[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 652 Reported in Senate (RS)]
Calendar No. 45
104th CONGRESS
1st Session
S. 652
[Report No. 104-23]
_______________________________________________________________________
A BILL
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.
_______________________________________________________________________
March 30 (legislative day, March 27), 1995
Read twice and placed on the calendar
Calendar No. 45
104th CONGRESS
1st Session
S. 652
[Report No. 104-23]
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 30 (legislative day, March 27), 1995
Mr. Pressler, from the Committee on Commerce, Science, and
Transportation, reported the following original bill; which was read
twice and placed on the calendar
_______________________________________________________________________
A BILL
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:
Page
Sec. 1. Short title............ 2
Sec. 2. Table of contents...... 2
Sec. 3. Purpose................ 3
Sec. 4. Goals.................. 3
Sec. 5. Findings............... 4
Sec. 6. Amendment of 8
Communications Act of 1934.
Sec. 7. Effect on other laws... 8
Sec. 8. Definitions............ 9
Title I--Transition to Competition
Sec. 101. Interconnection 14
requirements.
Sec. 102. Separate subsidiary 28
and safeguard requirements.
Sec. 103. Universal service.... 36
Sec. 104. Essential
telecommunications
carriers. 43
Sec. 105. Foreign investment 48
and ownership reform.
Sec. 106. Infrastructure 50
sharing.
Title II--Removal of Restrictions to
Competition
Subtitle A--Removal of Restrictions
Sec. 201. Removal of entry 54
barriers.
Sec. 202. Limitation on State 57
and local taxation of
direct-to-home satellite
services.
Sec. 203. Elimination of cable
and telephone company
cross-ownership
restriction. 63
Sec. 204. Cable Act reform..... 69
Sec. 205. Pole attachments..... 71
Sec. 206. Entry by utility 73
companies.
Sec. 207. Broadcast reform..... 76
Subtitle B--Termination of Modification
of Final Judgment
Sec. 221. Removal of long 82
distance restrictions.
Sec. 222. Removal of 99
manufacturing restrictions.
Sec. 223. Existing activities.. 105
Sec. 224. Enforcement.......... 106
Sec. 225. Alarm monitoring 108
services.
Title III--An End to Regulation
Sec. 301. Transition to 113
competitive pricing.
Sec. 302. Biennial review of 117
regulations.
Sec. 303. Regulatory 118
forbearance.
Sec. 304. Advanced 120
telecommunications
incentives.
Sec. 305. Regulatory parity.... 122
Sec. 306. Automated ship
distress and safety
systems. 123
Sec. 307. Telecommunications 123
numbering administration.
Sec. 308. Access by persons 124
with disabilities.
Sec. 309. Rural markets........ 129
Sec. 310. Telecommunications 131
services for health care
providers for rural areas,
educational providers, and
libraries.
Sec. 311. Provision of payphone 135
service and telemessaging
service.
Title IV--Obscene, Harassing, and Wrongful
Utilization of Telecommunications
Facilities
Sec. 401. Short title.......... 137
Sec. 402. Obscene or harassing 137
use of telecommunications
facilities under the
Communications Act of 1934.
Sec. 403. Obscene programming 143
on cable television.
Sec. 404. Broadcasting obscene 143
language on radio.
Sec. 405. Interception and 144
disclosure of electronic
communications.
Sec. 406. Additional 144
prohibition on billing for
toll-free telephone calls.
Sec. 407. Scrambling of cable
channels for
nonsubscribers. 145
Sec. 408. Cable operator 146
refusal to carry certain
programs.
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 and GTE Consent Decrees.--After the date of
enactment of this Act, the Commission shall administer the GTE Consent
Decree and 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, or the GTE Consent
Decree, administered by the Commission under 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 those companies listed in
appendix A of the Modification of Final Judgment, and includes any
successor or assign of any such company, but does not include any
affiliate of 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 to the public, regardless of
the facilities used to transmit the telecommunications service. The
term includes the transmission, without change in the form or content,
of information services and cable services, but does not include the
offering of those services.
