TELECOMMUNICATIONS ACT OF 1996
TELECOMMUNICATIONS ACT OF 1996
Public Law 104–104, as amended
TELECOMMUNICATIONS ACT OF 1996
104
115–141
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
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Telecommunications Act of 1996
959
104
1996-02-08
TELECOMMUNICATIONS ACT OF 19961
[Public Law 104–104; Approved February 8, 1996]
[As Amended Through P.L. 115–141, Enacted March 23, 2018]
[Currency: This publication is a compilation of the text of Public Law 104–104. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]

AN ACT
To promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers and encourage the rapid deployment of new telecommunications technologies.
* * * * * * *
^1
In general, the Telecommunications Act of 1996 contained amendments to the Communications Act of 1934 that are incorporated elsewhere in this compilation. This portion of this compilation contains the provisions of the Telecommunications Act of 1996 that did not amend other statutes.
SEC. 3.

DEFINITIONS.
(a) * * * * * * * * * *
(b)
[47 U.S.C. 153 nt]

Common Terminology.—
Except as otherwise provided in this Act, the terms used in this Act have the meanings provided in section 3 of the Communications Act of 1934 (47 U.S.C. 153), as amended by this section.
* * * * * * *
TITLE II—

BROADCAST SERVICES
* * * * * * *
SEC. 202.

BROADCAST OWNERSHIP.
(a)

National Radio Station Ownership Rule Changes Required.—
The Commission shall modify section 73.3555 of its regulations (47 C.F.R. 73.3555) by eliminating any provisions limiting the number of AM or FM broadcast stations which may be owned or controlled by one entity nationally.
(b)

Local Radio Diversity.—
(1)

Applicable caps.—
The Commission shall revise section 73.3555(a) of its regulations (47 C.F.R. 73.3555) to provide that—
(A)
in a radio market with 45 or more commercial radio stations, a party may own, operate, or control up to 8 commercial radio stations, not more than 5 of which are in the same service (AM or FM);
(B)
in a radio market with between 30 and 44 (inclusive) commercial radio stations, a party may own, operate, or control up to 7 commercial radio stations, not more than 4 of which are in the same service (AM or FM);
(C)
in a radio market with between 15 and 29 (inclusive) commercial radio stations, a party may own, operate, or control up to 6 commercial radio stations, not more than 4 of which are in the same service (AM or FM); and
(D)
in a radio market with 14 or fewer commercial radio stations, a party may own, operate, or control up to 5 commercial radio stations, not more than 3 of which are in the same service (AM or FM), except that a party may not own, operate, or control more than 50 percent of the stations in such market.
(2)

Exception.—
Notwithstanding any limitation authorized by this subsection, the Commission may permit a person or entity to own, operate, or control, or have a cognizable interest in, radio broadcast stations if the Commission determines that such ownership, operation, control, or interest will result in an increase in the number of radio broadcast stations in operation.
(c)

Television Ownership Limitations.—
(1)

National ownership limitations.—
The Commission shall modify its rules for multiple ownership set forth in section 73.3555 of its regulations (47 C.F.R. 73.3555)—
(A)
by eliminating the restrictions on the number of television stations that a person or entity may directly or indirectly own, operate, or control, or have a cognizable interest in, nationwide; and
(B)
by increasing the national audience reach limitation for television stations to 39 percent.
(2)

Local ownership limitations.—
The Commission shall conduct a rulemaking proceeding to determine whether to retain, modify, or eliminate its limitations on the number of television stations that a person or entity may own, operate, or control, or have a cognizable interest in, within the same television market.
(3)

Divestiture.—
A person or entity that exceeds the 39 percent national audience reach limitation for television stations in paragraph (1)(B) through grant, transfer, or assignment of an additional license for a commercial television broadcast station shall have not more than 2 years after exceeding such limitation to come into compliance with such limitation. This divestiture requirement shall not apply to persons or entities that exceed the 39 percent national audience reach limitation through population growth.
(4)

Forbearance.—
Section 10 of the Communications Act of 1934 (47 U.S.C. 160) shall not apply to any person or entity that exceeds the 39 percent national audience reach limitation for television stations in paragraph (1)(B);
(d)

