephone toll service except in accordance with such
verification procedures as the Commission shall prescribe. Nothing in
this section shall preclude any State commission from enforcing such
procedures with respect to intrastate services.
``(b) Liability for Charges.--Any common carrier that violates the
verification procedures described in subsection (a) and that collects
charges for telephone exchange service or telephone toll service from a
subscriber shall be liable to the carrier previously selected by the
subscriber in an amount equal to all charges paid by such subscriber
after such violation, in accordance with such procedures as the
Commission may prescribe. The remedies provided by this subsection are
in addition to any other remedies available by law.
``SEC. 252. STUDY.
``Within 3 years after the date of enactment of this part, the
Commission shall conduct a study that--
``(1) reviews the definition of, and the adequacy of
support for, universal service, and evaluates the extent to
which universal service has been protected and access to
advanced services has been facilitated pursuant to this part
and the plans and regulations thereunder;
``(2) evaluates the extent to which access to advanced
telecommunications services for students in elementary and
secondary school classrooms has been attained pursuant to
section 247(b)(5); and
``(3) determines whether the regulations established under
section 249(c) have ensured that advances in network services
by providers of telecommunications services and information
services are accessible and usable by individuals with
disabilities.''.
(b) Consolidated Rulemaking Proceeding.--The Commission shall
conduct a single consolidated rulemaking proceeding to prescribe or
amend regulations necessary to implement the requirements of--
(1) part II of title II of the Act as added by subsection
(a) of this section;
(2) section 222 as amended by section 104 of this Act; and
(3) section 224 as amended by section 105 of this Act.
(c) Designation of Part I.--Title II of the Act is further amended
by inserting before the heading of section 201 the following new
heading:
``PART I--REGULATION OF DOMINANT COMMON CARRIERS''.
(d) Sylistic Consistency.--The Act is amended so that--
(1) the designation and heading of each title of the Act
shall be in the form and typeface of the designation and
heading of this title of this Act; and
(2) the designation and heading of each part of each title
of the Act shall be in the form and typeface of the designation
and heading of part I of title II of the Act, as amended by
subsection (c).
(e) Conforming Amendments.--
(1) Federal-state jurisdiction.--Section 2(b) of the Act
(47 U.S.C. 152(b)) is amended by inserting ``part II of title
II,'' after ``227, inclusive,''.
(2) Forfeitures.--Sections 503(b)(1) and 504(b) of such Act
(47 U.S.C. 503(b)) are each amended by inserting ``part I of''
before ``title II''.
SEC. 102. COMPETITION IN MANUFACTURING, INFORMATION SERVICES, ALARM
SERVICES, AND PAY-PHONE SERVICES.
(a) Competition in Manufacturing, Information Services, and Alarm
Services.--Title II of the Act is amended by adding at the end of part
II (as added by section 101) the following new part:
``PART III--SPECIAL AND TEMPORARY PROVISIONS
``SEC. 271. MANUFACTURING BY BELL OPERATING COMPANIES.
``(a) Limitations on Manufacturing.--
``(1) Access and interconnection required.--It shall be
unlawful for a Bell operating company, directly or through an
affiliate, to manufacture telecommunications equipment or
customer premises equipment, until the Commission has approved
under section 245(c) verifications that such Bell operating
company, and each Bell operating company with which it is
affiliated, are in compliance with the access and
interconnection requirements of part II of this title.
``(2) Separate subsidiary required.--During the first 18
months after the expiration of the limitation contained in
paragraph (1), a Bell operating company may engage in
manufacturing telecommunications equipment or customer premises
equipment only through a separate subsidiary established and
operated in accordance with section 246.
``(b) Collaboration; Research and Royalty Agreements.--
``(1) Collaboration.--Subsection (a) shall not prohibit a
Bell operating company from engaging 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.
``(2) Research; royalty agreements.--Subsection (a) shall
not prohibit a Bell operating company, directly or through an
subsidiary, from--
``(A) engaging in any research activities related
to manufacturing, and
``(B) entering into royalty agreements with
manufacturers of telecommunications equipment.
``(c) Information Requirements.--
``(1) 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) Disclosure of information.--A Bell operating company
shall not disclose any information required to be filed under
paragraph (1) unless that information has been 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 have access to
the information with respect to the protocols and technical
requirements for connection with and use of telephone exchange
service facilities that a Bell operating company makes
available to any manufacturing affiliate or any unaffiliated
manufacturer.
``(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.
``(d) Manufacturing Limitations for Standard-Setting
Organizations.--
``(1) Application to bell communications research or
manufacturers.--Bell Communications Research, Inc., or any
successor entity or affiliate--
``(A) shall not be considered a Bell operating
company or a successor or assign of a Bell operating
company at such time as it is no longer an affiliate of
any Bell operating company; and
``(B) notwithstanding paragraph (3), shall not
engage in manufacturing telecommunications equipment or
customer premises equipment as long as it is an
affiliate of more than 1 otherwise unaffiliated Bell
operating company or successor or assign of any such
company.
Nothing in this subsection prohibits Bell Communications
Research, Inc., or any successor entity, from engaging in any
activity in which it is lawfully engaged on the date of
enactment of this subsection. Nothing provided in this
subsection shall render Bell Communications Research, Inc., or
any successor entity, a common carrier under title II of this
Act. Nothing in this section restricts any manufacturer from
engaging in any activity in which it is lawfully engaged on the
date of enactment of this section.
``(2) Proprietary information.--Any entity which
establishes standards for telecommunications equipment or
customer premises equipment, or generic network requirements
for such equipment, or certifies telecommunications equipment,
or customer premises equipment, shall be prohibited from
releasing or otherwise using any proprietary information,
designated as such by its owner, in its possession as a result
of such activity, for any purpose other than purposes
authorized in writing by the owner of such information, even
after such entity ceases to be so engaged.
``(3) Manufacturing safeguards.--(A) Except as prohibited
in paragraph (1), and subject to paragraph (6), any entity
which certifies telecommunications equipment or customer
premises equipment manufactured by an unaffiliated entity shall
only manufacture a particular class of telecommunications
equipment or customer premises equipment for which it is
undertaking or has undertaken, during the previous 18 months,
certification activity for such class of equipment through a
separate affiliate.
``(B) Such separate affiliate shall--
``(i) maintain books, records, and accounts
separate from those of the entity that certifies such
equipment, consistent with generally acceptable
accounting principles;
``(ii) not engage in any joint manufacturing
activities with such entity; and
``(iii) have segregated facilities and separate
employees with such entity.
``(C) Such entity that certifies such equipment shall--
``(i) not discriminate in favor of its
manufacturing affiliate in the establishment of
standards, generic requirements, or product
certification;
``(ii) not disclose to the manufacturing affiliate
any proprietary information that has been received at
any time from an unaffiliated manufacturer, unless
authorized in writing by the owner of the information;
and
``(iii) not permit any employee engaged in product
certification for telecommunications equipment or
customer premises equipment to engage jointly in sales
or marketing of any such equipment with the affiliated
manufacturer.
``(4) Standard-setting entities.--Any entity which is not
an accredited standards development organization and which
establishes industry-wide standards for telecommunications
equipment or customer premises equipment, or industry-wide
generic network requirements for such equipment, or which
certifies telecommunications equipment or customer premises
equipment manufactured by an unaffiliated entity, shall--
``(A) establish and publish any industry-wide
standard for, industry-wide generic requirement for, or
any substantial modification of an existing industry-
wide standard or industry-wide generic requirement for,
telecommunications equipment or customer premises
equipment only in compliance with the following
procedure:
``(i) such entity shall issue a public
notice of its consideration of a proposed
industry-wide standard or industry-wide generic
requirement;
``(ii) such entity shall issue a public
invitation to interested industry parties to
fund and participate in such efforts on a
reasonable and nondiscriminatory basis,
administered in such a manner as not to
unreasonably exclude any interested industry
party;
``(iii) such entity shall publish a text
for comment by such parties as have agreed to
participate in the process pursuant to clause
(ii), provide such parties a full opportunity
to submit comments, and respond to comments
from such parties;
``(iv) such entity shall publish a final
text of the industry-wide standard or industry-
wide generic requirement, including the
comments in their entirety, of any funding
party which requests to have its comments so
published; and
``(v) such entity shall attempt, prior to
publishing a text for comment, to agree with
the funding parties as a group on a mutually
satisfactory dispute resolution process which
such parties shall utilize as their sole
recourse in the event of a dispute on technical
issues as to which there is disagreement
between any funding party and the entity
conducting such activities, except that if no
dispute resolution process is agreed to by all
the parties, a funding party may utilize the
dispute resolution procedures established
pursuant to paragraph (5) of this subsection;
``(B) engage in product certification for
telecommunications equipment or customer premises
equipment manufactured by unaffiliated entities only
if--
``(i) such activity is performed pursuant
to published criteria;
``(ii) such activity is performed pursuant
to auditable criteria; and
``(iii) such activity is performed pursuant
to available industry-accepted testing methods
and standards, where applicable, unless
otherwise agreed upon by the parties funding
and performing such activity;
``(C) not undertake any actions to monopolize or
attempt to monopolize the market for such services; and
``(D) not preferentially treat its own
telecommunications equipment or customer premises
equipment, or that of its affiliate, over that of any
other entity in establishing and publishing industry-
wide standards or industry-wide generic requirements
for, and in certification of, telecommunications
equipment and customer premises equipment.
``(5) Alternate dispute resolution.--Within 90 days after
the date of enactment of this section, the Commission shall
prescribe a dispute resolution process to be utilized in the
event that a dispute resolution process is not agreed upon by
all the parties when establishing and publishing any industry-
wide standard or industry-wide generic requirement for
telecommunications equipment or customer premises equipment,
pursuant to paragraph (4)(A)(v). The Commission shall not
establish itself as a party to the dispute resolution process.
Such dispute resolution process shall permit any funding party
to resolve a dispute with the entity conducting the activity
that significantly affects such funding party's interests, in
an open, nondiscriminatory, and unbiased fashion, within 30
days after the filing of such dispute. Such disputes may be
filed within 15 days after the date the funding party receives
a response to its comments from the entity conducting the
activity. The Commission shall establish penalties to be
assessed for delays caused by referral of frivolous disputes to
the dispute resolution process. The overall intent of
establishing this dispute resolution provision is to enable all
interested funding parties an equal opportunity to influence
the final resolution of the dispute without significantly
impairing the efficiency, timeliness, and technical quality of
the activity.
``(6) Sunset.--The requirements of paragraphs (3) and (4)
shall terminate for the particular relevant activity when the
Commission determines that there are alternative sources of
industry-wide standards, industry-wide generic requirements, or
product certification for a particular class of
telecommunications equipment or customer premises equipment
available in the United States. Alternative sources shall be
deemed to exist when such sources provide commercially viable
alternatives that are providing such services to customers. The
Commission shall act on any application for such a
determination within 90 days after receipt of such application,
and shall receive public comment on such application.
``(7) Administration and enforcement authority.--For the
purposes of administering this subsection and the regulations
prescribed thereunder, the Commission shall have the same
remedial authority as the Commission has in administering and
enforcing the provisions of this title with respect to any
common carrier subject to this Act.
``(8) Definitions.--For purposes of this subsection:
``(A) The term `affiliate' shall have the same
meaning as in section 3 of this Act, except that, for
purposes of paragraph (1)(B)--
``(i) an aggregate voting equity interest
in Bell Communications Research, Inc., of at
least 5 percent of its total voting equity,
owned directly or indirectly by more than 1
otherwise unaffiliated Bell operating company,
shall constitute an affiliate relationship; and
``(ii) a voting equity interest in Bell
Communications Research, Inc., by any otherwise
unaffiliated Bell operating company of less
than 1 percent of Bell Communications
Research's total voting equity shall not be
considered to be an equity interest under this
paragraph.
``(B) The term `generic requirement' means a
description of acceptable product attributes for use by
local exchange carriers in establishing product
specifications for the purchase of telecommunications
equipment, customer premises equipment, and software
integral thereto.
``(C) The term `industry-wide' means activities
funded by or performed on behalf of local exchange
carriers for use in providing wireline local exchange
service whose combined total of deployed access lines
in the United States constitutes at least 30 percent of
all access lines deployed by telecommunications
carriers in the United States as of the date of
enactment.
``(D) The term `certification' means any technical
process whereby a party determines whether a product,
for use by more than one local exchange carrier,
conforms with the specified requirements pertaining to
such product.
``(E) The term `accredited standards development
organization' means an entity composed of industry
members which has been accredited by an institution
vested with the responsibility for standards
accreditation by the industry.
``(e) Bell Operating Company Equipment Procurement and Sales.--
``(1) Objective basis.--Each Bell operating company and any
entity acting on behalf of a Bell operating company shall make
procurement decisions and award all supply contracts for
equipment, services, and software on the basis of an objective
assessment of price, quality, delivery, and other commercial
factors.
``(2) Sales restrictions.--A Bell operating company engaged
in manufacturing may not restrict sales to any local exchange
carrier of telecommunications equipment, including software
integral to the operation of such equipment and related
upgrades.
``(3) Protection of proprietary information.--A Bell
operating company and any entity it owns or otherwise controls
shall protect the proprietary information submitted for
procurement decisions from release not specifically authorized
by the owner of such information.
``(f) Administration and Enforcement 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 or any affiliate thereof as the Commission has in administering
and enforcing the provisions of this title with respect to any common
carrier subject to this Act.
``(g) Exception for Previously Authorized Activities.--Nothing in
this section shall prohibit a Bell operating company or affiliate from
engaging, at any time after the date of the enactment of this part, in
any activity as authorized by an order entered by the United States
District Court for the District of Columbia pursuant to section VII or
VIII(C) of the Modification of Final Judgment, if--
``(1) such order was entered on or before the date of the
enactment of this part, or
``(2) a request for such authorization was pending before
such court on the date of the enactment of this part.
``(h) Antitrust Laws.--Nothing in this section shall be construed
to modify, impair, or supersede the applicability of any of the
antitrust laws.
``(i) Definition.--As used in this section, the term
`manufacturing' has the same meaning as such term has under the
Modification of Final Judgment.
``SEC. 272. ELECTRONIC PUBLISHING BY BELL OPERATING COMPANIES.
``(a) Limitations.--No Bell operating company or any affiliate may
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, except that nothing in this section shall
prohibit a separated affiliate or electronic publishing joint venture
operated in accordance with this section from engaging in the provision
of electronic publishing.
``(b) Separated Affiliate or Electronic Publishing Joint Venture
Requirements.--A separated affiliate or electronic publishing joint
venture shall be operated independently from the Bell operating
company. Such separated affiliate or joint venture and the Bell
operating company with which it is affiliated shall--
``(1) maintain separate books, records, and accounts and
prepare separate financial statements;
``(2) not incur debt in a manner that would permit a
creditor of the separated affiliate or joint venture upon
default to have recourse to the assets of the Bell operating
company;
``(3) carry out transactions (A) in a manner consistent
with such independence, (B) pursuant to written contracts or
tariffs that are filed with the Commission and made publicly
available, and (C) in a manner that is auditable in accordance
with generally accepted auditing standards;
``(4) value any assets that are transferred directly or
indirectly from the Bell operating company to a separated
affiliate or joint venture, and record any transactions by
which such assets are transferred, in accordance with such
regulations as may be prescribed by the Commission or a State
commission to prevent improper cross subsidies;
``(5) between a separated affiliate and a Bell operating
company--
``(A) have no officers, directors, and employees in
common after the effective date of this section; and
``(B) own no property in common;
``(6) not use for the marketing of any product or service
of the separated affiliate or joint venture, the name,
trademarks, or service marks of an existing Bell operating
company except for names, trademarks, or service marks that are
or were used in common with the entity that owns or controls
the Bell operating company;
``(7) not permit the Bell operating company--
``(A) to perform hiring or training of personnel on
behalf of a separated affiliate;
``(B) to perform the purchasing, installation, or
maintenance of equipment on behalf of a separated
affiliate, except for telephone service that it
provides under tariff or contract subject to the
provisions of this section; or
``(C) to perform research and development on behalf
of a separated affiliate;
``(8) each have performed annually a compliance review--
``(A) that is conducted by an independent entity
for the purpose of determining compliance during the
preceding calendar year with any provision of this
section; and
``(B) the results of which are maintained by the
separated affiliate or joint venture and the Bell
operating company for a period of 5 years subject to
review by any lawful authority; and
``(9) within 90 days of receiving a review described in
paragraph (8), file a report of any exceptions and 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) Joint Marketing.--
``(1) In general.--Except as provided in paragraph (2)--
``(A) a Bell operating company shall not carry out
any promotion, marketing, sales, or advertising for or
in conjunction with a separated affiliate; and
``(B) 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.
``(2) Permissible joint activities.--
``(A) 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.
``(B) 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 if (i) the Bell operating
company only provides facilities, services, and basic
telephone service information as authorized by this
section, and (ii) the Bell operating company does not
own such teaming or business arrangement.
``(C) 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, if 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.
``(d) Bell Operating Company Requirement.--A Bell operating company
under common ownership or control with a separated affiliate or
electronic publishing joint venture shall provide network access and
interconnections for basic telephone service to electronic publishers
at just and reasonable rates that are tariffed (so long as rates for
such services are subject to regulation) and that are not higher on a
per-unit basis than those charged for such services to any other
electronic publisher or any separated affiliate engaged in electronic
publishing.