``(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 be treated as a common carrier under this Act to the extent that
it is engaged in providing telecommunications services.
``(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.''.
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);
``(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;
``(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 such services,
exclusive of any universal service support received for
providing such services;
``(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, within 15 days after the State
receives 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 notify the other party of its petition 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 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.''.
(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 SUBSIDIARY 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 SUBSIDIARY; SAFEGUARDS.
``(a) Separate Subsidiary Required For Competitive Activities.--
``(1) In general.--A Bell operating company (including its
subsidiaries and affiliates) which provides telephone exchange
service may not provide any service described in paragraph (2)
unless it provides that service through a subsidiary that--
``(A) is separate from any operating company entity
that provides telephone exchange service; and
``(B) meets the requirements of subsection (b).
``(2) Services for which a separate subsidiary is
required.--The services for which a separate subsidiary 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
subsidiary 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 a subsidiary and any other
subsidiary or affiliate of such company;
``(2) shall have separate officers, directors, and
employees from the Bell operating company of which it is a
subsidiary or any other subsidiary or affiliate of such
company;
``(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 entity that provides
telephone exchange service; and
``(4) shall conduct all transactions with the Bell
operating company of which it is a subsidiary and any other
subsidiary or affiliate of such company 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
subsidiary described in subsection (a) a Bell operating company, and
any other subsidiary or affiliate of such company--
``(1) may not discriminate between that company, its
subsidiaries or affiliates, 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, its subsidiaries or affiliates,
unless the goods, services, facilities, or information are made
available to other persons on reasonable and nondiscriminatory
terms and conditions; and
``(3) shall account for all transactions with a subsidiary
described in subsection (a) in accordance with generally
accepted accounting principles.
``(d) Joint Marketing.--
``(1) A Bell operating company subsidiary 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 a subsidiary 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).
``(e) 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
or its affiliates 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 subsidiary 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; and
``(5) shall charge the subsidiary 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.
``(f) Proprietary Information.--
``(1) In general.--In complying with the requirements of
this section, each Bell operating company and any subsidiary or
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 subsidiaries and
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 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.
``(g) 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.
``(h) Application to Utility Companies.--
``(1) Public utility holding companies.--For purposes of
this section, a public utility company which is a registered
holding company (as defined in section 2 of the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79b)) that provides
telecommunications service shall provide that service through a
separate subsidiary. The provisions of subsection (b)(4) and
(c)(1) apply to the provision of telecommunications service by
such a company through a separate subsidiary as if such company
were a Bell operating company.
``(2) Other utility companies.--Each State shall determine
whether a public utility company subject to its jurisdiction
that--
``(A) is not a registered holding company (as so
defined), and
``(B) provides telecommunications service,
is required to provide that service through a separate
subsidiary.
``(3) Savings provision.--Nothing in this paragraph
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.
``(i) Separate Subsidiary May Be Subsidiary of Holding Company.--
For purposes of meeting the requirements of this section, and of any
other provision of this Act that requires a separate subsidiary that
meets the requirements of this section, a company (other than the Bell
operating company) that is a subsidiary of the same company of which a
Bell operating company is a subsidiary shall be considered to meet the
separate subsidiary requirement.''.
(b) Implementation.--The Commission shall promulgate any
regulations necessary to implement section 252 of the Communications
Act of 1934 (as added by subsection (a)) within 9 months after the date
of enactment of this Act. Any separate subsidiary 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) 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.
(b) 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 (a) within one
year after receiving such recommendations.
(c) 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.
(d) 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, 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) Citizens 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 independent, non-governmental entities.
``(7) Elementary and secondary schools and classrooms
should have access to advanced telecommunications services.
``(b) Definition.--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 should be provided at just, reasonable, and affordable rates
to all Americans, including those in rural and high-cost areas and
those with disabilities, to enable them to participate effectively in
the economic, academic, medical, and democratic processes of the
Nation. At a minimum, universal service shall include any
telecommunications services that the Commission determines have,
through the operation of market choices by customers, been subscribed
to by a substantial majority of residential customers.