Relaxation of One-To-A-Market.—
With respect to its enforcement of its one-to-a-market ownership rules under section 73.3555 of its regulations, the Commission shall extend its waiver policy to any of the top 50 markets, consistent with the public interest, convenience, and necessity.
(e)

Dual Network Changes.—
The Commission shall revise section 73.658(g) of its regulations (47 C.F.R. 658(g)) to permit a television broadcast station to affiliate with a person or entity that maintains 2 or more networks of television broadcast stations unless such dual or multiple networks are composed of—
(1)
two or more persons or entities that, on the date of enactment of the Telecommunications Act of 1996, are “networks” as defined in section 73.3613(a)(1) of the Commission's regulations (47 C.F.R. 73.3613(a)(1)); or
(2)
any network described in paragraph (1) and an English-language program distribution service that, on such date, provides 4 or more hours of programming per week on a national basis pursuant to network affiliation arrangements with local television broadcast stations in markets reaching more than 75 percent of television homes (as measured by a national ratings service).
(f)

Cable Cross Ownership.—
(1)

Elimination of restrictions.—
The Commission shall revise section 76.501 of its regulations (47 C.F.R. 76.501) to permit a person or entity to own or control a network of broadcast stations and a cable system.
(2)

Safeguards against discrimination.—
The Commission shall revise such regulations if necessary to ensure carriage, channel positioning, and nondiscriminatory treatment of nonaffiliated broadcast stations by a cable system described in paragraph (1).
(g)

Local Marketing Agreements.—
Nothing in this section shall be construed to prohibit the origination, continuation, or renewal of any television local marketing agreement that is in compliance with the regulations of the Commission.
(h)

Further Commission Review.—
The Commission shall review its rules adopted pursuant to this section and all of its ownership rules quadrennially as part of its regulatory reform review under section 11 of the Communications Act of 1934 and shall determine whether any of such rules are necessary in the public interest as the result of competition. The Commission shall repeal or modify any regulation it determines to be no longer in the public interest.
* * * * * * *
This subsection does not apply to any rules relating to the 39 percent national audience reach limitation in subsection (c)(1)(B).
SEC. 207.
[47 U.S.C. 303 nt]

RESTRICTIONS ON OVER-THE-AIR RECEPTION DEVICES.
Within 180 days after the date of enactment of this Act, the Commission shall, pursuant to section 303 of the Communications Act of 1934, promulgate regulations to prohibit restrictions that impair a viewer's ability to receive video programming services through devices designed for over-the-air reception of television broadcast signals, multichannel multipoint distribution service, or direct broadcast satellite services.
* * * * * * *
TITLE III—

CABLE SERVICES
* * * * * * *
SEC. 302.

CABLE SERVICE PROVIDED BY TELEPHONE COMPANIES.
(a) * * * * * * * * * *
(b)

Conforming and Technical Amendments.—
* * * * * * *
(3)

Termination of video-dialtone regulations.—
The Commission's regulations and policies with respect to video dialtone requirements issued in CC Docket No. 87–266 shall cease to be effective on the date of enactment of this Act. This paragraph shall not be construed to require the termination of any video-dialtone system that the Commission has approved before the date of enactment of this Act.
* * * * * * *
TITLE IV—

REGULATORY REFORM
* * * * * * *
SEC. 402.

BIENNIAL REVIEW OF REGULATIONS; REGULATORY RELIEF.
(a) * * * * * * * * * *
(b)

Regulatory Relief.—
* * * * * * *
(2)
[47 U.S.C. 214 nt]

Extensions of lines under section 214; armis reports.—
The Commission shall permit any common carrier—
(A)
to be exempt from the requirements of section 214 of the Communications Act of 1934 for the extension of any line; and
(B)
to file cost allocation manuals and ARMIS reports annually, to the extent such carrier is required to file such manuals or reports.
(3)
[47 U.S.C. 204 nt]

Forbearance authority not limited.—
Nothing in this subsection shall be construed to limit the authority of the Commission to waive, modify, or forbear from applying any of the requirements to which reference is made in paragraph (1)2 under any other provision of this Act or other law.
^2
Paragraph (1) contained amendments to sections 204(a) and 208(b) of the Communications Act of 1934.
(4)
[47 U.S.C. 204 nt]

Effective date of amendments.—
The amendments made by paragraph (1)2 of this subsection shall apply with respect to any charge, classification, regulation, or practice filed on or after one year after the date of enactment of this Act.
(c)

