[Congressional Record Volume 141, Number 94 (Friday, June 9, 1995)]
[Senate]
[Page S8085]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



[[Page S8085]]

                   PROPOSED SIMON AMENDMENT TO S. 652

  Mr. SIMON. Mr. President, today I submit an amendment that I plan to 
offer to S. 652, the telecommunications bill next week. The amendment 
will ensure that when the Regional Bell Operating Companies enter the 
business of manufacturing, the consumer will be protected against 
possible price increases as a result of cross-subsidization and self-
dealing. While some of us may disagree on the wisdom of allowing the 
Bell companies into manufacturing, no one should disagree on the need 
to ensure the consumer is protected against possible rate increases.
  I applaud the authors of the legislation for including certain 
safeguards already in the legislation. My amendment would take these 
protections one step further by requiring an audit conducted at the 
direction of the State. The language, which is based on last year's 
telecommunications bill, is simple and straightforward.
  I hope that my colleagues will agree and adopt this important 
amendment. I ask unanimous consent that my amendment be printed in the 
Record.
       On page 31, between lines 18 and 19, insert the following:
       ``(d) Biennial Audit.--
       ``(1) General requirement.--A company required to operate a 
     separate subsidiary under this section shall obtain and pay 
     for an audit every 2 years conducted by an independent 
     auditor selected by, and working at the direction of, the 
     State commission of each State in which such company provides 
     service, to determine whether such company has complied with 
     this section and the regulations promulgated under this 
     section, and particularly whether such company has complied 
     with the separate accounting requirements under subsection 
     (b).
       ``(2) Results submitted to commission; state commissions.--
     The auditor described in paragraph (1) shall submit the 
     results of the audit to the Commission and to the State 
     commission of each State in which the company audited 
     provides service, which shall make such results available for 
     public inspection. Any party may submit comments on the final 
     audit report.
       ``(3) Regulations.--The audit required under paragraph (1) 
     shall be conducted in accordance with procedures established 
     by regulation by the State commission of the State in which 
     such company provides service. The regulations shall include 
     requirements that--
       ``(A) each audit submitted to the Commission and to the 
     State commission is certified by the auditor responsible for 
     conducting the audit; and
       ``(B) each audit shall be certified by the person who 
     conducted the audit and shall identify with particularly any 
     qualifications or limitations on such certification and any 
     other information relevant to the enforcement of the 
     requirements of this section.
       ``(4) Commission review.--The Commission shall periodically 
     review and analyze the audits submitted to it under this 
     subsection.
       ``(5) Access to documents.--For purposes of conducting 
     audits and reviews under this subsection--
       ``(A) the independent auditor, the Commission, and the 
     State commission shall have access to the financial accounts 
     and records of each company and of its subsidiaries necessary 
     to verify transactions conducted with that company that are 
     relevant to the specific activities permitted under this 
     section and that are necessary for the regulation of rates;
       ``(B) the Commission and the State commission shall have 
     access to the working papers and supporting materials of any 
     auditor who performs an audit under this section; and
       ``(C) the State commission shall implement appropriate 
     procedures to ensure the protection of any proprietary 
     information submitted to it under this section.
       On page 31, line 19, strike out ``(d)'' and insert in lieu 
     thereof ``(e)''.
       On page 32, line 10, strike out ``(e)'' and insert in lieu 
     thereof ``(f)''.
       On page 33, line 12, strike out ``(f)'' and insert in lieu 
     thereof ``(g)''.
       On page 34, line 20, strike out ``(g)'' and insert in lieu 
     thereof ``(h)''.
       On page 34, line 25, strike out ``(h)'' and insert in lieu 
     thereof ``(i)''.
       On page 36, line 1, strike out ``(i)'' and insert in lieu 
     thereof ``(j)''.
     

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