``(e) Private Right of Action.--
``(1) Damages.--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 this Act, and such Bell operating company, affiliate, or separated
affiliate shall be liable as provided in section 206 of this Act;
except that damages may not be awarded for a violation that is
discovered by a compliance review as required by subsection (b)(7) of
this section and corrected within 90 days.
``(2) Cease and desist orders.--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.
``(f) Separated Affiliate Reporting Requirement.--Any separated
affiliate under this section shall file with the Commission annual
reports in a form substantially equivalent to the Form 10-K required by
regulations of the Securities and Exchange Commission.
``(g) Effective Dates.--
``(1) 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.
``(2) Sunset.--The provisions of this section shall not
apply to conduct occurring after June 30, 2000.
``(h) Definition of Electronic Publishing.--
``(1) In general.--The term `electronic publishing' means
the dissemination, provision, publication, or sale to an
unaffiliated entity or person, of any one or more of the
following: news (including sports); entertainment (other than
interactive games); business, financial, legal, consumer, or
credit materials; editorials, columns, or features;
advertising; photos or images; archival or research material;
legal notices or public records; scientific, educational,
instructional, technical, professional, trade, or other
literary materials; or other like or similar information.
``(2) Exceptions.--The term `electronic publishing' shall
not include the following services:
``(A) Information access, as that term is defined
by the Modification of Final Judgment.
``(B) The transmission of information as a common
carrier.
``(C) 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.
``(D) Voice storage and retrieval services,
including voice messaging and electronic mail services.
``(E) Data processing or transaction processing
services that do not involve the generation or
alteration of the content of information.
``(F) Electronic billing or advertising of a Bell
operating company's regulated telecommunications
services.
``(G) Language translation or data format
conversion.
``(H) The provision of information necessary for
the management, control, or operation of a telephone
company telecommunications system.
``(I) The provision of directory assistance that
provides names, addresses, and telephone numbers and
does not include advertising.
``(J) Caller identification services.
``(K) Repair and provisioning databases and credit
card and billing validation for telephone company
operations.
``(L) 911-E and other emergency assistance
databases.
``(M) 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.
``(N) Any upgrades to these network services that
do not involve the generation or alteration of the
content of information.
``(O) Video programming or full motion video
entertainment on demand.
``(i) Additional 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 any wireline
telephone exchange service, or wireline telephone exchange
service facility, provided by a Bell operating company in a
telephone exchange area, except that such term does not
include--
``(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) a commercial mobile service.
``(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 `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.
``(6) The term `entity' means any organization, and
includes corporations, partnerships, sole proprietorships,
associations, and joint ventures.
``(7) The term `inbound telemarketing' means the marketing
of property, goods, or services by telephone to a customer or
potential customer who initiated the call.
``(8) 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.
``(9) 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.
``(10) The term `Bell operating company' has the meaning
provided in section 3, except that such term includes any
entity or corporation that is owned or controlled by such a
company (as so defined) but does not include an electronic
publishing joint venture owned by such an entity or
corporation.
``SEC. 273. ALARM MONITORING AND TELEMESSAGING SERVICES BY BELL
OPERATING COMPANIES.
``(a) Delayed Entry Into Alarm Monitoring.--
``(1) Prohibition.--No Bell operating company or affiliate
thereof shall engage in the provision of alarm monitoring
services before the date which is 6 years after the date of
enactment of this part.
``(2) Existing activities.--Paragraph (1) shall not apply
to any provision of alarm monitoring services in which a Bell
operating company or affiliate is lawfully engaged as of
January 1, 1995.
``(b) Nondiscrimination.--A common carrier engaged in the provision
of alarm monitoring services or telemessaging services shall--
``(1) provide nonaffiliated entities, upon reasonable
request, with the network services it provides to its own alarm
monitoring or telemessaging operations, on nondiscriminatory
terms and conditions; and
``(2) not subsidize its alarm monitoring services or its
telemessaging services either directly or indirectly from
telephone exchange service operations.
``(c) Expedited Consideration of Complaints.--The Commission shall
establish procedures for the receipt and review of complaints
concerning violations of subsection (b) or the regulations thereunder
that result in material financial harm to a provider of alarm
monitoring service or telemessaging service. Such procedures shall
ensure that the Commission will make a final determination with respect
to any such complaint 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, order the common carrier and its affiliates to cease
engaging in such violation pending such final determination.
``(d) Definitions.--As used in this section:
``(1) Alarm monitoring service.--The term `alarm monitoring
service' means a service that uses a device located at a
residence, place of business, or other fixed premises--
``(A) to receive signals from other devices located
at or about such premises regarding a possible threat
at such premises to life, safety, or property, from
burglary, fire, vandalism, bodily injury, or other
emergency, and
``(B) to transmit a signal regarding such threat by
means of transmission facilities of a Bell operating
company or one of its affiliates to a remote monitoring
center to alert a person at such center of the need to
inform the customer or another person or police, fire,
rescue, security, or public safety personnel of such
threat,
but does not include a service that uses a medical monitoring
device attached to an individual for the automatic surveillance
of an ongoing medical condition.
``(2) Telemessaging services.--The term `telemessaging
services' means voice mail and voice storage and retrieval
services provided over telephone lines for telemessaging
customers and any live operator services used to answer,
record, transcribe, and relay messages (other than
telecommunications relay services) from incoming telephone
calls on behalf of the telemessaging customers (other than any
service incidental to directory assistance).
``SEC. 274. PROVISION OF PAYPHONE SERVICE.
``(a) Nondiscrimination Safeguards.--After the effective date of
the rules prescribed pursuant to subsection (b), any Bell operating
company that provides payphone service--
``(1) shall not subsidize its payphone service directly or
indirectly with revenue from its telephone exchange service or
its exchange access service; and
``(2) shall not prefer or discriminate in favor of it
payphone service.
``(b) Regulations.--
``(1) Contents of regulations.--In order to promote
competition among payphone service providers and promote the
widespread deployment of payphone services to the benefit of
the general public, within 9 months after the date of enactment
of this section, the Commission shall take all actions
necessary (including any reconsideration) to prescribe
regulations that--
``(A) establish a per call compensation plan to
ensure that all payphone services providers are fairly
compensated for each and every completed intrastate and interstate call
using their payphone, except that emergency calls and
telecommunications relay service calls for hearing disabled individuals
shall not be subject to such compensation;
``(B) discontinue the intrastate and interstate
carrier access charge payphone service elements and
payments in effect on the date of enactment of this
section, and all intrastate and interstate payphone
subsidies from basic exchange and exchange access
revenues, in favor of a compensation plan as specified
in subparagraph (A);
``(C) prescribe a set of nonstructural safeguards
for Bell operating company payphone service to
implement the provisions of paragraphs (1) and (2) of
subsection (a), which safeguards shall, at a minimum,
include the nonstructural safeguards equal to those
adopted in the Computer Inquiry-III CC Docket No. 90-
623 proceeding; and
``(D) provide for Bell operating company payphone
service providers to have the same right that
independent payphone providers have to negotiate with
the location provider on selecting and contracting
with, and, subject to the terms of any agreement with
the location provider, to select and contract with the
carriers that carry interLATA calls from their
payphones, and provide for all payphone service
providers to have the right to negotiate with the
location provider on selecting and contracting with,
and, subject to the terms of any agreement with the
location provider, to select and contract with the
carriers that carry intraLATA calls from their
payphones.
``(2) Public interest telephones.--In the rulemaking
conducted pursuant to paragraph (1), the Commission shall
determine whether public interest payphones, which are provided
in the interest of public health, safety, and welfare, in
locations where there would otherwise not be a payphone, should
be maintained, and if so, ensure that such public interest
payphones are supported fairly and equitably.
``(3) Existing contracts.--Nothing in this section shall
affect any existing contracts between location providers and
payphone service providers or interLATA or intraLATA carriers
that are in force and effect as of the date of the enactment of
this Act.
``(c) State Preemption.--To the extent that any State requirements
are inconsistent with the Commission's regulations, the Commission's
regulations on such matters shall preempt State requirements.
``(d) Definition.--As used in this section, the term `payphone
service' means the provision of public or semi-public pay telephones,
the provision of inmate telephone service in correctional institutions,
and any ancillary services.''.
SEC. 103. FORBEARANCE FROM REGULATION.
Part I of title II of the Act (as redesignated by section 101(c) of
this Act) is amended by inserting after section 229 (47 U.S.C. 229) the
following new section:
``SEC. 230. FORBEARANCE FROM REGULATION.
``(a) Authority to Forbear.--The Commission shall forbear from
applying any provision of this part or part II (other than sections
201, 202, 208, 243, and 248), or any regulation of the Commission
thereunder, to a common carrier or service, or class of carriers or
services, in any or some of its or their geographic markets, unless the
Commission determines that--
``(1) enforcement of such provision or regulation is
necessary to ensure that the charges, practices,
classifications, or regulations by, for, or in connection with
that carrier or service are just and reasonable and are not unjustly or
unreasonably discriminatory;
``(2) enforcement of such regulation or provision is not
necessary for the protection of consumers; or
``(3) forbearance from applying such provision or
regulation is inconsistent with the public interest.
``(b) Competitive Effect To Be Weighed.--In making the
determination under subsection (a)(3), the Commission shall consider
whether forbearance from enforcing the provision or regulation will
promote competitive market conditions, including the extent to which
such forbearance will enhance competition among providers of
telecommunications services. If the Commission determines that such
forbearance will promote competition among providers of
telecommunications services, that determination may be the basis for a
Commission finding that forbearance is in the public interest.
``(c) Commercial Mobile Service Joint Marketing.--Notwithstanding
section 22.903 of the Commission's regulations (47 C.F.R. 22.903) or
any other Commission regulation, or any judicial decree or proposed
judicial decree, a Bell operating company or any other company may,
except as provided in sections 242(d) and 246 as they relate to
wireline service, jointly market and sell commercial mobile services in
conjunction with telephone exchange service, exchange access, intraLATA
telecommunications service, interLATA telecommunications service, and
information services.''.
SEC. 104. ONLINE FAMILY EMPOWERMENT.
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. 230. PROTECTION FOR PRIVATE BLOCKING AND SCREENING OF OFFENSIVE
MATERIAL; FCC REGULATION OF COMPUTER SERVICES PROHIBITED.
``(a) Findings.--The Congress finds the following:
``(1) The rapidly developing array of Internet and other
interactive computer services available to individual Americans
represent an extraordinary advance in the availability of
educational and informational resources to our citizens.
``(2) These services offer users a great degree of control
over the information that they receive, as well as the
potential for even greater control in the future as technology
develops.
``(3) The Internet and other interactive computer services
offer a forum for a true diversity of political discourse,
unique opportunities for cultural development, and myriad
avenues for intellectual activity.
``(4) The Internet and other interactive computer services
have flourished, to the benefit of all Americans, with a
minimum of government regulation.
``(5) Increasingly Americans are relying on interactive
media for a variety of political, educational, cultural, and
entertainment services.
``(b) Policy.--It is the policy of the United States to--
``(1) promote the continued development of the Internet and
other interactive computer services and other interactive
media;
``(2) preserve the vibrant and competitive free market that
presently exists for the Internet and other interactive
computer services, unfettered by State or Federal regulation;
``(3) encourage the development of technologies which
maximize user control over the information received by
individuals, families, and schools who use the Internet and
other interactive computer services;
``(4) remove disincentives for the development and
utilization of blocking and filtering technologies that empower
parents to restrict their children's access to objectionable or
inappropriate online material; and
``(5) ensure vigorous enforcement of criminal laws to deter
and punish trafficking in obscenity, stalking, and harassment
by means of computer.
``(c) Protection for `Good Samaritan' Blocking and Screening of
Offensive Material.--No provider or user of interactive computer
services shall be treated as the publisher or speaker of any
information provided by an information content provider. No provider or
user of interactive computer services shall be held liable on account
of--
``(1) any action voluntarily taken in good faith to
restrict access to material that the provider or user considers
to be obscene, lewd, lascivious, filthy, excessively violent,
harassing, or otherwise objectionable, whether or not such
material is constitutionally protected; or
``(2) any action taken to make available to information
content providers or others the technical means to restrict
access to material described in paragraph (1).
``(d) FCC Regulation of the Internet and Other Interactive Computer
Services Prohibited.--Nothing in this Act shall be construed to grant
any jurisdiction or authority to the Commission with respect to content
or any other regulation of the Internet or other interactive computer
services.
``(e) Effect on Other Laws.--
``(1) No effect on criminal law.--Nothing in this section
shall be construed to impair the enforcement of section 223 of
this Act, chapter 71 (relating to obscenity) or 110 (relating
to sexual exploitation of children) of title 18, United States
Code, or any other Federal criminal statute.
``(2) No effect on intellectual property law.--Nothing in
this section shall be construed to limit or expand any law
pertaining to intellectual property.
``(3) In general.--Nothing in this section shall be
construed to prevent any State from enforcing any State law
that is consistent with this section.
``(f) Definitions.--As used in this section:
``(1) Internet.--The term `Internet' means the
international computer network of both Federal and non-Federal
interoperable packet switched data networks.
``(2) Interactive computer service.--The term `interactive
computer service' means any information service that provides
computer access to multiple users via modem to a remote
computer server, including specifically a service that provides
access to the Internet.
``(3) Information content provider.--The term `information
content provider' means any person or entity that is
responsible, in whole or in part, for the creation or
development of information provided by the Internet or any
other interactive computer service, including any person or
entity that creates or develops blocking or screening software
or other techniques to permit user control over offensive
material.
``(4) Information service.--The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications, and
includes electronic publishing, but does not include any use of
any such capability for the management, control, or operation
of a telecommunications system or the management of a
telecommunications service.''.
SEC. 105. PRIVACY OF CUSTOMER INFORMATION.
(a) Privacy of Customer Proprietary Network Information.--Title II
of the Act is amended by inserting after section 221 (47 U.S.C. 221)
the following new section:
``SEC. 222. PRIVACY OF CUSTOMER PROPRIETARY NETWORK INFORMATION.
``(a) Subscriber List Information.--Notwithstanding subsections
(b), (c), and (d), a carrier that provides local exchange service shall
provide subscriber list information gathered in its capacity as a
provider of such service on a timely and unbundled basis, under
nondiscriminatory and reasonable rates, terms, and conditions, to any
person upon request for the purpose of publishing directories in any
format.
``(b) Privacy Requirements for Common Carriers.--A carrier--
``(1) shall not, except as required by law or with the
approval of the customer to which the information relates--
``(A) use customer proprietary network information
in the provision of any service except to the extent
necessary (i) in the provision of common carrier
services, (ii) in the provision of a service necessary
to or used in the provision of common carrier services,
including the publishing of directories, or (iii) to
continue to provide a particular information service
that the carrier provided as of May 1, 1995, to persons
who were customers of such service on that date;
``(B) use customer proprietary network information
in the identification or solicitation of potential
customers for any service other than the telephone
exchange service or telephone toll service from which
such information is derived;
``(C) use customer proprietary network information
in the provision of customer premises equipment; or
``(D) disclose customer proprietary network
information to any person except to the extent
necessary to permit such person to provide services or
products that are used in and necessary to the
provision by such carrier of the services described in
subparagraph (A);
``(2) shall disclose customer proprietary network
information, upon affirmative written request by the customer,
to any person designated by the customer;
``(3) shall, whenever such carrier provides any aggregate
information, notify the Commission of the availability of such
aggregate information and shall provide such aggregate
information on reasonable terms and conditions to any other
service or equipment provider upon reasonable request therefor;
and
``(4) except for disclosures permitted by paragraph (1)(D),
shall not unreasonably discriminate between affiliated and
unaffiliated service or equipment providers in providing access
to, or in the use and disclosure of, individual and aggregate
information made available consistent with this subsection.
``(c) Rule of Construction.--This section shall not be construed to
prohibit the use or disclosure of customer proprietary network
information as necessary--
``(1) to render, bill, and collect for the services
identified in subsection (b)(1)(A);
``(2) to render, bill, and collect for any other service
that the customer has requested;
``(3) to protect the rights or property of the carrier;
``(4) to protect users of any of those services and other
carriers from fraudulent, abusive, or unlawful use of or
subscription to such service; or
``(5) to provide any inbound telemarketing, referral, or
administrative services to the customer for the duration of the
call if such call was initiated by the customer and the
customer approves of the use of such information to provide
such service.
``(d) Exemption Permitted.--The Commission may, by rule, exempt
from the requirements of subsection (b) carriers that have, together
with any affiliated carriers, in the aggregate nationwide, fewer than
500,000 access lines installed if the Commission determines that such
exemption is in the public interest or if compliance with the
requirements would impose an undue economic burden on the carrier.
``(e) Definitions.--As used in this section:
``(1) Customer proprietary network information.--The term
`customer proprietary network information' means--
``(A) information which relates to the quantity,
technical configuration, type, destination, and amount
of use of telephone exchange service or telephone toll
service subscribed to by any customer of a carrier, and
is made available to the carrier by the customer solely
by virtue of the carrier-customer relationship;
``(B) information contained in the bills pertaining
to telephone exchange service or telephone toll service
received by a customer of a carrier; and
``(C) such other information concerning the
customer as is available to the local exchange carrier
by virtue of the customer's use of the carrier's
telephone exchange service or telephone toll services,
and specified as within the definition of such term by
such rules as the Commission shall prescribe consistent
with the public interest;
except that such term does not include subscriber list
information.