Classification of Carriers.—
In classifying carriers according to section 32.11 of its regulations (47 C.F.R. 32.11) and in establishing reporting requirements pursuant to part 43 of its regulations (47 C.F.R. part 43) and section 64.903 of its regulations (47 C.F.R. 64.903), the Commission shall adjust the revenue requirements to account for inflation as of the release date of the Commission's Report and Order in CC Docket No. 91–141, and annually thereafter. This subsection shall take effect on the date of enactment of this Act.
* * * * * * *
TITLE V—

OBSCENITY AND VIOLENCE
* * * * * * *
Subtitle B—

Violence
SEC. 551.

PARENTAL CHOICE IN TELEVISION PROGRAMMING.
(a)
[47 U.S.C. 303 nt]

Findings.—
The Congress makes the following findings:
(1)
Television influences children's perception of the values and behavior that are common and acceptable in society.
(2)
Television station operators, cable television system operators, and video programmers should follow practices in connection with video programming that take into consideration that television broadcast and cable programming has established a uniquely pervasive presence in the lives of American children.
(3)
The average American child is exposed to 25 hours of television each week and some children are exposed to as much as 11 hours of television a day.
(4)
Studies have shown that children exposed to violent video programming at a young age have a higher tendency for violent and aggressive behavior later in life than children not so exposed, and that children exposed to violent video programming are prone to assume that acts of violence are acceptable behavior.
(5)
Children in the United States are, on average, exposed to an estimated 8,000 murders and 100,000 acts of violence on television by the time the child completes elementary school.
(6)
Studies indicate that children are affected by the pervasiveness and casual treatment of sexual material on television, eroding the ability of parents to develop responsible attitudes and behavior in their children.
(7)
Parents express grave concern over violent and sexual video programming and strongly support technology that would give them greater control to block video programming in the home that they consider harmful to their children.
(8)
There is a compelling governmental interest in empowering parents to limit the negative influences of video programming that is harmful to children.
(9)
Providing parents with timely information about the nature of upcoming video programming and with the technological tools that allow them easily to block violent, sexual, or other programming that they believe harmful to their children is a nonintrusive and narrowly tailored means of achieving that compelling governmental interest.
(b)

Establishment of Television Rating Code.—
(1) * * * * * * * * * *
(2)
[47 U.S.C. 303 nt]

Advisory committee requirements.—
In establishing an advisory committee for purposes of the amendment made by paragraph (1)3 of this subsection, the Commission shall—
^3
Paragraph (1) of subsection (b) added subsection (w) to section 303 of the Communications Act of 1934.
(A)
ensure that such committee is composed of parents, television broadcasters, television programming producers, cable operators, appropriate public interest groups, and other interested individuals from the private sector and is fairly balanced in terms of political affiliation, the points of view represented, and the functions to be performed by the committee;
(B)
provide to the committee such staff and resources as may be necessary to permit it to perform its functions efficiently and promptly; and
(C)
require the committee to submit a final report of its recommendations within one year after the date of the appointment of the initial members.
* * * * * * *
(e)
[47 U.S.C. 303 nt]

Applicability and Effective Dates.—
(1)

Applicability of rating provision.—
The amendment made by subsection (b)3 of this section shall take effect 1 year after the date of enactment of this Act, but only if the Commission determines, in consultation with appropriate public interest groups and interested individuals from the private sector, that distributors of video programming have not, by such date—
(A)
established voluntary rules for rating video programming that contains sexual, violent, or other indecent material about which parents should be informed before it is displayed to children, and such rules are acceptable to the Commission; and
(B)
agreed voluntarily to broadcast signals that contain ratings of such programming.
(2)

Effective date of manufacturing provision.—
In prescribing regulations to implement the amendment made by subsection (c),4 the Federal Communications Commission shall, after consultation with the television manufacturing industry, specify the effective date for the applicability of the requirement to the apparatus covered by such amendment, which date shall not be less than two years after the date of enactment of this Act.
^4
Subsection (c) added subsection (x) to section 303 of the Communications Act of 1934.
SEC. 552.
[47 U.S.C. 303 nt]

