[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