``(2) Subscriber list information.--The term `subscriber
list information' means any information--
``(A) identifying the listed names of subscribers
of a carrier and such subscribers' telephone numbers,
addresses, or primary advertising classifications (as
such classifications are assigned at the time of the
establishment of such service), or any combination of
such listed names, numbers, addresses, or
classifications; and
``(B) that the carrier or an affiliate has
published, caused to be published, or accepted for
publication in any directory format.
``(3) Aggregate information.--The term `aggregate
information' means collective data that relates to a group or
category of services or customers, from which individual
customer identities and characteristics have been removed.''.
(b) Converging Communications Technologies and Consumer Privacy.--
(1) Commission examination.--Within one year after the date
of enactment of this Act, the Commission shall commence a
proceeding--
(A) to examine the impact of the integration into
interconnected communications networks of wireless
telephone, cable, satellite, and other technologies on
the privacy rights and remedies of the consumers of
those technologies;
(B) to examine the impact that the globalization of
such integrated communications networks has on the
international dissemination of consumer information and
the privacy rights and remedies to protect consumers;
(C) to propose changes in the Commission's
regulations to ensure that the effect on consumer
privacy rights is considered in the introduction of new
telecommunications services and that the protection of
such privacy rights is incorporated as necessary in the
design of such services or the rules regulating such
services;
(D) to propose changes in the Commission's
regulations as necessary to correct any defects
identified pursuant to subparagraph (A) in such rights
and remedies; and
(E) to prepare recommendations to the Congress for
any legislative changes required to correct such
defects.
(2) Subjects for examination.--In conducting the
examination required by paragraph (1), the Commission shall
determine whether consumers are able, and, if not, the methods
by which consumers may be enabled--
(A) to have knowledge that consumer information is
being collected about them through their utilization of
various communications technologies;
(B) to have notice that such information could be
used, or is intended to be used, by the entity
collecting the data for reasons unrelated to the
original communications, or that such information could
be sold (or is intended to be sold) to other companies
or entities; and
(C) to stop the reuse or sale of that information.
(3) Schedule for commission responses.--The Commission
shall, within 18 months after the date of enactment of this
Act--
(A) complete any rulemaking required to revise
Commission regulations to correct defects in such
regulations identified pursuant to paragraph (1); and
(B) submit to the Congress a report containing the
recommendations required by paragraph (1)(C).
SEC. 106. POLE ATTACHMENTS.
Section 224 of the Act (47 U.S.C. 224) is amended--
(1) in subsection (a)(4)--
(A) by inserting after ``system'' the following:
``or a provider of telecommunications service''; and
(B) by inserting after ``utility'' the following:
``, which attachment may be used by such entities to
provide cable service or any telecommunications
service'';
(2) in subsection (c)(2)(B), by striking ``cable television
services'' and inserting ``the services offered via such
attachments'';
(3) by redesignating subsection (d)(2) as subsection
(d)(4); and
(4) by striking subsection (d)(1) and inserting the
following:
``(d)(1) For purposes of subsection (b) of this section, the
Commission shall, no later than 1 year after the date of enactment of
the Communications Act of 1995, prescribe regulations for ensuring
that, when the parties fail to negotiate a mutually agreeable rate,
utilities charge just and reasonable and nondiscriminatory rates for
pole attachments provided to all providers of telecommunications
services, including such attachments used by cable television systems
to provide telecommunications services (as defined in section 3 of this
Act). Such regulations shall--
``(A) recognize that the entire pole, duct, conduit, or
right-of-way other than the usable space is of equal benefit to
all entities attaching to the pole and therefore apportion the
cost of the space other than the usable space equally among all
such attaching entities;
``(B) recognize that the usable space is of proportional
benefit to all entities attaching to the pole, duct, conduit or
right-of-way and therefore apportion the cost of the usable
space according to the percentage of usable space required for
each entity;
``(C) recognize that the pole, duct, conduit, or right-of-
way has a value that exceeds costs and that value shall be
reflected in any rate; and
``(D) allow for reasonable terms and conditions relating to
health, safety, and the provision of reliable utility service.
``(2) The final regulations prescribed by the Commission pursuant
to paragraph (1) shall not apply to a cable television system that
solely provides cable service as defined in section 602(6) of this Act;
instead, the pole attachment rate for such systems shall assure a
utility the recovery of not less than the additional costs of providing
pole attachments, nor more than an amount determined by multiplying the
percentage of the total usable space, or the percentage of the total
duct or conduit capacity, which is occupied by the pole attachment by
the sum of the operating expenses and actual capital costs of the
utility attributable to the entire pole, duct, conduit, or right-of-
way.
``(3) Whenever the owner of a conduit or right-of-way intends to
modify or alter such conduit or right-of-way, the owner shall provide
written notification of such action to any entity that has obtained an
attachment to such conduit or right-of-way so that such entity may have
a reasonable opportunity to add to or modify its existing attachment.
Any entity that adds to or modifies its existing attachment after
receiving such notification shall bear a proportionate share of the
costs incurred by the owner in making such conduit or right-of-way
accessible.''.
SEC. 107. PREEMPTION OF FRANCHISING AUTHORITY REGULATION OF
TELECOMMUNICATIONS SERVICES.
(a) Telecommunications Services.--Section 621(b) of the Act (47
U.S.C. 541(c)) is amended by adding at the end thereof the following
new paragraph:
``(3)(A) To the extent that a cable operator or affiliate thereof
is engaged in the provision of telecommunications services--
``(i) such cable operator or affiliate shall not be
required to obtain a franchise under this title; and
``(ii) the provisions of this title shall not apply to such
cable operator or affiliate.
``(B) A franchising authority may not impose any requirement that
has the purpose or effect of prohibiting, limiting, restricting, or
conditioning the provision of a telecommunications service by a cable
operator or an affiliate thereof.
``(C) A franchising authority may not order a cable operator or
affiliate thereof--
``(i) to discontinue the provision of a telecommunications
service, or
``(ii) to discontinue the operation of a cable system, to
the extent such cable system is used for the provision of a
telecommunications service, by reason of the failure of such
cable operator or affiliate thereof to obtain a franchise or
franchise renewal under this title with respect to the
provision of such telecommunications service.
``(D) Except as otherwise permitted by sections 611 and 612, a
franchising authority may not require a cable operator to provide any
telecommunications service or facilities, other than intragovernmental
telecommunications services, as a condition of the initial grant of a
franchise or a franchise renewal.''.
(b) Franchise Fees.--Section 622(b) of the Act (47 U.S.C. 542(b))
is amended by inserting ``to provide cable services'' immediately
before the period at the end of the first sentence thereof.
SEC. 108. FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.
(a) National Wireless Telecommunications Siting Policy.--Section
332(c) of the Act (47 U.S.C. 332(c)) is amended by adding at the end
the following new paragraph:
``(7) Facilities siting policies.--(A) Within 180 days
after enactment of this paragraph, the Commission shall
prescribe and make effective a policy to reconcile State and
local regulation of the siting of facilities for the provision
of commercial mobile services or unlicensed services with the
public interest in fostering competition through the rapid,
efficient, and nationwide deployment of commercial mobile
services or unlicensed services.
``(B) Pursuant to subchapter III of chapter 5, title 5,
United States Code, the Commission shall establish a negotiated
rulemaking committee to negotiate and develop a proposed policy
to comply with the requirements of this paragraph. Such
committee shall include representatives from State and local
governments, affected industries, and public safety agencies.
``(C) The policy prescribed pursuant to this subparagraph
shall take into account--
``(i) the need to enhance the coverage and quality
of commercial mobile services and unlicensed services
and foster competition in the provision of commercial
mobile services and unlicensed services on a timely
basis;
``(ii) the legitimate interests of State and local
governments in matters of exclusively local concern,
and the need to provide State and local government with
maximum flexibility to address such local concerns,
while ensuring that such interests do not prohibit or
have the effect of precluding any commercial mobile
service or unlicensed service;
``(iii) the effect of State and local regulation of
facilities siting on interstate commerce;
``(iv) the administrative costs to State and local
governments of reviewing requests for authorization to
locate facilities for the provision of commercial
mobile services or unlicensed services; and
``(v) the need to provide due process in making any
decision by a State or local government or
instrumentality thereof to grant or deny a request for
authorization to locate, construct, modify, or operate
facilities for the provision of commercial mobile
services or unlicensed services.
``(D) The policy prescribed pursuant to this paragraph
shall provide that no State or local government or any
instrumentality thereof may regulate the placement,
construction, modification, or operation of such facilities on
the basis of the environmental effects of radio frequency
emissions, to the extent that such facilities comply with the
Commission's regulations concerning such emissions.
``(E) The proceeding to prescribe such policy pursuant to
this paragraph shall supercede any proceeding pending on the
date of enactment of this paragraph relating to preemption of
State and local regulation of tower siting for commercial
mobile services, unlicensed services, and providers thereof. In
accordance with subchapter III of chapter 5, title 5, United
States Code, the Commission shall periodically establish a
negotiated rulemaking committee to review the policy prescribed
by the Commission under this paragraph and to recommend
revisions to such policy.
``(F) For purposes of this paragraph, the term `unlicensed
service' means the offering of telecommunications using duly
authorized devices which do not require individual licenses.''.
(b) Radio Frequency Emissions.--Within 180 days after the enactment
of this Act, the Commission shall complete action in ET Docket 93-62 to
prescribe and make effective rules regarding the environmental effects
of radio frequency emissions.
(c) Availability of Property.--Within 180 days of the enactment of
this Act, the Commission shall prescribe procedures by which Federal
departments and agencies may make available on a fair, reasonable, and
nondiscriminatory basis, property, rights-of-way, and easements under
their control for the placement of new telecommunications facilities by
duly licensed providers of telecommunications services that are
dependent, in whole or in part, upon the utilization of Federal
spectrum rights for the transmission or reception of such services.
These procedures may establish a presumption that requests for the use
of property, rights-of-way, and easements by duly authorized providers
should be granted absent unavoidable direct conflict with the
department or agency's mission, or the current or planned use of the
property, rights-of-way, and easements in question. Reasonable fees may
be charged to providers of such telecommunications services for use of
property, rights-of-way, and easements. The Commission shall provide
technical support to States to encourage them to make property, rights-
of-way, and easements under their jurisdiction available for such
purposes.
SEC. 109. MOBILE SERVICE ACCESS TO LONG DISTANCE CARRIERS.
(a) Amendment.--Section 332(c) of the Act (47 U.S.C. 332(c)) is
amended by adding at the end the following new paragraph:
``(8) Mobile services access.--(A) The Commission shall
prescribe regulations to afford subscribers of two-way switched
voice commercial mobile radio services access to a provider of
telephone toll service of the subscriber's choice, except to
the extent that the commercial mobile radio service is provided
by satellite. The Commission may exempt carriers or classes of
carriers from the requirements of such regulations to the
extent the Commission determines such exemption is consistent
with the public interest, convenience, and necessity. For
purposes of this paragraph, `access' shall mean access to a
provider of telephone toll service through the use of carrier
identification codes assigned to each such provider.
``(B) The regulations prescribed by the Commission pursuant
to subparagraph (A) shall supersede any inconsistent
requirements imposed by the Modification of Final Judgment or
any order in United States v. AT&T Corp. and McCaw Cellular
Communications, Inc., Civil Action No. 94-01555 (United States
District Court, District of Columbia).''.
(b) Effective Date Conforming Amendment.--Section 6002(c)(2)(B) of
the Omnibus Budget Reconciliation Act of 1993 is amended by striking
``section 332(c)(6)'' and inserting ``paragraphs (6) and (8) of section
332(c)''.
SEC. 110. FREEDOM FROM TOLL FRAUD.
(a) Amendment.--Section 228(c) of the Act (47 U.S.C. 228(c)) is
amended--
(1) by striking subparagraph (C) of paragraph (7) and
inserting the following:
``(C) the calling party being charged for
information conveyed during the call unless--
``(i) the calling party has a written
subscription agreement with the information
provider that meets the requirements of
paragraph (8); or
``(ii) the calling party is charged in
accordance with paragraph (9); or''; and
(2) by adding at the end the following new paragraphs:
``(8) Subscription agreements for billing for information
provided via toll-free calls.--
``(A) In general.--For purposes of paragraph
(7)(C)(i), a written subscription agreement shall
specify the terms and conditions under which the
information is offered and include--
``(i) the rate at which charges are
assessed for the information;
``(ii) the information provider's name;
``(iii) the information provider's business
address;
``(iv) the information provider's regular
business telephone number;
``(v) the information provider's agreement
to notify the subscriber at least 30 days in
advance of all future changes in the rates
charged for the information;
``(vi) the signature of a legally competent
subscriber agreeing to the terms of the
agreement; and
``(vii) the subscriber's choice of payment
method, which may be by phone bill or credit,
prepaid, or calling card.
``(B) Billing arrangements.--If a subscriber
elects, pursuant to subparagraph (A)(vii), to pay by
means of a phone bill--
``(i) the agreement shall clearly explain
that the subscriber will be assessed for calls
made to the information service from the
subscriber's phone line;
``(ii) the phone bill shall include, in
prominent type, the following disclaimer:
`Common carriers may not disconnect
local or long distance telephone
service for failure to pay disputed
charges for information services.'; and
``(iii) the phone bill shall clearly list
the 800 number dialed.
``(C) Use of pin's to prevent unauthorized use.--A
written agreement does not meet the requirements of
this paragraph unless it provides the subscriber a
personal identification number to obtain access to the
information provided, and includes instructions on its
use.
``(D) Exceptions.--Notwithstanding paragraph
(7)(C), a written agreement that meets the requirements
of this paragraph is not required--
``(i) for services provided pursuant to a
tariff that has been approved or permitted to
take effect by the Commission or a State
commission; or
``(ii) for any purchase of goods or of
services that are not information services.
``(E) Termination of service.--On complaint by any
person, a carrier may terminate the provision of
service to an information provider unless the provider
supplies evidence of a written agreement that meets the
requirements of this section. The remedies provided in
this paragraph are in addition to any other remedies
that are available under title V of this Act.
``(9) Charges by credit, prepaid, or calling card in
absence of agreement.--For purposes of paragraph (7)(C)(ii), a
calling party is not charged in accordance with this paragraph
unless the calling party is charged by means of a credit,
prepaid, or calling card and the information service provider
includes in response to each call an introductory disclosure
message that--
``(A) clearly states that there is a charge for the
call;
``(B) clearly states the service's total cost per
minute and any other fees for the service or for any
service to which the caller may be transferred;
``(C) explains that the charges must be billed on
either a credit, prepaid, or calling card;
``(D) asks the caller for the credit or calling
card number;
``(E) clearly states that charges for the call
begin at the end of the introductory message; and
``(F) clearly states that the caller can hang up at
or before the end of the introductory message without
incurring any charge whatsoever.
``(10) Definition of calling card.--As used in this
subsection, the term `calling card' means an identifying number
or code unique to the individual, that is issued to the
individual by a common carrier and enables the individual to be
charged by means of a phone bill for charges incurred
independent of where the call originates.''.
(b) Regulations.--The Federal Communications Commission shall
revise its regulations to comply with the amendment made by subsection
(a) of this section within 180 days after the date of enactment of this
Act.
SEC. 111. REPORT ON MEANS OF RESTRICTING ACCESS TO UNWANTED MATERIAL IN
INTERACTIVE TELECOMMUNICATIONS SYSTEMS.
(a) Report.--Not later than 150 days after the date of the
enactment of this Act, the Attorney General shall submit to the
Committees on the Judiciary and Commerce, Science, and Transportation
of the Senate and the Committees on the Judiciary and Commerce of the
House of Representatives a report containing--
(1) an evaluation of the enforceability with respect to
interactive media of current criminal laws governing the
distribution of obscenity over computer networks and the
creation and distribution of child pornography by means of
computers;
(2) an assessment of the Federal, State, and local law
enforcement resources that are currently available to enforce
such laws;
(3) an evaluation of the technical means available--
(A) to enable parents to exercise control over the
information that their children receive by interactive
telecommunications systems so that children may avoid
violent, sexually explicit, harassing, offensive, and
other unwanted material on such systems;
(B) to enable other users of such systems to
exercise control over the commercial and noncommercial
information that they receive by such systems so that
such users may avoid violent, sexually explicit,
harassing, offensive, and other unwanted material on
such systems; and
(C) to promote the free flow of information,
consistent with the values expressed in the
Constitution, in interactive media; and
(4) recommendations on means of encouraging the development
and deployment of technology, including computer hardware and
software, to enable parents and other users of interactive
telecommunications systems to exercise the control described in
subparagraphs (A) and (B) of paragraph (3).
(b) Consultation.--In preparing the report under subsection (a),
the Attorney General shall consult with the Assistant Secretary of
Commerce for Communications and Information.
SEC. 112. TELECOMMUNICATIONS DEVELOPMENT FUND.
(a) Deposit and Use of Auction Escrow Accounts.--Section 309(j)(8)
of the Act (47 U.S.C. 309(j)(8)) is amended by adding at the end the
following new subparagraph:
``(C) Deposit and use of auction escrow accounts.--
Any deposits the Commission may require for the
qualification of any person to bid in a system of
competitive bidding pursuant to this subsection shall
be deposited in an interest bearing account at a
financial institution designated for purposes of this
subsection by the Commission (after consultation with
the Secretary of the Treasury). Within 45 days
following the conclusion of the competitive bidding--
``(i) the deposits of successful bidders
shall be paid to the Treasury;
``(ii) the deposits of unsuccessful bidders
shall be returned to such bidders; and
``(iii) the interest accrued to the account
shall be transferred to the Telecommunications
Development Fund established pursuant to
section 10 of this Act.''.