TECHNOLOGY FUND.
It is the policy of the United States to encourage broadcast television, cable, satellite, syndication, other video programming distributors, and relevant related industries (in consultation with appropriate public interest groups and interested individuals from the private sector) to—
(1)
establish a technology fund to encourage television and electronics equipment manufacturers to facilitate the development of technology which would empower parents to block programming they deem inappropriate for their children and to encourage the availability thereof to low income parents;
(2)
report to the viewing public on the status of the development of affordable, easy to use blocking technology; and
(3)
establish and promote effective procedures, standards, systems, advisories, or other mechanisms for ensuring that users have easy and complete access to the information necessary to effectively utilize blocking technology and to encourage the availability thereof to low income parents.
Subtitle C—

Judicial Review
SEC. 561.
[47 U.S.C. 223 nt]

EXPEDITED REVIEW.
(a)

Three-Judge District Court Hearing.—
Notwithstanding any other provision of law, any civil action challenging the constitutionality, on its face, of this title or any amendment made by this title, or any provision thereof, shall be heard by a district court of 3 judges convened pursuant to the provisions of section 2284 of title 28, United States Code.
(b)

Appellate Review.—
Notwithstanding any other provision of law, an interlocutory or final judgment, decree, or order of the court of 3 judges in an action under subsection (a) holding this title or an amendment made by this title, or any provision thereof, unconstitutional shall be reviewable as a matter of right by direct appeal to the Supreme Court. Any such appeal shall be filed not more than 20 days after entry of such judgment, decree, or order.
TITLE VI—

EFFECT ON OTHER LAWS
SEC. 601.
[47 U.S.C. 152 nt]

APPLICABILITY OF CONSENT DECREES AND OTHER LAW.
(a)

Applicability of Amendments to Future Conduct.—
(1)

AT&T consent decree.—
Any conduct or activity that was, before the date of enactment of this Act, subject to any restriction or obligation imposed by the AT&T Consent Decree shall, on and after such date, be subject to the restrictions and obligations imposed by the Communications Act of 1934 as amended by this Act and shall not be subject to the restrictions and the obligations imposed by such Consent Decree.
(2)

GTE consent decree.—
Any conduct or activity that was, before the date of enactment of this Act, subject to any restriction or obligation imposed by the GTE Consent Decree shall, on and after such date, be subject to the restrictions and obligations imposed by the Communications Act of 1934 as amended by this Act and shall not be subject to the restrictions and the obligations imposed by such Consent Decree.
(3)

McCaw consent decree.—
Any conduct or activity that was, before the date of enactment of this Act, subject to any restriction or obligation imposed by the McCaw Consent Decree shall, on and after such date, be subject to the restrictions and obligations imposed by the Communications Act of 1934 as amended by this Act and subsection (d) of this section and shall not be subject to the restrictions and the obligations imposed by such Consent Decree.
(b)

Antitrust Laws.—
(1)

Savings clause.—
Except as provided in paragraphs (2) and (3), nothing in this Act or the amendments made by this Act shall be construed to modify, impair, or supersede the applicability of any of the antitrust laws.
(2)

Repeal.—
Subsection (a) of section 221 (47 U.S.C. 221(a)) is repealed.
(3)

Clayton act.—
Section 7 of the Clayton Act (15 U.S.C. 18) is amended in the last paragraph by striking “Federal Communications Commission,”.
(c)

Federal, State, and Local Law.—
(1)

No implied effect.—
This Act and the amendments made by this Act shall not be construed to modify, impair, or supersede Federal, State, or local law unless expressly so provided in such Act or amendments.
(2)

State tax savings provision.—
Notwithstanding paragraph (1), nothing in this Act or the amendments made by this Act shall be construed to modify, impair, or supersede, or authorize the modification, impairment, or supersession of, any State or local law pertaining to taxation, except as provided in sections 622 and 653(c) of the Communications Act of 1934 and section 602 of this Act.
(d)

Commercial Mobile Service Joint Marketing.—
Notwithstanding section 22.903 of the Commission's regulations (47 C.F.R. 22.903) or any other Commission regulation, a Bell operating company or any other company may, except as provided in sections 271(e)(1) and 272 of the Communications Act of 1934 as amended by this Act as they relate to wireline service, jointly market and sell commercial mobile services in conjunction with telephone exchange service, exchange access, intraLATA telecommunications service, interLATA telecommunications service, and information services.
(e)

