[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 652 Public Print (PP)]

                June 23 (legislative day, June 19), 1995

                    Ordered to be printed as passed

  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  1st Session
                                 S. 652

_______________________________________________________________________

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Telecommunications Competition and 
Deregulation Act of 1995''.
SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purpose.
Sec. 4. Goals.
Sec. 5. Findings.
Sec. 6. Amendment of Communications Act of 1934.
Sec. 7. Effect on other law.
Sec. 8. Definitions.
                   TITLE I--TRANSITION TO COMPETITION

Sec. 101. Interconnection requirements.
Sec. 102. Separate affiliate and safeguard requirements.
Sec. 103. Universal service.
Sec. 104. Essential telecommunications carriers.
Sec. 105. Foreign investment and ownership reform.
Sec. 106. Infrastructure sharing.
Sec. 107. Coordination for telecommunications network-level 
                            interoperability.
            TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION

                  Subtitle A--Removal of Restrictions.

Sec. 201. Removal of entry barriers.
Sec. 202. Elimination of cable and telephone company cross-ownership 
                            restriction.
Sec. 203. Cable Act reform.
Sec. 204. Pole attachments.
Sec. 205. Entry by utility companies.
Sec. 206. Broadcast reform.
       Subtitle B--Termination of Modification of Final Judgment.

Sec. 221. Removal of long distance restrictions.
Sec. 222. Removal of manufacturing restrictions.
Sec. 223. Existing activities.
Sec. 224. Enforcement.
Sec. 225. Alarm monitoring services.
Sec. 226. Nonapplicability of Modification of Final Judgment.
                    TITLE III--AN END TO REGULATION

Sec. 301. Transition to competitive pricing.
Sec. 302. Biennial review of regulations; elimination of unnecessary 
                            regulations and functions.
Sec. 303. Regulatory forbearance.
Sec. 304. Advanced telecommunications incentives.
Sec. 305. Regulatory parity.
Sec. 306. Automated ship distress and safety systems.
Sec. 307. Telecommunications numbering administration.
Sec. 308. Access by persons with disabilities.
Sec. 309. Rural markets.
Sec. 310. Telecommunications services for health care providers for 
                            rural areas, educational providers, and 
                            libraries.
Sec. 311. Provision of payphone service and telemessaging service.
Sec. 312. Direct Broadcast Satellite.
       TITLE IV--OBSCENE, HARASSING, AND WRONGFUL UTILIZATION OF 
                     TELECOMMUNICATIONS FACILITIES

Sec. 401. Short title.
Sec. 402. Obscene or harassing use of telecommunications facilities 
                            under the Communications Act of 1934.
Sec. 403. Obscene programming on cable television.
Sec. 404. Broadcasting obscene language on radio.
Sec. 405. Separability.
Sec. 406. Additional prohibition on billing for toll-free telephone 
                            calls.
Sec. 407. Scrambling of cable channels for nonsubscribers.
Sec. 408. Scrambling of sexually explicit adult video service 
                            programming.
Sec. 409. Cable operator refusal to carry certain programs.
Sec. 410. Restrictions on access by children to obscene and indecent 
                            material on electronic information networks 
                            open to the public.
                 TITLE V--PARENTAL CHOICE IN TELEVISION

Sec. 501. Short title.
Sec. 502. Findings.
Sec. 503. Rating code for violence and other objectionable content on 
                            television.
Sec. 504. Requirement for manufacture of televisions that block 
                            programs.
Sec. 505. Shipping or importing of televisions that block programs.
      TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION

Sec. 601. Short title.
Sec. 602. Findings; purpose.
Sec. 603. Definitions.
Sec. 604. Assistance for educational technology purposes.
Sec. 605. Audits.
Sec. 606. Annual report; testimony to the Congress.
                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Spectrum auctions.
Sec. 702. Renewed efforts to regulate violent programming.
Sec. 703. Prevention of unfair billing practices for information or 
                            services provided over toll-free telephone 
                            calls.
Sec. 704. Disclosure of certain records for investigations of 
                            telemarketing fraud.
Sec. 705. Telecommuting public information program.
Sec. 706. Authority to acquire cable systems.
SEC. 3. PURPOSE.

    It is the purpose of this Act to increase competition in all 
telecommunications markets and provide for an orderly transition from 
regulated markets to competitive and deregulated telecommunications 
markets consistent with the public interest, convenience, and 
necessity.

SEC. 4. GOALS.

    This Act is intended to establish a national policy framework 
designed to accelerate rapidly the private sector deployment of 
advanced telecommunications and information technologies and services 
to all Americans by opening all telecommunications markets to 
competition, and to meet the following goals:
            (1) To promote and encourage advanced telecommunications 
        networks, capable of enabling users to originate and receive 
        affordable, high-quality voice, data, image, graphic, and video 
        telecommunications services.
            (2) To improve international competitiveness markedly.
            (3) To spur economic growth, create jobs, and increase 
        productivity.
            (4) To deliver a better quality of life through the 
        preservation and advancement of universal service to allow the 
        more efficient delivery of educational, health care, and other 
        social services.

SEC. 5. FINDINGS.

    The Congress makes the following findings:
            (1) Competition, not regulation, is the best way to spur 
        innovation and the development of new services. A competitive 
        market place is the most efficient way to lower prices and 
        increase value for consumers. In furthering the principle of 
        open and full competition in all telecommunications markets, 
        however, it must be recognized that some markets are more open 
        than others.
            (2) Local telephone service is predominantly a monopoly 
        service. Although business customers in metropolitan areas may 
        have alternative providers for exchange access service, 
        consumers do not have a choice of local telephone service. Some 
        States have begun to open local telephone markets to 
        competition. A national policy framework is needed to 
        accelerate the process.
            (3) Because of their monopoly status, local telephone 
        companies and the Bell operating companies have been prevented 
        from competing in certain markets. It is time to eliminate 
        these restrictions. Nonetheless, transition rules designed to 
        open monopoly markets to competition must be in place before 
        certain restrictions are lifted.
            (4) Transition rules must be truly transitional, not 
        protectionism for certain industry segments or artificial 
        impediments to increased competition in all markets. Where 
        possible, transition rules should create investment incentives 
        through increased competition. Regulatory safeguards should be 
        adopted only where competitive conditions would not prevent 
        anticompetitive behavior.
            (5) More competitive American telecommunications markets 
        will promote United States technological advances, domestic job 
        and investment opportunities, national competitiveness, 
        sustained economic development, and improved quality of 
        American life more effectively than regulation.
            (6) Congress should establish clear statutory guidelines, 
        standards, and time frames to facilitate more effective 
        communications competition and, by so doing, will reduce 
        business and customer uncertainty, lessen regulatory processes, 
        court appeals, and litigation, and thus encourage the business 
        community to focus more on competing in the domestic and 
        international communications marketplace.
            (7) Where competitive markets are demonstrably inadequate 
        to safeguard important public policy goals, such as the 
        continued universal availability of telecommunications services 
        at reasonable and affordable prices, particularly in rural 
        America, Congress should establish workable regulatory 
        procedures to advance those goals, provided that in any 
        proceeding undertaken to ensure universal availability, 
        regulators shall seek to choose the most procompetitive and 
        least burdensome alternative.
            (8) Competitive communications markets, safeguarded by 
        effective Federal and State antitrust enforcement, and strong 
        economic growth in the United States which such markets will 
        foster are the most effective means of assuring that all 
        segments of the American public command access to advanced 
        telecommunications technologies.
            (9) Achieving full and fair competition requires strict 
        parity of marketplace opportunities and responsibilities on the 
        part of incumbent telecommunications service providers as well 
        as new entrants into the telecommunications marketplace, 
        provided that any responsibilities placed on providers should 
        be the minimum required to advance a clearly defined public 
        policy goal.
            (10) Congress should not cede its constitutional 
        responsibility regarding interstate and foreign commerce in 
        communications to the Judiciary through the establishment of 
        procedures which will encourage or necessitate judicial 
        interpretation or intervention into the communications 
        marketplace.
            (11) Ensuring that all Americans, regardless of where they 
        may work, live, or visit, ultimately have comparable access to 
        the full benefits of competitive communications markets 
        requires Federal and State authorities to work together 
        affirmatively to minimize and remove unnecessary institutional 
        and regulatory barriers to new entry and competition.
            (12) Effectively competitive communications markets will 
        ensure customers the widest possible choice of services and 
        equipment, tailored to individual desires and needs, and at 
        prices they are willing to pay.
            (13) Investment in and deployment of existing and future 
        advanced, multipurpose technologies will best be fostered by 
        minimizing government limitations on the commercial use of 
        those technologies.
            (14) The efficient development of competitive United States 
        communications markets will be furthered by policies which aim 
        at ensuring reciprocal opening of international investment 
        opportunities.

SEC. 6. AMENDMENT OF COMMUNICATIONS ACT OF 1934.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Communications Act of 
1934 (47 U.S.C. 151 et seq.).

SEC. 7. EFFECT ON OTHER LAW.

    (a) Antitrust Laws.--Except as provided in subsections (b) and (c), 
nothing in this Act shall be construed to modify, impair, or supersede 
the applicability of any antitrust law.
    (b) Modification of Final Judgment.--This Act shall supersede the 
Modification of Final Judgment to the extent that it is inconsistent 
with this Act.
    (c) Transfer of MFJ.--After the date of enactment of this Act, the 
Commission shall administer any provision of the Modification of Final 
Judgment not overridden or superseded by this Act. The District Court 
for the District of Columbia shall have no further jurisdiction over 
any provision of the Modification of Final Judgment administered by the 
Commission under this Act or the Communications Act of 1934. The 
Commission may, consistent with this Act (and the amendments made by 
this Act), modify any provision of the Modification of Final Judgment 
that it administers.
    (d) GTE Consent Decree.--This Act shall supersede the provisions of 
the Final Judgment entered in United States v. GTE Corp., No. 83-1298 
(D.C. D.C.), and such Final Judgment shall not be enforced after the 
effective date of this Act.

SEC. 8. DEFINITIONS.

    (a) Terms Used In This Act.--As used in this Act--
            (1) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (2) Modification of final judgment.--The term 
        ``Modification of Final Judgment'' means the decree entered on 
        August 24, 1982, in United States v. Western Electric Civil 
        Action No. 82-0192 (United States District Court, District of 
        Columbia), and includes any judgment or order with respect to 
        such action entered on or after August 24, 1982, and before the 
        date of enactment of this Act.
            (3) GTE consent decree.--The term ``GTE Consent Decree'' 
        means the order entered on December 21, 1984, as restated 
        January 11, 1985, in United States v. GTE Corporation, Civil 
        Action No. 83-1298 (United States District Court, District of 
        Columbia), and includes any judgment or order with respect to 
        such action entered on or after January 11, 1985, and before 
        the date of enactment of this Act.
            (4) Integrated telecommunications service provider.--The 
        term ``integrated telecommunications service provider'' means 
        any person engaged in the provision of multiple services, such 
        as voice, data, image, graphics, and video services, which make 
        common use of all or part of the same transmission facilities, 
        switches, signalling, or control devices.
    (b) Terms Used in the Communications Act of 1934.--Section 3 (47 
U.S.C. 153) is amended by adding at the end thereof the following:
    ``(gg) `Modification of Final Judgment' means the decree entered on 
August 24, 1982, in United States v. Western Electric Civil Action No. 
82-0192 (United States District Court, District of Columbia), and 
includes any judgment or order with respect to such action entered on 
or after August 24, 1982, and before the date of enactment of the 
Telecommunications Competition and Deregulation Act of 1995.
    ``(hh) `Bell operating company' means any company listed in 
appendix A of the Modification of Final Judgment to the extent such 
company provides telephone exchange service or exchange access service, 
and includes any successor or assign of any such company, but does not 
include any affiliate of such company.
    ``(ii) `Affiliate' means a person that (directly or indirectly) 
owns or controls, is owned or controlled by, or is under common 
ownership or control with, another person. For purposes of this 
paragraph, the term `own' means to own an equity interest (or the 
equivalent thereof) of more than 10 percent.
    ``(jj) `Telecommunications Act of 1995' means the 
Telecommunications Competition and Deregulation Act of 1995.
    ``(kk) `Local exchange carrier' means a provider of telephone 
exchange service or exchange access service.
    ``(ll) `Telecommunications' means the transmission, between or 
among points specified by the user, of information of the user's 
choosing, including voice, data, image, graphics, and video, without 
change in the form or content of the information, as sent and received, 
with or without benefit of any closed transmission medium.
    ``(mm) `Telecommunications service' means the offering of 
telecommunications for a fee directly to the public, or to such classes 
of users as to be effectively available directly to the public, 
regardless of the facilities used to transmit the telecommunications 
service.
    ``(nn) `Telecommunications carrier' means any provider of 
telecommunications services, except that such term does not include 
hotels, motels, hospitals, and other aggregators of telecommunications 
services (as defined in section 226). A telecommunications carrier 
shall only be treated as a common carrier under this Act to the extent 
that it is engaged in providing telecommunications services for voice, 
data, image, graphics, or video that it does not own, control, or 
select, except that the Commission shall continue to determine whether 
the provision of fixed and mobile satellite service shall be treated as 
common carriage.
    ``(oo) `Telecommunications number portability' means the ability of 
users of telecommunications services to retain, at the same location, 
existing telecommunications numbers without impairment of quality, 
reliability, or convenience when switching from one telecommunications 
carrier to another.
    ``(pp) `Information service' means the offering of services that--
            ``(1) employ computer processing applications that act on 
        the format, content, code, protocol, or similar aspects of the 
        subscriber's transmitted information;
            ``(2) provide the subscriber additional, different, or 
        restructured information; or
            ``(3) involve subscriber interaction with stored 
        information.
    ``(qq) `Cable service' means cable service as defined in section 
602.
    ``(rr) `Rural telephone company' means a telecommunications carrier 
operating entity to the extent that such entity provides telephone 
exchange service, including access service subject to part 69 of the 
Commission's rules (47 C.F.R. 69.1 et seq.), to--
            ``(1) any service area that does not include either--
                    ``(A) any incorporated place of 10,000 inhabitants 
                or more, or any part thereof, based on the most recent 
                population statistics of the Bureau of the Census; or
                    ``(B) any territory, incorporated or 
                unincorporated, included in an urbanized area, as 
                defined by the Bureau of the Census as of January 1, 
                1995; or
            ``(2) fewer than 100,000 access lines within a State.
    ``(ss) `Service area' means a geographic area established by the 
Commission and the States for the purpose of determining universal 
service obligations and support mechanisms. In the case of an area 
served by a rural telephone company, `service area' means such 
company's `study area' unless and until the Commission and the States, 
after taking into account recommendations of a Federal-State Joint 
Board instituted under section 410(c), establish a different definition 
of service area for such company.
    ``(tt) `LATA' means a local access and transport area as defined in 
United States v. Western Electric Co., 569 F. Supp. 990 (U. S. District 
Court, District of Columbia) and subsequent judicial orders relating 
thereto, except that, with respect to commercial mobile services, the 
term `LATA' means the geographic areas defined or used by the 
Commission in issuing licenses for such services: Provided however, 
That in the case of a Bell operating company cellular affiliate, such 
geographic area shall be no smaller than the LATA area for such 
affiliate on the date of enactment of the Telecommunications Act of 
1995.''.

                   TITLE I--TRANSITION TO COMPETITION

SEC. 101. INTERCONNECTION REQUIREMENTS.

    (a) Required Interconnection.--Title II (47 U.S.C. 201 et seq.) is 
amended by inserting after section 228 the following:

              ``Part II--Competition in Telecommunications

``SEC. 251. INTERCONNECTION.

    ``(a) Duty to Provide Interconnection.--
            ``(1) In general.--A local exchange carrier, or class of 
        local exchange carriers, determined by the Commission to have 
        market power in providing telephone exchange service or 
        exchange access service has a duty under this Act, upon 
        request--
                    ``(A) to enter into good faith negotiations with 
                any telecommunications carrier requesting 
                interconnection between the facilities and equipment of 
                the requesting telecommunications carrier and the 
                carrier, or class of carriers, of which the request was 
                made for the purpose of permitting the 
                telecommunications carrier to provide telephone 
                exchange or exchange access service; and
                    ``(B) to provide such interconnection, at rates 
                that are reasonable and nondiscriminatory, according to 
                the terms of the agreement and in accordance with the 
                requirements of this section.
            ``(2) Initiation.--A local exchange carrier, or class of 
        carriers, described in paragraph (1) shall commence good faith 
        negotiations to conclude an agreement, whether through 
        negotiation under subsection (c) or arbitration or intervention 
        under subsection (d), within 15 days after receiving a request 
        from any telecommunications carrier seeking to provide 
        telephone exchange or exchange access service. Nothing in this 
        Act shall prohibit multilateral negotiations between or among a 
        local exchange carrier or class of carriers and a 
        telecommunications carrier or class of carriers seeking 
        interconnection under subsection (c) or subsection (d). At the 
        request of any of the parties to a negotiation, a State may 
        participate in the negotiation of any portion of an agreement 
        under subsection (c).
            ``(3) Market power.--For the purpose of determining whether 
        a carrier has market power under paragraph (1), the relevant 
        market shall include all providers of telephone exchange or 
        exchange access services in a local area, regardless of the 
        technology used by any such provider.
    ``(b) Minimum Standards.--An interconnection agreement entered into 
under this section shall, if requested by a telecommunications carrier 
requesting interconnection, provide for--
            ``(1) nondiscriminatory access on an unbundled basis to the 
        network functions and services of the local exchange carrier's 
        telecommunications network (including switching software, to 
        the extent defined in implementing regulations by the 
        Commission);
            ``(2) nondiscriminatory access on an unbundled basis to any 
        of the local exchange carrier's telecommunications facilities 
        and information, including databases and signaling, necessary 
        to the transmission and routing of any telephone exchange 
        service or exchange access service and the interoperability of 
        both carriers' networks;
            ``(3) interconnection to the local exchange carrier's 
        telecommunications facilities and services at any technically 
        feasible point within the carrier's network;
            ``(4) interconnection that is at least equal in type, 
        quality, and price (on a per unit basis or otherwise) to that 
        provided by the local exchange carrier to itself or to any 
        subsidiary, affiliate, or any other party to which the carrier 
        provides interconnection;
            ``(5) nondiscriminatory access to the poles, ducts, 
        conduits, and rights-of-way owned or controlled by the local 
        exchange carrier at just and reasonable rates;
            ``(6) the local exchange carrier to take whatever action 
        under its control is necessary, as soon as is technically 
        feasible, to provide telecommunications number portability and 
        local dialing parity in a manner that--
                    ``(A) permits consumers to be able to dial the same 
                number of digits when using any telecommunications 
                carrier providing telephone exchange service or 
                exchange access service in the market served by the 
                local exchange carrier;
                    ``(B) permits all such carriers to have 
                nondiscriminatory access to telephone numbers, operator 
                services, directory assistance, and directory listing 
                with no unreasonable dialing delays; and
                    ``(C) provides for a reasonable allocation of costs 
                among the parties to the agreement;
            ``(7) telecommunications services and network functions of 
        the local exchange carrier to be available to the 
        telecommunications carrier on an unbundled basis without any 
        unreasonable conditions on the resale or sharing of those 
        services or functions, including the origination, transport, 
        and termination of such telecommunications services, other than 
        reasonable conditions required by a State; and for purposes of 
        this paragraph, it is not an unreasonable condition for a State 
        to limit the resale--
                    ``(A) of services included in the definition of 
                universal service to a telecommunications carrier who 
                resells that service to a category of customers 
                different from the category of customers being offered 
                that universal service by such carrier if the State 
                orders a carrier to provide the same service to 
                different categories of customers at different prices 
                necessary to promote universal service; or
                    ``(B) of subsidized universal service in a manner 
                that allows companies to charge another carrier rates 
                which reflect the actual cost of providing those 
                services to that carrier, exclusive of any universal 
                service support received for providing such services in 
                accordance with section 214(d)(5);
            ``(8) reciprocal compensation arrangements for the 
        origination and termination of telecommunications;
            ``(9) reasonable public notice of changes in the 
        information necessary for the transmission and routing of 
        services using that local exchange carrier's facilities or 
        networks, as well as of any other changes that would affect the 
        interoperability of those facilities and networks; and
            ``(10) a schedule of itemized charges and conditions for 
        each service, facility, or function provided under the 
        agreement.
    ``(c) Agreements Arrived at Through Negotiation.--Upon receiving a 
request for interconnection, a local exchange carrier may meet its 
interconnection obligations under this section by negotiating and 
entering into a binding agreement with the telecommunications carrier 
seeking interconnection without regard to the standards set forth in 
subsection (b). The agreement shall include a schedule of itemized 
charges for each service, facility, or function included in the 
agreement. The agreement, including any interconnection agreement 
negotiated before the date of enactment of the Telecommunications Act 
of 1995, shall be submitted to the State under subsection (e).
    ``(d) Agreements Arrived at Through Arbitration or Intervention.--
            ``(1) In general.--Any party negotiating an interconnection 
        agreement under this section may, at any point in the 
        negotiation, ask a State to participate in the negotiation and 
        to arbitrate any differences arising in the course of the 
        negotiation. The refusal of any other party to the negotiation 
        to participate further in the negotiations, to cooperate with 
        the State in carrying out its function as a arbitrator, or to 
        continue to negotiate in good faith in the presence, or with 
        the assistance, of the State shall be considered a failure to 
        negotiate in good faith.
            ``(2) Intervention.--If any issues remain open in a 
        negotiation commenced under this section more than 135 days 
        after the date upon which the local exchange carrier received 
        the request for such negotiation, then the carrier or any other 
        party to the negotiation may petition a State to intervene in 
        the negotiations for purposes of resolving any such remaining 
        open issues. Any such request must be made during the 25-day 
        period that begins 135 days after the carrier receives the 
        request for such negotiation and ends 160 days after that date.
            ``(3) Duty of petitioner.--
                    ``(A) A party that petitions a State under 
                paragraph (2) shall, at the same time as it submits the 
                petition, provide the State all relevant documentation 
                concerning the negotiations necessary to understand--
                            ``(i) the unresolved issues;
                            ``(ii) the position of each of the parties 
                        with respect to those issues; and
                            ``(iii) any other issue discussed and 
                        resolved by the parties.
                    ``(B) A party petitioning a State under paragraph 
                (2) shall provide a copy of the petition and any 
                documentation to the other party not later than the day 
                on which the State receives the petition.
            ``(4) Opportunity to respond.--A party to a negotiation 
        under this section with respect to which the other party has 
        petitioned a State under paragraph (2) may respond to the other 
        party's petition and provide such additional information as it 
        wishes within 25 days after the State receives the petition.
            ``(5) Action by state.--
                    ``(A) A State proceeding to consider a petition 
                under this subsection shall be conducted in accordance 
                with the rules promulgated by the Commission under 
                subsection (i). The State shall limit its consideration 
                of any petition under paragraph (2) (and any response 
                thereto) to the issues set forth in the petition and in 
                the response, if any, filed under paragraph (4).
                    ``(B) The State may require the petitioning party 
                and the responding party to provide such information as 
                may be necessary for the State to reach a decision on 
                the unresolved issues. If either party refuses or fails 
                unreasonably to respond on a timely basis to any 
                reasonable request from the State, then the State may 
                proceed on the basis of the best information available 
                to it from whatever source derived.
                    ``(C) The State shall resolve each issue set forth 
                in the petition and the response, if any, by imposing 
                appropriate conditions upon the parties to the 
                agreement, and shall conduct the review of the 
                agreement (including the issues resolved by the State) 
                not later than 10 months after the date on which the 
                local exchange carrier received the request for 
                interconnection under this section.
                    ``(D) In resolving any open issues and imposing 
                conditions upon the parties to the agreement, a State 
                shall ensure that the requirements of this section are 
                met by the solution imposed by the State and are 
                consistent with the Commission's rules defining minimum 
                standards.
            ``(6) Charges.--If the amount charged by a local exchange 
        carrier, or class of local exchange carriers, for an unbundled 
        element of the interconnection provided under subsection (b) is 
        determined by arbitration or intervention under this 
        subsection, then the charge--
                    ``(A) shall be
                            ``(i) based on the cost (determined without 
                        reference to a rate-of-return or other rate-
                        based proceeding) of providing the unbundled 
                        element,
                            ``(ii) nondiscriminatory, and
                            ``(iii) individually priced to the smallest 
                        element that is technically feasible and 
                        economically reasonable to provide; and
                    ``(B) may include a reasonable profit.
    ``(e) Approval by State.--Any interconnection agreement under this 
section shall be submitted for approval to the State. A State to which 
an agreement is submitted shall approve or reject the agreement, with 
written findings as to any deficiencies. The State may only reject--
            ``(1) an agreement under subsection (c) if it finds that 
        the agreement discriminates against a telecommunications 
        carrier not a party to the agreement; and
            ``(2) an agreement under subsection (d) if it finds that--
                    ``(B) the agreement does not meet the standards set 
                forth in subsection (b), or
                    ``(B) the implementation of the agreement is not in 
                the public interest.
If the State does not act to approve or reject the agreement within 90 
days after receiving the agreement, or 30 days in the case of an 
agreement negotiated under subsection (c), the agreement shall be 
deemed approved. No State court shall have jurisdiction to review the 
action of a State in approving or rejecting an agreement under this 
section.
    ``(f) Filing Required.--A State shall make a copy of each agreement 
approved under subsection (e) available for public inspection and 
copying within 10 days after the agreement is approved. The State may 
charge a reasonable and nondiscriminatory fee to the parties to the 
agreement to cover the costs of approving and filing such agreement.
    ``(g) Availability to Other Telecommunications Carriers.--A local 
exchange carrier shall make available any service, facility, or 
function provided under an interconnection agreement to which it is a 
party to any other telecommunications carrier that requests such 
interconnection upon the same terms and conditions as those provided in 
the agreement.
    ``(h) Collocation.--A State may require telecommunications carriers 
to provide for actual collocation of equipment necessary for 
interconnection at the premises of the carrier at reasonable charges, 
if the State finds actual collocation to be in the public interest.
    ``(i) Implementation.--
            ``(1) Rules and standards.--The Commission shall promulgate 
        rules to implement the requirements of this section within 6 
        months after the date of enactment of the Telecommunications 
        Act of 1995. In establishing the standards for determining what 
        facilities and information are necessary for purposes of 
        subsection (b)(2), the Commission shall consider, at a minimum, 
        whether--
                    ``(A) access to such facilities and information 
                that are proprietary in nature is necessary; and
                    ``(B) the failure to provide access to such 
                facilities and information would impair the ability of 
                the telecommunications carrier seeking interconnection 
                to provide the services that it seeks to offer.
            ``(2) Commission to act if state will not act.--If a State, 
        through action or inaction, fails to carry out its 
        responsibility under this section in accordance with the rules 
        prescribed by the Commission under paragraph (1) in any 
        proceeding or other matter under this section, then the 
        Commission shall issue an order preempting the State's 
        jurisdiction of that proceeding or matter within 90 days after 
        being notified (or taking notice) of such failure, and shall 
        assume the responsibility of the State under this section with 
        respect to the proceeding or matter and act for the State.
            ``(3) Waivers and modifications for rural carriers.--The 
        Commission or a State shall, upon petition or on its own 
        initiative, waive or modify the requirements of subsection (b) 
        for a rural telephone company or companies, and may waive or 
        modify the requirements of subsection (b) for local exchange 
        carriers with fewer than 2 percent of the Nation's subscriber 
        lines installed in the aggregate nationwide, to the extent that 
        the Commission or a State determines that such requirements 
        would result in unfair competition, impose a significant 
        adverse economic impact on users of telecommunications 
        services, be technically infeasible, or otherwise not be in the 
        public interest. The Commission or a State shall act upon any 
        petition filed under this paragraph within 180 days of 
        receiving such petition. Pending such action, the Commission or 
        a State may suspend enforcement of the requirement or 
        requirements to which the petition applies with respect to the 
        petitioning carrier or carriers.
    ``(j) State Requirements.--Nothing in this section precludes a 
State from imposing requirements on a telecommunications carrier for 
intrastate services that are necessary to further competition in the 
provision of telephone exchange service or exchange access service, as 
long as the State's requirements are not inconsistent with the 
Commission's regulations to implement this section.
    ``(k) Access Charge Rules.--Nothing in this section shall affect 
the Commission's interexchange-to-local exchange access charge rules 
for local exchange carriers or interexchange carriers in effect on the 
date of enactment of the Telecommunications Act of 1995.
    ``(l) Review of Interconnection Standards.--Beginning 3 years after 
the date of enactment of the Telecommunications Act of 1995 and every 3 
years thereafter, the Commission shall review the standards and 
requirements for interconnection established under subsection (b). The 
Commission shall complete each such review within 180 days and may 
modify or waive any requirements or standards established under 
subsection (b) if it determines that the modification or waiver meets 
the requirements of section 260.
    ``(m) Commercial Mobile Service Providers.--The requirements of 
this section shall not apply to commercial mobile services provided by 
a wireline local exchange carrier unless the Commission determines 
under subsection (a)(3) that such carrier has market power in the 
provision of commercial mobile service.''.
    (c) Technical Amendments.--
            (1) Title II (47 U.S.C. 201 et seq.) is amended by 
        inserting before section 201 the following:

                    ``Part I--General Provisions''.

            (2) Section 2(b) (47 U.S.C. 152(b)) is amended by striking 
        ``sections 223 through 227, inclusive, and section 332,'' and 
        inserting ``section 214(d), sections 223 through 227, part II 
        of title II, and section 332,''.

SEC. 102. SEPARATE AFFILIATE AND SAFEGUARD REQUIREMENTS.

    (a) In General.--Part II of title II (47 U.S.C. 251 et seq.), as 
added by section 101 of this Act, is amended by inserting after section 
251 the following new section:

``SEC. 252. SEPARATE AFFILIATE; SAFEGUARDS.

    ``(a) Separate Affiliate Required For Competitive Activities.--
            ``(1) In general.--A Bell operating company (including any 
        affiliate) which is a local exchange carrier that is subject to 
        the requirements of section 251(a) may not provide any service 
        described in paragraph (2) unless it provides that service 
        through one or more affiliates that--
                    ``(A) are separate from any operating company 
                entity that is subject to the requirements of section 
                251(a); and
                    ``(B) meet the requirements of subsection (b).
            ``(2) Services for which a separate affiliate is 
        required.--The services for which a separate affiliate is 
        required by paragraph (1) are:
                    ``(A) Information services, including cable 
                services and alarm monitoring services, other than any 
                information service a Bell operating company was 
                authorized to provide before July 24, 1991.
                    ``(B) Manufacturing services.
                    ``(C) InterLATA services other than--
                            ``(i) incidental services, not including 
                        information services;
                            ``(ii) out-of-region services; or
                            ``(iii) services authorized under an order 
                        entered by the United States District Court for 
                        the District of Columbia pursuant to the 
                        Modification of Final Judgment before the date 
                        of enactment of the Telecommunications Act of 
                        1995.
    ``(b) Structural and Transactional Requirements.--The separate 
affiliate required by this section--
            ``(1) shall maintain books, records, and accounts in the 
        manner prescribed by the Commission which shall be separate 
        from the books, records, and accounts maintained by the Bell 
        operating company of which it is an affiliate;
            ``(2) shall have separate officers, directors, and 
        employees from the Bell operating company of which it is an 
        affiliate;
            ``(3) may not obtain credit under any arrangement that 
        would permit a creditor, upon default, to have recourse to the 
        assets of the Bell operating company; and
            ``(4) shall conduct all transactions with the Bell 
        operating company of which it is an affiliate on an arm's 
        length basis with any such transactions reduced to writing and 
        available for public inspection.
  ``(c) Nondiscrimination Safeguards.--In its dealings with its 
affiliate described in subsection (a) a Bell operating company--
            ``(1) may not discriminate between that company or 
        affiliate and any other entity in the provision or procurement 
        of goods, services, facilities, and information, or in the 
        establishment of standards;
            ``(2) may not provide any goods, services, facilities, or 
        information to such company or affiliate unless the goods, 
        services, facilities, or information are made available to 
        other persons on reasonable and nondiscriminatory terms and 
        conditions, unbundled to the smallest element that is 
        technically feasible and economically reasonable to provide, 
        and at just and reasonable rates that are not higher on a per-
        unit basis than those charged for such services to any 
        affiliate of such company; and
            ``(3) shall account for all transactions with an affiliate 
        described in subsection (a) in accordance with generally 
        accepted accounting principles.
    ``(d) Biennial Audit.--
            ``(1) General requirement.--A company required to operate a 
        separate affiliate under this section shall obtain and pay for 
        a joint Federal/State audit every 2 years conducted by an 
        independent auditor selected by the Commission, and working at 
        the direction of, the Commission and the State commission of 
        each State in which such company provides service, to determine 
        whether such company has complied with this section and the 
        regulations promulgated under this section, and particularly 
        whether such company has complied with the separate accounting 
        requirements under subsection (b).
            ``(2) Results submitted to commission; state commissions.--
        The auditor described in paragraph (1) shall submit the results 
        of the audit to the Commission and to the State commission of 
        each State in which the company audited provides service, which 
        shall make such results available for public inspection. Any 
        party may submit comments on the final audit report.
            ``(3) Access to documents.--For purposes of conducting 
        audits and reviews under this subsection--
                    ``(A) the independent auditor, the Commission, and 
                the State commission shall have access to the financial 
                accounts and records of each company and of its 
                affiliates necessary to verify transactions conducted 
                with that company that are relevant to the specific 
                activities permitted under this section and that are 
                necessary for the regulation of rates;
                    ``(B) the Commission and the State commission shall 
                have access to the working papers and supporting 
                materials of any auditor who performs an audit under 
                this section; and
                    ``(C) the State commission shall implement 
                appropriate procedures to ensure the protection of any 
                proprietary information submitted to it under this 
                section.
    ``(e) Joint Marketing.--
            ``(1) A Bell operating company affiliate required by this 
        section may not market or sell telephone exchange services 
        provided by the Bell operating company unless that company 
        permits other entities offering the same or similar service to 
        market and sell its telephone exchange services.
            ``(2) A Bell operating company may not market or sell any 
        service provided by an affiliate required by this section until 
        that company has been authorized to provide interLATA services 
        under section 255.
            ``(3) The joint marketing and sale of services permitted 
        under this subsection shall not be considered to violate the 
        nondiscrimination provisions of subsection (c).
    ``(f) Additional Requirements for Provision of InterLATA 
Services.--A Bell operating company--
            ``(1) shall fulfill any requests from an unaffiliated 
        entity for exchange access service within a period no longer 
        than that in which it provides such exchange access service to 
        itself or to its affiliates;
            ``(2) shall fulfill any such requests with exchange access 
        service of a quality that meets or exceeds the quality of 
        exchange access service provided by the Bell operating company 
        to itself or its affiliate;
            ``(3) shall provide exchange access service to all carriers 
        at rates that are just, reasonable, not unreasonably 
        discriminatory, and based on costs;
            ``(4) shall not provide any facilities, services, or 
        information concerning its provision of exchange access service 
        to the affiliate described in subsection (a) unless such 
        facilities, services, or information are made available to 
        other providers of interLATA services in that market on the 
        same terms and conditions;
            ``(5) shall charge the affiliate described in subsection 
        (a), and impute to itself or any intraLATA interexchange 
        affiliate, the same rates for access to its telephone exchange 
        service and exchange access service that it charges 
        unaffiliated interexchange carriers for such service; and
            ``(6) may provide any interLATA or intraLATA facilities or 
        services to its interLATA affiliate if such services or 
        facilities are made available to all carriers at the same rates 
        and on the same terms and conditions so long as the costs are 
        appropriately allocated.
    ``(g) Proprietary Information.--
            ``(1) In general.--In complying with the requirements of 
        this section, each Bell operating company and any affiliate of 
        such company has a duty to protect the confidentiality of 
        propriety information relating to other common carriers, to 
        equipment manufacturers, and to customers. A Bell operating 
        company may not share customer proprietary information in 
        aggregate form with its affiliates unless such aggregate 
        information is available to other carriers or persons under the 
        same terms and conditions. Individually identifiable customer 
        proprietary information and other proprietary information may 
        be--
                    ``(A) shared with any affiliated entity required by 
                this section or with any unaffiliated entity only with 
                the consent of the person to which such information 
                relates or from which it was obtained (including other 
                carriers); or
                    ``(B) disclosed to appropriate authorities pursuant 
                to court order.
            ``(2) Exceptions.--Paragraph (1) does not limit the 
        disclosure of individually identifiable customer proprietary 
        information by each Bell operating company as necessary--
                    ``(A) to initiate, render, bill, and collect for 
                telephone exchange service, interexchange service, or 
                telecommunications service requested by a customer; or
                    ``(B) to protect the rights or property of the 
                carrier, or to protect users of any of those services 
                and other carriers from fraudulent, abusive, or 
                unlawful use of, or subscription to, any such service.
            ``(3) Subscriber list information.--For purposes of this 
        subsection, the term `customer proprietary information' does 
        not include subscriber list information.
    ``(h) Commission May Grant Exceptions.--The Commission may grant an 
exception from compliance with any requirement of this section upon a 
showing that the exception is necessary for the public interest, 
convenience, and necessity.
    ``(i) Application to Utility Companies.--
            ``(1) Registered public utility holding company.--A 
        registered company may provide telecommunications services only 
        through a separate subsidiary company that is not a public 
        utility company.
            ``(2) Other utility companies.--Each State shall determine 
        whether a holding company subject to its jurisdiction--
                    ``(A) that is not a registered holding company, and
                    ``(B) that provides telecommunications service,
        is required to provide that service through a separate 
        subsidiary company.
            ``(3) Savings provision.--Nothing in this subsection or the 
        Telecommunications Act of 1995 prohibits a public utility 
        company from engaging in any activity in which it is legally 
        engaged on the date of enactment of the Telecommunications Act 
        of 1995; provided it complies with the terms of any applicable 
        authorizations.
            ``(4) Definitions.--For purposes of this subsection, the 
        terms `public utility company', `associate company', `holding 
        company', `subsidiary company', `registered holding company', 
        and `State commission' have the same meaning as they have in 
        section 2 of the Public Utility Holding Company Act of 1935.''.
    (b) Implementation.--The Commission shall promulgate any 
regulations necessary to implement section 252 of the Communications 
Act of 1934 (as added by subsection (a)) not later than one year after 
the date of enactment of this Act. Any separate affiliate established 
or designated for purposes of section 252(a) of the Communications Act 
of 1934 before the regulations have been issued in final form shall be 
restructured or otherwise modified, if necessary, to meet the 
requirements of those regulations.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 103. UNIVERSAL SERVICE.

    (a) Findings.--The Congress finds that--
            (1) the existing system of universal service has evolved 
        since 1930 through an ongoing dialogue between industry, 
        various Federal-State Joint Boards, the Commission, and the 
        courts;
            (2) this system has been predicated on rates established by 
        the Commission and the States that require implicit cost 
        shifting by monopoly providers of telephone exchange service 
        through both local rates and access charges to interexchange 
        carriers;
            (3) the advent of competition for the provision of 
        telephone exchange service has led to industry requests that 
        the existing system be modified to make support for universal 
        service explicit and to require that all telecommunications 
        carriers participate in the modified system on a competitively 
        neutral basis; and
            (4) modification of the existing system is necessary to 
        promote competition in the provision of telecommunications 
        services and to allow competition and new technologies to 
        reduce the need for universal service support mechanisms.
    (b) Federal-State Joint Board on Universal Service.--
            (1) Within one month after the date of enactment of this 
        Act, the Commission shall institute and refer to a Federal-
        State Joint Board under section 410(c) of the Communications 
        Act of 1934 a proceeding to recommend rules regarding the 
        implementation of section 253 of that Act, including the 
        definition of universal service. The Joint Board shall, after 
        notice and public comment, make its recommendations to the 
        Commission no later than 9 months after the date of enactment 
        of this Act.
            (2) The Commission may periodically, but no less than once 
        every 4 years, institute and refer to the Joint Board a 
        proceeding to review the implementation of section 253 of that 
        Act and to make new recommendations, as necessary, with respect 
        to any modifications or additions that may be needed. As part 
        of any such proceeding the Joint Board shall review the 
        definition of, and adequacy of support for, universal service 
        and shall evaluate the extent to which universal service has 
        been protected and advanced.
    (c) Commission Action.--The Commission shall initiate a single 
proceeding to implement recommendations from the initial Joint Board 
required by subsection (a) and shall complete such proceeding within 1 
year after the date of enactment of this Act. Thereafter, the 
Commission shall complete any proceeding to implement recommendations 
from any further Joint Board required under subsection (b) within one 
year after receiving such recommendations.
    (d) Separations Rules.--Nothing in the amendments made by this Act 
to the Communications Act of 1934 shall affect the Commission's 
separations rules for local exchange carriers or interexchange carriers 
in effect on the date of enactment of this Act.
    (e) Amendment of Communications Act.--Part II of title II (47 
U.S.C. 251 et seq.), as added by this Act, is amended by inserting 
after section 252 the following new section:

``SEC. 253. UNIVERSAL SERVICE.

    ``(a) Universal Service Principles.--The Joint Board and the 
Commission shall base policies for the preservation and advancement of 
universal service on the following principles:
            ``(1) Quality services are to be provided at just, 
        reasonable, and affordable rates.
            ``(2) Access to advanced telecommunications and information 
        services should be provided in all regions of the Nation.
            ``(3) Consumers in rural and high cost areas should have 
        access to telecommunications and information services, 
        including interexchange services, that are reasonably 
        comparable to those services provided in urban areas.
            ``(4) Consumers in rural and high cost areas should have 
        access to telecommunications and information services at rates 
        that are reasonably comparable to rates charged for similar 
        services in urban areas.
            ``(5) Consumers in rural and high cost areas should have 
        access to the benefits of advanced telecommunications and 
        information services for health care, education, economic 
        development, and other public purposes.
            ``(6) There should be a coordinated Federal-State universal 
        service system to preserve and advance universal service using 
        specific and predictable Federal and State mechanisms 
        administered by an independent, non-governmental entity or 
        entities.
            ``(7) Elementary and secondary schools and classrooms 
        should have access to advanced telecommunications services.
    ``(b) Definition.--
            ``(1) In general.--Universal service is an evolving level 
        of intrastate and interstate telecommunications services that 
        the Commission, based on recommendations from the public, 
        Congress, and the Federal-State Joint Board periodically 
        convened under section 103 of the Telecommunications Act of 
        1995, and taking into account advances in telecommunications 
        and information technologies and services, determines--
                    ``(A) should be provided at just, reasonable, and 
                affordable rates to all Americans, including those in 
                rural and high cost areas and those with disabilities;
                    ``(B) are essential in order for Americans to 
                participate effectively in the economic, academic, 
                medical, and democratic processes of the Nation; and
                    ``(C) are, through the operation of market choices, 
                subscribed to by a substantial majority of residential 
                customers.
            ``(2) Different definition for certain purposes.--The 
        Commission may establish a different definition of universal 
        service for schools, libraries, and health care providers for 
        the purposes of section 264.
    ``(c) All Telecommunications Carriers Must Participate.--Every 
telecommunications carrier engaged in instrastate, interstate, or 
foreign communication shall participate, on an equitable and 
nondiscriminatory basis, in the specific and predictable mechanisms 
established by the Commission and the States to preserve and advance 
universal service. Such participation shall be in the manner determined 
by the Commission and the States to be reasonably necessary to preserve 
and advance universal service. Any other provider of telecommunications 
may be required to participate in the preservation and advancement of 
universal service, if the public interest so requires.
    ``(d) State Authority.--A State may adopt regulations to carry out 
its responsibilities under this section, or to provide for additional 
definitions, mechanisms, and standards to preserve and advance 
universal service within that State, to the extent that such 
regulations do not conflict with the Commission's rules to implement 
this section. A State may only enforce additional definitions or 
standards to the extent that it adopts additional specific and 
predictable mechanisms to support such definitions or standards.
    ``(e) Eligibility for Universal Service Support.--To the extent 
necessary to provide for specific and predictable mechanisms to achieve 
the purposes of this section, the Commission shall modify its existing 
rules for the preservation and advancement of universal service. Only 
essential telecommunications carriers designated under section 214(d) 
shall be eligible to receive support for the provision of universal 
service. Such support, if any, shall accurately reflect what is 
necessary to preserve and advance universal service in accordance with 
this section and the other requirements of this Act.
    ``(f) Universal Service Support.--The Commission and the States 
shall have as their goal the need to make any support for universal 
service explicit, and to target that support to those essential 
telecommunications carriers that serve areas for which such support is 
necessary. The specific and predictable mechanisms adopted by the 
Commission and the States shall ensure that essential 
telecommunications carriers are able to provide universal service at 
just, reasonable, and affordable rates. A carrier that receives 
universal service support shall use that support only for the 
provision, maintenance, and upgrading of facilities and services for 
which the support is intended.
    ``(g) Interexchange Services.--The rates charged by any provider of 
interexchange telecommunications service to customers in rural and high 
cost areas shall be no higher than those charged by such provider to 
its customers in urban areas.
    ``(h) Subsidy of Competitive Services Prohibited.--A 
telecommunications carrier may not use services that are not 
competitive to subsidize competitive services. The Commission, with 
respect to interstate services, and the States, with respect to 
intrastate services, shall establish any necessary cost allocation 
rules, accounting safeguards, and guidelines to ensure that services 
included in the definition of universal service bear no more than a 
reasonable share of the joint and common costs of facilities used to 
provide those services.
    ``(i) Congressional Notification Required.--
            ``(1) In general.--The Commission may not take action to 
        require participation by telecommunications carriers or other 
        providers of telecommunications under subsection (c), or to 
        modify its rules to increase support for the preservation and 
        advancement of universal service, until--
                    ``(A) the Commission submits to the Committee on 
                Commerce, Science, and Transportation of the Senate and 
                the Committee on Commerce of the House of 
                Representatives a report on the participation required, 
                or the increase in support proposed, as appropriate; 
                and
                    ``(B) a period of 120 days has elapsed since the 
                date the report required under paragraph (1) was 
                submitted.
            ``(2) Not applicable to reductions.--This subsection shall 
        not apply to any action taken to reduce costs to carriers or 
        consumers.
    ``(j) Effect on Commission's Authority.--Nothing in this section 
shall be construed to expand or limit the authority of the Commission 
to preserve and advance universal service under this Act.
    ``(k) Effective Date.--This section takes effect on the date of 
enactment of the Telecommunications Act of 1995, except for subsections 
(c), (d), (e), (f), and (i) which take effect one year after the date 
of enactment of that Act.''.
    (f) Prohibition on Exclusion of Areas from Service Based on Rural 
Location, High Costs, or Income.--Part II of title II (47 U.S.C. 201 et 
seq.) as amended by this Act, is amended by adding after section 253 
the following:

``SEC. 253A PROHIBITION ON EXCLUSION OF AREAS FROM SERVICE BASED ON 
              RURAL LOCATION, HIGH COSTS, OR INCOME.

    ``(a) The Commission shall prohibit any telecommunications carrier 
from excluding from any of such carrier's services any high-cost area, 
or any area on the basis of the rural location or the income of the 
residents of such area: Provided, That a carrier may exclude an area in 
which the carrier can demonstrate that--
            ``(1) there will be insufficient consumer demand for the 
        carrier to earn some return over the long term on the capital 
        invested to provide such service to such area, and--
            ``(2) providing a service to such area will be less 
        profitable for the carrier than providing the service in areas 
        to which the carrier is already providing or has proposed to 
        provide the service.
    ``(b) The Commission shall provide for public comment on the 
adequacy of the carrier's proposed service area on the basis of the 
requirements of this section.''.

SEC. 104. ESSENTIAL TELECOMMUNICATIONS CARRIERS.