``(c) All Telecommunications Providers Contribute.--Every
telecommunications carrier engaged in intrastate, interstate, or
foreign communication shall contribute on an equitable and
nondiscriminatory basis, in a manner that is reasonably necessary to
preserve and advance universal service. Any other provider of
telecommunications may be required to contribute to the preservation
and advancement of universal service, if the public interest so
requires.
``(d) Enforcement.--In adopting rules to enforce subsection (c),
the Commission and the States may impose or require service
obligations, financial or other forms of contributions, sharing of
equipment and services, discounted rates, or other mechanisms.
``(e) State Authority.--A State may adopt regulations to implement
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.
``(f) Eligibility for Universal Service Support.--If the Commission
adopts rules for the distribution of support payments for the
preservation and advancement of universal service, only
telecommunications carriers which are designated as essential
telecommunications carriers under section 214(d) shall be eligible to
receive those support payments. The support payments shall accurately
reflect the amount reasonably necessary to preserve and advance
universal service.
``(g) Amount of Universal Service Support.--The Commission and the
States shall base the amount of support payments, if any, on the
difference between the actual costs of providing universal service and
the revenues from providing that service. The Commission and the States
shall have as their goal the need to make any universal support
explicit and targeted to those carriers that serve areas for which
support is necessary. A carrier that receives any such support shall
use that support only for the maintenance and upgrading of facilities
and services for which the support is intended.
``(h) Interexchange Service.--The rates charged by providers of
interexchange telecommunications service to consumers in rural and high
cost areas shall be maintained at levels no higher than those charged
by each such provider to its consumers in urban areas.
``(i) Subsidy of Competitive Services Prohibited.--
Telecommunications carriers may not subsidize competitive services with
revenues from services that are not competitive. 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 universal service bear no more than a reasonable share (and
may, in the public interest, bear less than a reasonable share or no
share) of the joint and common costs of facilities used to provide
those services.
``(j) Effective Date.--This section takes effect on the date of
enactment of the Telecommunications Act of 1995, except for subsections
(c), (e), (f), and (g), which take effect one year after the date of
enactment of that Act.''.
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 any universal support payments the
Commission may allow 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 may 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 fine of up to $10,000 for each
day that such carrier refuses to provide such service. In establishing
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 fine of $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''.
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). The determination of
whether market opportunities are equivalent shall be made on a
market segment specific basis.
``(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).''.
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).
(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.
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) Local Government Authority.--Nothing in this section affects
the authority of a local government to manage the public rights-of-way
or to require fair and reasonable compensation from telecommunications
providers, on a competitively neutral and nondiscriminatory basis, for
use of 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 or is inconsistent with this section, the Commission shall
immediately 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; and
``(ii) the provisions of this title shall not apply
to such cable operator or affiliate.
``(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. LIMITATION ON STATE AND LOCAL TAXATION OF DIRECT-TO-HOME
SATELLITE SERVICES.
(a) Authority to Impose Taxes and Fees on Direct-to-Home Satellite
Services.--
(1) In general.--A State may require a direct-to-home
satellite service provider who is subject to the personal
jurisdiction of the State to collect and remit a State sales
tax, a local sales tax, or both, with respect to direct-to-home
satellite services, if--
(A) the destination of such services is in the
State, and
(B) in a State in which both State and local sales
taxes are imposed, the State, in accordance with the
requirements of this section--
(i) requires the collection and remittance
of any applicable local sales taxes with
respect to direct-to-home satellite services,
and
(ii) collects and administers the local
sales taxes with respect to direct-to-home
satellite services, except in those local
taxing jurisdictions described in paragraph
(2)(A).
(2) Local taxing jurisdiction.--
(A) A State that exercises authority under this
section may require a direct-to-home satellite service
provider to collect and remit local sales taxes to the
local taxing jurisdiction if--
(i) as of the effective date of this
section, the local taxing jurisdiction imposes
and administers a local sales tax separate from
the sales tax imposed by the State, or
(ii) after the effective date of this
section, a local jurisdiction that does not
impose any local sales taxes as of the
effective date of this section is authorized to
impose a local sales tax.