Definitions.—
As used in this section:
(1)

AT&T consent decree.—
The term “AT&T Consent Decree” means the order entered August 24, 1982, in the antitrust action styled United States v. Western Electric, Civil Action No. 82–0192, in the United States District Court for the District of Columbia, and includes any judgment or order with respect to such action entered on or after August 24, 1982.
(2)

GTE consent decree.—
The term “GTE Consent Decree” means the order entered December 21, 1984, as restated January 11, 1985, in the action styled United States v. GTE Corp., Civil Action No. 83–1298, in the United States District Court for the District of Columbia, and any judgment or order with respect to such action entered on or after December 21, 1984.
(3)

McCaw consent decree.—
The term “McCaw Consent Decree” means the proposed consent decree filed on July 15, 1994, in the antitrust action styled United States v. AT&T Corp. and McCaw Cellular Communications, Inc., Civil Action No. 94–01555, in the United States District Court for the District of Columbia. Such term includes any stipulation that the parties will abide by the terms of such proposed consent decree until it is entered and any order entering such proposed consent decree.
(4)

Antitrust laws.—
The term “antitrust laws” has the meaning given it in subsection (a) of the first section of the Clayton Act (15 U.S.C. 12(a)), except that such term includes the Act of June 19, 1936 (49 Stat. 1526; 15 U.S.C. 13 et seq.), commonly known as the Robinson-Patman Act, and section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to the extent that such section 5 applies to unfair methods of competition.
SEC. 602.
[47 U.S.C. 152 nt]

PREEMPTION OF LOCAL TAXATION WITH RESPECT TO DIRECT-TO-HOME SERVICES.
(a)

Preemption.—
A provider of direct-to-home satellite service shall be exempt from the collection or remittance, or both, of any tax or fee imposed by any local taxing jurisdiction on direct-to-home satellite service.
(b)

Definitions.—
For the purposes of this section—
(1)

Direct-to-home satellite service.—
The term “direct-to-home satellite service” means only programming transmitted or broadcast by satellite directly to the subscribers' premises without the use of ground receiving or distribution equipment, except at the subscribers' premises or in the uplink process to the satellite.
(2)

Provider of direct-to-home satellite service.—
For purposes of this section, a “provider of direct-to-home satellite service” means a person who transmits, broadcasts, sells, or distributes direct-to-home satellite service.
(3)

Local taxing jurisdiction.—
The term “local taxing jurisdiction” means any municipality, city, county, township, parish, transportation district, or assessment jurisdiction, or any other local jurisdiction in the territorial jurisdiction of the United States with the authority to impose a tax or fee, but does not include a State.
(4)

State.—
The term “State” means any of the several States, the District of Columbia, or any territory or possession of the United States.
(5)

Tax or fee.—
The terms “tax” and “fee” mean any local sales tax, local use tax, local intangible tax, local income tax, business license tax, utility tax, privilege tax, gross receipts tax, excise tax, franchise fees, local telecommunications tax, or any other tax, license, or fee that is imposed for the privilege of doing business, regulating, or raising revenue for a local taxing jurisdiction.
(c)

Preservation of State Authority.—
This section shall not be construed to prevent taxation of a provider of direct-to-home satellite service by a State or to prevent a local taxing jurisdiction from receiving revenue derived from a tax or fee imposed and collected by a State.
TITLE VII—

MISCELLANEOUS PROVISIONS
* * * * * * *
SEC. 704.

FACILITIES SITING; RADIO FREQUENCY EMISSION STANDARDS.
(a) * * * * * * * * * *
(b)

Radio Frequency Emissions.—
Within 180 days after the enactment of this Act, the Commission shall complete action in ET Docket 93–62 to prescribe and make effective rules regarding the environmental effects of radio frequency emissions.
(c)
[47 U.S.C. 332 nt]

Availability of Property.—
Within 180 days of the enactment of this Act, the President or his designee shall prescribe procedures by which Federal departments and agencies may make available on a fair, reasonable, and nondiscriminatory basis, property, rights-of-way, and easements under their control for the placement of new telecommunications services that are dependent, in whole or in part, upon the utilization of Federal spectrum rights for the transmission or reception of such services. These procedures may establish a presumption that requests for the use of property, rights-of-way, and easements by duly authorized providers should be granted absent unavoidable direct conflict with the department or agency's mission, or the current or planned use of the property, rights-of-way, and easements in question. Reasonable fees may be charged to providers of such telecommunications services for use of property, rights-of-way, and easements. The Commission shall provide technical support to States to encourage them to make property, rights-of-way, and easements under their jurisdiction available for such purposes.
* * * * * * *
SEC. 706.
[47 U.S.C. 1302]