    (a) In General.--Section 214(d) (47 U.S.C. 214(d)) is amended--
            (1) by inserting ``(1) Adequate facilities required.--'' 
        before ``The Commission''; and
            (2) by adding at the end thereof the following:
    ``(2) Designation of essential carrier.-- If one or more common 
carriers provide telecommunications service to a geographic area, and 
no common carrier will provide universal service to an unserved 
community or any portion thereof that requests such service within such 
area, then the Commission, with respect to interstate services, or a 
State, with respect to intrastate services, shall determine which 
common carrier serving that area is best able to provide universal 
service to the requesting unserved community or portion thereof, and 
shall designate that common carrier as an essential telecommunications 
carrier for that unserved community or portion thereof.
    ``(3) Essential carrier obligations.--A common carrier may be 
designated by the Commission, or by a State, as appropriate, as an 
essential telecommunications carrier for a specific service area and 
become eligible to receive universal service support under section 253. 
A carrier designated as an essential telecommunications carrier shall--
            ``(A) provide through its own facilities or through a 
        combination of its own facilities and resale of services using 
        another carrier's facilities, universal service and any 
        additional service (such as 911 service) required by the 
        Commission or the State, to any community or portion thereof 
        which requests such service;
            ``(B) offer such services at nondiscriminatory rates 
        established by the Commission, for interstate services, and the 
        State, for intrastate services, throughout the service area; 
        and
            ``(C) advertise throughout the service area the 
        availability of such services and the rates for such services 
        using media of general distribution.
    ``(4) Multiple essential carriers.--If the Commission, with respect 
to interstate services, or a State, with respect to intrastate 
services, designates more than one common carrier as an essential 
telecommunications carrier for a specific service area, such carrier 
shall meet the service, rate, and advertising requirements imposed by 
the Commission or State on any other essential telecommunications 
carrier for that service area. A State shall require that, before 
designating an additional essential telecommunications carrier, the 
State agency authorized to make the designation shall find that--
            ``(A) the designation of an additional essential 
        telecommunications carrier is in the public interest and that 
        there will not be a significant adverse impact on users of 
        telecommunications services or on the provision of universal 
        service;
            ``(B) the designation encourages the development and 
        deployment of advanced telecommunications infrastructure and 
        services in rural areas; and
            ``(C) the designation protects the public safety and 
        welfare, ensures the continued quality of telecommunications 
        services, or safeguards the rights of consumers.
    ``(5) Resale of universal service.--The Commission, for interstate 
services, and the States, for intrastate services, shall establish 
rules to govern the resale of universal service to allocate any support 
received for the provision of such service in a manner that ensures 
that the carrier whose facilities are being resold is adequately 
compensated for their use, taking into account the impact of the resale 
on that carrier's ability to maintain and deploy its network as a 
whole. The Commission shall also establish, based on the 
recommendations of the Federal-State Joint Board instituted to 
implement this section, rules to permit a carrier designated as an 
essential telecommunications carrier to relinquish that designation for 
a specific service area if another telecommunications carrier is also 
designated as an essential telecommunications carrier for that area. 
The rules--
            ``(A) shall ensure that all customers served by the 
        relinquishing carrier continue to be served, and shall require 
        sufficient notice to permit the purchase or construction of 
        adequate facilities by any remaining essential 
        telecommunications carrier if such remaining carrier provided 
        universal service through resale of the facilities of the 
        relinquishing carrier; and
            ``(B) shall establish criteria for determining when a 
        carrier which intends to utilize resale to meet the 
        requirements for designation under this subsection has adequate 
        resources to purchase, construct, or otherwise obtain the 
        facilities necessary to meet its obligation if the reselling 
        carrier is no longer able or obligated to resell the service.
    ``(6) Enforcement.--A common carrier designated by the Commission 
or a State as an essential telecommunications carrier that refuses to 
provide universal service within a reasonable period to an unserved 
community or portion thereof which requests such service shall forfeit 
to the United States, in the case of interstate services, or the State, 
in the case of intrastate services, a sum of up to $10,000 for each day 
that such carrier refuses to provide such service. In determining a 
reasonable period the Commission or the State, as appropriate, shall 
consider the nature of any construction required to serve such 
requesting unserved community or portion thereof, as well as the 
construction intervals normally attending such construction, and shall 
allow adequate time for regulatory approvals and acquisition of 
necessary financing.
    ``(7) Interexchange services.--The Commission, for interstate 
services, or a State, for intrastate services, shall designate an 
essential telecommunications carrier for interexchange services for any 
unserved community or portion thereof requesting such services. Any 
common carrier designated as an essential telecommunications carrier 
for interexchange services under this paragraph shall provide 
interexchange services included in universal service to any unserved 
community or portion thereof which requests such service. The service 
shall be provided at nationwide geographically averaged rates for 
interstate interexchange services and at geographically averaged rates 
for intrastate interexchange services, and shall be just and reasonable 
and not unjustly or unreasonably discriminatory. A common carrier 
designated as an essential telecommunications carrier for interexchange 
services under this paragraph that refuses to provide interexchange 
service in accordance with this paragraph to an unserved community or 
portion thereof that requests such service within 180 days of such 
request shall forfeit to the United States a sum of up to $50,000 for 
each day that such carrier refuses to provide such service. The 
Commission or the State, as appropriate, may extend the 180-day period 
for providing interexchange service upon a showing by the common 
carrier of good faith efforts to comply within such period.
    ``(8) Implementation.--The Commission may, by regulation, establish 
guidelines by which States may implement the provisions of this 
section.''.
    (b) Conforming Amendment.--The heading for section 214 is amended 
by inserting a semicolon and ``essential telecommunications carriers'' 
after ``lines''.
    (c) Transition Rule.--A rural telephone company is eligible to 
receive universal service support payments under section 253(e) of the 
Communications Act of 1934 as if such company were an essential 
telecommunications carrier until such time as the Commission, with 
respect to interstate services, or a State, with respect to intrastate 
services, designates an essential telecommunications carrier or 
carriers for the area served by such company under section 214 of that 
Act.

SEC. 105. FOREIGN INVESTMENT AND OWNERSHIP REFORM.

    (a) In General.--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 where reciprocity found.--
        Subsection (b) shall not apply to any common carrier license 
        held, or for which application is made, after the date of 
        enactment of the Telecommunications Act of 1995 with respect to 
        any alien (or representative thereof), corporation, or foreign 
        government (or representative thereof) if the Commission 
        determines that the foreign country of which such alien is a 
        citizen, in which such corporation is organized, or in which 
        such foreign government is in control provides equivalent 
        market opportunities for common carriers to citizens of the 
        United States (or their representatives), corporations 
        organized in the United States, and the United States 
        Government (or its representative): Provided, That the 
        President does not object within 15 days of such determination. 
        If the President objects to a determination, the President 
        shall, immediately upon such objection, submit to Congress a 
        written report (in unclassified form, but with a classified 
        annex if necessary) that sets forth a detailed explanation of 
        the findings made and factors considered in objecting to the 
        determination. The determination of whether market 
        opportunities are equivalent shall be made on a market segment 
        specific basis within 180 days after the application is filed. 
        While determining whether such opportunities are equivalent on 
        that basis, the Commission shall also conduct an evaluation of 
        opportunities for access to all segments of the 
        telecommunications market of the applicant.
            ``(2) Snapback for reciprocity failure.--If the Commission 
        determines that any foreign country with respect to which it 
        has made a determination under paragraph (1) ceases to meet the 
        requirements for that determination, then--
                    ``(A) subsection (b) shall apply with respect to 
                such aliens, corporations, and government (or their 
                representatives) on the date on which 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 withdrawn, or denied, as the case may be, by the 
                Commission under the provisions of subsection (b).''.
    (b) Conforming Amendment.--Section 332(c)(6) (47 U.S.C. 332(c)(6)) 
is amended by adding at the end thereof the following:
        ``This paragraph does not apply to any foreign ownership 
        interest or transfer of ownership to which section 310(b) does 
        not apply because of section 310(f).''.
    (c) The Application of the Exon-Florio Law.--Nothing in this 
section (47 U.S.C. 310) shall limit in any way the application of the 
Exon-Florio law (50 U.S.C. App. 2170) to any transaction.

SEC. 106. INFRASTRUCTURE SHARING.

    (a) Regulations Required.--The Commission shall prescribe, within 
one year after the date of enactment of this Act, regulations that 
require local exchange carriers that were subject to Part 69 of the 
Commission's rules on or before that date to make available to any 
qualifying carrier such public switched network infrastructure, 
technology, information, and telecommunications facilities and 
functions as may be requested by such qualifying carrier for the 
purpose of enabling such qualifying carrier to provide 
telecommunications services, or to provide access to information 
services, in the service area in which such qualifying carrier has 
requested and obtained designation as an essential telecommunications 
carrier under section 214(d) and provides universal service by means of 
its own facilities.
    (b) Terms and Conditions of Regulations.--The regulations 
prescribed by the Commission pursuant to this section shall--
            (1) not require a local exchange carrier to which this 
        section applies to take any action that is economically 
        unreasonable or that is contrary to the public interest;
            (2) permit, but shall not require, the joint ownership or 
        operation of public switched network infrastructure and 
        services by or among such local exchange carrier and a 
        qualifying carrier;
            (3) ensure that such local exchange carrier will not be 
        treated by the Commission or any State as a common carrier for 
        hire or as offering common carrier services with respect to any 
        infrastructure, technology, information, facilities, or 
        functions made available to a qualifying carrier in accordance 
        with regulations issued pursuant to this section;
            (4) ensure that such local exchange carrier makes such 
        infrastructure, technology, information, facilities, or 
        functions available to a qualifying carrier on just and 
        reasonable terms and conditions that permit such qualifying 
        carrier to fully benefit from the economies of scale and scope 
        of such local exchange carrier, as determined in accordance 
        with guidelines prescribed by the Commission in regulations 
        issued pursuant to this section;
            (5) establish conditions that promote cooperation between 
        local exchange carriers to which this section applies and 
        qualifying carriers;
            (6) not require a local exchange carrier to which this 
        section applies to engage in any infrastructure sharing 
        agreement for any services or access which are to be provided 
        or offered to consumers by the qualifying carrier in such local 
        exchange carrier's telephone exchange area; and
            (7) require that such local exchange carrier file with the 
        Commission or State for public inspection, any tariffs, 
        contracts, or other arrangements showing the rates, terms, and 
        conditions under which such carrier is making available public 
        switched network infrastructure and functions under this 
        section.
    (c) Information Concerning Deployment of New Services and 
Equipment.--A local exchange carrier to which this section applies that 
has entered into an infrastructure sharing agreement under this section 
shall provide to each party to such agreement timely information on the 
planned deployment of telecommunications services and equipment, 
including any software or upgrades of software integral to the use or 
operation of such telecommunications equipment.
    (d) Definitions.--For purposes of this section--
            (1) Qualifying carrier.--The term ``qualifying carrier'' 
        means a telecommunications carrier that--
                    (A) lacks economies of scale or scope, as 
                determined in accordance with regulations prescribed by 
                the Commission pursuant to this section; and
                    (B) is a common carrier which offers telephone 
                exchange service, exchange access service, and any 
                other service that is included in universal service, to 
                all consumers without preference throughout the service 
                area for which such carrier has been designated as an 
                essential telecommunications carrier under section 
                214(d) of the Communications Act of 1934.
            (2) Other terms.--Any term used in this section that is 
        defined in the Communications Act of 1934 has the same meaning 
        as it has in that Act.

SEC. 107. COORDINATION FOR TELECOMMUNICATIONS NETWORK-LEVEL 
              INTEROPERABILITY.

    (a) In General.--To promote nondiscriminatory access to 
telecommunications networks by the broadest number of users and vendors 
of communications products and services through--
            (1) coordinated telecommunications network planning and 
        design by common carriers and other providers of 
        telecommunications services, and
            (2) interconnection of telecommunications networks, and of 
        devices with such networks, to ensure the ability of users and 
        information providers to seamlessly and transparently transmit 
        and receive information between and across telecommunications 
        networks,
the Commission may participate, in a manner consistent with its 
authority and practice prior to the date of enactment of this Act, in 
the development by appropriate voluntary industry standards-setting 
organizations to promote telecommunications network-level 
interoperability.
    (b) Definition of telecommunications network-level 
interoperability.--As used in this section, the term 
``telecommunications network-level interoperability'' means the ability 
of 2 or more telecommunications networks to communicate and interact in 
concert with each other to exchange information without degeneration.
    (c) Commission's Authority Not Limited.--Nothing in this section 
shall be construed as limiting the existing authority of the 
Commission.

            TITLE II--REMOVAL OF RESTRICTIONS TO COMPETITION

                  Subtitle A--Removal of Restrictions

SEC. 201. REMOVAL OF ENTRY BARRIERS.

    (a) Preemption of State Rules.--Part II of title II (47 U.S.C. 251 
et seq.), as added by this Act, is amended by inserting after section 
253 the following:

``SEC. 254. 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 any interstate or 
intrastate telecommunications services.
    ``(b) State Regulatory Authority.--Nothing in this section shall 
affect the ability of a State to impose, on a competitively neutral 
basis and consistent with section 253, 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) State and Local Government Authority.--Nothing in this 
section affects the authority of a State or 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 public rights-of-way on a 
nondiscriminatory basis, if the compensation required is publicly 
disclosed by such government.
    ``(d) Preemption.--If, after notice and an opportunity for public 
comment, the Commission determines that a State or local government has 
permitted or imposed any statute, regulation, or legal requirement that 
violates subsection (a) or (b), the Commission shall preempt the 
enforcement of such statute, regulation, or legal requirement to the 
extent necessary to correct such violation or inconsistency.
    ``(e) Commercial mobile services providers.--Nothing in this 
section shall affect the application of section 332(c)(3) to commercial 
mobile services providers.''.
    (b) Provision of Telecommunications Services by a Cable Operator.--
            (1) Jurisdiction of franchising authority.--Section 621(b) 
        (47 U.S.C. 541(b)) 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 for the 
                provision of telecommunications services; and
                    ``(ii) the provisions of this title shall not apply 
                to such cable operator or affiliate for the provision 
                of telecommunications services.
            ``(B) A franchising authority may not order a cable 
        operator or affiliate thereof to discontinue the provision of a 
        telecommunications service.
            ``(C) A franchising authority may not require a cable 
        operator to provide any telecommunications service or 
        facilities as a condition of the initial grant of a franchise, 
        franchise renewal, or transfer of a franchise.
            ``(D) Nothing in this paragraph affects existing Federal or 
        State authority with respect to telecommunications services.''.
            (2) Franchise fees.--Section 622(b) (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.
    (c) State and Local Tax Laws.--Except as provided in section 202, 
nothing in this Act (or in the Communications Act of 1934 as amended 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 that is consistent with the 
requirements of the Constitution of the United States, this Act, the 
Communications Act of 1934, or any other applicable Federal law.
    (d) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 202. ELIMINATION OF CABLE AND TELEPHONE COMPANY CROSS-OWNERSHIP 
              RESTRICTION.

    (a) In General.--Section 613(b) (47 U.S.C. 533(b)) is amended to 
read as follows:
    ``(b) Video Programming and Cable Services.--
            ``(1) Distinction between video platform and cable 
        service.--To the extent that any telecommunications carrier 
        carries video programming provided by others, or provides video 
        programming that it owns, controls, or selects directly to 
        subscribers, through a common carrier video platform, neither 
        the telecommunications carrier nor any video programming 
        provider making use of such platform shall be deemed to be a 
        cable operator providing cable service. To the extent that any 
        telecommunications carrier provides video programming directly 
        to subscribers through a cable system, the carrier shall be 
        deemed to be a cable operator providing cable service.
            ``(2) Bell operating company activities.--
                    ``(A) Notwithstanding the provisions of section 
                252, to the extent that a Bell operating company 
                carries video programming provided by others or 
                provides video programming that it owns, controls, or 
                selects over a common carrier video platform, it need 
                not use a separate affiliate if--
                            ``(i) the carrier provides facilities, 
                        services, or information to all programmers on 
                        the same terms and conditions as it provides 
                        such facilities, services, or information to 
                        its own video programming operations, and
                            ``(ii) the carrier does not use its 
                        telecommunications services to subsidize its 
                        provision of video programming.
                    ``(B) To the extent that a Bell operating company 
                provides cable service as a cable operator, it shall 
                provide such service through an affiliate that meets 
                the requirements of section 252 (a), (b), and (d) and 
                the Bell operating company's telephone exchange 
                services and exchange access services shall meet the 
                requirements of subparagraph (A)(ii) and section 
                252(c); except that, to the extent the Bell operating 
                company provides cable service utilizing its own 
                telephone exchange facilities, section 252(c) shall not 
                require the Bell operating company to make video 
                programming services capacity available on a non-
                discriminatory basis to other video programming 
                services providers.
                    ``(C) Upon a finding by the Commission that the 
                requirement of a separate affiliate under the preceding 
                subparagraph is no longer necessary to protect 
                consumers, competition, or the public interest, the 
                Commission shall exempt a Bell operating company from 
                that requirement.
            ``(3) Common carrier video platform.--Nothing in this Act 
        precludes a telecommunications carrier from carrying video 
        programming provided by others directly to subscribers over a 
        common carrier video platform. Nothing in this Act precludes a 
        video programming provider making use of a common carrier video 
        platform from being treated as an operator of a cable system 
        for purposes of section 111 of title 17, United States Code.
            ``(4) Rates; access.--Notwithstanding paragraph (2)(A)(i), 
        a provider of common carrier video platform services shall 
        provide local broadcast stations, and to those public, 
        educational, and governmental entities required by local 
        franchise authorities to be given access to cable systems 
        operating in the same market as the common carrier video 
        platform, with access to that platform for the transmission of 
        television broadcast programming at rates no higher than the 
        incremental-cost-based rates of providing such access. Local 
        broadcast stations shall be entitled to obtain access on the 
        first tier of programming on the common carrier video platform. 
        If the area covered by the common carrier video platform 
        includes more than one franchising area, then the Commission 
        shall determine the number of channels allocated to public, 
        educational, and governmental entities that may be eligible for 
        such rates for that platform.
            ``(5) Competitive neutrality.--A provider of video 
        programming may be required to pay fees in lieu of franchise 
        fees (as defined in section 622(g)(1)) if the fees--
                    ``(A) are competitively neutral; and
                    ``(B) are separately identified in consumer 
                billing.
            ``(6) Acquisitions; joint ventures; partnerships; joint use 
        of facilities.--
                    ``(A) Local exchange carriers.--No local exchange 
                carrier or any affiliate of such carrier owned by, 
                operated by, controlled by, or under common control 
                with such carrier may purchase or otherwise acquire 
                more than a 10 percent financial interest, or any 
                management interest, in any cable operator providing 
                cable service within the local exchange carrier's 
                telephone service area.
                    ``(B) Cable operators.--No cable operator or 
                affiliate of a cable operator that is owned by, 
                operated by, controlled by, or under common ownership 
                with such cable operator may purchase or otherwise 
                acquire, directly or indirectly, more than a 10 percent 
                financial interest, or any management interest, in any 
                local exchange carrier providing telephone exchange 
                service within such cable operator's franchise area.
                    ``(C) Joint Venture.--A local exchange carrier and 
                a cable operator whose telephone service area and cable 
                franchise area, respectively, are in the same market 
                may not enter into any joint venture or partnership to 
                provide video programming directly to subscribers or to 
                provide telecommunications services within such market.
                    ``(D) Exception.--Notwithstanding subparagraphs 
                (A), (B), and (C) of this paragraph, a local exchange 
                carrier (with respect to a cable system located in its 
                telephone service area) and a cable operator (with 
                respect to the facilities of a local exchange carrier 
                used to provide telephone exchange service in its cable 
                franchise area) may obtain a controlling interest in, 
                management interest in, or enter into a joint venture 
                or partnership with such system or facilities to the 
                extent that such system or facilities only serve 
                incorporated or unincorporated--
                            ``(i) places or territories that have fewer 
                        than 50,000 inhabitants; and
                            ``(ii) are outside an urbanized area, as 
                        defined by the Bureau of the Census.
                    ``(E) Waiver.--The Commission may waive the 
                restrictions of subparagraph (A), (B), or (C) only if 
                the Commission determines that, because of the nature 
                of the market served by the affected cable system or 
                facilities used to provide telephone exchange service--
                            ``(i) the incumbent cable operator or local 
                        exchange carrier would be subjected to undue 
                        economic distress by the enforcement of such 
                        provisions,
                            ``(ii) the system or facilities would not 
                        be economically viable if such provisions were 
                        enforced, or
                            ``(iii) the anticompetitive effects of the 
                        proposed transaction are clearly outweighed in 
                        the public interest by the probable effect of 
                        the transaction in meeting the convenience and 
                        needs of the community to be served.
                    ``(F) Joint use.--Notwithstanding subparagraphs 
                (A), (B), and (C), a telecommunications carrier may 
                obtain within such carrier's telephone service area, 
                with the concurrence of the cable operator on the 
                rates, terms, and conditions, the use of that portion 
                of the transmission facilities of such a cable system 
                extending from the last multiuser terminal to the 
                premises of the end user in excess of the capacity that 
                the cable operator uses to provide its own cable 
                services. A cable operator that provides access to such 
                portion of its transmission facilities to one 
                telecommunications carrier shall provide 
                nondiscriminatory access to such portion of its 
                transmission facilities to any other telecommunications 
                carrier requesting such access.
                    ``(G) Savings clause.--Nothing in this paragraph 
                affects--
                            ``(i) the authority of a local franchising 
                        authority (in the case of the purchase or 
                        acquisition of a cable operator, or a joint 
                        venture to provide cable service) or a State 
                        Commission (in the case of the acquisition of a 
                        local exchange carrier, or a joint venture to 
                        provide telephone exchange service) to approve 
                        or disapprove a purchase, acquisition, or joint 
                        venture, or
                            ``(ii) the antitrust laws, as described in 
                        section 7(a) of the Telecommunications 
                        Competition and Deregulation Act of 1995.''.
    (b) No Permit Required for Video Programming Services.--Section 214 
(47 U.S.C. 214) is amended by adding at the end thereof the following:
    ``(e) Special Rule.--No certificate is required under this section 
for a carrier to construct facilities to provide video programming 
services.''.
    (c) Safeguards.--Within one year after the date of enactment of 
this Act, the Commission shall prescribe regulations that--
            (1) require a telecommunications carrier that provides 
        video programming directly to subscribers to ensure that 
        subscribers are offered the means to obtain access to the 
        signals of local broadcast television stations identified under 
        section 614 as readily as they are today;
            (2) require such a carrier to display clearly and 
        prominently at the beginning of any program guide or menu of 
        program offerings the identity of any signal of any television 
        broadcast station that is carried by the carrier;
            (3) require such a carrier to ensure that viewers are able 
        to access the signal of any television broadcast station that 
        is carried by that carrier without first having to view 
        advertising or promotional material, or a navigational device, 
        guide, or menu that omits broadcasting services as an available 
        option;
            (4) except as required by paragraphs (1) through (3), 
        prohibit such carrier and a multichannel video programming 
        distributor using the facilities of such carrier from 
        discriminating among video programming providers with respect 
        to material or information provided by the carrier to 
        subscribers for the purposes of selecting programming, or in 
        the way such material or information is presented to 
        subscribers;
            (5) require such carrier and a multichannel video 
        programming distributor using the facilities of such carrier to 
        ensure that video programming providers or copyright holders 
        (or both) are able suitably and uniquely to identify their 
        programming services to subscribers;
            (6) if such identification is transmitted as part of the 
        programming signal, require a telecommunications carrier that 
        provides video programming directly to subscribers and a 
        multichannel video programming distributor using the facilities 
        of such carrier to transmit such identification without change 
        or alteration;
            (7) prohibit such carrier from discriminating among video 
        programming providers with regard to carriage and ensure that 
        the rates, terms, and conditions for such carriage are just, 
        reasonable, and nondiscriminatory;
            (8) extend to such carriers and multichannel video 
        programming distributors using the facilities of such carrier 
        the Commission's regulations concerning network nonduplication 
        (47 C.F.R. 76.92 et seq.) and syndicated exclusivity (47 C.F.R. 
        76.171 et seq.); and
            (9) extend to such carriers and multichannel video 
        programming distributors using the facilities of such carrier 
        the protections afforded to local broadcast signals in section 
        614(b)(3), 614(b)(4)(A), and 615(g)(1) and (2) of such Act (47 
        U.S.C. 534(b)(3), 534(b)(4)(A), and 535(g)(1) and (2)).
    (d) Enforcement.--The Commission shall resolve disputes under 
subsection (c) and the regulations prescribed under that subsection. 
Any such dispute shall be resolved with 180 days after notice of the 
dispute is submitted to the Commission. At that time, or subsequently 
in a separate 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 also 
seek any other remedy available under the law.
    (e) Effective Dates.--The amendment made by subsection (a) takes 
effect on the date of enactment of this Act. The amendment made by 
subsection (b) takes effect 1 year after that date.

SEC. 203. CABLE ACT REFORM.

    (a) Change in Definition of Cable System.--Section 602(7) (47 
U.S.C. 522(7)) is amended by striking out ``(B) a facility that serves 
only subscribers in 1 or more multiple unit dwellings under common 
ownership, control, or management, unless such facility or facilities 
uses any public right-of-way;'' and inserting ``(B) a facility that 
serves subscribers without using any public right-of-way;''.
    (b) Rate Deregulation.--
            (1) Section 623(c) (47 U.S.C. 543(c)) is amended--
                    (A) by striking ``subscriber,'' and the comma after 
                ``authority'' in paragraph (1)(B);
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Standard for unreasonable rates.--The Commission may 
        only consider a rate for cable programming services to be 
        unreasonable if it substantially exceeds the national average 
        rate for comparable cable programming services provided by 
        cable systems other than small cable systems, determined on a 
        per-channel basis as of June 1, 1995, and redetermined, and 
        adjusted if necessary, every 2 years thereafter.''.
            (2) Section 623(l)(1) (47 U.S.C. 543(l)(1)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting a semicolon and ``or''; 
                and
                    (C) by adding at the end the following:
                    ``(D) a local exchange carrier offers video 
                programming services directly to subscribers, either 
                over a common carrier video platform or as a cable 
                operator, in the franchise area of an unaffiliated 
                cable operator which is providing cable service in that 
                franchise area, but only if the video programming 
                services offered by the carrier in that area are 
                comparable to the video programming services provided 
                by the unaffiliated cable operator in that area.''.
    (c) Greater Deregulation for Smaller Cable Companies.--Section 623 
(47 U.S.C. 543) is amended by adding at the end thereof the following:
    ``(m) Special Rules for Small Companies.--
            ``(1) In general.--Subsection (a), (b), or (c) does not 
        apply to a small cable operator with respect to--
                    ``(A) cable programming services, or
                    ``(B) a basic service tier that was the only 
                service tier subject to regulation as of December 31, 
                1994,
        in any franchise area in which that operator serves 35,000 or 
        fewer subscribers.
            ``(2) Definition of small cable operator.--For purposes of 
        this subsection, the term `small cable operator' means a cable 
        operator that, directly or through an affiliate, serves in the 
        aggregate fewer than 1 percent of all subscribers in the United 
        States and is not affiliated with any entity or entities whose 
        gross annual revenues in the aggregate exceed $250,000,000.''.
    (d) Program Access.--Section 628 (47 U.S.C. 628) is amended by 
adding at the end the following:
    ``(j) Common Carriers.--Any provision that applies to a cable 
operator under this section shall apply to a telecommunications carrier 
or its affiliate that provides video programming by any means directly 
to subscribers. Any such provision that applies to a satellite cable 
programming vendor in which a cable operator has an attributable 
interest shall apply to any satellite cable programming vendor in which 
such common carrier has an attributable interest.''.
    (e) Expedited Decision-Making for Market Determinations Under 
Section 614.--
            (1) In general.--Section 614(h)(1)(C)(iv) (47 U.S.C. 
        614(h)(1)(C)(iv)) is amended to read as follows:
                            ``(iv) Within 120 days after the date on 
                        which a request is filed under this 
                        subparagraph, the Commission shall grant or 
                        deny the request.''.
            (2) Application to pending requests.--The amendment made by 
        paragraph (1) shall apply to--
                    (A) any request pending under section 614(h)(1)(C) 
                of the Communications Act of 1934 (47 U.S.C. 
                614(h)(1)(C)) on the date of enactment of this Act; and
                    (B) any request filed under that section after that 
                date.
    (f) Effective Date.--The amendments made by this section take 
effect on the date of enactment of this Act.