(b) Establishment and Operation of Fund.--Title I of the Act is
amended by adding at the end the following new section:
``SEC. 10. TELECOMMUNICATIONS DEVELOPMENT FUND.
``(a) Purpose of Section.--It is the purpose of this section--
``(1) to promote access to capital for small businesses in
order to enhance competition in the telecommunications
industry;
``(2) to stimulate new technology development, and promote
employment and training; and
``(3) to support universal service and promote delivery of
telecommunications services to underserved rural and urban
areas.
``(b) Establishment of Fund.--There is hereby established a body
corporate to be known as the Telecommunications Development Fund, which
shall have succession until dissolved. The Fund shall maintain its
principal office in the District of Columbia and shall be deemed, for
purposes of venue and jurisdiction in civil actions, to be a resident
and citizen thereof.
``(c) Board of Directors.--
``(1) Composition of board; chairman.--The Fund shall have
a Board of Directors which shall consist of 7 persons appointed
by the Chairman of the Commission. Four of such directors shall
be representative of the private sector and three of such
directors shall be representative of the Commission, the Small
Business Administration, and the Department of the Treasury,
respectively. The Chairman of the Commission shall appoint one
of the representatives of the private sector to serve as
chairman of the Fund within 30 days after the date of enactment
of this section, in order to facilitate rapid creation and
implementation of the Fund. The directors shall include members
with experience in a number of the following areas: finance,
investment banking, government banking, communications law and
administrative practice, and public policy.
``(2) Terms of appointed and elected members.--The
directors shall be eligible to serve for terms of 5 years,
except of the initial members, as designated at the time of
their appointment--
``(A) 1 shall be eligible to service for a term of
1 year;
``(B) 1 shall be eligible to service for a term of
2 years;
``(C) 1 shall be eligible to service for a term of
3 years;
``(D) 2 shall be eligible to service for a term of
4 years; and
``(E) 2 shall be eligible to service for a term of
5 years (1 of whom shall be the Chairman).
Directors may continue to serve until their successors have
been appointed and have qualified.
``(3) Meetings and functions of the board.--The Board of
Directors shall meet at the call of its Chairman, but at least
quarterly. The Board shall determine the general policies which
shall govern the operations of the Fund. The Chairman of the
Board shall, with the approval of the Board, select, appoint,
and compensate qualified persons to fill the offices as may be
provided for in the bylaws, with such functions, powers, and
duties as may be prescribed by the bylaws or by the Board of
Directors, and such persons shall be the officers of the Fund
and shall discharge all such functions, powers, and duties.
``(d) Accounts of the Fund.--The Fund shall maintain its accounts
at a financial institution designated for purposes of this section by
the Chairman of the Board (after consultation with the Commission and
the Secretary of the Treasury). The accounts of the Fund shall consist
of--
``(1) interest transferred pursuant to section 309(j)(8)(C)
of this Act;
``(2) such sums as may be appropriated to the Commission
for advances to the Fund;
``(3) any contributions or donations to the Fund that are
accepted by the Fund; and
``(4) any repayment of, or other payment made with respect
to, loans, equity, or other extensions of credit made from the
Fund.
``(e) Use of the Fund.--All moneys deposited into the accounts of
the Fund shall be used solely for--
``(1) the making of loans, investments, or other extensions
of credits to eligible small businesses in accordance with
subsection (f);
``(2) the provision of financial advise to eligible small
businesses;
``(3) expenses for the administration and management of the
Fund;
``(4) preparation of research, studies, or financial
analyses; and
``(5) other services consistent with the purposes of this
section.
``(f) Lending and Credit Operations.--Loans or other extensions of
credit from the Fund shall be made available to eligible small business
on the basis of--
``(1) the analysis of the business plan of the eligible
small business;
``(2) the reasonable availability of collateral to secure
the loan or credit extension;
``(3) the extent to which the loan or credit extension
promotes the purposes of this section; and
``(4) other lending policies as defined by the Board.
``(g) Return of Advances.--Any advances appropriated pursuant to
subsection (b)(2) shall be upon such terms and conditions (including
conditions relating to the time or times of repayment) as the Board
determines will best carry out the purposes of this section, in light
of the maturity and solvency of the Fund.
``(h) General Corporate Powers.--The Fund shall have power--
``(1) to sue and be sued, complain and defend, in its
corporate name and through its own counsel;
``(2) to adopt, alter, and use the corporate seal, which
shall be judicially noticed;
``(3) to adopt, amend, and repeal by its Board of
Directors, bylaws, rules, and regulations as may be necessary
for the conduct of its business;
``(4) to conduct its business, carry on its operations, and
have officers and exercise the power granted by this section in
any State without regard to any qualification or similar
statute in any State;
``(5) to lease, purchase, or otherwise acquire, own, hold,
improve, use, or otherwise deal in and with any property, real,
personal, or mixed, or any interest therein, wherever situated;
``(6) to accept gifts or donations of services, or of
property, real, personal, or mixed, tangible or intangible, in
aid of any of the purposes of the Fund;
``(7) to sell, convey, mortgage, pledge, lease, exchange,
and otherwise dispose of its property and assets;
``(8) to appoint such officers, attorneys, employees, and
agents as may be required, to determine their qualifications,
to define their duties, to fix their salaries, require bonds
for them, and fix the penalty thereof; and
``(9) to enter into contracts, to execute instruments, to
incur liabilities, to make loans and equity investment, and to
do all things as are necessary or incidental to the proper
management of its affairs and the proper conduct of its
business.
``(i) Accounting, Auditing, and Reporting.--The accounts of the
Fund shall be audited annually. Such audits shall be conducted in
accordance with generally accepted auditing standards by independent
certified public accountants. A report of each such audit shall be
furnished to the Secretary of the Treasury and the Commission. The
representatives of the Secretary and the Commission shall have access
to all books, accounts, financial records, reports, files, and all
other papers, things, or property belonging to or in use by the Fund
and necessary to facilitate the audit.
``(j) Report on Audits by Treasury.--A report of each such audit
for a fiscal year shall be made by the Secretary of the Treasury to the
President and to the Congress not later than 6 months following the
close of such fiscal year. The report shall set forth the scope of the
audit and shall include a statement of assets and liabilities, capital
and surplus or deficit; a statement of surplus or deficit analysis; a
statement of income and expense; a statement of sources and application
of funds; and such comments and information as may be deemed necessary
to keep the President and the Congress informed of the operations and
financial condition of the Fund, together with such recommendations
with respect thereto as the Secretary may deem advisable.
``(k) Definitions.--As used in this section:
``(1) Eligible small business.--The term `eligible small
business' means business enterprises engaged in the
telecommunications industry that have $50,000,000 or less in
annual revenues, on average over the past 3 years prior to
submitting the application under this section.
``(2) Fund.--The term `Fund' means the Telecommunications
Development Fund established pursuant to this section.
``(3) Telecommunications industry.--The term
`telecommunications industry' means communications businesses
using regulated or unregulated facilities or services and
includes the broadcasting, telephony, cable, computer, data
transmission, software, programming, advanced messaging, and
electronics businesses.''.
SEC. 113. REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES FOR
MEDICAL PURPOSES.
The Assistant Secretary of Commerce for Communications and
Information, in consultation with the Secretary of Health and Human
Services and other appropriate departments and agencies, shall submit a
report to the Committee on Commerce of the House of Representatives and
the Committee on Commerce, Science and Transportation of the Senate
concerning the activities of the Joint Working Group on Telemedicine,
together with any findings reached in the studies and demonstrations on
telemedicine funded by the Public Health Service or other Federal
agencies. The report shall examine questions related to patient safety,
the efficacy and quality of the services provided, and other legal,
medical, and economic issues related to the utilization of advanced
telecommunications services for medical purposes. The report shall be
submitted to the respective Committees annually, by January 31,
beginning in 1996.
SEC. 114. TELECOMMUTING PUBLIC INFORMATION PROGRAM.
(a) Telecommuting Research Programs and Public Information
Dissemination.--The Assistant Secretary of Commerce for Communications
and Information, in consultation with the Secretary of Transportation,
the Secretary of Labor, and the Administrator of the Environmental
Protection Agency, shall, within three months of the date of enactment
of this Act, carry out research to identify successful telecommuting
programs in the public and private sectors and provide for the
dissemination to the public of information regarding--
(1) the establishment of successful telecommuting programs;
and
(2) the benefits and costs of telecommuting.
(b) Report.--Within one year of the date of enactment of this Act,
the Assistant Secretary of Commerce for Communications and Information
shall report to Congress the findings, conclusions, and recommendations
regarding telecommuting developed under this section.
SEC. 115. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--In addition to any other sums authorized by law,
there are authorized to be appropriated to the Federal Communications
Commission such sums as may be necessary to carry out this Act and the
amendments made by this Act.
(b) Effect on Fees.--For the purposes of section 9(b)(2) of the Act
(47 U.S.C. 159(b)(2)), additional amounts appropriated pursuant to
subsection (a) shall be construed to be changes in the amounts
appropriated for the performance of activities described in section
9(a) of such Act.
TITLE II--CABLE COMMUNICATIONS COMPETITIVENESS
SEC. 201. CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.
(a) General Requirement.--
(1) Amendment.--Section 613(b) of the Act (47 U.S.C.
533(b)) is amended to read as follows:
``(b)(1) Subject to the requirements of part V and the other
provisions of this title, any common carrier subject in whole or in
part to title II of this Act may, either through its own facilities or
through an affiliate, provide video programming directly to subscribers
in its telephone service area.
``(2) Subject to the requirements of part V and the other
provisions of this title, any common carrier subject in whole or in
part to title II of this Act may provide channels of communications or
pole, line, or conduit space, or other rental arrangements, to any
entity which is directly or indirectly owned, operated, or controlled
by, or under common control with, such common carrier, if such
facilities or arrangements are to be used for, or in connection with,
the provision of video programming directly to subscribers in its
telephone service area.
``(3)(A) Notwithstanding paragraphs (1) and (2), an affiliate
described in subparagraph (B) shall not be subject to the requirements
of part V (other than section 652), but--
``(i) if providing video programming as a cable service
using a cable system, shall be subject to the requirements of
this part and parts III and IV; and
``(ii) if providing such video programming by means of
radio communication, shall be subject to the requirements of
title III.
``(B) For purposes of subparagraph (A), an affiliate is described
in this subparagraph if such affiliate--
``(i) is, consistently with section 655, owned, operated,
or controlled by, or under common control with, a common
carrier subject in whole or in part to title II of this Act;
``(ii) provides video programming to subscribers in the
telephone service area of such carrier; and
``(iii) has not established a video platform in accordance
with section 653.''.
(2) Conforming amendment.--Section 602 of the Act (47
U.S.C. 531) is amended--
(A) by redesignating paragraphs (18) and (19) as
paragraphs (19) and (20) respectively; and
(B) by inserting after paragraph (17) the following
new paragraph:
``(18) the term `telephone service area' when used in
connection with a common carrier subject in whole or in part to
title II of this Act means the area within which such carrier
provides telephone exchange service as of January 1, 1993, but
if any common carrier after such date transfers its exchange
service facilities to another common carrier, the area to which
such facilities provide telephone exchange service shall be
treated as part of the telephone service area of the acquiring
common carrier and not of the selling common carrier;''.
(b) Provisions for Regulation of Cable Service Provided by
Telephone Companies.--Title VI of the Act (47 U.S.C. 521 et seq.) is
amended by adding at the end the following new part:
``PART V--VIDEO PROGRAMMING SERVICES PROVIDED BY TELEPHONE COMPANIES
``SEC. 651. DEFINITIONS.
``For purposes of this part--
``(1) the term `control' means--
``(A) an ownership interest in which an entity has
the right to vote more than 50 percent of the
outstanding common stock or other ownership interest;
or
``(B) if no single entity directly or indirectly
has the right to vote more than 50 percent of the
outstanding common stock or other ownership interest,
actual working control, in whatever manner exercised,
as defined by the Commission by regulation on the basis
of relevant factors and circumstances, which shall
include partnership and direct ownership interests,
voting stock interests, the interests of officers and
directors, and the aggregation of voting interests; and
``(2) the term `rural area' means a geographic area that
does not include either--
``(A) any incorporated or unincorporated place of
10,000 inhabitants or more, or any part thereof; or
``(B) any territory, incorporated or
unincorporated, included in an urbanized area, as
defined by the Bureau of the Census.
``SEC. 652. SEPARATE VIDEO PROGRAMMING AFFILIATE.
``(a) In General.--Except as provided in subsection (d) of this
section and section 613(b)(3), a common carrier subject to title II of
this Act shall not provide video programming directly to subscribers in
its telephone service area unless such video programming is provided
through a video programming affiliate that is separate from such
carrier.
``(b) Books and Marketing.--
``(1) In general.--A video programming affiliate of a
common carrier shall--
``(A) maintain books, records, and accounts
separate from such carrier which identify all
transactions with such carrier;
``(B) carry out directly (or through any
nonaffiliated person) its own promotion, except that
institutional advertising carried out by such carrier
shall be permitted so long as each party bears its pro
rata share of the costs; and
``(C) not own real or personal property in common
with such carrier.
``(2) Inbound telemarketing and referral.--Notwithstanding
paragraph (1)(B), a common carrier may provide telemarketing or
referral services in response to the call of a customer or
potential customer related to the provision of video
programming by a video programming affiliate of such carrier.
If such services are provided to a video programming affiliate,
such services shall be made available to any video programmer
or cable operator on request, on nondiscriminatory terms, at
just and reasonable prices.
``(3) Joint marketing.--Notwithstanding paragraph (1)(B) or
section 613(b)(3), a common carrier may market video
programming directly upon a showing to the Commission that a
cable operator or other entity directly or indirectly provides
telecommunications services within the telephone service area
of the common carrier, and markets such telecommunications
services jointly with video programming services. The common
carrier shall specify the geographic region covered by the
showing. The Commission shall approve or disapprove such
showing within 60 days after the date of its submission.
``(c) Business Transactions With Carrier.--Any contract, agreement,
arrangement, or other manner of conducting business, between a common
carrier and its video programming affiliate, providing for--
``(1) the sale, exchange, or leasing of property between
such affiliate and such carrier,
``(2) the furnishing of goods or services between such
affiliate and such carrier, or
``(3) the transfer to or use by such affiliate for its
benefit of any asset or resource of such carrier,
shall be on a fully compensatory and auditable basis, shall be without
cost to the telephone service ratepayers of the carrier, and shall be
in compliance with regulations established by the Commission that will
enable the Commission to assess the compliance of any transaction.
``(d) Waiver.--
``(1) Criteria for waiver.--The Commission may waive any of
the requirements of this section for small telephone companies
or telephone companies serving rural areas, if the Commission
determines, after notice and comment, that--
``(A) such waiver will not affect the ability of
the Commission to ensure that all video programming
activity is carried out without any support from
telephone ratepayers;
``(B) the interests of telephone ratepayers and
cable subscribers will not be harmed if such waiver is
granted;
``(C) such waiver will not adversely affect the
ability of persons to obtain access to the video
platform of such carrier; and
``(D) such waiver otherwise is in the public
interest.
``(2) Deadline for action.--The Commission shall act to
approve or disapprove a waiver application within 180 days
after the date it is filed.
``(3) Continued applicability of section 656.--In the case
of a common carrier that obtains a waiver under this
subsection, any requirement that section 656 applies to a video
programming affiliate shall instead apply to such carrier.
``(e) Sunset of Requirements.--The provisions of this section shall
cease to be effective on July 1, 2000.
``SEC. 653. ESTABLISHMENT OF VIDEO PLATFORM.
``(a) Video Platform.--
``(1) In general.--Except as provided in section 613(b)(3),
any common carrier subject to title II of this Act, and that
provides video programming directly to subscribers in its
telephone service area, may establish a video platform. This
paragraph shall not apply to any carrier to the extent that it
provides video programming directly to subscribers in its
telephone service area solely through a cable system acquired
in accordance with section 655(b).
``(2) Identification of demand for carriage.--Any common
carrier subject to the requirements of paragraph (1) shall,
prior to establishing a video platform, submit a notice to the
Commission of its intention to establish channel capacity for
the provision of video programming to meet the bona fide demand
for such capacity. Such notice shall--
``(A) be in such form and contain information
concerning the geographic area intended to be served
and such information as the Commission may require by
regulations pursuant to subsection (b);
``(B) specify the methods by which any entity
seeking to use such channel capacity should submit to
such carrier a specification of its channel capacity
requirements; and
``(C) specify the procedures by which such carrier
will determine (in accordance with the Commission's
regulations under subsection (b)(1)(B)) whether such
requests for capacity are bona fide.
The Commission shall submit any such notice for publication in
the Federal Register within 5 working days.
``(3) Response to request for carriage.--After receiving
and reviewing the requests for capacity submitted pursuant to
such notice, such common carrier shall establish channel
capacity that is sufficient to provide carriage for--
``(A) all bona fide requests submitted pursuant to
such notice,
``(B) any additional channels required pursuant to
section 656, and
``(C) any additional channels required by the
Commission's regulations under subsection (b)(1)(C).