(B) If, after the effective date of this section, a
local jurisdiction is authorized to administer a local
sales tax that the State is administering as of that
date, the State shall continue to collect and remit the
local sales tax authorized under this section in
accordance with paragraph (1)(B)(ii).
(3) Distribution of local sales taxes.--A State shall
distribute the local sales tax collected under the authority
granted by this section to local jurisdictions in accordance
with the requirements of State law governing the distribution
of local sales taxes.
(b) State and Local Law; Nondiscrimination.--
(1) State and local law.--A State may require a direct-to-
home satellite service provider to collect and remit State and
local sales taxes with respect to direct-to-home satellite
services only where the applicable law of the State or local
taxing jurisdiction imposes a sales tax.
(2) Nondiscrimination.--Except as otherwise provided in
this section, a State that exercises authority under this
section shall allow to direct-to-home satellite service
providers exemptions or other exceptions to State and local
sales taxes that the State or local taxing jurisdiction allows
under similar circumstances to persons located within the State
or local taxing jurisdiction.
(c) Exemption.--
(1) Exemption of other local tax or fee for services.--A
direct-to-home satellite service provider and its
representatives for the sale or distribution of direct-to-home
satellite services shall be exempt from collecting and
remitting any other local tax or fee (as defined by subsection
(d)(9)) imposed on direct-to-home satellite services in any
local taxing jurisdiction in which, during the 1-year period
ending on September 30 of the calendar year preceding the
calendar year in which the provision of direct-to-home
satellite services occurs, the direct-to-home satellite service
provider does not own or hold any interest in property or
maintain an office, and limits its business activities to no
more than--
(A) providing direct-to-home satellite services to
subscribers in the local taxing jurisdiction, and the
billing for and collection of the fees for such
services occur outside the local taxing jurisdiction;
and
(B) soliciting and placing orders for the sale of
direct-to-home satellite services through contractual
arrangements with, and on the premises of, retail
outlets and establishments, which orders are filled and
billed for from a point outside the local taxing
jurisdiction, regardless of where the subscriber makes
an initial payment for an initial subscription.
(2) No other effect.--Except as provided herein, this
section does not affect the authority of any State or local
taxing jurisdiction of any State otherwise to adopt, apply, and
administer any tax or method of taxation.
(d) Definitions.--For purposes of this section--
(1) Compensating use tax.--The term ``compensating use
tax'' means a tax imposed on or incident to the use or
consumption of direct-to-home satellite services within a State
or a local jurisdiction or other area of a State.
(2) Destination.--The term ``destination'' means the State
or local jurisdiction to which the direct-to-home satellite
service is delivered for viewing or other activity to which the
service is directed.
(3) Direct-to-home satellite service provider.--The term
``direct-to-home satellite service provider'' means a person
who provides direct-to-home satellite services.
(4) Direct-to-home satellite services.--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.
(5) Local taxing jurisdiction.--The term ``local taxing
jurisdiction'' means any municipality, city, county, township,
parish, transportation district, or assessment jurisdiction, or
any other political subdivision with the authority to impose a
tax or fee.
(6) Local sales tax.--The term ``local sales tax'' means a
sales or compensating use tax imposed by a local taxing
jurisdiction, whether administered by the State or the local
taxing jurisdiction.
(7) Sales tax.--The term ``sales tax'' means a tax,
including a compensating use tax, that is--
(A) imposed on or incident to the sale, purchase,
consumption, distribution, or other use of direct-to-
home satellite services as may be defined or specified
under the law imposing such tax, and
(B) measured by the amount of the sales price,
cost, charge, or gross receipts, or other value of or
for the services.
(8) State.--Notwithstanding any provision to the contrary
in this section, the term ``State'' means any of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, and any territory or possession of
the United States.
(9) Other local tax or fee.--The term ``other local tax or
fee'' means any local tax or fee that is not a sales tax, as
defined in paragraph (6) or (7), including such locally imposed
taxes and fees as an intangible tax, income tax, business
license tax, utility tax, privilege tax, gross receipts tax,
excise tax, franchise fees, telecommunications tax, or other
tax, license, or fee.