SEC. 204. POLE ATTACHMENTS.

    Section 224 (47 U.S.C. 224) is amended--
            (1) by inserting the following after subsection (a)(4):
            ``(5) The term `telecommunications carrier' shall have the 
        meaning given such term in subsection 3(nn) of this Act, except 
        that, for purposes of this section, the term shall not include 
        any person classified by the Commission as a dominant provider 
        of telecommunications services as of January 1, 1995.'';
            (2) by inserting after ``conditions'' in subsection (c)(1) 
        a comma and the following: ``or access to poles, ducts, 
        conduits, and rights-of-way as provided in subsection (f),'';
            (3) by inserting after subsection (d)(2) the following:
            ``(3) This subsection shall apply to the rate for any pole 
        attachment used by a cable television system solely to provide 
        cable service. Until the effective date of the regulations 
        required under subsection (e), this subsection shall also apply 
        to the pole attachment rates for cable television systems (or 
        for any telecommunications carrier that was not a party to any 
        pole attachment agreement prior to the date of enactment of the 
        Telecommunications Act of 1995) to provide any 
        telecommunications service or any other service subject to the 
        jurisdiction of the Commission.''; and
            (4) by adding at the end thereof the following:
            ``(e)(1) The Commission shall, no later than 2 years after 
        the date of enactment of the Telecommunications Act of 1995, 
        prescribe regulations in accordance with this subsection to 
        govern the charges for pole attachments by telecommunications 
        carriers. Such regulations shall ensure that utilities charge 
        just and reasonable and non-discriminatory rates for pole 
        attachments.
            ``(2) A utility shall apportion the cost of providing space 
        on a pole, duct, conduit, or right-of-way other than the usable 
        space among entities so that such apportionment equals the sum 
        of--
                    ``(A) two-thirds of the costs of providing space 
                other than the usable space that would be allocated to 
                such entity under an equal apportionment of such costs 
                among all attachments, plus
                    ``(B) the percentage of usable space required by 
                each such entity multiplied by the costs of space other 
                than the usable space;
        but in no event shall such proportion exceed the amount that 
        would be allocated to such entity under an equal apportionment 
        of such costs among all attachments.
            ``(3) A utility shall apportion the cost of providing 
        usable space among all entities according to the percentage of 
        usable space required for each entity. Costs shall be 
        apportioned between the usable space and the space on a pole, 
        duct, conduit, or right-of-way other than the usable space on a 
        proportionate basis.
            ``(4) The regulations required under paragraph (1) shall 
        become effective 5 years after the date of enactment of the 
        Telecommunications Act of 1995. Any increase in the rates for 
        pole attachments that result from the adoption of the 
        regulations required by this subsection shall be phased in 
        equal annual increments over a period of 5 years beginning on 
        the effective date of such regulations.
    ``(f)(1) A utility shall provide a cable television system or any 
telecommunications carrier with nondiscriminatory access to any pole, 
duct, conduit, or right-of-way owned or controlled by it.
    ``(2) Notwithstanding paragraph (1), a utility providing electric 
service may deny a cable television system or telecommunications 
carrier access to its poles, ducts, conduits, or rights-of-way, on a 
non-discriminatory basis where there is insufficient capacity and for 
reasons of safety, reliability, and generally applicable engineering 
purposes.
    ``(g) A utility that engages in the provision of telecommunications 
services shall impute to its costs of providing such services (and 
charge any affiliate, subsidiary, or associate company engaged in the 
provision of such services) an amount equal to the pole attachment rate 
for which such company would be liable under this section.''.

SEC. 205. ENTRY BY UTILITY COMPANIES.

    (a) In General.--
            (1) Authorized activities of utilities.--Notwithstanding 
        any other provision of law to the contrary (including the 
        Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et 
        seq.)), an electric, gas, water, or steam utility, and any 
        subsidiary company, affiliate, or associate company of such a 
        utility, other than a public utility company that is an 
        associate company of a registered holding company, may engage, 
        directly or indirectly, in any activity whatsoever, wherever 
        located, necessary or appropriate to the provision of--
                    (A) telecommunications services,
                    (B) information services,
                    (C) other services or products subject to the 
                jurisdiction of the Federal Communications Commission 
                under the Communications Act of 1934 (47 U.S.C. 151 et 
                seq.), or
                    (D) products or services that are related or 
                incidental to a product or service described in 
                subparagraph (A), (B), or (C).
            (2) Removal of sec jurisdiction.--The Securities and 
        Exchange Commission has no jurisdiction under the Public 
        Utility Holding Company Act of 1935 (15 U.S.C. 79a et seq.) 
        over a holding company, or a subsidiary company, affiliate, or 
        associate company of a holding company, to grant any 
        authorization to enforce any requirement with respect to, or 
        approve or otherwise review, any activity described in 
        paragraph (1), including financing, investing in, acquiring, or 
        maintaining any interest in, or entering into affiliate 
        transactions or contracts, and any authority over audits or 
        access to books and records.
            (3) Applicability of Telecommunications Regulation.--
        Nothing in this section shall affect the authority of the 
        Federal Communications Commission under the Communications Act 
        of 1934, or the authority of State commissions under State laws 
        concerning the provision of telecommunications services, to 
        regulate the activities of an associate company engaged in 
        activities described in paragraph (1).
            (4) Commission rules.--The Commission shall consider and 
        adopt, as necessary, rules to protect the customers of a public 
        utility company that is a subsidiary company of a registered 
        holding company against potential detriment from the 
        telecommunications activities of any other subsidiary of such 
        registered holding company.
    (b) Prohibition of Cross-Subsidization.--Nothing in the Public 
Utility Holding Company Act of 1935 shall preclude the Federal Energy 
Regulatory Commission or a State commission from exercising its 
jurisdiction under otherwise applicable law to determine whether a 
public utility company may recover in rates the costs of any activity 
described in subsection (a)(1) which is performed by an associate 
company regardless of whether such costs are incurred through the 
direct or indirect purchase of goods and services from such associate 
company.
    (c) Assumption of Liabilities.--Any public utility company that is 
an associate company of a registered holding company and that is 
subject to the jurisdiction of a State commission with respect to its 
retail electric or gas rates shall not issue any security for the 
purpose of financing the acquisition, ownership, or operation of an 
associate company engaged in activities described in subsection (a)(1) 
without the prior approval of the State commission. Any public utility 
company that is an associate company of a registered holding company 
and that is subject to the jurisdiction of a State commission with 
respect to its retail electric or gas rates shall not assume any 
obligation or liability as guarantor, endorser, surety, or otherwise by 
the public utility in respect of any security of an associate company 
engaged in activities described in subsection (a)(1) without the prior 
approval of the State commission.
    (d) Pledging or Mortgaging Utility Assets.--Any public utility 
company that is an associate company of a registered holding company 
and that is subject to the jurisdiction of a State commission with 
respect to its retail electric or gas rates shall not pledge, mortgage, 
or otherwise use as collateral any utility assets of the public utility 
or utility assets of any subsidiary company thereof for the benefit of 
an associate company engaged in activities described in subsection 
(a)(1) without the prior approval of the State commission.
    (e) Books and Records.--An associate company engaged in activities 
described in subsection (a)(1) which is an associate company of a 
registered holding company shall maintain books, records, and accounts 
separate from the registered holding company which identify all 
transactions with the registered holding company and its other 
associate companies, and provide access to books, records, and accounts 
to State commissions and the Federal Energy Regulatory Commission under 
the same terms of access, disclosure, and procedures as provided in 
section 201(g) of the Federal Power Act.
    (f) Independent Audit Authority for State Commissions.--
            (1) State may order audit.--Any State commission with 
        jurisdiction over a public utility company that--
                    (A) is an associate company of a registered holding 
                company, and
                    (B) transacts business, directly or indirectly, 
                with a subsidiary company, affiliate, or associate 
                company of that holding company engaged in any activity 
                described in subsection (a)(1),
        may order an independent audit to be performed, no more 
        frequently than on an annual basis, of all matters deemed 
        relevant by the selected auditor that reasonably relate to 
        retail rates: Provided, That such matters relate, directly or 
        indirectly, to transactions or transfers between the public 
        utility company subject to its jurisdiction and the subsidiary 
        company, affiliate, or associate company engaged in that 
        activity.
            (2) Selection of firm to conduct audit.--
                    (A) If a State commission orders an audit in 
                accordance with paragraph (1), the public utility 
                company and the State commission shall jointly select 
                within 60 days a firm to perform the audit. The firm 
                selected to perform the audit shall possess 
                demonstrated qualifications relating to:
                            (i) competency, including adequate 
                        technical training and professional proficiency 
                        in each discipline necessary to carry out the 
                        audit, and
                            (ii) independence and objectivity, 
                        including that the firm be free from personal 
                        or external impairments to independence, and 
                        should assume an independent position with the 
                        State commission and auditee, making certain 
                        that the audit is based upon an impartial 
                        consideration of all pertinent facts and 
                        responsible opinions.
                    (B) The public utility company and the company 
                engaged in activities under subsection (a)(1) shall 
                cooperate fully with all reasonable requests necessary 
                to perform the audit and the public utility company 
                shall bear all costs of having the audit performed.
            (3) Availability of auditor's report.--The auditor's report 
        shall be provided to the State commission within 6 months after 
        the selection of the auditor, and provided to the public 
        utility company 60 days thereafter.
    (g) Required Notices.--
            (1) Affiliate contracts.--A State commission may order any 
        public utility company that is an associate company of a 
        registered holding company and that is subject to the 
        jurisdiction of the State commission to provide quarterly 
        reports listing any contracts, leases, transfers, or other 
        transactions with an associate company engaged in activities 
        described in subsection (a)(1).
            (2) Acquisition of an interest in associate companies.--
        Within 10 days after the acquisition by a registered holding 
        company of an interest in an associate company that will engage 
        in activities described in subsection (a)(1), any public 
        utility company that is an associate company of such company 
        shall notify each State commission having jurisdiction over the 
        retail rates of such public utility company of such 
        acquisition. In the notice an officer on behalf of the public 
        utility company shall attest that, based on then current 
        information, such acquisition and related financing will not 
        materially impair the ability of such public utility company to 
        meet its public service responsibility, including its ability 
        to raise necessary capital.
    (h) Definitions.--Any term used in this section that is defined in 
the Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et seq.) 
has the same meaning as it has in that Act. The terms 
``telecommunications service'' and ``information service'' shall have 
the same meanings as those terms have in the Communications Act of 
1934.
    (i) Implementation.--Not later than 1 year after the date of 
enactment of this Act, the Federal Communications Commission shall 
promulgate such regulations as may be necessary to implement this 
section.
    (j) Effective Date.--This section takes effect on the date of 
enactment of this Act.

SEC. 206. BROADCAST REFORM.

    (a) Spectrum Reform.--
            (1) Advanced television spectrum services.--If the 
        Commission by rule permits licensees to provide advanced 
        television services, then--
                    (A) it shall adopt regulations that allow such 
                licensees to make use of the advanced television 
                spectrum for the transmission of ancillary or 
                supplementary services if the licensees provide without 
                charge to the public at least one advanced television 
                program service as prescribed by the Commission that is 
                intended for and available to the general public on the 
                advanced television spectrum; and
                    (B) it shall apply similar rules to use of existing 
                television spectrum.
            (2) Commission to collect fees.--To the extent that a 
        television broadcast licensee provides ancillary or 
        supplementary services using existing or advanced television 
        spectrum--
                    (A) for which 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 payments to broadcast stations by third 
                parties for transmission of program material or 
                commercial advertising,
        the Commission may collect from each such licensee an annual 
        fee to the extent the existing or advanced television spectrum 
        is used for such ancillary or supplementary services. In 
        determining the amount of such fees, the Commission shall take 
        into account the portion of the licensee's total existing or 
        advanced television spectrum which is used for such services 
        and the amount of time such services are provided. The amount 
        of such fees to be collected for any such service shall not, in 
        any event, exceed an amount equivalent on an annualized basis 
        to the amount paid by providers of a competing service on 
        spectrum subject to auction under section 309(j) of the 
        Communications Act of 1934 (47 U.S.C. 309(j)).
            (3) Public interest requirement.--Nothing in this section 
        shall be construed as relieving a television broadcasting 
        station from its obligation to serve the public interest, 
        convenience, and necessity. In the Commission's review of any 
        application for renewal of a broadcast license for a television 
        station that provides ancillary or supplementary services, the 
        television licensee shall establish that all of its program 
        services on the existing or advanced television spectrum are in 
        the public interest. Any violation of the Commission rules 
        applicable to ancillary or supplementary services shall reflect 
        upon the licensee's qualifications for renewal of its license.
            (4) Definitions.--As used in this subsection--
                    (A) The term ``advanced television services'' means 
                television services provided using digital or other 
                advanced technology to enhance audio quality and video 
                resolution.
                    (B) The term ``existing'' means spectrum generally 
                in use for television broadcast purposes on the date of 
                enactment of this Act.
    (b) Ownership Reform.--
            (1) In general.--The Commission shall modify its rules for 
        multiple ownership set forth in 47 CFR 73.3555 by--
                    (A) eliminating the restrictions on the number of 
                television stations owned under subdivisions (e)(1) 
                (ii) and (iii); and
                    (B) changing the percentage set forth in 
                subdivision (e)(2)(ii) from 25 percent to 35 percent.
            (2) Radio Ownership.--The Commission shall modify its rules 
        set forth in 47 CFR 73.3555 by eliminating any provisions 
        limiting the number of AM or FM broadcast stations which may be 
        owned or controlled by one entity either nationally or in a 
        particular market. The Commission may refuse to approve the 
        transfer or issuance of an AM or FM broadcast license to a 
        particular entity if it finds that the entity would thereby 
        obtain an undue concentration of control or would thereby harm 
        competition. Nothing in this section shall require or prevent 
        the Commission from modifying its rules contained in 47 CFR 
        73.3555(c) governing the ownership of both a radio and 
        television broadcast stations in the same market.
            (3) Local marketing agreement.--Nothing in this Act shall 
        be construed to prohibit the continuation or renewal of any 
        television local marketing agreement that is in effect on the 
        date of enactment of this Act and that is in compliance with 
        the Commission's regulations.
            (4) Statutory restrictions.--Section 613 (47 U.S.C. 533) is 
        amended by striking subsection (a) and inserting the following:
    ``(a) The Commission shall review its ownership rules biennially as 
part of its regulatory reform review under section 259.''.
            (5) Conforming changes.--The Commission shall amend its 
        rules to make any changes necessary to reflect the effect of 
        this section on its rules.
            (6) Effective date.--The Commission shall make the 
        modifications required by paragraphs (1) and (2) effective on 
        the date of enactment of this Act.
    (c) Term of Licenses.--Section 307(c) (47 U.S.C. 307(c)) is amended 
by striking the first four sentences and inserting the following:
    ``No license shall be granted for a term longer than 10 years. Upon 
application, a renewal of such license may be granted from time to time 
for a term of not to exceed 10 years, if the Commission finds that the 
public interest, convenience, and necessity would be served thereby.''.
    (d) Broadcast License Renewal Procedures.--
            (1) Section 309 (47 U.S.C. 309) is amended by adding at the 
        end thereof the following:
    ``(k)(1)(A) Notwithstanding subsections (c) and (d), 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, after notice and opportunity for comment, with 
respect to that station during the preceding term of its license, 
that--
            ``(i) the station has served the public interest, 
        convenience, and necessity;
            ``(ii) there have been no serious violations by the 
        licensee of this Act or the rules and regulations of the 
        Commission; and
            ``(iii) 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.
    ``(B) 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 (2), or grant such 
application on appropriate terms and conditions, including renewal for 
a term less than the maximum otherwise permitted.
    ``(2) If the Commission determines, after notice and opportunity 
for a hearing, that a licensee has failed to meet the requirements 
specified in paragraph (1)(A) 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.
    ``(3) In making the determinations specified in paragraphs (1) or 
(2)(A), 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.''.
            (2) Section 309(d) (47 U.S.C. 309(d)) is amended by 
        inserting ``(or subsection (k) in the case of renewal of any 
        broadcast station license)'' after ``with subsection (a)'' each 
        place it appears.
            (3) The amendments made by this subsection apply to 
        applications filed after May 31, 1995.
            (4) This section shall operate only if the Commission shall 
        amend its ``Application for renewal of License for AM, FM, TV, 
        Translator or LPTV Station'' (FCC Form 303-S) to require that, 
        for commercial TV applicants only, the applicant attach as an 
        exhibit to the application a summary of written comments and 
        suggestions received from the public and maintained by the 
        licensee in accordance with section 73.1202 of title 47, Code 
        of Federal Regulations, that comment on the applicant's 
        programming, if any, characterized by the commentor as 
        constituting violent programming.

       Subtitle B--Termination of Modification of Final Judgment

SEC. 221. REMOVAL OF LONG DISTANCE RESTRICTIONS.

    (a) In General.--Part II of title II (47 U.S.C. 251 et seq.), as 
added by this Act, is amended by inserting after section 254 the 
following new section:

``SEC. 255. INTEREXCHANGE TELECOMMUNICATIONS SERVICES.