``(4) Responses to changes in demand for capacity.--Any
common carrier that establishes a video platform under this
section shall--
``(A) immediately notify the Commission and each
video programming provider of any delay in or denial of
channel capacity or service, and the reasons therefor;
``(B) continue to receive and grant, to the extent
of available capacity, carriage in response to bona
fide requests for carriage from existing or additional
video programming providers;
``(C) if at any time the number of channels
required for bona fide requests for carriage may
reasonably be expected soon to exceed the existing
capacity of such video platform, immediately notify the
Commission of such expectation and of the manner and
date by which such carrier will provide sufficient
capacity to meet such excess demand; and
``(D) construct such additional capacity as may be
necessary to meet such excess demand.
``(5) Dispute resolution.--The Commission shall have the
authority to resolve disputes under this section and the
regulations prescribed thereunder. Any such dispute shall be
resolved within 180 days after notice of such dispute is
submitted to the Commission. At that time or subsequently in a
separate damages proceeding, the Commission may award damages
sustained in consequence of any violation of this section to
any person denied carriage, or require carriage, or both. Any
aggrieved party may seek any other remedy available under this
Act.
``(b) Commission Actions.--
``(1) In general.--Within 6 months after the date of the
enactment of this section, the Commission shall complete all
actions necessary (including any reconsideration) to prescribe
regulations that--
``(A) consistent with the requirements of section
656, prohibit a common carrier from discriminating
among video programming providers with regard to
carriage on its video platform, and ensure that the
rates, terms, and conditions for such carriage are
just, reasonable, and nondiscriminatory;
``(B) prescribe definitions and criteria for the
purposes of determining whether a request shall be
considered a bona fide request for purposes of this
section;
``(C) permit a common carrier to carry on only one
channel any video programming service that is offered
by more than one video programming provider (including
the common carrier's video programming affiliate),
provided that subscribers have ready and immediate
access to any such video programming service;
``(D) extend to the distribution of video
programming over video platforms the Commission's
regulations concerning sports exclusivity (47 C.F.R.
76.67), network nonduplication (47 C.F.R. 76.92 et
seq.), and syndicated exclusivity (47 C.F.R. 76.151 et
seq.);
``(E) require the video platform to provide
service, transmission, and interconnection for
unaffiliated or independent video programming providers
that is equivalent to that provided to the common
carrier's video programming affiliate, except that the
video platform shall not discriminate between analog
and digital video programming offered by such
unaffiliated or independent video programming
providers;
``(F)(i) prohibit a common carrier from
unreasonably discriminating in favor of its video
programming affiliate with regard to material or
information provided by the common carrier to
subscribers for the purposes of selecting programming
on the video platform, or in the way such material or
information is presented to subscribers;
``(ii) require a common carrier to ensure that
video programming providers or copyright holders (or
both) are able suitably and uniquely to identify their
programming services to subscribers; and
``(iii) if such identification is transmitted as
part of the programming signal, require the carrier to
transmit such identification without change or
alteration; and
``(G) prohibit a common carrier from excluding
areas from its video platform service area on the basis
of the ethnicity, race, or income of the residents of
that area, and provide for public comments on the
adequacy of the proposed service area on the basis of
the standards set forth under this subparagraph.
Nothing in this section prohibits a common carrier or its
affiliate from negotiating mutually agreeable terms and
conditions with over-the-air broadcast stations and other
unaffiliated video programming providers to allow consumer
access to their signals on any level or screen of any gateway,
menu, or other program guide, whether provided by the carrier
or its affiliate.
``(2) Regulatory Streamlining.--With respect to the establishment
and operation of a video platform, the requirements of this section
shall apply in lieu of, and not in addition to, the requirements of
title II.
``SEC. 654. AUTHORITY TO PROHIBIT CROSS-SUBSIDIZATION.
``Nothing in this part shall prohibit a State commission that
regulates the rates for telephone exchange service or exchange access
based on the cost of providing such service or access from--
``(1) prescribing regulations to prohibit a common carrier
from engaging in any practice that results in the inclusion in
rates for telephone exchange service or exchange access of any
operating expenses, costs, depreciation charges, capital
investments, or other expenses directly associated with the
provision of competing video programming services by the common
carrier or affiliate; or
``(2) ensuring such competing video programming services
bear a reasonable share of the joint and common costs of
facilities used to provide telephone exchange service or
exchange access and competing video programming services.
``SEC. 655. PROHIBITION ON BUY OUTS.
``(a) General Prohibition.--No common carrier that provides
telephone exchange service, and no entity owned by or under common
ownership or control with such carrier, may purchase or otherwise
obtain control over any cable system that is located within its
telephone service area and is owned by an unaffiliated person.
``(b) Exceptions.--Notwithstanding subsection (a), a common carrier
may--
``(1) obtain a controlling interest in, or form a joint
venture or other partnership with, a cable system that serves a
rural area;
``(2) obtain, in addition to any interest, joint venture,
or partnership obtained or formed pursuant to paragraph (1), a
controlling interest in, or form a joint venture or other
partnership with, any cable system or systems if--
``(A) such systems in the aggregate serve less than
10 percent of the households in the telephone service
area of such carrier; and
``(B) no such system serves a franchise area with
more than 35,000 inhabitants, except that a common
carrier may obtain such interest or form such joint
venture or other partnership with a cable system that
serves a franchise area with more than 35,000 but not
more than 50,000 inhabitants if such system is not
affiliated with any other system whose franchise area
is contiguous to the franchise area of the acquired
system;
``(3) obtain, with the concurrence of the cable operator on
the rates, terms, and conditions, the use of that part of the
transmission facilities of such a cable system extending from
the last multi-user terminal to the premises of the end user,
if such use is reasonably limited in scope and duration, as
determined by the Commission; or
``(4) obtain a controlling interest in, or form a joint
venture or other partnership with, or provide financing to, a
cable system (hereinafter in this paragraph referred to as `the
subject cable system'), if--
``(A) the subject cable system operates in a
television market that is not in the top 25 markets,
and that has more than 1 cable system operator, and the
subject cable system is not the largest cable system in
such television market;
``(B) the subject cable system and the largest
cable system in such television market held on May 1,
1995, cable television franchises from the largest
municipality in the television market and the
boundaries of such franchises were identical on such
date;
``(C) the subject cable system is not owned by or
under common ownership or control of any one of the 50
largest cable system operators as existed on May 1,
1995; and
``(D) the largest system in the television market
is owned by or under common ownership or control of any
one of the 10 largest cable system operators as existed
on May 1, 1995.
``(c) Waiver.--
``(1) Criteria for waiver.--The Commission may waive the
restrictions in subsection (a) of this section only upon a
showing by the applicant that--
``(A) because of the nature of the market served by
the cable system concerned--
``(i) the incumbent cable operator would be
subjected to undue economic distress by the
enforcement of such subsection; or
``(ii) the cable system would not be
economically viable if such subsection were
enforced; and
``(B) the local franchising authority approves of
such waiver.
``(2) Deadline for action.--The Commission shall act to
approve or disapprove a waiver application within 180 days
after the date it is filed.
``SEC. 656. APPLICABILITY OF PARTS I THROUGH IV.
``(a) In General.--Any provision that applies to a cable operator
under--
``(1) sections 613 (other than subsection (a)(2) thereof),
616, 617, 628, 631, 632, and 634 of this title, shall apply,
``(2) sections 611, 612, 614, and 615 of this title, and
section 325 of title III, shall apply in accordance with the
regulations prescribed under subsection (b), and
``(3) parts III and IV (other than sections 628, 631, 632,
and 634) of this title shall not apply,
to any video programming affiliate established by a common carrier in
accordance with the requirements of this part.
``(b) Implementation.--
``(1) Commission action.--The Commission shall prescribe
regulations to ensure that a common carrier in the operation of
its video platform shall provide (A) capacity, services,
facilities, and equipment for public, educational, and
governmental use, (B) capacity for commercial use, (C) carriage
of commercial and non-commercial broadcast television stations,
and (D) an opportunity for commercial broadcast stations to
choose between mandatory carriage and reimbursement for
retransmission of the signal of such station. In prescribing
such regulations, the Commission shall, to the extent possible,
impose obligations that are no greater or lesser than the
obligations contained in the provisions described in subsection
(a)(2) of this section.
``(2) Fees.--A video programming affiliate of any common
carrier that establishes a video platform under this part, and
any multichannel video programming distributor offering a
competing service using such video platform (as determined in
accordance with regulations of the Commission), shall be
subject to the payment of fees imposed by a local franchising
authority, in lieu of the fees required under section 622. The
rate at which such fees are imposed shall not exceed the rate
at which franchise fees are imposed on any cable operator
transmitting video programming in the same service area.
``SEC. 657. RURAL AREA EXEMPTION.
``The provisions of sections 652, 653, and 655 shall not apply to
video programming provided in a rural area by a common carrier that
provides telephone exchange service in the same area.''.
SEC. 202. COMPETITION FROM CABLE SYSTEMS.
(a) Definition of Cable Service.--Section 602(6)(B) of the Act (47
U.S.C. 522(6)(B)) is amended by inserting ``or use'' after ``the
selection''.
(b) Clustering.--Section 613 of the Act (47 U.S.C. 533) is amended
by adding at the end the following new subsection:
``(i) Acquisition of Cable Systems.--Except as provided in section
655, the Commission may not require divestiture of, or restrict or
prevent the acquisition of, an ownership interest in a cable system by
any person based in whole or in part on the geographic location of such
cable system.''.
(c) Equipment.--Section 623(a) of the Act (47 U.S.C. 543(a)) is
amended--
(1) in paragraph (6)--
(A) by striking ``paragraph (4)'' and inserting
``paragraph (5)'';
(B) by striking ``paragraph (5)'' and inserting
``paragraph (6)''; and
(C) by striking ``paragraph (3)'' and inserting
``paragraph (4)'';
(2) by redesignating paragraphs (3) through (6) as
paragraphs (4) through (7), respectively; and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) Equipment.--If the Commission finds that a cable
system is subject to effective competition under subparagraph
(D) of subsection (l)(1), the rates for equipment,
installations, and connections for additional television
receivers (other than equipment, installations, and connections
furnished by such system to subscribers who receive only a rate
regulated basic service tier) shall not be subject to
regulation by the Commission or by a State or franchising
authority. If the Commission finds that a cable system is
subject to effective competition under subparagraph (A), (B),
or (C) of subsection (l)(1), the rates for any equipment,
installations, and connections furnished by such system to any
subscriber shall not be subject to regulation by the
Commission, or by a State or franchising authority. No Federal
agency, State, or franchising authority may establish the price
or rate for the installation, sale, or lease of any equipment
furnished to any subscriber by a cable system solely in
connection with video programming offered on a per channel or
per program basis.''.
(d) Limitation on Basic Tier Rate Increases; Scope of Review.--
Section 623(a) of the Act (47 U.S.C. 543(a)) is further amended by
adding at the end the following new paragraph:
``(8) Limitation on basic tier rate increases; scope of
review.--A cable operator may not increase its basic service
tier rate more than once every 6 months. Such increase may be
implemented, using any reasonable billing or proration method,
30 days after providing notice to subscribers and the
appropriate regulatory authority. The rate resulting from such
increase shall be deemed reasonable and shall not be subject to
reduction or refund if the franchising authority or the
Commission, as appropriate, does not complete its review and
issue a final order within 90 days after implementation of such
increase. The review by the franchising authority or the
Commission of any future increase in such rate shall be limited
to the incremental change in such rate effected by such
increase.''.
(e) National Information Infrastructure Development.--Section
623(a) of the Act (47 U.S.C. 543) is further amended by adding at the
end the following new paragraph:
``(9) National information infrastructure.--
``(A) Purpose.--It is the purpose of this paragraph
to--
``(i) promote the development of the
National Information Infrastructure;
``(ii) enhance the competitiveness of the
National Information Infrastructure by ensuring
that cable operators have incentives comparable
to other industries to develop such
infrastructure; and
``(iii) encourage the rapid deployment of
digital technology necessary to the development
of the National Information Infrastructure.
``(B) Aggregation of equipment costs.--The
Commission shall allow cable operators, pursuant to any
rules promulgated under subsection (b)(3), to
aggregate, on a franchise, system, regional, or company
level, their equipment costs into broad categories,
such as converter boxes, regardless of the varying
levels of functionality of the equipment within each
such broad category. Such aggregation shall not be
permitted with respect to equipment used by subscribers
who receive only a rate regulated basic service tier.
``(C) Revision to commission rules; forms.--Within
120 days of the date of enactment of this paragraph,
the Commission shall issue revisions to the appropriate
rules and forms necessary to implement subparagraph
(B).''.
(f) Complaint Threshold; Scope of Commission Review.--Section
623(c) of the Act (47 U.S.C. 543(c)) is amended--
(1) by striking paragraph (3) and inserting the following:
``(3) Review of complaints.--
``(A) Complaint threshold.--The Commission shall
have the authority to review any increase in the rates
for cable programming services implemented after the
date of enactment of the Communications Act of 1995
only if, within 90 days after such increase becomes
effective, at least 10 subscribers to such services or
3 percent of the subscribers to such services,
whichever is greater, file separate, individual
complaints against such increase with the Commission in
accordance with the requirements established under
paragraph (1)(B).
``(B) Time period for commission review.--The
Commission shall complete its review of any such
increase and issue a final order within 90 days after
it receives the number of complaints required by
subparagraph (A).
``(4) Treatment of pending cable programming services
complaints.--Upon enactment of the Communications Act of 1995,
the Commission shall suspend the processing of all pending
cable programming services rate complaints. These pending
complaints shall be counted by the Commission toward the
complaint threshold specified in paragraph (3)(A). Parties
shall have an additional 90 days from the date of enactment of
such Act to file complaints about prior increases in cable
programming services rates if such rate increases were already
subject to a valid, pending complaint on such date of
enactment. At the expiration of such 90-day period, the Commission
shall dismiss all pending cable programming services rate cases for
which the complaint threshold has not been met, and may resume its
review of those pending cable programming services rate cases for which
the complaint threshold has been met, which review shall be completed
within 180 days after the date of enactment of the Communications Act
of 1995.
``(5) Scope of commission review.--A cable programming
services rate shall be deemed not unreasonable and shall not be
subject to reduction or refund if--
``(A) such rate was not the subject of a pending
complaint at the time of enactment of the
Communications Act of 1995;
``(B) such rate was the subject of a complaint that
was dismissed pursuant to paragraph (4);
``(C) such rate resulted from an increase for which
the complaint threshold specified in paragraph (3)(A)
has not been met;
``(D) the Commission does not complete its review
and issue a final order in the time period specified in
paragraph (3)(B) or (4); or
``(E) the Commission issues an order finding such
rate to be not unreasonable.
The review by the Commission of any future increase in such
rate shall be limited to the incremental change in such rate
effected by such increase.'';
(2) in paragraph (1)(B) by striking ``obtain Commission
consideration and resolution of whether the rate in question is
unreasonable'' and inserting ``be counted toward the complaint
threshold specified in paragraph (3)(A)''; and
(3) in paragraph (1)(C) by striking ``such complaint'' and
inserting in lieu thereof ``the first complaint''.
(g) Uniform Rate Structure.--Section 623(d) of the Act (47 U.S.C.
543(d)) is amended to read as follows:
``(d) Uniform Rate Structure.--A cable operator shall have a
uniform rate structure throughout its franchise area for the provision
of cable services that are regulated by the Commission or the
franchising authority. Bulk discounts to multiple dwelling units shall
not be subject to this requirement.''.
(h) Effective Competition.--Section 623(l)(1) of the Act (47 U.S.C.
543(l)(1)) is amended--
(1) in subparagraph (B)(ii)--
(A) by inserting ``all'' before ``multichannel
video programming distributors''; and
(B) by striking ``or'' at the end thereof;
(2) by striking the period at the end of subparagraph (C)
and inserting ``; or''; and
(3) by adding at the end the following:
``(D) with respect to cable programming services
and subscriber equipment, installations, and
connections for additional television receivers (other
than equipment, installations, and connections
furnished to subscribers who receive only a rate
regulated basic service tier)--
``(i) a common carrier has been authorized
by the Commission to construct facilities to
provide video dialtone service in the cable
operator's franchise area;
``(ii) a common carrier has been authorized
by the Commission or pursuant to a franchise to
provide video programming directly to
subscribers in the franchise area; or
``(iii) 270 days have elapsed since the
Commission has completed all actions necessary
(including any reconsideration) to prescribe
regulations pursuant to section 653(b)(1)
relating to video platforms.''.
(i) Relief for Small Cable Operators.--Section 623 of the Act (47
U.S.C. 543) is amended by adding at the end the following new
subsection:
``(m) Small Cable Operators.--
``(1) Small cable operator relief.--A small cable operator
shall not be subject to subsections (a), (b), (c), or (d) in
any franchise area with respect to the provision of cable
programming services, or a basic service tier where such tier
was the only tier offered in such area on December 31, 1994.
``(2) Definition of small cable operator.--For purposes of
this subsection, `small cable operator' means a cable operator
that--
``(A) directly or through an affiliate, serves in
the aggregate fewer than 1 percent of all cable
subscribers in the United States; and
``(B) is not affiliated with any entity or entities
whose gross annual revenues in the aggregate exceed
$250,000,000.''.
(j) Technical Standards.--Section 624(e) of the Act (47 U.S.C.
544(e)) is amended by striking the last two sentences and inserting the
following: ``No State or franchising authority may prohibit, condition,
or restrict a cable system's use of any type of subscriber equipment or
any transmission technology.''.