(e) Effective Date.--This section shall take effect on the date of
enactment of this Act.
SEC. 203. 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 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 or provides video programming over a common
carrier video platform, it need not use a separate
subsidiary 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 subsidize its
provision of video programming with revenues
from its telecommunications services.
``(B) To the extent that a Bell operating company
provides cable service as a cable operator, it shall
provide such service through a subsidiary that meets
the requirements of section 252, and shall meet the
requirements of clauses (i) and (ii) of subparagraph
(A).
``(C) Upon a finding by the Commission that the
requirement of a separate subsidiary 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.
``(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 video platform, with access
to the video 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 video 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.''.
(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 broadcast television stations 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) consistent with the other provisions of title VI of the
Communications Act of 1934 (47 U.S.C. 521 et seq.) 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. 204. CABLE ACT REFORM.
(a) 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.''.
(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.''.
(b) Discriminatory Programming Rates.--Section 628(c)(2)(B)(iii)
(47 U.S.C. 548(c)(2)(B)(iii)) is amended by striking ``scale, cost
savings, or other direct and legitimate economic benefits'' and
inserting ``scale or cost savings''.
(c) Effective Date.--The amendments made by this section take
effect on the date of enactment of this Act.
SEC. 205. POLE ATTACHMENTS.
(a) In General.--Section 224 (47 U.S.C. 224) is amended--
(1) by inserting after ``utility'' in subsection (a)(4) a
comma and the following: ``which attachment may be used by that
cable television system to provide cable service or any other
telecommunications service''; and
(2) by redesignating subsections (b), (c), and (d) as (c),
(d), and (e), respectively, and inserting the following after
subsection (a):
``(b)(1) A utility shall provide a cable television system with
nondiscriminatory access to any pole, duct, conduit, or right-of-way
owned or controlled by it.
``(2) For purposes of paragraph (1), the Commission shall, not
later than 1 year after the date of enactment of the Telecommunications
Act of 1995, prescribe regulations for ensuring that utilities charge
just, reasonable, and nondiscriminatory rates for pole attachments
provided to all telecommunications carriers and cable operators,
including such attachments used by cable television systems to provide
telecommunications services. The regulations--
``(A) shall recognize that the entire pole, duct, conduit,
or right-of-way other than the usable space is of equal benefit
to all attachments of entities that hold an ownership interest
in the pole, duct, conduit, or right-of-way and therefore
apportion the cost of the space other than the usable space
equally among all such attachments; and
``(B) shall recognize that an entity that obtains an
attachment through a license or other similar arrangement
benefits from the entire pole, duct, conduit, or right-of-way
other than the usable space in the same proportion as it
benefits from the usable space and therefore apportion to such
entity a portion of the cost of the space other than the usable
space in the same manner as the cost of usable space is
apportioned to such entity.''.
(b) Conforming Amendments.--Section 224 (47 U.S.C. 224), as amended
by subsection (a), is amended--
(1) by striking ``subsection (c)'' in subsection (c), as
redesignated by subsection (a)(3), and inserting ``subsection
(d)''; and
(2) by striking ``subsection (b)'' in subsection (e), as so
redesignated, and inserting ``subsection (c)''.
SEC. 206. 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 holding 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) SEC jurisdiction limited.--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, engaged in any activity described
in paragraph (1) to enforce any requirement with respect to
that Act, or approve or otherwise review any such activity,
including financing, investing in, acquiring, or maintaining
any interest in, or entering into affiliate transactions or
contracts.
(b) Prohibition of Cross-Subsidization.--Nothing in this section
precludes the Federal Energy Regulatory Commission or a State
commission from exercising its jurisdiction to the extent otherwise
authorized under applicable law with respect to prohibiting cross-
subsidization of any activity described in subsection (a)(1) by a
public-utility company which is an associate company of a registered
holding company.