    ``(a) In General.--Notwithstanding any restriction or obligation 
imposed before the date of enactment of the Telecommunications Act of 
1995 under section II(D) of the Modification of Final Judgment, a Bell 
operating company, or any subsidiary or affiliate of a Bell operating 
company, that meets the requirements of this section may provide--
            ``(1) interLATA telecommunications services originating in 
        any region in which it is the dominant provider of wireline 
        telephone exchange service or exchange access service after the 
        Commission determines that it has fully implemented the 
        competitive checklist found in subsection (b)(2) in the area in 
        which it seeks to provide interLATA telecommunications 
        services, in accordance with the provisions of subsection (c);
            ``(2) interLATA telecommunications services originating in 
        any area where that company is not the dominant provider of 
        wireline telephone exchange service or exchange access service 
        in accordance with the provisions of subsection (d); and
            ``(3) interLATA services that are incidental services in 
        accordance with the provisions of subsection (e).
    ``(b) Specific InterLATA Interconnection Requirements.--
            ``(1) In general.--A Bell operating company may provide 
        interLATA services in accordance with this section only if that 
        company has reached an interconnection agreement under section 
        251 and that agreement provides, at a minimum, for 
        interconnection that meets the competitive checklist 
        requirements of paragraph (2).
            ``(2) Competitive checklist.--Interconnection provided by a 
        Bell operating company to other telecommunications carriers 
        under section 251 shall include:
                    ``(A) Nondiscriminatory access on an unbundled 
                basis to the network functions and services of the Bell 
                operating company's telecommunications network that is 
                at least equal in type, quality, and price to the 
                access the Bell operating company affords to itself or 
                any other entity.
                    ``(B) The capability to exchange telecommunications 
                between customers of the Bell operating company and the 
                telecommunications carrier seeking interconnection.
                    ``(C) Nondiscriminatory access to the poles, ducts, 
                conduits, and rights-of-way owned or controlled by the 
                Bell operating company at just and reasonable rates 
                where it has the legal authority to permit such access.
                    ``(D) Local loop transmission from the central 
                office to the customer's premises, unbundled from local 
                switching or other services.
                    ``(E) Local transport from the trunk side of a 
                wireline local exchange carrier switch unbundled from 
                switching or other services.
                    ``(F) Local switching unbundled from transport, 
                local loop transmission, or other services.
                    ``(G) Nondiscriminatory access to--
                            ``(i) 911 and E911 services;
                            ``(ii) directory assistance services to 
                        allow the other carrier's customers to obtain 
                        telephone numbers; and
                            ``(iii) operator call completion services.
                    ``(H) White pages directory listings for customers 
                of the other carrier's telephone exchange service.
                    ``(I) Until the date by which neutral telephone 
                number administration guidelines, plan, or rules are 
                established, nondiscriminatory access to telephone 
                numbers for assignment to the other carrier's telephone 
                exchange service customers. After that date, compliance 
                with such guidelines, plan, or rules.
                    ``(J) Nondiscriminatory access to databases and 
                associated signaling, including signaling links, 
                signaling service control points, and signaling service 
                transfer points, necessary for call routing and 
                completion.
                    ``(K) Until the date by which the Commission 
                determines that final telecommunications number 
                portability is technically feasible and must be made 
                available, interim telecommunications number 
                portability through remote call forwarding, direct 
                inward dialing trunks, or other comparable 
                arrangements, with as little impairment of functioning, 
                quality, reliability, and convenience as possible. 
                After that date, full compliance with final 
                telecommunications number portability.
                    ``(L) Nondiscriminatory access to whatever services 
                or information may be necessary to allow the requesting 
                carrier to implement local dialing parity in a manner 
                that permits consumers to be able to dial the same 
                number of digits when using any telecommunications 
                carrier providing telephone exchange service or 
                exchange access service.
                    ``(M) Reciprocal compensation arrangements on a 
                nondiscriminatory basis for the origination and 
                termination of telecommunications.
                    ``(N) Telecommunications services and network 
                functions provided on an unbundled basis without any 
                conditions or restrictions on the resale or sharing of 
                those services or functions, including both origination 
                and termination of telecommunications services, other 
                than reasonable conditions required by the Commission 
                or a State. For purposes of this subparagraph, it is 
                not an unreasonable condition for the Commission or a 
                State to limit the resale--
                            ``(i) of services included in the 
                        definition of universal service to a 
                        telecommunications carrier who intends to 
                        resell that service to a category of customers 
                        different from the category of customers being 
                        offered that universal service by such carrier 
                        if the Commission or State orders a carrier to 
                        provide the same service to different 
                        categories of customers at different prices 
                        necessary to promote universal service; or
                            ``(ii) of subsidized universal service in a 
                        manner that allows companies to charge another 
                        carrier rates which reflect the actual cost of 
                        providing those services to that carrier, 
                        exclusive of any universal service support 
                        received for providing such services in 
                        accordance with section 214(d)(5).
            ``(3) Joint marketing of local and long distance 
        services.--Until a Bell operating company is authorized to 
        provide interLATA services in a telephone exchange area where 
        that company is the dominant provider of wireline telephone 
        exchange service or exchange access service, or until 36 months 
        have passed since the enactment of the Telecommunications Act 
        of 1995, whichever is earlier, a telecommunications carrier 
        that serves greater than 5 percent of the Nation's 
        presubscribed access lines may not jointly market in such 
        telephone exchange area telephone exchange service purchased 
        from such company with interLATA services offered by that 
        telecommunications carrier.
            ``(4) Commission may not expand competitive checklist.--The 
        Commission may not, by rule or otherwise, limit or extend the 
        terms used in the competitive checklist.
    ``(c) In-Region Services.--
            ``(1) Application.--Upon the enactment of the 
        Telecommunications Act of 1995, a Bell operating company or its 
        affiliate may apply to the Commission for authorization 
        notwithstanding the Modification of Final Judgment to provide 
        interLATA telecommunications service originating in any area 
        where such Bell operating company is the dominant provider of 
        wireline telephone exchange service or exchange access service. 
        The application shall describe with particularity the nature 
        and scope of the activity and of each product market or service 
        market, and each geographic market for which authorization is 
        sought.
            ``(2) Determination by commission.--
                    ``(A) Determination.--Not later than 90 days after 
                receiving an application under paragraph (1), the 
                Commission shall issue a written determination, on the 
                record after a hearing and opportunity for comment, 
                granting or denying the application in whole or in 
                part. Before making any determination under this 
                subparagraph, the Commission shall consult with the 
                Attorney General regarding the application. In 
                consulting with the Commission under this subparagraph, 
                the Attorney General may apply any appropriate 
                standard.
                    ``(B) Approval.--The Commission may only approve 
                the authorization requested in an application submitted 
                under paragraph (1) if it finds that--
                            ``(i) the petitioning Bell operating 
                        company has fully implemented the competitive 
                        checklist found in subsection (b)(2); and
                            ``(ii) the requested authority will be 
                        carried out in accordance with the requirements 
                        of section 252,
                and if the Commission determines that the requested 
                authorization is consistent with the public interest, 
                convenience, and necessity. If the Commission does not 
                approve an application under this subparagraph, it 
                shall state the basis for its denial of the 
                application.
            ``(3) Publication.--Not later than 10 days after issuing a 
        determination under paragraph (2), the Commission shall publish 
        in the Federal Register a brief description of the 
        determination.
            ``(4) Judicial review.--
                    ``(A) Commencement of action.--Not later than 45 
                days after a determination by the Commission is 
                published under paragraph (3), the Bell operating 
                company or its subsidiary or affiliate that applied to 
                the Commission under paragraph (1), or any person who 
                would be threatened with loss or damage as a result of 
                the determination regarding such company's engaging in 
                the activity described in its application, may commence 
                an action in any United States Court of Appeals against 
                the Commission for judicial review of the determination 
                regarding the application.
                    ``(B) Judgment.--
                            ``(i) The Court shall enter a judgment 
                        after reviewing the determination in accordance 
                        with section 706 of title 5 of the United State 
                        Code.
                            ``(ii) A judgment--
                                    ``(I) affirming any part of the 
                                determination that approves granting 
                                all or part of the requested 
                                authorization, or
                                    ``(II) reversing any part of the 
                                determination that denies all or part 
                                of the requested authorization,
                        shall describe with particularity the nature 
                        and scope of the activity, and of each product 
                        market or service market, and each geographic 
                        market, to which the affirmance or reversal 
                        applies.
            ``(5) Requirements relating to separate affiliate; 
        safeguards; and intralata toll dialing parity.--
                    ``(A) Separate affiliate; safeguards.--Other than 
                interLATA services authorized by an order entered by 
                the United States District Court for the District of 
                Columbia pursuant to the Modification of Final Judgment 
                before the date of enactment of the Telecommunications 
                Act of 1995, a Bell operating company, or any affiliate 
                of such a company, providing interLATA services 
                authorized under this subsection may provide such 
                interLATA services in that market only in accordance 
                with the requirements of section 252.
                    ``(B) Intralata toll dialing parity.--
                            ``(i) A Bell operating company granted 
                        authority to provide interLATA services under 
                        this subsection shall provide intraLATA toll 
                        dialing parity throughout that market 
                        coincident with its exercise of that authority. 
                        If the Commission finds that such a Bell 
                        operating company has provided interLATA 
                        service authorized under this clause before its 
                        implementation of intraLATA toll dialing parity 
                        throughout that market, or fails to maintain 
                        intraLATA toll dialing parity throughout that 
                        market, the Commission, except in cases of 
                        inadvertent interruptions or other events 
                        beyond the control of the Bell operating 
                        company, shall suspend the authority to provide 
                        interLATA service for that market until the 
                        Commission determines that intraLATA toll 
                        dialing parity is implemented or reinstated.
                            ``(ii) Except for single-LATA States and 
                        States which have issued an order by June 1, 
                        1995 requiring a Bell operating company to 
                        implement toll dialing parity, a State may not 
                        require a Bell operating company to implement 
                        toll dialing parity in an intraLATA area before 
                        a Bell operating company has been granted 
                        authority under this subsection to provide 
                        interLATA services in that area or before three 
                        years after the date of enactment of the 
                        Telecommunications Act of 1995, whichever is 
                        earlier. Nothing in this clause precludes a 
                        State from issuing an order requiring toll 
                        dialing parity in an intraLATA area prior to 
                        either such date so long as such order does not 
                        take effect until after the earlier of either 
                        such dates.
                            ``(iii) In any State in which intraLATA 
                        toll dialing parity has been implemented prior 
                        to the earlier date specified in clause (ii), 
                        no telecommunications carrier that serves 
                        greater than five percent of the Nation's 
                        presubscribed access lines may jointly market 
                        interLATA telecommunications services and 
                        intraLATA toll telecommunications services in a 
                        telephone exchange area in such State until a 
                        Bell operating company is authorized under this 
                        subsection to provide interLATA services in 
                        such telephone exchange area or until three 
                        years after the date of enactment of the 
                        Telecommunications Act of 1995, whichever is 
                        earlier.
    ``(d) Out-of-Region Services.--Effective on the date of enactment 
of the Telecommunications Act of 1995, a Bell operating company or its 
affiliate may provide interLATA telecommunications services originating 
in any area where such company is not the dominant provider of wireline 
telephone exchange service or exchange access service.
    ``(e) Incidental Services.--
            ``(1) In general.--Effective on the date of enactment of 
        the Telecommunications Act of 1995, a Bell operating company or 
        its affiliate may provide interLATA services that are 
        incidental to--
                    ``(A)(i) providing audio programming, video 
                programming, or other programming services to 
                subscribers of such company,
                    ``(ii) providing the capability for interaction by 
                such subscribers to select or respond to such audio 
                programming, video programming, or other programming 
                services, to order, or control transmission of the 
                programming, polling or balloting, and ordering other 
                goods or services,
                    ``(iii) providing to distributors audio programming 
                or video programming that such company owns, controls, 
                or is licensed by the copyright owner of such 
                programming, or by an assignee of such owner, to 
                distribute, or
                    ``(iv) providing alarm monitoring services,
                    ``(B) providing--
                            ``(i) a telecommunications service, using 
                        the transmission facilities of a cable system 
                        that is an affiliate of such company, between 
                        LATAs within a cable system franchise area in 
                        which such company is not, on the date of 
                        enactment of the Telecommunications Act of 
                        1995, a provider of wireline telephone exchange 
                        service, or
                            ``(ii) two-way interactive video services 
                        or Internet services over dedicated facilities 
                        to or for elementary and secondary schools as 
                        defined in section 264(d),
                    ``(C) providing a service that permits a customer 
                that is located in one LATA to retrieve stored 
                information from, or file information for storage in, 
                information storage facilities of such company that are 
                located in another LATA area, so long as the customer 
                acts affirmatively to initiate the storage or retrieval 
                of information, except that--
                            ``(i) such service shall not cover any 
                        service that establishes a direct connection 
                        between end users or any real-time voice and 
                        data transmission,
                            ``(ii) such service shall not include 
                        voice, data, or facsimile distribution services 
                        in which the Bell operating company or 
                        affiliate forwards customer-supplied 
                        information to customer- or carrier-selected 
                        recipients,
                            ``(iii) such service shall not include any 
                        service in which the Bell operating company or 
                        affiliate searches for and connects with the 
                        intended recipient of information, or any 
                        service in which the Bell operating company or 
                        affiliate automatically forwards stored 
                        voicemail or other information to the intended 
                        recipient, and
                            ``(iv) customers of such service shall not 
                        be billed a separate charge for the interLATA 
                        telecommunications furnished in conjunction 
                        with the provision of such service,
                    ``(D) providing signaling information used in 
                connection with the provision of telephone exchange 
                service or exchange access service to another local 
                exchange carrier; or
                    ``(E) providing network control signaling 
                information to, and receiving such signaling 
                information from, interexchange carriers at any 
                location within the area in which such company provides 
                telephone exchange service or exchange access service.
            ``(2) Limitations.--The provisions of paragraph (1) are 
        intended to be narrowly construed. The transmission facilities 
        used by a Bell operating company or affiliate thereof to 
        provide interLATA telecommunications under paragraph (1)(C) and 
        subsection (f) shall be leased by that company from 
        unaffiliated entities on terms and conditions (including price) 
        no more favorable than those available to the competitors of 
        that company until that Bell operating company receives 
        authority to provide interLATA services under subsection (c). 
        The interLATA services provided under paragraph (1)(A) are 
        limited to those interLATA transmissions incidental to the 
        provision by a Bell operating company or its affiliate of 
        video, audio, and other programming services that the company 
        or its affiliate is engaged in providing to the public. A Bell 
        operating company may not provide telecommunications services 
        not described in paragraph (1) without receiving the approvals 
        required by subsection (c). The provision of services 
        authorized under this subsection by a Bell operating company or 
        its affiliate shall not adversely affect telephone exchange 
        ratepayers or competition in any telecommunications market.
    ``(f) Commercial Mobile Service.--A Bell operating company may 
provide interLATA commercial mobile service except where such service 
is a replacement for land line telephone exchange service for a 
substantial portion of the land line telephone exchange service in a 
State in accordance with section 322(c) and with the regulations 
prescribed by the Commission.
    ``(g) Definitions.--As used in this section--
            ``(1) Audio programming services.--The term `audio 
        programming services' means programming provided by, or 
        generally considered to be comparable to programming provided 
        by, a radio broadcast station.
            ``(2) Video programming services; other programming 
        services.--The terms `video programming service' and `other 
        programming services' have the same meanings as such terms have 
        under section 602 of this Act.
    ``(h) Certain Service Applications Treated As In-Region Service 
Applications.--For purposes of this section, a Bell operating company 
application to provide 800 service, private line service, or their 
equivalents that--
            ``(1) terminate in an area where the Bell operating company 
        is the dominant provider of wireline telephone exchange service 
        or exchange access service, and
            ``(2) allow the called party to determine the interLATA 
        carrier,
shall be considered an in-region service subject to the requirements of 
subsection (c) and not of subsection (d).''.
    (b) Long Distance Access for Commercial Mobile Services.--
            (1) In General.--Notwithstanding any restriction or 
        obligation imposed pursuant to the Modification of final 
        Judgment or other consent decree or proposed consent decree 
        prior to the date of enactment of this Act, a person engaged in 
        the provision of commercial mobile services (as defined in 
        section 332(d)(1) of the Communications Act of 1934), insofar 
        as such person is so engaged, shall not be required by court 
        order or otherwise to provide equal access to interexchange 
        telecommunications carriers, except as provided by this 
        section. Such a person shall ensure that its subscribers can 
        obtain unblocked access to the provider of interexchange 
        services of the subscriber's choice through the use of an 
        interexchange carrier identification code assigned to such 
        provider, except that the requirements for unblocking shall not 
        apply to mobile satellite services unless the Commission finds 
        it to be in the public interest.
            (2) Equal access requirement conditions.--The Commission 
        may only require a person engaged in the provision of 
        commercial mobile services to provide equal access to 
        interexchange carriers if--
                    (A) such person, insofar as such person is so 
                engaged, is subject to the interconnection obligations 
                of section 251(a) of the Communications Act of 1934, 
                and
                    (B) the Commission finds that such requirement is 
                in the public interest.

SEC. 222. REMOVAL OF MANUFACTURING RESTRICTIONS.

    (a) In General.--Part II of title II (47 U.S.C. 251 et seq.), as 
added by this Act, is amended by inserting after section 255 the 
following new section:

``SEC. 256. REGULATION OF MANUFACTURING BY BELL OPERATING COMPANIES.

    ``(a) Authorization.--
            ``(1) In general.--Notwithstanding any restriction or 
        obligation imposed before the date of enactment of the 
        Telecommunications Act of 1995 pursuant to the Modification of 
        Final Judgment on the lines of business in which a Bell 
        operating company may engage, if the Commission authorizes a 
        Bell operating company to provide interLATA services under 
        section 255, then that company may be authorized by the 
        Commission to manufacture and provide telecommunications 
        equipment, and to manufacture customer premises equipment, at 
        any time after that determination is made, subject to the 
        requirements of this section and the regulations prescribed, 
        except that neither a Bell operating company nor any of its 
        affiliates may engage in such manufacturing in conjunction with 
        a Bell operating company not so affiliated or any of its 
        affiliates.
            ``(2) Certain research and design arrangements; royalty 
        agreements.--Upon adoption of rules by the Commission under 
        section 252, a Bell operating company may--
                    ``(A) engage in research and design activities 
                related to manufacturing, and
                    ``(B) enter into royalty agreements with 
                manufacturers of telecommunications equipment.
    ``(b) Separate Affiliate; Safeguards.--Any manufacturing or 
provision of equipment authorized under subsection (a) shall be 
conducted in accordance with the requirements of section 252.
    ``(c) Protection of Small Telephone Company Interests.--
            ``(1) Equipment to be made available to others.--A 
        manufacturing affiliate of a Bell operating company shall make 
        available, without discrimination or self-preference as to 
        price, delivery, terms, or conditions, to all local exchange 
        carriers, for use with the public telecommunications network, 
        any telecommunications equipment, including software integral 
        to such telecommunications equipment, including upgrades, 
        manufactured by such affiliate if each such purchasing 
        carrier--
                    ``(A) does not manufacture telecommunications 
                equipment or have an affiliate which manufactures 
                telecommunications equipment; or
                    ``(B) agrees to make available, to the Bell 
                operating company that is the parent of the 
                manufacturing affiliate or any of the local exchange 
                carrier affiliates of such Bell company, any 
                telecommunications equipment, including software 
                integral to such telecommunications equipment, 
                including upgrades, manufactured for use with the 
                public telecommunications network by such purchasing 
                carrier or by any entity or organization with which 
                such purchasing carrier is affiliated.
            ``(2) Non-discrimination standards.--
                    ``(A) A Bell operating company and any entity 
                acting on its behalf shall make procurement decisions 
                and award all supply contracts for equipment, services, 
                and software on the basis of open, competitive bidding, 
                and an objective assessment of price, quality, 
                delivery, and other commercial factors.
                    ``(B) A Bell operating company and any entity it 
                owns or otherwise controls, or which is acting on its 
                behalf or on behalf of its affiliate, shall permit any 
                person to participate fully on a non-discriminatory 
                basis in the process of establishing standards and 
                certifying equipment used in or interconnected to the 
                public telecommunications network.
                    ``(C) A Bell operating company shall, consistent 
                with the antitrust laws, engage in joint network 
                planning and design with local exchange carriers 
                operating in the same area of interest. No participant 
                in such planning shall be allowed to delay the 
                introduction of new technology or the deployment of 
                facilities to provide telecommunications services, and 
                agreement with such other carriers shall not be 
                required as a prerequisite for such introduction or 
                deployment. A Bell operating company shall provide, to 
                other local exchange carriers operating in the same 
                area of interest, timely information on the planned 
                deployment of telecommunications equipment, including 
                software integral to such telecommunications equipment 
                and upgrades of that software.
                    ``(D) A manufacturing affiliate of a Bell operating 
                company may not restrict sales to any local exchange 
                carrier of telecommunications equipment, including 
                software integral to the operation of such equipment 
                and related upgrades.
                    ``(E) A Bell operating company and any entity it 
                owns or otherwise controls shall protect the 
                proprietary information submitted with contract bids 
                and in the standards and certification processes from 
                release not specifically authorized by the owner of 
                such information.
    ``(d) Collaboration with Other Manufacturers.--A Bell operating 
company and its affiliates may engage in close collaboration with any 
manufacturer of customer premises equipment or telecommunications 
equipment not affiliated with a Bell operating company during the 
design and development of hardware, software, or combinations thereof 
relating to such equipment.
    ``(e) Information on Protocols and Technical Requirements.--The 
Commission shall prescribe regulations to require that each Bell 
operating company shall 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. Such regulations shall require each such Bell 
company to 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.
    ``(f) Additional Rules and Regulations.--The Commission may 
prescribe such additional rules and regulations as the Commission 
determines are necessary to carry out the provisions of this section, 
and otherwise to prevent discrimination and cross-subsidization in a 
Bell operating company's dealings with its affiliate and with third 
parties.
    ``(g) Administration and Enforcement.--
            ``(1) Commission authority.--For the purposes of 
        administering and enforcing the provisions of this section and 
        the regulations prescribed under this section, the Commission 
        shall have the same authority, power, and functions with 
        respect to any Bell operating company as the Commission has in 
        administering and enforcing the provisions of this title with 
        respect to any common carrier subject to this Act.
            ``(2) Civil actions by injured parties.--Any party injured 
        by an act or omission of a Bell operating company or its 
        manufacturing affiliate which violates the requirements of 
        paragraph (1) or (2) of subsection (c), or the Commission's 
        regulations implementing such paragraphs, may initiate an 
        action in a district court of the United States to recover the 
        full amount of damages sustained in consequence of any such 
        violation and obtain such orders from the court as are 
        necessary to terminate existing violations and to prevent 
        future violations; or such party may seek relief from the 
        Commission pursuant to sections 206 through 209.
    ``(h) Application to Bell Communications Research.--Nothing in this 
section--
            ``(1) provides any authority for Bell Communications 
        Research, or any successor entity, to manufacture or provide 
        telecommunications equipment or to manufacture customer 
        premises equipment; or
            ``(2) prohibits Bell Communications Research, or any 
        successor entity, from engaging in any activity in which it is 
        lawfully engaged on the date of enactment of the 
        Telecommunications Act of 1995, including providing a 
        centralized organization for the provision of engineering, 
        administrative, and other services (including serving as a 
        single point of contact for coordination of the Bell operating 
        companies to meet national security and emergency preparedness 
        requirements).
    ``(i) Definitions.--As used in this section--
            ``(1) The term `customer premises equipment' means 
        equipment employed on the premises of a person (other than a 
        carrier) to originate, route, or terminate telecommunications.
            ``(2) The term `manufacturing' has the same meaning as such 
        term has in the Modification of Final Judgment.
            ``(3) The term `telecommunications equipment' means 
        equipment, other than customer premises equipment, used by a 
        carrier to provide telecommunications services.''.
    (b) Effect on Pre-existing Manufacturing Authority.--Nothing in 
this section, or in section 256 of the Communications Act of 1934 as 
added by this section, prohibits any Bell operating company from 
engaging, directly or through any affiliate, in any manufacturing 
activity in which any Bell operating company or affiliate was 
authorized to engage on the date of enactment of this Act.

SEC. 223. EXISTING ACTIVITIES.

    Nothing in this Act, or any amendment made by this Act, prohibits a 
Bell operating company from engaging, at any time after the date of 
enactment of this Act, in any activity 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 such order was entered on or before the date of enactment 
of this Act.

SEC. 224. ENFORCEMENT.

    (a) In General.--Part II of title II (47 U.S.C. 251 et seq.), as 
added by this Act, is amended by inserting after section 256 the 
following:

``SEC. 257. ENFORCEMENT.

    ``(a) In General.--In addition to any penalty, fine, or other 
enforcement remedy under this Act, the failure by a telecommunications 
carrier to implement the requirements of section 251 or 255, including 
a failure to comply with the terms of an interconnection agreement 
approved under section 251, is punishable by a civil penalty of not to 
exceed $1,000,000 per offense. Each day of a continuing offense shall 
be treated as a separate violation for purposes of levying any penalty 
under this subsection.
    ``(b) Noncompliance with Interconnection or Separate Subsidiary 
Requirements.--
            ``(1) A Bell operating company that repeatedly, knowingly, 
        and without reasonable cause fails to implement an 
        interconnection agreement approved under section 251, to comply 
        with the requirements of such agreement after implementing 
        them, or to comply with the separate affiliate requirements of 
        this part may be fined up to $500,000,000 by a district court 
        of the United States of competent jurisdiction.
            ``(2) A Bell operating company that repeatedly, knowingly, 
        and without reasonable cause fails to meet its obligations 
        under section 255 for the provision of interLATA service may 
        have its authority to provide any service suspended if its 
        right to provide that service is conditioned upon its meeting 
        those obligations.
    ``(c) Enforcement by Private Right of Action.--
            ``(1) Damages.--Any person who is injured in its business 
        or property by reason of a violation of section 251 or 255 may 
        bring a civil action in any district court of the United States 
        in the district in which the defendant resides or is found or 
        has an agent, without respect to the amount in controversy.
            ``(2) Interest.--The court may award under this section, 
        pursuant to a motion by such person promptly made, simple 
        interest on actual damages for the period beginning on the date 
        of service of such person's pleading setting forth a claim 
        under this title and ending on the date of judgment, or for any 
        shorter period therein, if the court finds that the award of 
        such interest for such period is just in the circumstances.
    ``(d) Payment of Civil Penalties, Damages, or Interest.--No civil 
penalties, damages, or interest assessed against any local exchange 
carrier as a result of a violation referred to in this section will be 
charged directly or indirectly to that company's rate payers.''.
    (b) Certain Broadcasts.--Section 1307(a)(2) of title 18, United 
States Code, is amended--
            (1) by striking ``or'' after the semicolon at the end of 
        subparagraph (A);
            (2) by striking the period at the end of subparagraph (B) 
        and inserting a semicolon and ``or''; and
            (3) by adding at the end thereof the following:
                    ``(C) conducted by a commercial organization and is 
                contained in a publication published in a State in 
                which such activities or the publication of such 
                activities are authorized or not otherwise prohibited, 
                or broadcast by a radio or television station licensed 
                in a State in which such activities or the broadcast of 
                such activities are authorized or not otherwise 
                prohibited.''.

SEC. 225. ALARM MONITORING SERVICES.

    Part II of title II (47 U.S.C. 251 et seq.), as added by this Act, 
is amended by inserting after section 257 the following new section:

``SEC. 258. REGULATION OF ENTRY INTO ALARM MONITORING SERVICES.

    ``(a) In General.--Except as provided in this section, a Bell 
operating company, or any affiliate of that company, may not provide 
alarm monitoring services for the protection of life, safety, or 
property. A Bell operating company may transport alarm monitoring 
service signals on a common carrier basis only.
    ``(b) Authority To Provide Alarm Monitoring Services.--Beginning 4 
years after the date of enactment of the Telecommunications Act of 
1995, a Bell operating company may provide alarm monitoring services 
for the protection of life, safety, or property if it has been 
authorized to provide interLATA services under section 255 unless the 
Commission finds that the provision of alarm monitoring services by 
such company is not in the public interest. The Commission may not find 
that provision of alarm monitoring services by a Bell operating company 
is in the public interest until it finds that it has the capability 
effectively to enforce any requirements, limitations, or conditions 
that may be placed upon a Bell operating company in the provision of 
alarm monitoring services, including the regulations prescribed under 
subsection (c).
    ``(c) Regulations Required.--
            ``(1) Not later than 1 year after the date of enactment of 
        the Telecommunications Act of 1995, the Commission shall 
        prescribe regulations--
                    ``(A) to establish such requirements, limitations, 
                or conditions as are--
                            ``(i) necessary and appropriate in the 
                        public interest with respect to the provision 
                        of alarm monitoring services by Bell operating 
                        companies and their affiliates, and
                            ``(ii) effective at such time as a Bell 
                        operating company or any of its subsidiaries or 
                        affiliates is authorized to provide alarm 
                        monitoring services; and
                    ``(B) to establish procedures for the receipt and 
                review of complaints concerning violations by such 
                companies of such regulations, or of any other 
                provision of this Act or the regulations thereunder, 
                that result in material financial harm to a provider of 
                alarm monitoring services.
            ``(2) A Bell operating company, its affiliates, and any 
        local exchange carrier are prohibited from recording or using 
        in any fashion the occurrence or contents of calls received by 
        providers of alarm monitoring services for the purposes of 
        marketing such services on behalf of the Bell operating 
        company, any of its affiliates, the local exchange carrier, or 
        any other entity. Any regulations necessary to enforce this 
        paragraph shall be issued initially within 6 months after the 
        date of enactment of the Telecommunications Act of 1995.
            ``(d) Expedited Consideration Of Complaints.--The 
        procedures established under subsection (c) shall ensure that 
        the Commission will make a final determination with respect to 
        any complaint described in such subsection within 120 days 
        after receipt of the complaint. If the complaint contains an 
        appropriate showing that the alleged violation occurred, as 
        determined by the Commission in accordance with such 
        regulations, the Commission shall, within 60 days after receipt 
        of the complaint, issue a cease and desist order to prevent the 
        Bell operating company and its subsidiaries and affiliates from 
        continuing to engage in such violation pending such final 
        determination.
    ``(e) Remedies.--The Commission may use any remedy available under 
title V of this Act to terminate and to impose sanctions on violations 
described in subsection (c). Such remedies may include, if the 
Commission determines that such violation was willful or repeated, 
ordering the Bell operating company or its affiliate to cease offering 
alarm monitoring services.
    ``(f) Savings Provision.--Subsections (a) and (b) do not prohibit 
or limit the provision of alarm monitoring services by a Bell operating 
company or an affiliate that was engaged in providing those services as 
of June 1, 1995, to the extent that such company--
            ``(1) continues to provide those services through the 
        affiliate through which it was providing them on that date; and
            ``(2) does not acquire, directly or indirectly, an equity 
        interest in another entity engaged in providing alarm 
        monitoring services.
    ``(g) Alarm Monitoring Services Defined.--As used in this section, 
the term `alarm monitoring services' means services that detect threats 
to life, safety, or property by burglary, fire, vandalism, bodily 
injury, or other emergency through the use of devices that transmit 
signals to a central point in a customer's residence, place of 
business, or other fixed premises which--
            ``(1) retransmits such signals to a remote monitoring 
        center by means of telecommunications facilities of the Bell 
        operating company and any subsidiary or affiliate; and
            ``(2) serves to alert persons at the monitoring center of 
        the need to inform customers, other persons, or police, fire, 
        rescue, or other security or public safety personnel of the 
        threat at such premises.
Such term does not include medical monitoring devices attached to 
individuals for the automatic surveillance of ongoing medical 
conditions.''.

SEC. 226. NONAPPLICABILITY OF MODIFICATION OF FINAL JUDGMENT.

    Notwithstanding any other provision of law or of any judicial 
order, no person shall be subject to the provisions of the Modification 
of Final Judgment solely by reason of having acquired commercial mobile 
service or private mobile service assets or operations previously owned 
by a Bell operating company or an affiliate of a Bell operating 
company.

                    TITLE III--AN END TO REGULATION

SEC. 301. TRANSITION TO COMPETITIVE PRICING.