(k) Cable Security Systems.--Section 624A(b)(2) of the Act (47
U.S.C. 544a(b)(2)) is amended to read as follows:
``(2) Cable security systems.--No Federal agency, State, or
franchising authority may prohibit a cable operator's use of
any security system (including scrambling, encryption, traps,
and interdiction), except that the Commission may prohibit the
use of any such system solely with respect to the delivery of a
basic service tier that, as of January 1, 1995, contained only
the signals and programming specified in section 623(b)(7)(A),
unless the use of such system is necessary to prevent the
unauthorized reception of such tier.''.
(l) Cable Equipment Compatibility.--Section 624A of the Act (47
U.S.C. 544A), is amended--
(1) in subsection (a) by striking ``and'' at the end of
paragraph (2), by striking the period at the end of paragraph
(3) and inserting ``; and''; and by adding at the end the
following new paragraph:
``(4) compatibility among televisions, video cassette
recorders, and cable systems can be assured with narrow
technical standards that mandate a minimum degree of common
design and operation, leaving all features, functions, protocols, and
other product and service options for selection through open
competition in the market.'';
(2) in subsection (c)(1)--
(A) by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively; and
(B) by inserting before such redesignated
subparagraph (B) the following new subparagraph:
``(A) the need to maximize open competition in the
market for all features, functions, protocols, and
other product and service options of converter boxes
and other cable converters unrelated to the
descrambling or decryption of cable television
signals;''; and
(3) in subsection (c)(2)--
(A) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(B) by inserting after subparagraph (C) the
following new subparagraph:
``(D) to ensure that any standards or regulations
developed under the authority of this section to ensure
compatibility between televisions, video casette
recorders, and cable systems do not affect features,
functions, protocols, and other product and service
options other than those specified in paragraph (1)(B),
including telecommunications interface equipment, home
automation communications, and computer network
services;''.
(m) Retiering of Basic Tier Services.--Section 625(d) of the Act
(47 U.S.C. 543(d)) is amended by adding at the end the following new
sentence: ``Any signals or services carried on the basic service tier
but not required under section 623(b)(7)(A) may be moved from the basic
service tier at the operator's sole discretion, provided that the
removal of such a signal or service from the basic service tier is
permitted by contract. The movement of such signals or services to an
unregulated package of services shall not subject such package to
regulation.''.
(n) Subscriber Notice.--Section 632 of the Act (47 U.S.C. 552) is
amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Subscriber Notice.--A cable operator may provide notice of
service and rate changes to subscribers using any reasonable written
means at its sole discretion. Notwithstanding section 623(b)(6) or any
other provision of this Act, a cable operator shall not be required to
provide prior notice of any rate change that is the result of a
regulatory fee, franchise fee, or any other fee, tax, assessment, or
charge of any kind imposed by any Federal agency, State, or franchising
authority on the transaction between the operator and the
subscriber.''.
(o) Treatment of Prior Year Losses.--
(1) Amendment.--Section 623 (48 U.S.C. 543) is amended by
adding at the end thereof the following:
``(n) Treatment of Prior Year Losses.--Notwithstanding any other
provision of this section or of section 612, losses (including losses
associated with the acquisitions of such franchise) that were incurred
prior to September 4, 1992, with respect to a cable system that is
owned and operated by the original franchisee of such system shall not
be disallowed, in whole or in part, in the determination of whether the
rates for any tier of service or any type of equipment that is subject
to regulation under this section are lawful.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date of enactment of this Act and
shall be applicable to any rate proposal filed on or after
September 4, 1993.
SEC. 203. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.
Title VII of the Act is amended by adding at the end the following
new section:
``SEC. 713. COMPETITIVE AVAILABILITY OF NAVIGATION DEVICES.
``(a) Definitions.--As used in this section:
``(1) The term `telecommunications subscription service'
means the provision directly to subscribers of video, voice, or
data services for which a subscriber charge is made.
``(2) The term `telecommunications system' or a
`telecommunications system operator' means a provider of
telecommunications subscription service.
``(b) Competitive Consumer Availability of Customer Premises
Equipment.--The Commission shall adopt regulations to assure
competitive availability, to consumers of telecommunications
subscription services, of converter boxes, interactive communications
devices, and other customer premises equipment from manufacturers,
retailers, and other vendors not affiliated with any telecommunications
system operator. Such regulations shall not prohibit any
telecommunications system operator from also offering devices and
customer premises equipment to consumers, provided that the system
operator's charges to consumers for such devices and equipment are
separately stated and not subsidized by charges for any
telecommunications subscription service.
``(c) Protection of System Security.--The Commission shall not
prescribe regulations pursuant to subsection (b) which would jeopardize
the security of a telecommunications system or impede the legal rights
of a provider of such service to prevent theft of service.
``(d) Waiver for New Network Services.--The Commission shall waive
a regulation adopted pursuant to subsection (b) for a limited time upon
an appropriate showing by a telecommunications system operator that
such waiver is necessary to assist the development or introduction of a
new or improved telecommunications subscription service or technology.
``(e) Avoidance of Redundant Regulations.--
``(1) Market competitiveness determinations.--
Determinations made or regulations prescribed by the Commission
with respect to market competitiveness of customer premises
equipment prior to the date of enactment of this section shall
fulfill the requirements of this section.
``(2) Regulations.--Nothing in this section affects the
Commission's regulations governing the interconnection and
competitive provision of customer premises equipment used in
connection with basic telephone service.
``(f) Sunset.--The regulations adopted pursuant to this section
shall cease to apply to any market for the acquisition of converter
boxes, interactive communications devices, or other customer premises
equipment when the Commission determines that such market is
competitive.''.
SEC. 204. VIDEO PROGRAMMING ACCESSIBILITY.
(a) Commission Inquiry.--Within 180 days after the date of
enactment of this section, the Federal Communications Commission shall
complete an inquiry to ascertain the level at which video programming
is closed captioned. Such inquiry shall examine the extent to which
existing or previously published programming is closed captioned, the
size of the video programming provider or programming owner providing
closed captioning, the size of the market served, the relative audience
shares achieved, or any other related factors. The Commission shall
submit to the Congress a report on the results of such inquiry.
(b) Accountability Criteria.--Within 18 months after the date of
enactment, the Commission shall prescribe such regulations as are
necessary to implement this section. Such regulations shall ensure
that--
(1) video programming first published or exhibited after
the effective date of such regulations is fully accessible
through the provision of closed captions, except as provided in
subsection (d); and
(2) video programming providers or owners maximize the
accessibility of video programming first published or exhibited
prior to the effective date of such regulations through the
provision of closed captions, except as provided in subsection
(d).
(c) Deadlines for Captioning.--Such regulations shall include an
appropriate schedule of deadlines for the provision of closed
captioning of video programming.
(d) Exemptions.--Notwithstanding subsection (b)--
(1) the Commission may exempt by regulation programs,
classes of programs, or services for which the Commission has
determined that the provision of closed captioning would be
economically burdensome to the provider or owner of such
programming;
(2) a provider of video programming or the owner of any
program carried by the provider shall not be obligated to
supply closed captions if such action would be inconsistent
with contracts in effect on the date of enactment of this Act,
except that nothing in this section shall be construed to
relieve a video programming provider of its obligations to
provide services required by Federal law; and
(3) a provider of video programming or program owner may
petition the Commission for an exemption from the requirements
of this section, and the Commission may grant such petition
upon a showing that the requirements contained in this section
would result in an undue burden.
(e) Undue Burden.--The term ``undue burden'' means significant
difficulty or expense. In determining whether the closed captions
necessary to comply with the requirements of this paragraph would
result in an undue economic burden, the factors to be considered
include--
(1) the nature and cost of the closed captions for the
programming;
(2) the impact on the operation of the provider or program
owner;
(3) the financial resources of the provider or program
owner; and
(4) the type of operations of the provider or program
owner.
(f) Video Descriptions Inquiry.--Within 6 months after the date of
enactment of this Act, the Commission shall commence an inquiry to
examine the use of video descriptions on video programming in order to
ensure the accessibility of video programming to persons with visual
impairments, and report to Congress on its findings. The Commission's
report shall assess appropriate methods and schedules for phasing video
descriptions into the marketplace, technical and quality standards for
video descriptions, a definition of programming for which video
descriptions would apply, and other technical and legal issues that the
Commission deems appropriate. Following the completion of such inquiry,
the Commission may adopt regulation it deems necessary to promote the
accessibility of video programming to persons with visual impairments.
(g) Video Description.--For purposes of this section, ``video
description'' means the insertion of audio narrated descriptions of a
television program's key visual elements into natural pauses between
the program's dialogue.
(h) Private Rights of Actions Prohibited.--Nothing in this section
shall be construed to authorize any private right of action to enforce
any requirement of this section or any regulation thereunder. The
Commission shall have exclusive jurisdiction with respect to any
complaint under this section.
SEC. 205. TECHNICAL AMENDMENTS.
(a) Retransmission.--Section 325(b)(2)(D) of the Act (47 U.S.C.
325(b)(2)(D)) is amended to read as follows:
``(D) retransmission by a cable operator or other
multichannel video programming distributor of the signal of a
superstation if (i) the customers served by the cable operator
or other multichannel video programming distributor reside
outside the originating station's television market, as defined
by the Commission for purposes of section 614(h)(1)(C); (ii)
such signal was obtained from a satellite carrier or
terrestrial microwave common carrier; and (iii) and the
origination station was a superstation on May 1, 1991.''.
(b) Market Determinations.--Section 614(h)(1)(C)(i) of the Act (47
U.S.C. 534(h)(1)(C)(i)) is amended by striking out ``in the manner
provided in section 73.3555(d)(3)(i) of title 47, Code of Federal
Regulations, as in effect on May 1, 1991,'' and inserting ``by the
Commission by regulation or order using, where available, commercial
publications which delineate television markets based on viewing
patterns,''.
(c) Time for Decision.--Section 614(h)(1)(C)(iv) of such Act is
amended to read as follows:
``(iv) Within 120 days after the date a request is
filed under this subparagraph, the Commission shall
grant or deny the request.''.
(d) Processing of Pending Complaints.--The Commission shall, unless
otherwise informed by the person making the request, assume that any
person making a request to include or exclude additional communities
under section 614(h)(1)(C) of such Act (as in effect prior to the date
of enactment of this Act) continues to request such inclusion or
exclusion under such section as amended under subsection (b).
TITLE III--BROADCAST COMMUNICATIONS COMPETITIVENESS
SEC. 301. BROADCASTER SPECTRUM FLEXIBILITY.
Title III of the Act is amended by inserting after section 335 (47
U.S.C. 335) the following new section:
``SEC. 336. BROADCAST SPECTRUM FLEXIBILITY.
``(a) Commission Action.--If the Commission determines to issue
additional licenses for advanced television services, the Commission
shall--
``(1) limit the initial eligibility for such licenses to
persons that, as of the date of such issuance, are licensed to
operate a television broadcast station or hold a permit to
construct such a station (or both); and
``(2) adopt regulations that allow such licensees or
permittees to offer such ancillary or supplementary services on
designated frequencies as may be consistent with the public
interest, convenience, and necessity.
``(b) Contents of Regulations.--In prescribing the regulations
required by subsection (a), the Commission shall--
``(1) only permit such licensee or permittee to offer
ancillary or supplementary services if the use of a designated
frequency for such services is consistent with the technology
or method designated by the Commission for the provision of
advanced television services;
``(2) limit the broadcasting of ancillary or supplementary
services on designated frequencies so as to avoid derogation of
any advanced television services, including high definition
television broadcasts, that the Commission may require using
such frequencies;
``(3) apply to any other ancillary or supplementary service
such of the Commission's regulations as are applicable to the
offering of analogous services by any other person, except that
no ancillary or supplementary service shall have any rights to
carriage under section 614 or 615 or be deemed a multichannel
video programming distributor for purposes of section 628;
``(4) adopt such technical and other requirements as may be
necessary or appropriate to assure the quality of the signal
used to provide advanced television services, and may adopt
regulations that stipulate the minimum number of hours per day
that such signal must be transmitted; and
``(5) prescribe such other regulations as may be necessary
for the protection of the public interest, convenience, and
necessity.
``(c) Recovery of License.--
``(1) Conditions required.--If the Commission grants a
license for advanced television services to a person that, as
of the date of such issuance, is licensed to operate a
television broadcast station or holds a permit to construct
such a station (or both), the Commission shall, as a condition
of such license, require that, upon a determination by the Commission
pursuant to the regulations prescribed under paragraph (2), either the
additional license or the original license held by the licensee be
surrendered to the Commission in accordance with such regulations for
reallocation or reassignment (or both) pursuant to Commission
regulation.
``(2) Criteria.--The Commission shall prescribe criteria
for rendering determinations concerning license surrender
pursuant to license conditions required by paragraph (1). Such
criteria shall--
``(A) require such determinations to be based, on a
market-by-market basis, on whether the substantial
majority of the public have obtained television
receivers that are capable of receiving advanced
television services; and
``(B) not require the cessation of the broadcasting
under either the original or additional license if such
cessation would render the television receivers of a
substantial portion of the public useless, or otherwise
cause undue burdens on the owners of such television
receivers.
``(3) Auction of returned spectrum.--Any license
surrendered under the requirements of this subsection shall be
subject to assignment by use of competitive bidding pursuant to
section 309(j), notwithstanding any limitations contained in
paragraph (2) of such section.
``(d) Fees.--
``(1) Services to which fees apply.--If the regulations
prescribed pursuant to subsection (a) permit a licensee to
offer ancillary or supplementary services on a designated
frequency--
``(A) for which the payment of a subscription fee
is required in order to receive such services, or
``(B) for which the licensee directly or indirectly
receives compensation from a third party in return for
transmitting material furnished by such third party
(other than commercial advertisements used to support
broadcasting for which a subscription fee is not
required),
the Commission shall establish a program to assess and collect
from the licensee for such designated frequency an annual fee
or other schedule or method of payment that promotes the
objectives described in subparagraphs (A) and (B) of paragraph
(2).
``(2) Collection of fees.--The program required by
paragraph (1) shall--
``(A) be designed (i) to recover for the public a
portion of the value of the public spectrum resource
made available for such commercial use, and (ii) to
avoid unjust enrichment through the method employed to
permit such uses of that resource;
``(B) recover for the public an amount that, to the
extent feasible, equals but does not exceed (over the
term of the license) the amount that would have been
recovered had such services been licensed pursuant to
the provisions of section 309(j) of this Act and the
Commission's regulations thereunder; and
``(C) be adjusted by the Commission from time to
time in order to continue to comply with the
requirements of this paragraph.
``(3) Treatment of revenues.--
``(A) General rule.--Except as provided in
subparagraph (B), all proceeds obtained pursuant to the
regulations required by this subsection shall be
deposited in the Treasury in accordance with chapter 33
of title 31, United States Code.
``(B) Retention of revenues.--Notwithstanding
subparagraph (A), the salaries and expenses account of
the Commission shall retain as an offsetting collection
such sums as may be necessary from such proceeds for
the costs of developing and implementing the program
required by this section and regulating and supervising
advanced television services. Such offsetting
collections shall be available for obligation subject
to the terms and conditions of the receiving
appropriations account, and shall be deposited in such
accounts on a quarterly basis.
``(4) Report.--Within 5 years after the date of the
enactment of this section, the Commission shall report to the
Congress on the implementation of the program required by this
subsection, and shall annually thereafter advise the Congress
on the amounts collected pursuant to such program.
``(e) Evaluation.--Within 10 years after the date the Commission
first issues additional licenses for advanced television services, the
Commission shall conduct an evaluation of the advanced television
services program. Such evaluation shall include--
``(1) an assessment of the willingness of consumers to
purchase the television receivers necessary to receive
broadcasts of advanced television services;
``(2) an assessment of alternative uses, including public
safety use, of the frequencies used for such broadcasts; and
``(3) the extent to which the Commission has been or will
be able to reduce the amount of spectrum assigned to licensees.
``(f) Definitions.--As used in this section:
``(1) Advanced television services.--The term `advanced
television services' means television services provided using
digital or other advanced technology as further defined in the
opinion, report, and order of the Commission entitled `Advanced
Television Systems and Their Impact Upon the Existing
Television Broadcast Service', MM Docket 87-268, adopted
September 17, 1992, and successor proceedings.
``(2) Designated frequencies.--The term `designated
frequency' means each of the frequencies designated by the
Commission for licenses for advanced television services.
``(3) High definition television.--The term `high
definition television' refers to systems that offer
approximately twice the vertical and horizontal resolution of
receivers generally available on the date of enactment of this
section, as further defined in the proceedings described in
paragraph (1) of this subsection.''.
SEC. 302. BROADCAST OWNERSHIP.
Title III of the Act is amended by inserting after section 336 (as
added by section 301) the following new section:
``SEC. 337. BROADCAST OWNERSHIP.
``(a) Limitations on Commission Rulemaking Authority.--Except as
expressly permitted in this section, and consistent with section 613(a)
of the Act, the Commission shall not prescribe or enforce any
regulation--
``(1) prohibiting or limiting, either nationally or within
any particular area, a person or entity from holding any form
of ownership or other interest in two or more broadcasting
stations or in a broadcasting station and any other medium of
mass communication; or
``(2) prohibiting a person or entity from owning,
operating, or controlling two or more networks of broadcasting
stations or from owning, operating, or controlling a network of
broadcasting stations and any other medium of mass
communications.