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, measures that promote competition in the local telecommunications market, or other regulating methods that remove barriers to infrastructure investment.
(b)

Inquiry.—
The Commission shall, within 30 months after the date of enactment of this Act, and annually 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 to accelerate deployment of such capability by removing barriers to infrastructure investment and by promoting competition in the telecommunications market.
(c)

Demographic Information for Unserved Areas.—
As part of the inquiry required by subsection (b), the Commission shall compile a list of geographical areas that are not served by any provider of advanced telecommunications capability (as defined by section 706(c)(1) of the Telecommunications Act of 1996 (47 U.S.C. 157 note)) and to the extent that data from the Census Bureau is available, determine, for each such unserved area—
(1)
the population;
(2)
the population density; and
(3)
the average per capita income.
(d)

Definitions.—
For purposes of this subsection:
(1)

Advanced telecommunications capability.—
The term “advanced telecommunications capability” is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.
(2)

Elementary and secondary schools.—
The term “elementary and secondary schools” means elementary and secondary schools, as defined in section 8101 of the Elementary and Secondary Education Act of 1965.
* * * * * * *
SEC. 708.

NATIONAL EDUCATION TECHNOLOGY FUNDING CORPORATION.
(a)

Findings; Purpose.—
(1)

Findings.—
The Congress finds as follows:
(A)

Corporation.—
There has been established in the District of Columbia a private, nonprofit corporation known as the National Education Technology Funding Corporation which is not an agency or independent establishment of the Federal Government.
(B)

Board of directors.—
The Corporation is governed by a Board of Directors, as prescribed in the Corporation's articles of incorporation, consisting of 15 members, of which—
(i)
five members are representative of public agencies representative of schools and public libraries;
(ii)
five members are representative of State government, including persons knowledgeable about State finance, technology and education; and
(iii)
five members are representative of the private sector, with expertise in network technology, finance and management.
(C)

Corporate purposes.—
The purposes of the Corporation, as set forth in its articles of incorporation, are—
(i)
to leverage resources and stimulate private investment in education technology infrastructure;
(ii)
to designate State education technology agencies to receive loans, grants or other forms of assistance from the Corporation;
(iii)
to establish criteria for encouraging States to—
(I)
create, maintain, utilize and upgrade interactive high capacity networks capable of providing audio, visual and data communications for elementary schools, secondary schools and public libraries;
(II)
distribute resources to assure equitable aid to all elementary schools and secondary schools in the State and achieve universal access to network technology; and
(III)
upgrade the delivery and development of learning through innovative technology-based instructional tools and applications;
(iv)
to provide loans, grants and other forms of assistance to State education technology agencies, with due regard for providing a fair balance among types of school districts and public libraries assisted and the disparate needs of such districts and libraries;
(v)
to leverage resources to provide maximum aid to elementary schools, secondary schools and public libraries; and
(vi)
to encourage the development of education telecommunications and information technologies through public-private ventures, by serving as a clearinghouse for information on new education technologies, and by providing technical assistance, including assistance to States, if needed, to establish State education technology agencies.
(2)

Purpose.—
The purpose of this section is to recognize the Corporation as a nonprofit corporation operating under the laws of the District of Columbia, and to provide authority for Federal departments and agencies to provide assistance to the Corporation.
(b)

Definitions.—
For the purpose of this section—
(1)
the term “Corporation” means the National Education Technology Funding Corporation described in subsection (a)(1)(A);
(2)
the terms “elementary school” and “secondary school” have the same meanings given such terms in section 14101 of the Elementary and Secondary Education Act of 1965; and
(3)
the term “public library” has the same meaning given such term in section 3 of the Library Services and Construction Act.
(c)

Assistance for Education Technology Purposes.—
(1)

Receipt by corporation.—
Notwithstanding any other provision of law, in order to carry out the corporate purposes described in subsection (a)(1)(C), the Corporation shall be eligible to receive discretionary grants, contracts, gifts, contributions, or technical assistance from any Federal department or agency, to the extent otherwise permitted by law.
(2)