    (a) Pricing Flexibility.--
            (1) In general.--The Commission and the States shall 
        provide to telecommunications carriers price flexibility in the 
        rates charged consumers for the provision of telecommunications 
        services within one year after the date of enactment of this 
        Act. The Commission or a State may establish the rate consumers 
        may be charged for services included in the definition of 
        universal service, as well as the contribution, if any, that 
        all carriers must contribute for the preservation and 
        advancement of universal service. Pricing flexibility 
        implemented pursuant to this section for the purpose of 
        allowing a regulated telecommunications provider to respond to 
        competition by repricing services subject to competition shall 
        not have the effect of using noncompetitive services to 
        subsidize competitive services.
            (2) Consumer protection.--The Commission and the States 
        shall ensure that rates for telephone service remain just, 
        reasonable, and affordable as competition develops for 
        telephone exchange service and telephone exchange access 
        service. Until sufficient competition exists in a market, the 
        Commission or a State may establish the rate that a carrier may 
        charge for any such service if such rate is necessary for the 
        protection of consumers. Any such rate shall cease to be 
        regulated whenever the Commission or a State determines that it 
        is no longer necessary for the protection of consumers. The 
        Commission shall establish cost allocation guidelines for 
        facilities owned by an essential telecommunications carrier 
        that are used for the provision of both services included in 
        the definition of universal service and video programming sold 
        by such carrier directly to subscribers, if such allocation is 
        necessary for the protection of consumers.
            (3) Rate-of-return regulation eliminated.--
                    (A) In instituting the price flexibility required 
                under paragraph (1) the Commission and the States shall 
                establish alternative forms of regulation for Tier 1 
                telecommunications carriers that do not include 
                regulation of the rate of return earned by such carrier 
                as part of a plan that provides for any or all of the 
                following--
                            (i) the advancement of competition in the 
                        provision of telecommunications services;
                            (ii) improvements in productivity;
                            (iii) improvements in service quality;
                            (iv) measures to ensure customers of non-
                        competitive services do not bear the risks 
                        associated with the provision of competitive 
                        services;
                            (v) enhanced telecommunications services 
                        for educational institutions; or
                            (vi) any other measures Commission or a 
                        State, as appropriate, determines to be in the 
                        public interest.
                    (B) The Commission or a State, as appropriate, may 
                apply such alternative forms of regulation to any other 
                telecommunications carrier that is subject to rate of 
                return regulation under this Act.
                    (C) Any such alternative form of regulation--
                            (i) shall be consistent with the objectives 
                        of preserving and advancing universal service, 
                        guaranteeing high quality service, ensuring 
                        just, reasonable, and affordable rates, and 
                        encouraging economic efficiency; and
                            (ii) shall meet such other criteria as the 
                        Commission or a State, as appropriate, finds to 
                        be consistent with the public interest, 
                        convenience, and necessity.
                    (D) Nothing in this section shall prohibit the 
                Commission, for interstate services, and the States, 
                for intrastate services, from considering the 
                profitability of telecommunications carriers when using 
                alternative forms of regulation other than rate of 
                return regulation (including price regulation and 
                incentive regulation) to ensure that regulated rates 
                are just and reasonable.
    (b) Transition Plan Required.--If the Commission or a State adopts 
rules for the distribution of support payments under section 253 of the 
Communications Act of 1934, as amended by this Act, such rules shall 
include a transition plan to allow essential telecommunications 
carriers to provide for an orderly transition from the universal 
service support mechanisms in existence upon the date of enactment of 
this Act and the support mechanisms established by the Commission and 
the States under this Act or the Communications Act of 1934 as amended 
by this Act. Any such transition plan shall--
            (1) provide a phase-in of the price flexibility 
        requirements under subsection (a) for an essential 
        telecommunications carrier that is also a rural telephone 
        company; and
            (2) require the United States Government and the States, 
        where permitted by law, to modify any regulatory requirements 
        (including conditions for the repayment of loans and the 
        depreciation of assets) applicable to carriers designated as 
        essential telecommunications carriers in order to more 
        accurately reflect the conditions that would be imposed in a 
        competitive market for similar assets or services.
    (c) Duty to Provide Subscriber List Information.--
            (1) In general.--A carrier that provides local exchange 
        telephone 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 
        requesting such information for the purpose of publishing 
        directories in any format.
            (2) Subscriber list information defined.--As used in this 
        subsection, the term ``subscriber list information'' means any 
        information--
                    (A) identifying the listed names of subscribers of 
                a carrier and such subscribers' listed telephone 
                numbers, addresses, or primary advertising 
                classifications, as such classifications are assigned 
                at the time of the establishment of service, or any 
                combination of such names, numbers, addresses, or 
                classifications; and
                    (B) that the carrier or an affiliate has published, 
                caused to be published, or accepted for publication in 
                a directory in any format.
    (d) Confidentiality.--A telecommunications carrier has a duty to 
protect the confidentiality of proprietary information of, and relating 
to, other common carriers and customers, including common carriers 
reselling the telecommunications services provided by a 
telecommunications carrier. A telecommunications carrier that receives 
such information from another carrier for purposes of provisioning, 
billing, or facilitating the resale of its service shall use such 
information only for such purpose, and shall not use such information 
for its own marketing efforts. Nothing in this subsection prohibits a 
carrier from using customer information obtained from its customers, 
either directly or indirectly through its agents--
            (1) to provide, market, or bill for its services; or
            (2) to perform credit evaluations on existing or potential 
        customers.
    (e) Regulatory Relief.--
            (1) Streamlined procedures for changes in charges, 
        classifications, regulations, or practices.--
                    (A) Section 204(a) (47 U.S.C. 204(a)) is amended--
                            (i) by striking ``12 months'' the first 
                        place it appears in paragraph (2)(A) and 
                        inserting ``5 months'';
                            (ii) by striking ``effective,'' and all 
                        that follows in paragraph (2)(A) and inserting 
                        ``effective.''; and
                            (iii) by adding at the end thereof the 
                        following:
            ``(3) A local exchange carrier may file with the Commission 
        a new or revised charge, classification, regulation, or 
        practice on a streamlined basis. Any such charge, 
        classification, regulation, or practice shall be deemed lawful 
        and shall be effective 7 days (in the case of a reduction in 
        rates) or 15 days (in the case of an increase in rates) after 
        the date on which it is filed with the Commission unless the 
        Commission takes action under paragraph (1) before the end of 
        that 7-day or 15-day period, as is appropriate.''.
                    (B) Section 208(b) (47 U.S.C. 208(b)) is amended--
                            (i) by striking ``12 months'' the first 
                        place it appears in paragraph (1) and inserting 
                        ``5 months''; and
                            (ii) by striking ``filed,'' and all that 
                        follows in paragraph (1) and inserting 
                        ``filed.''.
            (2) Extensions of lines under section 214; armis reports.--
        Notwithstanding section 305, the Commission shall permit any 
        local exchange carrier--
                    (A) to be exempt from the requirements of section 
                214 of the Communications Act of 1934 for the extension 
                of any line; and
                    (B) to file cost allocation manuals and ARMIS 
                reports annually, to the extent such carrier is 
                required to file such manuals or reports.
            (3) Forebearance authority not limited.--Nothing in this 
        subsection shall be construed to limit the authority of the 
        Commission or a State to waive, modify, or forebear from 
        applying any of the requirements to which reference is made in 
        paragraph (1) under any other provision of this Act or other 
        law.

SEC. 302. BIENNIAL REVIEW OF REGULATIONS; ELIMINATION OF UNNECESSARY 
              REGULATIONS AND FUNCTIONS.

    (a) Biennial Review.--Part II of title II (47 U.S.C. 251 et seq.), 
as added by this Act, is amended by inserting after section 258 the 
following new section:

``SEC. 259. REGULATORY REFORM.

    ``(a) Biennial Review of Regulations.--In every odd-numbered year 
(beginning with 1997), the Commission, with respect to its regulations 
under this Act, and a Federal-State Joint Board established under 
section 410, for State regulations--
            ``(1) shall review all regulations issued under this Act, 
        or under State law, in effect at the time of the review that 
        apply to operations or activities of providers of any 
        telecommunications services; and
            ``(2) shall determine whether any such regulation is no 
        longer necessary in the public interest as the result of 
        meaningful economic competition between the providers of such 
        service.
    ``(b) Effect of Determination.--The Commission shall repeal any 
regulation it determines to be no longer necessary in the public 
interest. The Joint Board shall notify the Governor of any State of any 
State regulation it determines to be no longer necessary in the public 
interest.
    ``(c) Classification of Carriers.--In classifying carriers 
according to 47 CFR 32.11 and in establishing reporting requirements 
pursuant to 47 CFR part 43 and 47 CFR 64.903, the Commission shall 
adjust the revenue requirements to account for inflation as of the 
release date of the Commission's Report and Order in CC Docket No. 91-
141, and annually thereafter. This subsection shall take effect on the 
date of enactment of the Telecommunications Act of 1995.''.
    (b) Elimination of Unnecessary Commission Regulations and 
Functions.--
            (1) Repeal setting of depreciation rates.--The first 
        sentence of section 220(b) (47 U.S.C. 220(b)) is amended by 
        striking ``shall prescribe for such carriers'' and inserting 
        ``may prescribe, for such carriers as it determines to be 
        appropriate,''.
            (2) Use of independent auditors.--Section 220(c) (47 U.S.C. 
        220(c)) is amended by adding at the end thereof the following: 
        ``The Commission may obtain the services of any person licensed 
        to provide public accounting services under the law of any 
        State to assist with, or conduct, audits under this section. 
        While so employed or engaged in conducting an audit for the 
        Commission under this section, any such person shall have the 
        powers granted the Commission under this subsection and shall 
        be subject to subsection (f) in the same manner as if that 
        person were an employee of the Commission.''.
            (3) Simplification of federal-state coordination process.--
        The Commission shall simplify and expedite the Federal-State 
        coordination process under section 410 of the Communications 
        Act of 1934.
            (4) Privatization of ship radio inspections.--Section 385 
        (47 U.S.C. 385) is amended by adding at the end thereof the 
        following: ``In accordance with such other provisions of law as 
        apply to Government contracts, the Commission may enter into 
        contracts with any person for the purpose of carrying out such 
        inspections and certifying compliance with those requirements, 
        and may, as part of any such contract, allow any such person to 
        accept reimbursement from the license holder for travel and 
        expense costs of any employee conducting an inspection or 
        certification.''.
            (5) Modification of construction permit requirement.--
        Section 319(d) (47 U.S.C. 319(d)) is amended by striking the 
        third sentence and inserting the following: ``The Commission 
        may waive the requirement for a construction permit with 
        respect to a broadcasting station in circumstances in which it 
        deems prior approval to be unnecessary. In those circumstances, 
        a broadcaster shall file any related license application within 
        10 days after completing construction.''.
            (6) Limitation on silent station authorizations.--Section 
        312 (47 U.S.C. 312) is amended by adding at the end the 
        following:
    ``(g) If a broadcasting station fails to transmit broadcast signals 
for any consecutive 12-month period, then the station license granted 
for the operation of that broadcast station expires at the end of that 
period, notwithstanding any provision, term, or condition of the 
license to the contrary.''.
            (7) Expediting instructional television fixed service 
        processing.--The Commission shall delegate, under section 5(c) 
        of the Communications Act of 1934, the conduct of routine 
        instructional television fixed service cases to its staff for 
        consideration and final action.
            (8) Delegation of equipment testing and certification to 
        private laboratories.--Section 302 (47 U.S.C. 302) is amended 
        by adding at the end the following:
    ``(e) 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.''.
            (9) Making license modification uniform.--Section 303(f) 
        (47 U.S.C. 303(f)) is amended by striking ``unless, after a 
        public hearing,'' and inserting ``unless''.
            (10) Permit operation of domestic ship and aircraft radios 
        without license.--Section 307(e) (47 U.S.C. 307(e)) is amended 
        by--
                    (A) striking ``service and the citizens band radio 
                service'' in paragraph (1) and inserting ``service, 
                citizens band radio service, domestic ship radio 
                service, domestic aircraft radio service, and personal 
                radio service''; and
                    (B) striking ``service' and `citizens band radio 
                service''' in paragraph (3) and inserting ``service', 
                `citizens band radio service', `domestic ship radio 
                service', `domestic aircraft radio service', and 
                `personal radio service'''.
            (11) Expedited licensing for fixed microwave service.--
        Section 309(b)(2) (47 U.S.C. 309(b)(2)) is amended by striking 
        subparagraph (A) and redesignating subparagraphs (B) through 
        (G) as (A) through (F), respectively.
            (12) Eliminate fcc jurisdiction over government-owned ship 
        radio stations.--
                    (A) Section 305 (47 U.S.C. 305) is amended by 
                striking subsection (b) and redesignating subsections 
                (c) and (d) as (b) and (c), respectively.
                    (B) Section 382(2) (47 U.S.C. 382(2)) is amended by 
                striking ``except a vessel of the United States 
                Maritime Administration, the Inland and Coastwise 
                Waterways Service, or the Panama Canal Company,''.
            (13) Modification of amateur radio examination 
        procedures.--
                    (A) Section 4(f)(H)(N) (47 U.S.C. 4(f)(4)(B)) is 
                amended by striking ``transmissions, or in the 
                preparation or distribution of any publication used in 
                preparation for obtaining amateur station operator 
                licenses,'' and inserting ``transmission''.
                    (B) The Commission shall modify its rules governing 
                the amateur radio examination process by eliminating 
                burdensome record maintenance and annual financial 
                certification requirements.
            (14) Streamline non-broadcast radio license renewals.--The 
        Commission shall modify its rules under section 309 of the 
        Communications Act of 1934 (47 U.S.C. 309) relating to renewal 
        of nonbroadcast radio licenses so as to streamline or eliminate 
        comparative renewal hearings where such hearings are 
        unnecessary or unduly burdensome.

SEC. 303. REGULATORY FORBEARANCE.

    Part II of title II (47 U.S.C. 251 et seq.), as added by this Act, 
is amended by inserting after section 259 the following new section:

``SEC. 260. COMPETITION IN PROVISION OF TELECOMMUNICATIONS SERVICE.

    ``(a) Regulatory flexibility.--Notwithstanding section 332(c)(1)(A) 
of this Act, the Commission shall forbear from applying any regulation 
or any provision of this Act to a telecommunications carrier or 
service, or class of carriers or services, in any or some of its or 
their geographic markets if the Commission determines that--
            ``(1) enforcement of such regulation or provision is not 
        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 the preservation 
        and advancement of universal service; and
            ``(3) forbearance from applying such regulation or 
        provision is consistent 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 regulation or provision 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) End of Regulation Process.--Any telecommunications carrier, 
or class of telecommunications carriers, may submit a petition to the 
Commission requesting that the Commission exercise the authority 
granted under this section with respect to that carrier or those 
carriers, or any service offered by that carrier or carriers. Any such 
petition shall be deemed granted if the Commission does not deny the 
petition for failure to meet the requirements for forebearance under 
subsection (a) within 90 days after the Commission receives it, unless 
the 90-day period is extended by the Commission. The Commission may 
extend the initial 90-day period by an additional 60 days if the 
Commission finds that an extension is necessary to meet the 
requirements of subsection (a). The Commission may grant or deny a 
petition in whole or in part and shall explain its decision in writing.
    ``(d) Limitation.--Except as provided in section 251(i)(3), the 
Commission may not waive the unbundling requirements of section 251(b) 
or 255(b)(2) under subsection (a) until it determines that those 
requirements have been fully implemented.''.

SEC. 304. ADVANCED TELECOMMUNICATIONS INCENTIVES.

    (a) In General.--The Commission and each State commission with 
regulatory jurisdiction over telecommunications services shall 
encourage the deployment on a reasonable and timely basis of advanced 
telecommunications capability to all Americans (including, in 
particular, elementary and secondary schools and classrooms) by 
utilizing, in a manner consistent with the public interest, 
convenience, and necessity, price cap regulation, regulatory 
forbearance, or other regulating methods that remove barriers to 
infrastructure investment.
    (b) Inquiry.--The Commission shall, within 2 years after the date 
of enactment of this Act, and regularly thereafter, initiate a notice 
of inquiry concerning the availability of advanced telecommunications 
capability to all Americans (including, in particular, elementary and 
secondary schools and classrooms) and shall complete the inquiry within 
180 days after its initiation. In the inquiry, the Commission shall 
determine whether advanced telecommunications capability is being 
deployed to all Americans in a reasonable and timely fashion. If the 
Commission's determination is negative, it shall take immediate action 
under this section, and it may preempt State commissions that fail to 
act to ensure such availability.
    (c) Definitions.--For purposes of this section--
            (1) Communications act terms.--Any term used in this 
        section which is defined in the Communications Act of 1934 
        shall have the same meaning as it has in that Act.
            (2) Advanced telecommunications capability.--The term 
        ``advanced telecommunications capability'' means high-speed, 
        switched, broadband telecommunications capability that enables 
        users to originate and receive high-quality voice, data, 
        graphics, and video telecommunications.
            (3) Elementary and secondary schools.--The term 
        ``elementary and secondary schools'' means elementary schools 
        and secondary schools, as defined in paragraphs (14) and (25), 
        respectively, of section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).

SEC. 305. REGULATORY PARITY.

    Within 3 years after the date of enactment of this Act, and 
periodically thereafter, the Commission shall--
            (1) issue such modifications or terminations of the 
        regulations applicable to persons offering telecommunications 
        or information services under title II, III, or VI of the 
        Communications Act of 1934 as are necessary to implement the 
        changes in such Act made by this Act;
            (2) in the regulations that apply to integrated 
        telecommunications service providers, take into account the 
        unique and disparate histories associated with the development 
        and relative market power of such providers, making such 
        modifications and adjustments as are necessary in the 
        regulation of such providers as are appropriate to enhance 
        competition between such providers in light of that history; 
        and
            (3) provide for periodic reconsideration of any 
        modifications or terminations made to such regulations, with 
        the goal of applying the same set of regulatory requirements to 
        all integrated telecommunications service providers, regardless 
        of which particular telecommunications or information service 
        may have been each provider's original line of business.

SEC. 306. 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. 307. TELECOMMUNICATIONS NUMBERING ADMINISTRATION.

    Part II of title II (47 U.S.C. 251 et seq.), as added by this Act, 
is amended by inserting after section 260 the following new section:

``SEC. 261. TELECOMMUNICATIONS NUMBERING ADMINISTRATION.

    ``(a) Interim Number Portability.--In connection with any 
interconnection agreement reached under section 251 of this Act, a 
local exchange carrier shall make available interim telecommunications 
number portability, upon request, beginning on the date of enactment of 
the Telecommunications Act of 1995.
    ``(b) Final Number Portability.--In connection with any 
interconnection agreement reached under section 251 of this Act, a 
local exchange carrier shall make available final telecommunications 
number portability, upon request, when the Commission determines that 
final telecommunications number portability is technically feasible.
    ``(c) Neutral Administration of Numbering Plans.--
            ``(1) Nationwide neutral number system compliance.-- A 
        telecommunications carrier providing telephone exchange service 
        shall comply with the guidelines, plan, or rules established by 
        an impartial entity designated or created by the Commission for 
        the administration of a nationwide neutral number system.
            ``(2) Overlay of area codes not permitted.--All 
        telecommunications carriers providing telephone exchange 
        service in the same telephone service area shall be permitted 
        to use the same numbering plan area code under such guideline, 
        plan, or rules.
    ``(d) Costs.--The cost of establishing neutral number 
administration arrangements and number portability shall be borne by 
all telecommunications carriers on a competitively neutral basis as 
determined by the Commission.''.

SEC. 308. ACCESS BY PERSONS WITH DISABILITIES.

    (a) In General.--Part II of title II (47 U.S.C. 251 et seq.), as 
added by this Act, is amended by inserting after section 261 the 
following new section:

``SEC. 262. ACCESS BY PERSONS WITH DISABILITIES.

    ``(a) Definitions.--As used in this section--
            ``(1) Disability.--The term `disability' has the meaning 
        given to it by section 3(2)(A) of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12102(2)(A)).
            ``(2) Readily achievable.--The term `readily achievable' 
        has the meaning given to it by section 301(9) of that Act (42 
        U.S.C. 12181(9)).
    ``(b) Manufacturing.--A manufacturer of telecommunications 
equipment and customer premises equipment shall ensure that the 
equipment is designed, developed, and fabricated to be accessible to 
and usable by individuals with disabilities, if readily achievable.
    ``(c) Telecommunications Services.--A provider of 
telecommunications service shall ensure that the service is accessible 
to and usable by individuals with disabilities, if readily achievable.
    ``(d) Compatibility.--Whenever the requirements of subsections (b) 
and (c) are not readily achievable, such a manufacturer or provider 
shall ensure that the equipment or service is compatible with existing 
peripheral devices or specialized customer premises equipment commonly 
used by individuals with disabilities to achieve access, if readily 
achievable.
    ``(e) Guidelines.--Within 18 months after the date of enactment of 
the Telecommunications Act of 1995, the Architectural and 
Transportation Barriers Compliance Board shall develop guidelines for 
accessibility of telecommunications equipment and customer premises 
equipment in conjunction with the Commission, the National 
Telecommunications and Information Administration and the National 
Institute of Standards and Technology. The Board shall review and 
update the guidelines periodically.
    ``(f) Closed Captioning.--
            ``(1) In general.--The Commission shall ensure that--
                    ``(A) video programming is accessible through 
                closed captions, if readily achievable, except as 
                provided in paragraph (2); and
                    ``(B) video programming providers or owners 
                maximize the accessibility of video programming 
                previously published or exhibited through the provision 
                of closed captions, if readily achievable, except as 
                provided in paragraph (2).
            ``(2) Exemptions.--Notwithstanding paragraph (1)--
                    ``(A) the Commission may exempt programs, classes 
                of programs, locally produced programs, providers, 
                classes of providers, or services for which the 
                Commission has determined that the provision of closed 
                captioning would not be readily achievable to the 
                provider or owner of such programming;
                    ``(B) 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 a binding contract in effect 
                on the date of enactment of the Telecommunications Act 
                of 1995 for the remaining term of that contract 
                (determined without regard to any extension of such 
                term), except that nothing in this subparagraph 
                relieves a video programming provider of its obligation 
                to provide services otherwise required by Federal law; 
                and
                    ``(C) a provider of video programming or a program 
                owner may petition the Commission for an exemption from 
                the requirements of this section, and the Commission 
                may grant such a petition upon a showing that the 
                requirements contained in this section would not be 
                readily achievable.
    ``(g) Regulations.--The Commission shall, not later than 24 months 
after the date of enactment of the Telecommunications Act of 1995, 
prescribe regulations to implement this section. The regulations shall 
be consistent with the guidelines developed by the Architectural and 
Transportation Barriers Compliance Board in accordance with subsection 
(e).
    ``(h) Enforcement.--The Commission shall enforce this section. The 
Commission shall resolve, by final order, a complaint alleging a 
violation of this section within 180 days after the date on which the 
complaint is filed with the Commission.''.
    (b) Video Description.--Within 18 months after the date of 
enactment of this Act, the Commission shall commence a study of the 
feasibility of requiring the use of video descriptions on video 
programming in order to ensure the accessibility of video programming 
to individuals with visual impairments. For purposes of this 
subsection, the term ``video description'' means the insertion of audio 
narrative descriptions of a television program's key visual elements 
into natural pauses between the program's dialogue.

SEC. 309. RURAL MARKETS.

    Part II of title II (47 U.S.C. 251 et seq.), as added by this Act, 
is amended by inserting after section 262 the following new section:

``SEC. 263. RURAL MARKETS.

    ``(a) State Authority in Rural Markets.--Except as provided in 
section 251(i)(3), a State may not waive or modify any requirements of 
section 251, but may adopt statutes or regulations that are no more 
restrictive than--
            ``(1) to require an enforceable commitment by each 
        competing provider of telecommunications service to offer 
        universal service comparable to that offered by the rural 
        telephone company currently providing service in that service 
        area, and to make such service available within 24 months of 
        the approval date to all consumers throughout that service area 
        on a common carrier basis, either using the applicant's 
        facilities or through its own facilities and resale of services 
        using another carrier's facilities (including the facilities of 
        the rural telephone company), and subject to the same terms, 
        conditions, and rate structure requirements as those applicable 
        to the rural telephone company currently providing universal 
        service;
            ``(2) to require that the State must approve an application 
        by a competing telecommunications carrier to provide services 
        in a market served by a rural telephone company and that 
        approval be based on sufficient written public findings and 
        conclusions to demonstrate that such approval is in the public 
        interest and that there will not be a significant adverse 
        impact on users of telecommunications services or on the 
        provision of universal service;
            ``(3) to encourage the development and deployment of 
        advanced telecommunications and information infrastructure and 
        services in rural areas; or
            ``(4) to protect the public safety and welfare, ensure the 
        continued quality of telecommunications and information 
        services, or safeguard the rights of consumers.
    ``(b) Preemption.--Upon a proper showing, the Commission may 
preempt any State statute or regulation that the Commission finds to be 
inconsistent with the Commission's regulations implementing this 
section, or an arbitrary or unreasonably discriminatory application of 
such statute or regulation. The Commission shall act upon any bona fide 
petition filed under this subsection within 180 days of receiving such 
petition. Pending such action, the Commission may, in the public 
interest, suspend or modify application of any statute or regulation to 
which the petition applies.''.

SEC. 310. TELECOMMUNICATIONS SERVICES FOR HEALTH CARE PROVIDERS FOR 
              RURAL AREAS, EDUCATIONAL PROVIDERS, AND LIBRARIES.

    Part II of title II (47 U.S.C. 251 et seq.), as added by this Act, 
is amended by inserting after section 263 the following:

``SEC. 264. TELECOMMUNICATIONS SERVICES FOR CERTAIN PROVIDERS.