(c) Separate Books Required.--Any subsidiary company, affiliate, or
associate company that is an associate company of a registered holding
company engaged in any activity described in subsection (a)(1)--
(1) shall maintain separate books, records, and accounts
that identify all transactions involving such activity; and
(2) shall provide access to those books, records, and
accounts to State commissions and the Federal Energy Regulatory
Commission.
(d) Independent Audit Authority for State Commissions.--
(1) State may request 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 with a subsidiary company,
affiliate, or associate company of that holding company
engaged in any activity described in subsection (a)(1),
may request that it have an independent audit performed, no
more frequently than on an annual basis, of transactions
between the public-utility company and the subsidiary company,
affiliate, or associate company engaged in that activity.
(2) Compliance by company required.--If a State commission
makes such a request, the company engaged in the activity shall
select an independent auditor and bear the 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 request for the audit was made by the State commission.
(e) 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.
(f) Effective Date.--This section takes effect on the date of
enactment of this Act.
SEC. 207. 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 its program service
which is intended for and available to the general public on
the existing or advanced television spectrum is in the public
interest. Any violation of the Commission rules applicable to
ancillary or supplementary services may 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 changing the
percentage set forth in subdivision (e)(2)(ii) from 25 percent
to 35 percent.
(2) 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.''.
(3) Conforming changes.--The Commission shall amend its
rules to make any changes necessary to reflect the effect of
this section on its rules.
(4) Effective date.--The Commission shall make the
modification required by paragraph (1) 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 (and
a hearing on the record if it finds that there are credible allegations
of serious violations by the licensee of this Act or the Commission's
rules or regulations), 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 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.
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 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
such services, exclusive of any universal
service support received for providing such
services.
``(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, a
telecommunications carrier may not jointly market telephone
exchange service or exchange access service purchased from such
company with interexchange 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
subsidiary or 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 subsidiary;
safeguards; and intralata toll dialing parity.--
``(A) Separate subsidiary; 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
subsidiary or 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) A State may not order the
implementation of 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.
``(d) Out-of-Region Services.--A Bell operating company or its
subsidiary or 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 upon the date of enactment of the Telecommunications Act of
1995.
``(e) Incidental Services.--
``(1) In general.--A Bell operating company may provide
interLATA services that are incidental to the purposes of--
``(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, or
``(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,
``(B) providing 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,
``(C) providing a 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 332(c) of this Act and with the
regulations prescribed by the Commission,
``(D) 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;
``(E) providing signaling information used in
connection with the provision of telephone exchange
service or exchange access service to another local
exchange carrier; or
``(F) 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 subparagraphs (C)
and (D) of paragraph (1) 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) Definitions.--As used in this section--
``(1) LATA.--The term `LATA' means a local access and
transport area as defined in United States v. Western Electric
Co., 569 F. Supp. 990 (United States District Court, District
of Columbia) and subsequent judicial orders relating thereto.
``(2) 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.
``(3) 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.''.
(b) Long Distance Access for Commercial Mobile Services.--
Notwithstanding any restriction or obligation imposed pursuant to the
Modification of Final Judgment prior to the date of enactment of this
Act, a person engaged in the provision of commercial mobile services,
insofar as such person is so engaged, shall not be required to provide
equal access to interexchange telecommunications carriers unless
required to do so under the Communications Act of 1934. In connection
with the provision of two-way switched voice service, such a person
shall not block a subscriber from obtaining access to the provider of
interexchange services of the subscriber's choice through the use of
the access code assigned by the Commission to each such provider.
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
thereunder.
``(2) Certain research and design arrangements; royalty
agreements.--Upon the enactment of the Telecommunications Act
of 1995, 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 Subsidiary; 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 subsidiary 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 subsidiary if each such purchasing
carrier--
``(A) does not manufacture telecommunications
equipment or have a subsidiary which manufactures
telecommunications equipment; or
``(B) agrees to make available, to the Bell
operating company that is the parent of the
manufacturing subsidiary 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) Sales to other local exchange carriers.--
``(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 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 manufacturing subsidiary 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.
``(D) 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 subsidiaries or 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) 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.