Agreement.—
In order to receive any assistance described in paragraph (1) the Corporation shall enter into an agreement with the Federal department or agency providing such assistance, under which the Corporation agrees—
(A)
to use such assistance to provide funding and technical assistance only for activities which the Board of Directors of the Corporation determines are consistent with the corporate purposes described in subsection (a)(1)(C);
(B)
to review the activities of State education technology agencies and other entities receiving assistance from the Corporation to assure that the corporate purposes described in subsection (a)(1)(C) are carried out;
(C)
that no part of the assets of the Corporation shall accrue to the benefit of any member of the Board of Directors of the Corporation, any officer or employee of the Corporation, or any other individual, except as salary or reasonable compensation for services;
(D)
that the Board of Directors of the Corporation will adopt policies and procedures to prevent conflicts of interest;
(E)
to maintain a Board of Directors of the Corporation consistent with subsection (a)(1)(B);
(F)
that the Corporation, and any entity receiving the assistance from the Corporation, are subject to the appropriate oversight procedures of the Congress; and
(G)
to comply with—
(i)
the audit requirements described in subsection (d); and
(ii)
the reporting and testimony requirements described in subsection (e).
(3)

Construction.—
Nothing in this section shall be construed to establish the Corporation as an agency or independent establishment of the Federal Government, or to establish the members of the Board of Directors of the Corporation, or the officers and employees of the Corporation, as officers or employees of the Federal Government.
(d)

Audits.—
(1)

Audits by independent certified public accountants.—
(A)

In general.—
The Corporation's financial statements shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants who are certified by a regulatory authority of a State or other political subdivision of the United States. The audits shall be conducted at the place or places where the accounts of the Corporation are normally kept. All books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the Corporation and necessary to facilitate the audit shall be made available to the person or persons conducting the audits, and full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians shall be afforded to such person or persons.
(B)

Reporting requirements.—
The report of each annual audit described in subparagraph (A) shall be included in the annual report required by subsection (e)(1).
(2)

Recordkeeping requirements; audit and examination of books.—
(A)

Recordkeeping requirements.—
The Corporation shall ensure that each recipient of assistance from the Corporation keeps—
(i)
separate accounts with respect to such assistance;
(ii)
such records as may be reasonably necessary to fully disclose—
(I)
the amount and the disposition by such recipient of the proceeds of such assistance;
(II)
the total cost of the project or undertaking in connection with which such assistance is given or used; and
(III)
the amount and nature of that portion of the cost of the project or undertaking supplied by other sources; and
(iii)
such other records as will facilitate an effective audit.
(B)

Audit and examination of books.—
The Corporation shall ensure that the Corporation, or any of the Corporation's duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of any recipient of assistance from the Corporation that are pertinent to such assistance. Representatives of the Comptroller General shall also have such access for such purpose.
(e)

Annual Report; Testimony to the Congress.—
(1)

Annual report.—
Not later than April 30 of each year, the Corporation shall publish an annual report for the preceding fiscal year and submit that report to the President and the Congress. The report shall include a comprehensive and detailed evaluation of the Corporation's operations, activities, financial condition, and accomplishments under this section and may include such recommendations as the Corporation deems appropriate.
(2)

Testimony before congress.—
The members of the Board of Directors, and officers, of the Corporation shall be available to testify before appropriate committees of the Congress with respect to the report described in paragraph (1), the report of any audit made by the Comptroller General pursuant to this section, or any other matter which any such committee may determine appropriate.
SEC. 709.

REPORT ON THE USE OF ADVANCED TELECOMMUNICATIONS SERVICES FOR MEDICAL PURPOSES.
The Secretary of Commerce, in consultation with the Secretary of Health and Human Services and other appropriate departments and agencies, shall submit a report to the Committee on Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate concerning the activities of the Joint Working Group on Telemedicine, together with any findings reached in the studies and demonstrations on telemedicine funded by the Public Health Service or other Federal agencies. The report shall examine questions related to patient safety, the efficacy and quality of the services provided, and other legal, medical, and economic issues related to the utilization of advanced telecommunications services for medical purposes. The report shall be submitted to the respective committees by January 31, 1997.