    ``(a) In General.--
            ``(1) Health care providers for rural areas.--A 
        telecommunications carrier shall, upon receiving a bona fide 
        request, provide telecommunications services which are 
        necessary for the provision of health care services, including 
        instruction relating to such services, at rates that are 
        reasonably comparable to rates charged for similar services in 
        urban areas to any public or nonprofit health care provider 
        that serves persons who reside in rural areas. A 
        telecommunications carrier providing service pursuant to this 
        paragraph shall be entitled to have an amount equal to the 
        difference, if any, between the price for services provided to 
        health care providers for rural areas and the price for similar 
        services provided to other customers in comparable urban areas 
        treated as a service obligation as a part of its obligation to 
        participate in the mechanisms to preserve and advance universal 
        service under section 253(c).
            ``(2) Educational providers and libraries.--All 
        telecommunications carriers serving a geographic area shall, 
        upon a bona fide request, provide to elementary schools, 
        secondary schools, and libraries universal services (as defined 
        in section 253) that permit such schools and libraries to 
        provide or receive telecommunications services for educational 
        purposes at rates less than the amounts charged for similar 
        services to other parties. The discount shall be an amount that 
        the Commission and the States determine is appropriate and 
        necessary to ensure affordable access to and use of such 
        telecommunications by such entities. A telecommunications 
        carrier providing service pursuant to this paragraph shall be 
        entitled to have an amount equal to the amount of the discount 
        treated as a service obligation as part of its obligation to 
        participate in the mechanisms to preserve and advance universal 
        service under section 253(c).
    ``(b) Universal Service Mechanisms.--The Commission shall include 
consideration of the universal service provided to public institutional 
telecommunications users in any universal service mechanism it may 
establish under section 253.
    ``(c) Advanced Services.--The Commission shall establish rules--
            ``(1) to enhance, to the extent technically feasible and 
        economically reasonable, the availability of advanced 
        telecommunications and information services to all public and 
        nonprofit elementary and secondary school classrooms, health 
        care providers, and libraries;
            ``(2) to ensure that appropriate functional requirements or 
        performance standards, or both, including interconnection 
        standards, are established for telecommunications carriers that 
        connect such public institutional telecommunications users with 
        the public switched network;
            ``(3) to define the circumstances under which a 
        telecommunications carrier may be required to connect its 
        network to such public institutional telecommunications users; 
        and
            ``(4) to address other matters as the Commission may 
        determine.
    ``(d) Definitions.--
            ``(1) Elementary and secondary schools.--The term 
        `elementary and secondary schools' means elementary schools and 
        secondary schools, as defined in paragraphs (14) and (25), 
        respectively, of section 14101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801).
            ``(2) Universal service.--The Commission may in the public 
        interest provide a separate definition of universal service 
        under section 253(b) for application only to public 
        institutional telecommunications users.
            ``(3) Health care provider.--The term `health care 
        provider' means--
                    ``(A) Post-secondary educational institutions, 
                teaching hospitals, and medical schools.
                    ``(B) Community health centers or health centers 
                providing health care to migrants.
                    ``(C) Local health departments or agencies.
                    ``(D) Community mental health centers.
                    ``(E) Not-for-profit hospitals.
                    ``(F) Rural health clinics.
                    ``(G) Consortia of health care providers consisting 
                of one or more entities described in subparagraphs (A) 
                through (F).
            ``(4) Public institutional telecommunications user.--The 
        term `public institutional telecommunications user' means an 
        elementary or secondary school, a library, or a health care 
        provider as those terms are defined in this subsection.
    ``(e) Terms and Conditions.--Telecommunications services and 
network capacity provided under this section may not be sold, resold, 
or otherwise transferred in consideration for money or any other thing 
of value.
    ``(f) Eligibility of Community Users.--No entity listed in this 
section shall be entitled for preferential rates or treatment as 
required by this section, if such entity operates as a for-profit 
business, is a school as defined in section 264(d)(1) with an endowment 
of more than $50,000,000, or is a library not eligible for 
participation in State-based plans for Library Services and 
Construction Act Title III funds.''.

SEC. 311. PROVISION OF PAYPHONE SERVICE AND TELEMESSAGING SERVICE.

    Part II of title II (47 U.S.C. 251 et seq.), as added by this Act, 
is amended by adding after section 264 the following new section:

``SEC. 265. PROVISION OF PAYPHONE SERVICE AND TELEMESSAGING SERVICE.

    ``(a) Nondiscrimination Safeguards.--Any Bell operating company 
that provides payphone service or telemessaging service--
            ``(1) shall not subsidize its payphone service or 
        telemessaging 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 its 
        payphone service or telemessaging service.
    ``(b) Definitions.--As used in this section--
            ``(1) The term `payphone service' means the provision of 
        telecommunications service through public or semi-public pay 
        telephones, and includes the provision of service to inmates in 
        correctional institutions.
            ``(2) The term `telemessaging service' means voice mail and 
        voice storage and retrieval services, any live operator 
        services used to record, transcribe, or relay messages (other 
        than telecommunications relay services), and any ancillary 
        services offered in combination with these services.
    ``(c) Regulations.--Not later than 18 months after the date of 
enactment of the Telecommunications Act of 1995, the Commission shall 
complete a rulemaking proceeding to prescribe regulations to carry out 
this section. In that rulemaking proceeding, the Commission shall 
determine whether, in order to enforce the requirements of this 
section, it is appropriate to require the Bell operating companies to 
provide payphone service or telemessaging service through a separate 
subsidiary that meets the requirements of section 252.''.

SEC. 312. DIRECT BROADCAST SATELLITE.

    (a) DBS Signal Security.--Section 705(e)(4) (47 U.S.C. 605(e)(4)) 
is amended by inserting ``satellite delivered video or audio 
programming intended for direct receipt by subscribers in their 
residences or in their commercial or business premises,'' after 
``programming,''.
    (b) FCC Jurisdiction Over Direct-to-Home Satellite Services.--
Section 303 (47 U.S.C. 303) is amended by adding at the end thereof the 
following new subsection:
    ``(v) Have exclusive jurisdiction to regulate the provision of 
direct-to-home satellite services. For purposes of this subsection, the 
term `direct-to-home satellite services' means the distribution or 
broadcasting of programming or services by satellite directly to the 
subscriber's premises without the use of ground receiving or 
distribution equipment, except at the subscriber's premises, or used in 
the initial uplink process to the direct-to-home satellite.''.

      TITLE IV--OBSCENE, HARRASSING, AND WRONGFUL UTILIZATION OF 
                     TELECOMMUNICATIONS FACILITIES

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Communications Decency Act of 
1995''.

SEC. 402. OBSCENE OR HARASSING USE OF TELECOMMUNICATIONS FACILITIES 
              UNDER THE COMMUNICATIONS ACT OF 1934.

    (a) Offenses.--Section 223 (47 U.S.C. 223) is amended--
            ``(1) by striking subsection (a) and inserting in lieu 
        thereof:
    ``(a) Whoever--
            ``(1) in the District of Columbia or in interstate or 
        foreign communications--
                    ``(A) by means of telecommunications device 
                knowingly--
                            ``(i) makes, creates, or solicits, and
                            ``(ii) initiates the transmission of,
                any comment, request, suggestion, proposal, image, or 
                other communication which is obscene, lewd, lascivious, 
                filthy, or indecent, with intent to annoy, abuse, 
                threaten, or harass another person;
                    ``(B) makes a telephone call or utilizes a 
                telecommunications device, whether or not conversation 
                or communication ensues, without disclosing his 
                identity and with intent to annoy, abuse, threaten, or 
                harass any person at the called number or who receives 
                the communications;
                    ``(C) makes or causes the telephone of another 
                repeatedly or continuously to ring, with intent to 
                harass any person at the called number; or
                    ``(D) makes repeated telephone calls or repeatedly 
                initiates communication with a telecommunications 
                device, during which conversation or communication 
                ensues, solely to harass any person at the called 
                number or who receives the communication;
            ``(2) knowingly permits any telecommunications facility 
        under his control to be used for any activity prohibited by 
        paragraph (1) with the intent that it be used for such 
        activity,
shall be fined not more than $100,000 or imprisoned not more than two 
years, or both.''; and
            (2) by adding at the end the following new subsections:
    ``(d) Whoever--
            ``(1) knowingly within the United States or in foreign 
        communications with the United States by means of 
        telecommunications device makes or makes available any obscene 
        communication in any form including any comment, request, 
        suggestion, proposal, or image regardless of whether the maker 
        of such communication placed the call or initiated the 
        communications; or
            ``(2) knowingly permits any telecommunications facility 
        under such person's control to be used for an activity 
        prohibited by subsection (d)(1) with the intent that it be used 
        for such activity;
shall be fined not more than $100,000 or imprisoned not more than two 
years, or both.
    ``(e) Whoever--
            ``(1) knowingly within the United States or in foreign 
        communications with the United States by means of 
        telecommunications device makes or makes available any indecent 
        communication in any form including any comment, request, 
        suggestion, proposal, image, to any person under 18 years of 
        age regardless of whether the maker of such communication 
        placed the call or initiated the communication; or
            ``(2) knowingly permits any telecommunications facility 
        under such person's control to be used for an activity 
        prohibited by paragraph (1) with the intent that it be used for 
        such activity,
shall be fined not more than $100,000 or imprisoned not more than two 
years, or both.
    ``(f) Defenses to the subsections (a), (d), and (e), restrictions 
on access, judicial remedies respecting restrictions for persons 
providing information services and access to information services--
            ``(1) No person shall be held to have violated subsections 
        (a), (d), or (e) solely for providing access or connection to 
        or from a facility, system, or network over which that person 
        has no control, including related capabilities which are 
        incidental to providing access or connection. This subsection 
        shall not be applicable to a person who is owned or controlled 
        by, or a conspirator with, an entity actively involved in the 
        creation, editing or knowing distribution of communications 
        which violate this section.
            ``(2) No employer shall be held liable under this section 
        for the actions of an employee or agent unless the employee's 
        or agent's conduct is within the scope of his employment or 
        agency and the employer has knowledge of, authorizes, or 
        ratifies the employee's or agent's conduct.
            ``(3) It is a defense to prosecution under subsection (a), 
        (d)(2), or (e) that a person has taken reasonable, effective 
        and appropriate actions in good faith to restrict or prevent 
        the transmission of, or access to a communication specified in 
        such subsections, or complied with procedures as the Commission 
        may prescribe in furtherance of this section. Until such 
        regulations become effective, it is a defense to prosecution 
        that the person has complied with the procedures prescribed by 
        regulation pursuant to subsection (b)(3). Nothing in this 
        subsection shall be construed to treat enhanced information 
        services as common carriage.
            ``(4) No cause of action may be brought in any court or 
        administrative agency against any person on account of any 
        activity which is not in violation of any law punishable by 
        criminal or civil penalty, which activity the person has taken 
        in good faith to implement a defense authorized under this 
        section or otherwise to restrict or prevent the transmission 
        of, or access to, a communication specified in this section.
    ``(g) No State or local government may impose any liability for 
commercial activities or actions by commercial entities in connection 
with an activity or action which constitutes a violation described in 
subsection (a)(2), (d)(2), or (e)(2) that is inconsistent with the 
treatment of those activities or actions under this section: Provided, 
however, That nothing herein shall preclude any State or local 
government from enacting and enforcing complementary oversight, 
liability, and regulatory systems, procedures, and requirements, so 
long as such systems, procedures, and requirements govern only 
intrastate services and do not result in the imposition of inconsistent 
rights, duties or obligations on the provision of interstate services. 
Nothing in this subsection shall preclude any State or local government 
from governing conduct not covered by this section.
    ``(h) Nothing in subsection (a), (d), (e), or (f) or in the 
defenses to prosecution under (a), (d), or (e) shall be construed to 
affect or limit the application or enforcement of any other Federal 
law.
    ``(i) The use of the term `telecommunications device' in this 
section shall not impose new obligations on (one-way) broadcast radio 
or (one-way) broadcast television operators licensed by the Commission 
or (one-way) cable service registered with the Federal Communications 
Commission and covered by obscenity and indecency provisions elsewhere 
in this Act.
    ``(j) Within two years from the date of enactment and every two 
years thereafter, the Commission shall report on the effectiveness of 
this section.''.

SEC. 403. OBSCENE PROGRAMMING ON CABLE TELEVISION.

    Section 639 (47 U.S.C. 559) is amended by striking ``$10,000'' and 
inserting ``$100,000''.

SEC. 404. BROADCASTING OBSCENE LANGUAGE ON RADIO.

    Section 1464 of title 18, United States Code, is amended by 
striking out ``$10,000'' and inserting ``$100,000''.

SEC. 405. SEPARABILITY.

    (a) If any provision of this title, including amendments to this 
title or the application thereof to any person or circumstance is held 
invalid, the remainder of this title and the application of such 
provision to other persons or circumstances shall not be affected 
thereby.

SEC. 406. ADDITIONAL PROHIBITION ON BILLING FOR TOLL-FREE TELEPHONE 
              CALLS.

    Section 228(c)(7) (47 U.S.C. 228(c)(7)) is amended--
            (1) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting a semicolon and ``or''; and
            (3) by adding at the end thereof the following:
                    ``(E) the calling party being assessed, by virtue 
                of being asked to connect or otherwise transfer to a 
                pay-per-call service, a charge for the call.''.

SEC. 407. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.

    Part IV of title VI (47 U.S. C. 551 et seq.) is amended by adding 
at the end the following:

``SEC. 640. SCRAMBLING OF CABLE CHANNELS FOR NONSUBSCRIBERS.

    ``(a) Requirement.--In providing video programming unsuitable for 
children to any subscriber through a cable system, a cable operator 
shall fully scramble or otherwise fully block the video and audio 
portion of each channel carrying such programming upon subscriber 
request and without any charge so that one not a subscriber does not 
receive it.
    ``(b) Definition.--As used in this section, the term `scramble' 
means to rearrange the content of the signal of the programming so that 
the programming cannot be received by persons unauthorized to receive 
the programming.''.

SEC. 408. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE 
              PROGRAMMING.

    (a) Requirement.--Part IV of title VI (47 U.S.C. 551 et seq.), as 
amended by this Act, is further amended by adding at the end the 
following:

``SEC. 641. SCRAMBLING OF SEXUALLY EXPLICIT ADULT VIDEO SERVICE 
              PROGRAMMING.

    ``(a) Requirement.--In providing sexually explicit adult 
programming or other programming that is indecent and harmful to 
children on any channel of its service primarily dedicated to sexually-
oriented programming, a multichannel video programming distributor 
shall fully scramble or otherwise fully block the video and audio 
portion of such channel so that one not a subscriber to such channel or 
programming does not receive it.
    ``(b) Implementation.--Until a multichannel video programming 
distributor complies with the requirement set forth in subsection (a), 
the distributor shall limit the access of children to the programming 
referred to in that subsection by not providing such programming during 
the hours of the day (as determined by the Commission) when a 
significant number of children are likely to view it.
    ``(c) Definition.--As used in this section, the term `scramble' 
means to rearrange the content of the signal of the programming so that 
audio and video portions of the programming cannot be received by 
persons unauthorized to receive the programming.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 30 days after the date of the enactment of this Act.

SEC. 409. CABLE OPERATOR REFUSAL TO CARRY CERTAIN PROGRAMS.

    (a) Public, Educational, and Governmental Channels.--Section 611(e) 
(47 U.S.C. 531(e)) is amended by inserting before the period the 
following: ``, except a cable operator may refuse to transmit any 
public access program or portion of a public access program which 
contains obscenity, indecency, or nudity''.
    (b) Cable Channels for Commercial Use.--Section 612(c)(2) (47 
U.S.C. 532(c)(2)) is amended by striking ``an operator'' and inserting 
``a cable operator may refuse to transmit any leased access program or 
portion of a leased access program which contains obscenity, indecency, 
or nudity''.

SEC. 410. RESTRICTIONS ON ACCESS BY CHILDREN TO OBSCENE AND INDECENT 
              MATERIAL ON ELECTRONIC INFORMATION NETWORKS OPEN TO THE 
              PUBLIC.

    (a) Availability of Tag Information.--In order--
            (1) to encourage the voluntary use of tags in the names, 
        addresses, or text of electronic files containing obscene, 
        indecent, or mature text or graphics that are made available to 
        the public through public information networks in order to 
        ensure the ready identification of files containing such text 
        or graphics;
            (2) to encourage developers of computer software that 
        provides access to or interface with a public information 
        network to develop software that permits users of such software 
        to block access to or interface with text or graphics 
        identified by such tags; and
            (3) to encourage the telecommunications industry and the 
        providers and users of public information networks to take 
        practical actions (including the establishment of a board 
        consisting of appropriate members of such industry, providers, 
        and users) to develop a highly effective means of preventing 
        the access of children through public information networks to 
        electronic files that contain such text or graphics,
the Secretary of Commerce shall take appropriate steps to make 
information on the tags established and utilized in voluntary 
compliance with this subsection available to the public through public 
information networks.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to Congress a report 
on the tags established and utilized in voluntary compliance with this 
section. The report shall--
            (1) describe the tags so established and utilized;
            (2) assess the effectiveness of such tags in preventing the 
        access of children to electronic files that contain obscene, 
        indecent, or mature text or graphics through public information 
        networks; and
            (3) provide recommendations for additional means of 
        preventing such access.
    (c) Definitions.--In this section:
            (1) The term ``public information network'' means the 
        Internet, electronic bulletin boards, and other electronic 
        information networks that are open to the public.
            (2) The term ``tag'' means a part or segment of the name, 
        address, or text of an electronic file.

                 TITLE V--PARENTAL CHOICE IN TELEVISION

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Parental Choice in Television Act 
of 1995''.

SEC. 502. FINDINGS.

    Congress makes the following findings:
            (1) On average, a child in the United States is exposed to 
        27 hours of television each week and some children are exposed 
        to as much as 11 hours of television each day.
            (2) The average American child watches 8,000 murders and 
        100,000 acts of other violence on television by the time the 
        child completes elementary school.
            (3) By the age of 18 years, the average American teenager 
        has watched 200,000 acts of violence on television, including 
        40,000 murders.
            (4) On several occasions since 1975, The Journal of the 
        American Medical Association has alerted the medical community 
        to the adverse effects of televised violence on child 
        development, including an increase in the level of aggressive 
        behavior and violent behavior among children who view it.
            (5) The National Commission on Children recommended in 1991 
        that producers of television programs exercise greater 
        restraint in the content of programming for children.
            (6) A report of the Harry Frank Guggenheim Foundation, 
        dated May 1993, indicates that there is an irrefutable 
        connection between the amount of violence depicted in the 
        television programs watched by children and increased 
        aggressive behavior among children.
            (7) It is a compelling National interest that parents be 
        empowered with the technology to block the viewing by their 
        children of television programs whose content is overly violent 
        or objectionable for other reasons.
            (8) Technology currently exists to permit the manufacture 
        of television receivers that are capable of permitting parents 
        to block television programs having violent or otherwise 
        objectionable content.

SEC. 503. RATING CODE FOR VIOLENCE AND OTHER OBJECTIONABLE CONTENT ON 
              TELEVISION.

    (a) Sense of Congress on Voluntary Establishment of Rating Code.--
It is the sense of Congress--
            (1) to encourage appropriate representatives of the 
        broadcast television industry and the cable television industry 
        to establish in a voluntary manner rules for rating the level 
        of violence or other objectionable content in television 
        programming, including rules for the transmission by television 
        broadcast stations and cable systems of--
                    (A) signals containing ratings of the level of 
                violence or objectionable content in such programming; 
                and
                    (B) signals containing specifications for blocking 
                such programming;
            (2) to encourage such representatives to establish such 
        rules in consultation with appropriate public interest groups 
        and interested individuals from the private sector; and
            (3) to encourage television broadcasters and cable 
        operators to comply voluntarily with such rules upon the 
        establishment of such rules.
    (b) Requirement for Establishment of Rating Code.--
            (1) In general.--If the representatives of the broadcast 
        television industry and the cable television industry do not 
        establish the rules referred to in subsection (a)(1) by the end 
        of the 1-year period beginning on the date of the enactment of 
        this Act, there shall be established on the day following the 
        end of that period a commission to be known as the Television 
        Rating Commission (hereafter in this section referred to as the 
        ``Television Commission''). The Television Commission shall be 
        an independent establishment in the executive branch as defined 
        under section 104 of title 5, United States Code.
            (2) Members.--
                    (A) In general.--The Television Commission shall be 
                composed of 5 members appointed by the President, by 
                and with the advice and consent of the Senate, of 
                whom--
                            (i) three shall be individuals who are 
                        members of appropriate public interest groups 
                        or are interested individuals from the private 
                        sector; and
                            (ii) two shall be representatives of the 
                        broadcast television industry and the cable 
                        television industry.
                    (B) Nomination.--Individuals shall be nominated for 
                appointment under subparagraph (A) not later than 60 
                days after the date of the establishment of the 
                Television Commission.
                    (D) Terms.--Each member of the Television 
                Commission shall serve until the termination of the 
                commission.
                    (E) Vacancies.--A vacancy on the Television 
                Commission shall be filled in the same manner as the 
                original appointment.
            (2) Duties of television commission.--The Television 
        Commission shall establish rules for rating the level of 
        violence or other objectionable content in television 
        programming, including rules for the transmission by television 
        broadcast stations and cable systems of--
                    (A) signals containing ratings of the level of 
                violence or objectionable content in such programming; 
                and
                    (B) signals containing specifications for blocking 
                such programming.
            (3) Compensation of Members.--
                    (A) Chairman.--The Chairman of the Television 
                Commission shall be paid at a rate equal to the daily 
                equivalent of the minimum annual rate of basic pay 
                payable for level IV of the Executive Schedule under 
                section 5314 of title 5, United States Code, for each 
                day (including traveltime) during which the Chairman is 
                engaged in the performance of duties vested in the 
                commission.
                    (B) Other members.--Except for the Chairman who 
                shall be paid as provided under subparagraph (A), each 
                member of the Television Commission shall be paid at a 
                rate equal to the daily equivalent of the minimum 
                annual rate of basic pay payable for level V of the 
                Executive Schedule under section 5315 of title 5, 
                United States Code, for each day (including traveltime) 
                during which the member is engaged in the performance 
                of duties vested in the commission.
            (4) Staff.--
                    (A) In general.--The Chairman of the Television 
                Commission may, without regard to the civil service 
                laws and regulations, appoint and terminate an 
                executive director and such other additional personnel 
                as may be necessary to enable the commission to perform 
                its duties. The employment of an executive director 
                shall be subject to confirmation by the commission.
                    (B) Compensation.--The Chairman of the Television 
                Commission may fix the compensation of the executive 
                director and other personnel without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of title 5, United States Code, relating to 
                classification of positions and General Schedule pay 
                rates, except that the rate of pay for the executive 
                director and other personnel may not exceed the rate 
                payable for level V of the Executive Schedule under 
                section 5316 of such title.
            (5) Consultants.--The Television Commission may procure by 
        contract, to the extent funds are available, the temporary or 
        intermittent services of experts or consultants under section 
        3109 of title 5, United States Code. The commission shall give 
        public notice of any such contract before entering into such 
        contract.
            (6) Funding.--There is authorized to be appropriated to the 
        Commission such sums as are necessary to enable the Commission 
        to carry out its duties under this Act.

SEC. 504. REQUIREMENT FOR MANUFACTURE OF TELEVISIONS THAT BLOCK 
              PROGRAMS.

    (a) Requirement.--Section 303 (47 U.S.C. 303), as amended by this 
Act, 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--
            ``(1) be equipped with circuitry designed to enable viewers 
        to block the display of channels during particular time slots; 
        and
            ``(2) enable viewers to block display of all programs with 
        a common rating.''.
    (b) Implementation.--In adopting the requirement set forth in 
section 303(w) of the Communications Act of 1934, as added by 
subsection (a), the Federal Communications Commission, in consultation 
with the television receiver manufacturing industry, shall determine a 
date for the applicability of the requirement to the apparatus covered 
by that section.

SEC. 505. SHIPPING OR IMPORTING OF TELEVISIONS THAT BLOCK PROGRAMS.

    (a) Regulations.--Section 330 (47 U.S.C. 330) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) 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 performance standards for blocking technology. Such rules 
shall require that all such apparatus be able to receive transmitted 
rating signals which conform to the signal and blocking specifications 
established by 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.''.
    (b) Conforming Amendment.--Section 330(d), 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)''.

      TITLE VI--NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION

SEC. 601. SHORT TITLE.

    This title may be cited as the ``National Education Technology 
Funding Corporation Act of 1995''.

SEC. 602. FINDINGS; PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) Corporation.--There has been established in the 
        District of Columbia a private, nonprofit corporation known as 
        the National Education Technology Funding Corporation which is 
        not an agency or independent establishment of the Federal 
        Government.
            (2) Board of directors.--The Corporation is governed by a 
        Board of Directors, as prescribed in the Corporation's articles 
        of incorporation, consisting of 15 members, of which--
                    (A) five members are representative of public 
                agencies representative of schools and public 
                libraries;
                    (B) five members are representative of State 
                government, including persons knowledgeable about State 
                finance, technology and education; and
                    (C) five members are representative of the private 
                sector, with expertise in network technology, finance 
                and management.
            (3) Corporate purposes.--The purposes of the Corporation, 
        as set forth in its articles of incorporation, are--
                    (A) to leverage resources and stimulate private 
                investment in education technology infrastructure;
                    (B) to designate State education technology 
                agencies to receive loans, grants or other forms of 
                assistance from the Corporation;
                    (C) to establish criteria for encouraging States 
                to--
                            (i) create, maintain, utilize and upgrade 
                        interactive high capacity networks capable of 
                        providing audio, visual and data communications 
                        for elementary schools, secondary schools and 
                        public libraries;
                            (ii) distribute resources to assure 
                        equitable aid to all elementary schools and 
                        secondary schools in the State and achieve 
                        universal access to network technology; and
                            (iii) upgrade the delivery and development 
                        of learning through innovative technology-based 
                        instructional tools and applications;
                    (D) to provide loans, grants and other forms of 
                assistance to State education technology agencies, with 
                due regard for providing a fair balance among types of 
                school districts and public libraries assisted and the 
                disparate needs of such districts and libraries;
                    (E) to leverage resources to provide maximum aid to 
                elementary schools, secondary schools and public 
                libraries; and
                    (F) to encourage the development of education 
                telecommunications and information technologies through 
                public-private ventures, by serving as a clearinghouse 
                for information on new education technologies, and by 
                providing technical assistance, including assistance to 
                States, if needed, to establish State education 
                technology agencies.
    (b) Purpose.--The purpose of this title is to recognize the 
Corporation as a nonprofit corporation operating under the laws of the 
District of Columbia, and to provide authority for Federal departments 
and agencies to provide assistance to the Corporation.