``(f) 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 carriers.--Any local
exchange carrier injured by an act or omission of a Bell
operating company or its manufacturing subsidiary or 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 local
exchange carrier may seek relief from the Commission pursuant
to sections 206 through 209.
``(g) 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).
``(h) 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 subsidiary or affiliate, in any
manufacturing activity in which any Bell operating company, subsidiary,
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 subsidiary 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 the right to provide
which is conditioned upon meeting such obligations
suspended.''.
``(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 this section 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.''.
(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 subsidiary or 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 3
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 subsidiaries and
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 subsidiaries and
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 subsidiaries or 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 punish 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 subsidiary or 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 that was engaged in providing those services as of December 31,
1994, to the extent that such company--
``(1) continues to provide those services through the
subsidiary or 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, and does not acquire, or enter into an
agreement to provide, the alarm monitoring service activities
of another entity.
``(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.''.
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.
(2) Consumer protection.--The Commission and the States
shall ensure that rates for residential telephone service
remain just, reasonable, and affordable as competition develops
for telephone exchange service and telephone exchange access
service. Where only a single carrier provides a service 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.
(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 upon
request.
(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.
SEC. 302. BIENNIAL REVIEW OF REGULATIONS.
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.''.
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.--The Commission may 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; 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) 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 10401 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.
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 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 assigned
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.''.
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) Standards.--Within 1 year after the date of enactment of the
Telecommunications Act of 1995, the Architectural and Transportation
Barriers Compliance Board described in section 504 of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12204) shall develop standards
for accessibility of telecommunications equipment, customer premises
equipment, and telecommunications services, in conjunction with the
National Telecommunications and Information Administration and the
National Institute of Standards and Technology. The Board shall review
and update the standards 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.
``(3) Studies.--The Commission shall undertake studies of
the current extent (as of the date of enactment of the
Telecommunications Act of 1995) of--
``(A) closed captioning of video programming and of
previously published video programming;
``(B) providers of video programming;
``(C) the cost and market for closed captioning;
``(D) strategies to improve competition and
innovation in the provision of closed captioning; and
``(E) such other matters as the Commission
considers relevant.
``(g) Regulations.--The Commission shall, not later than 18 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 standards 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 6 months after the date of enactment
of this Act, the Commission shall undertake 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 designated as an essential
telecommunications carrier under section 214(d) 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 service, 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.
``(2) Educational providers and libraries.--Any
telecommunications carrier shall, upon receiving a bona fide
request, provide universal service (as defined under section
253) at rates that are affordable and not higher than the
incremental cost thereof to elementary schools, secondary
schools, and libraries for telecommunications services that
permit such schools and libraries to provide or receive
educational services.
``(b) Support Payments.--If the Commission adopts rules for the
distribution of support payments for the preservation and advancement
of universal service, the Commission shall include the amount of the
support payments reasonably necessary to provide universal service
(including any costs related to the provision of comparable rates under
subsection (a)(1)) to public institutional telecommunications users in
any universal service support 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.''.
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.''.
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) in subsection (a)(1)--
(A) by striking out ``telephone'' in the matter
above subparagraph (A) and inserting
``telecommunications device'';
(B) by striking out subparagraph (A) and inserting
the following:
``(A) 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;'';
(C) by striking out subparagraph (B) and inserting
the following:
``(B) makes a telephone call or utilizes a
telecommunications device, whether or not conversation
or communications ensues, without disclosing his
identity and with intent to annoy, abuse, threaten, or
harass any person at the called number or who receives
the communication;'' and
(D) by striking out subparagraph (D) and inserting
the following:
``(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; or'';
(2) in subsection (a)(2), by striking ``telephone'' and
inserting ``telecommunications'' and by striking ``section''
and inserting ``subsection'';
(3) in subsection (b)(1)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) within the United States, by means of a
telecommunications device--
``(i) makes, creates, or solicits, and
``(ii) purposefully makes available,
any obscene communication for commercial purposes to
any person, regardless of whether the maker of such
communication placed the call or initiated the
communication; or''; and
(B) in subparagraph (B), by striking ``telephone
facility'' and inserting ``telecommunications
facility''; and
(4) in subsection (b)(2)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) within the United States, by means of
telephone or telecommunications device,
``(i) makes, creates, or solicits, and
``(ii) purposefully makes available
(directly or by recording device),
any indecent communication for commercial purposes
which is available to any person under 18 years of age
or to any other person without that person's consent,
regardless of whether the maker of such communication
placed the call; or''; and
(B) in subparagraph (B), by striking ``telephone
facility'' and inserting in lieu thereof
``telecommunications facility''.