``(b) Television Ownership Limitations.--
``(1) National audience reach limitations.--The Commission
shall prohibit a person or entity from obtaining any license if
such license would result in such person or entity directly or
indirectly owning, operating, or controlling, or having a
cognizable interest in, television stations which have an
aggregate national audience reach exceeding 35 percent. Within
3 years after such date of enactment, the Commission shall
conduct a study on the operation of this paragraph and submit a
report to the Congress on the development of competition in the
television marketplace and the need for any revisions to or
elimination of this paragraph.
``(2) Multiple licenses in a market.--
``(A) In general.--The Commission shall prohibit a
person or entity from obtaining any license if such
license would result in such person or entity directly
or indirectly owning, operating, or controlling, or
having a cognizable interest in, two or more television
stations within the same television market.
``(B) Exception for multiple uhf stations and for
uhf-vhf combinations.--Notwithstanding subparagraph
(A), the Commission shall not prohibit a person or
entity from directly or indirectly owning, operating,
or controlling, or having a cognizable interest in, two
television stations within the same television market
if at least one of such stations is a UHF television,
unless the Commission determines that permitting such
ownership, operation, or control will harm competition
or will harm the preservation of a diversity of media
voices in the local television market.
``(C) Exception for vhf-vhf combinations.--
Notwithstanding subparagraph (A), the Commission may
permit a person or entity to directly or indirectly
own, operate, or control, or have a cognizable interest
in, two VHF television stations within the same
television market, if the Commission determines that
permitting such ownership, operation, or control will
not harm competition and will not harm the preservation
of a diversity of media voices in the local television
market.
``(c) Local Cross-Media Ownership Limits.--In a proceeding to
grant, renew, or authorize the assignment of any station license under
this title, the Commission may deny the application if the Commission
determines that the combination of such station and more than one other
nonbroadcast media of mass communication would result in an undue
concentration of media voices in the respective local market. In
considering any such combination, the Commission shall not grant the
application if all the media of mass communication in such local market
would be owned, operated, or controlled by two or fewer persons or
entities. This subsection shall not constitute authority for the
Commission to prescribe regulations containing local cross-media
ownership limitations. The Commission may not, under the authority of
this subsection, require any person or entity to divest itself of any
portion of any combination of stations and other media of mass
communications that such person or entity owns, operates, or controls
on the date of enactment of this section unless such person or entity
acquires another station or other media of mass communications after
such date in such local market.
``(d) Transition Provisions.--Any provision of any regulation
prescribed before the date of enactment of this section that is
inconsistent with the requirements of this section shall cease to be
effective on such date of enactment. The Commission shall complete all
actions (including any reconsideration) necessary to amend its
regulations to conform to the requirements of this section not later
than 6 months after such date of enactment. Nothing in this section
shall be construed to prohibit the continuation or renewal of any
television local marketing agreement that is in effect on such date of
enactment and that is in compliance with Commission regulations on such
date.''.
SEC. 303. FOREIGN INVESTMENT AND OWNERSHIP.
(a) Station Licenses.--Section 310(a) (47 U.S.C. 310(a)) is amended
to read as follows:
``(a) Grant to or Holding by Foreign Government or
Representative.--No station license required under title III of this
Act shall be granted to or held by any foreign government or any
representative thereof. This subsection shall not apply to licenses
issued under such terms and conditions as the Commission may prescribe
to mobile earth stations engaged in occasional or short-term
transmissions via satellite of audio or television program material and
auxilliary signals if such transmissions are not intended for direct
reception by the general public in the United States.''.
(b) Termination of Foreign Ownership Restrictions.--Section 310 (47
U.S.C. 310) is amended by adding at the end thereof the following new
subsection:
``(f) Termination of Foreign Ownership Restrictions.--
``(1) Restriction not to apply.--Subsection (b) shall not
apply to any common carrier license granted, held, or for which
application is made, after the date of enactment of this
subsection with respect to any alien (or representative
thereof), corporation, or foreign government (or representative
thereof) if--
``(A) the President determines--
``(i) that the foreign country of which
such alien is a citizen, in which such
corporation is organized, or in which the
foreign government is in control is party to an
international agreement which requires the
United States to provide national or most-
favored-nation treatment in the grant of common
carrier licenses; and
``(ii) that not applying subsection (b)
would be consistent with national security and
effective law enforcement; or
``(B) the Commission determines that not applying
subsection (b) would serve the public interest.
``(2) Commission considerations.--In making its
determination under paragraph (1), the Commission shall abide
by any decision of the President whether application of section
(b) is in the public interest due to national security, law
enforcement, foreign policy or trade (including direct
investment as it relates to international trade policy)
concerns, or due to the interpretation of international
agreements. In the absence of a decision by the President, the
Commission may consider, among other public interest factors,
whether effective competitive opportunities are available to
United States nationals or corporations in the applicant's home
market. Upon receipt of an application that requires a
determination under this paragraph, the Commission shall cause
notice of the application to be given to the President or any
agencies designated by the President to receive such
notification. The Commission shall not make a determination
under paragraph (1)(B) earlier than 30 days after the end of
the pleading cycle or later than 180 days after the end of the
pleading cycle.
``(3) Further commission review.--The Commission may
determine that, due to changed circumstances relating to United
States national security or law enforcement, a prior
determination under paragraph (1) ought to be reversed or
altered. In making this determination, the Commission shall
accord great deference to any recommendation of the President
with respect to United States national security or law
enforcement. If a determination under this paragraph is made
then--
``(A) subsection (b) shall apply with respect to
such aliens, corporation, and government (or their
representatives) on the date that the Commission
publishes notice of its determination under this
paragraph; and
``(B) any license held, or application filed, which
could not be held or granted under subsection (b) shall
be reviewed by the Commission under the provisions of
paragraphs (1)(B) and (2).
``(4) Notification to congress.--The President and the
Commission shall notify the appropriate committees of the
Congress of any determinations made under paragraph (1), (2),
or (3).
``(5) Miscellaneous.--Any Presidential decisions made under
the provisions of this subsection shall not be subject to
judicial review.''.
(c) Effective Dates.--The amendments made by this section shall not
apply to any proceeding commenced before the date of enactment of this
Act.
SEC. 304. FAMILY VIEWING EMPOWERMENT.
(a) Findings.--The Congress makes the following findings:
(1) Television is pervasive in daily life and exerts a
powerful influence over the perceptions of viewers, especially
children, concerning the society in which we live.
(2) Children completing elementary school have been exposed
to 25 or more hours of television per week and as many as 11
hours per day.
(3) Children completing elementary school have been exposed
to an estimated average of 8,000 murders and 100,000 acts of
violence on television.
(4) Studies indicate that the exposure of young children to
such levels of violent programming correlates to an increased
tendency toward and tolerance of violent and aggressive
behavior in later years.
(5) Studies also suggest that the depiction of other
material such as sexual conduct in a cavalier and amoral
context may undermine the ability of parents to instill in
their children responsible attitudes regarding such activities.
(6) Studies also suggest that a significant relationship
exists between exposure to television violence and antisocial
acts, including serious, violent criminal offenses.
(7) Parents and other viewers are increasingly demanding
that they be empowered to make and implement viewing choices
for themselves and their families.
(8) The public is becoming increasingly aware of and
concerned about objectionable video programming content.
(9) The broadcast television industry and other video
programmers have a responsibility to assess the impact of their
work and to understand the damage that comes from the
incessant, repetitive, mindless violence and irresponsible
content.
(10) The broadcast television industry and other video
programming distributors should be committed to facilitating
viewers' access to the information and capabilities required to
prevent the exposure of their children to excessively violent
and otherwise objectionable and harmful video programming.
(11) The technology for implementing individual viewing
choices is rapidly advancing and numerous options for viewer
control are or soon will be available in the marketplace at
affordable prices.
(12) There is a compelling national interest in ensuring
that parents are provided with the information and capabilities
required to prevent the exposure of their children to
excessively violent and otherwise objectionable and harmful
video programming.
(b) Policy.--It is the policy of the United States to--
(1) encourage broadcast television, cable, satellite,
syndication, other video programming distributors, and relevant
related industries (in consultation with appropriate public
interest groups and interested individuals from the private
sector) to--
(A) establish a technology fund to encourage
television and electronics equipment manufacturers to
facilitate the development of technology which would
empower parents to block programming they deem
inappropriate for their children;
(B) report to the viewing public on the status of
the development of affordable, easy to use blocking
technology; and
(C) establish and promote effective procedures,
standards, systems, advisories, or other mechanisms for
ensuring that users have easy and complete access to
the information necessary to effectively utilize
blocking technology; and
(2) evaluate whether, not later than 1 year after the date
of enactment of this Act, industry-wide procedures, standards,
systems advisories, or other mechanisms established by the
broadcast television, cable satellite, syndication, other video
programming distribution, and relevant related industries--
(A) are informing viewers regarding their options
to utilize blocking technology; and
(B) encouraging the development of blocking
technologies.
(c) GAO Audit.--
(1) Audit required.--No later than 18 months after the date
of the enactment of this Act, the Comptroller General shall
submit to Congress an evaluation of--
(A) the proliferation of new and existing blocking
technology;
(B) the accessibility of information to empower
viewing choices; and
(C) the consumer satisfaction with information and
technological solutions.
(2) Contents of evaluation.--The evaluation shall--
(A) describe the blocking technology available to
viewers including the costs thereof; and
(B) assess the extent of consumer knowledge and
attitudes toward available blocking technologies;
(3) describe steps taken by broadcast, cable, satellite,
syndication, and other video programming distribution services
to inform the public and promote the availability of viewer
empowerment technologies, devices, and techniques;
(4) evaluate the degree to which viewer empowerment
technology is being utilized;
(5) assess consumer satisfaction with technological
options; and
(6) evaluate consumer demand for information and
technological solutions.
SEC. 305. PARENTAL CHOICE IN TELEVISION PROGRAMMING.
(a) Findings.--The Congress makes the following findings:
(1) Television influences children's perception of the
values and behavior that are common and acceptable in society.
(2) Television station operators, cable television system
operators, and video programmers should follow practices in
connection with video programming that take into consideration
that television broadcast and cable programming has established
a uniquely pervasive presence in the lives of American
children.
(3) The average American child is exposed to 25 hours of
television each week and some children are exposed to as much
as 11 hours of television a day.
(4) Studies have shown that children exposed to violent
video programming at a young age have a higher tendency for
violent and aggressive behavior later in life than children not
so exposed, and that children exposed to violent video
programming are prone to assume that acts of violence are
acceptable behavior.
(5) Children in the United States are, on average, exposed
to an estimated 8,000 murders and 100,000 acts of violence on
television by the time the child completes elementary school.
(6) Studies indicate that children are affected by the
pervasiveness and casual treatment of sexual material on
television, eroding the ability of parents to develop
responsible attitudes and behavior in their children.
(7) Parents express grave concern over violent and sexual
video programming and strongly support technology that would
give them greater control to block video programming in the
home that they consider harmful to their children.
(8) There is a compelling governmental interest in
empowering parents to limit the negative influences of video
programming that is harmful to children.
(9) Providing parents with timely information about the
nature of upcoming video programming and with the technological
tools that allow them easily to block violent, sexual, or other
programming that they believe harmful to their children is the
least restrictive and most narrowly tailored means of achieving
that compelling governmental interest.
(b) Establishment of Television Rating Code.--Section 303 of the
Act (47 U.S.C. 303) is amended by adding at the end the following:
``(v) Prescribe--
``(1) on the basis of recommendations from an advisory
committee established by the Commission that is composed of
parents, television broadcasters, television programming
producers, cable operators, appropriate public interest groups,
and other interested individuals from the private sector and
that is fairly balanced in terms of political affiliation, the
points of view represented, and the functions to be performed
by the committee, guidelines and recommended procedures for the
identification and rating of video programming that contains
sexual, violent, or other indecent material about which parents
should be informed before it is displayed to children, provided
that nothing in this paragraph shall be construed to authorize
any rating of video programming on the basis of its political
or religious content; and
``(2) with respect to any video programming that has been
rated (whether or not in accordance with the guidelines and
recommendations prescribed under paragraph (1)), rules
requiring distributors of such video programming to transmit
such rating to permit parents to block the display of video
programming that they have determined is inappropriate for
their children.''.
(c) Requirement for Manufacture of Televisions That Block
Programs.--Section 303 of the Act, as amended by subsection (a), is
further amended by adding at the end the following:
``(w) Require, in the case of apparatus designed to receive
television signals that are manufactured in the United States or
imported for use in the United States and that have a picture screen 13
inches or greater in size (measured diagonally), that such apparatus be
equipped with circuitry designed to enable viewers to block display of
all programs with a common rating, except as otherwise permitted by
regulations pursuant to section 330(c)(4).''.
(d) Shipping or Importing of Televisions That Block Programs.--
(1) Regulations.--Section 330 of the Communications Act of
1934 (47 U.S.C. 330) is amended--
(A) by redesignating subsection (c) as subsection
(d); and
(B) by adding after subsection (b) the following
new subsection (c):
``(c)(1) Except as provided in paragraph (2), no person shall ship
in interstate commerce, manufacture, assemble, or import from any
foreign country into the United States any apparatus described in
section 303(w) of this Act except in accordance with rules prescribed
by the Commission pursuant to the authority granted by that section.
``(2) This subsection shall not apply to carriers transporting
apparatus referred to in paragraph (1) without trading it.
``(3) The rules prescribed by the Commission under this subsection
shall provide for the oversight by the Commission of the adoption of
standards by industry for blocking technology. Such rules shall require
that all such apparatus be able to receive the rating signals which
have been transmitted by way of line 21 of the vertical blanking
interval and which conform to the signal and blocking specifications
established by industry under the supervision of the Commission.
``(4) As new video technology is developed, the Commission shall
take such action as the Commission determines appropriate to ensure
that blocking service continues to be available to consumers. If the
Commission determines that an alternative blocking technology exists
that--
``(A) enables parents to block programming based on
identifying programs without ratings,
``(B) is available to consumers at a cost which is
comparable to the cost of technology that allows parents to
block programming based on common ratings, and
``(C) will allow parents to block a broad range of programs
on a multichannel system as effectively and as easily as
technology that allows parents to block programming based on
common ratings,
the Commission shall amend the rules prescribed pursuant to section
303(w) to require that the apparatus described in such section be
equipped with either the blocking technology described in such section
or the alternative blocking technology described in this paragraph.''.
(2) Conforming amendment.--Section 330(d) of such Act, as
redesignated by subsection (a)(1), is amended by striking
``section 303(s), and section 303(u)'' and inserting in lieu
thereof ``and sections 303(s), 303(u), and 303(w)''.
(e) Applicability and Effective Dates.--
(1) Applicability of rating provision.--The amendment made
by subsection (b) of this section shall take effect 1 year
after the date of enactment of this Act, but only if the
Commission determines, in consultation with appropriate public
interest groups and interested individuals from the private
sector, that distributors of video programming have not, by
such date--
(A) established voluntary rules for rating video
programming that contains sexual, violent, or other
indecent material about which parents should be
informed before it is displayed to children, and such
rules are acceptable to the Commission; and
(B) agreed voluntarily to broadcast signals that
contain ratings of such programming.
(2) Effective date of manufacturing provision.--In
prescribing regulations to implement the amendment made by
subsection (c), the Federal Communications Commission shall,
after consultation with the television manufacturing industry,
specify the effective date for the applicability of the
requirement to the apparatus covered by such amendment, which
date shall not be less than one year after the date of the
enactment of this Act.
SEC. 306. TERM OF LICENSES.
Section 307(c) of the Act (47 U.S.C. 307(c)) is amended to read as
follows:
``(c) Terms of Licenses.--
``(1) Initial and renewal licenses.--Each license granted
for the operation of a broadcasting station shall be for a term
of not to exceed seven years. Upon application therefor, a
renewal of such license may be granted from time to time for a
term of not to exceed seven years from the date of expiration
of the preceding license, if the Commission finds that public
interest, convenience, and necessity would be served thereby.
Consistent with the foregoing provisions of this subsection,
the Commission may by rule prescribe the period or periods for
which licenses shall be granted and renewed for particular
classes of stations, but the Commission may not adopt or follow
any rule which would preclude it, in any case involving a
station of a particular class, from granting or renewing a
license for a shorter period than that prescribed for stations
of such class if, in its judgment, public interest,
convenience, or necessity would be served by such action.
``(2) Materials in application.--In order to expedite
action on applications for renewal of broadcasting station
licenses and in order to avoid needless expense to applicants
for such renewals, the Commission shall not require any such
applicant to file any information which previously has been
furnished to the Commission or which is not directly material
to the considerations that affect the granting or denial of
such application, but the Commission may require any new or
additional facts it deems necessary to make its findings.
``(3) Continuation pending decision.--Pending any hearing
and final decision on such an application and the disposition
of any petition for rehearing pursuant to section 405, the
Commission shall continue such license in effect.''.
SEC. 307. BROADCAST LICENSE RENEWAL PROCEDURES.