SEC. 603. DEFINITIONS.

    For the purpose of this title--
            (1) the term ``Corporation'' means the National Education 
        Technology Funding Corporation described in section 602(a)(1);
            (2) the terms ``elementary school'' and ``secondary 
        school'' have the same meanings given such terms in section 
        14101 of the Elementary and Secondary Education Act of 1965; 
        and
            (3) the term ``public library'' has the same meaning given 
        such term in section 3 of the Library Services and Construction 
        Act.

SEC. 604. ASSISTANCE FOR EDUCATION TECHNOLOGY PURPOSES.

    (a) Receipt by Corporation.--Notwithstanding any other provision of 
law, in order to carry out the corporate purposes described in section 
602(a)(3), the Corporation shall be eligible to receive discretionary 
grants, contracts, gifts, contributions, or technical assistance from 
any Federal department or agency, to the extent otherwise permitted by 
law.
    (b) Agreement.--In order to receive any assistance described in 
subsection (a) the Corporation shall enter into an agreement with the 
Federal department or agency providing such assistance, under which the 
Corporation agrees--
            (1) to use such assistance to provide funding and technical 
        assistance only for activities which the Board of Directors of 
        the Corporation determines are consistent with the corporate 
        purposes described in section 602(a)(3);
            (2) to review the activities of State education technology 
        agencies and other entities receiving assistance from the 
        Corporation to assure that the corporate purposes described in 
        section 602(a)(3) are carried out;
            (3) that no part of the assets of the Corporation shall 
        accrue to the benefit of any member of the Board of Directors 
        of the Corporation, any officer or employee of the Corporation, 
        or any other individual, except as salary or reasonable 
        compensation for services;
            (4) that the Board of Directors of the Corporation will 
        adopt policies and procedures to prevent conflicts of interest;
            (5) to maintain a Board of Directors of the Corporation 
        consistent with section 602(a)(2);
            (6) that the Corporation, and any entity receiving the 
        assistance from the Corporation, are subject to the appropriate 
        oversight procedures of the Congress; and
            (7) to comply with--
                    (A) the audit requirements described in section 
                605; and
                    (B) the reporting and testimony requirements 
                described in section 606.
    (c) Construction.--Nothing in this title shall be construed to 
establish the Corporation as an agency or independent establishment of 
the Federal Government, or to establish the members of the Board of 
Directors of the Corporation, or the officers and employees of the 
Corporation, as officers or employees of the Federal Government.

SEC. 605. AUDITS

    (a) Audits by Independent Certified Public Accountants.--
            (1) In general.--The Corporation's financial statements 
        shall be audited annually in accordance with generally accepted 
        auditing standards by independent certified public accountants 
        who are members of a nationally recognized accounting firm and 
        who are certified by a regulatory authority of a State or other 
        political subdivision of the United States. The audits shall be 
        conducted at the place or places where the accounts of the 
        Corporation are normally kept. All books, accounts, financial 
        records, reports, files, and all other papers, things, or 
        property belonging to or in use by the Corporation and 
        necessary to facilitate the audit shall be made available to 
        the person or persons conducting the audits, and full 
        facilities for verifying transactions with the balances or 
        securities held by depositories, fiscal agents, and custodians 
        shall be afforded to such person or persons.
            (2) Reporting requirements.--The report of each annual 
        audit described in paragraph (1) shall be included in the 
        annual report required by section 606(a).
    (b) Recordkeeping Requirements; Audit and Examination of Books.--
            (1) Recordkeeping requirements.--The Corporation shall 
        ensure that each recipient of assistance from the Corporation 
        keeps--
                    (A) separate accounts with respect to such 
                assistance;
                    (B) such records as may be reasonably necessary to 
                fully disclose--
                            (i) the amount and the disposition by such 
                        recipient of the proceeds of such assistance;
                            (ii) the total cost of the project or 
                        undertaking in connection with which such 
                        assistance is given or used; and
                            (iii) the amount and nature of that portion 
                        of the cost of the project or undertaking 
                        supplied by other sources; and
                    (C) such other records as will facilitate an 
                effective audit.
            (2) Audit and examination of books.--The Corporation shall 
        ensure that the Corporation, or any of the Corporation's duly 
        authorized representatives, shall have access for the purpose 
        of audit and examination to any books, documents, papers, and 
        records of any recipient of assistance from the Corporation 
        that are pertinent to such assistance. Representatives of the 
        Comptroller General shall also have such access for such 
        purpose.

SEC. 606. ANNUAL REPORT; TESTIMONY TO THE CONGRESS.

    (a) Annual Report.--Not later than April 30 of each year, the 
Corporation shall publish an annual report for the preceding fiscal 
year and submit that report to the President and the Congress. The 
report shall include a comprehensive and detailed evaluation of the 
Corporation's operations, activities, financial condition, and 
accomplishments under this title and may include such recommendations 
as the Corporation deems appropriate.
    (b) Testimony Before Congress.--The members of the Board of 
Directors, and officers, of the Corporation shall be available to 
testify before appropriate committees of the Congress with respect to 
the report described in subsection (a), the report of any audit made by 
the Comptroller General pursuant to this title, or any other matter 
which any such committee may determine appropriate.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. SPECTRUM AUCTIONS.

    (a) Findings.--The Congress finds that--
            (1) the National Telecommunications and Information 
        Administration of the Department of Commerce recently submitted 
        to the Congress a report entitled ``U.S. National Spectrum 
        Requirements'' as required by section 113 of the National 
        Telecommunications and Information Administration Organization 
        Act (47 U.S.C. 923);
            (2) based on the best available information the report 
        concludes that an additional 179 megahertz of spectrum will be 
        needed within the next ten years to meet the expected demand 
        for land mobile and mobile satellite radio services such as 
        cellular telephone service, paging services, personal 
        communication services, and low earth orbiting satellite 
        communications systems;
            (3) a further 85 megahertz of additional spectrum, for a 
        total of 264 megahertz, is needed if the United States is to 
        fully implement the Intelligent Transportation System currently 
        under development by the Department of Transportation;
            (4) as required by part B of the National 
        Telecommunications and Information Administration Organization 
        Act (47 U.S.C. 921 et seq.) the Federal Government will 
        transfer 235 megahertz of spectrum from exclusive government 
        use to non-governmental or mixed governmental and non-
        governmental use between 1994 and 2004;
            (5) the Spectrum Reallocation Final Report submitted to 
        Congress under section 113 of the National Telecommunications 
        and Information Administration Organization Act by the National 
        Telecommunications and Information Administration states that, 
        of the 235 megahertz of spectrum identified for reallocation 
        from governmental to non-governmental or mixed use--
                    (A) 50 megahertz has already been reallocated for 
                exclusive non-governmental use,
                    (B) 45 megahertz will be reallocated in 1995 for 
                both exclusive non-governmental and mixed governmental 
                and non-governmental use,
                    (C) 25 megahertz will be reallocated in 1997 for 
                exclusive non-governmental use,
                    (D) 70 megahertz will be reallocated in 1999 for 
                both exclusive non-governmental and mixed governmental 
                and non-governmental use, and
                    (E) the final 45 megahertz will be reallocated for 
                mixed governmental and non-governmental use by 2004;
            (6) the 165 megahertz of spectrum that are not yet 
        reallocated, combined with 80 megahertz that the Federal 
        Communications Commission is currently holding in reserve for 
        emerging technologies, are less than the best estimates of 
        projected spectrum needs in the United States;
            (7) the authority of the Federal Communications Commission 
        to assign radio spectrum frequencies using an auction process 
        expires on September 30, 1998;
            (8) a significant portion of the reallocated spectrum will 
        not yet be assigned to non-governmental users before that 
        authority expires;
            (9) the transfer of Federal governmental users from certain 
        valuable radio frequencies to other reserved frequencies could 
        be expedited if Federal governmental users are permitted to 
        accept reimbursement for relocation costs from non-governmental 
        users; and
            (10) non-governmental reimbursement of Federal governmental 
        users relocation costs would allow the market to determine the 
        most efficient use of the available spectrum.
    (b) Extension and Expansion of Auction Authority.--Section 309(j) 
(47 U.S.C. 309(j)) is amended--
            (1) by striking paragraph (1) and inserting in lieu thereof 
        the following:
            ``(1) General authority.--If mutually exclusive 
        applications or requests are accepted for any initial license 
        or construction permit which will involve a use of the 
        electromagnetic spectrum, then the Commission shall grant such 
        license or permit to a qualified applicant through a system of 
        competitive bidding that meets the requirements of this 
        subsection. The competitive bidding authority granted by this 
        subsection shall not apply to licenses or construction permits 
        issued by the Commission for public safety radio services or 
        for licenses or construction permits for new terrestrial 
        digital television services assigned by the Commission to 
        existing terrestrial broadcast licensees to replace their 
        current television licenses.'';
            (2) by striking paragraph (2) and renumbering paragraphs 
        (3) through (13) as (2) through (12), respectively; and
            (3) by striking ``1998'' in paragraph (10), as renumbered, 
        and inserting in lieu thereof ``2000''.
    (c) Reimbursement of Federal Relocation Costs.--Section 113 of the 
National Telecommunications and Information Administration Act (47 
U.S.C. 923) is amended by adding at the end the following new 
subsections:
    ``(f) Relocation of Federal Government Stations.--
            ``(1) In general.--In order to expedite the efficient use 
        of the electromagnetic spectrum and notwithstanding section 
        3302(b) of title 31, United States Code, any Federal entity 
        which operates a Federal Government station may accept 
        reimbursement from any person for the costs incurred by such 
        Federal entity for any modification, replacement, or reissuance 
        of equipment, facilities, operating manuals, regulations, or 
        other expenses incurred by that entity in relocating the 
        operations of its Federal Government station or stations from 
        one or more radio spectrum frequencies to any other frequency 
        or frequencies. Any such reimbursement shall be deposited in 
        the account of such Federal entity in the Treasury of the 
        United States. Funds deposited according to this section shall 
        be available, without appropriation or fiscal year limitation, 
        only for the operations of the Federal entity for which such 
        funds were deposited under this section.
            ``(2) Process for relocation.--Any person seeking to 
        relocate a Federal Government station that has been assigned a 
        frequency within a band allocated for mixed Federal and non-
        Federal use may submit a petition for such relocation to NTIA. 
        The NTIA shall limit the Federal Government station's operating 
        license to secondary status when the following requirements are 
        met--
                    ``(A) the person seeking relocation of the Federal 
                Government station has guaranteed reimbursement through 
                money or in-kind payment of all relocation costs 
                incurred by the Federal entity, including all 
                engineering, equipment, site acquisition and 
                construction, and regulatory fee costs;
                    ``(B) the person seeking relocation completes all 
                activities necessary for implementing the relocation, 
                including construction of replacement facilities (if 
                necessary and appropriate) and identifying and 
                obtaining on the Federal entity's behalf new 
                frequencies for use by the relocated Federal Government 
                station (where such station is not relocating to 
                spectrum reserved exclusively for Federal use); and
                    ``(C) any necessary replacement facilities, 
                equipment modifications, or other changes have been 
                implemented and tested to ensure that the Federal 
                Government station is able to successfully accomplish 
                its purposes.
            ``(3) Right to reclaim.--If within one year after the 
        relocation the Federal Government station demonstrates to the 
        Commission that the new facilities or spectrum are not 
        comparable to the facilities or spectrum from which the Federal 
        Government station was relocated, the person seeking such 
        relocation must take reasonable steps to remedy any defects or 
        reimburse the Federal entity for the costs of returning the 
        Federal Government station to the spectrum from which such 
        station was relocated.
    ``(g) Federal Action to Expedite Spectrum Transfer.--Any Federal 
Government station which operates on electromagnetic spectrum that has 
been identified for reallocation for mixed Federal and non-Federal use 
in the Spectrum Reallocation Final Report shall, to the maximum extent 
practicable through the use of the authority granted under subsection 
(f) and any other applicable provision of law, take action to relocate 
its spectrum use to other frequencies that are reserved for Federal use 
or to consolidate its spectrum use with other Federal Government 
stations in a manner that maximizes the spectrum available for non-
Federal use. Notwithstanding the timetable contained in the Spectrum 
Reallocation Final Report, the President shall seek to implement the 
reallocation of the 1710 to 1755 megahertz frequency band by January 1, 
2000. Subsection (c)(4) of this section shall not apply to the extent 
that a non-Federal user seeks to relocate or relocates a Federal power 
agency under subsection (f).
    ``(h) Definitions.--For purposes of this section--
            ``(1) Federal entity.--The term `Federal entity' means any 
        Department, agency, or other element of the Federal Government 
        that utilizes radio frequency spectrum in the conduct of its 
        authorized activities, including a Federal power agency.
            ``(2) Spectrum Reallocation Final Report.--The term 
        `Spectrum Reallocation Final Report' means the report submitted 
        by the Secretary to the President and Congress in compliance 
        with the requirements of subsection (a).''.
    (d) Reallocation of Additional Spectrum.--The Secretary of Commerce 
shall, within 9 months after the date of enactment of this Act, prepare 
and submit to the President and the Congress a report and timetable 
recommending the reallocation of the two frequency bands (3625-3650 
megahertz and 5850-5925 megahertz) that were discussed but not 
recommended for reallocation in the Spectrum Reallocation Final Report 
under section 113(a) of the National Telecommunications and Information 
Administration Organization Act. The Secretary shall consult with the 
Federal Communications Commission and other Federal agencies in the 
preparation of the report, and shall provide notice and an opportunity 
for public comment before submitting the report and timetable required 
by this section.
    (e) Broadcast Auxiliary Spectrum Relocation.--
            (1) Allocation of spectrum for broadcast auxiliary uses.--
        Within one year after the date of enactment of this Act, the 
        Commission shall allocate the 4635-4685 megahertz band 
        transferred to the Commission under section 113(b) of the 
        National Telecommunications and Information Administration 
        Organization Act (47 U.S.C. 923(b)) for broadcast auxiliary 
        uses.
            (2) Mandatory relocation of broadcast auxiliary uses.--
        Within 7 years after the date of enactment of this Act, all 
        licensees of broadcast auxiliary spectrum in the 2025-2075 
        megahertz band shall relocate into spectrum allocated by the 
        Commission under paragraph (1). The Commission shall assign and 
        grant licenses for use of the spectrum allocated under 
        paragraph (1)--
                    (A) in a manner sufficient to permit timely 
                completion of relocation; and
                    (B) without using a competitive bidding process.
            (3) Assigning recovered spectrum.--Within 5 years after the 
        date of enactment of this Act, the Commission shall allocate 
        the spectrum recovered in the 2025-2075 megahertz band under 
        paragraph (2) for use by new licensees for commercial mobile 
        services or other similar services after the relocation of 
        broadcast auxiliary licensees, and shall assign such licenses 
        by competitive bidding.

SEC. 702. RENEWED EFFORTS TO REGULATE VIOLENT PROGRAMMING.

    (a) Findings.--The Senate finds that:
            (1) Violence is a pervasive and persistent feature of the 
        entertainment industry. According to the Carnegie Council on 
        Adolescent Development, by the age of 18, children will have 
        been exposed to nearly 18,000 televised murders and 800 
        suicides.
            (2) Violence on television is likely to have a serious and 
        harmful effect on the emotional development of young children. 
        The American Psychological Association has reported that 
        children who watch ``a large number of aggressive programs tend 
        to hold attitudes and values that favor the use of aggression 
        to solve conflicts''. The National Institute of Mental Health 
        has stated similarly that ``violence on television does lead to 
        aggressive behavior by children and teenagers''.
            (3) The Senate recognizes that television violence is not 
        the sole cause of violence in society.
            (4) There is a broad recognition in the United States 
        Congress that the television industry has an obligation to 
        police the content of its own broadcasts to children. That 
        understanding was reflected in the Television Violence Act of 
        1990, which was specifically designed to permit industry 
        participants to work together to create a self-monitoring 
        system.
            (5) After years of denying that television violence has any 
        detrimental effect, the entertainment industry has begun to 
        address the problem of television violence. In the spring of 
        1994, for example, the network and cable industries announced 
        the appointment of an independent monitoring group to assess 
        the amount of violence on television. These reports are due out 
        in the fall of 1995 and winter of 1996, respectively.
            (6) The Senate recognizes that self-regulation by the 
        private sector is generally preferable to direct regulation by 
        the Federal Government.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
entertainment industry should do everything possible to limit the 
amount of violent and aggressive entertainment programming, 
particularly during the hours when children are most likely to be 
watching.

SEC. 703. PREVENTION OF UNFAIR BILLING PRACTICES FOR INFORMATION OR 
              SERVICES PROVIDED OVER TOLL-FREE TELEPHONE CALLS.

    (a) Findings.--Congress makes the following findings:
            (1) Reforms required by the Telephone Disclosure and 
        Dispute Resolution Act of 1992 have improved the reputation of 
        the pay-per-call industry and resulted in regulations that have 
        reduced the incidence of misleading practices that are harmful 
        to the public interest.
            (2) Among the successful reforms is a restriction on 
        charges being assessed for calls to 800 telephone numbers or 
        other telephone numbers advertised or widely understood to be 
        toll free.
            (3) Nevertheless, certain interstate pay-per-call 
        businesses are taking advantage of an exception in the 
        restriction on charging for information conveyed during a call 
        to a ``toll-free'' number to continue to engage in misleading 
        practices. These practices are not in compliance with the 
        intent of Congress in passing the Telephone Disclosure and 
        Dispute Resolution Act.
            (4) It is necessary for Congress to clarify that its intent 
        is that charges for information provided during a call to an 
        800 number or other number widely advertised and understood to 
        be toll free shall not be assessed to the calling party unless 
        the calling party agrees to be billed according to the terms of 
        a written subscription agreement or by other appropriate means.
    (b) Prevention of Unfair Billing Practices.--
            (1) In general.--Section 228(c) (47 U.S.C. 228(c)) is 
        amended--
                    (A) by striking out subparagraph (C) of paragraph 
                (7) and inserting in lieu thereof the following:
                    ``(C) the calling party being charged for 
                information conveyed during the call unless--
                            ``(i) the calling party has a written 
                        agreement (including an agreement transmitted 
                        through electronic medium) that meets the 
                        requirements of paragraph (8); or
                            ``(ii) the calling party is charged for the 
                        information in accordance with paragraph (9); 
                        or''; and
                    (B) 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), a written subscription does not meet the 
                requirements of this paragraph unless the agreement 
                specifies the material terms and conditions under which 
                the information is offered and includes--
                            ``(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 of all future changes 
                        in the rates charged for the information; and
                            ``(vi) the subscriber's choice of payment 
                        method, which may be by direct remit, debit, 
                        prepaid account, phone bill or credit or 
                        calling card.
                    ``(B) Billing arrangements.--If a subscriber 
                elects, pursuant to subparagraph (A)(vi), to pay by 
                means of a phone bill--
                            ``(i) the agreement shall clearly explain 
                        that charges for the service will appear on the 
                        subscriber's phone bill;
                            ``(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 pins to prevent unauthorized use.--A 
                written agreement does not meet the requirements of 
                this paragraph unless it requires the subscriber to use 
                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 calls utilizing 
                        telecommunications devices for the deaf;
                            ``(ii) for services provided pursuant to a 
                        tariff that has been approved or permitted to 
                        take effect by the Commission or a State 
                        commission; or
                            ``(iii) for any purchase of goods or of 
                        services that are not information services.
                    ``(E) Termination of service.--On receipt by a 
                common carrier of a complaint by any person that an 
                information provider is in violation of the provisions 
                of this section, a carrier shall--
                            ``(i) promptly investigate the complaint; 
                        and
                            ``(ii) if the carrier reasonably determines 
                        that the complaint is valid, it 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.
                    ``(F) Treatment of remedies.--The remedies provided 
                in this paragraph are in addition to any other remedies 
                that are available under title V of this Act.
            ``(9) Charges in absence of agreement.--A calling party is 
        charged for a call in accordance with this paragraph if the 
        provider of the information conveyed during the call--
                    ``(A) clearly states to the calling party the total 
                cost per minute of the information provided during the 
                call and for any other information or service provided 
                by the provider to which the calling party requests 
                connection during the call; and
                    ``(B) receives from the calling party--
                            ``(i) an agreement to accept the charges 
                        for any information or services provided by the 
                        provider during the call; and
                            ``(ii) a credit, calling, or charge card 
                        number or verification of a prepaid account to 
                        which such charges are to be billed.
            ``(10) Definition.--As used in paragraphs (8) and (9), 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.''
            (2) Regulations.--The Federal Communications Commission 
        shall revise its regulations to comply with the amendment made 
        by paragraph (1) not later than 180 days after the date of the 
        enactment of this Act.
            (3) Effective date.--The amendments made by paragraph (1) 
        shall take effect on the date of the enactment of this Act.
    (c) Clarification of ``Pay-Per-Call Services'' Under Telephone 
Disclosure and Dispute Resolution Act.--Section 204(1) of the Telephone 
Disclosure and Dispute Resolution Act (15 U.S.C. 5714(1)) is amended to 
read as follows:
            ``(1) The term `pay-per-call services' has the meaning 
        provided in section 228(j)(1) of the Communications Act of 
        1934, except that the Commission by rule may, notwithstanding 
        subparagraphs (B) and (C) of such section, extend such 
        definition to other similar services providing audio 
        information or audio entertainment if the Commission determines 
        that such services are susceptible to the unfair and deceptive 
        practices that are prohibited by the rules prescribed pursuant 
        to section 201(a).''.

SEC. 704. DISCLOSURE OF CERTAIN RECORDS FOR INVESTIGATIONS OF 
              TELEMARKETING FRAUD.

    Section 2703(c)(1)(B) of title 18, United States Code, is amended--
            (1) by striking out ``or'' at the end of clause (ii);
            (2) by striking out the period at the end of clause (iii) 
        and inserting in lieu thereof ``; or''; and
            (3) by adding at the end the following:
            ``(iv) submits a formal written request for information 
        relevant to a legitimate law enforcement investigation of the 
        governmental entity for the name, address, and place of 
        business of a subscriber or customer of such provider, which 
        subscriber or customer is engaged in telemarketing (as such 
        term is in section 2325 of this title).''.

SEC. 705. TELECOMMUTING PUBLIC INFORMATION PROGRAM.

    (a) Findings.--Congress makes the following findings--
            (1) Telecommuting is the practice of allowing people to 
        work either at home or in nearby centers located closer to home 
        during their normal working hours, substituting 
        telecommunications services, either partially or completely, 
        for transportation to a more traditional workplace;
            (2) Telecommuting is now practiced by an estimated two to 
        seven million Americans, including individuals with impaired 
        mobility, who are taking advantage of computer and 
        telecommunications advances in recent years;
            (3) Telecommuting has the potential to dramatically reduce 
        fuel consumption, mobile source air pollution, vehicle miles 
        traveled, and time spent commuting, thus contributing to an 
        improvement in the quality of life for millions of Americans; 
        and
            (4) It is in the public interest for the Federal Government 
        to collect and disseminate information encouraging the 
        increased use of telecommuting and identifying the potential 
        benefits and costs of telecommuting.
    (b) Telecommuting Research Programs and Public Information 
Dissemination.--The Secretary of Transportation, in consultation with 
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 regarading--
            (1) the establishment of successful telecommuting programs; 
        and
            (2) the benefits and costs of telecommuting.
    (c) Report.--Within one year of the date of enactment of this Act, 
the Secretary of Transportation shall report to Congress its findings, 
conclusions, and recommendations regarding telecommuting developed 
under this section.

SEC. 706. AUTHORITY TO ACQUIRE CABLE SYSTEMS.

    (a) In General.--Notwithstanding the provisions of section 
613(b)(6) of the Communications Act of 1934, as added by section 203(a) 
of this Act, a local exchange carrier (or any affiliate of such carrier 
owned by, operated by, controlled by, or under common control with such 
carrier) may purchase or otherwise acquire more than a 10 percent 
financial interest, or any management interest, or enter into a joint 
venture or partnership with any cable system described in subsection 
(b) within the local exchange carrier's telephone service area.
    (b) Covered Cable Systems.--Subsection (a) applies to any cable 
system serving no more than 20,000 cable subscribers of which no more 
than 12,000 of those subscribers live within an urbanized area, as 
defined by the Bureau of the Census.
    (c) Definition.--For purposes of this section, the term ``local 
exchange carrier'' has the meaning given such term in section 3 (kk) of 
the Communications Act of 1934, as added by section 8(b) of this Act.
            Passed the Senate June 15 (legislative day, June 5), 1995.

            Attest:

                                                             Secretary.
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104th CONGRESS

  1st Session

                                 S. 652

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                June 23 (legislative day, June 19), 1995

                    Ordered to be printed as passed