(b) Penalties.--Section 223 (47 U.S.C. 223) is amended--
(1) by striking out ``$50,000'' each place it appears and
inserting ``$100,000''; and
(2) by striking ``six months'' each place it appears and
inserting ``2 years''.
(c) Prohibition on Provision of Access.--Section 223(c)(1) (47
U.S.C. 223(c)(1)) is amended by striking ``telephone'' and inserting
``telecommunications device''.
(d) Additional Defenses.--Section 223 (47 U.S.C. 223) is amended by
adding at the end the following:
``(d) Additional Defenses; Restrictions on Access; Judicial
Remedies Respecting Restrictions.--
``(1) No person shall be held to have violated this section
with respect to any action by that person or a system under his
control that is limited solely to the provision of access,
including transmission, downloading, intermediate storage,
navigational tools, and related capabilities not involving the
creation or alteration of the content of the communications,
for another person's communications to or from a service,
facility, system, or network not under that person's control.
``(2) It is a defense to prosecution under subsections
(a)(2), (b)(1)(B), and (b)(2)(B) that a defendant lacked
editorial control over the communication specified in this
section.
``(3) It is a defense to prosecution under subsections
(a)(2), (b)(1)(B), and (b)(2)(B) that a defendant has taken
good faith, reasonable steps, as appropriate--
``(A) to provide users with the means to restrict
access to communications described in this section;
``(B) provide users with warnings concerning the
potential for access to such communications;
``(C) to respond to complaints from those who are
subjected to such communications;
``(D) to provide mechanisms to enforce a provider's
terms of service governing such communications; or
``(E) to implement such other measures as the
Commission may prescribe to carry out the purposes of
this paragraph. Nothing in this section in and of
itself shall be construed to treat enhanced information
services as common carriage.
``(4) In addition to other defenses authorized under this
section, it shall be a defense to prosecution under subsection
(b) that a defendant is not engaged in a commercial activity
that has as a predominant purpose an activity specified in that
subsection.
``(5) No cause of action may be brought in any court or
administrative agency against any person on account of any
action which 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. The preceding sentence shall not
apply where the good faith defenses under subsection (c)(2)
apply.
``(6) No State or local government may impose any liability
in connection with a violation described in subsection (a)(2),
(b)(1)(B), (b)(2)(B) that is inconsistent with the treatment of
those violations 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 obligations on the provision of interstate
services.
``(e) Knowingly Defined.--For purposes of subsections (a) and (b),
the term `knowingly' means an intentional act with actual knowledge of
the specific content of the communication specified in this section to
another person.''.
(e) Conforming Amendment.--The section heading for section 223 is
amended to read as follows:
``SEC. 223. OBSCENE OR HARASSING UTILIZATION OF TELECOMMUNICATIONS
DEVICES AND FACILITIES IN THE DISTRICT OF COLUMBIA OR IN
INTERSTATE OR FOREIGN COMMUNICATIONS''.
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. INTERCEPTION AND DISCLOSURE OF ELECTRONIC COMMUNICATIONS.
Section 2511 of title 18, United States Code, is amended--
(1) in paragraph (1)--
(A) by striking ``wire, oral, or electronic
communication'' each place it appears and inserting
``wire, oral, electronic, or digital communication'',
and
(B) in subdivision (b), by striking ``oral
communication'' in the matter above clause (i) and
inserting ``communication''; and
(2) in paragraph (2)(a), by striking ``wire or electronic
communication service'' each place it appears (other than in
the second sentence) and inserting ``wire, electronic, or
digital communication service''.
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. 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''.