(a) Amendment.--Section 309 of the Act (47 U.S.C. 309) is amended
by adding at the end thereof the following new subsection:
``(k) Broadcast Station Renewal Procedures.--
``(1) Standards for renewal.--If the licensee of a
broadcast station submits an application to the Commission for
renewal of such license, the Commission shall grant the
application if it finds, with respect to that station, during
the preceding term of its license--
``(A) the station has served the public interest,
convenience, and necessity;
``(B) there have been no serious violations by the
licensee of this Act or the rules and regulations of
the Commission; and
``(C) there have been no other violations by the
licensee of this Act or the rules and regulations of
the Commission which, taken together, would constitute
a pattern of abuse.
``(2) Consequence of failure to meet standard.--If any
licensee of a broadcast station fails to meet the requirements
of this subsection, the Commission may deny the application for
renewal in accordance with paragraph (3), or grant such
application on terms and conditions as are appropriate,
including renewal for a term less than the maximum otherwise
permitted.
``(3) Standards for denial.--If the Commission determines,
after notice and opportunity for a hearing as provided in
subsection (e), that a licensee has failed to meet the
requirements specified in paragraph (1) and that no mitigating
factors justify the imposition of lesser sanctions, the
Commission shall--
``(A) issue an order denying the renewal
application filed by such licensee under section 308;
and
``(B) only thereafter accept and consider such
applications for a construction permit as may be filed
under section 308 specifying the channel or
broadcasting facilities of the former licensee.
``(4) Competitor consideration prohibited.--In making the
determinations specified in paragraph (1) or (2), the
Commission shall not consider whether the public interest,
convenience, and necessity might be served by the grant of a
license to a person other than the renewal applicant.''.
(b) Conforming Amendment.--Section 309(d) of the Act (47 U.S.C.
309(d)) is amended by inserting after ``with subsection (a)'' each
place such term appears the following: ``(or subsection (k) in the case
of renewal of any broadcast station license)''.
(c) Effective Date.--The amendments made by this section shall
apply to any application for renewal pending or filed on or after the
date of enactment of this Act.
SEC. 308. EXCLUSIVE FEDERAL JURISDICTION OVER DIRECT BROADCAST
SATELLITE SERVICE.
Section 303 of the Act (47 U.S.C. 303) is amended by adding at the
end thereof the following new subsection:
``(v) Have exclusive jurisdiction over the regulation of the direct
broadcast satellite service.''.
SEC. 309. AUTOMATED SHIP DISTRESS AND SAFETY SYSTEMS.
Notwithstanding any provision of the Communications Act of 1934 or
any other provision of law or regulation, a ship documented under the
laws of the United States operating in accordance with the Global
Maritime Distress and Safety System provisions of the Safety of Life at
Sea Convention shall not be required to be equipped with a radio
telegraphy station operated by one or more radio officers or operators.
This section shall take effect for each vessel upon a determination by
the United States Coast Guard that such vessel has the equipment
required to implement the Global Maritime Distress and Safety System
installed and operating in good working condition.
SEC. 310. RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.
Within 180 days after the enactment of this Act, the Commission
shall, pursuant to section 303, promulgate regulations to prohibit
restrictions that inhibit a viewer's ability to receive video
programming services through signal receiving devices designed for off-
the-air reception of television broadcast signals or direct broadcast
satellite services.
SEC. 311. DBS SIGNAL SECURITY.
Section 705(e)(4) of the Act (47 U.S.C. 605(e)) is amended by
inserting after ``satellite cable programming'' the following: ``or
programming of a licensee in the direct broadcast satellite service''.
SEC. 312. DELEGATION OF EQUIPMENT TESTING AND CERTIFICATION TO PRIVATE
LABORATORIES.
Section 302 of the Act (47 U.S.C. 302) is amended by adding at the
end the following:
``(e) Use of Private Organizations for Testing and Certification.--
The Commission may--
``(1) authorize the use of private organizations for
testing and certifying the compliance of devices or home
electronic equipment and systems with regulations promulgated
under this section;
``(2) accept as prima facie evidence of such compliance the
certification by any such organization; and
``(3) establish such qualifications and standards as it
deems appropriate for such private organizations, testing, and
certification.''.
TITLE IV--EFFECT ON OTHER LAWS
SEC. 401. RELATIONSHIP TO OTHER LAWS.
(a) Modification of Final Judgment.--This Act and the amendments
made by title I of this Act shall supersede only the following sections
of the Modification of Final Judgment:
(1) Section II(C) of the Modification of Final Judgment,
relating to deadline for procedures for equal access
compliance.
(2) Section II(D) of the Modification of Final Judgment,
relating to line of business restrictions.
(3) Section VIII(A) of the Modification of Final Judgment,
relating to manufacturing restrictions.
(4) Section VIII(C) of the Modification of Final Judgment,
relating to standard for entry into the interexchange market.
(5) Section VIII(D) of the Modification of Final Judgment,
relating to prohibition on entry into electronic publishing.
(6) Section VIII(H) of the Modification of Final Judgment,
relating to debt ratios at the time of transfer.
(7) Section VIII(J) of the Modification of Final Judgment,
relating to prohibition on implementation of the plan of
reorganization before court approval.
(b) Antitrust Laws.--Nothing in this Act or in the amendments made
by this Act shall be construed to modify, impair, or supersede the
applicability of any of the antitrust laws.
(c) Federal, State, and Local Law.--(1) Parts II and III of title
II of the Communications Act of 1934 shall not be construed to modify,
impair, or supersede Federal, State, or local law unless expressly so
provided in such part.
(2) State Tax Savings Provision.--Notwithstanding paragraph (1),
nothing in this Act or the amendments made by this Act shall be
construed to modify, impair, or supersede, or authorize the
modification, impairment, or supersession of, any State or local law
pertaining to taxation, except as provided in sections 243(e) and 622
of the Communications Act of 1934 and section 402 of this Act.
(d) Application to Other Action.--This Act shall supersede the
final judgment entered December 21, 1984 and as restated January 11,
1985, in the action styled United States v. GTE Corp., Civil Action No.
83-1298, in the United States District Court for the District of
Columbia, and any judgment or order with respect to such action entered
on or after December 21, 1984, and such final judgment shall not be
enforced with respect to conduct occurring after the date of the
enactment of this Act.
(e) Inapplicability of Final Judgment to Wireless Successors.--No
person shall be considered to be an affiliate, a successor, or an
assign of a Bell operating company under section III of the
Modification of Final Judgment by reason of having acquired wireless
exchange assets or operations previously owned by a Bell operating
company or an affiliate of a Bell operating company.
(f) Antitrust Laws.--As used in this section, 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 unfair methods of competition.
(g) Additional Definitions.--As used in this section, the terms
``Modification of Final Judgment'' and ``Bell operating company'' have
the same meanings provided such terms in section 3 of the
Communications Act of 1934.
SEC. 402. PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DBS SERVICE.
(a) Preemption.--A provider of direct-to-home satellite service
shall be exempt from the collection or remittance, or both, of any tax
or fee imposed by any local taxing jurisdiction with respect to the
provision of direct-to-home satellite service. Nothing in this section
shall be construed to exempt from collection or remittance any tax or
fee on the sale of equipment.
(b) Definitions.--For the purposes of this section--
(1) Direct-to-home satellite service.--The term ``direct-
to-home satellite service'' means the transmission or
broadcasting by satellite of programming directly to the
subscribers' premises without the use of ground receiving or
distribution equipment, except at the subscribers' premises or
in the uplink process to the satellite.
(2) Provider of direct-to-home satellite service.--For
purposes of this section, a ``provider of direct-to-home
satellite service'' means a person who transmits, broadcasts,
sells, or distributes direct-to-home satellite service.
(3) Local taxing jurisdiction.--The term ``local taxing
jurisdiction'' means any municipality, city, county, township,
parish, transportation district, or assessment jurisdiction, or
any other local jurisdiction in the territorial jurisdiction of
the United States with the authority to impose a tax or fee,
but does not include a State.
(4) State.--The term ``State'' means any of the several
States, the District of Columbia, or any territory or
possession of the United States.
(5) Tax or fee.--The terms ``tax'' and ``fee'' mean any
local sales tax, local use tax, local intangible tax, local
income tax, business license tax, utility tax, privilege tax,
gross receipts tax, excise tax, franchise fees, local
telecommunications tax, or any other tax, license, or fee that
is imposed for the privilege of doing business, regulating, or
raising revenue for a local taxing jurisdiction.
(c) Preservation of State Authority.--This section shall not be
construed to prevent taxation of a provider of direct-to-home satellite
service by a State or to prevent a local taxing jurisdiction from
receiving revenue derived from a tax or fee imposed and collected by a
State.
SEC. 403. PROTECTION OF MINORS AND CLARIFICATION OF CURRENT LAWS
REGARDING COMMUNICATION OF OBSCENE AND INDECENT MATERIALS
THROUGH THE USE OF COMPUTERS.
(a) Protection of Minors.--
(1) Generally.--Section 1465 of title 18, United States
Code, is amended by adding at the end the following:
``Whoever intentionally communicates by computer, in or affecting
interstate or foreign commerce, to any person the communicator believes
has not attained the age of 18 years, any material that, in context,
depicts or describes, in terms patently offensive as measured by
contemporary community standards, sexual or excretory activities or
organs, or attempts to do so, shall be fined under this title or
imprisoned not more than five years, or both.''.
(2) Conforming Amendments Relating to Forfeiture.--
(A) Section 1467(a)(1) of title 18, United States
Code, is amended by inserting ``communicated,'' after
``transported,''.
(B) Section 1467 of title 18, United States Code,
is amended in subsection (a)(1), by striking
``obscene''.
(C) Section 1469 of title 18, United States Code,
is amended by inserting ``communicated,'' after
``transported,'' each place it appears.
(b) Clarification of Current Laws Regarding Communication of
Obscene Materials Through the Use of Computers.--
(1) Importation or transportation.--Section 1462 of title
18, United States Code, is amended--
(A) in the first undesignated paragraph, by
inserting ``(including by computer) after ``thereof'';
and
(B) in the second undesignated paragraph--
(i) by inserting ``or receives,'' after
``takes'';
(ii) by inserting ``, or by computer,''
after ``common carrier''; and
(iii) by inserting ``or importation'' after
``carriage''.
(2) Transportation for purposes of sale or distribution.--
The first undesignated paragraph of section 1465 of title 18,
United States Code, is amended--
(A) by striking ``transports in'' and inserting
``transports or travels in, or uses a facility or means
of,'';
(B) by inserting ``(including a computer in or
affecting such commerce)'' after ``foreign commerce''
the first place it appears; and
(C) by striking ``, or knowingly travels in'' and
all that follows through ``obscene material in
interstate or foreign commerce,'' and inserting ``of''.
TITLE V--DEFINITIONS
SEC. 501. DEFINITIONS.
(a) Additional Definitions.--Section 3 of the Act (47 U.S.C. 153)
is amended--
(1) in subsection (r)--
(A) by inserting ``(A)'' after ``means''; and
(B) by inserting before the period at the end the
following: ``, or (B) service provided through a system
of switches, transmission equipment, or other
facilities (or combination thereof) by which a
subscriber can originate and terminate a
telecommunications service within a State but which
does not result in the subscriber incurring a telephone
toll charge''; and
(2) by adding at the end thereof the following:
``(35) Affiliate.--The term `affiliate', when used in
relation to any person or entity, means another person or
entity who owns or controls, is owned or controlled by, or is
under common ownership or control with, such person or entity.
``(36) 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, U S
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;
``(B) any successor or assign of any such company
that provides telephone exchange service.
``(37) Cable system.--The term `cable system' has the
meaning given such term in section 602(7) of this Act.
``(38) Customer premises equipment.--The term `customer
premises equipment' means equipment employed on the premises of
a person (other than a carrier) to originate, route, or
terminate telecommunications.
``(39) Dialing parity.--The term `dialing parity' means
that a person that is not an affiliated enterprise of a local
exchange carrier is able to provide telecommunications services
in such a manner that customers have the ability to route
automatically, without the use of any access code, their
telecommunications to the telecommunications services provider
of the customer's designation from among 2 or more
telecommunications services providers (including such local
exchange carrier).
``(40) Exchange access.--The term `exchange access' means
the offering of telephone exchange services or facilities for
the purpose of the origination or termination of interLATA
services.
``(41) Information service.--The term `information service'
means the offering of a capability for generating, acquiring,
storing, transforming, processing, retrieving, utilizing, or
making available information via telecommunications, and
includes electronic publishing, but does not include any use of
any such capability for the management, control, or operation
of a telecommunications system or the management of a
telecommunications service. For purposes of section 242, such
term shall not include the provision of video programming
directly to subscribers.
``(42) Interlata service.--The term `interLATA service'
means telecommunications between a point located in a local
access and transport area and a point located outside such
area.
``(43) Local access and transport area.--The term `local
access and transport area' or `LATA' means a contiguous
geographic area--
``(A) 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
paragraph; or
``(B) established or modified by a Bell operating
company after the date of enactment of this paragraph
and approved by the Commission.
``(44) Local exchange carrier.--The term `local exchange
carrier' means any person that is engaged in the provision of
telephone exchange service or exchange access. Such term does
not include a person insofar as such person is engaged in the
provision of a commercial mobile service under section 332(c),
except to the extent that the Commission finds that such
service as provided by such person in a State is a replacement
for a substantial portion of the wireline telephone exchange
service within such State.
``(45) 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.
``(46) Number portability.--The term `number portability'
means the ability of users of telecommunications services to
retain existing telecommunications numbers without impairment
of quality, reliability, or convenience when changing from one
provider of telecommunications services to another, as long as
such user continues to be located within the area served by the
same central office of the carrier from which the user is
changing.
``(47) Rural telephone company.--The term `rural telephone
company' means a local exchange carrier operating entity to the
extent that such entity--
``(A) provides common carrier service to any local
exchange carrier study area that does not include
either--
``(i) any incorporated place of 10,000
inhabitants or more, or any part thereof, based
on the most recent available population
statistics of the Bureau of the Census; or
``(ii) any territory, incorporated or
unincorporated, included in an urbanized area,
as defined by the Bureau of the Census as of
August 10, 1993;
``(B) provides telephone exchange service,
including telephone exchange access service, to fewer
than 50,000 access lines;
``(C) provides telephone exchange service to any
local exchange carrier study area with fewer than
100,000 access lines; or
``(D) has less than 15 percent of its access lines
in communities of more than 50,000 on the date of
enactment of this paragraph.
``(48) Telecommunications.--The term `telecommunications'
means the transmission, between or among points specified by
the subscriber, of information of the subscriber'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.
``(49) Telecommunications equipment.--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).
``(50) Telecommunications service.--The term
`telecommunications service' means the offering, on a common
carrier basis, of telecommunications facilities, or of
telecommunications by means of such facilities. Such term does
not include an information service.''.
(b) Stylistic Consistency.--Section 3 of the Act (47 U.S.C. 153) is
amended--
(1) in subsections (e) and (n), by redesignating clauses
(1), (2) and (3), as clauses (A), (B), and (C), respectively;
(2) in subsection (w), by redesignating paragraphs (1)
through (5) as subparagraphs (A) through (E), respectively;
(3) in subsections (y) and (z), by redesignating paragraphs
(1) and (2) as subparagraphs (A) and (B), respectively;
(4) by redesignating subsections (a) through (ff) as
paragraphs (1) through (32);
(5) by indenting such paragraphs 2 em spaces;
(6) by inserting after the designation of each such
paragraph--
(A) a heading, in a form consistent with the form
of the heading of this subsection, consisting of the
term defined by such paragraph, or the first term so
defined if such paragraph defines more than one term;
and
(B) the words ``The term'';
(7) by changing the first letter of each defined term in
such paragraphs from a capital to a lower case letter (except
for ``United States'', ``State'', ``State commission'', and
``Great Lakes Agreement''); and
(8) by reordering such paragraphs and the additional
paragraphs added by subsection (a) in alphabetical order based
on the headings of such paragraphs and renumbering such
paragraphs as so reordered.
(c) Conforming Amendments.--The Act is amended--
(1) in section 225(a)(1), by striking ``section 3(h)'' and
inserting ``section 3'';
(2) in section 332(d), by striking ``section 3(n)'' each
place it appears and inserting ``section 3''; and
(3) in sections 621(d)(3), 636(d), and 637(a)(2), by
striking ``section 3(v)'' and inserting ``section 3''.
TITLE VI--SMALL BUSINESS COMPLAINT PROCEDURE
SEC. 601. COMPLAINT PROCEDURE.
(a) Procedure Required.--The Federal Communications Commission
shall establish procedures for the receipt and review of complaints
concerning violations of the Communications Act of 1934, and the rules
and regulations thereunder, that are likely to result, or have
resulted, as a result of the violation, in material financial harm to a
provider of telemessaging service, or other small business engaged in
providing an information service or other telecommunications service.
Such procedures shall be established within 120 days after the date of
enactment of this Act.
(b) Deadlines for Procedures; Sanctions.--The procedures under this
section shall ensure that the Commission will make a final
determination with respect to any such complaint 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, order the common carrier
and its affiliates to cease engaging in such violation pending such
final determination. In addition, the Commission may exercise its
authority to impose other penalties or sanctions, to the extent
otherwise provided by law.
(c) Definition.--For purposes of this section, a small business
shall be any business entity that, along with any affiliate or
subsidiary, has fewer than 300 employees.
Amend the title so as to read: ``An Act to promote competition and reduce
regulation in order to secure lower prices and higher quality services for
American telecommunications consumers and encourage the rapid deployment of new
telecommunications technologies.''.
Attest:
Clerk.
104th CONGRESS
1st Session
S. 652
_______________________________________________________________________
AMENDMENTS